Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Industrial

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An Oakleigh development site with a land area of 9,279 square metre has been listed through the estate agents, Crabtrees Real Estate.
The 6-14 Wells Road corner property holds an Industrial 1 zoning. Offers close October 23. 
Selling agent Crabtrees director Chris McKenzie says that the cleared property had been unused for some years. 
It formerly was a timber storage yard for prominent merchants O’Shea &amp; Bennett.
McKenzie says he expects the property to attract offers of the order of $400 per square metre. 
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Vacant Oakleigh industrial site for sale

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Growthpoint Properties Australia has entered into an agreement to sell its industrial property at 42-44 Garden Street, Kilsyth, Victoria to the tenant, ARB Corporation. 
The sale price is $19 million, $225,000 above the current book value of $18.75 million. 
The property has a lettable area of 25,887 square metres on the 55,990 square metre site.
The property has a current market capitalisation rate of 8.5% and a remaining lease term of three years. 
Growthpoint negotiated the sale directly with the purchaser avoiding selling agent’s fees.
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Agents avoided as Kilsyth sale secured by Growthpoint Properties

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A 27 hectare site on College Road, Berrimah in the Northern Territory has been released for the development of 50 to 60 industrial lots.
The site’s works are expected to begin in 2015, with sales to follow.
Northern Territory Minister for Lands, Planning and the Environment, Peter Chandler, said that there is a well-known historic lack of residential land in the area, but there is also strong demand for industrial land.
“The Country Liberals are leading a nation-wide push to develop Northern Australia and companies are falling over themselves to invest in the Territory,” Chandler said, pointing to Southern Steel’s opening of operations at East Arm, close to this new site.
“It is important that enough land is released so we can capitalise on this investment potential,” he said.
Their aim is to secure a pipeline of major projects to break the “boom and bust cycle of the economy and support sustained growth”.
They have opened a<a href="https://www.lands.nt.gov.au/land-release/College-Road-Industrial" target="_blank"> public request for proposal process</a>, which closes on 1 December. A briefing will be held on 1 October.
The industrial subdivision site is expected to help boost new and existing businesses and provide further employment options. It is 26.8 hectares in size, zoned GI (general industry) and 10 kilometres from both Darwin and Palmerston.
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Northern Territory land released for industrial development

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Colliers International’s Justin Fried has taken out the title of 2014 Industrial Agent of the Year at DEXUS Property Group’s 21st Excellence in Agency Annual Awards.
The awards recognise the achievements of the real estate community that contributed towards DEXUS’s success over the 2014 financial year.
Fried is the director of industrial<a href="https://ballarat.colliers.com.au/Services/Property_Types/Industrial.aspx" style="line-height: 1.3em;"></a> in Colliers International’s Melbourne East office.
It recognised his work in securing a new long-term lease across 24,000 square metre at Pound Road West in Dandenong South (pictured above), with no downtime from the previous tenant vacating.
He introduced Reece Australia, who entered into a 10-year lease over the whole site in the largest leasing transaction for an existing A-grade building in Melbourne’s south-east market in three years. 
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Colliers' Justin Fried wins Dexus industrial agent of the year award

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GUEST OBSERVATION
Industrial property has experienced a strong return of 12.1% over the year to 30 June 2014. This exceeds the returns from the other two major commercial property sectors being retail and office property which generated returns of 9.8% and 9.0% respectively.
The strength of the industrial property sector has resulted from strong demand for distribution and warehousing services generated by increases in retail spending in the Australian economy. New supply of industrial property has been significant and has restricted rental growth over the year to June 2014. Over the year to June 2014 industrial property generated an income return of 8.4%, while retail and office property generated lower income returns of 7.0% and 7.2% respectively.
Capital has flowed into the sector from investors seeking high yields. Industrial property offering yields of 8.4% is attractive. Strong investor demand has driven a rise in industrial property valuations generating capital growth for the year of 3.4%, which is greater than both retail and office property. A compression of capitalisation rates of industrial property occurred from 8.5% in June 2013 to 8.2% in June 2014.
Performance from industrial property over the longer term has also been positive. In chart one is shown the growth in value of $100 invested over 20 years from June 1994 to June 2014 in the retail, office and industrial property sectors.
Chart one – Growth in investment – Retail, office and industrial property sectors
 <img src="/images/2014/09/10/lev%20sept%2010%20one.png" alt="">
Source: PCA/IPD.
It is shown in chart one that industrial property generated a higher cumulative return than any other major commercial property sector over a 20 year period to 30 June 2014. Industrial, retail and office property generated returns of 11.5% per annum, 10.8% per annum and 9.4% per annum respectively.
The income return for industrial property over the long term has also been greater than that of retail and office property. Industrial property income return was 9.0% per annum over 20 years to 30 June 2014 while retail and office property income return was 7.4% per annum and 7.3% per annum respectively. Rental yields on industrial property are higher than retail or office propert,y reflecting the greater ease in developing new industrial property and the tendency for single tenants in assets.
Capital growth for the industrial property sector was 2.3% per annum over 20 years to 30 June 2014, while capital growth for retail and office property was 3.2% per annum and 2.0% per annum respectively. The income return generated by industrial property over 20 years to 30 June 2014 has more than compensated for the lower capital return from industrial property compared with retail property.
Demand for distribution and warehousing services is expected to grow over the medium term from increased retail spending and growth in internet retail sales. Industrial property is a key component of internet retail sales which require efficient delivery systems through technology in logistics. Rents are expected to remain stable as new supply emerges. Rental yields on industrial property remain attractive being 4.7% higher than Commonwealth Government bond yields. The yield premium may shrink as the Australian economy strengthens and interest rates rise.
Strong investor demand for industrial property is expected, maintaining upward pressure on prices. Capital growth will be positive as a result.  
Market conditions will be favourable for industrial property in the medium term with a combination of demand for warehousing and distribution services underpinning rental income and investor demand for high yields driving growth.
Lev Driker is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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Industrial property delivering stronger returns than retail or office sectors

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Savills have advised clients on what they see as the four advantages of utilising SMSF for direct commercial property investment, in preference to other asset classes.
<ol>
<li>Commercial property is one of the few assets that can be bought by an SMSF from its members. Your SMSF can potentially buy your own business premises and then you can pay rent to your SMSF. A residential property, on the other hand, cannot be lived in by a fund member or any fund members’ related parties, nor can it be rented by a fund member of any fund members’ related parties.  </li>
<li>
The MoneySmart website details the strict rules against using borrowed funds to make improvements to residential property that forms an asset in your SMSF portfolio, so don’t even think about buying a renovators’ delight. This can severely limit potential capital gains as you cannot renovate it to increase its value. In contrast, an investment such as a bulk storage unit or warehouse has very low capital expenditure requirements. 
</li>
<li>Commercial leases are typically for a longer period than residential leases – usually around five years with a further option for another five years with incremental rental increases built into the lease. If you choose the right property and tenants with stable businesses which are unlikely to be adversely affected by an economic downturn you won’t have to deal with a regular turnover of tenants and can rely on a steady rental return.  </li>
<li>Many industrial properties are purely functional in design and construction, so there is less concern about tenants maintaining them or investors having to pay for costly renovations, which is often the case with residential property investments. That said, it’s important to ensure any essential, expensive upgrades, such as those required to meet new fire safety or health and safety standards, have already been carried out before investing in a commercial premise.</li>
</ol>
Visit the <a href="https://www.asic.gov.au/" target="_blank" title="Australian Securities and Investments Commission ASIC">Australian Securities and Investments Commission (ASIC)</a> website to familiarise yourself thoroughly with all the rules and regulations surrounding SMSFs and property investment.
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Four reasons why commercial and industrial property suits SMSFs: Savills

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A corner development site at the junction of Main Road and Fairbank Road, Clayton will go to auction this Friday with $900,000 expectations through Crabtrees Real Estate.
The site known as 91-93 Main Road has a land area of 1,885 square metre with an older style brick workshop building that has been occupied by a motor repairer for many years. 
It has a building of 388 square metre with the remainder of the level site vacant. 
Crabtrees agent Casper Janholt notes that the property holds an Industrial 1 zoning.
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Clayton industrial site with development potential to go under the hammer this Friday

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A Chinese developer has paid $36 million for the former Matilda Bay Brewery in North Fremantle.
The light industrial site in the Perth suburb is a 2.9-hectare holding.
The 130 Stirling Highway site was a Ford factory before it was a brewery. 
It is expected to hold between 350 and 400 ­apartments, as well as retail and commercial property, subject to council approval and design guidelines, Knight Frank’s WA managing director John Corbett suggested.
It previously sold at $2 million in 1988. 
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Chinese developer pays $36 million for former Matilda Bay Brewery site

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Industrial property’s total vacancies continues to increase, according to Knight Frank Research, with 2.17 million square metres on the eastern seaboard available.
For perspective, this is 29% higher than Knight Frank recorded 12 months ago in their Industrial Vacancy Analysis.
Much of this vacancy rise has been a result of Melbourne’s market – which has increased by 29%.
Knight Frank national director of Research &amp; Consulting Matt Whitby said that rises have also been seen in Brisbane, and in Sydney, which has stopped an improvement previously being recorded.
“As at July 2014, the Melbourne industrial market continues to account for the highest proportion of east coast industrial vacancies with a 37% share of available space followed by Sydney which accounts for 36% of vacant space and Brisbane accounting for a share of 27%,” said Whitby.
“Although the level of prime grade industrial space across the Australian East Coast market remains marginally lower than secondary accommodation, the gap continues to narrow.”
Whitby also said that firm enquiry is still being seen for sub-2,000 square metre leasing options, and tenants are continuing to upgrade to prime industrial stock.
“This reaffirms the trend, in evidence since late 2013, where companies are increasingly making decisions for the longer term off the back of greater confidence levels, rather than taking short term space within secondary buildings as a hold over measure,” he said.
“With some further speculative supply in addition to several pending vacancies forecast to be added to the vacancy count in the October quarter, the market will be looking to an improvement in leasing absorption to prevent a further increase in the level of available space”.
Total vacancies of prime stock, as of July 2014, is at the highest level since the series began, and accounts for 49% of east coast vacancies, the report explains. This is 34% higher than just two years ago.
However, managing director of industrial Greg Russell said that it’s actually a promising outlook across the east, as tenant requirements begin to pick up.
“Not only is prime available industrial space well above the long term average, but speculative development (both completed and under construction) increased sharply over the past quarter, rising by 56% to total 277,452sqm and now accounts for 13% of all East Coast industrial available space,” said Russell.
Despite this, the pipeline of “speculative development” under construction has almost doubled over the past quarter and is at the highest level since the beginning of the series.
“More options continue to emerge for larger space users in Sydney, with 18 prime opportunities above 10,000sqm (compared to 14 last quarter), while 15 over 10,000sqm exist in Melbourne (down from 16 options), and there are nine prime vacancies above 8,000sqm in Brisbane (compared to eight last quarter),” he said.
In Sydney, CBRE research has suggested that a significant number of new developments will prove a positive for the industrial property market, with their 2014 Industrial MarketView Q2 report suggesting it will be a strong base.
They noted that by the close of 2014, 600,000 square metres of new supply over 5,000 square metres will be added to the market.
CBRE research manager Mark Lafferty has said that the scheduling of the projects would be a positive, but that there is uncertainty around the funding of some projects.
“As a result, the surrounding industrial markets are positioned to benefit from a lift in investor sentiment levels, as well as stronger demand for industrial space,” he said.
“The greatest additions of new supply are in Sydney’s outer west, where 58% of the 2014 supply pipeline is being delivered,” Lafferty said.
“Future supply is being built to best service the growing transport and logistics sector, with a focus on super prime logistics facilities that have sound accessibility to existing and planned transport infrastructure.”
Major projects include the $11.5 billion WestConnex project and the $3 billion FS-M2 tunnel link.
Sydney’s industrial sales activity also saw an uplift, with $395 million selling over the three month period – up 73% from the same quarter in 2013.
See over page for a state-by-state breakdown.
Turn to page three for information about industrial sector yields.
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KNIGHT FRANK’S BRISBANE, MELBOURNBE, SYDNEY AND PERTH ROUND UP
Brisbane
<ul>
<li>Available space up to new highs over past quarter 
</li>
<li>Above-average take-up of space</li>
</ul>
Knight Frank managing director of industrial Greg Russell:
The take-up indicated that there is been a welcome return to the market of smaller to medium size tenants with ten of the 17 vacancies absorbed over the quarter under 5,000sqm, which is the lifeblood of much of the Brisbane market. At the same time, there is also strong demand at the larger end of the scale, which was dominated by retailing or logistics occupiers who are currently focused on newly built accommodation.
There has been good absorption of both speculatively developed and D&amp;C offerings in recent months, and while this is a positive in terms of demand, the backfill space left by these larger tenants has been a factor in the vacancy increases.
Take-up was strongest in the South and South West markets, as the South saw significant take-up of secondary space and the South West saw solid absorption of prime assets, boosted by speculative construction in the region. Good take-up of speculatively developed space is expected to trigger more commencements in the South West, South and TradeCoast markets.
Sydney
<ul>
<li>Vacant property levels up 12.6% over the past quarter 
</li>
<li>Now at 770,014 square metres total vacant space 
</li>
<li>Increase in available speculative stock</li>
</ul>
Knight Frank managing director of Western Sydney Derek Erwin:
Gross take-up for the quarter to July measured 98,276sqm, which is 17% below the average level since the series began in 2011. Additionally, the absorption figure continues to be boosted by some vacant possession sales to owner occupiers. Absorption of prime stock has outpaced secondary by a factor of two to one over the past 12 months (excluding D&amp;C’s).
Fifty-three per cent of take-up (excluding D&amp;C’s) over the past 12 months has occurred in the Outer West, while additional deal activity in the region has also been achieved in the pre-lease market given land availability. It is noted, however, that land supply is expected to start seeing some of the pre-lease demand move into the North West and South West regions in the short to medium term.
Melbourne
<ul>
<li>Three months to July 2014 saw available industrial space increase by 10% 
</li>
<li>Total of vacant space now at 807,269 square metres 
</li>
<li>This is the highest level in almost five years 
</li>
<li>It’s 38% above the historical average 
</li>
<li>Take up has been stable for the past three quarters 
</li>
<li>Increase in available speculative stock</li>
</ul>
Knight Frank’s state industrial director Gab Pascuzzi:
The second quarter total take-up of 82,107sqm across eight buildings greater than 5,000sqm, remains 41% below the historic average of 138,961sqm. Notably, gross absorption recorded over the quarter was entirely within backfill space.
Speculative space under construction grew by 20,299sqm to reach 61,771sqm, 27% above its long term average. Four out of the seven projects currently under construction are located in the South East, while in contrast there are no speculative developments under construction in the West.
Perth
<ul>
<li>Over the quarter, available industrial space increased by 8% 
</li>
<li>Available space now totals 303,562 square metres 
</li>
<li>An influx of sub-lease space has entered the market, up 42% on last quarter 
</li>
<li>Sub-lease space available totals 69,776 square metres – 23% of the total</li>
</ul>
Knight Frank state industrial director Jarrad Grierson:
A growing number of vacancies has offset relatively strong leasing take-up over the three months to July 2014, as an increasing number of smaller secondary assets become available in the Perth Industrial market.
See over page for information about the leasing environment for the industrial sector.
<hr class="system-pagebreak">
New information from JLL has looked into the currently available yields for investors looking towards industrial property, noting that the stable fundamentals are attractive to many.
According to their quarterly research statistics, transaction volumes are indeed up 35% in the first half of 2014 compared to the same period in 2013, with almost $1.6 billion in industrial sales year-to-date 2014.
Melbourne and Sydney have led the sales activity in the second quarter of 2014. Construction wal also noted to be accelerating, with new supply to get to a record high since 2008 levels, and average rents to remain steady.
JLL head of industrial Michael Fenton said that investment activity is at present very solid, with capital allocation to the industrial sector exceeding available product by five times.
The average sale price in 2014 totals $18.4 million, with a $21 million record per sale set last year.
 “Our expectation is that vendors will increasingly be encouraged by price signals and the depth of capital evident in the market to selectively bring assets to the market to crystalize gains made over recent years or to exit underperforming assets,” said Fenton.
“Buyers remain led by the major and smaller domestic A-REITs and their managed funds, mid-tier boutique funds, syndicators and some high-net worth private investors.”
In the second half of 2014, the expectation is that larger offerings will see offshore interest, and Fenton predicts one or two new entrants without current exposure to Australian property.
Upcoming expectations include the first time that more supply has been completed in Brisbane than Sydney, and the first time since 2006 that Melbourne has overtaken Sydney.
Softer leasing is being experienced in Melbourne and Brisbane for both rental growth and market incentives.
Minimal evidence of rental growth over the past few quarters was recorded, with flat average face rents.
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Industrial property vacancies continue to rise, but overall outlook promising: Knight Frank

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After a fire at their Altona premises in early-2014, Dome Garden Supplies, an international hydroponic and horticultural specialist firm, have taken a short-term lease in an industrial Laverton North property.
The temporary relocation will see them move their Melbourne operations to 32-34 Pipe Road for a 12 month period, as the Altona facility undergoes a rebuild.
The deal, negotiated by CBRE’s Todd Grima and Harry Kalaitzis on behalf of lessor AC &amp; K Dibb, comes with an additional one-year option on the 3,000 square metre facility.
It includes a high clearance warehouse with dual container height RSDs.
It has access to Princess Freeway and Western Ring Road.
Their previous premises were at 12 Pinnacle Road, Altona North, that saw a factory fire in February.
Opposite, at 11-21 Pinnacle Road is a container yard leased to ANL from November 2012 for a five year term. The 4.1 hectare site, with a 2,000 square metre warehouse, is leased at $550,000 per annum net - or $13.40 per square metre of improved site area, according to Urbis.
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