A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

Office Market

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Sydney's CBD office market saw positive growth during 2015 with the third quarter showing a positive net absorption of 25,600 sqm, the seventh consecutive quarter  of positive net absorption in the CBD office market, according to Herron Todd White.
Herron Todd White's December December Month in Review said the strong tenant activity across the Sydney CBD has seen vacancy further tighten, with the Sydney CBD being the only national CBD office market with a total vacancy below 10%.
"Prime and secondary gross effective rents increased over the year, with a recorded increase of 2.7% at the end of the third quarter," it noted.
"From a supply perspective, a key development underway in Sydney is Barangaroo. The first practical completion, Barangaroo South, was recorded in quarter three. The International Towers Sydney (T2) is being completed in stages, with the low and mid- rise components completed, offering 59,385 square  metres of lettable area.
"Nine other commercial office projects are currently under construction across the Sydney CBD, including 200 George Street and 333 George Street. While a number of these projects comprise tenant pre-commitments, it is expected that the shifting tenant profile down to Barangaroo will result in increased available office space in the vacated buildings."
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mick.cee-iDmgDDAmu8

Third quarter positive growth in Sydney's CBD office market: HTW

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A mixed-use development property in west Melbourne has sold to a local investor at auction for $6.8 million.
The <a href="https://www.realcommercial.com.au/property-land+development-vic-west+melbourne-501776166" target="_blank">55 Walsh Street</a> property comprises a three-level office building with multiple tenancies currently returns $208,000 per annum gross. 
There are some vacancies as well, hence the potential to increase income.
The sale through Anthony Carbone of CVA Property Consultants represents a rate of $3,269.23 per metre square.
The building is in a mixed-use zone allotment of 695 square metres, allowing for development including but not limited to office and residential (STPA). 
It is close to Queen Victoria Market and Flagstaff railway station.
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j.ballantyne1990-6AQqhLzZaK

West Melbourne office building fetches $6.8 million at auction

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A premium freehold building in South Melbourne has been snapped up by a multinational IT firm for $2.74 million. 
The <a href="https://www.realcommercial.com.au/property-offices-vic-south+melbourne-501743510" target="_blank">93-95 Palmerston Crescent</a> property comprises a 530 square metre three-level freestanding building with rear access. The property is located on a 248 metre site.
The sale was brokered by CBRE with vacant possession.
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IT firm secures $2.74 million slice of South Melbourne 

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Technical services provider Jacobs has finalised the biggest leasing transaction in North Sydney this year after committing to occupy 6,872 square metre of space in 177 Pacific Highway.
The $413-million building is being developed by CIMIC Group through Leighton Properties on behalf of Suntec Real Estate Investment Trust (Suntec REIT).
The 40,000 square metre project is the largest commercial development in the North Shore.
Under the lease agreement, Jacobs will relocate its headquarters to 177 Pacific Highway from its nearby premises in St Leonards.
Nearly 600 Jacobs’ staff will be involved in the move to <a href="https://177pacific.com.au" target="_blank">177 Pacific Highway</a>.
The building will incorporate state-of-the-art design elements, large floor plates, harbour views, full end-of-trip facilities and green credentials.
 “Jacobs’ commitment demonstrates increased activity from tenants wanting to relocate to North Sydney, with this being one of the largest commitments in the area in many years," said Peter Flint, CBRE head of office services for NSW. 
The Jacobs agreement follows a series of recent deals in the project’s food precinct, with Naked Duck Restaurant and Café, and Sushi Jones to occupy the retail space in the Garden Plaza, which is designed as the centrepiece of the 177 Pacific Highway development.
The ground floor will feature the indoor, all-weather Garden Plaza protected by a 15-metre high glass façade and provide a place for tenants, surrounding workers and other members of the surrounding community to relax and enjoy a variety of culinary experiences.
The 30-level office tower designed by Bates Smart will be complete in 2016.
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Jacobs to move into office tower in North Sydney's largest lease deal for 2015

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The current business and consumer confidence will continue to have a positive effect on Australian property into 2016, according to a report by Colliers International. 
“We have experienced a sustained increase in business confidence over the past twleve months,” said John Kenny, CEO Australia and New Zealand at Colliers International.  
“This confidence is having a positive impact across the property sector, and this optimism is starting to flow through to several of our occupier markets, as businesses become more confident in leasing office space.”
The Sydney CBD office market has improved since early 2015, with a significant decline in vacancy over the year, said the report titled Property Outlook. 
This run is expected to spread to other markets with Melbourne CBD office, Sydney industrial and national neighbourhood and large format centres likely to experience strong demand in the year ahead, it said. 
Despite this return of occupiers across the country, there will still be pockets where this does not lead to rental growth.  
In some markets, oversupply is offsetting the growth in tenant demand. 
Similarly, those locations impacted by parts of the economy experiencing a slowdown, such as those markets dependent on, which have remained elevated for some time, are another contributing factor in the overall strong performance of the property sector. 
“The strong residential housing market, increasing consumer confidence and the lower Australian dollar are all factors that have contributed to the current state of our economy,” said Nerida Conisbee, national director of research at Colliers International.  
“Right now, Australian interest rates remain stable at their historic low of 2%. Nevertheless, the Reserve Bank continues to suggest that it is not averse to cutting rates and is waiting on key economic releases post Christmas. 
"For now, although GDP growth remains below average, business surveys suggest that the services sector will continue to improve which will support the Victorian and New South Wales economies in particular.  
“All of these factors continue to make Australia a very attractive destination for offshore capital, and this flood of both local and offshore activity will continue to hold the property sector in good stead for 2016.”
Investment in Australia's commercial property is expected to reach $35 billion in 2015, of which domestic buyers account for around half. 
Australian investors are increasingly moving offshore, spending about $5 billion overseas in 2015. This is more than double the 2014 level but well below the nearly $28 billion in 2007 when Australian investors were the third highest offshore investors in the world. 
“Very few Australian groups are entering international markets at this stage, with around 90% of this year’s offshore acquisition activity made by two groups – Australian Super and Lend Lease,” said Conisbee.  
According to the report, this growth in Australian groups investing offshore will continue next year, but the types of investors in the market will be different from the previous cycle. 
In 2007, the most dominant purchasers were Australian institutions. In the current cycle, these institutions are increasingly being funded by offshore groups looking to partner with them because of their expertise in Australian property.  
The dominant groups going offshore will continue to be Australian superannuation funds as they seek to diversify their investment into direct property. Finding the scale necessary in Australia is increasingly difficult and offshore markets provide a significant pool in which to invest in. 
At a regional level, the focus remains on China and the impact it has on property, from the large capital flows into property across the region to the Chinese banks that are making their mark on occupier markets and the flow of tourists dominating tourist spending and hotel usage. 
India is also considered to be a major player next year though not so much from the outflow of capital, but rather the gradual opening of that country to investment and the opportunities for regional investors.
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Business confidence to help Australian property sector in 2016: Colliers report

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Telecommunications and ICT services company Visionstream has secured 7,600 square metre office space at the $500 million masterplanned Parkview Estate in Melbourne's Moorabbin.
Visionstream has committed to an entire office building within the 51 hectare estate, which is 20 km from Melbourne's CBD.
Colliers International national director Rob Joyes, who brokered the deal, said it was the largest office-leasing transaction in Melbourne's south-east in 2015.
"Vision Stream is joining big brands like Bunnings, Bolle, Westpac and Danks Home Timber and Hardware who are operating out of Parkview Estate, a suburban business park," he said.
Developer Pellicano's managing director Renato Pellicano said the office building, which was purpose built in 1998 as the South East Water headquarters, was vacant for less than a month, reinforcing the strong demand for suburban office spaces.
"Visionstream virtually moved into the office as soon as South East Water vacated, on the back of some minor refurbishments," he said.
"Parkview Estate currently has 19,000 square metres of commercial offices spread across five buildings with a vacancy rate of less than 2%. A sixth office building is currently under construction which will take the total commercial space to over 22,000 square metres.
Parkview Estate houses over 65 business and 3,000 workers and includes Quest serviced apartments, 75 residential apartments, the 25,000 square metre Moorabbin SuperCenter, the Otto Lane café, gymnasium, swim school, childcare centre and retail banking.
Family-owned Pellicano's 2015 development workbook is at $275 million, with commercial, industrial and residential projects currently underway between Melbourne and Brisbane.
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Pellicano secures south east Melbourne's largest commercial deal for 2015

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Cromwell Property Group has agreed terms for the sale of an office tower at 100 Waymouth Street in Adelaide for $73 million.
The sale price represents a premium of 17.6% over the book value of $62.1 million, a yield of 6.775% and a capital value of approximately $6,000 per square metre, reflecting continued strong investor demand for commercial office stock in major capital cities.
Cromwell CEO Paul Weightman said the company would continue to look to take advantage of market conditions to improve its $2.1 billion portfolio of direct property assets.
The property has <a href="https://www.cromwell.com.au/property-portfolio/south-australia/289/100-waymouth-street" target="_blank">12,305 square metres of net lettable area</a>, is fully tenanted and has a Weighted Average Lease Expiry (WALE) of 8.1 years.
It comprises a ground floor and 12 upper levels of office accommodation.
The building was commissioned in 1989 as the headquarters for the South Australian Workcover Corporation, which occupied it until June 2012.
The tower has since undergone a full refurbishment, achieving a PCA A-Grade rating. Cromwell acquired it in April 2003.
Origin Energy solely occupies the commercial floors with Beyond Bank occupying the ground floor retail space.
The property is close to public transport, retail, restaurants and cafes.
The sale is expected to settle on December 10.
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Adelaide commercial tower sells for $73 million

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Eight properties in Canberra belonging to betting company Tabcorp have sold at auction for a total value of $6,171,500.
The selling agents were JLL’s Michael Heather and Greg Lyons and the auction was on November 26.
Three properties were offered with a new initial seven-year lease term to Tabcorp with 2 x 5 year options. The
remaining five properties were sold as vacant possession.
The three leased properties were sold for a price range of $800,000 to $1,120,000 and reflected initial yields of between 4.71% - 5.29%.
The five vacant properties were sold for a price range of $590,000 to $741,500 and reflected sales values from $5,224 - $7,234 per square metre.
“The strong yields achieved for the leased properties exceeded market expectations and is reflective of the yield compression trend that has been experienced in other markets around Australia,” Heather said.
The eight properties were:
20 Brierly Street, Weston sold for $1,120,000. The initial yield reflects 4.78% on a passing net income of $53,491 per annum.
30 Denigan Street, Wanniassa sold for $950,000. The initial yield reflects 5.29% on a passing net income of $50,252 per annum.
99-103 Georgina Crescent, Kaleen sold for $800,000. The initial yield reflects 4.71% on a passing net income of $37,677 per annum.
56 Hawker Place, Hawker sold for $670,000, reflecting a capital value of $5,781 per square metre.
1-3 Primmer Court, Kambah sold for $741,500, a capital value of $7,234 per square metre.
23 Charnwood Place, Charnwood sold for $600,000, or a sales value of $5,545 per square metre.
55 Curtin Place, Curtin sold for $700,000, or a sales value of $5,224 per square metre.
71 Mawson Place, Mawson sold for $590,000, with a capital value of $6,556 per square metre.
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Eight Canberra Tabcorp properties sell at JLL auction for $6,171,500 total 

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Office property re-emerges as the strongest commercial property sector, according to NAB's quarterly Australian commercial property survey.
The findings show that overall sentiment in Australian commercial property markets has moderated a little, but it remains at elevated levels and continues to vary widely across sectors and states. 
"Sentiment eased in most sectors (particularly CBD hotels), but this was largely offset by a big improvement in office. It is also still deeply negative in WA and SA/NT, while NSW and Victoria remain the most upbeat states."
The quarterly survey also notes that on the development front, more property developers are looking to commence new projects in the short-term (led by residential projects), despite increasingly difficult funding conditions. 
"The NAB Commercial Property Index fell to +10 points in Q3, down slightly from a Survey high +11 in Q2.
“The index was dragged down by weaker sentiment in most sectors, particularly CBD hotels. Office was the exception, and it has re-emerged as the strongest sector overall after lagging all other sectors since mid-2013", said NAB Group Chief Economist Alan Oster.
NAB added that sentiment also continues to vary widely across states.
"It is still deeply negative in WA and SA/NT, neutral in Queensland and positive in NSW and Victoria.
"NSW continues to be the most optimistic state for commercial property looking forward, and WA by far the most pessimistic (particularly in regards to office and retail property)", claims the report.
The commercial property survey suggest that by sector, property professionals operating in office (especially in NSW and Victoria) and industrial markets (led by Queensland and NSW) are the most confident when looking to the year ahead, with CBD hotels lagging. 
Looking further ahead, confidence levels are broadly similar across all market segments in 2 years time, with CBD hotels the big improver.
The survey suggests capital growth the next 1-2 years will be strongest for office property (1.5% &amp; 1.4%), followed by industrial (1.1% &amp; 1.3%) and retail (0.9% &amp; 1.2%). Expectations for capital growth in CBD hotels have however been scaled back (-0.6% &amp; 0.3%). 
Positive rental returns are also forecast in all sectors in next 1-2 years, led by big upward revision in expectations for office rents (especially in Victoria).
“This is the first time the outlook for rents has been positive across all sectors since late-2010” he said.
The survey also points to an improvement in developer confidence this quarter, with the number of developers planning to commence new works in the next 6 months rising to 60%, up from 48% in Q2. 
“Hopefully, this will translate into stronger building construction, particularly as property developers have also noted a further deterioration in their debt and equity funding situations”, he said.
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NAB survey suggests office property as the strongest sector

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The valuation firm Herron Todd White has issued its latest property clock for the office market - a simple broad brush means to suggest where property markets are - and what direction prices are moving in.
The valuation firm has included capital and regional cities on the property clock for house price direction.
<a href="/images/2015/11/9/700_htw.jpg" target="_blank">Click here</a> to enlarge.
For more information, <a href="https://www.htw.com.au/" target="_blank">click here</a>.
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