For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Office Market

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Sales transactions in the Wollongong office sector have slowed over the past 12 months mirroring the trend of the broader commercial real estate market across regional New South Wales, according to the latest report from valuation firm Herron Todd White.
The firm's report found, the slowdown is coming at the end of a very buoyant three years where record sales prices were achieved resulting in yield compression across the board.
This is exemplified by the sale of 90 Crown Street, Wollongong in late 2018 for $50.38 million showing an initial passing yield of 7.75% on a WALE of 3.5 years.
Report authors stated, "the slowdown in investment sales over the past year is attributed to several factors including the Banking Royal Commission, state and federal elections, volatility in the global markets, downturn in the housing market and just the normal market cycle."
"There is optimism that recent interest rate cuts will spur activity with most participants keenly watching to see if this will result in further yield compression in the sector or if there will be a more permanent reassessment of risk despite lower borrowing costs."
"During this period of low and reducing interest rates, owner-occupiers have remained relatively active in the sub-$1.5 million price category, however the limited availability of such properties particularly in the Wollongong CBD has seen owneroccupiers look further afield to the region’s other major centres including Corrimal, Fairy Meadow, Dapto and Shellharbour."
"Gross face rents in the Wollongong CBD generally sit in the order of $400 to $450 per square metre for A-grade and $350 to $395 per square metre for better quality B-grade stock in the CBD," the authors concluded.
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j.ballantyne1990-6AQqhLzZaK

Wollongong office market slows after three buoyant years: HTW Commercial

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For a number of years, the performance of the Brisbane office market has been underwhelming, to say the least, and has lagged behind the broader Brisbane commercial markets, according to property valuation firm Herron Todd White.
The valuation firm found, stubbornly high vacancy rates due to constant supply additions and patchy conditions across key industries resulting in an ongoing competitive leasing market and limited rental growth have been key factors as to why the office market has been sluggish virtually since the GFC.
Brisbane is however currently undergoing a major transformation with a number of significant infrastructure projects that have either recently been completed or are currently under construction.
These projects, coupled with the low interest rate environment, are having a positive impact on the CBD and fringe CBD leasing markets and are seeing increasing appetite from investors, both on a private and an institutional level.
Recent vacancy statistics released by the Property Council of Australia (PCA) have indicated that the overall Brisbane CBD vacancy rate compressed further in July 2019 to 11.9%, which is its lowest rate since January 2013. Furthermore, the overall Brisbane fringe CBD market also reduced to 13.8%, its lowest since January 2017.
Vacancies for prime grade CBD accommodation are now below 9% and more tellingly, there is no sub-lease space now available in these properties.
A-grade vacancies in fringe areas have also dropped markedly from 16.7% to 12.7% over the past six months.
The report stated, "given the improving leasing markets, it is likely we will see gross face rents stabilise for prime and A-grade office accommodation in the CBD and fringe CBD."
It also noted, stronger performing precincts such as King Street and Ann Street (Fortitude Valley), Gas Works precinct (Newstead), South Brisbane and the Golden Triangle (Brisbane CBD) are likely to see rental growth over the remainder of the year for modern quality developments.
The HTW valuers said, "we may also (finally!) see incentives start to fall. The positive vibe coming out of Brisbane is now starting to translate into a number of strong investment transactions and the opportunity and appetite for re-positioning underperforming commercial office assets is on the rise."
"The market generally has been active over the past 12 months and selling agents are reporting that demand is also increasing for underperforming, older style office assets that can be re-positioned and re-let."
"The near-term outlook for the Brisbane office market appears positive and it is possible that further yield compression may occur should interest rates decline further."
"Furthermore, the yield spread between Brisbane and its southern counterparts (Sydney and Melbourne) is still significant and the coming infrastructure projects are likely to increase Brisbane’s attraction as an investment destination," they concluded.
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Brisbane office market sees growing investor appetite: HTW Commercial

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The Coffs Harbour office market has remained relatively stable during 2019, according to the latest report from property valuation firm Herron Todd White.
The report found, the market for leasing appears to have remained stable with supply and demand issues broadly balanced which has resulted in rents remaining stable.
Good quality office space is leased at $350 to $400 per square metre per annum.
Specialist medical tends to command a premium above this with examples of $400 to $500 per square metre occurring.
Secondary office accommodation tends to be more difficult to lease with rentals in the vicinity of $200 to $300 per square metre depending on size, quality and location.
The report authors stated, "the direction of yields tends to be stable with ultimately the strength of the tenant and lease term driving the yield."
"The traditional variation between retail and office markets (one per cent to 1.5 per cent in favour of retail) is no longer as evident as it once was."
"The retail sector is currently experiencing higher vacancy and the longer lease-up periods are impacting value and saleability."
"The office market appears the more stable at this time and into the future the yield trend between office and retail maybe reversed," they concluded.
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Coffs Harbour office market stable while NSW slows: HTW Commercial 

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The Sydney CBD office market has seen several big transactions so far in 2019 in both strata and freehold spaces plus it still has room to grow, according to the latest report from property valuation firm Herron Todd White.
The most significant transaction, at $800 million, was Dexus and its unlisted Dexus Wholesale Property Fund’s purchase of GPT Group’s halfshare in the MLC Centre at 19-29 Martin Place.
Dexus already owned fifty per cent of the property prior to this transaction and now with full control of the property, the transaction cements them as the largest office landlord in Australia.
At 67 storeys, the MLC Centre was for many years the tallest office building in the country and the site remains one of the largest freehold sites within the Sydney CBD.
The valuation firm found, On a much smaller scale, the strata office market has seen a number of strong results, continuing to push square metre rates to unprecedented levels.
One such example is Noonan Property’s sale of Level 10 (398 square metres) of Heritage listed Culwalla Chambers, at 67-69 Castlereagh Street, achieved $6.395 million at auction, reflecting $16,068 per square metre of lettable area.
The report stated, "a result such as this shows the continued strength of the office strata market, however the number of transactions does appear to have slowed."
"On the leasing side, while there have been a number of large leases across the CBD, it is particularly worth noting the continued and growing presence of WeWork, who have recently signed a 12-year lease agreement over 11,000 square metres of office space across ten floors at 320 Pitt Street."
"It’s unclear what the impact of co-working space will have on the wider market, however it does present new options for tenants looking for more flexible options," the report noted
Vacancy rates remain very low across the CBD, reported at 3.7% as at July 2019 (PCA), down from 4.1% in January.
Low vacancy is driven by low supply which in turn causes above average rental growth.
The valuers said, "supply was particularly hampered during the first half of 2019 by withdrawals outweighing supply, reflecting -23,400 square metres of net supply (PCA)."
"A total of 32,039 square metres of office accommodation across eight sites was taken offline in the first half of 2019. Five of these sites are situated in the city core precinct."
"New approvals for office accommodation are low across the CBD, with approvals being generally focused on residential and hotel redevelopment rather than traditional office space."
"As an example, there are currently more than 20 hotels either under construction or approved for redevelopment."
"That said, there is new office supply on the horizon, however the majority of this will not come online until 2020 or 2021.
"For the time being, CBD rents are anticipated to remain strong, although will likely moderate, until supply catches up to demand and values are likely to remain strong for good quality stock," the valuers concluded.
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Sydney office market still hasn't peaked: HTW Commercial

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The Melbourne CBD continued to record the lowest vacancy rate amongst all of Australia’s CBDs at 3.3%, in front of Sydney CBD at 3.7%, according to the latest report from valuation firm Herron Todd White.
The report found, tenant demand is continuing to rise in the city fringe.
Tenants, especially from the creative, technology and business service sectors, actively compete for well-located high-quality office accommodation.
Vacancy rates in the city fringe, inner east and outer east are well below long term average vacancy levels.
The vacancy rate in the inner east fell to 3.58%, making it the lowest vacancy rate of all of Melbourne’s metro precincts.
The report authors stated, "the CBD’s increasing rent level is creating greater demand in city fringe locations as tenants seek cheaper alternatives."
"Incentives are currently broadly ranging from circa 10% to 25% net depending on the tenancy size, lease term and location. In the south-eastern and outer-eastern markets where vacancy rates are high, incentives are at their highest whilst in the city fringe and inner eastern markets, incentives are at their lowest."
"There has been strong capital growth for commercial development sites in Cremorne and Richmond over the past two years, particularly within the past 18 months. Larger development sites above 1,000 square metres are in high demand in the current market as they allow greater development scale as opposed to smaller sites."
"Record high land rates have resulted in Cremorne and Richmond this year with a number of development sites selling for land rates in excess of $13,000 per square metre. However, we highlight that the development market in these areas is considered to be at the peak," the authors noted.
Buyer demand is still solid for CBD, city fringe and suburban well-located sub-$50 million investment commercial assets. Properties in this price range are keenly sought by higher net worth private investors, syndicates and overseas investors.
Investment yields within the inner city are being influenced by the underlying land values of the properties. Land rich assets usually reflect lower yields compared to investment assets which have been fully developed.
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Melbourne office market still has Australia's lowest vacancy rates: HTW Commercial

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Six markets including Melbourne, Coffs Harbour and Dubbo have all reached the peak of the market, according to valuation firm Herron Todd White latest report.
In their September National Property Clock for the office market, Herron Todd White also found office markets in Illawarra, Ballina/Byron Bay and South East NSW had began to peak.
The Sunshine Coast is the only office market that has been at the peak for over a month.
Newcastle joined Geelong and Sydney in the approaching the peak of the market.
Three capital cities remained in a bottom of the market position, Darwin, Perth and Hobart.
They are joined by Cairns, Launceston, Mackay, Rockhampton and Townsville.
"The commercial sector has traditionally offered investors a way to boost yield in their portfolios, but as you’ll see in our report, there are some surprises," the HTW report noted.
"Quite a few of our major centres are seeing strong buyer demand for office space and this has translated into tight yields."
"Other localities are experiencing a struggle, which can spell opportunity for investors keen to purchase at the bottom of the cycle," they concluded.
Click <a href="https://www.propertyobserver.com.au/images/2019/9/16/HTW%20Office%20Clock%20Septemer%202019.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/9/16/HTW%20Office%20Clock%20Septemer%202019.JPG" alt="">
Ballarat held steady as a rising market while Brisbane, Ipswich, Canberra/Q'berra and the Central coast have started their office market recovery.
They have joined Adelaide, Emerald, Toowoomba and Mildura in the start of a market recovery.
The Gold Coast, Mid North Coast and Lismore are still starting to decline.
Echuca and Alice Springs have remained unmoved in the declining market position, while South West WA remains near the bottom of the market.
The Gladstone office market joined them at the approaching bottom of market position on the clock.
 
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Melbourne among six office property markets to peak: HTW September Office Clock

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The Canberra office that was purpose built by the Australian Property Institute some three decades ago has been listed for sale for the first time.
The property at <a href="http://commercialpropertysearch.savills.com.au/7d234ce9-c481-e911-80db-005056813885/Sale/Deakin/6-Campion-Street" target="_blank">6 Campion Street in Deakin</a>, an inner suburb of Canberra, has been held by the Australian Property Institute (API), since its construction over three decades ago.
The API are located on the second level which comprises a number of internal offices, breakout areas, a kitchen, reception space and a boardroom.
The ground floor has a double height entrance lobby with full glass facade.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/19/Deakin2.jpg" alt="">
The Commonwealth Government previously had a whole floor tenancy in the space which has its own north-facing garden and landscaped courtyard.
Savills agents Nic Purdue and Andrew Stewart have the listing.
It has 525 sqm of net lettable area.
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jrobinson-rf4aSBido9

Australian Property Institute Canberra HQ listed through Savills

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The Sunshine Coast has reached the peak of market position on the HTW commercial office property clock for June, according to valuation firm Herron Todd White latest report.
HTW also stated that both Melbourne and South East NSW both remained in the peak position.
Meanwhile the Mid North Coast dropped a notch to the starting to decline market position, joining Gold Coast, Lismore and Coffs Harbour.
Echuca and Alice Springs have remained unmoved in the declining market position. While South West WA remains near the bottom of the market.
Three capital cities remained in a bottom of the market position, Darwin, Perth and Hobart.
They are joined by Cairns, Gladstone, Launceston, Mackay Rockhampton and Townsville.
Click <a href="https://www.propertyobserver.com.au/images/2019/6/7/June%20Office%20Clock%20HTW.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/6/7/June%20Office%20Clock%20HTW.JPG" alt="" width="923" height="815">
Emerald and Toowoomba have joined Adelaide and Mildura in the start of recovery position.
Ballarat held steady as a rising market while Sydney, Brisbane and Geelong are a notch above in the approaching peak of market position.
The HTW report authors said, "Commercial real estate had mixed results across the country in the past six months, but among the options for buying in this sector, office holdings are considered one of the safer choices."
"That said, not all office markets are the same."
"This month’s submissions paint a picture of varying performance so far this year," they concluded
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Sunshine Coast's office market reaches peak of market: HTW June Office Clock

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With Sydney CBD office vacancy tightening to 4.1% as of January, CBD office rentals have continued to drastically increase over the past two years and remain at record highs, according to the latest Commercial Property Market Report from Herron Todd White.
The property valuation firm found, owner-occupiers remained the dominant market participants when it comes to strata office stock, as they attempt to reduce their occupancy costs and invest in what is anticipated to remain a strong market into the foreseeable future.
The combination of owner-occupiers looking to secure office assets combined with the lack of available stock on the market has seen capital values for B and C grade strata office stock continue to increase, with building records continuing to be commonplace.
HTW analysts noted Noonan Property’s April 2019 sale of the 95 square metre Suite 202 at 234 George Street for $1.585 million (reflecting $16,684 per square metre of lettable area) to an owner-occupier who had apparently missed out on a number of other suites in previous weeks highlights the strength of the market force of owner-occupiers."
"Prior to this sale, the last suite to sell in this building and a superior overall asset was the 110 square metre Suite 802, which sold in March 2018 for $1.66 million, reflecting $15,091 per square metre."
"We anticipate owneroccupiers will remain the driving force of values for strata stock throughout the CBD for the foreseeable future, with rents anticipated to remain strong and supply remaining at a minimum in the short term," they said.
With completion of the Wynyard upgrade and Light Rail project along George Street progressing, construction noise beginning to reduce and hoardings starting to be removed, the future of Wynyard and George Street is beginning to take shape.
They consider the face lift to both Wynyard and the overall streetscape of George Street (along with the obvious transformation in accessibility through the CBD) will only further increase the appeal of offices in these precincts.
The southern precinct of the CBD is also anticipated to benefit from increased accessibility following the opening of the Light Rail, seeing the precinct become fully integrated into the prime CBD areas. With vacancy at 6.9% as at January 2019 (source: Property Council Australia) and rents significantly lower than those of the city core, the southern precinct shows the most potential for growth over the short term.
The valuers noted, "outside of the CBD, Parramatta remains the best performing secondary CBD in the country, with vacancy at 3% as at January 2019 (source: Property Council Australia), primarily driven by low supply additions and the draw of more affordable rentals than the CBD."
"While 148,000 square metres is currently under construction across four sites and is all due to come online over the next two years, pre-commitment for this space is at 90%, so vacancy is unlikely to soften significantly."
"The opening of the Metro North West Line on 26 May provides a significant increase in accessibility to the secondary office precincts of Norwest and Macquarie Park, as well as an additional line of access to Chatswood, increasing the overall appeal of these secondary precincts."
"Across Sydney, we are seeing strength in the commercial office market that is encouraging given the softening of the residential market. The strength of the market has been primarily driven by limited stock and infrastructure improvements and is anticipated to remain strong for the time being," they concluded.
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Sydney CBD office rentals remain at record highs: HTW Commercial

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The Canberra office market maintained a steady pace through the first half of 2019 with a stable market benefiting from low unemployment, continued low interest rates and a strong local economy, according to the latest commercial report from property valuation firm Herron Todd White.
The report found, demand for leasing deals has continued to show strength with good levels of enquiry from tenants evolving into leases at Childers Street and Moore Street in the CBD, both tenants securing sub-3,000 square metres.
The A grade market has a vacancy rate of 1.7% and due to a lack of new stock in the short term, the market is anticipated to see a further drop in vacancy levels whilst construction of new premises is underway with completion due in 2020.
Rents for A grade space are averaging between $405 and $475 per square metre.
The valuers stated, "secondary B grade stock continues to reflect increased vacancy levels, currently at 13.9%, which will rise as a result of the relocation of both Home Affairs to the airport and the ACT Government to the CBD and Dickson with pre-commitments for the new space due in 2020."
"Recent sales volumes have been down on previous years however demand is persisting mostly from institutional and foreign investors with five-year plus WALEs and national tenants being features sought after by investors."
"Yields are 6% to 8% for prime buildings and 6.75% to 10.75% for secondary grade. Secondary space rents are around $300 to $330 per square metre," they concluded.
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