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.

Joel Robinson

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.

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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

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Office Market

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Melbourne is fast catching up with long-standing rival Sydney in the office leasing market, according to Cushman &amp; Wakefield.
An influx in planned supply in Melbourne will bring overall stock levels within 100,000 sqm of Sydney by 2021, the first time ever the gap has been this narrow (last was 400,00 sqm in 1992), it says.
Sydney, often considered the corporate capital and global property hub of Australia, previously benefited from disparity between both the size and quality of available office space. 
However, today despite Sydney’s 5.1 million sqm of net lettable CBD office space compared to Melbourne’s 4.6 million sqm, and a tighter office market in Sydney with vacancy rates of 5.9% compared to 6.5% in Melbourne, the most noticeable difference is in average prime rent, according to Cushman &amp; Wakefield.
While rental growth continues in both markets, CBD office space in Melbourne still remains markedly less expensive than Sydney. 
Average Prime net effective rents in Sydney is currently $720 per sqm across the CBD, whereas the equivalent Melbourne rent is practically half, at $370 per sqm. 
<a href="https://www.propertyobserver.com.au/images/2017/09/03/SydVsMel.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/03/SydVsMel.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/09/03/SydVsMel2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/03/SydVsMel2.png" alt="">
Alongside rent, an assortment of factors have helped close the gap in attractiveness. 
The Victorian government’s proactive approach to development and construction has seen net office supply grow at nearly three times the pace of Sydney over the past 5 years, according to the real estate firm. 
This will continue with significant disparity between the net negative forecast supply in Sydney (- 15,250 sqm) and the additional 435,000 sqm forecast supply entering Melbourne between 2017 and 2021.
This projected supply will significantly alter overall office volume, and in 2021 Melbourne office stock will come within approximately 100,000 sqm of Sydney. 
For perspective, the previously narrowest gap was approximately 400,000 sqm in 1992, and since 1990 the average gap has been circa 800,000 sqm. Beyond 2021, the proposed increased supply for Sydney will see this gap shift to a more traditionally balanced level. 
Whilst the Melbourne office market doesn’t incorporate major submarkets like Sydney, the abundance of newly built and renovated quality stock is bringing business to the CBD. 
“We are seeing large occupiers take a renewed interest in the CBD. They are gravitating from fringe areas like Richmond, Hawthorn and St Kilda Road back to the CBD for unsurpassed access to a wider talent pool and better amenities,” said Chas Keogh, joint head of Office Leasing Victoria.
Tim Courtnall, head of Office Leasing NSW added that “for the first time following the GFC we are seeing a shift from the importance of cost efficiency towards people and culture”. 
Many companies feel a renewed sense of confidence and are comfortable committing to a longer lease with many also upgrading their space to provide a competitive edge in today’s war for talent, he said. 
Despite the strong rental growth in Sydney’s CBD, firms are going after prime grade office space in superior locations with the best amenities to be competitive in targeting talent. 
While Melbourne’s significant population growth and attractiveness of cheaper prime grade rent has its appeal, Courtnall said he is yet to see companies relocating head offices to Melbourne as a result, and believes Sydney remains the preferred location for global financial and tier 1 technology firms. 
Highlighting the point, Cushman &amp; Wakefield recently secured space for two leading corporates that have chosen to expand their footprint or relocate within the financial core of Sydney’s CBD, despite steadily growing rents. 
RCR Building Services relocated from 50 Bridge Street in the Sydney CBD due to demolition, opting to lease two floors (2,410 sqm) in one of Sydney’s most iconic premium buildings, 1 Macquarie Place, Gateway. Growing fintech player, SocietyOne, also recently secured an entire floor in 45 Clarence Street, taking 44% more space and a higher effective rental. 
With both cities offering appealing lifestyles, and the range of office products becoming increasingly aligned, whether expanding an existing Australian footprint, relocating, or entering the Australian market, Melbourne’s eclectic appeal and Sydney’s celebrated locale is enticing to both investors and occupiers. 
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jonathanchancellor-7SQnKwU6yx

Melbourne closes in on Sydney in office stock: Cushman & Wakefield

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The simplest of all economic theories, the one most first year economic students are taught on day one, is the theory of supply and demand. 
Today, we can witness the Sydney and Melbourne CBD office markets as a perfect real-life example of this phenomenon. Both NSW and Victoria are experiencing extraordinary population growth fuelled by migration. 
According to the ABS, 72,013 local and overseas migrants moved to NSW, and an unprecedented 92,038 migrants moved to Victoria in 2016. These figures are 38 per cent and 45 per cent respectively above the 10-year average migration levels for these two states. 
This flow of migrants is contributing to strong white collar job creation in both capital cities – the demand side of our equation. The supply side, however, is not keeping up. 
The Sydney CBD office market only grew by 4,314 sqm over the last 12 months. This is a mere 0.1 per cent of total CBD supply. 
<a href="https://www.propertyobserver.com.au/images/2017/08/21/SydneyCBD.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/21/SydneyCBD.png" alt="">
Melbourne had far stronger supply, growing by 109,640 sqm over the past year, although all of this and more was absorbed. 
Total vacant space reduced from 313,311 sqm in July 2016, to 294,562 in July 2017. Supply for the next twelve months is even more ominous. 
<a href="https://www.propertyobserver.com.au/images/2017/08/21/MelbourneCBD.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/21/MelbourneCBD.png" alt="">
Colliers International is forecasting the Sydney CBD office market to contract by 50,000 sqm over the year to July 2018, and the Melbourne CBD to reduce by 7,000 sqm. This, at a time when Deloittes Access Economics expects an additional 5,600 office based workers to require space in the Sydney CBD, and 6,121 workers in the Melbourne CBD. 
Based on a conservative estimate of 11 sqm per office employee, this is about 60,000 sqm of demand in Sydney and about 65,000 sqm of demand in Melbourne. In a climate of reducing availability of stock, the simple law of supply and demand tells us that the result must be an increase in prices. 
Over the year to June 2017, prime grade face rents grew by 7.8 per cent in Sydney, and 14 per cent in Melbourne. 
“While these growth rates are well above ten year averages (4.7 per cent in Sydney and 4.3 per cent in Melbourne), our outlook for growth is over the next 12 months is also very strong,” says Anneke Thompson, national director at Colliers Research.
“Over the year to June 2018, we expect face rent growth of 10.3 per cent in Sydney and 13 per cent in Melbourne.
“This growth will have implications for landlords and occupiers. It is next year when we expect to see the bulk of face rent growth, before new supply begins to hit the market in 2019. Beyond that time, we see growth returning to more normalised levels, as supply and demand of office space rebalances.”
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Supply-demand imbalance in Sydney, Melbourne continues to push up rents: Colliers

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GUEST OBSERVER
Imagine a world where nothing is wasted and resources are endlessly re-purposed.
From bamboo coffee cups to recycled paint, more companies are championing the idea of a circular economy in which discarded raw materials and products are repeatedly reused, producing no waste or pollution.
According to the United Nations, by 2050 we could need three times more resources than we currently use, due to population growth and unabated consumerism. Specifically, the US National Intelligence Council has stated that globally we will need 35 percent more food, 40 percent more water and 50 percent more energy by 2030 alone.
“In short, the ‘take, make, dispose’ model of production, also known as a linear economy, is forcing the planet into a state of disrepair,” says Sophie Walker, Head of UK Sustainability, JLL. “We inherently live beyond our means and as a result, have seen pressures on resources mount and the potential for irreversible environmental changes grow.”
Taking a fresh approach
In recent times the concept of a circular approach has gathered momentum as an attractive and viable way of generating economic growth and prosperity for people and planet. “The shift to the regenerative circular concept we are seeing is taking place because world governments and businesses have realized that increasing global competition has made access to resources, at affordable prices, an increasingly challenging proposition,” says Walker. “They have also realized that the environmental risks are too severe to continue down the ‘linear’ path.”
And the potential benefits of applying circular principles to domestic economies and businesses are mammoth. The European Commission states that it could bring an estimated net saving of £523 billion to European businesses. In London, net benefits of a least £7 billion per annum along with 12,000 new jobs could be obtained by 2036 by applying circular activities across a variety of sectors according to The London Waste and Recycling Board.
Big companies such as Apple, Unilever, Renault and Google are already taken action to embrace circular solutions. In the fashion world, H&amp;M aims to become 100 percent circular, helped by its in-store garment-collection program and polyester fashion line made from reprocessed PET bottles.Since adopting a circular mindset, professional services firm PwC has saved almost £25 million by cutting paper and energy consumption through measures such as using cooking fat from its canteens and other kitchens to fuel its offices and remanufacturing office furniture where possible. Its cut-throat examination of numerous waste streams helped it achieve zero-waste-to-landfill status in 2012.
The real estate impact
Can the same circular principles work for buildings? Walker thinks so: “In my opinion the answer is yes. The UK building sector utilises over 400 million tonnes of material a year and generates a third of all our waste which comes at great cost, not only to the planet but also to our pockets. But it doesn’t have to be this way. Durable, re-usable components that can be easily put together, taken apart and accessed for repair or replacement can make all the difference. This allows us to adapt to society’s ever-changing needs by extending the life and value of our buildings.”
She points to modular construction, where homes are built in a factory environment using state of the art methods and materials, as an antidote for reducing waste and improving speed and affordability of new builds in the UK housing sector. For example, Legal &amp; General has just built its first modular housing prototype outside its Selby factory in Yorkshire.
Elsewhere, companies are turning waste into building materials. Lendlease is a supporter of Cross Laminated Timber (CLT), a material made from wood chips, normally considered scrap. CLT has a low ecological footprint and is faster and less labour-intensive to construct than conventional materials so much so, that the first 10-storey apartment building made with CLT took five skilled workers just 10 weeks to build. In what it calls “the latest example of high-performance workplaces, setting new benchmarks in environmentally sustainable building practices,” Lendlease is using CLT to erect the tallest and largest engineered timber office building by gross floor area in the world in Brisbane, Australia.
Why the future is circular
“Circular thinking really is gaining traction in the property sector,” Walker explains. “There are firms out there building entirely with circular economy principles.” The aptly named Circular Building was one of the first buildings in the UK built to satisfy these values, in which all parts were intended to be used to their full potential and to the duration of their life cycle.
“Another example is the Park 20|20 office development in Amsterdam which embraces a circular-economy approach by creating closed cycles for materials, energy, waste, and water, with everything having the potential to be composted or recycled back into industry,” she adds.
As circular thinking catches on, the need to move towards a new model is no longer in doubt nor are the potential economic opportunities. “Whether it’s property, retail or consumer goods, businesses are realising that big cost savings can be made from being socially and environmentally responsible and efficient,” says Walker.
To recycle the phrase Mark Farmer used in his assessment of the British construction sector: “the choice is simple, modernize or die.”
This article by Emma Hollingshead appeared in <a href="https://www.jllrealviews.com" target="_blank">JLL Real Views</a>
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How companies are reaping the benefits of circular thinking

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Commercial property continued to be a popular with foreign investors in the 2016/2017 financial year, in particular office assets in the Sydney and Melbourne CBDs, according to Colliers International.
Investment across the office, retail, industrial and hotel sectors was $28.99 billion in the preceding financial year, according to the 2016/17 Capital Markets Investment Review series.  
Foreign buyers accounted for $8.19 billion, or with 28 percent, of those sales, according Colliers.
“Yield compression in each asset class will continue throughout the financial year ending (FYE) 2017, with limited stock creating competitive tension between investors and driving record prices,” says the report.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/InvestSnapshot.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/08/15/InvestSnapshot.png" alt="">
The states most in demand with investors are New South Wales and Victoria due to their thrust on infrastructure development, population growth, rising rental rates and tightening yields.
This has created opportunities for some of Australia’s premier developers to build the next generation of commercial assets, according to Colliers International’s managing director of Capital Markets and Investment Services, John Marasco.
“These development hot spots in Sydney and Melbourne will cement these cities’ reputations as globally competitive cities for both capital and tenants, and meet not only the current but also the future needs of occupants,” he said.
New South Wales grabbed the lion’s share of investment across office, retail, industrial and hotel sectors, totalling $12.51 billion.
It was followed by Victoria, which recorded $8.33 billion in investment across all four sectors.
“Not surprisingly, the eastern powerhouse states of New South Wales and Victoria have again dominated sales volumes, with generally more assets to offload and greater appetite from buyers for CBD locations,” Marasco said. 
Queensland had $4.75 billion in total investments, followed by Western Australia with more than $1.02 billion, the Australian Capital Territory with more than $628.5million, and South Australia with $601.5 million.
Anneke Thompson, Colliers International’s national director of Research, said one of the most notable trends this year was the increase in investment from offshore private investors, particularly in the office sector. 
“Throughout the past financial year, offshore privates purchased $2.09 billion worth of office stock, up 59 per cent from $855 million the previous year,” she said. 
Not surprisingly, half of the offshore private capital invested in Australian office markets came from China at $1.05 billion. Private capital from Hong Kong and Singapore also surged, growing to $906 million in 2017 from $73 million in the financial year ending in 2016.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/OfficeOffshoreVol.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/08/15/OfficeOffshoreVol.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/08/15/OfficeInvestmentByState.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/15/OfficeInvestmentByState.png" alt="">
Thompson said the influx in private capital could be explained by both the continued search for yield and the growing perception in the global investment community that Australian office property offered a “safe haven” investment environment.
“The improving leasing markets, particularly in Sydney and Melbourne, are also helping drive investor confidence in the outlook for capital appreciation of core office assets,” she said.
Throughout the past year, Australian office markets have continued to build on their growing global reputation as a relatively high-yielding asset with solid long-term fundamentals, attracting more offshore capital.
According to Colliers International’s 2016/17 Capital Markets Office Investment Review, the total transactional value for the FYE2017 was $13.2billion, with about 75 per cent of sales taking place in New South Wales and Victoria and offshore investors making 44.9 per cent of purchases.
Although transaction value is slightly down on last year (by $2.7billion), the FYE2016 included the $2.45billion sale of the Investa portfolio to China Investment Corporation, Colliers said. 
Marasco said it was important to note the impact population growth in Australia’s capital cities was having on transaction volumes, with the country growing by 1.89million people between the 2011 and 2016 Census.
“Both federal and state governments are now more focused on building infrastructure to help our cities cope with their growing size,” he said. 
“These are key positive attributes for office markets, with both trends being felt most keenly in Sydney and Melbourne.”
 
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Offshore money continues to flow into commercial property: Colliers

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Demand for office space in Adelaide is growing according to Colliers International, who believe the local office market is heading into the second half of 2017 with a positive outlook.
Jeevan Deut, Colliers International’s associate director for Office Leasing in South Australia said about 70 per cent of all enquiries continue to come from small business looking for office space less than 1,000sqm.
“It is interesting to note that the number of larger business looking for space greater than 3,000sqm in Adelaide is on par with the likes of Brisbane and Sydney," he said.
“The average size of a business looking for office space in the Adelaide market has also increased from prior year, up from 587sqm to 1,030sqm.
“It seems that the insurance sector is driving the majority of the larger requirements, followed by the education and training sector and the property services and government sectors.
“Our market has seen transactions increase almost threefold in terms of area.
“The average size of businesses transacting has increased from 290sqm in the five months to May 2016 to 777sqm in the five months to May this year.
"The perceived low demand environment was consuming people’s attitudes and fuelling a negative sentiment towards the office market.
“We are finding the leasing market is now starting to turn.
“With a sound level of enquiry and anticipated tenant movement, we have passed a trough in tenant demand and are now trending back up.
“Moving into the second half of 2017, we expect the demand for office space in Adelaide to rise and larger businesses to transact.”
Colliers International’s research database has recorded the total amount of office space enquired for year to date to have increased by 44 per cent when compared to the same time last year. 
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Insurance sector drives demand for Adelaide office space

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Entry-level office accommodation within the Adelaide CBD is essentially limited to strata suites, according to valuation firm Herron Todd White’s latest office market review. 
This market has been relatively stagnant, rental growth has been limited and the vacancy within the CBD is high. 
Below are a range of sales within the Adelaide CBD that HTW considers are entry level and show analysed yields ranging from 4% to 8%. 
<a href="https://www.propertyobserver.com.au/images/2017/07/14/AdelaideCBD1.jpg" target="_blank">Click to enlarge</a>
 <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/2017/07/14/AdelaideCBD1.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/07/14/AdelaideCBD2.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/14/AdelaideCBD2.jpg" alt="">
There are affordable freehold options within the CBD fringe. The price of properties will vary significantly, with the alternate use possibilities and development potential meaning that the investment is aligned to factors other than its office use. 
As an example of a sale, a 67 sqm office suite (above and below) at <a href="https://www.realcommercial.com.au/property-offices-sa-adelaide-501956566">401/147 Pirie Street</a> in the CBD sold recently for  $376,000 through Leedwell Property, according to Corelogic RP Data.
 <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/2017/07/14/HTWAdelaide1.jpg" alt="">
The entry-level office accommodation in suburban localities is most notably former homes converted to office use along main arterial routes, add HTW.
Along these arterial routes the demand and therefore value levels will vary significantly between locations and building types; however, similar to CBD strata suites they are predominately sold to owner- occupiers. 
Escalating outgoing costs and limited rental growth is eroding investment returns. The market is more risk adverse and low interest rates can make owner- occupation more attractive than renting, indicating that owner-occupiers are more active in this space. 
Mum and dad investors looking to acquire entry- level office space should think more broadly about alternate uses and the potential of future rezoning; and if buying a leased investment ensure that the rent is sustainable. 
Cash flow positive office investment could have a higher risk of vacancy, with the possibility of needing to offer incentives such as lower rent to attract a new tenant, however, these costs may be beyond the entry-level investor. Lessoning those risks by looking to more prominent localities such as in the inner east CBD fringe or in the CBD will possibly push the price point beyond entry-level. 
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Adelaide CBD office market stagnant, entry level assets mostly strata suites: HTW

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Over the past 12 to 24 months, the entry-level Sydney CBD, CBD fringe and secondary office markets have experienced significant capital and rental growth amid a strong rental environment and low vacancy due to a number of factors, say valuation firm Herron Todd White in their latest office market review.
The withdrawal of office space for alternative uses or redevelopment, including Goldfields House at 1 Alfred Street, Fairfax House at 19 Pitt Street and the Department of Lands building at 23-33 Bridge Street has not been counterbalanced by entry-level gross supply within the Sydney CBD. 
Further, the construction of the Sydney Metro and residential redevelopments will place further pressure on supply and office rents in the Sydney CBD, adds HTW.
Secondary office precincts in areas such as the northern beaches suburbs of Belrose, Warriewood and Brookvale, together with CBD fringe precincts including Surry Hills, Ultimo and Pyrmont, have only recently shown signs of coming out of a long GFC-impacted period of subdued growth with values only recently matching those last seen in 2007. 
The entry level market in the CBD is generally characterised by smaller (10 to 75 square metres) strata title office stock within B and C grade office complexes such as 147 King Street and 368 Sussex Street with prices ranging from $200,000 (less than 100 square metres) to $500,000, reflecting market yields in the range of 5% to 7%, says HTW.
An example of such a sale was a commercial suite in Quay West, <a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-502341138" target="_blank">111 Harrington Street</a>, that recently sold for $330,000 through Noonan Property, Corelogic RP Data shows.
 <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/2017/07/13/HTWJulySyd1.jpg" alt="">
Similar office stock in secondary locations such as Belrose and Brookvale tends to sell in the $200,000 to $400,000 bracket reflecting yields in the range of 5.5% to 7.5%. 
“Belrose is an example of a suburb that had been significantly impacted by a pre-GFC glut of stock leading to oversupply with resultant subdued growth in capital values and market rents and high levels of vacancy,” said HTW.
Recently, an <a href="https://www.realcommercial.com.au/property-offices-nsw-belrose-502366902" target="_blank">office space</a> in Belrose changed hands for $220,000 through LJ Hooker.
<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/2017/07/13/HTWSydBelrose.jpg" alt="">
The entry-level market is generally characterised by owner occupiers and sitting tenant purchasers driven by the low interest rate environment in which the cost of finance compares favourably with market rents, mum and dad investors looking for 5% plus yields in an environment where alternative property investments with sufficiently positive yield profiles are few and far between and superannuation fund investors. 
The strong residential market has added further fuel to the fire in providing significant equity to invest. 
To counterbalance this, the main threats to continued growth in entry-level office markets would include rising interest rates, a general downturn in the economy negatively impacting affordability and confidence and a reversal in Sydney’s residential property market. 
“Many commentators are reflecting that we are at the peak of the current property cycle, though time will tell,” conclude HTW.
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Sydney entry-level office market shows solid growth trend: HTW

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The office market in Canberra has experienced an oversupply in recent years, driven by high vacancy levels due to the Commonwealth government policy and the demand for quality high-end space, say valuation firm Herron Todd White in their July office market update. 
As a consequence, the lower end price of the market felt the impact as a flow on effect from the abundance of space which in turn led to downward pressure on rents and increases in incentives available to tenants. 
The continuation of low interest rates provided the opportunity for those looking to invest or acquire smaller unit properties for under $500,000. Primary locations include the City, Kingston, Manuka and Braddon and secondary locations are Deakin, Turner and Phillip or one of the town centres, Belconnen, Gungahlin and Tuggeranong, says HTW.
This class of property comprises small office units ranging from 50 square metres to 200 square metres in units plan complexes.
An example being <a href="https://www.realcommercial.com.au/property-offices-act-griffith-502070558" target="_blank">Unit 1/22 Franklin Street Manuka</a> which sold in June 2017 for $276,000 with an area of 55 square metres showing $5,018 per square metre.
<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/2017/07/13/HTWManuka.jpg" alt=""> 
Manuka is an inner south primary boutique shopping centre located within five minutes of the Parliamentary Triangle with a sought after office precinct. Unit 60 and 61/18 Flinders Way Manuka sold for $150,000, each being 55 square metres and 54 square metres respectively showing $2,727 per square metre and $2,777 per square metre and a yield of 7.5%. The units were leased and included two car spaces. 
Secondary locations include Deakin, Turner and Philip, an example being Unit 2/42 Geils Street, Deakin sold in April 2017 for $310,000 being a 83 square metre ground floor unit with a fitout in place. This showed $3,735 per square metre. Deakin is a secondary area occupied by medical and association tenants and private organisations. 
Owner-occupiers are dominating the market at present with access to finance and low interest rates providing the opportunity to purchase property via a superfund and obtain an asset for the future. 
The market performance is currently steady with values holding in most areas except Tuggeranong, where supply is higher than demand and some new mixed use developments are under construction.
"As we approach the later half of 2017 and beginning of 2018 the market should start to show signs of growth due to a number of Commonwealth Government lease deals coming to fruition and the opportunity for rental deals to provide some growth for the next few years," say HTW in the review. 
No new developments are due in the short term which will put pressure on the current space available. Until the mooted building projects re-commence there is no new space available in the ACT.
However, space is available in most areas at the lower end of the price range within the $250,000 to $500,000 range primarily in mixed use developments at ground and first floor levels, conclude HTW.
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Canberra's lower end of office market faces oversupply: HTW

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The office market continues to stay without a peak of market occupant, with Melbourne staying put along with three other cities at the approaching the peak position, similar to the previous update in April from valuation firm Herron Todd White.
However, the latest July office clock indicates that the list at the bottom of the market has swelled, with April occupants Adelaide, Darwin, Hobart, Burnie, Cairns, Devonport, Launceston, Townsville and Wide Bay joined by two capital cities, Brisbane and Perth.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWJulyOffice.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/10/HTWJulyOffice.jpg" alt="">
 
Sydney remains a rising market, with an undersupply for office rentals relative to demand, according to the Office Market Indicators. 
Melbourne is a balanced market, though there is an oversupply of available property for rent. 
Brisbane and Perth are grappling with a large oversupply, which probably explains their bottom of market position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWCapitalCityMarketIndicators.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/10/HTWCapitalCityMarketIndicators.jpg" alt=""> 
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWMarketIndicators.jpg" target="_blank">Click to enlarge</a>
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The April clock had NSW Far North Coast approaching the peak of market, but has dropped two notches since then to the start of recovery position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWAprilOffice.jpg" target="_blank">Click to enlarge</a> 
<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/2017/07/10/HTWAprilOffice.jpg" alt="" style="font-size: 12.16px;">
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Melbourne, Gold Coast approaching peak of cycle for office market: HTW property clock

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Tenants upgrading to higher quality suburban and CBD office properties have vacated 40,000 sqm of office space across Western Australia’s suburban office markets in the past 12 months, according to a new report.
West Australian commercial property information firm Y Research’s latest, West Australian Suburban Office Report, shows that the 
Vacancy rate across Perth’s 50 suburban office markets have risen to 17.7% from 16.5% in November 2016, according to the June report.
A weak economy and increasing competition for office tenants, large and small, from office owners in the Perth CBD, West Perth and other suburban markets, are pressuring Western Australia’s suburban employment hubs, according to chief problem solver of Y Research, Damian Stone.
In the past six months, 11 suburbs recorded more than 1,000 sqm of negative net absorption including major markets, Northbridge, East Perth, Leederville, Fremantle and Midland. 
While relocations to the Perth CBD and suburban markets have played a role, the major driver of higher vacancies in the first half of 2017 continues to be downsizing with companies, such as the Sunday Times, Boral, NAB and the Water Corporation, vacating space in the last six months. 
Despite the higher headline vacancy rate, what is becoming increasingly evident is tenants’ flight to quality, said the report. 
“Improved affordability, in terms of market rents and leasing incentives, combined with increased choice due to recent office developments and the level of vacancy, is allowing tenants unprecedented choice of tenancy. 
“The flight to quality trend is highlighted by tenants upgrading from secondary spaces in their current suburb or relocating to a neighbouring market, typically within 5km.”
Retailer Bunnings’ move from industrial space in Welshpool to a portion of the recently completed A Grade building in Rivervale was the largest leasing transaction in the reporting period and also evidence of the flight to quality. 
Reinforcing the trend, infrastructure operator Brookfield Rail moved from Welshpool to Bravo at Perth Airport while aged care provider Bethanie Group shifted from Claremont to WorkZone in Northbridge. Residential developer Satterley moved from South Perth to Troode Street in City West.
This “flight to quality” is having two main impacts on Western Australia’s suburban office markets – either in terms of suburb or building, you are top of the market or not in the market for tenants, says the report.
With multiple choices for A Grade space in desirable suburbs such as Subiaco, Northbridge and Herdsman, there are limited or no tenants in the market for older, secondary properties in non-core locations with limited - amenity, public transport links and building services such as end of trip facilities. 
As a result, market rents for high quality spaces have stabilised in the past six months, while discounting continues across secondary properties and non-core locations. Secondary property owners unable to compete on building quality are using price to drive absorption. Asking prices under $100 per sqm are increasingly commonplace, it says.
“Ten years on from the peak of Perth’s office space crunch and the wave of decentralisation of tenants to the suburbs, the short-term challenges are mounting for Perth’s suburban office markets - continued competition from Perth CBD and West Perth owners, amenity short falls in major markets, vacant space in recently completed developments and potential space consolidation from suburban office markets’ main occupier, the State Government,” notes the report.
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