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 Sales

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A local high net worth individual has spent $16 million on the former Bank of New South Wales building in the Sydney CBD.
The vacant three storey office block belonged to the Shanghai based Dahua Group who had paid $4.6 million in 2009.
The building at 25 King Street, one the corner King and Sussex Street, has a net lettable area of 969 sqm and sits on a 278 sqm site.
It is listed as an item of local heritage significance, having been originally constructed in the early 1890s for the purposes of the western branch of the City Bank of Sydney.
The Dahua Group recently spent $7.4 million on extensive building refurbishments which included a full façade restoration, reparation of spiral staircase, specialist plasterwork and conservation of pressed-metal ceilings.
New works included an interconnecting stair, lift and rooftop deck.
Architect Design Studio Group undertook the works with building firm Built.
Andy Hu and Jordan Lee of Savills Australia secured the sale.
Hu said the building’s prominent corner location benefits from high pedestrian and vehicular traffic and the roof top terrace boasts views of Darling Harbour and Cockle Bay.
“This is a landmark boutique building which offers a vast selection of open workspaces, function areas, timber and stone floors throughout and three sides of natural light with amazing water views”
 
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jrobinson-rf4aSBido9

Former Bank of NSW building in Sydney sells for $16 million

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Colliers International is confident 2019 will be a strong year for office sales in Canberra, particularly for properties valued above $10 million.
Reflecting on the state of the market at an industry event this month, Colliers International DirectorCapital Markets and Investment Services, Michael Montelibano, pointed out the ACT’s strong macroeconomic conditions.
“Our positive population growth and low unemployment, combined with relatively affordable entry points and high yields, make Canberra an attractive place to invest,” Montelibano said.
“Canberra’s office market is displaying strong fundamentals which are expected to continue for the near-term.
“These market conditions are drawing international investors to the national capital.”
Montelibano also expects investor interest to continue for the remainder of 2019.
“Office properties above the $10 million price point in established precincts such as Civic and Barton that are well leased remain highly attractive to investors. We expect yields to tighten in these markets, particularly for new build product, given decreasing vacancy and the favourable interest rate outlook.
“Significant investment activity is forecast for properties in this market segment. With over $271 million of sales in this segment year to date, we expect total 2019 sales to exceed that of 2018 by around 50%.”
Montelibano also cited the continued strong performance of the strata market and the flight to quality trend from investors and owner occupiers.
“The performance of well-located and well-leased strata stock is steady, notwithstanding pressure from tightening financing conditions and rising rates and body corporate fees. However, units in secondary markets with vacancy are presently undergoing a re-rating.”
Colliers International has noted a shift towards off-market transactions in the past five years.
“Nearly 70% of sales managed by Colliers International in 2018 were off market and there has already been over $162 million in off-market sales so far this year,” Montelibano revealed.
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Canberra office market tipped for strong end to year 

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Heitman LLC (Heitman) a global real estate investment management firm, has acquired an Edward Street office building Brisbane.
They made the purchase on behalf of an affiliate, in a joint venture with Marquette Properties (Marquette), a Brisbane-based real estate asset manager.
Comprising 18,000 sqm of office space and 1,500 sqm of retail space across two floors Heitman and Marqueete plan on substantial ground floor and podium work, as well as upgrading the façade.
Situated at 288 Edward Street, it is positioned in the Central Brisbane CBD 
Brad Fu, Heitman Senior Vice President and Director of Asia-Pacific Acquisition “The asset’s irreplaceable location provides a compelling repositioning opportunity in the core of Brisbane’s CBD, which is benefiting from a strong revival in leasing demand, an expanding Queensland economy, and growing international investment interest.” 
Skip Schwartz, Heitman Managing Director and Head of AsiaPacific Private Equity said, “the investments in these Australian assets over the past 12 months provides our Asia-Pacific mandates, both for separate accounts and our dedicated fund, strong diversification across both property type and geography."
Not Heitman's first foray into the Australian or Brisbane market, During the past 12 months, Heitman has acquired more than AUD $700 million across Australia’s Eastern Seaboard. 
Including the Brisbane Barracks, on behalf of an affiliate, in a joint venture with Fortius Funds Management in January this year.
In January this year fully fitted office space was listed for rent at $300/sqm per week.
 
 
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Heitman purchases Brisbane CBD Office

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The average Sydney strata office sale price is now over $1.5 million for the first time ever, according to Ray White’s upcoming Between the Lines commercial report. 
The research showed limited supply available for sale had increased competition and been instrumental in growing capital values into 2018, after stand-out increases in 2016 and 2017.
In 2018 $151.93 million dollars worth of strata office sales took place across 100 transactions.   Ray White’s Head of Research Vanessa Rader said “As vacancy levels continue to maintain a low rate across the broader Sydney CBD market, rents remain expensive, which has seen more occupiers looking to shelter from further increases."   “On a per square metre basis, the overall capital value saw an increase of 24.66 per cent compared to 2017's annual results, which is an average of $12,144 sqm (on an adjusted basis), more than doubling the value achieved in 2014." “In 2018 we've seen a greater volume of multiple purchases, where buyers are seeking to amalgamate adjoining lots. But despite this, the average sale size remains low at 124sq m, slightly up on 2017 result of 117 sqm."   “Turnover this period has been its highest in the Core sector, with the bulk of transactions occurring in quality strata buildings along Hunter and Pitt Streets, with many achieving new highs in capital value," she added.
Activity in the Macquarie and Elizabeth Street precinct increased this year.   Ms Rader stated, “The Core sector recorded $71.67M, followed by Midtown with $44.06M and Western Corridor $23.49M changing hands, while the Southern precinct, due to its limited stock, has recorded just $9.79M for the full 2018 calendar year.”   She added, considering the annual capital values by precinct, 2018 saw outstanding growth across all precincts, adding to the last five years where value increases had been substantial.   “Core continues to be the most expensive precinct which has increased to $12,877/sqm, up 14.36 per cent over the last year, followed by Midtown up 19.98% to $11,768/sqm,”   “A highlight's in the Southern precinct, achieving over $10,000/sqm for the first time. Over a five-year period, the growth in this segment of the market has been remarkable, particularly given the prolonged period where limited change occurred in values for this asset class.   “Overall, the Sydney CBD strata market has yielded annual growth of 27.69 per cent per annum, the most stable growth rate being in the Core sector, up 26.81 per cent per annum over this period,” she concluded.
<img src="https://www.urban.com.au/images/2019/2/6/wharf%201.JPG" alt="">
Ray White Commercial NSW’s Sales Director Strata Sales Christian Minards said the sale of King Street Wharf waterfront office at <a id="LPlnk910413" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGUHy3spBOCCc7XnQOC/I58CxewQ3EgnfeJc1IjKSaYe4=&amp;rh=ff0046acf478bab0e96fd8df2147b057fff2eec6" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Suite 505/35 Lime Street</a> (pictured above &amp; title) was an example of the markets strength.
The sale price is believed to be around $2.6M to $2.7M.   Mr Minards said the sale represented a rate per sqm for the office component of over $14,630psqm, a record result for the development.   “The development of Barangaroo has created a surge in sale prices at King Street Wharf, which until recently have been priced at around $10,000psqm. We’re now seeing prices climbing to over $14,500psqm,” he said.   “The lack of supply of quality strata offices and strong demand from buyers is continuing to drive strata office prices."   “Suite 505 presented a highly sought-after opportunity within the tightly held King Street Wharf precinct and the opportunity attracted plenty of interest.”
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Average Sydney strata office sale price breaks $1.5 million: Ray White

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Melbourne suburban office sales surpassed $1 billion in value for the fifth consecutive year in 2018, according to Colliers International.
The group is forecasting another year of record investment in the Melbourne metropolitan market.
$1.08 billion worth of metropolitan office sales were recorded in 2018, for offices above $5 million with 44 transactions taking place.
This was an increase from $1.03 billion in 2017. 
Colliers International’s Peter Bremner, National Director of Metro Sales, said the most active market was the city fringe region, where just over $500 million of office buildings sold in 18 transactions.
This was followed by the Outer East region, where $300 million of office stock sold across 14 transactions.
“We predict another $1 billion-plus year in 2019 as buyers see value in the strong fundamentals of the Melbourne metro office market, as leasing conditions continue to turn in favour of lessors and rents continue to rise and incentives decrease across most regions," Bremner said.
“Whilst yields may not decline like they have in previous years, capital growth is still expected due to these favourable leasing conditions.
“Pre-commitment and speculative office construction will rise as residential development sites are converted back to commercial as the highest and best use.”
Melbourne’s metropolitan office market comprises 3.23 million square metre in NLA and has a current overall vacancy of 5.24%. 
Bremner said the hottest markets to watch in 2019 would continue to be those city fringe suburbs within the 3-5 kilometre ring around the CBD, including South Melbourne, Kensington, Fitzroy, East Melbourne, Abbotsford, Collingwood, Richmond and Cremorne.
The largest deal of 2018 in Victoria was the sale of 60 Brougham Street in Geelong for $115.25 million.
The office building was 100% occupied by TAC and purchased by Centuria for a passing yield of circa 6.90%. 
Followed by the sale of 21 Harcourt Parade, Cremorne, an office building that was pre-committed by MYOB and sold by Colliers International as a fund-through transaction to AXA for $100.1 million, reflecting a yield of 5.40%. 
The third priciest deal of 2018 was 452 Johnston Street in Abbotsford which transacted for $93.5 million at the start of 2018, with Abacus Property Group purchasing the Computershare headquarters on a yield of 5.85%. 
Private investors accounted for 51% of metropolitan office sales in 2018 (or 22 deals), following by owner-occupiers at 21% (nine deals).
This was followed by institutions at 12% of total transactions (five deals), offshore buyers at 9% (four deals), syndicates at 5% (two deals) and just one sale to a developer (2% of total transactions).
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Melbourne metro office investment cracks $1 billion for fifth year running

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The property fund manager Charter Hall has bought two office buildings in Sydney's Barangaroo/King Street Wharf precinct in a $804 million deal. 
The transaction, which was signed off just before Christmas, was among the biggest deals of 2018.
Charter Hall Prime Office Fund (CPOF), Charter Hall Direct Office Fund (DOF) and Charter Hall Direct PFA Fund (PFA) will hold stakes in the 10 and 12 Shelley Street buildings (pictured above) in the Barangaroo/King Street Wharf precinct.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
CPOF will own a half stake in each of the two buildings.
DOF holds 50% of 10 Shelley Street while PFA co-owns 12 Shelley Street with CPOF.
Collectively, the two buildings offer some 42,000sqm of net lettable area.
There are long leases to Suncorp and American Express.
In 2016, Charter Hall and Morgan Stanley Real Estate Investing’s (MSREI) core Asia fund, <a href="https://realassets.ipe.com/news/investors/morgan-stanley-acquires-sydney-office-tower-from-brookfield/10013440.article" target="_blank">jointly acquired</a> the nearby 1 Shelley Street from Brookfield for $525 million.
Adrian Taylor, Charter Hall’s Office CEO, said opportunities existed to unlock synergies between the sites by including interlinking buildings above ground to facilitate campus style accommodation for big space occupiers.
With the latest acquisitions, Charter Hall’s total office assets under management rose to $12.9bn.
Charter Hall also recently spent $98 million sale of the ground beneath Sydney’s landmark Chifley Tower.
The acquisition was of the freehold site beneath the Kohn Pedersen Fox landmark.
The Australian's Bridget Carter has suggested the acquisition of the land was to better position Charter Hall to secure the leasehold should GIC ever be a seller.
The Charter Hall Prime Office Fund also owns the leasehold of the Australian Club.
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Charter Hall buys two Barangaroo/King Street Wharf precinct office buildings for $804 million

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An A-grade Pyrmont office building has sold for $143 million to AEW.
JLL and Colliers International managed the deal for 19 Harris Street on behalf of a private client of UBS Asset Management, AEW who purchased the property on behalf of its Value Investors Asia fund series.
An international expressions of interest campaign was launched in July 2018 for the seven story building, which garnered interest from local and offshore investors.
“Properties such as 19 Harris will benefit from significant rental growth in this sub-market as leases reach their expiry,”  JLL's James Aroney said.
“The high calibre of tenants, the quality of the asset and the vibrant city fringe location made it an attractive investment opportunity.”
 The building is set to benefit from the redevelopment of the Bays Market District, less than 1km away in Blackwattle Bay, which will add to the area’s retail and social amenity.
Thomson Reuters is the anchor tenant of 19 Harris Street, and L’Oreal Australia is also among the 12 occupants of the fully leased asset.
The building has a net lettable area of 12,568 sqm and campus-style flexible floor plates of around 2000 sqm.
 The deal represents a sale rate per square metre of $11,378 and a passing yield of 4.87 per cent. The weighted average lease expiry (WALE) is five years.
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Pyrmont Office building sold for $143 million

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A strata office located within Spring Hills’ ‘Portman Place’ complex has been purchased by an interstate investor after only 11 days on market.
Will Carman of Savills negotiated the sale on the commercial office suite at 220 Boundary Road achieving a rate of $5,518 per square metre.
The 135 sqm suite is in proximity to the Brisbane CBD.
WBP Architecture and Design a local architectural firm, has occupied the premises for the last 30 years.
Established in 1987, WBP Architecture specialise in commercial, hospitality and fast food projects and designs and have undertaken projects from Darwin through to Hobart.
They recently signed a new lease expiring in 2023.
Mr Carman said, “being a longstanding tenant, WBP offered security and an income stream of almost $60,000 net per annum."
He credits a "targeted database strategy,” for the quick result.
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Savills sell Spring Hills strata office to interstate investor

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Rockworth Capital Partners have purchased a freehold office building, 100 Edward Street, set within Brisbane’s Golden Triangle financial precinct.
It was acquired from an investment partnership managed by Evolution Private (“Evolution”), in an off-market transaction valued in excess of $60 million.
The acquisition of 100 Edward marks RCP’s first entry into the Brisbane CBD office market, and builds on the Group’s existing Queensland retail presence including Town Square Redbank, Everton Park and Rothwell shopping centres.
Following this acquisition, RCP’s portfolio now comprises office assets in Australia’s four largest commercial real estate markets, Sydney, Melbourne, Perth and Brisbane.
Strategically located at the junction of Edward and Mary Streets, the property is situated on a sizeable corner site of circa 1,400sqm.
Comprising approximately 7,120 sqm of office space, the 17-storey tower has 109 car park spaces and prominent ground floor retail tenancies. 
Rob Carter and Mark Russo, Principals of Evolution stated that “100 Edward Street has been a leasing success with 25 tenants currently occupying around 95% of the building"
It was recently refurbished and has undergone lift interior and building services upgrades.
Located withing walking distance of over A$10bn of planned redevelopment and infrastructure spending, the property sits at the crossroads of the premium ‘Golden Triangle’, upcoming Queen’s Wharf and Eagle Street Pier redevelopments. 
Lim Kin Song, Chief Executive Officer of the Group stated, “the acquisition is a timely opportunity to participate in a fast-evolving gateway city in Australia, with a strategically located asset at the centre of major rejuvenation and infrastructure projects."
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“RCP continues to look for investment opportunities of a similar value-add nature or counter-cyclical propositions, to provide compelling risk adjusted returns for its investor base.”
“As a mid-to-long term investor, RCP maintains a positive outlook for both the Brisbane and broader Queensland markets, particularly given the pipeline of committed infrastructure projects."
RCP 's national portfolio for Australia contains 14 office and retail assets.
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Rockworth Capital buys Brisbane office tower for $60 million

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<div>EG has sold its 277 William Street, Melbourne offices to an undisclosed Hong Kong investor.</div>
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<div>EG, a large Australian hedge fund, exchange contracts for the sale at $93.88 million.</div>
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<div>The Australian Financial review suggested it was bought by one of Hong Kong's richest families, the Fu family's KHI Holdings Group at a yield of 4.65 per cent.</div>
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<div>The acquisition was the first in Australia for the company that dates back to 1947 when Y.C. Fu established the Tak Kee Shipping &amp; Trading Company, then later branching out in hotel development with Furama Hotels.</div>
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<div>The 12-storey office building was originally acquired by the EG Core Plus Fund No.1 in November 2015 for $45.9 million.</div>
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<div>EG re-let over 70% of the property and undertook significant cosmetic and plant and machinery upgrades during the hold period. </div>
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<div>The WALE of the property was also increased from 3.3 years to 3.9 years.</div>
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<div>After a number of unsolicited approaches, EG decided to put 277 William Street on the market.</div>
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<div>The building has a net lettable area of 12,080 sqm, 32 car bays and is located nearby Flagstaff Train Station and the Queen Victoria Markets.</div>
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<div>EG's Daniel Farley said rhe property has been "much improved during our hold period," to become a quality B grade asset boasting a strong leasing success rate and excellent environmental credentials.</div>
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<div>The purchaser was represented by Vantage Investments through CBRE and JLL.</div>
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