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 showroom/office at Oakleigh in Melbourne’s south-east has been sold at auction.
Ray White Commercial Oakleigh secured $1.7 million – more than $500,000 above the reserve price.
The vacant two-storey building at 10/2-16 Warner Street, Oakleigh, was sold to an owner-occupier by George Kelepouris of Ray White Commercial Oakleigh on behalf of a local owner.
Mr Kelepouris said there were five bidders at the auction.
“The auction ended up in a battle between two bidders who pushed the price up to $1.7 million, which was $540,000 above the reserve,” he said.
Mr Kelepouris said the building offered a net lettable area of approximately 1670 sqm on a total land area of approximately 867 sqm.
“This impressive commercial building comes with 11 allocated car spaces,” he said.
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j.ballantyne1990-6AQqhLzZaK

Oakleigh showroom/office sold at auction for $1.7 million

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A well-known building in Melbourne’s Pascoe Vale South previously occupied by the Commonwealth Bank of Australia for many years has recently sold for $1.43 million to an owner occupier.
The corner property at 339 Bell Street, Pascoe Vale South is in a prime location and comprises a land allotment of 355 square metres and a two storey building of 330 square metres. 
At the sale price, it represents a building rate of $4,333.33 per square metre.
Other key attributes include open plan layout premises, laneway access and trams stop at the door step.
The property was on the market for more than 900 days, according to CoreLogic RP Data.
Anthony Carbone and Bradley Ellul of CVA were the selling agents.
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prateek24-ezbwHMbNAk

Owner-occupier buys office building in Melbourne's north for $1.43 million

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Centuria Property Funds announced it has sold its commercial office tower in Brisbane’s Spring Hill for $38.7 million to Sentinel Property Group.
The <a href="https://www.realcommercial.com.au/property-offices-qld-brisbane+city-502102890" target="_blank">200 Creek Street</a> A-grade building has 10 stories and is a prominent office tower in the northern precinct of the CBD. It had been expected to fetch around $40 million.
The sale was managed by Peter Court and Mike Walsh from CBRE and Seb Turnbull and Luke Billiau at JLL.
Jason Huljich, CEO of Unlisted Property at Centuria, said, “We purchased the property in 2011, and since then we have carried out a series of upgrades and refurbishments designed to make the building more appealing to tenants. As a result, the property was taken to market with an occupancy rate of over 95%, with a weighted average lease expiry of almost four years, which made it particularly attractive to buyers.” 
It has nearly 7,603 sqm of net lettable area spread over three ground floor tenancies and nine upper levels of office accommodation. 
The property is close to the Central train station and just outside the Golden Triangle.
Huljich added that the tower was well-located from a potential re-development perspective, as a result of the planning provisions included within Brisbane City Plan 2014 and the proposed Draft Spring Hill Neighbourhood Plan.
He concluded by saying that he foresees good opportunities for commercial property investors in 2017. 
“Looking forward into 2017, we are confident there will be some good opportunities in the major metropolitan markets - in particular Sydney and Melbourne, although we are also looking carefully at our options in Brisbane and Canberra. 
“Our investment strategy has always been primarily asset-driven, which means we are open to all markets and properties where we see the potential to buy well, add value and achieve strong long term returns for our investors,” said Huljich. 
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jonathanchancellor-7SQnKwU6yx

Centuria divests from office tower in Brisbane CBD for $38.7 million

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An Enmore office/retail building in Sydney's inner west has fetched $3,810,000 at recent auction.
The freehold corner property at <a href="https://www.realcommercial.com.au/property-land+development-nsw-enmore-502152678" target="_blank">164-166 Enmore Road</a> is adjacent to Newtown's "Eat Street".
The description said it would be suited to developers or investors and buyers of the property would join the likes of Merivale, Stanbuli, Cow and Moon and several other operators investing in Enmore Road.
The property's floor area is 349 square metres. The zoning is B2 Local centre.
The selling agents were Stefan Jones and Steffan Ippolito of Oxford Agency.
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Enmore office building fetches $3.81 million at auction

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A modern warehouse/office investment opportunity in the Knox Gateway Business Park in Melbourne’s south-east has been sold by Ray White Commercial Oakleigh.
The property at 13/1488 Ferntree Gully Road, Knoxfield was sold for $638,000 to a local investor at a yield of 5.6%.
The property which offered a net lettable area of approximately 340 square metres, comprised a building area of 225 square metres and 115 square metres of upstairs mezzanine.
It is currently returning rental income of $35,000 per annum.
The established tenant is on a long-term lease with a 3.0% annual rent review.
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Modern warehouse/office at Knoxfield sold for $638,000

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An office in the Melbourne CBD is for sale.
The office at 412 Queen Street has light from three sides.
The 343 square metre space offers a vacant position with a fully self-contained office, including comprehensive fit-out, bathrooms, kitchen, reception area, direct street access, balcony and outdoor area with potential future residential conversion.
<a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502152814" target="_blank">The property</a> has been marketed as suitable for SMSF purchase.
It has three secure basement car spaces.
Expressions of interest close November 24 through CBRE.
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Melbourne CBD office for sale on Queen Street

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An industrial warehouse/office at Clayton South in Melbourne’s south east has been sold by Ray White Commercial Oakleigh.
The vacant property at 196/248-266 Osborne Avenue, Clayton South, was sold for $345,000 to a local owner-occupier by Paul Rizzo of Ray White Commercial Oakleigh on behalf of a local owner.
Mr Rizzo said the property which offered a net lettable area of approximately 252 sqm was sold 24 hours after it was passed in at auction.
“We had a good response to the marketing campaign and more than 15 people at the onsite auction despite miserable weather,” he said.
“We had two bidders but the property was passed in.
"We reached a deal with one of the bidders the day after the auction.”
The building includes approximately 100 sqm of office space on the first floor and there was parking onsite for three vehicles.
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Vacant warehouse/office at Clayton South sold for $345,000

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A whole floor tenanted strata office investment on Pitt Street, Sydney in Randstad House on the market through Ray White Commercial Sydney’s Christian Minards and Anthony Harris.
The property, Level 4/109 Pitt Street, Sydney, is 930 sqm and has nine separate strata lots with existing leases.
According to Christian Minards the property will return net rental income of $530,000 per annum with a weighted average lease expiry (WALE) of 3.16 years as of October 2016.
Ranstad House has 20 levels of offices, a public car park for 143 cars and a ground level retail arcadewith direct access to Wynyard’s trains and buses.
<img src="/images/2016/10/24/161024%20109%20Pitt%20St%20Sydney%20Interior.jpg" alt="">
Mr Minards said the Sydney CBD is currently expiring an unprecedented level of capital works being undertaken being a mix of NSW Government and private enterprise investment.
“This is evident with the resumption of numerous office buildings for the Sydney Metro rail, light rail from Circular Quay down George Street and the redevelopment of Wynyard,” he said.
“The private enterprise developments are also gathering momentum with Brookfield set to build their office development above Wynyard Station while AMP will be looking to get moving with their plans for Quay Quarter. Ultimately these projects when completed will truly enhance the Core precinct of the CBD.”
The property will go to auction at 10:30am (AEDT) on Tuesday, October 25, 2016, at the Mezzanine level, 50 Margaret Street, Sydney.
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Whole Sydney CBD office level for sale

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Investors splashed nearly $18 billion on Australian office property in the 12 months to June -- up almost 35 percent on the five-year average -- with foreign investors taking the lion’s share in CBDs, according to Savills Australia’s latest research.
Office sales in Australia have seen year-on-year growth since 2012 and the trend is likely to continue because of Australia’s safe haven status and high yields, says Savills. 
Sydney had the most transactions by value at $4.6 billion, or 47 percent of CBD office sales nationally, while Melbourne led on the number of deals at 28. 
The $17.9 billion total, comprising $9.8 billion worth of CBD office transactions and $8.1 billion worth of non-CBD transactions, was up $4.6 billion on the $13.3 billion, five year average, with the sale of 253 properties, also up on the five year average of 234.
<a href="/images/2016/07/29/CBD%20sales%20bar%20graph.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/29/CBD%20sales%20bar%20graph.png" alt="">
Savills national head of Research, Tony Crabb said “there is no reason to believe we won’t see the upward trend continue given the current global economic and political status quo”. 
He added that off-shore investors further stamped their footprint in the Australian office market with $8.6 billion of the total sales (48 percent) and 68 percent of CBD purchases - $6.6 billion – from 44 transactions. 
Foreign investors also figured prominently in non-CBD sales purchasing 25 percent of the stock sold for $1.9 billion.
<a href="/images/2016/07/29/CBD%20sales%20pie.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/29/CBD%20sales%20pie.jpg" alt="">
Crabb said market yields averaged 6.15 percent for CBD premium grade buildings, 6.9 percent for CBD A grade buildings, and 8.3 percent for CBD B grade office buildings while yields averaged 7.28 percent for CBD fringe A grade buildings and 8.3 percent for CBD fringe B grade buildings.
Savills director, Cross Border &amp; Capital Transactions, Ben Azar, said Australia would continue to see massive foreign investment. 
“In an extremely low interest rate environment with global capital starved for yield, Australia is seen as a transparent secure market with some of the highest yields in the world. Sydney and Melbourne, especially, are seen as global gateway cities offering very good lease terms and strong covenants.
“As long as Australia’s economic and political environment remains stable, any turbulence in the US, UK and Europe will mean more offshore capital will be attracted to Australia because of its safe haven status, transparent market practices and growth potential,’’ Azar said.
Further yield compression expected
He said with interest rates forecast to stay lower for longer and with a huge amount of capital chasing very few opportunities, he expected further yield compression and for bond-like property yields to remain very tight. 
“As long as interest rates and bond yields are low or dropping, the scope for further yield compression is real. The thirst for yield will drive money into property and simple demand and supply laws will mean yields must compress,’’ Azar said. 
He said while Sydney and Melbourne remained investor favourites, the cities like Brisbane, Adelaide and Perth are also gaining importance as investors chase yield.
Azar said rapidly improving leasing fundamentals, especially in Sydney, meant the income side was set for vast improvement allowing scope for more aggressive pricing from vendors and potentially driving further investment demand.
 
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Australian office sales hit $18 billion in year to June; offshore buyers take 68 percent of CBD sales: Savills 

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Two development sites in Melbourne's Box Hill have been put up for sale through an expressions of interest campaign by Savills.
The adjoining landholdings at 826 and 830 Whitehorse Road are being offered individually or can be purchased together. The EOIs close on June 23.
Each property comprises a multi-level office building. 
The land area for 826 Whitehorse Road is 1,078 sqm, while 830 sits on 1,572 sqm.
Zoned Commercial 1, each property has an office building with car parking, and short-term holding income. Each office building suits ongoing occupancy and/or owner-occupation.
The site is within the 'Prospect Street Activity Precinct' and the 'Major Development Built Form Precinct' of the Box Hill Metropolitan Activity Centre, and planning advice from Urbis indicates an allowable development height of 30+ levels subject to council approval.
The listing agents are Clinton Baxtor, Nick Peden and Jesse Radisich of Savills.
 
 
 
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New apartments

New townhouses

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