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."

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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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An office building in Sydney's Mascot has been listed for sale and is said to be the first on-market campaign for a South Sydney office property in close to three years.
The five-level property at 40 Ricketty Street has a net lettable area of 5,185 sqm.
The top floor features a caretaker’s unit and cafeteria area, which could be converted to additional office area subject to the relevant planning approvals. The balance of the rooftop is an open air terrace area.
Besides 25 car spaces, the building has a dedicated substation with 800 amps of power.
The listing agents are Keegan Ridings and Peter Vines of CBRE.
“This is a rare opportunity to acquire a freehold commercial asset in the tightly held suburb of Mascot,” Ridings said.
The building is close to the new Mascot Town Centre and train station. 
Expressions of interest close on June 14.
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jonathanchancellor-7SQnKwU6yx

Office building on the market in Sydney's Mascot

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Office sales greater than $1 million in the West Perth market totalled $87 million for the 12 months to March 2016 according to Savills, up from the $54 million total for the year to March 2015.
This is up from the total of $54 million for the year to March 2014 and up on the five year average of $59 million. 
According to the West Perth office market briefing the highest value sale in the last 12 months was the sale of 53 Ord Street to Singaporean REIT, Mapletree Investments, for $59 million in August 2015.
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mick.cee-iDmgDDAmu8

West Perth office sales hit $87 million year to March: Savills 

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An entire top floor of offices and a ground floor cafe in a commercial building in CBD Robina, the Gold Coast, have been put on the market by developer the Robina Group.
The top floor space totals 1,510 sqm, including 1,203 sqm leased to the state government until December 2017,  and 245 sqm recently leased to an education provider on a three-year lease, with further options.
The 63 sqm street level cafe, including a seating area, is operated by Liquid Espresso on a five-year lease, with a five-year option in place.
The Eastside commercial building has signage rights, car park and basement storage space.
Knight Frank's Tania Moore and Mark Witheriff are marketing the property through an offers to purchase campaign, closing on May 19. 
The combined net income from the property is $689,468 per annum.
"The top floor space has been held by The Robina Group as a premium income generating offering, however with the current increased confidence in the commercial market the developer has decided the timing is right to release this final opportunity," said Moore. 
"Eastside’s 32 suites are fully occupied and the building has always performed well due to its proximity to Robina Town Centre and access to the M1 Motorway and public transport."
Eastside is located opposite The Rocket, which sold in 2015 for $70 million - the highest commercial sale price in Gold Coast City since 2007.
CBDRobina boasts an office vacancy rate of 5.6%, substantially lower than Gold Coast City as a whole and all Australian Capital City CBD markets, said the media release.
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Leased office suites and cafe in Gold Coast's Robina up for sale 

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Office transactions in Sydney's Parramatta district came in at around $243 million in the 12 months to December 2015 according to the February office market briefing from Savills, down 63 percent from the previous year.
Savilss noted transactions in 2014 to December totalled $665 million, noting current figures are down on the five year average of $310 million.
The briefing said investment demand for A Grade stock in Parramatta remains strong, though limited opportunities currently exist for investors. 
"The increase in investment activity over the past four years has been largely due to the transaction of many of Parramatta’s prime buildings, as vendors seek to take advantage of sharpening yields and improved investment demand from local and foreign investors," it said.
"However, the 'Private Investor' purchaser category was the most active in the investment market for the 12 months to December 2015, purchasing 36 percent of the stock sold (or $86 million worth of office transactions). Similarly the 'Private Investor' category had the most transactions."
 
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Parramatta office buys down 63 percent in 2015: Savills

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Property tycoon Harry Stamoulis has bought the One Collins Street tower complex at the top of Collins Street, Melbourne, for $125 million.
It was bought from fellow BRW rich lister Robert Magid and his sister, Nora Goodridge.
The complex comes with 17-storey modern tower overlooking Treasury Gardens and an 1870s heritage residence that served as Australia's first war cabinet room in 1914.
The Australian Financial Review says it was struck on a tight 5.25 per cent yield and at a high building rate of more than $9000 a square metre for the fully leased A-grade office complex.
The Australian says it was sold by Knight Frank.
Rabobank, Mckinsey &amp; Co, Grant Samuel and IBISWorld are tenants at One Collins Street. 
The Magid family acquired it for $43.1 million in 1997.
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jchancellor-FAypfDUnLy

Magid's sell One Collins Street to Stamoulis

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A ground floor office showroom in Sydney’s Rosebery has sold at $395,000.
<a href="https://www.realcommercial.com.au/property-offices-nsw-rosebery-501768298" target="_blank">Suite 102, 30-40 Harcourt Parade</a> has a floor area of 90 square metre.
Housed in a prominent commercial building, it has direct street access to Mentmore Avenue. One of the features is an open plan with high ceilings and plenty of natural light.
The property is leased to BCA on a two-year lease till 2016 with the option to extend for one year.
It earns a gross income of nearly $33,840 per annum. 
The deal was through James Reeves of LJ Hooker Commercial.
The property previously traded for $320,000 in 2014.
There were nine sales in the block last year, the most expensive was sold in January for $610,000. 
 
 
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Office showroom in Sydney's Rosebery sells for a shade under $400,000

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With 4.96 million square metres of total stock, Sydney CBD is the largest office market in Australia, according to Savills’ latest office research.
It is also the most sought after; a fact highlighted by strong prime property rents and yields.
Savills recorded approximately $5.66 billion of office transactions, in the 12 months to December 2015, in the Sydney CBD.
This is up 19 percent from $4.78 billion in the previous 12 months, and up on the five year average of $3.25 billion.
During the same period 29 properties were sold, down on the previous 12 months (47), and down on the five year average of 31.
Sydney experienced its strongest year of office investment in over a decade in 2015.
Among the prominent ones was the sale of 60 Margaret Street (50%) to an offshore equity buyer for $279.5 million, reflecting a circa 6.5% passing yield.
The building comprises a 38-level hexagonal office block including three levels of car parking, three floors of retail space known as the Metcentre, 30 floors of office space and two plant levels. It has a total net lettable area 47,047 sqm.
In July 2015, Investa Property Trust concluded the sale of nine assests to China Investments Corporation (CIC).
The portfolio generally comprised Premium or A Grade office buildings.
Six of the assets are located in the Sydney CBD.
At a reported $2.455 billion ($1.825 billion in the Sydney CBD), the sale represents an approximate 25% increase on the understood December 2014 book values and a reported portfolio yield of 5%.
This arguably reset the benchmark for market yields and IRRs for good quality CBD assets by 25 to 50 basis points tighter over the quarter.
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Sydney CBD office transactions up 19 percent on year: Savills

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GUEST OBSERVER
Investors splashed out a record $29 billion to purchase commercial property (more than $2m) – office, industrial and retail - in the 12 months to December nationally, up 20 percent on the last two years with foreign investors taking a 38 percent share.
The total, comprising more than $17.2 billion worth of office transactions, $4.8 billion worth of industrial transactions and $7 billion worth of retail property transactions, is an extraordinary 32 percent up on the five year average of $22 billion following a similar rise on the $18 billion average in the previous year.
It was more likely than not that significant levels of investment would continue with foreign investment, particularly from China, and institutions, the key players.
What we have seen over the last three years has been an extraordinary investment market in terms of sales by number and value.
Local trusts and funds along with foreign investors have dominated the markets, however in 2015 domestic institutions, recovering from the GFC and replacing private investors as competitive buyers once again, have suddenly found themselves outbid.
While institutional investors were the second largest player with 35 per cent of purchasers, their share of the market had fallen from 48 percent (Funds 31 percent, Trusts 17 percent) in 2014 to 35 percent (Funds 21 percent, Trusts 14 percent) in 2015, while the foreign investor take at 38 percent was more than 70 percent up on its 22 percent share in 2014.
Weakness in the currency, high relative yields and economic growth (however below trend) had been the key drivers while the large amount of off-shore capital seeking  Australian property had encouraged many domestic investors to dispose of property, reweight portfolios and change exposures.
This led to a record year of approximately $29 billion of turnover in commercial property. Conversely, many market fundamentals demonstrated the two-tone nature of the Australian economy – some indicators deteriorated in Perth and Brisbane, many showed substantial improvement in Melbourne and Sydney. Brisbane appeared to have reached a base whilst Melbourne and Sydney continue to improve.
The capital markets had exhibited greater degrees of volatility throughout the year and had finished the year largely unchanged with the ASX200 returning around 1 per cent, the Australian dollar down over 10% against the US dollar and 10 year bonds yielding approximately 2.8 percent.
While property yields have firmed across the board returns remain significantly higher with unlisted property returning up to 10 percent and AREITS returning 13 percent over the last five years. There is no doubt this has also had an impact on investment decisions.
He said the firming of investment yields had yet to fully run its course.
In some markets fundamentals are improving rapidly. We believe this will lead to further tightening in yields as investment capital starts to price in expectations of future NOI (net operating income) growth. This part of the yield cycle is just beginning.
At a glance:
Office sales - $17.2 billion in sales; previous year $16.7 billion; five year average $12.4 billion. 221 properties sold, 326 in 2014.  Foreign investors purchased 45 percent of the stock ($7.6 billion).
Industrial sales - $4.8 billion in sales; previous year $5.55 billion; five year average $3.8 billion;  221 properties sold, 277 in previous year. Foreign investors purchased 36 percent:
Retail sales - $7 billion in sales ; previous year $7.2 billion; five year average $5,8 billion. 197 properties were sold, down from the previous year of 221. Foreign investors purchased 26 percent.
Tony Crabb is Savills Australia’s national head of research and can be contacted <a href="https://www.savills.com.au/blog/author/109174/Tony" target="_blank">here</a>. 
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Foreigners take 38% of record commercial property sales: Tony Crabb

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A 12-level Perth CBD office building near the Elizabeth Quay foreshore development is up for sale through an expressions of interest closing on 17 September.
The property, <a href="https://www.realcommercial.com.au/property-offices-wa-perth-501670729" target="_blank">12-14 The Esplanade</a>, is being offered through Savills Perth agents Chas Moore and Paul Craig, has above ground parking for 138 vehicles, a ground floor tenancy and seven levels of offices - a total lettable area of 7,957sqm. 
<img src="/images/2015/08/19/Screen%20Shot%202015-08-19%20at%2010.49.54%20AM.png" alt="">
The building is 93% leased to blue-chip corporate tenants with a Weighted Average Lease Expiry (WALE) of 2.32 years (based on finalisation of a new direct lease to DBP) and boasts a 4.5 Star NABERS rating.
Savills marketing agent Chas Moore said this is one of only a handful of established properties on the doorstep of Elizabeth Quay. 
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CBD office up for grabs on Perth's Elizabeth Quay

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The sovereign wealth fund China Investment Corporation (CIC) has secured Investa Property Group's portfolio of nine office towers.
It came after a knockout bid of more than $2.45 billion.
The Australian Financial Review described it as the biggest direct real estate transaction in Australian history.
It attracted more than 20 bids, nearly half of those came from Asia, including from China's biggest privately owned business, Fosun International Ltd. 
Bankers running the sale, Morgan Stanley and UBS AG secured bids from the United States and South Africa.
CIC and its partner LaSalle Investment Management, had been tipped as the consortium to win the battle for Investa.
China’s largest state investment fund bought 10 shopping centres in France and Belgium this month for about €1.3 billion, one of its biggest acquisitions in Europe along with affiliate AEW Europe.
Following the announcement of CIC’s acquisition of the Investa property portfolio, Colliers International have complied the charts below on Chinese investment in Australian commercial property.
<a href="/images/2015/07/28/Screen%20Shot%202015-07-28%20at%2010.51.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/28/Screen%20Shot%202015-07-28%20at%2010.51.09%20AM.png" alt="" width="753" height="478">
 
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