Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Office Space

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<img src="https://counter.theconversation.edu.au/content/64734/count.gif" alt="The Conversation" width="1" height="1">
GUST OBSERVER
If we all work side by side in an open-plan office or “hot desk”, moving from place to place, it’s sure to increase collaboration!
It turns out that may be wrong. If you don’t have your own space, perhaps you are better off working remotely with your cat for company.
Our research found that in shared working spaces there were increases in “employee social liabilities”; distractions, uncooperativeness, distrust and negative relationships. More surprisingly, both co-worker friendships and perceptions of supervisor support actually worsened.
Although prior researchers have claimed shared work spaces can improve social support, communication and cooperation, our results indicated that co-worker friendships are of the lowest quality in hot-desking and open-plan arrangements, when compared to those with their own offices or who share offices with just one or two others.
They are significantly worse when compared to those who mainly work at home or on the road. It is possible that these shared offices may increase employees’ use of coping strategies such as withdrawal and create a less friendly environment in a team.
As part of our research we surveyed 1,000 working Australians. We asked them whether they shared their office space with others, what sort of co-worker friendships and supervisor support they had, in addition to any negative relationships (such as lack of cooperation or distrust).
Shared environments did not improve co-worker friendships and, in addition, were associated with perceptions of less supportive supervision. The finding may be because employees who receive either too much monitoring or only informal supervision, perceive their supervision to be of lower quality than those who have dedicated supervision meetings.
It could also be that, as employees become more irritated, suspicious and withdrawn in a shared workplace, their relationships with their supervisors and colleagues deteriorate.
Other research also supports the idea that the benefits associated with shared spaces are aren’t all they are cracked up to be. Instead, it showed that cooperation became less pleasant and information flow did not change in a shared office space.
This is not great news for employees in an age where shared space and hot-desking is increasing alongside the use of mobile technology like laptops, smartphones and tablets. This, together with the high cost of office space, has brought about a desire to use physical office space more flexibly.
So, if this trend towards shared space is not likely to be reversed, how do employees survive?
Surviving a shared office space
If you can have your own office, share with just one or two others, or work from home, these are the best situations for workers we studied. However, we’re not all that lucky.
One way to combat visual distractions from nearby co-workers can be to use panels, book shelves, or “green walls” of plants. Noise from the office can be cancelled out with headphones.
However, these interventions will depend on whether they are suited to your job, workplace or your fellow employees. One option can be to create a mix.
Researchers Pitt and Bennett describe a large office redesigned to include not only hot-desking, but also “touchdown areas” (free desks to allow quick access to information), “bookable offices” (rooms that can be booked in advance), “collaborative workspaces” (for group work, possibly with teleconferencing capabilities) and finally “break-out workspaces” (relaxed couches and low tables for spontaneous, informal collaborative work).
We are not suggesting workers should be afforded unlimited privacy and solitude. Some spontaneous interaction is needed for many types of activity-based work to succeed. Too much and the distractions will outweigh any potential collaborative benefits. Too little and the benefits are not evident.
Rachel Morrison is senior lecturer, Business School, Auckland University of Technology and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/rachel-morrison-296325" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Get out of my face! We're more antisocial in a shared office space

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Office space in Hellenic House, the Sydney CBD building that has been the centre of Greek culture for nearly six decades, is being offered for lease.
The property at 251 - 253 Elizabeth Street opposite Museum Station is being marketed by Ray White Commercial’s John Skufris on behalf of the Hellenic Club.
The leasing offer follows the Hellenic Club opening its new Beta bar and gallery at 238 - 240 Castlereagh Street.
“There are currently areas from 100 sqm to 200 sqm available including the building's top floor with original timber floors and never to be built out east-facing Hyde Park views,” said Skufris.
The six-storey Hellenic House building was officially opened on October 19, 1959, by the then NSW Premier JJ Cahill.
The Hellenic Club, which was first formed in 1924, promotes Greek culture and currently offers sponsorship, donations and assistance to a range of organisations and individuals.
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jonathanchancellor-7SQnKwU6yx

Office space in Sydney's Hellenic House up for lease

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An office space with the NSW government as anchor tenant in the Blue Mountains is up for sale through Raine &amp; Horne for $3.75 million plus GST.
The property at <a href="https://www.rhcommercial.com.au/properties/435-437-great-western-highway-springwood-2777-new-south-wales" target="_blank">435-437 Great Western Highway, Springwood, NSW 2777</a> earns a net income of $273,181, with the lessee paying all outgoings.
The building has a floor area of 1198 sqm and includes modern fitouts with lift. It comes with depreciation allowances. The zoning is B1.
<img src="/images/2016/08/12/raine2.jpg" alt="">
Positioned in a World Heritage location, it has good exposure to both directions of the Great Western Highway.
The listing agent is Keiran McGarity.
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Blue Mountains office leased to government up for sale via Raine & Horne

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The shifting of Melbourne's CBD closer toward Docklands continues apace, according to Cromwell Property Group, who have announced a new long term lease on Collins Street.
Open Universities Australia will move into <a href="https://www.cromwell.com.au/property-portfolio/victoria/226/700-collins-street" target="_blank">700 Collins Street</a> in January 2017 on an 8-year lease and will occupy 2,682 sqm.
Cromwell purchased the building in 2004, and the 100 percent occupancy rate was achieved after securing the building's two major tenants to long term lease agreements.
The Bureau of Meteorology has executed a new lease for a further 10 years of their 15,500 sqm space. 
Melbourne train operator Metro has consolidated its space in the building, taking another 2,500 sqm that will see it occupy over 10,000 sqm for the next decade.
The high demand for the area makes the 2004 investment a real success for Cromwell, said Damian Horton, Cromwell’s Head of Property.
“As Melbourne CBD is shifting further westward along Collins Street and closer to Docklands, Cromwell’s investment has proven to be forward thinking. We were among the first to invest in what is now called ‘mid-point’, a highly sought after area,” Mr Horton said. 
“It’s an investment true to our philosophy. We try to carefully evaluate the potential of each of our properties to see where the demand will be and 700 Collins Street is proof of the effectiveness of this approach. 
“It also validates our strategy to actively manage our assets to enhance their value, and make sure that our tenants want to stay, and in doing so, keeping the turnover as low as possible.” 
The A-Grade, 17-level office tower is located at the gateway to the Docklands Precinct at the western end of the Melbourne CBD.
The building, which was refurbished last year, offers 33,848 sqm of modern office space and retail areas, and a three-level carpark accommodating 304 cars.
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j.ballantyne1990-6AQqhLzZaK

Cromwell’s bet on changing Melbourne CBD proves successful

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The number of start-ups, freelancers and entrepreneurs are driving the co-working industry with a 750 percent increase in Melbourne over the past three years, according to a new report by Knight Frank.
Knight Frank researcher Kimberley Paterson found 152 co-working spaces across Melbourne totalling 58,880 sqm with 16 new spaces totaling 13,000 sqm opening in 2016 to date.
She said co-working spaces account for 0.8 percent of total office stock across Melbourne with nearly 90 percent occupying secondary grade space with secondary grade and under-utilized stock well suited for this industry from both a cost and fit-out perspective.  
 “The majority of coworking operators across Melbourne, notably in the City Fringe, are located in converted warehouses or factories including decommissioned knitting mills, framing factories, woolsheds and heritage listed buildings,” she said.  
"The City Fringe has the largest volume of space occupied totaling 20,205 sqm, combined with the highest number of operators at 64. with the CBD having the second largest volume of coworking space totaling 16,935 sqm with 32 operators. 
"Co-working spaces account for 0.4 percent of total CBD office stock of which 62% of spaces are located in B-grade and C-grade stock, with 12.5 percent occupying space in prime grade assets.
"The North/West precinct has the second highest number of coworking sites at 36, accounting for 24% of total spaces across Melbourne while there are 12 coworking spaces totaling 3,630 sqm in the Inner East."
The average rental cost for a permanent desk space with 24/7 access in the CBD is $535 per month while in the City Fringe it is $460 per month.   
The report noted the substantial growth in co-working has been underpinned by advancements in technology, generational and structural economic changes combined with an increase of freelancers and small businesses growing by 1,842 companies since 2014, accounting for 87 percent of all Melbourne businesses.  
"The average occupancy size of coworking space across Melbourne is 385 sqm with 84 operators occupying between the 100-500 sqm size cohort," she said.
"There are 15 spaces occupying more than 1,000 sqm, with the largest operator - Hub Melbourne, set to occupy 3,900 sqm in October 2016 at the Mail Exchange Building, 693 Bourke Street in the Melbourne CBD."
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Freelancers and the Melbourne work space future

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Wollongong, the economic centre of the Illawarra region, is transitioning from a manufacturing to a service-based economy, with healthcare, education and IT the core sectors at its heart, says a recent research report by Knight Frank.
According to Wollongong Insight: June 2016, population growth in the Wollongong local government area (LGA) is expected to total 23,575 people by 2031, while the Wollongong CBD is projected to experience jobs growth of 3,773 over the next 20 years. More than 70 per cent of these jobs are anticipated to be in white collar industries, equating to office demand of circa 54,280 sqm.
Knight Frank’s managing director, Illawarra, Ben Mostyn said, “Wollongong’s connectivity, resident population spillover from Sydney and a growing government tenant presence will ensure it remains the epicentre for economic activity in the Illawarra region.”
Home to 208,875 residents and 72,551 jobs, the Wollongong LGA accounts for 61 per cent of the region’s gross regional product - also supported by key infrastructure and education assets including Port Kembla and the University of Wollongong. 
“Wollongong plays a key role not only for the Illawarra region, but also for the broader southern and western regions of NSW.”  
Knight Frank’s director, Research &amp; Consulting, Paul Savitz, said Wollongong’s A-grade office vacancy rate measures 8.5 per cent, from 74,662 sqm of total A-grade stock, although vacancy will reduce by early 2017.
“While the office market has struggled in recent years from tenant relocations to newer premises and a lack of expansionary requirements from existing occupiers, there are positive signs,” he said. 
The State Emergency Services (SES) will relocate to the former ATO building in early 2017, and it will reduce the overall office vacancy rate as new supply remains constrained.
“This is expected to signify a period of modest rental growth. Elevated vacancy rates and subdued tenant demand prior to 2015 has meant that rental levels in Wollongong have remained stagnant in recent years,” said Savitz.
“Currently, A-grade gross face rents average $425 per sqm with a broad range of $390 to $460 per square metre, while gross face rents are considerably below that of major non-CBD Sydney office markets, currently discounted by up to 22 per cent.
“Looking ahead, some moderate upward pressure on rents is expected over the next 12-24 months; particularly for prime-grade assets,” said Savitz. 
Mostyn added that the local Wollongong economy was shifting from manufacturing to service-based industries; primarily healthcare, education and IT services, which is anticipated to equate to office demand of circa 54,280 square metres over the coming two decades.
“Highlighted by recent sales, investment demand for both office and industrial assets in Wollongong is strong, as investors are attracted to the high yield metrics on offer when compared to Sydney. Demand is expected to remain solid throughout 2016 and 2017,” said Mostyn.
“Investment will continue to be strong for functional assets, as the business outlook remains positive with local firms expecting trading activity to improve throughout 2016 – coupled with positive overflow demand from Sydney.” 
According to Mostyn, as competition for core assets nationally increased exponentially over the past 18 months, and as yields fell, purchasers have been increasingly moving up the risk curve. 
“This has resulted in demand spilling over into non-CBD and major metro markets, and Wollongong is beginning to benefit from this demand. Since January 2015, Wollongong office sales over $5 million have totaled $33.8 million. 
“The most recent significant sales transactions include the six-storey, fully-leased Australian Hydrographic Office Building in the Wollongong CBD. Tenanted by the Department of Defence until 2021, the property sold for $10 million plus. Another building at 8 Station Street also sold recently in April 2016 for $13.6 million at a net passing yield of 10.1 per cent.”
The sales are proof of the demand in the Wollongong market, said Mostyn.
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prateek24-ezbwHMbNAk

As Wollongong shifts to a service-based economy, 54,000 sqm of office space needed: Knight Frank

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Developer Mirvac Group [ASX:MGR] and joint owner AMP Capital have unveiled their landmark Sydney office building, 200 George Street.
The 37-storey ‘smart’ building will have EY as the anchor tenant and also be Mirvac’s new Sydney headquarters. It is to be known as ‘EY Centre’.
New South Wales Premier, Mike Baird, officially opened the building. The launch event was attended by Mirvac’s CEO and managing director, Susan Lloyd-Hurwitz and Carmel Hourigan, AMP Capital global head of property representing the joint owner of the site, AMP Capital Wholesale Office Fund. 
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The tower has a net lettable area of nearly 39,200 square metres of premium grade office space, with a world first high-performing closed cavity façade with timber blinds. It is set to be one of Australia’s most environmentally advanced and sustainable developments with a 6 Star ratings being targeted.
It is one of the first ‘smart’ office buildings in Australia, adjusting the internal environment according to the needs of the employees, said media release.
Mirvac’s headquarters will become one of Australia’s first WELL certified offices.
There are plans to fill the ground floor plane and surrounding laneways with food and beverage outlets, public art and leisure spaces.
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Lloyd-Hurwitz said Mirvac’s vision was to create a cutting edge workplace for leading organisations.  
“Showcasing adaptable workspaces, green credentials, state-of-the-art technology and iconic design from architects, Francis-Jones Morehen Thorp, the building is testament to the hard work and collaboration between Mirvac and our many partners who have been involved in this pioneering project,” said Lloyd-Hurwitz.
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Mirvac, AMP Capital's 'smart' building opens for business in Sydney CBD

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Accounting software maker MYOB's new office in Melbourne's Richmond is a far cry from the dilapidated warehouse from which it was shaped to reflect a futuristic workplace by design firm Futurespace.
While planning the makeover, the interior design and architecture agency asked MYOB's employees how they would like to work and what features they would like. With these insights, Futurespace set out to create a tech hub based on the principals of agile working, including inception rooms to foster innovation, plug and play technology, informal meeting spaces and a funky garage space for meetups and hackathons.  
The new office space in Richmond reinforces MYOB’s investment to local technology talent. The office houses more than 200 of its engineering and development employees.
“This is not your typical corporate office. The way we work is becoming more fragmented and the MYOB office is an embodiment of this," said Futurespace managing director Angela Ferguson. 
"We took the time to understand what MYOB’s employees wanted from the space plus how they worked and combined this with MYOB’s values of innovation, collaboration and high performance.” 
The location and fitout are both drawcards in a part of Melbourne that is fast becoming a technology and innovation hub.
“The space was designed to attract and retain talented team members, but it goes beyond that. It aligns the principals of lean and agile software development with the physical space,” said Ferguson.
As an instance, Ferguson said MYOB's employees asked for lots of walls to write on, which was not possible in an open warehouse with few walls. Futurespace overcame the challenge by introducing mobile scrum/Kanban walls that didn’t close in the space or block natural light.
Alla Keogh, MYOB head of People and Performance, said the idea was to create "an inspiring, contemporary, technology hub for our people to collaborate, innovate and interact that reflect our values, brand and unique culture".
"It is a place for our product development and user experience and design teams to be inspired to build world class software products for our 1.2 million clients,” said Keogh.  
The feedback from employees has been very positive too.
Design elements included in MYOB’s new office include:
The office includes a wellness/prayer room and a dedicated mothers’ room.
Garage inspired space – An area that performs a variety of functions, like meals, quick coffee meetings, games and down time, team meetings and a space for meetups and hackathons.
Inception rooms – Spaces that teams use to explore ideas, begin a new project and ‘create’. These rooms have flexible furniture along with digital and analogue tools. 
Platform spaces – Designed to occur throughout the workstation areas, they provide a relief for the workspaces and can be used for chance meetings, quiet work, small team meetings, brainstorming and relaxation/rejuvenation. 
Tiered bleacher style seating area – This can be for large ‘all staff’ meetings and has a video link to other MYOB offices. This can also be used for individual quiet work, informal meetings and other small to large gatherings.
Booth seating – Essentially informal meeting rooms.    
Plug and play technology – This means the connection with other MYOB teams in different locations is seamless. The technology is intuitive and easy to use.
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Futurespace designs new futurist MYOB office in Melbourne's Richmond

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Demand for strata office property in the Melbourne CBD has grown in the first quarter of the year, as evident from a recent sale for $1.75 million and another lined up, according to Colliers International.
A 320 sqm whole floor at Level 8, 21 Victoria Street was bought by a private investor for $1.75 million. The sale, through Colliers, represented a yield of 5.62%.
Colliers International executive for Melbourne City Sales, Chris Ling, said the first quarter of 2016 had seen significant demand for CBD strata floors, including both investments and vacant floors.
Another office suite, spread over 360 sqm on the mezzanine level of 58 Franklin Street, is due to hit the market in coming weeks.
Colliers International expects the whole floor, close to Melbourne’s core retail and university precinct, to attract interest for both commercial use and potential residential conversion.
“Our Melbourne City sales team is currently seeing an unprecedented surge in demand for CBD strata office properties in the CBD,” Ling said. “This demand is powered by record low interest rates, a low Australian dollar and instability in offshore markets.
“In addition, given the current timing in the calendar year, business owners and operators are looking to secure new office space to set themselves up for the rest of the year. CBD vendors, meanwhile, are piggy backing off the momentum seen throughout 2015 in order to capitalise on the current environment.”
The property on Victoria Street saw strong competition between local and offshore buyers and sold prior to the close of the EOI campaign, Ling said. 
In 2015, Colliers International recorded more than $35 million in strata office sales in the CBD, with an average sale price of $1.95 million and an average size of 367 sqm.
According to the latest Colliers International CBD Office Research &amp; Forecast Report, Melbourne’s CBD market continued to go from strength to strength, with high levels of net absorption and a corresponding low vacancy rate. The vacancy rate for the Melbourne CBD dropped to 7.7% in Q1 of 2016, dropping to as low as 5.1% in the north eastern pocket.
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Victoria St office fetches $1.75 million as strata office demand rises in Melbourne

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Canberra's Franklin’s recently saw sales of eight mixed-use commercial suites at 227 Flemington Road, minutes from the CBD.
The sale of the ground floor commercial spaces at the Aamira development were brokered through CBRE’s Mark Nicholls and Patrick Sammon on behalf of developer Taofei (Australia) International Pty Ltd.
The units, between 129sqm and 190sqm, sold at premium rates, said Nicholls, attributing it to the strong commercial demand for sites in the Franklin area.
“The majority of purchasers were owner-occupiers, however, a couple of units were purchased by investors. This demonstrates the increasing confidence buyers have in the long term investment potential of the Canberra commercial market, especially those situated on the proposed Capital Metro route.”
The units were offered to the market individually or combined, catering for a variety of commercial office, restaurant and retail businesses, added Sammon.
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