<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

[smartcode_project:default project_id=140747 project_image_fid=367540]

The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Joel Robinson

Smith by Valli delivers a refined collection of luxury residences to Melbourne’s inner north

<a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;

Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.

Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=365684]

Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;

This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;

“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=365687]

Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;

Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.

"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.

At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.

[smartcode_project:default project_id=509 project_image_fid=365689]

The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

[smartcode_project_cta:default project_id=509]

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.

The sale equates to around $37,500 per sqm.

The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.

Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.

When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.

[smartcode_project:default project_id=146358 project_image_fid=323052]

The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.

Mould said the design intent was to balance that outlook with a sense of retreat.

“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”

The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.

[smartcode_project_cta:default project_id=146358]

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.

Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.

"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”

A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.

[smartcode_project:default project_id=110588 project_image_fid=5360]

Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;

Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;

The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;

The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;

Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" />

Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;

Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;

The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.

“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."

Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

Office Vacancy

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Office vacancy rates in the Adelaide CBD decreased from 14.7% to 14.2%, led by reductions in both the core and fringe sectors of the Adelaide market, according to the latest report from Herron Todd White.
The valuation firm found, Premium and A grade vacancy has been recorded at 2.6% and 14.3% respectively.
While that 2.6% premium grade vacancy figure seems very low, there is a very limited amount of premium space on offer in the Adelaide CBD so that should be taken into account.
These vacancy figures support the nation-wide push for more efficient and more sustainable office spaces as climate change discussions continue to dominate the political landscape.
As a result of the reducing vacancy rates, office property yields have remained solid, with A grade space in the Adelaide market recording yields of 6% to 8%.
The report authors said, "in comparison, Sydney and Melbourne A grade office properties are fetching 4.5% to 5.5%, however the eastern states are recording higher levels of rental growth compared to the Adelaide market."
"Gross face rents for prime space in the Adelaide office market are currently around $550 per square metre while A grade space is fetching $370 per square metre.
"The latest figures from the PCA have analysts predicting 2% to 2.5% growth for premium space in Adelaide over the next few years. In addition, the current incentive levels for premium and A grade office spaces are expected to decline over the next two years to a level around the 25% to 30% mark."
Sales are down from the record levels set in 2018.
There are however some major offerings currently on the market, notably 25 Grenfell Street (pictured in title), which was listed for sale just two years after being purchased by Credit Suisse for $125 million.
Furthermore, there are some significant developments that will increase the supply side of the office market throughout the second half of 2019.
One such development is GPO Tower, currently under development it will add 24,500 square metres of space to the core market, located at 2-10 Franklin Street.
Upon the project’s completion late this year, major tenant BHP will occupy 40% of the building and the global mining giant’s name will illuminate the Adelaide skyline as they have secured the naming rights of the new office tower as part of the lease agreement.
The BHP lease now takes the committed net lettable area of the building to roughly 90%, as the South Australian Attorney General’s department has pre-committed to a lease of 50%.
The pre-commitment levels mean that although the building is yet to be completed, there will only be roughly 10% or 2,450 square metres of lettable space available when the office building officially opens late this year.
However further additions by way of new development in the Adelaide market will be scarce.
The Festival Plaza development at Station Road, which encompasses over 43,000 square metres of lettable area, is not predicted to reach completion until 2021. Plus 73-85 Pirie Street, the old Planet Nightclub site that has lay dormant since 2004, has only now been granted
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j.ballantyne1990-6AQqhLzZaK

Office vacancy rates down in Adelaide: HTW Commercial

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Melbourne CBD’s office market is on an upswing, with vacancy rate at its lowest in five years, but a pause is likely before the second leg kicks in at the turn of the decade, according to BIS Oxford Economics.
The Victorian capital’s office market posted impressive results through 2016. The CBD vacancy rate fell by 140 bps to 6.4%—its lowest level since 2012—net effective rents increased by 14% and capital values surged almost 20% higher. 
The positive momentum is continuing this year and the trend is far from over, says the forecaster. However, it won’t be all smooth sailing and a looming slowdown in demand lies ahead coinciding with a spike in new supply, it said.
A similar trend was witnessed in the <a href="/expert-insights/investing/melbourne-city-fringe-office-vacancy-rate-declines-colliers">city fringe market</a> as well, with vacancy rate dropping to 3.47 percent in March from 4.96 percent in September 2016, according to a separate report by Colliers International.
“This is the lowest vacancy rate that Colliers International has ever recorded for the City Fringe market, and is the outcome of strong demand and very low levels of supply," said the Colliers report.
Last year’s strong run in the CBD market meant average prime net effective rents rose nearly 20% above post-GFC lows, while aggressive yield compression pushed values a 90% higher, said BIS Oxford Economics. That puts average prime values around 50% above pre- GFC peak levels. 
After a high like this, one might expect a muted outlook for the market. But BIS Oxford Economics expects further gains of more than 60% in prime net effective rents and almost 50% growth in values to a peak in the early 2020s. 
However, senior project manager and report author Maria Lee has a caveat.
“It won’t be smooth sailing through the upswing. In particular, Victoria faces several headwinds that are likely to cause economic growth to slow over the next few years, with a negative impact on the demand for office space,” Lee said. 
This slowdown in demand is likely to coincide with a substantial quantum of new supply coming on to the market. 
Six major towers are currently under construction in the CBD, with work on two more likely to begin shortly. These will be completed from the second half of 2018. 
Although substantially pre-committed, there is an as-yet uncommitted component which will result in considerable back-fill space becoming available, according to the forecaster.
The impact of these coming changes to the demand/supply balance would be more like a pause in the upswing rather than an end to the trend. 
“Melbourne retains a key affordability advantage over its northern neighbour and competitor, Sydney. This will help to insulate Melbourne somewhat from the negative impacts of the closure of the Hazelwood power station, the end of car manufacturing and a coming downturn in residential construction. For a national company looking to expand its back-office functions, the scales are tipped in Melbourne’s favour,” Lee said. 
The rental differential with Sydney is only set to increase over the next few years, according to BIS Oxford Economics, with Sydney’s CBD rents set to surge as the vacancy rate gets extremely tight for an extended period. 
Once Victoria has emerged from the challenges of the next few years, BIS Oxford Economics expects that Melbourne’s inherent advantages of plenty of skilled labour, a cheap and plentiful supply of land for residential, industrial and commercial building, and lower rents will come to the fore and support the second leg of the upswing. 
“Any near-term weakness should not discourage market participants from the longer term prize” concludes Lee. 
 
 
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jonathanchancellor-7SQnKwU6yx

Melbourne’s office market vacancy lowest since 2012, but slowdown likely: BIS Oxford Economics

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The number of full office floors (Premium and A Grade) vacant across Australia’s capital city office markets has dropped over the last 12 months in line with slightly better overall total vacancy figures, according to recent research by Savills Australia.
The overall figures, however, masked a mixed bag of results with Sydney and Melbourne showing the biggest falls and Brisbane with a total office vacancy of 16.9 percent – its worst result in more than 25 years – paradoxically reporting an 11 percent fall in the number of full floors available, while Perth and Adelaide followed the script with rises.
Savills’ Prime Full Floor Availability Report assesses each Premium and A grade building in each city on a floor-by-floor basis highlighting which floors are available for lease, now and in the near future, in each building including those under construction and refurbishment. 
According to Savills national head of Research Tony Crabb, the figures further confirm the recovery in Sydney and Melbourne’s office markets whilst underlining the negative impact the end of the mining investment boom continues to have on the Perth market.
He said Brisbane was at first glance an anomaly, but evidence of an uptick in leasing suggested the figures could be a bellwether for a more positive market there.
Office demand had bounced back over the last 12 months with 117,437 square metres of leasing activity (&gt; 500 square metres) in the Brisbane CBD,  up 27 percent on the 12 months prior, said state director-Office Leasing in Brisbane, John McDonald.
“There’s no doubt that the CBD market has turned the corner and the full floor figures reflect that with 32,000 square metres of prime space being filled this year alone,” said McDonald.
He said competitive rents and incentive packages attracting fringe and suburban tenants to the CBD and state government leases had been key drivers with childcare, health, and education and incubator businesses prominent.
<a href="/images/2016/09/15/Screen%20Shot%202016-09-15%20at%2010.29.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/15/Screen%20Shot%202016-09-15%20at%2010.29.37%20AM.png" alt="">
 
Sydney trending well
The 14 per cent decrease to 260 full floors available in Sydney had been expected given the much stronger demand over the last 18 months, said Crabb. In the last 12 months, 38 full floors had either been filled, partially occupied or committed to and it was unlikely the market would see a dramatic fall given backfill space and new developments would add to the numbers.
He said that while the downward trend was positive, it was a timely reminder for larger tenants with looming lease expiries, particularly in Sydney and Melbourne.
“What the figures show for tenants is that their options are diminishing. It’s not panic stations just yet but the trend is downward and that means that tenants with lease expiries on the horizon need to do their homework to identify just what is going to be available in their preferred location,’’ he said.
Crabb said in Melbourne the general consensus was that with leasing up 17 percent on last year a recovery was well under way and that Victoria’s strong economic growth, underpinned by rapidly increasing population, would see that trend continue.
The report found 831 full floors were vacant across the Adelaide, Brisbane, Melbourne, Perth and Sydney CBD office markets in August 2016, down from the 883 floors vacant in August 2015.  
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Full office floor vacancy in capital cities trending down: Savills Australia

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The office vacancy rate on Melbourne’s most famous boulevard, St Kilda Road, has fallen to 7.3 percent, its lowest level in eight years, according to property firm Savills’ latest Fringe Office market research.
The fall in vacancy from 10.8 per cent in July 2013 drove rental growth of 23 percent over the last three years including 12 percent in the last 12 months. The market is so tight that vacant is 38 percent below the average vacancy over the last 25 years. 
Monica Mondkar, manager-Research &amp; Consultancy, said, “Net face rents in July 2013 ranged between $270 and $325, and in July 2016 between $340 and $400. Based on an average rent, that is a 23 percent rise over the last three years.”
Vacancy peaked at 22.4 percent in July 1992 following the Savings and Loan Crisis but has been on a rollercoaster ride ever since.
However, according to Savills associate director-Office Leasing, Kizzy Okoukoni, the latest figure has more to do with the iconic boulevard’s residential makeover than an economic recovery. 
“Ongoing demand for CBD fringe office space is of course a key contributing factor in the tighter vacancy level but the continual withdrawal of stock for other uses, predominantly residential, has also been a significant determinant,’’ Okoukoni said.
Despite residential conversions St Kilda Road is still Australia’s fourth largest non-CBD office market with 686,175 square metres of office space. It has lost less than 1.2 percent of office space to residential use per year over the last 10 years, however, this has accelerated in recent years.
"It’s only a matter of time before the commercial/residential property profile balance in St Kilda Road, which currently has a two thirds office/one third residential mix, shifts permanently to residential.
"For some landlords maintaining an older office building with any vacancy, on top of exorbitant land taxes, is not a long term option.
"There is no way this can stack up when a residential redevelopment can mean such a massive increase in return on the property,’’ Okoukoni said.
Office buildings likely to withstand this change would be the more modern ones with long-term tenants, he added.
But despite the incentive to convert to residential use, office property would always maintain a significant presence on St Kilda Road, he said.
“Residents need services, they need supermarkets, they need childcare, they need restaurants, cafes, accountants, financial planners, gymnasiums, etcetera.”
<a href="/images/2016/08/29/charty.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/08/29/charty.png" alt="">
The total investment sales on St Kilda Road were $246 million with the most notable being AMP Capital’s acquisition of 636 St Kilda Road for $87.5 million and Bayley Stuart Capital’s purchase of 616 St Kilda Road for $40 million. Domestic funds and syndicates accounted for 52 percent of the sales by value.
Mondkar said yields on the boulevard over the 12 months had firmed by 25 basis points and now range from 6.75 to 7 percent. In comparison, in September 2013 yields ranged from 8 to 8.75 percent. 
 
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