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The Urban Developer’s latest Brisbane housing market insights reveal that the city’s property prices are now 11 per cent below the record high, which was set in June 2022.

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The Urban Developer’s latest Sydney housing market insights reveal the city’s home values have clawed back lost ground but still sit 11.2 per cent below their record high set in January 2022…

Melbourne house apartment market insights.jpg

The Urban Developer’s latest Melbourne housing market insights reveal that the median home value climbed to $755,871 in May 2023, which was a 0.9 per cent bump from the previous month.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Demand for office space outside of Sydney’s CBD has pushed vacancies to below 3 per cent, with Pyrmont experiencing 26 per cent rental growth as it styles itself as Sydney’s own Silicon-Valley.</p><p>The trend toward fringe office markets has been driven by above-trend population and employment growth, primarily in the information, media and technology sector. </p><p>The once-industrial, fringe office market attracting tech firms and edgy start-ups narrative is not new — Melbourne’s <a href="https://theurbandeveloper.com/articles/tech-centric-cremorne-the-most-talked-about-office-precincts-in-the-country">Cremorne</a> has also claimed the “Australia’s Silicon Valley” mantle, while Brisbane’s Fortitude Valley has <a href="https://theurbandeveloper.com/articles/fortitude-valley-to-welcome-state-of-the-art-ai-hub">consolidated</a> itself as Brisbane’s start-up capital.</p><p>Knight Frank associate research director Katy Dean says that growing demand from creative and knowledge-intensive industries on the back of widespread technological adoption has created a transformation in the office market from central to Everleigh. </p><p>Knight Frank’s latest Sydney city fringe office market report revealed that overall vacancy in the fringe office markets had compressed to well below the 4.1 per cent in the CBD.</p><p>“Pyrmont, Ultimo and Surry Hills have been central to this transformation, mainly due to their proximity to the CBD, and remain the largest office markets in the southern fringe,” Dean said. </p><p>Ultimo and Surry Hills had both recorded large annual rental growth numbers — at 18 per cent and 21 per cent respectively — while Pyrmont’s rents sit at between $750/sq m to $940/sq m. </p><p>“On a net effective basis, since 2016 rents have double in Surry Hills to $610 per square metre.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Related: <a href="https://theurbandeveloper.com/articles/pyrmont-to-rise-to-the-heights-of-sydney-cbd-images">Pyrmont to Rise to the Heights of Sydney CBD: Images</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Recent major sales activity: Sydney fringe office market</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Address</th><th>Price $</th><th>$/sq m NLA</th><th>Vendor</th><th>Buyer</th></tr></thead><tbody><tr><th>19 Foster Street, Surry Hills</th><th>$39.5m</th><th>$12,524</th><th>Security Invest. Aust</th><th>Marks Henderston</th></tr><tr><th>19-37 Glebe Street, Glebe</th><th>$43m</th><th>$12,286sq m</th><th>Private</th><th>Private</th></tr><tr><th>100 Broadway, Chippendale</th><th>$77.1m</th><th>$14,154sq m</th><th>Frasers/IIG</th><th>MTAA Super</th></tr><tr><th>111-117 Devonshire Street, Surry Hills</th><th>$21.5m</th><th>$10,312</th><th>Private</th><th>Private</th></tr><tr><th>19 Harris Street</th><th>$143m</th><th>$11,378sq m</th><th>Kuehne Real Estate </th><th>AEW Capital</th></tr><tr><th>38-42 Pirrama, Pyrmont</th><th>$150m</th><th>$9,192sq m</th><th>Aqualand</th><th>Google</th></tr><tr><th>29-43 Balfour Street, Chippendale</th><th>$30m</th><th>$12,000sq m</th><th>Private</th><th>Marks Henderson</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Tech giants commit</strong></h2><p>In February, Atlassian <a href="https://theurbandeveloper.com/articles/sydneys-silicon-valley-secures-software-giant-atlassian">signed up </a>as anchor tenant at Sydney’s new innovation and technology precinct, while Australian fintech company Quantium has committed to anchor Mirvac’s Locomotive workshops in South Everleigh. </p><p>Quantium will join CSIRO, the Seven Network and various technology start-ups in the area. </p><p>Mirvac was given approval in 2016 to develop the South Everleigh precinct — formerly known as the Australian Technology Park — given the mandate to bolster Sydney’s status as a global technology and innovation hub. </p><p>The ASX-listed developer <a href="https://theurbandeveloper.com/articles/mirvac-recieve-heritage-approval-for-australian-technology-park-workshops">secured</a> sensitive heritage approvals earlier this year to redevelop the century-old Locomotive Workshops in its bid to restyle them as a technology hub. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/fab9b8ec-4bcd-4a70-88d0-5af6b2f73ffc.png" width="2020"/></picture><div><span style="align-content:center;opacity:0.8">▲ Knight Frank research. Supplied.</span></div></div></div></div></div></div></div>

Demand for office space outside of Sydney’s CBD has pushed vacancies to below 3 per cent.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>After five years on the market Sydney property developer Terry Agnew has sold a large portion of Great Keppel Island to high net-worth investors from Singapore and Taiwan. </strong></p><p>A high-roller couple behind entity Wei Chao Pty has emerged as the buyer for 971-hectares of development approved land on Great Keppel Island, located at the southern end of the Great Barrier Reef. </p><p><em>The Urban Developer </em>understands the couple snapped up the substantial island property for a figure north of $60 million. </p><p>The couple are newcomers to Australian real estate, with the Great Barrier Reef purchase marking their first move to Australian shores. </p><p>The sale is unconditional subject to government approvals and is due to settle in early January.</p><p>Current development approvals for the island include a 250-room beachfront hotel, 300 luxury apartments, 285 luxury villas, 9,000sq m of retail shops and a 250-berth marina.</p><p>Approval has also been given for the airstrip to be extended from 800 metres to 1.5 kilometres which would allow greater visitor access and direct flights from Sydney, Brisbane and Cairns.  </p><p>A recent agreement with a cryptocurrency consortium for the island, as recently reported, did not proceed.</p><p>Related: <a href="https://theurbandeveloper.com/articles/mulpha-ihg-expand-partnership-with-heavenly-hayman-island-resort">Mulpha Signs Hotel Operator as Part of $100m Hayman Island Revamp</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/fae05b40-e542-4449-a654-7f2df7286923.png" width="2012"/></picture><div><span style="align-content:center;opacity:0.8">An artist&#x27;s impression of the island redevelopment.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The sale comes after Agnew was unable to secure government approval for a casino and secure a co-development partner for a $400 million resort on the island. </p><p>Knight Frank Rockhampton’s principal partner Pat O’Driscoll, along with Knight Frank&#x27;s Ben McGrath, Dominic Ong managed the deal along with JLL Hotels Tom Gibson on behalf of Agnew&#x27;s Tower Holdings.</p><p>O&#x27;Driscoll said the international marketing campaign attracted significant interest from around the world including America, China, Singapore, Australia, the United Arab Emirates and Europe. </p><p>“While an agreement has been reached, the sale process is yet to be finalised – we anticipate the sale will be completed within the first half of next year,” Driscoll said.</p><p>“It’s an exciting move forward for the island and Queensland’s tourism industry, with the development of Australia’s next tourism icon in sight now.”</p><p>The sale of Great Keppel Island is the fifth island to sell in the Great Barrier Reef in the past two years as private investment continues to pour into the region. </p><p>The other island sales include South Molle Island, Daydream Island, Wilson Island and Heron Island.</p></div></div></div></div></div>

Sydney property developer Terry Agnew has sold a large portion of Great Keppel Island to a Singapore Taiwan high net-worth investor. 

GIC’s purchase of a 25% stake in Lendlease International Towers
Sydney Trust $1 billion

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Large deals have played a greater role in driving activity in Australia&#x27;s commercial market, with current transaction volumes running slightly ahead of the record levels seen in 2017. </p><p>According to the latest research from Knight Frank, office property investment volumes totalled $14.3 billion at the end of September, compared to $12.7 billion for the same period last year.</p><p>Investment volumes for office deals of $200 million-plus have totalled $8.4 billion in Australia in 2019 to date, accounting for around 60 per cent of deals—a historically high share.</p><p>Investment activity for deals less than $200 million was more subdued, with transaction volumes totalling $5.9 billion over the nine months to September, compared with $7.9 billion for the same period in 2018 and $9.2 billion in 2017.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/28ef5d07-3125-4b9e-9bde-eba23e7a7aa5.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Capital markets insight into large deal activity. Image: Knight Frank </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Large deal activity was most pronounced in Sydney driven by a strong leasing market and limited office vacancy, combined with strong demand for new office developments.</p><p>Deals were bountiful despite an additional 63,000sq m due before the end of 2019 and over 131,000sq m entering the market in 2020.</p><p>Investment volumes for $200 million-plus deals in Sydney totalled $5.5 billion over the nine months to September, accounting for 66 per cent of the $8.4 billion total.</p><p>Large deals to date in 2019 are the third-highest this decade after 2012 and 2018, when they accounted for 79 per cent and 67 per cent of deals respectively over the whole year.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Notable deals in 2019 </strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub>• Blackstone’s acquisition of the Scentre Portfolio ($1.5 billion)<br>• GIC’s 25 per cent stake in Lendlease International Towers Sydney Trust ($1 billion)<br>• Dexus’ acquisition of the office component of the 80 Collins Street development ($947 million)<br>• Charter Hall’s purchase of 242 Exhibition Street ($830 million)<br>• Charter Hall’s 50 per cent stake in Chifley Tower ($900 million) and 201 Elizabeth Street ($630 million)<br>• Dexus’ purchase of a 50 per cent stake in the MLC Centre ($800 million)<br>• GPT’s acquisition of a 25 per cent stake in Darling Park Towers 1 and 2 ($531 million)<br>• Arrow and Starwood’s acquisition of Zenith Towers ($438 million)<br>• Investa’s purchase of a 50 per cent stake in 135 King Street ($340 million)</sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Sydney CBD vacancy rate hit 3.7 per cent in the six months to July 2019 due to withdrawal of stock, yet rose to 4.6 per cent over the previous quarter, up from 4.1 per cent in the previous quarter. </p><p>The uptick was due to backfill space becoming available through relocation activity into a new development.</p><p>Net absorption—the industry term for the overall take-up of space —was also negative for the first nine months of the year.</p><p>However, rental growth has started to normalise, more recently in response to a pick-up in office development activity and a positive outlook for new office supply.</p><p>“Some private and smaller investor groups have been impacted by a tightening of credit availability, and this has reduced liquidity for smaller and mid-sized deals over 2019,” Knight Frank chief economist Ben Burston said.</p><p>“If the economy recovers as anticipated in 2020, sustained capital growth and improving confidence are likely to spur a return to higher levels of liquidity in this size bracket.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8e41206b-72b7-4c0b-b9fd-acd28f948d6e.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Construction has begun on a $170 million project to redevelop the Harry Seidler designed MLC Centre in central Sydney.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Capital growth for office property assets has moderated from elevated levels, with strong tenant demand and a scarcity of supply, pushing investors to chase for high-quality opportunities.</p><p>“Lower interest rates are likely to drive further yield compression, prolonging the property price cycle.” </p><p>“This is driving demand, and recent large deals reflect a desire to rebalance portfolios ahead of this next phase.”</p><p>Outside Sydney, the increase in investment activity for larger deals has not been as marked but still been solid over the year, with transaction volumes currently running slightly ahead of the record levels seen in 2017.</p></div></div></div></div></div>

Large deals have played a greater role than normal in driving activity in Australia's commercial market.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>The flurry of Victorian shopping centres changing hands looks set to continue with the latest acquisition of Mornington Village.</strong></p><p>A syndicate of Chinese investors have spent $39.38m to secure the shopping centre located on the Mornington Peninsula.</p><p>The deal reflected a 5.26 per cent yield for the 8,000 square metre neighbourhood centre which is anchored by a Woolworths supermarket, an Aldi and 15 speciality shops.</p><p>The property was purchased in 2014 by an accounting firm for $25.8 million.</p><p>The deal was brokered by CBRE director Mark Wizel with Justin Dowers and Kevin Tong.</p><p>“Eighteen months ago yields for this retail asset class were heading into 6 to 6.5 per cent territory and the question was how low can they go? Well, they have now firmly settled on an average marginally above 5 per cent,’’ Wizel said.</p><p>“Victoria is out in front on this and that is, in no uncertain terms, due to population growth which has seen the state outpace all others.”</p><p>The deal follows <a href="https://theurbandeveloper.com/articles/woolworths-hadfield-and-mordialloc-plaza-sold-cbre">Woolworths’ acquisition last week of the Mordialloc Plaza for $41 million</a> and a string of <a href="https://theurbandeveloper.com/articles/bellarine-village-shopping-centre-sold-for-365-million">other neighbourhood centre sales in Victoria this year</a> that transacted on similarly strong prices.</p><p>Related reading: <a href="https://theurbandeveloper.com/articles/vicinity-sells-1bn-worth-of-australian-shopping-malls">Vicinity Offloads $1 Billion of Shopping Malls</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/9f269fcc-053d-4d03-9e56-b6e25c52f605.jpg" width="3600"/></picture><div><span style="align-content:left;opacity:0.8">A Chinese syndicate has paid $39.4m for Mornington Village.</span><span style="float:right;opacity:0.8">Image: CBRE</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Robina retail centre sells to Gold Coast investor</strong></h2><p>Robina&#x27;s Easy T Centre has been sold by Clarence Property to an undisclosed Gold Coast-based investor for $35.8 million.</p><p>The Easy T Centre was developed by Robina Land Corporation in association with Robina Projects Australia and was purchased by Clarence Property for its Westlawn Property Trust.</p><p>The latest deal – which hasn&#x27;t settled yet, was brokered by Knight Frank&#x27;s Mark Witheriff and James Branch in conjunction with CBRE&#x27;s Michael Hedger and Joe Tyran.</p><p>The Easy T Centre which spans 5,880sq m, includes the Easy T Medical Centre, Spano’s Supa IGA supermarket and 40 speciality retailers.</p><p>The centre was originally purchased by Clarence Property for $31.6 million in 2006 and generates a rental income of $2.5 million per year.</p><p>Clarence Property has been quick to move on retail anchored property having recently <a href="https://theurbandeveloper.com/articles/clarence-property-buys-brisbane-shopping-centre-for-3125m">purchased The Zone Shopping Centre </a>in Underwood for $31.25 million, reflecting the surge in retail centre demand.</p><p>“Neighbourhood convenience centres – particularly those positioned in high growth areas – are being taken to market and snapped up quickly,” CBRE&#x27;s Joe Tynan said.</p><p>“Easy T Centre’s main trade area is expected to grow by about 13,000 people by 2031, and there’s potential for the purchaser to make a development application for residential apartments within the Easy T site.”</p><p></p></div></div></div></div></div>

The surge in shopping centre demand in 2018 looks set to continue.

Two-thirds of Deals Progress Despite Covid Crisis

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Transaction activity across Australia’s capital markets has continued to flow despite the Covid-induced uprooting of the office sector, with Knight Frank reporting that two-thirds of its deals has progressed since March.</p><p>According to commercial real estate agency&#x27;s latest capital markets report, 31 per cent of deals under way in March have now settled or are unconditional while 34 per cent are progressing and just under 9 per cent have been put on hold.</p><p>While deal completions remained healthy, total turnover across the office, industrial and retail markets during the first half of 2020 was $10.37 billion, 43 per cent below the $18.26 billion recorded during the same period in 2019. </p><p>The office market, crippled by ongoing uncertainty around <a href="https://theurbandeveloper.com/articles/property-council-office-market-report-july-2020">occupancy and rental abatements</a>, has the highest proportion of deals in flux, with 41 per cent still progressing. </p><p>The industrial sector, <a href="https://theurbandeveloper.com/articles/industrial-sentiment-shines-light-in-dark-times">dominated by non-discretionary assets</a>, saw turnover of $3.71 billion in the first half of the year, only 10 per cent below the same period last year, and the highest completion rate for deals of 47 per cent.</p><p>Retail, which had already been subject to <a href="https://theurbandeveloper.com/articles/rent-relief-for-retailers-scca">fluctuating investor</a> demand across 2019, has seen turnover fall a further 45 per cent, with $1.74 billion in transactions completed.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Prime CBD office market yields</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/42ccf3af-ece2-4f92-a0e5-94555a1444b1.png" width="1642"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^ Source: Knight Frank Research</sub></sup></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Knight Frank chief economist Ben Burston said a gradual recovery in liquidity within the commercial market was on the horizon following a a pullback from investors “adjusting” to the new environment.</p><p>“Core real estate will remain highly sought after but greater priority will be given to stability and length of income and this will favour prime assets than can easily adapt to social distancing and cater to changing occupier requirements,” Burston said.</p><p>Over 2020, smaller commercial deals have been easier to progress during Covid, with less than 25 per cent of assets in the $50 million-plus range completing.</p><p>Deals ranging between $5 million and $50 million have remained more difficult to see through, with 9 per cent unconditional and 24 per cent settled since March. </p><p>Sales of under $5 million had a 56 per cent completion rate for deals over the same period.</p><p>Knight Frank national head of capital markets Paul Roberts said activity across institutional-grade assets, of $50 million-plus, remained strong, with increased demand for assets with <a href="https://theurbandeveloper.com/articles/finance-for-developers-gold-brick-assets">limited short-term tenant risk</a>.</p><p>“It has been more difficult to achieve completion on larger deals, where we typically see interest from interstate or offshore investors and more intensive due diligence processes,” Roberts said.</p><p>“These deals are taking some time to complete, with more than 75 per cent still in progress.”</p><p>Deals in Victoria’s commercial markets have slowed down further since the second wave emerged in July, and remain 43 per cent down on 2019.</p><p>The uncertainty across Melbourne has left 42 per cent of deals pending, 33 per cent of which are on-hold for “more favourable timing”. </p><p>In Sydney, just under half of active deals remain in progress. The city also recorded the highest percentage of properties—27 per cent—withdrawn from sale. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Business as usual for Brisbane’s office market</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>According to Knight Frank, deals in Brisbane’s <a href="https://theurbandeveloper.com/articles/brisbane-office-market-remains-steady">commercial markets</a> performed best over the the last six months, with only 21 per cent of deals withdrawn and 46 per cent completed.</p><p>Roberts said Brisbane had seen the highest levels of completions, followed by Sydney and then <a href="https://theurbandeveloper.com/articles/melbourne-office-vacancy-covid">Melbourne</a>, due to its low exposure to lockdowns.</p><p>“To date, Brisbane has been fortunate to have less time under restrictive lockdowns than its southern counterparts, which has buoyed activity,” Roberts said.</p><p>More than 90 per cent of Brisbane’s completed deals were below $25 million, with private buyers more active within the depressed market.</p><p>The city’s fringe markets have also been buoyed by renewed developer interest and investment, with a <a href="https://theurbandeveloper.com/articles/fortitude-valley-brisbane-fridge-office-market-development-application">spate of commercial schemes</a> lodged since March.</p></div></div></div></div></div>

Smaller commercial deals have been easier to progress during Covid, with less than 25 per cent of assets in the $50 million-plus range completing.

Street Front 1

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Sydney’s property market has been abuzz recently with a potential blank development slate hitting the market in Mascot, two separate retail assets selling in Ashfield and the Engadine Tavern listed for sale in Sydney’s south. </strong></p><p>Managed by Knight Frank, the site for sale on 573 Gardeners Road, Mascot has been labelled a rare opportunity in an area where current supply is limited.</p><p>Spanning approximately 2,788 square metres, mixed-use zoning in the area presents a range of development opportunities for future owners, according to Knight Frank sales director Adam Bodon.</p><p>“With outstanding transport connections and facilities in the surrounding area, we expect it will draw interest from a range of developers,” he said.</p><p>“Based on similar approvals on nearby projects we would expect the site to yield approximately 80-85 apartments.”</p><p>The site currently hosts a two-storey commercial and industrial building which features a ground floor showroom, storage, reception, offices space and a first floor workshop. </p><p>The site is expected to sell for around $20 million.</p><p>Related reading: <a href="https://theurbandeveloper.com/articles/hotel-owners-to-cash-in-on-sydney-airport-precinct">Hotel Owners to Cash in on Sydney Airport Precinct</a></p><p>The Liddy family has placed the Engadine Tavern on the market, parting with the family-owned pub after 39 years. </p><p>The tavern is expected to sell for $27.5 million. </p><p>The Engadine Tavern sits on a 5576sq m site across five lots and has redevelopment potential up to a 20-metre height with a floor space ratio of 2:1. CBRE is handling the sale.</p><p>Related reading: <a href="https://theurbandeveloper.com/articles/two-sydney-super-sites-hit-the-block">Two Sydney ‘Super Sites’ Hit the Block</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/5cf71ccf-72f7-4570-a0f5-1947cbc712d4.jpg" width="5184"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In Ashfield, Cushman &amp; Wakefield offloaded two retail sites in one package to an Australian investor based offshore.</p><p>The sites are located on the “high street” retail strip on Ashfield’s Liverpool Road and are currently in use as an ANZ Bank branch and Chemist Warehouse outlet.</p><p>Individually, the 789sq m Chemist Warehouse sold for over $8.88 million, with a recently signed 10-year lease by the pharmaceutical retailer Chemist Warehouse, as they generate annual net income of $420,000 and a 4.89 per cent yield.</p><p>The second site is occupied by an ANZ Bank, and was sold for $5.65 million representing a yield of 4.4 per cent. </p><p>Cushman &amp; Wakefield sales director Anthony Bray said the yields attained demonstrated that values were still robust for retail properties supported by long dated, blue-chip retail tenants.</p><p>“During the last quarter we saw retail sector investment rise 72 per cent across the country, which contributed to the strongest year on record. </p><p>“While neighborhood deal activity drives this result, we continue to see interest in mixed-use and non-CBD retail assets, particularly in areas supported by underlying demographic fundamentals,” he said.</p><p>A private owner in Wilton sold a 44.14-hectare site at 570 Picton Road to the Woolloongong Catholic Dioceses for $17.34 million.</p></div></div></div></div></div>

Sydney’s property market has been abuzz recently with a potential blank development slate hitting the market in Mascot, two separate retail assets sel

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p>An expansive brownfield site on Brisbane’s south side could be transformed into a mixed-use precinct after changing hands for $26 million. </p><p>The <a href="https://theurbandeveloper.com/articles/foundry-development-site-on-brisbanes-south-hits-market">16.22ha industrial property</a> in Runcorn was snapped up by a Chinese-backed developer, with plans in place to redevelop the site into a mixed-use precinct subject to approvals. </p><p>Vendor, global engineering business Bradken offloaded the Runcorn property, located 14 kilometres south of Brisbane CBD at 54A &amp; 32 Bonemill Road, having owned it since 1955.</p><p>Knight Frank’s Christian Sandstrom and Mark Clifford negotiated the deal. </p><p>“The buyer intends to redevelop the site for a mixed-use scheme complementing the surrounding uses, subject to council approvals,” Clifford said. </p><p>Related: <a href="https://theurbandeveloper.com/articles/cvs-lane-capital-partners-consolidated-properties-buy-arndale-shopping-centre">Consolidated Properties, CVS Lane Buy Arndale Shopping Centre</a></p><p>The proposed masterplan for the site, known as <a href="https://theurbandeveloper.com/articles/foundry-development-site-on-brisbanes-south-hits-market">“The Foundry” in homage to its previous use</a>, would create a new precinct comprising a mix of residential and commercial development.</p><p>Clifford said the sale meant the now unused site, could potentially be transformed into a “vibrant hub”.</p><p>“It’s a prime redevelopment site in a great location, situated in a high-growth region of Brisbane.</p><p>“A future redevelopment of the site will provide more housing, employment and facilities for residents of Brisbane’s south.”</p><p>Sandstrom said the expressions of interest campaign attracted a range of buyers including owner-occupiers and developers.</p><p>“Interest in the site had been very strong even prior to the sale campaign, with both local and offshore buyers eyeing off the site for many years, with the intention of converting it from its current industrial use into a mixed-use development,” he said. </p></div></div></div>

An expansive brownfield site on Brisbane’s southside could be transformed into a mixed-use precinct having changed hands for $26 million.  

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia has ranked 19th across 56 countries after recording a 6.1 per cent rise in house prices over the year to June. </p><p>The Knight Frank global house price index result comes as the nation’s home values recorded a 0.4 per cent <a href="https://theurbandeveloper.com/articles/australian-housing-values-reveal-divergent-capital-city-regional-markets">fall</a> in August.</p><p>The index, which tracks the movement in residential prices spanning more than 50 countries across the globe, found that Australia has risen 37 places up the rankings from one year ago when it came in last place—ranking at 56. </p><p>The metrics show Australia has recorded 6.1 per cent growth in house prices over the 12 months to 30 June 2020. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Knight Frank’s head of residential Shayne Harris said Australia’s housing market has seen continued demand, albeit fewer transactions throughout the pandemic. </p><p>“In Sydney, the market continues to be underpinned by a severe shortage of stock for sale by both auction and private treaty,” he said.</p><p>“While in the past eight weeks the difficulties around obtaining finance have seen the number of registered bidders thin out at auction, the clearance rate remains stable, as do prices across the inner and middle rings of metropolitan Sydney.”</p><p>Melbourne’s market conditions have been in steady decline for the past four months, Harris said.</p><p>“The city’s second lockdown, combined with reliance on overseas immigration and education to support the market, could see these conditions continue beyond the other capital cities, who are ahead of the curve in relation to recovery”.</p><p>Harris added that Brisbane’s market could emerge in a very strong position for 2021.</p><p>“Coming off an extended period of low price growth, Brisbane’s affordability is the best capital city, side-by-side with <a href="https://theurbandeveloper.com/articles/pain-or-gain-for-perths-property-prices-">Perth</a>, in the short-to-medium term,” Harris said. </p><p>Knight Frank’s Australian head of residential research Michelle Ciesielski said the global data is backward-looking, covering the year through to June 30, when Covid-19 had hit most global markets.</p><p>New Zealand was the best-performing country in the Asia Pacific region, recording 9.1 per cent growth the past year and ranking at 11. </p><p>The annual rankings were topped by Turkey, followed by Luxembourg, Lithuania, Estonia and Poland.</p><p>In its latest global economic outlook, released Monday, Fitch Ratings predicted global GDP would fall by 4.4 per cent in 2020, a modest upward revision from the 4.6 per cent expected in the June outlook.</p><p>The global rating agency’s economics team, led by chief economist Brian Coulton, said “the recovery in economic activity after the unprecedented severe coronavirus-related recession” in March and April has been swifter than expected, “but we expect the pace of expansion to moderate soon”.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

Australia’s housing market has ranked 19th across 56 countries after recording a 6.1 per cent rise in house prices over the year to June...  

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia’s ultra-luxury residential market, largely unaffected by the impact of recent lending restrictions, has continued to record positive growth in the prestige sector of the market. </p><p>Sydney, Melbourne, Brisbane, the Gold Coast and Perth make up the five Australian cities which rank in the world&#x27;s top 30 cities for luxury residential price growth. </p><p>The major east coast cities of Sydney, Melbourne, Brisbane and <a href="https://theurbandeveloper.com/articles/gold-coast-enters-luxury-market-hit-list-">the Gold Coast</a> have now recorded 25 quarters, or more, of positive annual growth for luxury property, according to Knight Frank’s Prime Global Cities Index for the third quarter 2019. </p><p>Defined as the most desirable and expensive property in a given location, prime property is generally the top 5 per cent of each market, by value.</p><p>Sydney ranks 17th in the global rankings, with 2.6 per cent annual growth, Melbourne at 21st spot recording 2 per cent growth.</p><p>Brisbane followed closely ranking 22nd with 2 per cent growth, the Gold Coast <a href="https://theurbandeveloper.com/articles/gold-coast-enters-luxury-market-hit-list-">which was included in the Index for the first time earlier this year </a>moved up the rankings to 26 with a 1.3 per cent increase, and Perth ranked at 30th recording a 0.7 per cent rise. </p><h2><strong>Knight Frank&#x27;s Prime Global Cities Index </strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>12-Month Change (Q3 2018 -Q3 2019)</th></tr></thead><tbody><tr><th>1. Moscow</th><th>11.1%</th></tr><tr><th>2. Frankfurt</th><th>10.3%</th></tr><tr><th>3. Taipei </th><th>8.9%</th></tr><tr><th>4. Manila</th><th>7.4%</th></tr><tr><th>5. Berlin</th><th>6.5%</th></tr><tr><th>6. Guangzhou</th><th>6.2%</th></tr><tr><th>7. Geneva</th><th>5.6%</th></tr><tr><th>8. Zurich</th><th>4.5%</th></tr><tr><th>9. Delhi</th><th>4.4%</th></tr><tr><th>10.  Madrid</th><th>4.2%</th></tr><tr><th>17. Sydney</th><th>2.6%</th></tr><tr><th>21. Melbourne</th><th>2%</th></tr><tr><th>22. Brisbane</th><th>2%</th></tr><tr><th>26. Gold Coast</th><th>1.3%</th></tr><tr><th>30. Perth</th><th>0.7%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Knight Frank’s head of prestige Residential Deborah Cullen says the top end of the market is showing more consideration and time in transacting.</p><p>“There is still strong interest from local and expat buyers for blue ribbon areas and for “best in class” assets, in particular the waterfront areas of Sydney,” Cullen said.</p><p>“Growth in prime property prices closely follows the performance on the stock exchange,” Knight Frank head of residential research Michelle Ciesielski said. </p><p>“And there have been some significant gains made on the Australian sharemarket in 2019.</p><p>“Collectively the Australian prime market has continued to see sustainable growth of 2 per cent in the year ending September 2019, whilst the sharemarket recorded a 7.7 per cent return,” Ciesielski said. </p><p>Related: <a href="https://theurbandeveloper.com/articles/worlds-most-expensive-home-sells">World’s ‘Most Expensive’ Home Sells</a></p><p><strong>Slowdown gathers pace in top-tier cities</strong></p><p>The global cities index increased by just 1.1 per cent in the year to September 2019, down from 3.4 per cent last year, with slower prime price growth attributable to mounting economic headwinds.</p><p>Despite a longer-than-expected period of loose monetary policy and steady wealth creation, the report notes that luxury sales volumes are at their weakest for several years in many of the first tier global cities.</p><p>“Slower global economic growth– the IMF lowered its 2019 forecast from 3.3 per cent to 3 per cent in October – along with escalating headwinds: US-China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum are influencing buyer sentiment,” the index notes.</p><p>Moscow recorded the highest rate of growth with an 11 per cent increase over the year to September. </p><p>The report notes that Moscow leads the index largely due to strengthening demand and the completion of a number of high-end projects in prime areas like Ostozhenka and Tverskoy.</p><p>The prime global cities index is a valuation-based index that tracks the movement in prime residential prices in local currency, using data, across 40 cities.</p></div></div></div></div></div>

Australia’s ultra-luxury residential market, largely unaffected by the impact of recent lending restrictions, has continued to record positive growth 

KNIGHT FRANK