DWINDLING SUPPLY WILL DRIVE PREMIUM CBD RENTS
Sydney faces a shortage of new premium office developments, with Knight Frank research forecasting rental growth of 5% per year as demand outstrips supply.
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Sydney’s CBD is heading into a period of historically low new office supply, with just three major premium developments over 25,000 square metres due by 2029, according to new Knight Frank research.
Of the 163,000 square metres set to be delivered, 65 per cent is already pre-committed, leaving only one per cent of total CBD stock available for lease until 2027. No new projects are currently slated for 2028-29.
Knight Frank Associate Director, Research & Consulting, Marco Mascitelli, said premium-grade space continued to outperform the wider market.
“Since 2018 there has been an average pre-practical completion commitment rate of 87% across all new developments, which have totalled 481,000 across 13 schemes,” Mascitelli said.
“Over the past 18 months, 170,000 square metres of newly developed premium grade office space has been delivered…all have been successfully leased, achieving an average commitment rate of 90%.”
National Head of Leasing Andrea Roberts said the market was tightening rapidly.
“Tenants continue to prioritise centrally located assets with market-leading amenity, and in time this will expose a supply shortfall at the top end of market which will drive rapid rental growth,” she said.
“As a result of the looming supply shortfall, occupiers seeking premium space within the 2026 to 2028 window need to act swiftly to secure their preferred option.”
Knight Frank forecasts average rental growth of around five per cent a year for Sydney’s premium assets, with incentive levels expected to fall below those offered across the wider market.
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An ultra-luxury Main Beach penthouse with 360-degree views of the beach, hinterland and city skyline has hit the market with an $18 million price tag, as buyers seeking a rare slice of coastal opulence continue to drive the top-end of the Gold Coast market.
The sprawling 600sqm residence will occupy the upper two floors of the 29-level La Mer tower on Main Beach Parade, and has been released as its construction reaches top-out, ahead of completion later this year.
The lavish penthouse boasts four bedrooms, all with ensuites, including an ocean-facing master retreat with private lounge, a kitchen designed for a private chef, a rooftop pool, huge entertaining zone with outdoor kitchen, a grand staircase, and its own express lift.
Demand for high-end Gold Coast property remains strong, with a Burleigh penthouse sold off-the-plan for $30 million earlier this year, surpassing the $24 million record set in 2023.
“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location – not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” said OTP Group director James Elliott, who is marketing the project.
“We’re anticipating interest from high-net worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”
The $155 million La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.
ODUS Director Byron Sakha said with construction powering ahead and the 29-level structure now complete, it was the ideal time to launch the penthouse to the market.
“We’ve worked with internationally-recognised studio, Sici Design, on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake – every element has been thoughtfully designed to enhance quality of life for those who call it home,” he said.
“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.
“Now that construction of La Mer has topped out, prospective buyers can experience how the building is taking shape and the exceptional location on offer, just 68 steps from the sand.”
Sici Design founder and director Maria Papadopoulos said the penthouse interiors exemplified effortless luxury living.
“The views weren’t something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” she said.
“Luxury isn’t defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”
Refined yet durable materials include premium natural stone Austral Dream Dolomite, with travertine bringing warmth and timelessness, complementing timber flooring, and a coastal colour palette.
The ocean-facing resort-style master retreat occupies half the upper level, with its own private balcony, lounge room, two walk-in wardrobes, and an oversized ensuite with double shower, double vanity, and solid stone freestanding bath overlooking the views.
The kitchen features a 3.6-metre statement island bench and expansive butler’s pantry, complemented by a dedicated wine cellar and integrated bar area.
Designed by architects, Plus Studio, La Mer features 24 full-floor, three-bedroom plus multipurpose room residences, along with the dual-level penthouse. Exclusive resort-style facilities include a pool, spa, fully-equipped gym, sauna, barbeque facilities, private sun lounges, yoga lawn and an outdoor beach shower.
The penthouse is being launched as part of the final release of apartments at La Mer, with prices starting from $4.3 million.
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