MOSAIC’S $200M BURLEIGH PROJECT NEARS SELL-OUT AFTER $180M IN SALES

Mosaic Property Group’s latest Burleigh Heads development is closing in on a full sell-out after recording more than $180 million in sales within months of launch.

The $200 million beachfront project, Josephine by Mosaic, has seen strong early demand, with the developer now bringing forward construction as remaining stock tightens.

Positioned at 166 The Esplanade, the project marks Mosaic’s fourth beachfront address along Burleigh’s tightly held coastal strip and its fifth in the suburb, reinforcing ongoing demand for design-led, high-end residences in scarce locations.

Designed in partnership with Sydney-based EMK Architects, Josephine comprises 30 half- and full-floor residences across 18 levels, with some residences approaching 500sqm and prices reaching up to $13 million.

A limited number of residences remain, with pricing from $4.5 million.

The project was initially released off-market in late 2025, with early buyers including a mix of local owner-occupiers and investors, many already familiar with Mosaic’s track record.

Mosaic Founder and Managing Director Brook Monahan said the response reflects a growing focus among buyers on quality, certainty and long-term value.

“The market’s response reflects the value of staying closely aligned with people and place,” he said.

He added that the decision to accelerate construction was driven by internal capability and planning rather than short-term market conditions.

“The volatility of recent years… has reaffirmed the importance of the disciplines we have always prioritised,” he said.

The performance of Josephine comes amid continued depth in the Gold Coast’s luxury apartment market, where demand is increasingly concentrated in tightly held beachfront locations.

Completion of the project is expected in mid-2028.

Australia’s major CBD office markets are recording some of their strongest rental growth since the pandemic, with businesses increasingly prioritising premium office space despite elevated geopolitical and economic uncertainty.

Knight Frank’s Australian Office Indicators Q1 2026 report found net effective rents in Sydney and Melbourne CBDs rose at their fastest annual pace since COVID-19, increasing 10.2 per cent and 6.8 per cent respectively over the 12 months to March.

Brisbane posted the strongest growth nationally, with net effective rents climbing 11.7 per cent over the same period.

The report points to a widening divide between prime CBD office towers and secondary office stock, as occupiers increasingly focus on quality, location and workplace amenity when making leasing decisions.

Knight Frank Senior Economist, Research & Consulting Alistair Read said demand remained heavily concentrated in premium assets within core CBD precincts, helping drive stronger rental growth in top-tier buildings.

“Occupier demand continues to be heavily concentrated in the most desirable CBD precincts and the highest-quality buildings, accelerating a sharp divergence between core and non-core markets,” Mr Read said.

According to the report, Sydney’s Core precinct and Melbourne’s Eastern Core significantly outperformed broader CBD markets over the past year.

“In Sydney’s Core precinct and Melbourne’s Eastern Core, net effective rents surged 14.3% and 16.1% over the past year, significantly outperforming the rest-of-CBD precincts,” Mr Read said.

The rental gap between prime and non-prime office locations has also continued to widen sharply.

“As a result, core CBD rents are now 54% higher than non-core locations in Sydney and 93% higher in Melbourne, highlighting the growing premium placed on amenity, accessibility and workplace quality,” he said.

Knight Frank said the strong rental growth across the major CBDs was being underpinned by a limited supply pipeline, with few new office developments expected to be delivered in the near term.

Mr Read said subdued construction activity was likely to support ongoing rental growth and tighter vacancy rates over the medium term, particularly for premium office towers.

“The combination of sustained demand and declining levels of new development will aid ongoing prime rental growth and lower vacancy rates over the medium term, particularly for best-in-class assets,” he said.

The report noted that current economic conditions were making new office developments increasingly difficult to justify financially.

“Economic rents remain well above expected market rents, making the construction of new office towers largely unviable, and concentrating tenant demand into existing buildings,” Mr Read said.

While suburban office markets generally remained subdued compared with CBDs, Melbourne’s Southbank precinct was identified as a relative outperformer, recording annual net effective rental growth of 2.7 per cent.

The report comes as broader Asia-Pacific office markets continue to stabilise following several years of disruption linked to hybrid work trends, inflation and rising interest rates.

Knight Frank’s separate Asia-Pacific Q1 2026 Office Highlights report found Sydney and Brisbane were among the strongest-performing office rental markets in the region, behind only Bengaluru and Tokyo for annual prime net face rental growth.

The Asia-Pacific report also found 18 of the 24 cities monitored across the region recorded stable or increasing rents in the first quarter of 2026, even as geopolitical uncertainty intensified following escalating conflict in the Middle East.

MOSAIC’S $200M BURLEIGH PROJECT NEARS SELL-OUT AFTER $180M IN SALES

Josephine by Mosaic has surged towards a sell-out within months, prompting an early construction start as demand builds for ultra-luxury beachfront living.

Office rents in Sydney, Melbourne and Brisbane are climbing at their fastest pace since the pandemic as tenants compete for premium CBD space amid tightening supply.