A major city office building could soon change hands, despite a turbulent month in commercial property.

Owners of city shops have weathered an influx of retail space added to the central business district market at the start of last year, with vacancy levels halving from almost 3% to 1.49% over 18 months.

The joint-venture owners of a yet to be developed $400 million office building have indicated they will proceed with construction despite the risk that 76% of the building could remain vacant on completion.

Surgeon Angus Hamer – and nephew of prominent former State Liberal leader Sir Rupert Hamer - is selling a 3-hectare estate in Eltham South, after 25 years.

Communications company NSC Group is the latest tenant to move closer to the CBD, leaving an office building at 23-27 Wellington Street, St Kilda, to lease a 500 sq m unit at the Hallmarc Business Park in Southbank.

Australia’s largest building industry association, the Housing Industry Association, is pleased the Victorian Government has embraced a consultative approach on working towards developing broader residential standards for new homes by 2010.