<html><body>
Guest observation
Is there a national housing supply problem? No, but there is a problem of access to affordable housing in certain regions.
Last month, Reserve Bank Governor, Glenn Stevens commented on the need for “<a href="https://www.rba.gov.au/speeches/2014/sp-gov-200814">animal spirits</a>” to respond to the exceptionally accommodative monetary policy setting and boost the supply of housing. More than 12 months have passed since the RBA last adjusted the cash rate to the current record low of 2.5%. This has stimulated investor demand, particularly in metropolitan Sydney and (to a lesser extent) Melbourne. Yesterday’s <a href="https://www.rba.gov.au/statistics/frequency/fin-agg/2014/fin-agg-0814">Reserve Bank of Australia aggregate credit demand figures</a> show loans to investors rose 9.2% year-on-year.
Housing supply, however, is “sticky” and lags in responding to changing demand. The resulting mismatch between demand and supply has led to a year-on-year increase in the <a href="https://www.rpdata.com/research/monthly_indices">RP Data residential property index</a> for Sydney of 16.20%, relative to a long-term average of closer to 4% per annum.
This in turn is affecting people’s ability to pay for their housing needs and places vulnerable households at risk of affordability stress. Housing affordability is a complex issue, affected by housing market and economic conditions as well as labour force and demographic trends.
Federal and state governments have for a number of years recognised the need to address the joint issues of housing affordability and supply, having introduced at the 2008 COAG meeting a multibillion dollar National Affordable Housing Agreement. Yet housing affordability and supply remain on the political agenda with no clear policy response.
Can’t we just build more houses?
A simplistic approach to the problem advises increasing the stock of housing. However this ignores the myriad frictions in property development. Vacant land itself is costly and takes a significant amount of time to develop, including provision of infrastructure and transport.
An additional factor that must be considered is the asymmetry between incomes and property types. In other words, the “right” properties must be built to supply the people who are looking.
Currently, there is a lack of suitable land for residential property expansion that is also accessible and suitably positioned for instance, near employment opportunities and social and physical infrastructure.
Traditional models of housing costs argue that houses are expensive as a consequence of the land they are built on being expensive. More recently, housing economists have studied the effect of government regulation on house prices and property development. Research from the US-based <a href="https://www.nber.org/papers/w8835.pdf?new_">National Bureau of Economic Research</a> identifies zoning laws, and the barriers to development that such regulation creates as a more significant factor driving prices and affordability stress than undeveloped land values.
For many Australians looking to purchase a property, the transaction costs and duties are a major impediment to an efficient property market. Furthermore, fragmented government policies on land use and development, with separate rules at each level of government and typically involving a range of regulatory bodies further compound this.
In Australia, it has been identified that the current lack of a “<a href="https://dd8gh5yx7k.scholar.serialssolutions.com/?sid=google&amp;auinit=M&amp;aulast=Berry&amp;atitle=Why+is+it+important+to+boost+the+supply+of+affordable+housing+in+Australia%E2%80%94and+how+can+we+do+it%3F&amp;id=doi:10.1080/0811114032000147430&amp;title=Urban+policy+and+res">whole of government approach to housing</a>” needs to be addressed in order for an effective response to housing supply shortages.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
 
Time to consider other options
In the mean time, regulators should consider their other policy options to increase the supply of affordable housing.
On Thursday, the RBA will appear in front of the Senate Standing Committee on Economics investigating the issue of housing affordability. One expected proposal is <a href="https://theconversation.com/macroprudential-regulation-where-central-bankers-stand-depends-on-how-they-think-32093">a tightening of lending standards to property investors</a>. There is only cautious support for any such measure. Renters are among the most exposed groups to housing affordability stress. Reducing the availability of rental properties through constraining investment activity will further exacerbate the effect of price pressures and record low vacancy rates.
An alternative policy may reconsider regulation of foreign investment and stronger regulation of the flow of cash through the “grey economy”. The research is mixed as to the national impact of relaxed foreign investment rules, though growing evidence suggests the current rules, intended to help stimulate those animal spirits and increase supply, has seen foreign investors effectively push potential local homeowners out and keep them in the rental market. The government could look to adapt these policy incentives so as to promote co-investment in affordable developments.
Surplus bedrooms
Another possibility may be exploring how to better utilise the existing housing stock. The ABS’s <a href="https://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/F7B1C824CA185E15CA257BD40015751E/%24File/41300_2011-12.pdf">2013 Survey of Income and Housing</a> found that over three-quarters of Australian households had surplus bedrooms. Share housing picks up some of this space and now account for around 1-in-10 households. Legal and taxation uncertainties may reduce this as an option, following recent reports of local governments threatening <a href="https://www.smh.com.au/nsw/councils-threaten-home-owners-with-1-million-fine-for-renting-rooms-20140926-10mchq">$1 million fines for households</a> offering short-term share accommodation service through Airbnb.
There is no single solution to the range of issues relating to housing supply. Government at all levels and regulators need to work together.
<img src="https://counter.theconversation.edu.au/content/32278/count.gif" alt="The Conversation" width="1" height="1">
Danika Wright is affiliated with Sirca, as a member of the Sirca-RP Data Advisory Board. She is a lecturer in Finance at the University of Sydney.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/its-too-simple-to-argue-lack-of-supply-pushes-up-house-prices-32278">original article</a>.
</body></html>

jrichardson-uRX5hFdKfN

It's too simple to argue lack of supply pushes up house prices

<html><body>
Blockheads Darren and Deanne earned 10/10 marks from Block judges Shaynna Blaze, Neale Whitaker and Darren Palmer when they unveiled their garden terrace.
They enlisted Block landscaper David Franklin, of Franklin Landscape &amp; Design, to assist them with the makeover.
Franklin is a renovation reality television regular, having appeared on several seasons of The Block as well as Burke's Backyard, Australia's Best Backyards and Selling Houses Australia.
Darren and Deanne's outdoor space, adjacent to their kitchen and living room, was described as a "Tuscan retreat" by Shaynna.
The judges were particularly impressed by the mezzanine balcony the team built over their terrace. Opening from the master bedroom, the small elevated area has city views.
The terrace featured plenty of greenery, including suspended geraniums.
Despite warnings from Franklin, Deanne couldn't be dissuaded from winding fairy lights around the hangers, though the judges didn't seem to mind.
The couple, who won this week's renovation challenge, earned just shy of a perfect 30/30 score, with one point deducted for failing to use the disco-light strewn vertical planter that Chris and Jenna gave them earlier in the season.
Picture courtesy of Channel 9.
</body></html>

The Block Glasshouse: The Ds (and their landscaper) garner perfect garden scores

<html><body>
Attending open homes is one of the most fun parts of buying a property.
You get to walk through a house, imagining how you'd decorate and what your future will look like when you live there - and of course, you get to have a stickybeak in someone else's home.
Unfortunately, there's a good deal more to buying a home than just walking through one. Before you get carried away, there are several (significantly less fun) steps you should take to ensure you are financially and mentally prepared to buy a house.
By taking these steps before you start attending open homes, you can save yourself from an emotional purchase, setting you up for a sound investment.
Before you go to an open home:
Find out your borrowing capacity
There's only one way to figure out what kind of property you can afford - find out your borrowing capacity. If you have some money for a deposit saved up, this should make up at least 10% of the total value of your prospective home. If you put down less than 20% of a property's value for a deposit, you'll likely have to pay <a href="/expert-insights/investing/less-than-a-20-deposit-the-8-things-you-need-to-know-about-lenders-mortgage-insurance-lmi">lenders mortgage insurance</a>.
Make sure that you don't equate your total savings with the amount you can afford to deposit on a home. You should always keep some amount of savings as a buffer, in case you lose your job, get sick or face an unexpected expense.
Calculate your potential loan repayments
It's temping to believe that just because you've saved for a deposit, you can afford to buy a house. However, if it's taken you 10 years to scrape together enough money for a deposit, it may not be likely that you'll be able to afford your mortgage repayments.
There are plenty of <a href="/expert-insights/buying/the-10-free-online-resources-every-novice-buyer-should-use">mortgage repayment calculators online</a> - lenders generally provide them to give you an idea of what you can expect to pay each month.
Draw up a budget
The only way to know what you can afford is to come up with a budget detailing your monthly expenses, probably repayments and extra property related costs like rates and bills. Some people are happy to have a vague mental budget, but remember - you can't skip a mortgage repayment the way you might skip depositing some money into your savings account.
Come up with a strategy
Once you have an idea of what you can afford, think about your investment strategy. Are you buying a house to live in for the next decade, or are you planning to live there for a year and then rent it out? Is it important to you to purchase in an area with strong capital growth potential, or would you rather be close to your parents as you raise a family?
Lofty dreams and aspirations are all good, but it's important to set aside some time to think about your goals and how you want to achieve them. If you're interested in developing a property portfolio, speak to friends and family members who have done the same. There are also plenty of property advisers who can give you some advice (which, of course, you'll consider in relation to a lot of other information) about investing in property.
If you're just sick of renting or living with mum but don't think property investment is something you'll want to dedicate a lot of your time to in the future, you may want something different from someone who is hoping to purchase property one of 15.
Take a long view, but leave in some room for spontaneity - you can't predict everything.
Research, research, research
Now that you have your budget and know why you want to buy property, you can start thinking about where you would like to buy. To get an idea of what you can afford, start by looking at the median price of houses or units in your area of choice.
To get more specific, you can look at recently sold properties in that area to see how much, say, a two bedroom townhouse sold for in the past two months.
While researching, you might find that you can't afford a property in your ideal suburb, and will have to move further out. Don't get disheartened - you can still keep an eye out for bargains in your dream neighbourhood while checking out the prospects 2 kilometres down the road.
When you're choosing suburbs to consider, keep in mind the price of properties in the area, its distance to your work or the nearest employment hub and local amenities. It's temping to buy in a suburb with pretty heritage terraces and your favourite restaurant, but available transport, schools, jobs and population growth may be a little more important.
Once you've done all that and have started walking through homes that are open for inspection, the research, strategy and budgeting process isn't over.
While you look for your first home (or your second, or fifth), you'll find that your priorities shifting and limits tested. Suddenly, things that seemed like dealbreakers are acceptable, or vice versa. So remember, even once you get to start having a good stickybeak in other people's homes, you should be revisiting your property strategy.
 
</body></html>

The steps you should take before even thinking about the open for inspection

<html><body>
The debate over negative gearing continues to rage, and consumer advocate Neil Jenman has picked a side.
<img src="/images/2014/09/24/neilj.jpg" alt="">
Current negative gearing tax benefits allow investors to claim tax deductions on investment properties where rental income doesn't cover ongoing costs, including interest on the mortgage.
Earlier this week, the Housing Institute of Australia said restricting negative gearing tax benefits <a href="/expert-insights/finance/restricting-negative-gearing-would-erode-affordability-says-hia-do-you-agree">would increase affordability pressures</a>, as rents would be pushed upwards.
<a href="https://www.propertyobserver.com.au/https://twitter.com/neiljenman/status/514870860373450752" target="_blank">Neil Jenman</a> is among those who disagree. Some who call for negative gearing benefits to be dismantled claim that the practice encourages speculative investing, which inflates housing prices.
 
</body></html>

Neil Jenman on negative gearing: Tweet of the day

<html><body>
NAME: Darrell Irwin<img src="/images/2014/09/24/in-prof-di.jpg" alt="" style="float: right;"> POSITION: Director, special projects division COMPANY: Colliers International OFFICE LOCATION: Gold Coast
How long have you been in the industry?
25 years
What's happening in the area you specialise in?
Development sites in South East Queensland are in hot demand, even on the Gold Coast!
Describe the most interesting commercial property you have worked on?
Sale of Couran Cove Resort and the sale of 50 hectares of land surrounding Robina Town Centre to QIC.
What are the ingredients to being successful in your job?
Knowledge, credibility, honesty and hard work.
What aspects of your role do you enjoy the most?
Dealing with the people and analysis of development sites for the highest and best use and consequently the value.
Where would you invest a spare $750,000?
Approved residential development land near water or major infrastructure.
Which football team do you support?
NSW Blues, Queensland Reds and Sydney Roosters.
What's your favourite app or techno gadget?
Hurley surf app.
How do you use social media?
Instagram to keep an eye on what my 11 and 13 year old daughters are up to.
 
</body></html>

In profile: Colliers International's director, special projects division, Darrell Irwin

<html><body>
A team of Australian designers and architects are on their way to China for a busy Beijing Design Week.
<img src="/images/2014/09/24/beijing.jpg" alt="">
Australian delegates will be building relationships between Australian and Chinese design industries.
The Australian delegation tasked with promoting our design and architecture include Debbie Ryan, founding principle of architecture practice McBride Charles Ryan. The practice is responsible for some of Victoria's standout contemporary homes, including the Klein Bottle House and Fitzroy North's Cloud House.
Oliver Kratzer, chairman of the Australian Design Alliance and Kenneth Cato, the director of Cato Brand Partners, will also be part of the Australian team heading to Beijing.
Other Australians attending the festival include design academics like Ian McArthur, senior design lecturer at the University of New South Wales Art &amp; Design, and Rohan Nicol, head of Gold and Silversmithing at the Australian National University School of Art.
You can keep up with everything that's happening at Beijing Design Week by following <a href="https://twitter.com/BjDesignWeek" target="_blank">@BjDesignWeek</a> or using the hashtag #BJDW2014.
</body></html>

Australian designs on show in Beijing: Tweet of the day

<html><body>
Last night's episode of Location Location Location Australia showed buyer's agents Veronica Morgan and Bryce Holdaway helping out two relocating couples.
Though one couple was upsizing and the other downsizing, they were both forced to negotiate the tricky realities of moving far from home.
Veronica was working with retirees Sue and Barney. After living in Port Macquarie for 16 years, they wanted to relocate to Wagga Wagga, where their son and his young family lived.
The couple, who have been married for 47 years, raised their own family in Wagga Wagga before moving northward to the beach.
For their return to Wagga, they wanted a three bedroom house with a double garage and a shed, which was close to the grandkids.
Their move, which they think might be their final one, had to be done on a tight budget of $350,000.
With limited stock on market in Wagga, Veronica was tasked with finding them the perfect final home among very few options.
She started by taking the couple to their preferred area of <a href="/news">Turvey Park</a>, in the heart of Wagga and only minutes from their son Ben. The three bedroom house, on the market for $329,000, had three bedrooms, a shed and a backyard.
The recently renovated home was a lot smaller than what Sue and Barney were used to, and the couple believed it would take a lot of hard work to make it worthwhile. It was immediately struck from the list despite its great location and the search continued.
The second house they inspected was in <a href="/news">Kooringal</a>, south of Turvey Park but only four kilometres from their son's home. The bigger house, with three bedrooms, only had a single car garage and the shed was on the small size.
While Sue loved the brick bungalow with an open plan kitchen, Barney was pretty skeptical. At $339,000, the house fell under their budget - but only just.
The third home they inspected was in <a href="/news">Bourkelands</a>, four kilometres from Central Wagga. The former site of a military base, developers have recently taken a liking to the area, with new builds popping up.
The house, which also had a $339,000, had a double garage, an open plan kitchen and living room layout. The master bedroom came with a walk in robe and ensuite, which also appealed.
With somewhat shabby bathrooms, the house (pictured below) would require a little bit of work. It <a href="https://www.realestate.com.au/property-house-nsw-bourkelands-116920539" target="_blank">remains on the market</a>, with its asking price now at $332,500. 
<img src="/images/2014/09/24/1.jpg" alt="">
After visiting three homes, none of which ticked all the boxes and all a step down from their dream home in Port Macquarie, the true reality of downsizing began to set in.
Sue and Barney showed just how difficult it is to downsize, especially from a home you love. Though they both wanted to be closer to their family, they weren't quite ready to make the final purchase of their life - especially if it meant settling for a home they weren't happy in.
In the end, although they couldn't find the perfect home, Sue and Barney decided they needed to be in Wagga. So they sold their Port Macquarie home and set out to rent a house in Wagga while waiting for the right home to come onto the market.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
 Bryce teamed up with Melbourne couple Ben and Amelia, who had the opposite move in mind.
They were planning to migrate northward, to the Gold Coast. After watching prices skyrocket in Melbourne, they decided they wanted more warmth and luxury for their dollar.
The upgraders, who want a family home they can grow into, had a budget of $1 million. They've been searching for a home in the Gold Coast for some time, but were finding the interstate property inspections a little impractical.
Enter Bryce. He was tasked with finding them a four bedroom home with a minimum of two bathrooms, a pool and canal views. Ben and Amelia wanted something close to the beach, with plenty of entertaining space.
Bryce was optimistic about their prospects, especially on their budget. The property market's downturn means that homes are more affordable than before, and it's a buyers' market.
According to Bryce, good capital growth potential can again be found in the Gold Coast, with high price growth in the southern states spurring on upgraders just like Ben and Amelia.
Their hunt began in <a href="/news">Broadbeach Waters</a>, at a home situated right on the canal. The four bedroom, four bathroom house had a pool and a six car garage. Unfortunately, it required some renovations - but with a price of $800,000, there was plenty of money leftover in the couple's budget for that.
It seemed, however, that Ben and Amelia had other things in mind. They weren't interested in extensive renovations, and wanted at least two living areas.
So house number one was a bust, and they moved along to house number two: a <a href="/news">Mermaid Waters</a> house with two open plan living areas. The contemporary tiled house had four bedrooms, four bathrooms and a spot to tie up the boat.
There was also an outdoor entertaining space by the pool. On the market for $995,000, it was within their budget, and made a good first impression.
But Ben and Amelia, it turned out, wanted a home with a better indoor-outdoor flow. So house number two was also out.
The <a href="https://www.realestate.com.au/property-house-qld-broadbeach+waters-116288195" target="_blank">third home they inspected</a> was one on main road, which caused some concern. But its huge contemporary interior space and layout, pictured below, won them over. The home, on a wide plot, also included a pool and spa facing the canal, with its own jetty.
<img src="/images/2014/09/24/2.jpg" alt="">
While the home's bedrooms weren't amazing, the outdoor entertaining area was enough to win them over.
The house had a $1 million asking price, but it turned out that the vendors had accepted a $950,000 offer previously, and finance had fallen through.
They inspected a final house, a single storey home with two large living areas and four bedrooms in Broadbeach. The house, which the couple wasn't keen on, had an asking price of $950,000.
The price gave Amelia and Ben a point of comparison, and solidified their preference for the third home.
Knowing that the vendors had accepted a $950,000 offer, Bryce proposed a $930,000 to $950,000 price for the home. Amelia and Ben decided to put in a $920,000 bid, and were happy to play the waiting game.
However, so was the vendor, who rejected the bid. Amelia and Ben pushed up their offer to $945,000 - which, after a few days of waiting, was accepted by the vendor.
By knowing the previous offers put in on the house, Amelia and Ben were able to gauge the vendor's needs, securing the home for $55,000 under the asking price.
</body></html>

Location Location Location: Big moves and big decisions

<html><body>
Lenders including NAB, Commonwealth Bank and St George Bank have all begun offering cash incentives to borrowers as the spring property market kicks into gear.
NAB is offering borrowers who apply for a new home loan with a principal and interest value of $300,000 of greater by 31 October a $1,000 eftpos card.
The lender has previously landed in hot water with the Australian Securities and Investments Commission (ASIC) after it released <a href="/expert-insights/finance/misleading-ads-cost-nab-40-800">potentially misleading advertisements</a> regarding a different eftpos offer.
ASIC fined NAB $40,800 over the UBank home loan ads, which promsed a $2,014 eftpos card but failed to disclose all the relevant eligibility details.
St George Bank is offering a $1,250 rebate for borrowers who apply for an Advantage Package home loan before 30 October and settle before 28 February 2015.
Other Westpac-owned banks are offering similar rebates. Borrowers who switch to the Bank of Melbourne or BankSA and take out an Advantage Package loan before 30 November will receive $1,250 to help cover their transfer costs.
The Commonwealth Bank also offers a rebate, though only to first home buyers. Those taking out their first home loan with the Commonwealth Bank before 29 November, with a minimum loan size of $100,000 and a minimum 10% deposit are eligible for a $1,000 cash rebate from the lender.
</body></html>

Lenders offering cash to entice customers

<html><body>
Tomorrow, the Reserve Bank of Australia will release its half-yearly Financial Stability Review.
<img src="/images/2014/09/23/tweet-best-sept-23-one.jpg" alt="">
In the lead up, RP Data's senior research analyst <a href="https://twitter.com/cmkusher" target="_blank">Cameron Kusher</a> has been taking a look at the March 2014 Financial Stability Review, copying the following extract:
"More generally, an upsurge in speculative housing demand would be more likely to generate financial stability risks if it brought forth an increase in the construction of a scale that led to a future overhang of supply and a subsequent decline in housing prices. At a national level, Australia is a long way from the point of housing oversupply, though localised pockets of overbuilding are still possible.
"While the recent pick up in higher-density dwelling construction approvals in Sydney and Melbourne warrants some monitoring, the near-term risk of oversupply in those cities seems low. Indeed, concerns expressed by lenders about possible oversupply in the Melbourne apartment market over the past year seem to have lessened, despite rental yields there remaining quite low."
The Reserve Bank noted that strong investor activity in the housing market may be a sign of speculative demand, an upswing of which "may be more likely to generate financial stability risks" if it resulted in housing oversupply.
While the Reserve Bank seemed largely unworried about oversupply in the last Financial Stability Review, governor Glenn Stevens has <a href="/expert-insights/finance/10-things-to-know-about-september-s-rba-meeting-minutes">expressed concerns</a> over the current rate of property price growth.
</body></html>

Cameron Kusher on the RBA's Financial Stability Review: Tweet of the day

<html><body>
With the auctions for The Block Glasshouse only a few weekends away and each listed online, people are already guessing what each Prahran apartment will sell for.
Property value predictor realAs has estimated the price of two of the properties on The Block Glasshouse: Chris and Jenna's unit and Max and Karstan's apartment.
So far, Max and Karstan are ahead, according to realAs. Their algorithm predicts that the apartment at <a href="https://www.realestate.com.au/property-apartment-vic-prahran-117846863" target="_blank">3/121-127 High Street Prahran</a> (pictured above) will sell for $1,728,000, based on a price guide of $1.6 million.
Chris and Jenna aren't far behind with their windowless offering predicted to sell for $1,624,000, compared to their price guide of $1.5 million.
Predictions from realAs aren't yet available for Deanne and Darren, Michael and Carlene or Simon and Shannon's apartments.
The listing for Michael and Carlene's apartment at <a href="https://www.realestate.com.au/property-house-vic-prahran-117902235" target="_blank">1/125 High Street</a> describes it as "showcasing the warm style that has made Michael and Carlene major award winners".
Their apartment (pictured below) has 236.8 square metres of floor space, and a southerly aspect. The judges deemed their kitchen, laundry, entrance and living and dining area the best on show this season.
 <img src="/images/2014/09/23/1.jpg" alt="">
Chris and Jenna's apartment, <a href="https://www.realestate.com.au/property-apartment-vic-prahran-117921143" target="_blank">pictured below</a>, has 277 square metres of floor space, making it the biggest apartment in The Block.
The apartment, however, also doesn't have a single external window - just skylights and an internal terrace. To make up for it, they're the only apartment with a rooftop terrace.
 <img src="/images/2014/09/23/2.jpg" alt="">
Karstan and Maxine have a 237 square metre apartment, with a north-westerly aspect (pictured below).
The couple also have a "secret" extra room which is yet to be revealed.
 <img src="/images/2014/09/23/3.jpg" alt="">
The apartment at <a href="https://www.realestate.com.au/property-apartment-vic-prahran-117915927" target="_blank">4/125 High Street</a>, renovated by brothers Simon and Shannon, has a southerly aspect (pictured below).
The 249 square metre apartment is the second largest, and overlooks High Street.
<img src="/images/2014/09/23/4jpg" alt=""> 
Deanne and Darren's apartment, <a href="https://www.realestate.com.au/property-apartment-vic-prahran-117930567" target="_blank">6/121 High Street</a>, is the smallest on The Block, with just 186.7 square metres of floor space.
It does, however, have the most desirable aspect, facing northward and delivering city views (pictured below).
 <img src="/images/2014/09/23/block-sept-23-one.jpg" alt="">
Each team will take home the sale price of their apartment minus their reserve, with the team that has the highest price above reserve also receiving a $100,000 prize.
realAs is also <a href="https://realas.com/theblock/" target="_blank">running a competition</a> for those who think they can guess the end price for the apartments, with an iPhone 6 up for grabs. 
Which apartment do you think will attract the highest price?
{mijopolls 38}
</body></html>

The Block Glasshouse apartments: How much will they sell for?

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Jessie Richardson

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News