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The value of all housing-related lending increased by 0.9 percent in March and annual growth lifted to 5.3 percent.
The value of housing loans to owner-occupiers (excl. refinancing) rose by 1.7 percent and annual growth stepped up to 6.4 percent. 
The value of loans to investors rose by 0.8 percent in March.
Total lending for dwelling-related construction lifted by 4.5 percent and has stabilised in trend terms over the past 4 months. 
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Overall lending conditions in the housing market remained firm in March, consistent with both strong auction clearance rates and robust dwelling price growth. Key details below: 
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Owner-Occupiers (O-Os): Lending growth to O-Os (ex-refinancing) by value 12 has risen for five of the past six months. 
The monthly growth rate averages out at a solid 1.3 percent over that period. By number, however, a 0.5 percent fall was recorded 9 following a 0.8 percent contraction in February. 
A small lift in the average loan size was posted. Surprisingly, the average loan size to O-Os has trended down since late 2016 despite dwelling prices firming. The anomaly is explained, in part, by the big influence that investors and foreign buyers have had on price growth in both Sydney and Melbourne. 
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Investors: The value of lending to investors moved a little higher in March after a solid 5.7 percent contraction in February. It looks like growth in the flow of lending to investors has eased after accelerating markedly throughout 2016 as the RBA eased policy twice. Notwithstanding, lending growth to investors was 14.2 percent higher through the year in March. 
We expect to see lending growth to this segment moderate in coming data prints as some tightening in lending conditions to investors has an impact on the flow of credit. We do note, however, that the national auction clearance rate firmed on the weekend to 76.2 percent on stronger volumes. This suggests that there is still a fair bit of positive momentum in the property market. 
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Construction: Total lending for dwelling-related construction has broadly tracked sideways over the past four months. There is still plenty of residential construction to come. Commencement and completions will remain firm throughout 2017 which will help to boost the supply of new dwellings. Lending for alterations and additions lifted in March and has been trending higher. This is consistent with other indicators that show renovation activity is lifting 
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States: The data on O-O loans by State showed that annual growth in the number of loans has tracked broadly sideways in NSW, Vic and QLD. The number of loans to O-Os in WA continues to trend lower. An update on lending to investors by State will be in Wednesday’s Lending Finance release.
First home buyers: The number of loans to first home buyers posted a big 20.5 percent lift in March. Notwithstanding, first home buyers accounted for just 13.6 percent of all O-O dwellings financed over the month which is very low by historic standards. 
Note that the March housing finance figures predate APRA’s latest round of measures to mitigate risks in the mortgage lending market (announced 31 March). 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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Overall lending growth in the housing market remained firm in March: Gareth Aird

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Melbourne has emerged as having the highest 12 month growth for home values, according to CoreLogic’s latest report.
The property data firm says that over the past 12 months Melbourne’s home value has increased by 12.9 percent.
This is slightly more than Sydney’s growth of 12 percent.
Melbourne achieved this growth despite a weekly decline of 0.7 percent compared to Sydney’s 0.4 percent decline.
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Perth is the only locality where the home value has declined rather than increased with a decline of 4.2 percent over the past 12 months.
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Melbourne overtakes Sydney with the highest 2017 home value growth: CoreLogic

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GUEST OBSERVER
Australia has few places to capture the spill-over of talented workers priced out of the big cities. Some may leave the country altogether – and where talent goes, capital flows.
If the growth of cities in the 20th century was marked by “white flight”, the 21st century is shaping up to be the era of “bright flight”. The young, highly educated and restless are being priced out of many of the world’s major cities.
They are choosing instead to set themselves up in smaller, regional cities. These offer access to less expensive housing and abundant cheap workspace. The barriers to entering the workforce or starting up a business are lower.
The “metropolitan pressure” of rapid urbanisation is generating a talent spill-over effect, which is setting the stage for a new era of urban winners and losers. This talent leakage is primarily made up of the “forgotten ones” – those who don’t qualify for social housing, but who are unable to afford market-rate housing.
In this age of of hyper-urban migration, where talent goes, capital flows. Cities need to respond to this migration trend and provide adequate housing solutions to retain talent. If not, it could shape up to be a major economic challenge as many are relying on this cohort of knowledge sector and tech-focused workers to lead them into the digital age.
Lessons from the rise of the suburbs
Many will know the urban story, or rather sub-urban story, of the mid-20th century. It was an era marked by “white flight”, the term used to describe the phenomenon of predominantly middle and upper-class Caucasians leaving urban centres to live in the suburbs.
For some, it was a chance to have their dream home in a culturally and ideologically homogeneous neighbourhood replete with white picket fences and enabled by access to cheap debt and favourable tax incentives.
From the cities’ perspective, this migration was devastating. Cities saw their tax revenues drained as higher-income earners fled to the ’burbs. At the same time, these cities required increased investment in social services, housing and education for low-income residents who largely had no choice but to stay in urban centres.
Over a few decades, this exodus led to severe economic and social decay in many of the world’s cities. By the mid-1970s, even New York was on the verge of bankruptcy.
Reversal drives an urban renaissance
This era of “white flight”, however, began to fade in the later part of the 20th century as a new generation of urbanites flocked to cities across the world.
What we are experiencing now is nothing short of a modern urban renaissance. From the very young to the very old, from singles to families, people are moving to cities in droves, drawn by the excitement, cultural diversity, eclecticism and array of employment opportunities that urban living offers.
Global cities like London and New York have rebounded from this era of urban decay better than they could ever have expected. In many ways, however, they have been too successful for their own good. The reverse migration back to the city has placed enormous pressure on our metropolitan regions.
As urban populations grow, so too does the level of investment needed for cities to function well. The investment is required to improve ageing infrastructure, expand mass transit, increase housing supply and extend capacity of civil services.
But making all these upgrades to improve and sustainably grow our cities creates another challenge: it increases competition for space. The more we increase density in our cities, the more expensive land becomes. The more expensive land becomes, the more expensive housing becomes, so people get priced out of their city of choice and move on.
Spilling over to second-tier cities
This pattern has been playing out for a some time now in the US. The spill-over of talent from top-tier cities like New York, Chicago, Los Angeles and San Francisco has flowed into more regional cities such as Seattle, Portland, Austin, Philadelphia and Denver.
These second-tier cities have been the beneficiaries of this new wave of tech-savvy, knowledge sector workers. With all those bright workers around, companies like Google, Facebook, Apple and Amazon soon followed.
As a result, these cities now have some of the hottest property markets in the world. And they are now experiencing their own growing pains as housing prices have soared and the next wave of talent are being priced out.
And so the pattern continues and the talent spills into even more regional cities like Charlotte, Chattanooga and Minneapolis.
What does this mean for Australia?
Today, civic leaders and planning agencies are caught in the vice of balancing the need for increased density and growth while maintaining liveability, affordability and a sense of place.
Unfortunately for many cities, this vice has been tightened too much. We are pushing out the very workers who make our cities function (bus drivers, social workers, teachers), who define their culture (artists, designers, writers, musicians) and who will shape their future (data scientists, software developers, clean tech experts).
For Australia, this issue is much more acute. Unlike the US, which has a multitude of cities for talent to spill into, Australia has only a handful of cities. While places like Parramatta, Geelong and Newcastle will likely benefit from talent capture owing to the pressure build-up in Melbourne and Sydney, many more “bright ones” will likely seek their fortunes overseas and leave the country altogether.
We will rue the day if the companies follow suit, but cities can also take action to relieve some of this affordability pressure. Many cities are enabling innovative housing models such as Baugruppen in Berlin and Pocket Living in London. US cities like Seattle, Austin and Portland are leading the way on inter-generational urban co-housing models.
In Australia, Moreland City Council, birthplace of The Commons and Nightingale housing model, is doing its part to keep talented artists, designers, key workers, young families and downsizers within metro-Melbourne. Co-living models, such as Base Commons in Melbourne, are also making an entry here in Australia as a refreshed, millennial-driven approach to urban co-housing.
Watch this space. And cities: keep enabling housing innovation.
Jason Twill is a Innovation Fellow and Senior Lecturer at School of Architecture, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jason-twill-105833" target="_blank">here</a>.
 
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From ‘white flight’ to ‘bright flight’ – the looming risk for our growing cities: Jason Twill

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The budget changes to negative gearing depreciation claim items will see investor demand for recently completed housing fall or flatline - and result in a cooling in the Sydney and Melbourne markets, according to SQM Research's Louis Christopher. 
Investors who own current properties, particularly newly built ones, will especially find it harder to buyers.
The new limits to the way expenses can be deducted against negative geared properties - which need to be legislated - will prove a turning point in the investment property market, he says.
The changes mean owners of any property not bought brand new will no longer be able to depreciate items like air-conditioners, cooktops and dishwashers, or shared equipment such as lifts in apartment complexes. 
Quantity surveyors and analysts said these form up to 50 per cent of depreciation deductions for investors.  
"I think there is enough in it here to slow the market down in the second half of the year," SQM Research's Louis Christopher said. 
"We will see a significant drop off in [investor demand] in the second half.
"I will be expecting there will be less investors in the market."
Christopher is changing his house price forecast with lower numbers to be released next week.  
The federal Treasurer Scott Morrison has confirmed the deduction benefits would be grandfathered but to prevent "double dipping" in depreciation, only the first investor of each new investment property can claim these deductions.
The federal government has also confirmed to The Australian Financial Review that subsequent investors of residential investment properties would not be able to claim depreciation to existing plant and equipment even if that equipment had not reached the end of its effective life. 
Investors could only claim depreciation on plant and equipment they had bought subsequent to their purchase.
Quantity surveyor Washington Brown fears the rules would affect off-the-plan investors who could potentially be unable to depreciate plant and equipment purchased originally by the developer. 
"I suspect that the legislation will be worded such that if the plant and equipment was in situ at the time of purchase, you can no longer claim it," director Tyron Hyde said in his note to clients. 
Christopher urged the federal government to make a swift clarification otherwise decisions would be made on "wrong information". 
"The Liberals have not intended for the policy to be draconian…and while saying they would leave negative gearing alone, have actually done the opposite."
Limiting previously generous plant and equipment depreciation deductions to only those expenses directly incurred by investors will impact on the Quantity Surveyor industry,
The blog of Pete Wargent noted data compiled by MCG Quantity Surveyors showed that their average claim for depreciation deductions was $9,138, up to half of which was typically for plant and equipment deductions. 
"For new individual Mum-and Dad investors - which is most of the landlord market - this is a fairly significant change to tax legislation," Wargent noted. 
"Overall, it may become more tax-efficient to purchase older style properties in order to renovate them, though for properties built before 1987 the building works component would already be fully depreciated over 40 years. 
"Some domestic investors may be inclined to steer clear of new properties for this reason, in turn hurting building approvals and dwelling starts, at least while the dust settles," Wargent advised.
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Demand and prices of recent new builds to fall after 2017 Budget depreciation negative gearing changes

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Do house prices always double every decade? I ponder the well versed notion every time I compare the latest price with its earlier sale.
Sydney's most affordable weekend auction acquisition was a hefty $502,500 for a three bedroom house at Windsor, in the Hawkesbury district.
Having traded at $255,000 in 2008, its price had nearly doubled over its nine year ownership, so mark that result to yes they can.
It had traded at $257,000 in 2005, showing that prices can fall too, albeit not quite off a cliff.
And it was interesting that the cottage's price had exactly doubled in amazing quick time from $110,000 in 2000 to $220,000 in boom time 2003.
These differing price surges nicely illustrate recent CoreLogic research calculating the current boom was actually subdued compared to previous times.
Over the 10 years to January 2016, Sydney home values increased by a total 78 percent - somewhat short of the so-called benchmark doubling over the decade.  
Sitting smack on 100 percent, Melbourne was the only capital city housing market where home values doubled over the decade.
Looking at the 10 years to January 2006, Sydney home values more than doubled but the 138 per cent growth was the lowest performing capital as the 2004 price reversal hit hard.
Melbourne recorded home value growth at 167 per cent, with Perth out front with 175 percent growth in that decade.
There are lessons to be learnt from what’s happened to Perth where property valuer Gavin Heaney recently recalled boom time Western Australia thought it was "infallible."
“They say in the top end of Perth on a quiet day you can hear the property values falling,” a jocular Hegney was cited by www.news.com.au as saying last month.
Some years on after the end of the mining boom, Perth is still on its knees with financial counsellors in demand with people neck-deep in debt coming to them for advice. 
People who were earning high incomes during the mining boom are now struggling to get work and pay their mortgages.
With little wage growth and eratic economic uncertainty, it is likely that even for Sydney there are limits to what people can pay for housing.
It seems Sydney is starting to see common sense and wise economics as we move through the latter stages of the autumn auction market. 
Those many consecutive weekends of 80 percent clearance rates might be a thing of the past.
Meanwhile property investors who paid reckless prices will soon emerge as tax loss selling usually begins in May before the end of the financial year.
I will be watching for how deep they go as this is when investors crystallise capital losses.
The proportion of loss-making resales over the December 2016 quarter sat at 21 percent in Perth, while Sydney saw fewer than 2 percent resale losses.
This article first appeared in the Daily Telegraph. 
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Tax loss time for property investors to test market 

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The latest bulletin from Secret Agent charts the winners and losers in the 2017 Federal Budget with first home buyers, downsizers and renters all appearing on the winning list.
Secret Agent said in Victoria the first home super saver scheme may drive demand for property below $600,000.
"First home buyers will be able to use voluntary contributions to their superannuation to save for a house deposit," the report said.
"Withdrawals will be taxed at a lower rate, but the amount you can contribute is capped at $15,000 a year and $30,000 all up. Both members of a couple can take advantage of the scheme. 
"In Victoria, the state government will abolish stamp duty for first time buyers of homes valued up to $600,000, make cuts to stamp duty on homes valued up to $750,000, and also double the First Home Owner Grant to $20,000 in regional Victoria. 
"With the first home super saver scheme, we may see increased demand for property below $600,000. This will push up the prices of houses and townhouses in outer suburbs such as Cranbourne. Inner city suburbs will be less affected, as average prices are typically above $600,000. 
"Developers will also have to compete more aggressively for development sites that allow sub-$600,000 townhouses to be built and sold in these outer suburbs."
Downsizers 
"A person aged 65 or over will be permitted to make a non- concessional contribution to superannuation of up to $300,000 from the proceeds of selling a principal residence owned for the past ten or more years from 1 July 2018," the report said.
"This is good news for real estate agencies operating in areas popular among downsizers, such as the inner city, as there is more incentive for elderly property owners to sell their home. Developers can also benefit from creating stock in these areas."
Resident Investors 
"There will be new tax incentives for investing in affordable housing; specific incentives for Managed Investment Trust (MIT) vehicles, as well as a CGT concession for resident investors who invest in these schemes," Secret Agent said.
Renters 
"Foreign investors are being slugged with an extra charge for properties left vacant —the Budget proposes an annual levy of at least $5,000 and there will be an increase in their application fees. 
"Combined with the state government vacant tax, these additional costs may bring some rent relief and increase stock available for renters. 
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LOSERS 
Developers 
"The Budget outlines that foreign ownership of new developments will be capped at 50 percent. To fund a development project, banks normally require more than 50 percent of stock to be presold. 
"Given that many new developments, especially high-rise apartments, have traditionally been marketed to overseas buyers, limiting foreign ownership to 50 percent will put the feasibility of many projects at risk. This effect is compounded when combined with the recent state tax changes, such as the increase in stamp duty on off-the-plan purchases in Victoria. The number of construction jobs available will also decrease. 
"One silver lining is that, together with the new apartment design standards, we may finally see new stock designed to a higher quality to capture the interest of local buyers, who are now equally important to the success of a development project.
Foreign Investors 
"Foreign tax residents and temporary tax residents will no longer be able to access the CGT main residence exemption. Grandfathering will be available until 30 June 2019 for properties held prior to 7.30 pm (AEST) on Budget night. 
"The loss of CGT exemption could push foreign investors to sell their property as most of these investments are negatively geared already. This may eventually lead to disposal of the investment since it is no longer profitable. 
Investors 
"The Government has introduced two new measures to restrict the availability of deductions with respect to depreciation deduction and travel expenses, expecting to save $800 million over the forward estimates. 
"The restrictions on residential investment property deductions will reduce incentives for buyers to make new investments. The implications are more severe for high income earners, who can no longer claim as many deductions on tax. As there will be less demand for depreciation reports, qualified quantity surveyors may also be affected. 
Banks 
"The introduction of a major bank levy from 1 July 2017 could increase cost of funding for larger banks, which may seek to be compensated by increasing mortgage interest rates. "
 
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For more information, <a href="https://secretagent.com.au/">click here</a>.
 
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2017 Budget winners and losers: Secret Agent

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GUEST OBSERVER
Under pressure to tackle deepening housing affordability problems, Treasurer Scott Morrison has included various housing policy measures in his budget, some relating to Australia’s small sector of social and affordable housing.
One headline-grabber is the creation of a new entity, the National Housing Finance and Investment Corporation (NHFIC). This will source private funds for on-lending to affordable housing providers to finance rental housing development. However, the bigger issue for the sector remains federal and state funding.
This public funding is the money that, along with tenants’ rents, co-funds state and territory housing and homelessness services. Here too Morrison is proposing reform, particularly to the primary federal-state funding arrangement for social and affordable housing, the National Affordable Housing Agreement (NAHA).
A couple of months ago we suggested the NAHA needed a reboot. Recognising the seriously run-down state of the system, we argued for an increase in funding from its present starvation level. Morrison now proposes a new federal-state funding agreement, the National Housing and Homelessness Agreement (NHHA).
The level of federal funding will be the same as under the old NAHA. But the Commonwealth will press states and territories for action in defined “priority areas”. In effect, this looks like a return to a Canberra-led reform agenda for social and affordable housing unseen since the early Rudd government.
Setting aggregate supply targets
In what appears a significant passage, the budget papers reveal the government’s “priority areas” for the NHHA. We’ll consider these in turn, and then the recurring issue of inadequate funding.
Lack of transparency on the costs incurred by state and territory housing authorities in operating their social housing portfolios has been a particular problem under the NAHA. This is an area where federal engagement is welcome.
All levels of government should be pressed to quantify the level and type of need for housing in the community. And they should be made to set clear “new supply” targets for meeting that need.
That said, the federal government should stop pretending to be shocked at the lack of new social housing delivered by those authorities under the NAHA. The shortfall in NAHA funding has been obvious for years. It simply is too low to bridge the gap between the rents low-income public housing tenants can afford to pay and the costs of properly maintaining the system, let alone growing it to keep pace with rising need.
Residential land development
The stress laid on this issue within the budget policy statement reflects the federal government’s stated concern about “the supply side” of the housing affordability problem. It has framed state government planning controls as an impediment to new housing development.
However, merely loosening requirements and offering existing land owners the prospect of greater development does not ensure it will actually happen.
To ensure land owners don’t just sit on development opportunities speculatively, the federal government should use its NHHA leverage. This could include pushing the states and territories to make greater use of land tax, which would spur development and bring under-utilised land and housing to market.
Inclusionary zoning
Inclusionary zoning is a specific type of planning mechanism. It requires housing developments (above a certain size) to include some proportion of dedicated affordable housing. Ideally, this should be rental housing preserved as “affordable” in perpetuity.
Inclusionary zoning is long established in other countries and has long been demanded by housing advocates in Australia. It is now the subject of increasing interest from planning authorities – for example, the Greater Sydney Commission.
The co-financing arrangements for the NHFIC could incorporate active use of land-use planning powers for inclusionary zoning. Development sites – or developer levy proceeds – could be part of state and territory contributions to funding affordable housing development.
A commitment to build into the NHHA incentives for stepped-up use of inclusionary zoning by state governments is, therefore, very welcome.
However, the budget papers indicate that state compliance with this NHHA expectation might involve not only housing dedicated to affordable rental housing, but also “dedicated first home buyer stock”. This seems to raise the prospect of developers meeting inclusionary zoning requirements simply by reserving some newly built units for first home buyers rather than investors.
The best way to enhance first home buyer prospects vis a vis investor landlords would be to level the playing field by winding back investor negative gearing and capital gains tax concessions, not through this kind of tinkering. And to cast such “FHB reservation” initiatives as in any way equivalent to inclusionary zoning for affordable rental housing would be a highly retrograde step.
Renewing affordable housing stock
An interesting inclusion in the proposed terms of the NHHA is a clause about renewing affordable housing stock.
First, it appears positive in acknowledging the need for a public housing overhaul and indicating a new level of federal government interest in making this happen.
At a minimum, states and territories should be required to undertake a comprehensive audit of their existing portfolios. The level of outstanding disrepair has to be costed. They also should identify where renewal can best take place, balancing need for expanded and upgraded housing with sensitive treatment of existing communities.
Second, it indicates federal backing for further transfers of public housing as a growth path for the affordable housing industry. However, as our recent research for AHURI shows, this is feasible only if the operating cost gap is funded.
Past community housing growth through transfers, particularly following the 2009 housing ministers’ commitment to expand community housing to 35% of all social housing, involved an understanding that Commonwealth Rent Assistance, paid through Centrelink to transferred tenants, would help cover that gap.
Without additional funding in the NHHA, a new phase of growth through transfers requires a recommitment by governments to use rent assistance as an effective operational subsidy to community housing providers. A new target and timeframe to replace the 35 percent benchmark also need to be considered.
Homelessness services
Previously the subject of a separate funding agreement (the National Partnership Agreement on Homelessness), homelessness services have struggled for years in the face of that agreement’s pending expiry and short-term extensions.
The NHHA will fund homelessness services on an ongoing basis, which the sector has welcomed.
Funding shortfall remains
As we’ve indicated throughout, the objectives of the NHHA – and of the social and affordable housing system generally – will continue to run up against the reality that decent housing of this kind costs more than low-income households can afford to pay.
This applies especially to people living on the miserable level of benefits such as Newstart. A subsidy is required, both to build up the stock and to keep it in good order.
Clearer targets, more transparent cost accounting, and innovations like NHFIC finance won’t bridge the gap. On the contrary, to successfully use those initiatives to build more stock, both state and territory housing authorities and non-government affordable housing providers need a larger subsidy than present funding provides.
The budget has indexed NHHA funding to wages. It would be nice to think that land and housing prices will increase only in line with wages.
In reality, properly funding the growth and maintenance of our social and affordable housing stock will require more than what the federal government is offering.
Chris Martin is research fellow, Housing Policy and Practice, UNSW and can be contacted <a href="https://theconversation.com/profiles/chris-martin-203935" target="_blank">here</a>.
Hal Pawson is associate director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW and can be contacted <a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank">here</a>.
Both are authors for The Conversation.
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Budget 2017 charts new social and affordable housing agenda

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GUEST OBSERVER
An estimated 300,000 vacant dwellings across Australia will be unaffected by the Budget’s new ‘ghost house’ tax on foreign investors which will do nothing to increase housing affordability.
QUT property economist Dr Andrea Blake said Australia’s empty housing stock was an overlooked resource in an era of high demand for affordable housing.
Some inner city apartment developments have more foreign investors (20 percent) than domestic owner occupiers (19 percent).
While I welcome a vacant house levy being applied to foreign investors as a mechanism to support other affordable housing initiatives, this new tax will do nothing to help the current issues.
This levy will affect only applications for foreign investment made after 7.30pm on 9 May 2017 rather than the more than quarter of a million dwellings we have going empty.
The $5k per annum tax is unlikely to deter an overseas investor. The only thing it could do is put more money into the pot for other housing initiatives.
Another issue could be determining that an apartment is vacant and ensuring compliance.
“Foreign investment in inner and near city markets has driven supply and pushed real estate prices up while much-needed rental and housing stock from the market goes empty when we have a severe affordable housing shortage.”
Dr Blake said the impact of foreign investment on property values in the inner Brisbane apartment markets had caused much debate.
 “In markets such as Hamilton and West End we have seen a price drop of up to 30 per cent on apartments bought in 2011," she said.
This is because strong foreign investment has created a two-tier market - prices for off-the-plan sales are undoubtedly linked to foreign investment and would not be sustainable at the volume or prices for the domestic market alone.
Consequently the impact has been felt by the second tier of the two-tier market - domestic buyers.
The reasons foreign investors buy in Australia are varied. For some purchasers it is part of a future lifestyle plan and so the apartments are left unoccupied, and, in many cases, not even furnished.
“These apartments still deteriorate and bring down the value of the other apartments in the complex, causing owner occupiers and those who do rent out their properties some distress.”
Andrea Blake is senior lecturer at Queensland University of Technology [QUT] and can be contacted <a href="https://staff.qut.edu.au/staff/blakea/" target="_blank">here</a>.
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'Ghost house' tax won't solve housing affordability: Andrea Blake

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<img src="https://counter.theconversation.edu.au/content/76791/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">GUEST OBSERVER
The budget acknowledges the crisis of affordability for first home buyers, but fails to do enough about demand pressures on prices to put home ownership back within their reach.
In its 2017 budget, the federal government repeatedly stated its preference for a “scalpel” rather than a “chainsaw” or “sledgehammer” approach to demand management in the housing market.
The number of housing measures in the budget are more wide-ranging than in previous budgets of recent times. Policy levers on both the supply and demand side have been incorporated within a raft of housing measures. The government claims this is a “comprehensive package that can make a difference”.
However, do the demand measures go far enough to make much-needed inroads into the housing affordability crisis now facing an entire generation of would-be first home buyers? Or is the so-called scalpel too blunt to make a meaningful difference for them?
<h2>First Home Super Savers Scheme</h2>
The budget’s key housing measure for helping young people gain a foothold on the home-ownership ladder is to allow first home buyers to use up to A$30,000 of voluntary superannuation contributions for a deposit on their first home.
Clearly, the scheme will attract the tax advantages of superannuation. Therefore, in principle, it will help first home savers accelerate their savings to buy a home, thus bridging the deposit gap, while protecting superannuation savings accumulated through compulsory employer contributions.
However, at least two key questions are pertinent.
The first relates to how many first home buyers will likely be well positioned to make voluntary contributions to their super saving account. There appears to be a general reluctance among Australians to make voluntary contributions.
Existing research has found household budget constraints are a major barrier that make it unaffordable for many to make voluntary superannuation contributions. Poor financial literacy and lack of knowledge of the superannuation system are other factors.
The second key question relates to the scheme’s impact on property prices. The scheme does not aim to ease demand pressures in the housing market. It is likely that high house prices will not be curbed, so the prospects of home ownership will continue to fade for many first home buyers.
Existing demand-side levers, including the First Home Owners Grant and stamp duty concessions for first home buyers, have not succeeded in improving the affordability of houses for most young people. Hence, it is difficult to see how an additional demand lever such as the First Home Super Savers scheme is going to have a substantial impact on affordability.
This is not to say that the budget has completely ignored the need to temper demand tensions in the property market.
Demand pressures can be eased via measures that target two other types of property owners – older home owners and property investors. The budget does contain measures that target both groups. Yet again, the question remains as to whether the levers are long enough to produce meaningful impacts.
<h2>Targeting older owners and property investors</h2>
Older downsizers aged over 65 years will be allowed to channel up to $300,000 from the sale proceeds of the family home into their super fund.
Many older home owners are living in larger dwellings than they need after their children leave home. Helping elderly home owners – sometimes coined “last home buyers” – to downsize into smaller dwellings can free up larger homes for first home buyers in earlier stages of life who are forming families.
However, the impediments to downsizing are many. These include financial barriers but also non-financial barriers. Importantly, most elderly home owners have strong emotional attachments to their family home and local community.
However, a lack of appropriate and affordable dwellings in neighbourhoods where older owners would like to stay also poses barriers to downsizing. For downsizing reforms to be effective, financial incentives will need to be accompanied by supply-side solutions that broaden the diversity of the housing stock so older home owners’ housing preferences and needs can be met.
The government has not made any significant changes to tighten negative gearing or capital gains tax concessions to reduce competition from property investors. Concern has focused on the potential contraction of private rental housing supply should investors withdraw en masse from the private rental market. However, a longer-term perspective would take into account second-round effects.
As investors sell off their rental properties, more properties will become available in the market to meet demand from first home buyers. This will not only have the impact of easing tensions in the rental market as more renters become home buyers, but it will also encourage subsequent second property investment as young career-builders seek to accumulate more wealth in their property portfolios after securing their first home.
Such second- and third-round effects need to be incorporated more into policy thinking so that policy design rests on not just short-term, but medium-to-long-term, considerations.
<h2>Is the scalpel sharp enough?</h2>
The budget contains myriad demand and supply levers that directly or indirectly aim to assist young people with their first home purchase. It represents an overdue but welcome acknowledgement on the government’s part that much needs to be done to improve home-ownership prospects for first home buyers.
A package of measures that seeks to influence both supply and demand simultaneously in the housing market is, in principle, a sensible approach to an entrenched policy concern such as housing affordability. However, in practice, policy design matters.
In the case of the 2017 budget, it would appear that the scalpel will need a whole lot more sharpening if it is to make an effective incision into the housing affordability crisis that’s plaguing an entire generation of aspiring home owners.
Rachel Ong is deputy director of the Bankwest Curtin Economics Centre, Curtin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here</a>.
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Budget needs a sharper policy scalpel to help first home buyers: Rachel Ong

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<img src="https://counter.theconversation.edu.au/content/76793/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">GUEST OBSERVER
The bond aggregator by itself cannot create a housing development pipeline. It needs co-investment from government to make it feasible.
Following Treasurer Scott Morrison’s outburst in April over the meagre supply outcomes delivered by state housing agencies, cool Treasury heads have prevailed in the budget.
The Commonwealth has not withdrawn its support. Rather, it will negotiate clear targets under a new national agreement, and aim to ring-fence capital investment to improve social housing outcomes. This will now complement the government’s new strategy of issuing bonds to finance affordable rental housing.
Morrison has already set up a taskforce to fine-tune a new bond aggregator, which the budget proposes to roll into a larger National Housing Finance and Investment Corporation (NHIFC). Establishment funding of A$9.8 million and a $1 billion loan facility will get things moving.
This is safe policy territory and sound strategy. The social housing sector and all major parties have supported housing bonds and a special-purpose intermediary since the 2015 report of the Senate Inquiry into Housing Affordability. It demonstrates the explicit, long-term government commitment required to shore up investor confidence.
If the taskforce gets the design right, the intermediary will provide lower-cost, longer-term financing for affordable rental housing. This will mean public investment goes further and is recycled to build more affordable homes for those who need them.
Yet investment-ready social housing still has several requirements for success. These include good transparent planning, equity, revolving loans, and adequate revenue from rents and rent assistance. Appropriate national regulation is vital, which is also flagged in the budget.
However, without conditional public co-investment and good regulation, the government will miss its own targets and under-invest in this much-needed social infrastructure.
<h2>No silver bullet – feasibility depends on subsidy</h2>
The bond aggregator by itself cannot create a development pipeline. It needs co-investment from government to make it feasible.
Community housing providers can only afford the amount of debt that modest rents and rent assistance can support. Modelling for a 2016 feasibility study found that about 45% of the cost of dwelling construction can be raised when operated as social rental housing, even with the lower rate and longer term of finance the aggregator can provide.
Thus deeply affordable social housing will always require public subsidies. This takes the form of grants, soft loans, or land allocated via public land corporations or planning requirements.
<h2>Policy orphan finally gets Treasury’s attention</h2>
Writing for The Conversation, Chris Martin and Hal Pawson summed up past performance:
It should be no surprise that Australia’s social housing has been largely static for 20 years. Everything we know about the system tells us it is not funded to even cover the costs of its ongoing operation, let alone growth to meet the needs of an expanding population. Aside from a one-off boost under the 2009 federal economic stimulus plan, social housing has been on a starvation ration for decades.
National governments in Austria, the UK, France and the US have made up for shortfalls in social housing funding with good regulation and by attracting private finance since the 1990s. They have done so by establishing a market for special-purpose bonds, government guarantees, special intermediaries, tax credits and supporting circuits of investment in affordable and social rental housing.
These measures often favour not-for-profit housing providers, but can also revitalise public housing agencies.
Meanwhile, Australian social housing policy turned inward. Governments frittered away their skeletal public housing stocks, narrowly targeted the rest and diverted much-needed capital to reduce operating deficits.
This ultimately bankrupted state housing agencies, which were all but given their marching orders by Morrison in April and earlier by his assistant minister, Michael Sukkar, in February. They ran into strong opposition from community and public housing providers (and the for-profit private sector) – which are eager to play a more active role in social housing supply.
Recently, though, Treasury’s “debt and deficit” doctrine has been making way for a new vision of productive public investment to boost both economic and social development. Investment in social housing should be an integral part of urban plans. It needs to be part and parcel of every infrastructure strategy, Smart City Plan, or City Deal. Bringing housing and infrastructure together under the new NHFIC could help, within an overarching plan with strategic housing targets.
Co-operative leadership and national funding remain essential. Morrison and Sukkar seem to appreciate that a coherent and efficient approach to setting standards and creating funding certainty will induce financial institutions to invest in social housing.
<h2>Wanted: dedication to social housing growth</h2>
Investment not only reduces public housing waiting lists most directly, it ensures fairer allocation of housing opportunities. At the same time it provides a shock-absorber for the economy, especially as it transitions from the resources boom, to build more productive and resilient cities.
Social housing creates jobs for the construction industry and uses local commodities, with many social and economic spin-offs.
Well-designed social housing, such as revitalised public and green community housing mixed with a range of housing types, provides a tangible infrastructure asset and a vital community service. It’s especially important for tenants who are elderly, have disabilities, or were formerly homeless.
Emergency services, health care and homelessness shelters, among others, bear the much higher costs of neglecting these households. This ultimately harms both the budget bottom line and our social fabric.
Morrison has directed the Affordable Housing Implementation Taskforce to report on the bond aggregator in July. The taskforce comprises three senior (former) public servants. They are advised, as usual, by one of the big four accounting firms.
It must be hoped their work contributes towards a broader vision for social housing growth. It should draw on international best practice as well as AHURI’s advice on an Affordable Housing Finance Corporation. Government policy needs to embrace the notion that social housing is not only good investment but essential social infrastructure.
Julie Lawson is a Honorary Associate Professor, RMIT University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/julie-lawson-108364" target="_blank">here</a>.
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Bond aggregator helps build a more virtuous circle of housing investment: Julie Lawson

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

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