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The majority of apartments in Melbourne are failing to meet all the minimum requirements, according to Secret Agent’s latest report.
Secret Agent said compared recently built apartments with the Better Apartments Design Standards and found inner Melbourne's apartments lacking.
"What we found only confirmed our intuitive assumptions of inner Melbourne’s apartments: they’re generally hard to live in,” the report stated.
"Of the 3000 apartments that were surveyed only 9 passed.
“While our full report dove into detail about each standard, this bulletin sums up the results of the overall study to shed light on the bigger picture (see Table 1).
<a href="https://www.propertyobserver.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%2012.11.00%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/03/Screen%20Shot%202017-05-03%20at%2012.11.00%20pm.jpg" alt="">
"We sampled 3000 apartments built in the last 6 years across 21 suburbs in Melbourne.
"Overall, 99.7 percent (2,991 apartments) failed to meet all the minimum requirements.
"Only 9 apartments passed the seven standards we assessed (main bedroom dimensions, smallest bedroom dimensions, living room dimensions, private open space, windows, room depth, storage).
"Out of these, 4 were 1 bedroom units, and 5 had 2 bedrooms,” the report advised.
The group then went to list the errors or faults that they found in the surveyed apartments.
Private open space
94.2 percent (2,826 apartments) had balconies that were too small, or had none at all.
Bedroom and living room dimensions
92.3 percent (2,770 apartments) were too small in terms of both bedrooms and living rooms, failing to meet all minimum dimensions.
Accessibility
84 percent (2,520 apartments) had either bathrooms or corridors that were too small. These failed accessibility standards.
Natural ventilation
70 percent (2,100 apartments) were not well-ventilated. Most of these only had windows on one side of the apartment, with the opposite wall facing the internal corridors.
Windows
52 percent (1,560 apartments) did not provide adequate sunlight to bedrooms. More than half of our sample either had no windows to their bedrooms, or had ‘snorkel’ windows that were deeper than allowed.
Room depth
15.6 percent (468 apartments) were too deep, reducing natural light in parts of the living and dining areas,” the report stated.
For more information, <a href="https://secretagent.com.au/">click here</a>.
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jchancellor-FAypfDUnLy

Majority of Melbourne apartments fail to meet minimum requirements: Secret Agent

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The 2017 Budget may make downsizers delay the sale of the family home - and not just because the new scheme doesn't start until July 2018.
Individuals who are already 65 and thinking of selling their home have been urged to consider putting off a sale at least until the legislation has been approved so they don't miss out on an opportunity to top up their super accounts, tax advisers said. 
Under the proposal, retirees will each be able to inject up to $300,000 of the proceeds from the sale of the family home into super, three times the new annual limit for post-tax contributions.
They will be able to make the contribution even if they have more than $1.6 million in super savings with any amount over $1.6 million needing to be placed in an accumulation rather than a pension account.
While financial advisers have expressed doubt the scheme would be widely used by retirees looking to downsize, there is another likely delay within the mix.
Australians in their late 50s or early 60s could also be expected to delay the sale of the family home if they are confident of becoming self-funded retirees.
Individuals in their late 50 and 60s might also decide to delay a sale of the family home until they turn 65, if they have other assets that they would like to get into super in the interim.
Of course any net proceeds from the sale of the family home will still be included in the assets test for the age pension, which Mark Beveridge, director of Superfund Partners, told The Australian Financial   Review was a major barrier for many retirees wanting to move to a smaller residence.
Following the changes to the pension rules that came in effect in January, for every additional $100,000 of assessable assets, an age pensioner stands to lose $7800 a year of CentreLink income.
Yesterday Property Observer reported on how the budget encourages older residents to downsize.
Last month Property Observer reported on how downsizing will be an important topic in the Budget.
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Budget may make downsizers delay big family home sale for a year or even longer

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<img src="https://counter.theconversation.edu.au/content/77101/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The measures in the 2017-18 Federal Budget targeting the supply of lower-cost rental housing are limited.
There are no significant funding increases to social housing and homelessness services. There is no increase in rent assistance to help low-income renters in the private rental market.
Capital gains tax and negative gearing settings remain largely untouched, and the proposed bond aggregator will support expansion of housing aimed at very specific groups. 
For the majority of Australia’s renters, housing will remain unaffordable, insecure and out of reach.
<h2>Community housing</h2>
If private investors get on board, the bond aggregator may help boost the supply of affordable and community housing by providing cheaper financing to community housing providers.
These two forms of housing are extremely important. However, they do little to help most renters.
Eligibility requirements for community housing mean many who require low-cost housing, where rent is calculated at between 25 percent and 30 percent of household income, are not able to gain access.
Single older women are among the fastest-growing group of homeless people in Australia. However, most are unable to access community housing because the only eligibility benchmark they meet is their low-income status. 
Women not leaving situations of domestic violence or who do not have a recognised disability will find it difficult to qualify for housing before they reach homelessness.
The private rental market these women face is obscene. There is extremely low housing security with the risk of eviction when the standard lease agreement (of six and 12 months) runs out. High rents place sufficient, nutritious food out of reach of their budget, and they face difficulties paying power bills.
Time spent bringing up children, the gendered pay gap and – for some – relationship breakdown are among the factors that lead to this housing experience.
Long waiting lists for social housing and eligibility restrictions mean this year’s budget proposals are likely to fail this group.
<h2>Affordable housing</h2>
The second target of the bond aggregator is affordable housing. This is housing that is rented at between 75% and 80% of market rent. It is often described as “key worker” housing, where teachers, ambulance drivers and police officers can live.
Affordable housing has an important place in the housing system. However, below-market rents in central, work-rich regions are still extremely high and out of reach for many.
Of more concern, it is unlikely that many of these lower-income workers would be able to maintain their high rents at retirement. This generates two risks:
<ul>
<li>
that the renter is evicted and forced to find housing on the private market, which puts them at high risk of homelessness
</li>
<li>
that the housing provider continues their commitment to house the tenant securely once their income drops, so the risk here is to the housing provider’s bottom line. They will face a loss of income, as they drop rents from 80% of market value to around 30% of the retired person’s pension.
</li>
</ul>
<h2>First home buyers</h2>
The budget tips its hat to first home buyers; prospective buyers will now be allowed to save up to A$30,000 at a reduced tax rate. But this is barely one-quarter of a standard 20% deposit for most apartments in Sydney.
Renters who aspire to home ownership and have sufficient income to service a mortgage may benefit from this measure. However, it will do little for the large number of low- and moderate-income households. For this group, spiralling housing costs put home ownership well out of reach.
It is also possible that this measure will add to inflationary pressure on housing prices by boosting demand for entry-level homes. Existing owners who are selling their homes would be the primary beneficiaries.
<h2>What’s missing?</h2>
There remains a need for courageous government action to tackle the structural inequities in the housing market. 
Removing tax incentives that keep investor heat in the market will be essential – and so will increases to social housing budgets.
Investment in a large stock of secure low-cost social housing should be prioritised. Failing this, there will be a need to increase rent assistance payments, particularly in high-cost regions. 
But this is far from ideal. More rent assistance will help renters in the short term, but amounts to a subsidy for private landlords in the long term.
<h2>Does the government care?</h2>
Underpinning much budget analysis is a sense that government should be concerned with the needs of the disadvantaged. Sociologist Keith Jacobs argues we should disavow ourselves of that view, describing housing policy in Australia as a “form of reverse welfarism that exacerbates social inequality”. 
Jacobs argues:
… the state should be understood as an agency that sustains the conditions necessary for the finance industry, developers and real estate agents, along with well-off householders and landlords, to reap profits.
The failure of the 2017 budget to tackle tax measures that support individual private investment, and its emphasis on funding social and affordable housing through market investment mechanisms while providing little direct support at the bottom end of the market, does little to challenge this argument.
Emma Power is senior Research Fellow, Geography and Urban Studies, Western Sydney University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/emma-power-250930" target="_blank">here</a>.
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Is this the budget that forgot renters?

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GUEST OBSERVER
Stop eating smashed avocado. Stop taking overseas holidays. Live with your parents, save harder and set your sights lower – why don’t you just buy an apartment? The advice to millennials about how to afford the Australian dream of home ownership is as gratuitous as it is patronising.
New research from CoreLogic shows that owning an apartment as a “forever home” is largely a myth in Australia and not much of an option for millennials who are increasingly dependent on their parents for help to enter the property market.
The Perceptions of Housing Affordability Report identifies that while 72 percent of us live in houses, apartment dwellers make up just 15 percent of the population. Add to that duplexes and townhouses and the number of people living in shared title accommodation is still small at 28 percent. 
The data also shows there are just over 152,600 units currently under construction across Australia – 85 percent more than the decade average and virtually double the 30 year average. 
So why don’t millennials just buy into this cheaper housing stock?
There are multiple reasons. The first is that the data also shows that apartments – despite their lower prices when compared to houses - are still significantly more expensive and harder to afford than 15 years ago. The price to income ratio of apartment ownership across Australia is currently 6.6x income for units now compared with 4.8x 15 years ago. Back in 2002, it was not unheard of to snap up a unit within 10km from the city for under $300,000. Now, in Sydney and Melbourne, the figure is closer to $750,000.
The second reason is that saving for a unit is equally difficult. It now takes 1.3 years of average annual income to save the deposit for an apartment compared to 1 year back in 2002. And that’s not “just put some money aside for a year and a bit”. That means put every cent you get into a saving account until you reach 20 percent (and then save some more to cover stamp duty and other costs). You can see therefore for those who want to eat, put petrol in their car or have a roof over their head in the meantime, the time it takes to pull a deposit together can blow out.
According to the CoreLogic research, the biggest impediments preventing Millennials from buying a property are most likely to be finding the deposit (49 percent), interest rates (44 percent) and a combination of certainty of employment and getting loan approval (41 percent each).
The third reason is that the majority of stock currently under construction is not actually intended as long term occupancy. Most is high rise units and most developments currently under construction are one and two bedrooms, making it more suitable to investors and singles, rather than young families. 
Developers are building to where the demand is. Investors have historically comprised of 33 percent to 40 percent of housing demand however the latest data from the Australian Bureau of Statistics shows investors comprised closer to 50 percent of new mortgage demand nationally. 
Despite the emphasis on “rentvesting”, Millennials are the least likely to own an investment property (12 percent) compared to 19 percent for Gen X and 18 percent for Baby Boomers. Investment properties are also more likely to be owned by families with children living at home. It turns out investment properties are most likely to be owned by families with children aged 5-17 (22 percent), indicating that property is an important family investment strategy.  
So simply legislating to reduce the numbers of investors in the market so owner occupiers can step in, needs to be carefully managed. Investors affect the availability and therefore cost of rental accommodation and as we move through an unprecedented ‘boom’ in apartment construction, investors play a critical role in absorbing new unit supply and ensuring off the plan sales transition smoothly to settlement.  
All of this means that cashed up Baby Boomers and late Gen Xers, who are more likely to have paid off their home, more likely to have significant equity that they are looking to invest, and more capable of raising a deposit are the property winners if they are capable of servicing a mortgage. 
But there is no such thing as a free smashed avocado breakfast. The cost of this bounty will are children who stay at home longer with 21% not expecting now to move out until they are at least 30 and a further 38 percent expecting to move out between 25-29. 
Waiting til Mum and Dad either pop off the perch and leave them an inheritance, or stump up to help them fund their move, is now a real option for 30% of Australians, meaning housing affordability really is becoming a life/death issue.
 
Kylie Davis is the head of property services marketing at CoreLogic and the author of the CoreLogic Perceptions of Housing Affordability Report 2017. She can be contacted <a href="https://solutionsblog.rpdata.com/author/kylie-davis/" target="_blank">here</a>.
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Millennials, apartment living and the myth of smashed avocado: Kylie Davis

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SPONSORED POST
Savills has recently unveiled the findings of its 2017 Tech Cities research programme, which aims to understand the diverse factors that make places good locations for the tech sector. 
The Tech Cities programme currently measures 22 global centres against more than 100 individual metrics, but for the first time in 2017 Tech Cities has also considered how each city performs on buzz and wellness.
Cities attract young tech talent who increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office. The Tech Cities ‘buzz and wellness index’ specifically looks to capture these qualities and identify the liveable cities that deliver what this demographic desires by measuring ‘buzz’ (i.e. nightlife, entertainment and cultural offer), ‘wellness’ (i.e. pollution levels, quality of parks, healthcare, commuting times) and the cost of living (excluding property costs) in each location. 
These new metrics have seen some changes to the cities included in the programme, with Melbourne appearing for the first time as the top tech city in Australia. When looking specifically at buzz and wellness, Melbourne ranks 16th on city buzz, 13th on cost of living and 3rd for wellness.
The trade-off between buzz and wellness
Cities with high buzz scores tend to have great bars, clubs, restaurants, shops, music venues and museums, and radiate excitement and creativity. 
But buzzy cities can have downsides: being popular on a world stage tends to lead to high property and living costs, and can lead to overcrowding and congestion. This could lead to younger generations of talent increasingly looking for something different as more young workers aim to strike a better balance between living in fun, energetic cities and maintaining their physical and mental health. Buzz alone may not be enough to attract these potential workers to a city, many of whom are either already employed or are looking to start careers in tech and its related industries.
That’s why it’s also important to look at wellness in a city - low crime and pollution rates, quality parks and public spaces, and low congestion. Copenhagen, Stockholm and Melbourne are at the top of this list.
While there’s often a trade-off between ‘buzz’ and ‘wellness’, Amsterdam and Toronto balance the two. Occupiers looking to attract the new generation of talent therefore need to pay close attention to such factors when looking for new locations
Looking at the future, we suspect it is these cities which can balance both factors (representing shorter commutes, easier access to amenities and a better work/life balance), that will move up the rankings in future iterations of Tech Cities.
City Buzz and Wellness index
<a href="https://www.propertyobserver.com.au/images/2017/05/08/Buzz-and-wellness-Index-2017.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/08/Buzz-and-wellness-Index-2017.jpg" alt=""> 
City Buzz + Wellness + Cost of Living index*
<a href="https://www.propertyobserver.com.au/images/2017/05/08/City-buzz-wellness-index-separate-2017.jpg" target="_blank">Click to enlarge</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/08/City-buzz-wellness-index-separate-2017.jpg" alt="">
*Each of the three components is weighted then averaged together to get the final index score.
Source: Savills World Research, Tech Cities 2017. 
More Information
<a href="https://www.savills.co.uk/tech-cities" target="_blank">Savills Tech Cities</a> 2017 programme aims to understand the diverse factors that make places a good location choice for the tech sector; examining 22 global centres which have thriving and growing tech industries, home grown start-ups and incubators, and are at the top of global shopping lists for tech companies looking for space in which to locate. 
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>.
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What buzz and wellness mean to a tech city: Savills 

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An ATO rule was introduced to catch foreign sellers taking money overseas.
But it was applied to all Australian sellers of $2 million-plus properties - and will now cover all sales above $750,000 in an expanded audit which will also catch local hidden black market property sellers.
The rule classifies all sellers as overseas investors unless they get a special tax clearance.
That means that all buyers of $750,000 plus properties must deduct 10 percent from the purchase price and pay that amount to the Australian Taxation Office (ATO) unless the seller can furnish a tax clearance. 
The rule will affect everyone, including Australians, despite being aimed at overseas investors taking their property windfalls overseas.
The measure can be traced back to the days when former treasurer Joe Hockey caved into pressures to curb Chinese investment in Australian residential property in 2015.
In the process, the treasurer was convinced by the Australian Taxation Office to widen the net to cover local residents.
According to an ATO fact sheet, in May 2013, the government announced that it would introduce a 10 percent non-final withholding tax on payments made to foreign residents who dispose of certain taxable Australian property with a market value above a specified $2 million threshold.
The new legislation for this measure became law in February 2016.
The $2 million rule applied to vacant land, buildings, residential and commercial property, leaseholds and strata title schemes.
The ATO website says, "The government is strengthening our foreign resident capital gains tax (CGT) regime to assist in the collection of foreign residents' liabilities."
A purchaser who does not receive a “clearance certificate” from the vendor and does not send 10 per cent of the purchase price off to the ATO will be liable to pay that 10 percent to the ATO plus
In the majority of cases, local resident vendors will have no problem obtaining a clearance certificate, but it might increase the risk of a tax audit for property sellers who:
<ul>
<li>Have not filed tax returns for many years;</li>
<li>Have filed tax returns, which would indicate they could not afford such a property;</li>
<li>Are selling their residential house at the same time as their neighbours to a single developer, which may give rise to a profit making scheme (such that the principal residence capital gains tax exemption may not apply to the value uplift generated by selling the properties together); or</li>
<li>Where the ATO has gathered information that indicates the vendor is in the business of developing property, which means that the principal residence capital gains tax exemption may not apply.</li>
</ul>
It was inevitable that over time, the ATO would shift their audit target identification processes to lower than $2 million-plus property vendors.
If the vendor has a tax debt, the application for a “clearance certificate” may in some circumstances involve the ATO seeking to recover some or all of that tax debt from the purchaser by way of a garnishee notice. 
In June of last year Property Observer reported on the obligations for seller and buyers for $2 million plus clearance certificates.
Similarly in June last year Property Observer reported on new legislation on the sale of $2 million plus homes.
Property Observer also reported in May last year about the upcoming ATO legislation that will affect sales of $2 million.
Property Observer commented on how the new ATO rule on property deals for $2 million houses will affect Chinese buyers.
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All $750,000 plus property sales to be caught in ATO audit aimed at overseas investors

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GUEST OBSERVER
The Federal Government has achieved a good balance between encouraging more housing supply as well as policies that make housing more affordable.
Federal Treasurer, Scott Morrison, has carefully balanced the need to boost housing supply with policy levers that make housing more affordable in this year’s budget.
To unlock housing supply the budget allocates $1 billion for critical infrastructure along with $70 billion for transport infrastructure while working with the states to reform planning systems to speed up development.
To encourage more affordable housing the budget has lifted the Capital Gains tax discount to 60 percent where private investment is made in affordable housing.
This will be a real incentive for the development industry to invest in this area particularly if the bond aggregator through the National Housing Finance and Investment Corporation is available to the private sector.
The proposal to have Managed Investment Trusts to develop affordable housing to hold for rent for more than ten years is another positive move.
The proposal to encourage older people to downsize from large houses through allowing up to $300,000 from the sale of a house to be invested in a superannuation fund is a good way to facilitate this process.
By not overacting in the areas of negative gearing and the potential to reduce capital gains tax reductions on property, the Government has clearly understood the sensitivities in the role of investors in maintaining a viable rental housing market.
To pull policy levers in an aggressive manor could lead to a devaluation in the main asset that many families rely on in their own home.
The establishment of the Western Sydney Airport Corporation with funding of $5.3 billion to drive this important game changer project for Sydney is important in maintaining the momentum for this giant project.
The allocation of $1.7 billion through the Asset Recycling Fund to the Sydney Metro project will help progress this important infrastructure that will underpin where new urban development can be located in metropolitan Sydney.”
We are impressed with the careful balance the federal budget has achieved between stimulating much needed housing supply while developing policies that help with housing affordability.
As indicated in the budget papers the state governments will now need to reform their planning systems to ensure more homes are built more quickly for Australian families.
The Federal Government in working with the states on planning reform must question why New South Wales standards for apartments are so much higher than those in other states.
The well-meaning but expensive standards in the NSW Apartment Design Guide are adding around $100,000 to the cost of an average apartment above that of other states.
The Urban Taskforce is keen to work with the federal and state governments to achieve reforms to planning systems that can speed up development.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI">here</a>.
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2017 Budget a good balance for housing supply and affordability: Chris Johnson

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Young first home buyers willing to save are the big Budget winners thanks to a simple superannuation top-up scheme that offers generous tax breaks.
The Budget also offers the elderly an incentive to down-size homes with tax breaks too.
Treasurer Scott Morrison has shown no restraint on taxing foreigners either – which is a big revenue earner.
And Aussie investors will lose travel expense claims when they inspect their investment property interstate. This measure will save about $200 million annually.
The headline housing measure kicks in from July 1 when the first-home buyer can salary sacrifice into their super account above their already hefty compulsory contribution.
For Sydney buyers, there’s an issue with the low cap as The First Home Super Savers Scheme limits total contribution to $30,000 per person or $60,000 a couple, so the bank of mum and dad will still be needed to get anything close to Sydney’s median $990,000 house or $740,000 unit.
Regular super contributions remain off limits. But certainly it’s better than money in the bank, as Treasurer Scott Morrison calculates most will accelerate savings by 30 percent.
The measure will cost the government about $65 million annually. The downsizing incentive is calculated to cost about $10 million annually, with a delayed 2018 start.
Unfortunately, this mean it would be premature to expect a flood of five bedroom houses hitting the market any time soon.
Taxing foreigners in many ways is the revenue treat in the Budget, which could turn them away.
Capturing the $5000 plus annual tax on vacant properties owned by foreigners – the so-called ghost home tax – will be tricky. Though they could start by looking at the lights off in Haymarket.
This article was first published in the Daily Telegraph.
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Super idea in 2017 Budget for first home buyers

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<img src="https://counter.theconversation.edu.au/content/77316/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
It’s unsurprising that in the lead-up to this year’s federal budget there was a lot of discussion about housing affordability as its centrepiece.
Over the past 20 years price-to-income and price-to-rent ratios have doubled. Sydney’s price-to-income ratio is over 12, making it the second-least-affordable city in the world. Melbourne is in fourth place.
And in a budget tableau as bland as this one, it wouldn’t have taken much to really play up the housing affordability policies.
Yet the measures in this budget involve not much more than tinkering.
On the minus side, the biggest announcement was a “first home super saver scheme”, which would allow voluntary contributions of A$15,000 per annum and A$30,000 in total (per person if in a couple) to superannuation for prospective first home buyers from July 2017. These could be withdrawn and taxed at 30 percentage points below the normal marginal rate and used for a deposit.
This will cost the government A$250 million over four years and do absolutely nothing to help first home owners. We have seen this movie before, with 50 years of first home owner grants in one form or another. All that happens is that this subsidy goes into the price of existing housing. Sellers benefit, buyers get no joy.
It’s bad economics, somewhat costly, and a cruel hoax on prospective home buyers who are struggling with an out-of-control housing market.
But the biggest minus of all was the absence of any measure whatsoever to address negative gearing and CGT exemptions for rental properties. Sorry, there is one: you now won’t able to deduct an airfare to the Gold Coast to “inspect” your rental property. The government has boxed itself in on this, with Labor having taken a plan to the last election to tackle both of these issues (full disclosure, the Labor plan bears a good deal of resemblance to my McKell Institute plan).
Nonetheless, it is reflective of the state of our politics that the one thing that could really help the most (and which the PM has agreed with very publicly in the past) is off the table.
But the measures aren’t all bad. On the plus side, there were incentives for people over 65 to downsize by allowing A$300,000 of the proceeds of a sale of their main residence to go into their superannuation, above the controversial A$1.6 million cap announced in last year’s budget.
Will the budget encourage older Australians to downsize? Maybe. One measure of how powerful an incentive it will be is that it costs only A$30 million over the four-year forward estimates period. This is not a big government spend.
It’s also unclear whether it will be a large enough financial incentive to overcome the emotional and psychological barriers to moving from the family home after many years in it. There was also a conspicuous absence of reforms to stamp duty, which is a major impediment to downsizing.
There was also good news on affordable housing with the establishment of the National Housing Finance and Investment Corporation (NHFIC). It will provide A$63.1 million over four years to operate a so-called “bond aggregator” that aims to provide cheaper financing for community housing providers. This is a good idea that should have a positive effect, and help address the high cost of funds that often plagues financing of housing for low-income earners.
Consistent with the recent populist policy announcements by this government, foreign purchasers of Australian properties were targeted in this budget. There will no longer be a capital gains tax (CGT) exemption for primary residences of foreign and temporary tax residents, and the grandfathering will only last until June 30 2019. There will also be a lower threshold for CGT withholding (A$750,000, down from A$2 million) on foreign tax residents, and the rate will be increased from 10 percent to 12.5 percent.
There were some wishy-washy words about the crucial issue of housing supply. The government has definitely identified the key role that supply plays. They are proposing a variety of “city deals” to provide incentives for zoning reform — especially in western Sydney. That’s all good, but whether it is anything more than the budget-summary feel-good headline - “Working with the states to deliver planning and zoning reform” - remains to be seen.
There was also the announcement of a tax on foreign owners who leave their properties vacant. This is supposed to raise A$16.3 million over four years — which is a rounding error in the scheme of things.
We had a housing affordability crisis before this budget, and we will have one after it. If the first step to recovery is acknowledging that one has a problem, then the government is still on step one.
<a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">Richard Holden</a> is a Professor of Economics and PLuS Alliance Fellow at UNSW and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Government tinkering with housing affordability in 2017 Budget: Richard Holden

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GUEST OBSERVER
The 2017-18 Budget has a welcome focus on housing affordability and infrastructure.
Subdued wages growth is keeping revenue collection down contributing to a slight deterioration in near term deficit projections (a deficit of $29.4bn for 2017-18) but a return to surplus is still projected for 2020-21. 
This year’s Budget should be positive for confidence.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.24.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.24.06%20AM.png" alt="">
The impact on the RBA and the shares is likely minimal. 
The 2017-18 Budget has much to make it popular. In fact, the goodies make it almost feel like a pre-election rather than a post-election budget. The transformation from the austerity to end “the age of entitlement” of the 2014 budget to the “fairness, security and opportunity” of this Budget has been profound.
Key budget measures
As always, most of the key new measures were pre-announced or leaked. On the spending front, the goodies include:
A further ramp up in infrastructure spending (by an additional $20bn over the forward years) including Western Sydney Airport, inland rail &amp; various road projects.
Extending the small business $20,000 asset write-off scheme and working with states to remove red-tape.
A housing package: first home buyers can save via their super for a deposit out of pre-tax income (up $30,000), retirees who downsize get exemptions from super limits, more stringent rules on foreign investors (eg, vacant home tax), encouraging the supply of low cost community housing and rewarding states for boosting supply.
Increased spending on health through committing to fully fund the National Disability Insurance Scheme and reintroducing Medicare rebate indexation. 
Removal of the “zombie” welfare cuts.
$18.6bn over ten years in extra school funding (Gonski 2.0). This has been offset by various savings, including:
Increased university fees.
An increase in the Medicare levy by 0.5 percent from 2019.
A 0.6 percent levy on the major banks with liabilities over $100bn.
More measures to curtail the cash economy and improve the integrity of the tax and welfare system.
Little change to the deficit outlook
Despite a temporary boost to corporate tax revenue from a bounce in the iron ore price, extra spending and soft personal tax collections on the back of weak wages growth means the near-term budget deficit outlook is a bit worse than MYEFO and $2.3bn worse over four years compared to last year’s budget.
The return to surplus has been maintained for 2020-21 and looks better at 0.4 percent of GDP. After a 2016-17 budget deficit of $37.6bn, the deficit for 2017-18 is forecast to be $29.4bn (1.6 percent of GDP). 
With the Government offsetting all new spending with savings, the actual policy impact on the economy this year and next is trivial (see the red figures in the table above). However, the projected decline in the budget deficit in the years ahead means that fiscal policy will still be acting as drag on growth. 
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.25.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.25.02%20AM.png" alt="">
Economic assumptions
The major economic assumptions underpinning the Budget are shown in the next table. Most of the assumptions look reasonable, except that the assumption that wages growth rises to 3.75 percent over the next four years looks too optimistic given unemployment is not expected to fall much. The iron ore price is still expected to average $US55/tonne over the next four years. This looks reasonable albeit the recent volatility in the iron ore price highlights the uncertainty around it. 
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.26.08%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.26.08%20AM.png" alt="">
Assessment and risks
The goodies and the focus on fairness in the Budget should provide a bit of a boost to confidence and spending. But the risks around the projected return to surplus remain huge. Australia still has a budget deficit problem.
Government spending surged 25 percent between 2006-07 and 2008-09 to combat the GFC and this has never been unwound. While our net public debt to GDP ratio is low compared to the US, Europe and Japan, comparing ourselves to a bad bunch is dangerous. The Budget is projecting a 12 year run of deficits totalling 27 percent of GDP which swamps the deficits of the 1980s and 1990s.
And this is without the deep recessions of the early 1980s and 1990s! Rather we have achieved this thanks to a combination of ramping up spending on a whole range of things without facing up to how they will be paid for.
Unfortunately after 102 quarters without a recession there is no support for hard-nosed economic reform in Australia and this also applies to reforms to limit spending growth. So we continue to rely inordinately on assuming the best to drive revenue up.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.27.14%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.27.14%20AM.png" alt="">
 
This is evident in the Budget’s projections for average revenue growth of a whopping 6.7 percent per annum over the next four years. Such optimistic assumptions have disappointed in recent years and the biggest risk now is that wages don’t accelerate as assumed leading to continuing poor personal tax collections.
While the Budget still projects a return to surplus by 2020-21, it remains pretty thin and the budget deficit projections over the next two years actually take us further away from a surplus not closer. The trouble is we don’t have a lot of flexibility to provide stimulus should the economy turn down. While the 2017-18 Budget should help us keep our AAA sovereign rating for now, the risk remains high that we lose it at some point. 
On infrastructure, the Budget has much to commend it. Infrastructure spending can help short term growth, boost long term productivity and can actually “crowd in” private investment. Increased public investment is helping to offset weak private investment (see the next chart) and the infrastructure commitment in the Budget will help ensure this continues. 
In this regard, the move to report a “net operating balance” in this year’s Budget is welcome and there is much merit in focusing debt on capital spending and not recurrent spending. But debt is still debt and there is always the risk some of the infrastructure projects turn out to be white elephants resulting in “good debt” becoming “bad”.
Finally, it’s commendable to see housing affordability being a key part of this Budget. Certainly the measures are to be welcomed, particularly those helping first home buyers, downsizers and measures to boost supply. Getting housing supply up on a sustainable basis is critical so the key is for the Federal Government to follow through with its plan to incentivise states to meet housing supply targets.
Implications for the RBA
While this Budget should provide a boost to confidence (albeit not for university students), ongoing fiscal tightening will act as a mild drag on growth in the years ahead. As such, it’s hard to see major implications for the RBA. In fact recent data on trade and retail sales continues to point to more risk of a rate cut than a rate hike in Australia this year.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.28.13%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.28.13%20AM.png" alt="">
Implications for Australian assets
Cash and term deposits – with interest rates remaining low, returns from cash and bank term deposits will remain low.
Bonds – a major impact on the bond market from the Budget is unlikely. With five year bond yields at 2.2%, it’s hard to see great returns from sovereign bonds over the next few years.
Shares – the potential boost to confidence from this Budget could be a small positive for the Australian share market. Overall, the Budget’s impact is unlikely to be huge. Construction stocks may be beneficiaries and banks losers.
Property – the Budget’s housing affordability measures may have an impact on home prices over time if they incentivize states to ramp up supply, but it’s likely to be marginal in the short term. We continue to expect momentum in the Sydney and Melbourne property markets to slow.
Infrastructure – the ramp up in infrastructure spending should in time provide more opportunities for private investors as many of the resultant assets are ultimately privatised.
The $A – the Budget alone is unlikely to have much impact on the $A. With the iron ore price falling back again, the interest rate differential in favour of Australia continuing to narrow and the $A still too high, the downtrend in the $A is likely to resume.
Concluding comments
The 2017-18 Budget has a sensible focus on housing affordability and infrastructure. The main risks remain around the revenue assumptions and when we will get back to surplus. 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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After 102 quarters without recession pragmatism and fairness rule in 2017 Budget: Shane Oliver

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Joel Robinson

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

Jonathan Chancellor

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