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Heritage devotees are fighting to protect one of Melbourne’s best, but least known, heritage listed modernist gems, the 1970 offices of Yuncken Freeman.
Elegantly detailed with expressed steel columns, inspired by German/US modernist master Ludwig Mies van der Rohe, the unassuming building is deemed as one of Melbourne’s purest modernist masterpieces.
Melbourne Heritage Action believes steps must be taken to better ensure a design more sensitive to the heritage listed building, with greater setbacks and a stronger separation between old and new.
They have lodged an objection to plans for 407 King Street set opposite the Flagstaff Gardens following a proposal to have a tower poking out the top.
"There is no doubt that this building is one of the lesser known but most important landmarks of modernism in Melbourne, not just the City of Melbourne," <a href="https://melbourneheritage.org.au/" target="_blank">Melbourne Heritage Action advised</a>.
It was designed by the prolific firm of Yuncken Freeman, who were the leaders in the provision of corporate modernism in Victoria in the 1960s and 70s.
"They produced a number of office buildings in variations of the latest in minimalist style, inspired by the leading modernist in the United States Mies van de Rohe and the interpretations of his ouvre by Skidmore Owings &amp; Merrill.
"It was the first of their designs to be clearly following the Mies / SOM lead, designed as their own offices."
<div id="attachment_2281" class="wp-caption alignnone" data-shortcode="caption">
<img class="alignnone size-full wp-image-2281" src="https://melbourneheritageaction.files.wordpress.com/2016/08/13963080_1142400125806547_1959695706979343493_o.jpg?w=547" alt="13963080_1142400125806547_1959695706979343493_o">407 King Street as captured by Peter Wille after its construction, courtesy of State Library 
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<div id="attachment_2279" class="wp-caption alignnone" data-shortcode="caption">
<img class="alignnone wp-image-2279" src="https://melbourneheritageaction.files.wordpress.com/2016/08/13903161_1142399949139898_6043813060399781856_n.jpg?w=679&amp;h=588" alt="13903161_1142399949139898_6043813060399781856_n" width="679" height="588">Heritage Melbourne Action sugest the proposal was far too dominant over the heritage listed office building it will use a podium.
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jchancellor-FAypfDUnLy

Mies van der Rohe-inspired 1970 office block heritage battle in Melbourne

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The Sunland Group today announced an after tax profit of $31.5 million for the full year ended 30 June 2016, an increase of 5 percent on the previous corresponding period’s $30.1 million profit.
It reported a strong balance sheet with $19.9m in cash and $97.4m in undrawn working capital lines.
The level of gearing was advised as 33 percent debt to assets and 56 percent debt to equity.
The group advised $41.2m in new site acquisitions, with a further $32m in site acquisitions in Brisbane and the Gold Coast due to settle during the first half of the 2017 financial year.
Sunland's managing director, Sahba Abedian, said the improved financial performance was a result of increased development margins, prudent capital management initiatives and the emergence of earnings from retail assets.
“The strategic portfolio replenishment and capital management efforts of recent years have continued to deliver favourable results for the Group, enabling the portfolio to benefit from the value uplift resulting from buyer demand along the eastern seaboard,” Mr Abedian said.
“These projects contributed to a total development return of 35 percent across the portfolio, significantly higher than our targeted return on cost of 20 percent.”
During the financial year it launched 10 new projects including Shea Residences in Brisbane, Magnoli Residences in Palm Beach and The Heights (pictured above) master planned community in Pimpama, further positioning the portfolio to capitalise on the improving south-east Queensland residential markets.
Sunland completed four new site acquisitions totalling $41.2m during the period in Brisbane (St Lucia and Toowong) and Sydney’s Northern Beaches (Ingleside and Warriewood).
The new acquisitions are at Everton Hills (Brisbane) and Coolangatta (Gold Coast).
The Group’s portfolio comprises 6,300 land, housing and multi-storey products with a total end value of $4.3 billion, with 16 active projects along the east coast of Australia.
During the 2016 financial year Sunland generated $235.6m in revenue from 443 property settlements compared with 2015 with $279.7m from 387 settlements.
Sales volume was down in FY16 as projects in New South Wales and Victoria were sold out during the previous year and no additional projects were released in these states.
The group pipeline of presales has 779 contracts totalling $605m as at 30 June 2016 for new projects released across the portfolio.
In late July 2016 Sunland launched the $82m mixed-use Marina Concourse development adjoining the Royal Pines Marina on the Gold Coast.
The Grace on Coronation project in Toowong has been approved by Brisbane City Council, however Sunland continues to deal with an appeal through the Land and Environment Court and a judgement is not expected until early 2017.
Construction of Sunland’s $240m luxury Abian residential tower development in the Brisbane CBD has now progressed through to level 34 and settlements are expected to contribute to the 2017 and 2018 financial years.
“While record low interest rates and improved consumer sentiment continue to drive buyer demand, we are cognisant of the cyclical nature of our industry and maintain a disciplined and conservative approach to the replenishment and delivery of our portfolio,” Mr Abedian said.
For more information, <a href="https://www.sunlandgroup.com.au" target="_blank">click here</a>.
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Sunland reports $4.3 billion development pipeline

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The Edgecliff office block - tenanted in part by Prime Minister Malcolm Turnbull as his electorate office - has been sold.
It fetched $15.67 million having been bought from Telstra for $3.865 million in 2001. 
The 287-289 New South Head Road building was formerly the Edgecliff Post Office, a landmark building at the busy corner.
It was offered by the Scarf family as a rare opportunity to own a freestanding, mixed use property.
It is a freestanding, four storey, mixed use property, offered fully leased with a NLA 1,405 sqm.
Its net income was $955,144.74 pa.
There was secure car parking for 15 cars plus a large outdoor deck area with harbour views.
The initial marketing by Ray White Double Bay suggested there was future potential for residential conversion.
It was bought by the Spyrides family from Vaucluse. 
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Malcolm Turnbull gets new office landlord in Edgecliff

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Australia’s biggest home loan lender, Commonwealth Bank, has scaled back the discounts offered on new home loans.
The Australian Broker website says it did so as it faces increased funding pressures.
The website obtained a memo sent to the broking industry in which the major lender announced it will be reducing discounts by up to 15 basis points on new Mortgage Advantage Packaged Owner Occupied and Investment Home Loan applications.
The bank advised it was not raising or decreasing its headline rates.
The changes only related to a reduction in discounts on a select number of variable rate home and investment home loan products.
The discounts were also being reduced by 8 basis points on its Three-Year Special Rate Saver, Extra Life of Loan and Extra Introductory Rate products for new owner occupied and investment home loan applications. 
The reduced discount rates apply to new home loan applications for these products from 26 August 2016.
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CommBank cuts is discount mortgage offerings

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GUEST OBSERVER
There has been extensive strata reform in NSW over the past few years<a name="x__ftnref1" href="https://outlook.office.com/owa/?realm=propertyobserver.com.au#x__ftn1" title=""></a>.  
From 30 November 2016, the new strata legislation dealing with residents living or working within strata schemes will come into force<a name="x__ftnref2" href="https://outlook.office.com/owa/?realm=propertyobserver.com.au#x__ftn2" title=""></a>.   Background While previous legislation in NSW<a name="x__ftnref3" href="https://outlook.office.com/owa/?realm=propertyobserver.com.au#x__ftn3" title=""></a> endeavoured to adequately juggle the rights of individual unit owners with the need to balance the quiet enjoyment and use of common property areas, there was ever increasing pressure from various agencies and the general public to create a modern framework, to more adequately cover current day to day issues.   What are the Changes?
There are over 90 changes that will affect at least 2 million industry professionals, and approximately one quarter of the NSW population as either strata owners, or persons living or working in strata titled units or townhouses.  While 90 legislative changes does seem a little daunting for those living, working, or administering strata complexes, extensive education measures are being undertaken to inform all members of the community about the workings and affect of the new strata laws.   This e-brief endeavours to summarize a few of the main changes, as follows: 
<ul>
<li>Model By Laws are introduced, including smoking and keeping of pets; </li>
<li>Greater participation in the decision making process by lot owners; </li>
<li>Unanimous support is no longer needed for sale of strata schemes; and </li>
<li>Less restrictions over owner renovations.   </li>
</ul>
Model By Laws
The new legislation introduces Model By Laws being suggested by-laws that an owners corporation can choose to adopt, or use to amend their current enforceable by-laws, if agreed between lot owners.   The Model By Laws specifically include such matters as smoking being a nuisance, a greater breadth of permission for the keeping of animals within strata schemes (as opposed to automatic prohibition), and greater action against persons using common property (visitor) car spaces (including Owners Corporations establishing agreements with local council).   Also, an Owners Corporation can choose to adopt a Common Property memorandum. The memorandum is designed to help lot owners of the strata complex to articulate and delineate whether the owners corporation or lot owner is responsible for the maintenance, repair or replacement of any part of the common property.   These measures are endeavouring to reduce day to day grievances between lot owners.   Greater participation in decision making process and voting
The new legislation is incorporating the use of new forms of electronic medium by allowing a strata scheme to adopt social media, video and teleconference to hold meetings. Voting will also be able to occur electronically and through secret ballots. Strata schemes will also be able to choose to distribute papers by email (rather than traditional forms of issuing notices etc).   Further, for schemes with more than 20 lots, the changes to voting have been refined to reduce the influence of a controlling minority obtaining the acquiescence of the majority, as the legislation limits the proxy votes able to be held by one person to 5% of voting members.  These changes generally make the voting regime more adaptable and fairer.  Unanimous support no longer required for sale of strata lots  
Intense development in Sydney suburbs and growth corridors meant that change was required to the sale of apartment blocks to necessitate a rapidly growing population, and the desire to develop premium land within Sydney’s central hub.     The current law allows for the termination or winding up of a strata scheme under circumstances where there is unanimous support from all owners. This is particularly burdensome.   Under the new strata reforms, only 75% of lot owners have to agree to the termination of their strata scheme which subsequently forces the remaining 25% of owners to agree to the collective sale of their apartment blocks. Lot owners will receive at least the market value of their lot (plus other costs in relation to moving).   Of course, these sorts of changes underpinned by the philosophy of ‘market forces’, also come with a myriad of concerns for some lot owners, especially the elderly or those unsophisticated property owners. In this regard, Fair Trading (NSW) is to establish a Strata Renewal Advice and Advocacy Program to provide free advice for residents needing assistance in respect to these changes.   Less restrictions over owner renovations
Currently, basically all changes to a lot require approval from both the Owners Corporation (and/or local government authorities), primarily because many of the changes to a lot also effect changes to the Common Property of the strata complex.   The strata reforms now provide a clearer method of approval for owner renovations, by waiving restrictions for minor, cosmetic changes to lots, and allowing such cosmetic changes to be able to be made without approval.   However, renovations with a more general impact (such as installing timber floors) will require a general approval of 50% of owners, and those unit renovations with lasting impacts (such as waterproofing and/or adding to the structural part of a lot) will still require approval with a special resolution, being 75% agreement of lot owners.    How does this effect you?
NSW continues to modernise strata law to fit the reality of living and working in high density community apartment blocks. The new laws incorporate traditional ideas of ‘home ownership’, incorporating additional layers of regulation to help preserve harmonious apartment living.    The ACT laws, particularly for mixed use developments, are currently under review.  It will be interesting to see if the ACT follows.   
Stephanie Lynch is partner,  Property Team, Meyer Vandenberg Lawyers and can be contacted <a href="https://www.meyervandenberg.com.au" target="_blank">here</a>.
Germaine Orreill is associate, Property Team Meyer Vandenberg Lawyers and can be contacted <a href="https://www.meyervandenberg.com.au" target="_blank">here</a>.
 
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Property 101: NSW strata reform legislation

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<img src="https://counter.theconversation.edu.au/content/63322/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Various cities in Australia have developed creative economy policies with the aim of diversifying their economy.
These policies are about attracting and retaining entrepreneurs and firms from the creative industries sector, such as the music and fashion industries.
Creative economy policies were often based on the cluster concept developed by Michael Porter in the 1990s. This was the case for the creative city strategy in Brisbane and also for the more recent music industry policy in Melbourne.
Brisbane has been very active in this area. The objective was to be less dependent on natural resources in the future.
Planning initiatives such the Kelvin Grove Village are examples of economic development strategies based on the cluster concept that translated into planned projects. But positive steps are being taken to provide affordable spaces for creative workers.
Recent research on the video game industry in Australia has shown that new technologies have greatly influenced the production of games. The industry functions as a “networked community” and not strictly as spatially bounded clusters. The use of new platforms such as the internet enables small companies to produce games from remote areas.
<h2>Industry structures are changing</h2>
The composition of the industry has changed significantly since 2006-07, with the closure of several development studios that focused on console games, such as Krome Studios. A variety of platforms – Unity 3d, mobile phones etc – is now available to game developers.
With the shift from console games to mobile phone games, the industry has changed dramatically. The nature of the demand has changed too: consumers of video games are now looking for a quick and fast experience.
Disparity Games, operating from Noosa on the Sunshine Coast, is an example of these new successful companies located outside the main cluster. The people behind Disparity Games are two video game developers working from home in an idyllic environment. The map below shows the location of video game firms in Queensland, with some of those companies operating from the Gold Coast and the Sunshine Coast.
In an interview with the author, one of the game developers explained why they decided to move their company to Noosa:
"After the collapse of large studios we decided to go indie. With the smaller indie companies, everyone is more supportive. We have meet-ups on marketing, technical issues, game testing. We are exchanging knowledge at those events, [so] we don’t need to be based in the city anymore to be part of the community."
<h2>New technologies enable new ways of working</h2>
These studios have demonstrated that self-publishing is a viable business model in Australia. Independent developers can now bypass traditional international publishers.
New technologies have thus had the effect of reducing the size of video game companies and increasing their number. This is verified in Queensland, which has become specialised in developing mobile phone games.
New technologies such as the National Broadband Network (NBN) have changed the way video game developers produce games and where they produce them. With the NBN, a small video game company can literally produce a game from anywhere.
If they already have the professional connections, developers can work on the same game with different experts located in different cities. Face-to-face interactions are important, but this does not mean anymore that video game developers need to be located in the city at all times.
In that sense, creative economy policies should think about flexible ways to accommodate creative workers in the city. The opening of co-working spaces in South Bank or the River City labs are good examples in Brisbane.
This research shows it is time to go beyond the cluster type of economic development policies to attract and retain creative workers and firms in cities like Brisbane.
Instead of planning creative neighbourhoods or districts, which are often not affordable for start-up companies, policies should aim for flexible solutions such as co-working spaces. Those are more adapted to an era in which new technologies are to a certain extent changing the geography of creative industries based on technological innovation such as the video game industry.
Sebastien Darchen is lecturer in Planning, The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/sebastien-darchen-6781" target="_blank">here</a>.
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Gaming trends show cities need to rethink how they tap into creative economy

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<img src="https://counter.theconversation.edu.au/content/64265/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
In the revolving door of economic ideas, the old can be suddenly new again. Independent Senator Nick Xenophon resurrected one such idea this week.
He said the Reserve Bank of Australia should replace its inflation target of 2-3 percent per annum with a target of nominal GDP growth of around 5.5 percent per annum.
This is more than just an armchair economics debate – it could seriously affect all households and businesses in Australia.
First, a short primer. The RBA determines the general level of interest rates that we all pay on loans and earn on deposits. It has no legislative power to directly set rates, but it might as well have because its indirect control is so precise via other legislative requirements on banks.
The RBA’s aim is to restrict inflation – the average rate of increase in prices – to a band between 2 and 3 percent over a period of years between economic booms and downturns. Why 2-3 percent? Because too much inflation is bad, and so is too little inflation. 2-3 percent is the sweet spot.
A higher rate of inflation (remember it’s an average) means some prices are going up more than others creating uncertainty about future costs and selling prices, which discourages investment expenditure. Higher inflation also encourages speculative investments in housing and other assets, which can create speculative bubbles. And as we know, bubbles can burst.
Inflation that is too low, say 0-1 percent, means some businesses are selling at prices that are stagnant or falling, but their debts are not falling. That leads to difficulty in meeting debt repayments. So if the RBA thinks inflation is heading up beyond its target, it will raise interest rates to stop households and businesses borrowing and spending, which reduces pressure on prices. If it thinks inflation is too low it will cut rates to encourage us all to borrow and spend.
Now back to Xenophon’s idea. He, and some respected economistsbefore him, think inflation is the wrong target. What if, they argue, inflation is going up only because energy prices are going up? High energy prices can’t be good news for businesses and households. So why would the RBA want to make life even harder by raising interest rates to lower inflation? Madness they say. Better to target the sum of the inflation rate plus the growth in national output of goods and services (GDP), what is called nominal GDP growth.
So if inflation is going up but output is going down because of the depressing effect of high energy prices, nominal GDP would be flat and the RBA would do nothing, neither contracting nor expanding nominal GDP growth – the right policy.
Economists are split on this and have been for years. In August 2011 The Economist newspaper decided it was a good idea, and then three months later published an article against the idea. This is not unusual in economic debates incidentally – many economic “principles” are in fact contested, as is the case for most social sciences.
One big problem with Xenophon’s idea is that the theory does not fit the times. It is not the right policy for today.
Energy prices are not going up; they have been falling and are now flat. Yes, electricity prices have been going through the roof in South Australia and to a lesser extent elsewhere. But oil prices have been falling or flat over recent years, and this has a more pervasive effect than government bungling of the electricity market.
So output growth and inflation are not moving in opposite directions – both have fallen in recent years. Inflation is now below the bottom of the RBA’s target zone of 2-3 percent on any of the alternative measures.
The RBA, along with most central banks of advanced countries, would actually like to see more inflation, not less. Annual output growth is struggling to reach 3 percent, which is below the long run average of 3.5 percent. Hence nominal GDP growth is below the 5.5 percent long-run average that Xenophon would target. So whether the RBA targets inflation or nominal GDP growth doesn’t matter – the policy would be the same – that is, stimulate spending by lowering interest rates, which is exactly what it has been doing.
Another downside is that although nominal GDP growth would be more stable, inflation would tend to be more volatile. Inflation could jump up and down, but as long as output growth moved in the opposite direction the RBA would do nothing to dampen the volatility in inflation. Volatile inflation increases the uncertainty about future prices, which inhibits investment spending by firms and households.
A bigger problem with the RBA’s inflation target that would not be resolved by adopting a nominal GDP target, is that the inflation target only refers to prices of goods and services – it ignores asset price inflation. The rapid rise in house prices in Sydney and Melbourne in recent years is a potentially serious problem that has been essentially ignored by the RBA. A better idea than nominal GDP targeting would be to include asset prices as well as the prices of goods and services in its inflation target.
And finally, if a nominal GDP target is such a good idea, then why is no country doing it? It is within the charter of most central banks to target nominal GDP growth instead of inflation, but none are, at least not formally.
Many central banks look at wider economic conditions as well as inflation. They will temporarily tolerate higher inflation when output growth, but the inflation rate remains their primary target. This flexibility seems reasonable, keeping inflation as the primary target. We would be the first to experiment with a strict nominal GDP target. Do we really want our Reserve Bank to be the world’s guinea pig?
Ross Guest is professor of Economics and National Senior Teaching Fellow, Griffith University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/ross-guest-13155" target="_blank">here</a>.
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Why some economists think the RBA should drop its inflation target

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<img src="https://counter.theconversation.edu.au/content/64297/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There is little justification in giving rich households generous superannuation tax concessions, as wealth has a limited impact on spending and wellbeing in retirement new research suggests.
Retirement income is at the core of the controversy around the federal government’s proposed changes to superannuation and yet very little is known about how retirees actually spend their money.
Our research found that, despite the large variation in the income levels of households, wealthier households spend at a similar level to those with more modest wealth.
Retiree couples aged 65-74 spent just $33,200 a year on average, while single households of the same age spent an average of only $18,400 in 2014.
These figures fall below the benchmarks set by the Association of Superannuation Funds of Australia (ASFA), which suggests a couple needs $33,784 a year to afford a “modest” lifestyle, and 20 percent lower than the $23,489 figure it benchmarked for single households in 2014.
In March, the federal government adopted the thinking from the Financial Systems Inquiry that superannuation’s objective was to provide income in retirement to substitute or supplement the Age Pension. But Treasurer Scott Morrison remains under pressure not to go through with plans to limit lifetime non-concessional superannuation contributions to $500,000.
The government appears committed to other super reforms aimed at dismantling super concessions for the wealthy, announced in its May budget.
At present retirement income needs are estimated either as a proportion of income during the working life or by using income “standards” (such as those used by ASFA) which estimate the income needed to attain a given quality of life.
Our analysis, using data from the most recent Household, Income and Labour Dynamics in Australia (HILDA) survey, shows spending levels are largely driven by cost-of-living pressures such as geographical location (with spending highest in Sydney and lowest in regional South Australia). Household structure and home ownership are also important.
It’s likely that the wealthiest households are indeed “saving” – either deliberately to ensure they can pass on their wealth to the next generation, or to self-insure against possible future aged-care and health expenses – particularly if they own their home outright.
In comparison, retirees who are in the rental market spent on average $11,500 on rent – almost 40 percent of their total annual expenditure. This points to a need for a real focus on the plight of retirees exposed to the rental market, particularly single-person households.
With a large bulk of their spending swallowed up by rent, these households appear to struggle to afford basic household items. Our analysis showed households that rely on the Age Pension as their major source of income had much lower relative spending on health care and insurance – $1,900 annually, compared to $4,300 for self-funded retirees.
Single-person households also struggled, with almost 80 percent of households unable to reach even a modest standard of living.
For these households, increases in welfare payments or housing assistance will likely have a greater impact on well-being than raising the current 9.5 percent Superannuation Guarantee to 12 percent.
On the positive side, we found that superannuation already provides a valuable source of income for younger retirees – around one-fifth of annual income for those aged 65-74. Superannuation wealth has grown enormously over the past decade. In 2014, households aged 65-74 had superannuation assets 190 percent higher (in real terms) than their counterparts in 2002.
And this huge growth in superannuation and household wealth has coincided with increases in household spending, with current retirees spending more than previous cohorts.
Further growth of the superannuation system through greater participation and the rising Superannuation Guarantee will likely see the wealth of retirees continue to grow. But until there is a clearer picture of superannuation wealth and retirement income, it will be hard to ensure superannuation reforms deliver on their objective.
Eliana Maddock is research officer, Australian Centre for Financial Studies and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/eliana-maddock-293619" target="_blank">here</a>.
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Rich and poor retirees spend about the same

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<img src="https://counter.theconversation.edu.au/content/64293/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Newly released analysis from Roy Morgan reaffirms that it is the lowest-income households that face the highest mortgage stress. And, contrary to what many might expect, the worst stress is not in Sydney and Melbourne, where property prices have hit record highs.
The Roy Morgan report estimates that 18.4 percent of Australian households are experiencing mortgage stress, a situation where over one-third of their income goes towards servicing a home loan.
Mortgage stress can lead to many complex social issues. It is considered one of the underlying causes of the Global Financial Crisis.
For many households affected by mortgage stress, defaulting is the last resort. Yet, as the mortgage-servicing pressure increases, so does mortgage risk.
Mortgage risk, the chance of a borrower defaulting, has increased to 83.2 percent for households earning under $60,000 per year. It is, however, virtually non-existent for households earning more than $150,000.
<h2>Income is more important than interest rates</h2>
The Roy Morgan report highlights the importance of income, more so than house prices and borrowing costs, to mortgage stress. In fact, interest rates would need to more than double to match the impact of a loss of income on housing stress.
The previous peak in mortgage stress was in 2008-09, a period of high interest rates and bubble-like price growth in Sydney and Melbourne.
This time around, record low interest rates appear on the surface to be counter-balancing the default rate. Yet this is tied to a stagnation in income levels.
House prices and income levels moved in step until 2013. While house prices have continued to increase, household income levels have flattened since then, when the cash rate dropped to a historic low of 2.75 percent. The cash rate is now even lower at 1.50 percent, with further cuts forecast.
The troubling prediction from this is that mortgage stress among Australian households is set to remain high, despite the current low interest rates.
<h2>Widening inequality</h2>
As home ownership concentrates among wealthier households, this report also shows that higher-income households are more resilient to increases in interest rates. This means, too, that home ownership increasingly requires a dual income.
The owner-occupied home is often referred to as the largest single asset that most households own. In countries like Australia and the USA, home ownership is promoted by government and linked to many aspects of future wellbeing. However, as recent HILDA analysis shows, owner-occupied households are becoming far less common.
The “Great Australian Dream” is expected to apply to only a minority of households next decade. With those in the already most marginalised parts of society most affected by mortgage stress, a change in the structures that incentivise home ownership is required to minimise the growing inequality gap.
<h2>Pockets of pain</h2>
The limitation with national averages is that pockets of pain are brushed over. The report drills into state-by-state analysis and metro vs regional comparisons.
While the largest mortgages across the country, averaging over $300,000, are in Sydney, mortgage stress is highest in Tasmania and South Australia.
Mortgage stress in Tasmania and South Australia sits well above the national average, as do their unemployment figures, 6.5% and 6.9% respectively, against a national average of 5.7%. Households in regional areas are also facing more acute mortgage stress than their city counterparts.
<h2>The housing market underpins the Australian financial sector</h2>
Regulators aren’t taking any chances. With nearly $1 trillion in outstanding mortgage debt, double the pre-GFC level, the 2014 Financial Systems Inquiry identified that mortgages are now a significant systemic risk. In a recent speech on the prudential regulator’s outlook, APRA general manager Heidi Richards stated that “the housing market now underpins our financial sector”.
APRA has been tightening the lending standards of the big banks. Effective from July 1, the big banks have been required to apply higher “risk weightings” to residential mortgages. These determine the amount of capital held against assets to limit the likelihood of insolvency.
The silver lining to this otherwise depressing analysis is that the risks to financial stability are relatively low. Home ownership concentrated amongst wealthier households actually means there is a high degree of aggregate resilience to changes in future interest rates and incomes.
However, the report’s focus is on current incomes. To brace for a true housing market downturn, the key will be monitoring employment and income statistics – unemployment rates as well as hours.
Danika Wright is lecturer in finance, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/danika-wright-121868" target="_blank">here</a>.
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Not on struggle street, but mortgage stress is rising

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Population growth has long been considered the key to whether house prices go up or down in the Mildura district, according to the valuers, Herron Todd White.
The biggest driver of the property market is whether the Mildura economy and lifestyle can attract people, it recently noted.
They noted data provided by Regional Development Victoria shows that in the past few years, the population of the Mildura Local Government Area has been growing at just under 1 percent per annum, compared to the Victorian state average of around 1.75 percent per annum.
The main industries in terms of employment are agriculture, retail and health care and social assistance.
"In the past two to three years we have seen an improvement in some of the key local farming industries, especially table grapes, almonds and citrus, and we are now starting to see the first shoots of an improvement in the wine grape industry.
"This confidence has increased demand for local service industries that support the local farming sector and for the next few years at least, it appears as though this segment of our local economy should grow.
"The retail sector is expected to maintain current levels of employment but is considered unlikely to grow," HTW said.
With regard to health care, Mildura has a higher than state average percentage of the population aged over 55 and is expected to continue to attract older people from smaller centres within a 300 kilometre radius due to the presence of good medical and recreational facilities and relative housing affordability.
"We feel that the local economy is currently enjoying a period of growth and that this will see our population grow at a faster rate than has been occurring in recent times.
"Housing that is attractive to retirees is expected to continue to see good demand, as will three or four bedroom homes that appeal to young families," the HTW report tipped.
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Mildura population growth set to assist housing price growth

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Jonathan Chancellor

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