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GUEST OBSERVER
Sydney property prices fell by 1.4%, marking the biggest fall in nearly five years.
Melbourne property prices fell by 3.5% in November – the largest fall in 18 months.
The CoreLogic RP Data home value index of capital city home prices fell by 1.5% in November to stand 8.7 % higher over the year. 
Dwelling prices rose in just three of the eight capital cities in November.
The performance of manufacturing index lifted by 2.3 points to 52.5 in November, the highest reading in two years. A reading above 50.0 indicates that the sector is expanding.
Production, orders, employment, exports and sales all recorded healthy gains in November.
What does it all mean?
So far so good. The second day this week of better economic data. A mild correction in property prices (particularly in Sydney and Melbourne) is a good thing, while a healthy expansion is taking place in manufacturing activity (two-year high).
The slide in capital city home prices in November marked the first fall in six months and the biggest slide nationally in 18 months. No doubt the weakness in home prices is being driven by the tightening in lending criteria by the banking sector.
In particular the concerted effort to cool investor demand or speculative home purchases is paying dividends.
Sydney house prices recorded a 1.4 % slide in November - its biggest fall in almost five years. But keep in mind Sydney home prices are still up almost 13 % over the year. 
While it was encouraging that Sydney and Melbourne prices pulled back, the perfect scenario would have been for a credible lift in prices across other capital cities.
Dwelling prices fell in five of the eight capital cities, and while “Rest of State” prices managed to lift by 0.3 % in November, annual growth holds at a paltry 2.8 %. 
This highlights the issues facing policymakers in attempting to manage a very diverse housing market. What we would expect to see is the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months.
The consolidation in home prices is unlikely to see home building dry up.
There is a record pipeline of dwelling approvals that suggest a lot of building work will take place over the next 12-24 months - supportive of a lift in activity levels over the medium term.
The rebalancing effect across the economy continues to take place.
Manufacturing activity is now expanding at the fastest pace in two years and more importantly the sub-indices like, employment, production, sales and exports are all showing a credible lift.
The results mirror the lift in manufacturing investment in last week’s business investment data. No doubt the weaker Australian dollar will continue to support the sector.
What do the figures show?
Home prices
- The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices fell by 1.5 % in November to stand 8.7 % higher than a year ago.
- House prices fell by 1.6 % in November while apartments fell by 0.9 %. House prices were up 9.1 % on a year ago and apartments were up by 6.6 %.
- The average Australian capital city house price (median price based on settled sales over quarter) was $626,000 and the average unit price was $525,000. The average Sydney house price was $950,000 – still some way off the $1 million mark.
- Dwelling prices rose in just three of the eight capital cities in November: Adelaide (up 0.7 %), Brisbane (up 0.6 %) and Perth (up 0.3 %).
- Prices fell most in Melbourne (down 3.5 %), Hobart (down 2.4 %), Sydney (down 1.4 %), Darwin (down 1.3 %) and Canberra (down 0.5 %).
- Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 12.8 %), followed by Melbourne (up 11.8 %), Canberra (up 4.5 %), Brisbane (up 4 %), Adelaide (up 3.3 %), and Hobart (up 1.1 %).
- Prices fell in Darwin (down 4.2 %) and Perth (down 4.1 %).
- Total returns on capital city dwellings in the year to November rose by 12.8 % with houses up 13.0 % on a year earlier and units up 11.4 %.
CoreLogic RP Data noted that as a consequence of the tighter lending environment for rental yields, combined capital cities investors, as well as gross rental yields being at near record lows, participation in the housing market from investors has reduced from 54.1 % of all new mortgages in May 2015 to 45.4 % at the end of September, which is the lowest level since July 2013.
Data released by APRA at the end of last month showed the pace of investment related housing credit growth fell below the APRA 10 % speed limit for the first time since September last year, with the monthly change in investment credit growth the lowest since October 2011.
According to today’s results, the slowdown comes after auction clearance rates have moderated back to the low 60 % range since the last week of October, whilst average selling time and vendor discounting rates also continue to rise from their record lows.”
Performance of Manufacturing
- The Performance of Manufacturing index lifted by 2.3 points to 52.5 in November. A reading above 50.0 indicates that the sector is expanding.
- Production, orders, employment exports and sales all recorded healthy gains in November.
<a href="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" alt="">
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>. 
 
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jchancellor-FAypfDUnLy

Sydney home prices record biggest slide in five years: CommSec Research

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The NSW Government is set to sell its Land and Property Information (LPI) unit in 2016.
NSW has JPMorgan undertaking a scoping study on the sale, according to the Australian Financial Review column, Street Talk. 
LPI provides all mapping, titles and other related land information services for NSW.
While the sale of the state's LPI would be the first sale of its kind in Australia, Victoria and South Australia are also consider selling their own land titles offices. 
</div>
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The AFR suggest that the NSW LPI is likely to be worth $500  million.
In 2014-15 some 900,000 plus dealings were lodged for registration, marking a 6.7 per cent increase on already strong volumes in the previous financial year.
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NSW LPI to be sold with $500 million hopes

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The first day of apartment sales at The Towers at Eli­zabeth Quay on Saturday secured $100 million plus in sale with about 80 apartments sold.
PRD Nationwide director Angus Murray, marketing agent for the units, said it was the most successful launch he had seen in his career - mostly been to locals, with a lot of baby boomers.
Murray hopes at least 200 of the 279 apartments sell in the coming weeks, reaping $300 million.
Real Estate Institute of WA president Hayden Groves told the local paper it was believed to be the greatest amount of money taken on the first day of sales at a Perth apartment development.
Industry sources said it could also be the first time a one-bedroom apartment in Perth had sold for more than $1 million.
Prices range from $600,000 for a one-bedroom apartment, to $12 million for the three-level penthouse.
Prices included a 54 sqm one-bedroom apartment at $783,000, about $14,500 per square metre, which is more than the $9000 Perth median.
Developer Far East Consortium is also building a 204-room Ritz-Carlton hotel.
<div><img src="https://resources2.news.com.au/images/2015/04/11/1227300/048962-015c10f4-df64-11e4-9fcd-1eb8ac734e9b.jpg" alt="New artist impressions of the Elizabeth Quay residential towers." width="650" height="366"></div>
 
More than 4000 people had registered their interest in the apartments in the early days of the project being announced.
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Perth's Elizabeth Quay secures $100 million in first day sales

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Actor Richard Roxburgh, star of Rake, and his wife, the SBS TV celebrity chef Silvia Colloca have yet to sell their five bedroom Bilgola Plateau home. It now comes priced at $1.9 million plus.
Their northern beaches modern beach-style retreat was pulled from last weekend's scheduled auction through James Baker at Raine and Horne Palm Beach.
With views over Pittwater,<a href="https://www.realestate.com.au/property-house-nsw-bilgola-121101482" target="_blank"> the modern two level home on Lower Plateau Road </a>was initially marketed to fetch around $2 million. The couple added a deck off the master bedroom since paying $1.62 million in 2009.
They are planning on staying on the northern beaches.
This article was first published in the Saturday Daily Telegraph. 
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No sale yet for Richard Roxburgh and Silvia Colloca at Bilgola Plateau 

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GUEST OBSERVER
The big drop in the Australian unemployment rate grabbed the headline this week. Headline inflation, at 1.5% (year-on-year) below the RBA’s target band of 2-3%, remains well contained and GDP growth, at 2% annualized, soft.
The CAMA RBA Shadow Board on balance prefers to keep the cash rate on hold, attaching a 67% probability to this being the appropriate policy setting. The confidence attached to a required rate cut equals 22%, down four percentage points from the previous month, while the confidence in a required rate hike has risen slightly to 11%.
According to the Australian Bureau of Statistics, Australia’s unemployment rate fell in October from 6.2% to 5.9% though the accuracy of recent ABS numbers is questionable. Employment, both full time and part time, has expanded and the participation rate reversed its recent decline. These are all positive signs.
The Aussie dollar continues to trade around 72 US¢. Yields on Australian 10-year government bonds have risen, most recently to 2.82%.
The outlook for the Australian property market has not changed appreciably. At this stage, it appears that the property market is cooling gently, preparing for a soft landing, rather than an abrupt correction. As predicted, the S&amp;P/ASX200 continues to move sideways around the 5200 mark.
Global markets are preparing for the US Federal Reserve to raise the federal funds rate during its last FOMC meeting of the year. Given the most recent rhetoric by the Federal Reserve Bank Governor Janet Yellen, this looks more likely than ever. Recent US growth data have surprised on the upside and other US economic indicators point to a healthy economic expansion. On the other hand there remain risks to the global economy. These include geopolitical tensions, following the terrorist attacks in Paris, as well as economic risks associated with emerging countries’ excessive debt levels.
Consumer and producer sentiment measures continue to paint a motley picture. After successive drops, the Westpac/Melbourne Institute Consumer Sentiment Index rose for a second month in a row, to 102 in November, from 97.8 in October. Business confidence, according to the NAB business survey slid further, fell again, from 5 to 2. The AIG manufacturing and services indices, leading economic indicators, both fell.
The Shadow Board’s confidence that the cash rate should remain at its current level edged up from 65% in November to 67%. After last month’s noticeable shift, the confidence that a rate cut is appropriate has dropped again to 22% (26% in November); the confidence that a rate increase, to 2.25% or higher, is necessary has risen to 11% (9% in November).
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 2% is nearly unchanged at 23% (24% in November). The estimated need for an interest rate increase has slightly increased, to 60% (58% in November), while the need for a rate decrease has slipped to 17% (19% in November). A year out, the Shadow Board members’ confidence that the cash rate should be held steady is unchanged at 18%, while the confidence in a required cash rate increase equals 67% (unchanged from November) and in a required cash rate decrease 16% (15% in November).
<a href="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%209.42.19%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%209.42.19%20AM.png" alt="" width="747" height="443">
To see the report in full, <a href="https://cama.crawford.anu.edu.au/rba-shadow-board/outcome/2015-12" target="_blank">click here</a>.
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No need for holiday season rate cut: RBA Shadow Board

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GUEST OBSERVER
The current international tax regime was developed in the last century when the internet was not yet invented.
At that time, a foreign company would typically require a substantial physical presence in Australia before it could be in a position to earn significant amount of income from Australian customers. This is what’s known in the tax world as permanent establishment.
The concept of permanent establishment is embedded in most domestic tax laws as well as virtually all the 3,000 plus tax treaties in the world. It dictates that in general, business profits of a foreign company will be subject to tax in Australia only if the company has a permanent establishment in Australia. In other words, the ATO cannot tax a foreign company’s profits if it has no permanent establishment in Australia.
The recent hearings of the Senate inquiry into corporate tax avoidance made it clear the tax structures of Uber, Airbnb, like their older peers Google and Microsoft, are designed to ensure income from Australian customers is earned by a foreign company that does not have a permanent establishment here. The permanent establishment concept is not effective for today’s digital economy.
<h2>Uber’s business and tax structure</h2>
Take Uber, which though established in the US, has a wholly-owned subsidiary in the Netherlands, which in turn has a wholly-owned subsidiary in Australia.
The most important asset of Uber is its digital platform that supports the app linking individual drivers and their customers. It’s unlikely this app was developed in the Netherlands. Despite this, Uber-Netherlands has the right to book income generated from customers in Australia.
For example, if a customer pays $100 for a ride in Sydney booked through the Uber app, the money is in fact paid to Uber-Netherlands. Out of the $100, Uber pays the driver about $75. The gross profit of $25 is booked in the Netherlands. This is so even though the transaction happens largely in Australia, including the driver, the customer and the ride.
Uber-Australia receives a service fee from Uber-Netherlands for its marketing and support services performed in Australia. The fee is determined based on the operating costs of Uber-Australia, plus a mark-up of 8.5%. The mark-up is effectively the taxable profit of Uber in Australia under its tax structure.
<h2>Airbnb’s business and tax structure</h2>
Airbnb, another young business founded in the US, has a structure very similar to that of Uber. Airbnb’s parent company in the US has a wholly-owned subsidiary in Ireland, which in turn has a wholly owned subsidiary in Australia.
Airbnb charges fees to both hosts and guests for accommodation booking through its digital platform. Instead of Airbnb-Australia, Airbnb-Ireland books the fee income generated from accommodation bookings in Australia. This is so even if the host, the guest and the accommodation are all in Australia. For example, if a Sydneysider uses the Airbnb app to book accommodation in Melbourne, the payment is in fact paid to Airbnb-Ireland. The host of the accommodation is then paid by Airbnb-Ireland which charges a fee of 3%.
Airbnb-Australia is responsible for the marketing activities in Australia. It receives a service fee from Airbnb-Ireland for those activities, and the fee is again computed based on its operating costs plus a mark-up.
<h2>Déjà vu – Google and Microsoft</h2>
Comparing the tax structures of Uber and Airbnb with that of Google and Microsoft reveals striking similarities. It suggests that the appetite for tax planning is comparable between established and relatively “young” technology companies.
The common pattern: a parent company in the US establishes wholly owned subsidiaries in market jurisdictions (such as Australia) as well as in low-tax countries.
While the commercial reality is that all companies in a group are effectively one single enterprise, the tax law in general treats each company as a separate taxpayer.
On one hand, the Australian subsidiary typically is responsible for marketing and support services that have to be physically done in Australia, and earns a service fee on a cost plus basis. The amount of profits subject to tax in Australia is usually very small compared to the income generated from Australian customers.
On the other hand, intellectual properties – which are often the most important and valuable assets of technology companies – are located in low-tax jurisdictions such as Ireland, the Netherlands and Singapore. This structure allows those low-tax subsidiaries to book the income generated from customers in Australia, and effectively shields the income from the Australian tax net.
<h2>Policy responses</h2>
Action item 1 of the OECD’s base erosion and profit shifting (“BEPS”) project is “tax challenges of digital economy”.
The original intention of the OECD was to explore how the 20th century international tax regime should be reformed in response to the digital economy in the 21st century. It quickly realised it was extremely difficult, if not impossible, to achieve international consensus on the intended reform. The often conflicting and vested interests among countries present a formidable obstacle to international consensus on meaningful reform of the international tax regime.
Instead of relying on the BEPS project to resolve the issue, Australia has followed the lead of the UK and is in the process of introducing the Multinational Anti-Avoidance Law – commonly known as the Google tax– to address the issue. As the new law incorporates concepts that are new and untested, it is not clear whether it will be effective.
In any case, it’s important to remember that multinational corporations are very agile. They may replace their “avoided permanent establishment” structures to circumvent any Google tax or to incorporate new tax avoidance tools.
 
Antony Ting is associate professor, University of Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/antony-ting-117958" target="_blank">here</a>.
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How Airbnb are reducing their Australian tax bill

Australia’s links to China set to broaden: HSBC's Paul Bloxham

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Officialdom decided last December that property investor lending needed to be restrained given the emerging trend of more money being lent to investors than owner occupiers.
The Australian Prudential Regulation Authority introduced a cap on allowable growth in bank lending on residential investment loans.
This eventually impactful decision got lost amid the seasonal Christmas break, and further from mind when the Reserve Bank of Australia cut the cash rate to 2.25% at its opening February 2015 meeting.
Growth in credit extended to investors had increased by 10% during 2014, right on the APRA threshold for its intended stricter scrutiny of lending practices.
Owner-occupier credit growth had at around 5.5%.
Of course APRA was technically not targeting house price levels – but rather setting benchmarks for a safer banking system.
The early 2015 auction competition saw no handbrake in the battle between home buyers and investors.
Reaching fever pitch, clearance rates peaked in March at 82%, according to CoreLogic RP Data, with properties typically knocked down at record prices especially in cheaper outer Sydney districts where auction had never been the normal means of sale.
It was soon obvious that the subtle backroom macroprudential measures needed to be intensified.
The jawboning by the RBA and APRA became more emphatic. The banks were told to look at loan-to-valuation ratio limits which made it harder to get an investor loan. Interest only loans became a rarity. Off the plan buyers were told they'd need to fund 20% of their apartment purchases. Finance approvals for house and land lots were being delayed until preliminary works had been completed. One bank even stopped all new lending to investors.
Events and issues then combined that further unnerved the housing market. There were signs of a retreat in foreign buyers as Treasurer Joe Hockey launched his crackdown on overseas buyers who were boosting prices in select suburbs. Financial inquiry chief David Murray raised the prospect of negative gearing reform. Doubt was cast over the future of self managed super funds being able to borrow.
In May Treasury secretary John Fraser warned that Sydney was in a housing bubble. The RBA governor Glenn Stevens wasn't wrong in June when he said some crazy prices were being paid. 
Against a backdrop of high household debt, subdued income growth and fluctuating unemployment, the negativity clincher came after the banks raised home loan rates in mid-October given long foreshadowed rules forcing banks to hold larger loss-absorbing capital buffers.
By this time the entire Sydney property market was primed to be spooked. Auction clearance rates - which are a good sign of market sentiment and price growth - swiftly fell in the outer suburbs dipping sometimes into the 40s. Traditional auction hotspots, Sydney's inner west and eastern suburbs then took fright too.
Buyers just were not as prevalent - especially investors - and those who turned up kept their bidding restrained.
It is not quite lights out for the investor, but it has been getting darker, was how the valuation firm Herron Todd White has described the turn of events.
"We see the will is still present, but the ability to finance the dream is diminishing,' its November review advised as APRA's measures now extend well beyond the Sydney market into regional NSW.
The Australian Prudential Regulation Authority (APRA) recently released Quarterly Authorised Deposit-taking Institution (ADI) Property Exposures for the September 2015 quarter showing the slowing in lending to investors. The publication contains information on ADIs’ commercial property exposures, residential property exposures and new housing loan approvals. 
Key statistics for ADIs (excluding Other ADIs) for September 2015 were:  
<table border="1"><tbody>
<tr>
<th id="header1"> </th>
<th id="header2">September 2014</th>
<th id="header3">September 2015</th>
<th id="header4">Change</th>
</tr>
<tr>
<td headers="header1">Total commercial property exposures</td>
<td headers="header2" align="center">$224.5 billion</td>
<td headers="header3" align="center">$240.4 billion</td>
<td headers="header4" align="center">+7.1%</td>
</tr>
<tr>
<td headers="header1">Commercial property exposures within Australia</td>
<td headers="header2" align="center">$185.8 billion</td>
<td headers="header3" align="center">$201.1 billion</td>
<td headers="header4" align="center">+8.2%</td>
</tr>
<tr>
<td headers="header1">Total domestic housing loans</td>
<td headers="header2" align="center">$1,243.3 billion</td>
<td headers="header3" align="center">$1,354.8 billion</td>
<td headers="header4" align="center">+9.0%</td>
</tr>
</tbody></table>
 Key statistics for ADIs with greater than $1 billion in housing loans for September 2015 were: 
<table border="1"><tbody>
<tr>
<th id="header1"> </th>
<th id="header2">September 2014</th>
<th id="header3">September 2015</th>
<th id="header4">Change</th>
</tr>
<tr>
<td headers="header1">Number of housing loans</td>
<td headers="header2" align="center">5,086.7 thousand</td>
<td headers="header3" align="center">5,422.8 thousand</td>
<td headers="header4" align="center">+6.6%</td>
</tr>
<tr>
<td headers="header1">Average balance of housing loans</td>
<td headers="header2" align="center">$240,000</td>
<td headers="header3" align="center">$246,000</td>
<td headers="header4" align="center">+2.5%</td>
</tr>
<tr>
<td headers="header1">New housing loans approved in the quarter</td>
<td headers="header2" align="center">$84.8 billion</td>
<td headers="header3" align="center">$95.0 billion</td>
<td headers="header4" align="center">+12.0%</td>
</tr>
</tbody></table>
The Australian Prudential Regulation Authority data on showed the value of loan approvals for property investors fell to $32.39 billion in the three months to September 30 down from $40.55 billion in the June quarter.
Loans to property investors made up around 35 per cent of new lending approved in the September quarter, the lowest in the past two years, and down from around 43 per cent in the June quarter.
Analysts however are treating the data with some caution as <a href="/news/rba-concerned-at-inaccuracy-of-housing-lending-data-by-banks">several banks have been busy reclassifying billions of dollars in home loans</a>.
This article was first published in the Saturday Daily Telegraph.
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The APRA impact on 2015 property investment

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A Victoria Supreme Court has upheld an injunction temporarily halting the sale of Tasmanian dairy business Van Diemen's Land to a Chinese backed company.
Moon Lake is headed by Chinese businessman Lu Xianfeng who made an unconditional binding offer to VDL owner, New Zealand-based New Plymouth District Council.
But the offer is subject to approval by the Foreign Investment Review Board.
Earlier this month the VDL indicated it was selling to the Tasmanian company TasFoods Limited in a $280 million cash and share deal.
However, NPDC's investment arm, Taranaki Investment Management Limited, announced subsequently it had sold the farm in a "commercially superior" deal.
The NewZealandfarmer.co.nz speculates it is $300 million.
The case is back in court this week.
VDL is effectively owned by the New Plymouth District Council in New Zealand and the council’s interests are managed by Taranaki Investment Management Limited (TIML).
TasFoods Limited, formerly OnCard International Limited, has retained Allan Myers QC and Andrew Broadfoot of counsel, instructed by Norton Gledhill.
The Van Diemen’s Land Company has dairy operations in the far North-West of Tasmania with some 25 dairy farms. Thirteen of the farms are in Woolnorth and another 12 in other areas of Circular Head. It milks about 19,000 cows to produce between 90 and 100 million litres of milk, or 7.7 million kilograms of milk solids, a year.
There are about 150 staff employed on its own properties, including those share-farmed.
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Van Dieman's Land dairy sale dispute

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Tim Mackay, principal of financial advice firm Quantum Financial, says property investors struggling to pay higher demanded deposits on off the plan purchases through their SMSFs need to be careful they do not breach Australian Taxation Office rules.
Abrupt lending policy changes on required deposit has meant some buyers have lost out on valuable tax deductions given the top up deposit balance was a non-concessional (or after-tax) contribution. 
His other recommendations to Australian Financial Review readers included:
<ul>
<li>Consider if the investment is worth keeping. It might be worth cutting losses rather than losing generous tax concessions or being forced to liquidate scheme assets on unfavourable terms;</li>
<li>Reduce costs;</li>
<li>Sell other assets in the fund to reduce the debt;</li>
<li>Contribute more to your super – either through personal contributions or salary-sacrificing (making pre-tax contributions);</li>
<li>Seek a better deal on your loan;</li>
<li>Review existing advice and question how it allowed you to get into mortgage stress.</li>
</ul>
Last week it was suggested one in three off-the-plan Bankstown district investors are facing financial distress completing purchase of their properties because of tough new lending rules for higher deposits.
Chan &amp; Naylor partner Peter Ristevski's analysis suggested he had not had anyone's sale fall through yet with second mortgages being secured at higher interest rates.
Financial planner Sam Henderson, chief executive of Henderson Maxwell, says he thinks buying a property using SMSF was a great idea for a solid long-term strategy, but only for the right people and under the right conditions. 
"The idea of an off-the-plan development diminishes my excitement owing to potential onerous sunset clauses (whereby developers can change the terms and price), banks altering their lending criteria between exchange of contract and settlement, developers potentially going bust and the common issue of being surrounded by scores of similar properties in overdeveloped suburbs," he suggested to AFR readers.
"Consider, for example, that you buy a $700,000 property and put down your 10% deposit of $70,000.
"Let's assume the bank has agreed to fund your loan of 80% (thereby allowing you to use $140,000 of your fund as a deposit) and that you will fund the stamp duty via your next contribution of $30,000.
"Let's say the bank changes its view on SMSF loans and drops its LVR (loan to value ratio) so it will lend to 60 per cent, as many of the banks do for commercial properties.
"Well, you've just done your $70,000 deposit!"
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Off the plan SMSF investors face challenges under higher deposit era

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

[smartcode_project:default project_id=134800 project_image_fid=351535]

Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Jonathan Chancellor

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