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The opening statement made by Lindsay David for the House of Representatives Standing Committee on Economics Inquiry into Home Ownership.
To be frank, the evidence suggests that on the back of irrational exuberance, Australia is experiencing what can only be described as a classic debt-financed speculative housing bubble with every metric that evidenced the bubble in the US and Ireland present within our economic system today.
To put things in perspective, between the June quarter 1996 (when real housing prices first began to rise) and the December quarter of 2014, real housing prices rose by approximately 131%.
But over this same period, inflation rose by 60%, our population grew by 30%, real GDP by 79%, real rents by 21% and real household income by 39%. In short, the growth of housing prices has completely outstripped all economic fundamentals except for the expansion of household debt.
Over the same period, total household liabilities boomed from 54% relative to GDP to 118%. And today, Australian households now owe creditors close to $2 trillion and rising. Never has our household sector been as indebted as it is today.
Between 2002 and mid-2015 the mortgage books at the Big 4 banks, NAB, ANZ, CBA and Westpac grew by 388%, 435%, 475% and 554% respectively.
In 2002, just the size of the mortgage books at the Commonwealth Bank and Westpac combined was equivalent to 18% of GDP. Today, its stands at 44% of GDP and continues to rise.
In 2002, the mortgage book of Westpac suggests that for every dollar it had loaned to an owner occupier, it had lent 45 cents to property investors. By April 2015, the proportion rose to 81 cents.
It is truly surprising these patterns of rapid growth have not been of profound concern to the RBA, APRA or Treasury over this thirteen-year period for where data is freely available and states the blatantly obvious.
Australia has spent the better part of fifteen years avoiding the primary reason as to why house prices have boomed above fundamentals such as rents, incomes, inflation and GDP – which happens to be debt-financed speculation.
Our grossly undercapitalized, overleveraged, foreign funds-reliant banking system has artificially stimulated demand for real estate in what is an unaffordable market by consistently lending irrational sums of debt to owner-occupiers and investors. The public is also caught up in a mania of irrational exuberance, which combined explains why housing prices across Australia are as high as they are today. The evidence outlined in our submission suggests this to be the case.
To put it into perspective how expensive land is across Australia, you can find cheaper blocks of land per square meter on the hills of Malibu, California with a view of the Pacific Ocean than you can find in locales like Alice Springs or St Marys. Representatives, this is not normal, and quite frankly, laughable if the matter was not so serious.
For too long, Australian policymakers with authority and regulatory power have ignored all the warning signs pointing to a credit-fuelled housing bubble. Yet, over the years have implemented various policies to stimulate the price of housing and the rapidly growing risk home owners and property investors accumulate in order to keep house prices abnormally high whilst making various interventions that stick out like a sore thumb every time household credit expanded below a perceived comfort level.
LINDSAY DAVID is the author of <a href="https://blog.australiaboomtobust.com/2015/02/lindsay-davids-new-book-print-central-bankers-bubble-now-available/">Australia: Boom to Bust and Print: The Central Bankers Bubble.</a> David holds an MBA from IMD Business School and recently founded <a href="https://www.lfeconomics.com/about">LF Economics</a>.
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LindsayDavid-WEhfyLvNJJ

A classic debt-financed speculative housing bubble: Lindsay David

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When it comes to house prices, 99.9% of Australian’s believe that because demand outstrips supply is the prime reason as to why house prices in Australia are as high as they are. Unfortunately, the greatest flaw in this theory is that the assumption is that when it comes to the housing market that banks and debt do not exist. 
In other words, just because there are a large sum of buyers seeking to buy a house relative to the available (sufficient) supply that the price can climb infinitively.
Lets look at two hypothetical property markets as an example.
<table style="width: 269px;"><tbody>
<tr>
<td width="139"> </td>
<td width="65">City A</td>
<td width="65">City B</td>
</tr>
<tr>
<td>Median Household income</td>
<td>$70,000</td>
<td> $70,000</td>
</tr>
<tr>
<td>Median House Price</td>
<td>$210,000</td>
<td> $700,000</td>
</tr>
</tbody></table>
 
Now here is where Australian society has made a dangerously flawed assumption. The Australian herd assumes that just because a city such as the hypothetical City B has a significantly higher house price that there is less housing stock available in the marketplace relative to demand than City A. And based on this assumption that supply is incredibly limited that homebuyers are able to magically come up with the necessary funds (based on the absolute assumption that desperation to secure a roof over their head is higher in City B v City A) available to purchase a median house at 10x the median income without debt.
What the overwhelming majority of the Australian public… (including the economists at the big banks and RBA) dont understand ‘or will not acknowledge’ is that it is almost near impossible for housing in both City A and City B to be as expensive as it is even if there was screaming demand relative to the available supply without banks and debt.
But when banks in one city are prepared to lend more than banks in another city relative to incomes, you will generally find house prices are higher in the city where the banks lend more.
<table style="width: 301px;"><tbody>
<tr>
<td width="157"> </td>
<td width="69">City A</td>
<td width="75">City B</td>
</tr>
<tr>
<td>Median Household income</td>
<td>$70,000</td>
<td> $70,000</td>
</tr>
<tr>
<td>Median House Price</td>
<td>$210,000</td>
<td> $700,000</td>
</tr>
<tr>
<td>Deposit</td>
<td>30%</td>
<td> 20%</td>
</tr>
<tr>
<td>Total Deposit</td>
<td>$63,000</td>
<td> $140,000</td>
</tr>
</tbody></table>
 
Now as per the above, if the banks in City A are only willing to lend households 210% of their income to purchase a home, that would mean there is a good chance (give or take a few % points) that the median household would only be able to acquire a maximum of $147,000 of debt (on top of their deposit) to purchase a house.
Theoretically, even if there was an actual dire shortage of houses available in the marketplace, you would find that more often that not the only way to drive house prices higher would be if the median homebuyer was able to come up with a larger deposit.
Lets assume that the median homebuyer in City A were to come up with an $70,000 deposit versus a $63,000 deposit. It would mean that the homebuyer would be able to pay $7,000 above the median house price. But in City B there is a distinctive difference (spread) between the median income generated by the median household and the median house price when compared to City A. 
All things being equal between the two cities where there are just as many homebuyers in each city desperate enough to get into the housing market. If the banks in City A are only willing to lend a median income homebuyer $147,000, but in City B banks are willing to lend a median to homebuyers $560,000, which city do you expect to have higher house prices if both property markets share the exact same level of demand?
So the next time you hear a chief economist from one of the major Australian financial institutions mention the importance of supply and demand– remember, they (and the banks they work for and lend significant sums of debt to homebuyers year after year) assume that the banking system has no involvement whatsoever in the housing market and has not made an impact on the price of a house through flooding the housing market with debt.
Artificial leveraged demand created by the Australian banking system in what is a nation where housing is completely unaffordable is what drives prices in Australia sky high. Funny how no major financial institution, research agency or government entity such as Treasury or the RBA will never address the demand side of the Australian housing market. Just the good old, ‘we have a housing shortage’ and the population is desperate… creating artificial desperation. <a href="https://blog.australiaboomtobust.com/wp-content/uploads/2015/05/Australian-Consolidated-Private-Gross-Debt1.jpg"> </a>
Lindsay David is the author of <a href="https://www.amazon.com.au/Australia-Australian-Credit-Property-Bubble-ebook/dp/B00JJ7UW0S/ref=sr_1_1?ie=UTF8&amp;qid=1410612321&amp;sr=8-1&amp;keywords=australia+boom+to+bust" target="_blank">Australia: Boom to Bust</a> and  <a href="https://www.amazon.com/Print-Central-Bankers-Lindsay-David-ebook/dp/B00TMHEDBY/ref=sr_1_1?ie=UTF8&amp;qid=1423979661&amp;sr=8-1&amp;keywords=print+the+central+bankers+bubble" target="_blank">Print: The Central Bankers Bubble</a>. David recently founded <a href="https://www.lfeconomics.com/" target="_blank">LF Economics</a> and holds an MBA from IMD Business School.
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Artificial desperation: Lindsay David

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If APRA enforce’s the assessment of a new mortgage holder’s ability to pay down their mortgage obligations the right way, it would cause a heavy blow to the Australian economy. The base assumption is that mortgage stress starts when more than 30% of household income is used to pay down the mortgage. Most households with new financing are already experiencing this stress at record low rates.
In Australia’s instance, and based on after tax income, households would only be able to borrow 3.64x the household income (unless the household already has other debt commitments) if the 7% servicability rule was to be property enforced. The only way to safely assure that new mortgage holders would be able to absorb 7% interest on a new mortgage is if it is based on the ability of the mortgage holder to manage 7% interest rates after income tax and all other debts taken into considerations have been factored in….unless you allow for dodgy measurements which Australian lenders are good at using.
<img src="/images/2015/05/25/lf_economics.jpg" alt="">As the above figure illustrated, this would mean one heck of deleveraging event in Australia if new borrowers borrow significantly less than the previous borrowers which would break down Australia’s Ponzi household lending business. Had the RBA not taken abnormal measures to save the housing market now on two occasions in the last seven years, Australia would not be in this problem so far down the road. Until then, hardly a shred of chance APRA will act tough. Like it’s associates at the RBA, talk is talk and data is data. And both have been managing a bubble, not an economy. That’s what the data tells us.
Lindsay David is the author of <a href="https://www.amazon.com.au/Australia-Australian-Credit-Property-Bubble-ebook/dp/B00JJ7UW0S/ref=sr_1_1?ie=UTF8&amp;qid=1410612321&amp;sr=8-1&amp;keywords=australia+boom+to+bust" target="_blank">Australia: Boom to Bust</a> and <a href="https://www.amazon.com/Print-Central-Bankers-Lindsay-David-ebook/dp/B00TMHEDBY/ref=sr_1_1?ie=UTF8&amp;qid=1423979661&amp;sr=8-1&amp;keywords=print+the+central+bankers+bubble" target="_blank">Print: The Central Bankers Bubble</a>. David recently founded <a href="https://www.lfeconomics.com" target="_blank">LF Economics</a> and holds an MBA from IMD Business School. He blogs at <a href="https://blog.australiaboomtobust.com" target="_blank">Australia Boom to Bust.</a>
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APRA won't act tough, just talk on property investor lending: Lindsay David

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GUEST OBSERVATION
If I were an Australian central banker, politician, bank economist, or even a negatively geared property investor, I’d be telling you Australia has a chronic housing shortage, which is responsible for our sky-high housing prices. But as an independent macro researcher, the data tells me otherwise.
The best method to determine whether a surplus or deficit of housing exists is to compare the flow of new net dwellings to new net households. This has given rise to the LF Economics Dwelling Supply Index, which tracks the supply and demand trends since June 1996.
Using the most conservative estimates to err on the side of caution by biasing downward the number of dwellings while biasing upward the number of new households, the data tells us the following:
<ul>
<li> In September 2014, Australia had a net cumulative excess supply of at least 165,000 dwellings.</li>
<li> This surplus is equivalent to more than one year’s supply at current population growth rates nationwide, and about three years for the most oversupplied state, Victoria.</li>
<li> Australia’s dwelling oversupply peaked in June 2006 at 349,000 dwellings.</li>
</ul>
Western Australia, Queensland and Northern Territory are the only states undersupplied, given the rapid influx of population to service the mining sector. This is reflected in both the continuing net deficit of dwellings relative to households and strong rental price growth. These metrics are now reversing as the mining boom unwinds.
This illustrates the classic case of supply and demand: when the index shows a persistent surplus, rental prices remained subdued. During the global financial crisis, however, rental prices surged as a genuine shortage occurred because of a moderation in construction and heightened population growth via net overseas migration. Unlike capital prices, rents cannot be leveraged, so they demonstrate the true supply and demand situation.
If there were such a dire shortage of housing as the housing cheerleaders suggest, property investors en masse would not be negatively geared in a record low interest rate environment. This tells us leveraged speculation has generated “artificial” demand that has absorbed a wealth of the supply.
Sydney and Melbourne are today’s prime examples. Unfortunately, it is only when the tide rolls out that the masses realise no such housing shortage exists. Miami and Dublin are excellent examples.
The numerous global housing price booms of the 2000s were written off by government, industry and the economics profession as a failure of inadequate housing supply and a rapidly growing population. The facts later demonstrated these booms were actually gigantic asset bubbles, spectacularly crashing and revealing mass overbuilding.
A tiny fraction of the 15,000 professional economists in the United States managed to correctly identify that their housing price boom represented a bubble and was not the result of a dwelling shortage. Relative to scale, Ireland was no different. And it appears Australia’s economists are following suit by falling into the same trap of illogic.
It is easy to see why Australia’s housing lobby places the blame for high prices on government regulations and dwelling shortages: it’s an easy and a much safer explanation than admitting the real cause to be debt-financed speculation – a bubble. Indeed, as of September 2014, Australia has the world’s third-most indebted household sector relative to GDP, edging closer to Denmark (1st) and Switzerland (2nd).
Unfortunately, the faulty narrative is maintained by government and industry, whose experts have numerous unresolved conflicts of interest.
Lindsay David is the author of <a href="https://blog.australiaboomtobust.com/2015/02/lindsay-davids-new-book-print-central-bankers-bubble-now-available/">Australia: Boom to Bust and Print: The Central Bankers Bubble.</a> David holds an MBA from IMD Business School and recently founded <a href="https://www.lfeconomics.com/about">LF Economics</a>.
This article first appeared on <a href="https://www.prosper.org.au/" target="_blank">Prosper Australia</a>.
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Melbourne and Sydney are in housing oversupply: Lindsay David

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GUEST OBSERVATION
In recent times there have been a lot of arguments in the public domain on whether Australia should get rid of the negative gearing tax tool for property investors.
Negative gearing is a valuable tax tool in any economy to help companies that make investments reduce their risk-burden by allowing them to make tax deductions against losses incurred where the revenue of the investment does not cover the loan costs.
In other words, allowing the investor short-term tax relief in the investment they make, or long-term relief when an investment does not turn out to be as rewarding as anticipated (a lousy investment).
However, in Australia, negative gearing has unfortunately been used as a speculative tool to help property investors cover their losses throughout the time of holding a particular asset so they are able to eventually flip the asset for a profit.
There are two key problems with this mindset:
<ol>
<li>Using negative gearing in pursuit of capital gain only works when the investment appreciates in value greater than the overhanging costs involved in maintaining the liabilities of the asset whilst under ownership.</li>
<li>If there is a market correction, those who hold negatively geared assets in pursuit of capital gain generally get burnt.</li>
</ol>
Unfortunately with so many Australian property investors incredibly negatively geared, it would be economic suicide to get rid of this tax tool overnight. Getting rid of negative gearing today would simply burn too many property investors at the same particular time causing mass damage to the Australian economy.
With the majority of negatively geared property investors earning less than $100,000 per year, it would simply send too many Australians into bankruptcy too quickly. In economic downturns, negatively geared property investors would progressively suffer which would slow the pain burden.
If anything, they should keep negative gearing for property investors, however introduce resourceful tools to mediate property investors from taking advantage of a tax law where they are willingly prepared to take excessive risk where it is all but mathematically certain that they will incur losses for a very prolonged period of time. This forces investors to invest responsibly whilst reducing tax losses.
My recommendation is property investors with loan to value ratio (LVR) greater than 50% void from making any tax deductions against the first 2% of rental yields (or equivalent to property price paid).
This would force property investors to shift their focus from speculating mode to yield-hunting mode. It would also push those who are taking an abnormal amount of risk in the name of capital gain to offload their properties to reduce fiscal losses which increases tax revenue by billions of dollars. Furthermore, this approach would reduce the risk profile of property investors in a downturn.
Lindsay David is a co-founder of clean technology company GreenRigCo and a former strategy and business development consultant. You can read his blog <a href="/expert-insights/finance/fire-the-rba-governor">here</a>.
To purchase a copy of his book 'Australia: Boom to Bust', <a href="https://blog.australiaboomtobust.com/buy-australia-boom-bust/" target="_blank" title="Buy Now">click here.</a>
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Let's end the madness of negative gearing

&nbsp;

A local Australian has spent a Lower North Shore record $15.1 million at <a href="https://www.apartments.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, the new TOD above the recently opened Crows Nest Metro Station.

The buyer amalgamated a penthouse and sub-penthouse to create the triplex apartment that will have five bedrooms, five bathrooms, a private rooftop pool, expansive terrace, and panoramic views of Sydney Harbour and skyline. The building is being created by burgeoning developer Third.i, alongside joint venture partner Phoenix Property Investors.

The buyer was drawn to Elevate’s unrivalled connectivity, situated directly above the&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station, and the vibrant lifestyle precinct that surrounds it. The Metro connects to the CBD in just seven minutes, and Chatswood in four.

[smartcode_project:default project_id=142550 project_image_fid=309367]

Designed by internationally acclaimed architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, Elevate draws inspiration from the ancient blue gum forests native to the area. The building is a Net Zero development, created in consultation with Indigenous communities and exceeding sustainability benchmarks. Interiors feature chevron-engineered timber flooring, natural stone benchtops, and premium Sub-Zero Wolf appliances, delivering timeless elegance and next-level comfort.

The exchange of the $15.1 million apartment, follows a recent $5 million sale, and over $30 million currently in expressions of interests. Interest in Elevate’s penthouse stock has surged, reflecting a strong appetite for ultra-luxury residences that combine design excellence with unmatched connectivity.

[smartcode_project:default project_id=142550 project_image_fid=309369]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group.&nbsp;

“These recent sales are a testament to the vision behind Elevate. It’s not just about luxury finishes or panoramic views, it’s about creating homes that are deeply connected to the city and the community. Buyers are responding to that. They want to live somewhere that offers more than just a postcode, they want culture, convenience, and long-term value. Elevate delivers all of that, and more.”

[smartcode_project:default project_id=142550 project_image_fid=297878]

As part of the Hume Place precinct, Elevate is transforming Crows Nest into Sydney’s most dynamic urban village. Elevate’s unique position directly above the metro, combined with its curated amenity offering, has made it a magnet for buyers seeking a future-proof investment and a vibrant urban lifestyle.

The next release at Elevate is expected later this year.

[smartcode_project_cta:default project_id=142550]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group


Joel Robinson

Third.i & PPI set Lower North Shore apartment record with $15.1m sale at Elevate Hume Place penthouse amalgamation

Sydney developer Deicorp is set to officially open its <a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill-nsw-2154">Showground Village</a> precinct in Castle Hill.

NSW Premier Chris Minns will attend the opening on Sunday August 31, alongside&nbsp;Minister for Planning and Public Spaces Paul Scully, The Hills Shire Council Mayor Dr Michelle Byrne, Landcom CEO Alex Wendler, and Deicorp Founder Fouad Deiri.

Located just moments from Hills Showground Metro Station, the centre spans 9,500 sqm across four levels and features 26 specialty retailers as well as a 1,400 sqm public plaza, creating a new community meeting point for shopping, dining, fitness, and everyday convenience.&nbsp;

Showground Village forms part of the Hills Showground Station Precinct, an urban renewal initiative led by Landcom and Sydney Metro that will provide for around 2,300 new jobs over the next 20 years and around 9,000 new homes.&nbsp;

Deicorp was recently approved for another new development next door to Showground Village.

The new five residential buildings in the East Showgrounds Precinct, will see another 873 dwellings delivered, as well as&nbsp;3,500 sqm of open public space in the form of landscaped courtyards, a public park and communal outdoor recreational space including a playground, barbeque area, and outdoor seating.

“This approval will allow us to start construction on a range of beautifully designed, conveniently located apartments and create another vibrant, walkable and well-connected community,” said&nbsp;<a href="https://www.apartments.com.au/developers/deicorp" target="">Deicorp</a>&nbsp;Founder Fouad Deiri.

“These new homes will provide their residents with a seamless connection to jobs and services along Metro North West, and the new&nbsp;<a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill" target="">Hills Showground Village</a>&nbsp;retail precinct currently under construction."

Deicorp has several thousand apartments in planning and under construction across Sydney, from Zetland and Five Dock to Crows Nest and Macquarie Park.

[smartcode_project_cta:default project_id=133881]

Deicorp, NSW Premier officially open Showground Village, new retail and hospitality hub in Castle Hill

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

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Lindsay David

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