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The government is considering incentivising downsizing for retirees to improve housing affordability for the young, with retirees who sell off their family home likely to be offered exemptions from new limits to be placed on superannuation.
Although it is unlikely the sale proceeds will also be quarantined from the age pension assets test, The Australian Financial Review reported, citing sources.
The government has considered exemptions to both the $1.6 million cap on a super retirement fund and the non-concessional amount that can be contributed annually, if the top-up is coming from the sale of a large family home, it said.
Treasurer Scott Morrison will deliver the budget on May 9. The likely May budget package was first floated two years ago by Scott Morrison when he was social services minister, as reported by Property Observer recently.
It is hoped breaking down a few barriers will encourage older Australians to down­size homes, thereby releasing more stock to the market and also unlocking billions in capital.
While the move aims to help improve housing affordability, as promised by the government, by freeing up more stock for young families, it also hopes to help shore up the Coalition's support among its so-called base, which is still fuming over $6 billion in cuts to superannuation tax concessions contained in last year's budget, the AFR reported.
Some people are so cranky that over the weekend it emerged that Melbourne businessmen, led by Jack Hammond, QC, and John McMurrick, a former MP, were advocating a challenge to the preselection of Minister for Revenue and Financial Services Kelly O'Dwyer and replacing her with Tony Abbott's former chief of staff, Peta Credlin.
Credlin said she was not interested and O'Dwyer said she was not afraid of a challenge.
The amount of super people have does affect their eligibility for an age pension. Under the budget proposal, if an age pensioner wants to downsize and top up their super, they could do so but lose some or all of their pension.
Those to be targeted by the government policy are pretty much self-funded retirees who don't receive a pension and would be encouraged to sell their home by being able to bolster their retirement income.
Under the super changes which come into effect on July 1, a retirement account, on which the earnings are tax free, will be capped at $1.6 million. Any excess must remain in an accumulation account which will continue to be taxed at the concessional rate of 15 per cent.
Also under the changes, people aged under 65 can contribute a maximum of $100,000 a year in non-concessional contributions to their super until the $1.6 million cap is reached.
Those aged over 65 can contribute $100,000 a year in non-concessional contributions but only if they meet a work test of having done 40 hours work over 30 consecutive days.
It is believed exemptions to both the $1.6 million cap and the $100,000 non-concessional contributions cap are being considered in the event of lump sum contributions from the proceeds of downsizing. It is unclear whether some or all of the proceeds from downsizing could be used to bolster super.
Labor was the first to propose such a policy. When last in government, it announced a trial scheme in which up to $200,000 in sale proceeds would be exempt from the pension assets test. The trial was scrapped when Tony Abbott won government.
Shadow treasurer Chris Bowen was quoted by the AFR as saying that Labor still favoured the idea and would consider whatever the government put in the budget.
"Labor has supported measures to make it easier for seniors to downsize their housing without penalising them. That's why Jenny Macklin had a pilot program in the 2013 Budget to work on exactly that – a pilot program scrapped by the Liberal Party in 2013," he said.
"If the government wants to help older Australians downsize their home, why did they abolish a Labor program that did exactly that. We're receptive of similar measures subject to our normal policy processes and ensuring the government doesn't botch their implementation."
The Property Council of Australia supports exempting downsizers from the pension assets test, but only for people aged 75 and older to prevent a free for all among retirees.
"We have to reduce transaction costs which lock people into homes that don't suit them and are a big drag on the economy," said council chief executive Ken Morrison.
"As well, pensioners are discouraged from downsizing because of the way the pension assets test is configured. Some small changes to the downsizing rules could see tens of thousands of family homes enter the market."
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Government considers super breaks for downsizers to improve affordability

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It’s not just the residential property market that is showing strong growth, sentiment in the commercial property market too rose to a new high in the first quarter of 2017, with offices taking the lead, according to the latest NAB Commercial Property Survey Q1 2017.
The Commercial Property Index climbed 6 points to +27, with around 250 panellists participating in the Q1 2017 Survey, said NAB.
NAB Group Chief Economist Alan Oster said the improvement was reflected in a much higher sentiment for office property while industrial grew modestly.  
Sentiment in the CBD hotels sector was lower, but still very solid and highest across all sectors, while sentiment in retail property markets was unchanged, the survey said.
“Confidence levels also lifted in Office, Industrial and CBD hotels markets, but fell for retail property as household consumption continues to slow to a moderate pace across most states and territories,” Oster said.
“By state, sentiment is still highest in NSW, where it reached a new survey high, followed by Victoria. It rallied in WA but is still very weak and fell in SA/NT and QLD.” 
<img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex.png" alt="">
The survey found that prospects for capital growth in next 1-2 years improved for CBD hotels, office and industrial property, but were unchanged for retail.
Other findings include the expectation that office property will continue to provide the best income returns in the next 1-2 years, with solid growth in NSW and Victoria continuing amid tightening vacancies in both states. Rental growth is expected to remain very weak in WA, reflecting expectations for elevated vacancy rates and oversupply.
 <img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex2.png" alt="">
<img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex-State.png" alt="">
Just over one in two developers expect to start new projects in the next six months, with around six in 10 projects looking to develop into residential projects, says the survey.
Funding conditions are however now considered to be harder than at any time since the final quarter of 2011, particularly for debt borrowing, and are expected to become even harder in the next 6-12 months.
More than one in four (28%) developers are looking to source more capital in the next next months, the survey said. But getting funding is now considered to be harder than at any time since Q4’11. 
<img src="https://www.urban.com.au/images/2017/04/26/NABPanel.png" alt="">
The survey was first launched in 2010 and is one of the leading surveys of market sentiment in the commercial property space. Its panel consists of real estate agents, fund managers, developers and investors.
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Commercial property sentiment hits new high in 2017 Q1: NAB Survey 

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Sydney is new entrant at the top of the unit market, joining Melbourne and four other areas, in valuation firm Herron Todd White’s Property Clock for April.
Ipswich, NSW Mid North Coast and South East NSW stay at approaching the peak of the market, according to HTW. 
Meanwhile, Darwin is the new entrant to the bottom of the market, joining Adelaide, Emerald and Whitsundays.
<img src="https://www.urban.com.au/images/2017/04/20/April21HTWUnits.png" alt="">  
Sydney 
Greater Sydney has been a hot market for the past few years, mostly due to a sustained period of low interest rates, demand outstripping supply in most areas, overseas buyers entering the market, tax incentives, media interest and an increase in values in the entry level pushing up the middle and upper level of the market. These issues combined have caused a wave of interest resulting in a market that hasn’t been this hot for decades, say HTW.
For units, the best performing suburbs are Mosman and Cremorne, according to the valuation firm. 
Local agents have identified a sweet spot for two-bedroom units of between $900,000 and $1.2 million. 
Property Observer found this recent sale in Mosman, a two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-mosman-125173254" target="_blank">11/12-14 Bardwell Road</a> that changed hands for $1,230,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MosmanHTW.jpg" alt=""> 
“This will get you a larger, older style unit appealing to a wider market segment. This price bracket is well suited to a professional couple wanting a low maintenance unit within close proximity of the city. The problem is the lack of stock driving up demand (and prices) further,” says HTW.
In the outer western suburbs of Sydney, there is strong interest in suburbs such as Richmond and Hobartville. With older ex-defence housing, it’s an affordable alternative as the median is $602,500 for Hobartville and $660,000 for Richmond according to realestate.com. 
For that you can get a 550 square metre block with a partly renovated dwelling within close proximity of Western Sydney University’s Hawkesbury campus, TAFE, Richmond RAAF airbase and train station. Many buyers have been attracted to this area due to the lower entry point and facilities provided. 
Within the eastern suburbs unit market, the suburb of Coogee has been a stand out performer, especially in the $1 million to $1.5 million price bracket. The 2016 median price for Coogee units was $1,037,500 which is up 17.9% from 2015 (source: PriceFinder).
As an example of what this median unit price will get you, <a href="https://www.realestate.com.au/sold/property-apartment-nsw-coogee-124752418" target="_blank">7/3-7 Kidman Street, Coogee</a> recently sold for $1.125 million. This property was a near original 1970s unit comprising 2-bedrooms and 1-bathroom with a one-car lock-up garage and features restricted ocean views. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/CoogeeHTW.jpg" alt="">
This market is driven by both investors and owner-occupiers which comprise a mixture of singles, couples and down-sizers. The desirable beachside location has always been a main driver for the Coogee unit market and with limited new unit development in the area, we expect to see the trend of strong growth continue into the future. 
The St George area is also continuing its strong growth period with hottest price points for houses generally being $1 million to $2 million and $660,000 to $700,000 for units.
When analysing the unit market, Brighton Le Sands gets a notable mention as a strong performer with a 2016 median unit price of $680,500, up 4.7% from 2015. 
Melbourne
Apartments in the inner city which have a point of difference are performing well compared to the rest of the apartment market, say HTW. Off-the-plan apartments have received much negative publicity in recent times, however apartments which have high-end finishes in desirable locations with good views are continuing to fetch good returns for investors. 
As an example, Property Observer found a two-bedroom apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-melbourne-124920526" target="_blank">2303/279 Latrobe Street</a> that recently sold for $478,500.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MelbourneHTW.jpg" alt="">
 
 
 
 
 
 
 
 
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Sydney joins Melbourne at the peak of market on HTW's April property clock for units

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‘Don’t buy’ is the advice to young Australians thinking of owning property from one of Australia’s leading economists, Deloitte Access Economics economist Chris Richardson.  
The advice confirms the uncertainties around Australia’s property market, as the government looks at ways to make housing more affordable, although there is scepticism about how much they can actually affect the market.
"The one bit of advice I give to young Australians is right now you know...amid our housing markets of the moment is 'don't buy'," Richardson told the National Press Club recently, as reported by The Australian Financial Review.
"Although there are elements of rental stress, and governments can be involved in helping to do things around there and indeed governments have a bigger role there than in other parts of housing markets, let's not forget that rents today make a lot more sense than housing prices,” he said.
Even Treasurer Scott Morrison spoke at length about the private rental market the same week at a speech on housing affordability ahead of the budget, when the government is expected to deliver an affordability package.
He noted that just over two thirds of households are owner occupiers, and almost a third rent - a quarter rent in the private market, and just under 5% rent through community housing providers at sub-market rates or in public housing.
The Treasurer, while acknowledging the affordability issues for both home buyers and renters, said any measures to deal with the situation “must involve a scalpel, not a chainsaw as advocated by the Labor Party”.
While Morrison – and others in the government – have raised the spectre of a range of measures the government was contemplating to make housing affordable, Richardson put a reality check, saying – relative to recent moves in house prices – the impact of any government policy change would be marginal at best.
Referring to Morrison’s speech, Richardson said:
“The most overlooked thing [the Treasurer] said was that there was no silver bullet around this.
“You absolutely do need to look at renters who are of course the flip side of looking at investors.”
He said the government could do "heaps of things", but when "you have more than nine million homes and families in Australia, you're not necessarily going to change things heaps".
"You need to understand how small the levers they have on how big a market the Australian housing market is.”
"They might affect prices by 2-3%: we easily did more than that over the course of November-December".
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"Don't buy" property right now, economist Chris Richardson tells young Australians

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Regulatory action on multiple fronts to cool prices in an overheated market, which many see as a bubble at risk, could be a case of overshooting and there are dangers signals hidden in a sharp drop in prices, says a leading columnist.
“There is an unease in large parts of the residential property market. Such an unease normally triggers a fall in prices,” according to The Australian columnist Robert Gottliebsen.
A warning by Deloitte Access Economics’ Chris Richardson to first-home buyers that now was a bad time to buy was roundly criticised, but Gottliebsen said he was picking up similar danger signals in parts of the industry itself because of the multiple attacks on the vital housing industry.
“And down in budget preparation land they are planning new attacks with the aim of making it easier for first-home buyers. Scott Morrison, be careful what you wish for,” he writes.
The current volley of attacks, according to Gottliebsen, are:
<ul>
<li>Chinese and other Asian foreign investors want to buy but they get no help from local Australian banks because they can’t prove their income in China to our banks. At the same time, China is making it almost impossible for money directed to Australian housing to legally leave the country. The Chinese who bought apartments “off the plan” two or three years ago are forced to find dubious ways of getting money out of China and/or pay the high interest rates required by the rapidly growing unofficial and unregulated finance system. There is a massive Chinese investor funding problem in Melbourne and a lesser one in Brisbane.</li>
<li>Chinese are re-entering the “off the plan” market with great gusto in the belief that their government will change the rules and/or there will be a reversal in Australian banking attitudes. If we do manage to get through the Melbourne small apartment oversupply problem we are laying the foundations for another and deeper crisis if the current Chinese funding rules do not change.</li>
<li>In the “second-hand” dwelling market, for the most part, Chinese investors do not participate because it is illegal without FIRB approval. However there is clearly buying by local Chinese who have some sort of agreement with their relatives/ friends in China. But the Australian government is cracking down on these arrangements.</li>
<li>The “second-hand” market is largely made up of locals who are pushing up the prices in many areas of Sydney and Melbourne. While there is the normal high activity in house swapping and many first-home buyers in outer suburbs, the biggest force in the market for both apartments and houses is investors.</li>
</ul>
Local investors comprise high-income medical professionals but also teachers, police and trades people like plumbers. The uncertainty about superannuation means people see negatively geared dwellings as a more reliable retirement vehicle, he says.
They have also increased interest rates on investor loans and residential rate loans are being edged up. And so the forces that drove the “second-hand” market higher are being reversed with some savagery. And at the same time, about every regulator is warning of a bubble.
<ul>
<li>Outside the public service, wages are not rising, which exposes risk to the one-third of Australian borrowers (according to RBA figures) who have not built up a repayment buffer, or are less than one month ahead on their home loan repayments. These borrowers are very exposed to an economic downturn or rise in interest rates and shows how vulnerable the current situation is to any further blows in the budget.</li>
<li>There are signs that in Sydney and Melbourne the squeeze on land for development is being eased, particularly in Sydney. The major developer in Sydney, Meriton, has announced that it plans to lift production because long-delayed permits are finally being issued.</li>
</ul>
With all these forces being lined up, home prices should fall but are being help up by the rising populations in Melbourne and Sydney; the rush of foreign students and tourists and problems developers are having organising finance, he says.
In addition, if Labor wins the next election it will most likely dump negative gearing. Hence, investors are buying property before it’s too late. 
Rents in most areas are not falling. Those forces will probably stop a significant fall unless there is a major adverse global event or the budget attacks too hard. And if there is a significant fall the whole Australian economy will be affected, so multiplying the fall, warns Gottliebsen.
“My fear is that the regulators are using weapons to curb the boom that have not been used in a long time. There is risk of overshooting."
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Danger in excessive moves to cool property market: Gottliebsen

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Limiting how much investors of multiple properties could negatively gear and a possible cap on the number of investor properties has divided the industry even as the government toys with ideas to cool the overheated property market.
The suggestion was favoured by SQM Research managing director Louis Christopher, who said a limit was a good idea “conceptually”, according to Fairfax Media.
The new debate opened up after news broke that the government is examining the possibility of putting a limit on the number of properties investors can buy or impose a dollar value limit on how much can be negatively geared by investors.
Questions around the preferred option hinge on how to find a measure that recognises large differences between property markets around the country and avoids generating new regional or price-bracket distortions, The Australian Financial Review reported, citing sources.
“For those who own 20 properties that are all negative geared, it does need to be done,” Christopher said. “But where you draw the line is political – two properties? Five?
“It’s a very small proportion of the population when you get to three properties plus, and at that point it would only have a small effect [on the market].”
A limit of one property would, however, have an impact on the overall demand from investors, he said.
The government has ruled out dumping negative gearing, and has also shown reluctance to lowering capital gains tax concessions. It has promised a housing affordability package in the May budget.
Experts say the latest idea is not a fix for affordability.
Grattan Institute chief executive John Daley told Fairfax Media that the idea was “genuinely stupid”.
In fact, one of the major problems facing those in the housing market today was not multiple property owners but so-called “mum and dad” landlords with just one investment property, Daley said.
“One of the fundamental problems with the Australian rental market is that it doesn’t have enough multiple property landlords,” he said.
Data from the Australian Taxation Office found slightly fewer landlords in the market but more investment properties per landlord overall.
But a majority of Australia’s 2 million landlords did not have a substantial portfolio – 72 per cent had one property in the 2015-16 financial year and 90 per cent had two or fewer.
Daley said those with large portfolios – such as 10 or 20 investment properties – would be more inclined to offer long-term leases and stability for tenants.
“There are very few big landlords and very few long-term tenancies.”
He said while the idea of portfolio investors helping the market was “counter-intuitive”, it did not make sense to blame housing affordability on a small number of multiple property owners.
BIS Oxford Economics senior manager residential Angie Zigomanis said a cap was not a good idea.
“If someone wants to add more properties to the rental stock, I don’t think we should be stopping them,” Zigomanis said.
Limiting deductions that could be claimed was more effective, as it would “reduce the willingness of an investor to pay top dollar for the property”, he said.
Domain Group chief economist Andrew Wilson said any moves to interfere and reduce investment activity would be a “disruption in the rental market” – whether from altering the tax mix or limiting how many properties investors could buy.
“It would cause higher rents, and we already have a tight rental market,” Dr Wilson said.
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Industry divided over idea of cap on investment properties for negative gearing 

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High taxes are taking a toll on new house and land packages built in Sydney’s South West, with taxes comprising about 30% of the cost to produce them, according to research by developer The Monarch Investments Group (Monarch). 
Taxes for an average sized house and land package include GST of $65,909, stamp duty of $26,813 and council and state contributions $30,500, Monarch said in a media release.
Monarch chief executive Peter Icklow said the government should look at various measures to improve housing affordability for the younger generation. 
These include reducing the GST on new houses, perhaps placing that shortfall of revenue on all houses and lowering stamp duty as well as reducing infrastructure levies, he said. 
"Ten years ago in Macquarie Links Estate a house and land package on a 800 square metres lot was $700,000, today it is over $1.1 million for the same size home,” Icklow said.
"The tax percentages have remained the same however, with the increase in land and house prices the amount the government is pocketing is vastly different.
"They are billions of dollars richer from the capital growth in property and land.
"Since 1955, we have developed over 6,000 land lots in our masterplanned communities, with over 50 per cent located in South Western Sydney. The biggest change we have witnessed is the shrinking land lots."
Ten years ago the average sized lot in Macquarie Links was 800 square metres, whereas now Monarch is building triplexes on 180 square metres at The Meadows. 
“Land is simply too expensive. We are building smaller lots to meet purchaser demand,” he added.
“The first home buyer market is alive and well in the South West. In recent years, we have witnessed first home buyer city dwellers renting apartments now moving into the suburbs. They are after space to raise children and good infrastructure and facilities. The South West is providing this with billions of dollars being spent in the region from both the private and public sector,” Icklow continued.
He said first home buyers have bought more than 90% in The Meadows in Bardia while at the finished Ingleburn Gardens Estate, their proportion was 80%. 
“We are finding that downsizers from inner city locations that have built up good equity are also now starting to move out. Many people are selling homes worth around one to two million, purchasing a new home in the South West for around $700,000 and then using the excess for holidays or hobbies.”
The Meadows will have 210 houses and more than 30% is already sold. It is located directly beside Monarch’s Ingleburn Gardens Estate and across the road from the company’s first flagship development in the area, Macquarie Links Estate.
The development will have a swimming pool, playground and recreational facilities. 
Prices start from $669,950 to $789,950 (average $709,950) for a three bed duplex and range in lot size from 230 square metres to 300 square metres. 
 
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Taxes take 30% of south-west Sydney land and house packages: Monarch

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The changing dynamic of home ownership in the US post-GFC, where Generation Y have transformed into Generation Rent, offers opportunities for Australian investors, says a study by AMP Capital.
The demographic shift leading to a steady decline in home ownership and its implications for real estate investors and the opportunities within the US apartment REIT sector has been dealt with in AMP Capital’s whitepaper, Generation Rent, authored by its Client Portfolio Manager for Global Listed Real Estate Chris Deves.
“The ever-changing consumption pattern of real estate, juxtaposed against its status as perpetual imperative for a functioning society, presents an interesting dynamic and is precisely that which offers a wide range of opportunities for long-term investors,” says Deves.
The rise of the millennial generation and its implications for the residential market in the United States is a case in point, he adds.
“The greater propensity for millennials to rent isn’t necessarily a surprise. After all, this is the same generation that pioneered the ‘sharing economy’, a collaborative approach to consumption, which draws heavily on the notion of renting,” said report author Chris Deves.
Millennials are opting for proximity to nightlife, restaurants and the workplace along with access to shared spaces and amenities, which is translating into greater demand for rented apartments in the urban core, he says. 
“As a demographic cohort, the strong willingness of millennials to relocate in the pursuit of new career opportunities necessitates flexibility and mobility, which is also more conducive to renting over owning.”
The paper shows this is an important tailwind for US apartment REITs, which make up roughly 8 per cent of the global listed real estate benchmark or more than US$100 billion of equity market capitalisation.
The development in American dwelling habits is a positive for residential landlords, which in turn is investible via the listed institutional apartment operators. 
US-based apartment REITs make up roughly 8 per cent of the global listed real estate benchmark, or more than US$100 billion of equity market capitalisation, the third-largest US sector behind mall and office owners. The apartment REITs are generally of high quality and have seen significant consolidation in recent times – five such REITs have been acquired or have merged during the past three years alone – leaving an investible set of large, well-capitalised companies with seasoned management teams, according to the AMP report.
“This has made apartment REITs attractive for real estate investors with a long-term investment horizon,” Deves said.
<a href="https://www.propertyobserver.com.au/images/2017/04/19/USHomeOwnership.jpg" target="_blank">Click to enlarge</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/USHomeOwnership.jpg" alt="">
The assets held by these listed apartment REITs are predominantly located in the urban core where renting is most common. The change towards rentership (and, thus, migration into the city) is a positive for increasingly dense and difficult-to-build-in urban property markets. Additionally, an increasing focus on public transportation links should further benefit the high-quality apartment names.
Enter the Millennials
According to the white paper, the fall in the homeownership rate in the aftermath of the GFC was in part due to the rise in defaults on home loans. Though the default rate has recovered to 4 percent in 2016 from 11.3 per cent in early 2010, the declining trend of home ownership has sustained over the longer term.
Now, America is undergoing a major demographic shift. Millennials – or those born between 1980 and 2004, according to the US Census Bureau – are now the largest share of the American workforce, as depicted in Figure 4. By 2025, Millennials will represent 75 per cent of the American workforce [Source: US Bureau of Labor, 2016]. As the largest source of new demand for housing, be it home sales or rentals, this cohort wields significant influence over the residential real estate market.
The most important trend underlying the Millennial demographic is a greater propensity to rent, particularly in the urban core, at the expense of homeownership. 
The movement of the prime renter demographic into the city centre will have an impact on apartment values. Cities have historically had a larger share of renters compared to suburban areas. So it is not surprising to see that the populations of US cities have become increasingly composed of renter households alongside the national increase in renters. Of the 11 largest US cities, nine had more renters than homeowners in 2014 versus just six of these same cities in 2006. 
As a result of this migration away from the suburbs and towards the city, the apartment business has become a more attractive full-cycle investment. A bigger pool of renters means a more stable business at a given level of supply; additionally, an increasingly older tenant mix (Millennials rent later into life) should improve affordability ratios and allow for healthier rent increases. 
Lastly, because of land and entitlement constraints in dense, urban areas – which will become increasingly more onerous over time – high quality, core product will become scarcer as demand from renter households continues to increase, and thus, should appreciate at a faster pace. 
<a href="https://www.propertyobserver.com.au/images/2017/04/19/USAptReits.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/19/USAptReits.png" alt="">
However, millennials won’t rent forever.
“The American dream of home ownership is not dead and buried. Gen Y are just as likely to head for the suburbs as previous generations, and starting a family is often an important catalyst. The key difference is that we are seeing this occur increasingly later in life,” said Deves.
“Cyclical affordability issues and demographic change has and will support demand for apartment rentals in city centres. During the property cycle, the US apartment REITs should therefore be in a stronger position to push rents, and quality management teams with insight into the needs of millennials will be best placed to deliver value for investors of all sizes.”
While the story is similar for Australian millennials, investing in the US could be an ideal way to play this trend for local investors as it offers the largest, highest quality, and most liquid set of listed apartment landlords, according to the report.
“Australian investors should consider a global strategy for listed real estate in order to access these kinds of thematics, which may not be as readily investible in their local market. A global approach also offers geographic diversification for the real estate portfolio,” concluded Dewes.
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As US home ownership declines, opportunity arises for investors: AMP Capital

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A long-standing motel in Brisbane’s inner suburb of Hamilton has been sold through Savills for an undisclosed sum, although the transaction is believed to be around $2.5 million.
The Kingsford Riverside Inn at 114 Kingsford Smith Drive comprises 25 rooms, a manager’s residence, reception area and other utilities. The 3 Star rated motel is also conveniently located opposite a 24 hour service station.
The four-storey motel was built in 1957 and has been owned and operated for the past 17 years by a local Brisbane couple who are now heading for retirement. It was bought for $450,000 by Daniel and Jane Doyle, according to CoreLogic RP Data.
The freehold motel property is set on an area of 663 sqm. 
The sale to private Sydney-based buyer was brokered by Nic Simarro and Tim Packman of Savills. 
The new owners have promised an extensive refurbishment, according to The Courier Mail.
Simarro said the property attracted much buyer interest due to its prominent high-exposure location on Kingsford Smith Drive. It is close to the airport and Brisbane CBD.
“Given the location, substantial landholding and favourable zoning, the property provides excellent medium-term redevelopment potential,” Simarro said.
Packman said the riverside setting provides panoramic views of the Brisbane River.
He said the site is prime for repositioning as it is zoned ‘High Density Residential (Up to 8 Storeys)’ and provides an opportunity for future redevelopment, subject to Council approval. 
“The underlying land rich nature of the site presents great flexibility in future uses to capitalise on the high level of infrastructure and development activity in the surrounding area,” Packman said.
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Landmark riverside motel in Brisbane’s Hamilton sold through Savills 

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A mortgaged three bedroom home is the Australian norm, according to a preview of the 2016 census released by the Australian Bureau of Statistics.
In 2016, the ‘typical’ Australian home is owned with a mortgage as opposed to outright ownership in 2006. But this varies across the country, according to the preview of the 2016 Census of Population and Housing that highlights the key characteristics that make the ‘typical’ Australian in 2016 and highlighting the country’s diversity.
The first Census data release is scheduled for June 27, 2017. This will include datasets for all national, state/territory and capital cities, along with datasets for small population groups and small geographic areas such as suburbs and local government areas.
The Australian home varies from state to state, says the ABS. For example, the ‘typical’ home in Tasmania and New South Wales is owned outright, while the ‘typical’ Northern Territory home is rented. In 2006, the ‘typical’ Australian home was owned outright.
The 2016 Census says the ‘typical’ Australian is a 38-year-old female who was born in Australia, and is of English ancestry. She is married and lives in a couple family with two children and has completed Year 12. She lives in a house with three bedrooms and two motor vehicles.
The age of the ‘typical’ Australian varies across the states and territories. 
The ‘typical’ Australian male is 37 years old.
In 2016, the ‘typical’ migrant in Australia was born in England and is 44 years old; a decade ago they were aged 46. There are however some differences between the states – the ‘typical’ migrant in Queensland was born in New Zealand, while in Victoria the ‘typical’ migrant was born in India. The ‘typical’ migrant in New South Wales was born in China.
The June release will follow the completion of the ABS’ usual data quality assurance process and the Census Independent Assurance Panel’s quality assurance work.
The Census process, conducted on the night of August 9, headlined the news soon after after the ABS website was hit with cyber attacks forcing a shut down for two days. 
The ABS will release data regarding employment, qualifications and population mobility from October 17,  2017. 
The lists below show when data related to each Census topic will be released, ABS said in the release. Each topic will have a number of data items associated with it.
JUNE 2017
Sex
Age
Residential status in non-private dwelling
Registered marital status
Aboriginal and/or Torres Strait Islander origin
Usual residence at Census time
Australian citizenship
Country of birth
Year of arrival in Australia
Country of birth of parents
Main language other than English spoken at home
Proficiency in spoken English
Ancestry
Religious Affiliation
Need for assistance
Attendance at an educational institution
Highest year of schooling completed
Number of children ever born
Income
Unpaid work
Address on Census night
Family relationship (and Social marital status)
Number of motor vehicles garaged
Number of bedrooms
Tenure type
Landlord type
Housing costs
Dwelling internet connection
Dwelling structure
Location of private dwelling 
Type of non-private dwelling
 
OCTOBER 2017
Internal migration (address of usual residence 1 year ago and 5 years ago)
Non-school qualification
Labour force status
Status in employment
Occupation
Public or private employer indicator
Workplace address (Journey to work)
Industry of employment
Hours worked
Method of travel to work
</body></html>

ABS census preview says mortgaged three bedroom home is the Australian norm

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

Joel Robinson

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Prateek Chatterjee

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