<html><body>
GUEST OBSERVER
If you look at the efficiency of the GST – in other words, the amount of economic activity that is destroyed for every dollar you raise – the Government’s latest tax discussion paper says it is just as inefficient a tax as the income tax. It’s much less equitable though. The income tax is paid disproportionately by those further up the distribution and the GST hits those down the bottom. – Andrew Leigh, Shadow Assistant Treasurer, <a href="https://www.andrewleigh.com/the_gst_is_inefficient_and_inequitable_so_why_raise_it_rn_drive" target="_blank">interview</a> with Patricia Karvelas on RN Drive, July 20, 2015.
There are two parts to the Shadow Assistant Treasurer’s statement. In the first part, he simply cites a Treasury report that shows that the GST is as efficient – or inefficient – as the income tax. The second part states that the GST is less equitable as “the income tax is paid disproportionately by those further up the distribution and the GST hits those down the bottom.”
A spokesperson for Dr Leigh said:
In terms of data supporting the statement, I’d refer you to p.25, chart 2.9 of the government’s <a href="https://bettertax.gov.au/files/2015/03/TWP_combined-online.pdf" target="_blank">Re:think tax discussion paper</a>. This shows that the GST and flat rate labour income tax have an equivalent marginal excess burden, according to Treasury modelling.
What do economists mean by an efficient tax?
There are both direct and indirect costs associated with raising taxes. Direct costs include those that are incurred in the collection of the tax. While direct costs are not insignificant (the Australian Taxation Office employs over 20,000 people), economists consider the indirect costs of taxation to be more relevant. These relate to the distortions that a tax creates.
For example, a tax on apples raises the price of apples to consumers and importantly makes apples relatively more expensive than say oranges. This will lead to consumers buying fewer apples and perhaps more oranges. While the government raises revenue in this process, the tax distorts the behaviour of consumers with possible impacts on the production of oranges and apples.
The efficiency loss is the reduction in welfare, usually measured in dollars, from a consumer buying fewer apples than what she would like to because of the tax, and also any distortions in production.
Is the GST as efficient (or inefficient) as the income tax?
To apply this idea in the current context, an income tax will reduce the remuneration of a worker, relative for example to other non-remunerated activities such as leisure.
Thus, in theory, an income tax could impact on one’s decision of how much to work (or whether to work at all). The GST, however, raises all prices except for goods and services not subject to it.
There lies the conceptual reason for the GST to have a similar impact than an income tax; individuals care not about the dollar amount they receive as wages but rather about the goods and services that they can purchase from their wages over their lifetimes, including savings and bequests.
Let me illustrate this with an example. Here I assume that there is no borrowing or saving, a flat income tax of 10% and a broad-based GST of 11.11%. Consider an individual on a $50,000 income. After paying taxes, she has $45,000 left to spend on goods and services. In this case, $50,000 expenditure on goods and services would include GST of $5,000. That is, both taxes would allow the consumption of $45,000 of goods and services and, as a result, should lead to similar behavioural impact and distortions.
This theoretical argument is borne out by <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/Working%20Paper%202015%2001/Documents/PDF/TWP2015-01.ashx" target="_blank">Treasury modelling</a>. Chart 33 from the report is reproduced below. It estimates the “marginal excess burden” (MEB) of different taxes.
The MEB is measure of efficiency loss that captures the decrease in the future ability to spend across the economy per dollar of revenue raised from a tax. These estimates are derived using a long-run economic (computable general equilibrium or CGE) model where households are captured by a representative economic unit.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/89446/area14mp/image-20150723-22849-1anubmx.png" target="_blank">Click to enlarge</a>
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/89446/area14mp/image-20150723-22849-1anubmx.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/89446/width668/image-20150723-22849-1anubmx.png" alt=""></a>
The chart reports the marginal excess burden of a number of taxes including a stylised personal income tax (represented by a flat rate), a stylised tax on labour income only and the GST. An out-of-model calculation for a marginal tax rate of 25% is presented as an illustration of an average taxpayer in 2011-12. As it can be seen in the chart above, the MEB estimates for the GST and the stylised income tax are nearly identical.
Is the GST less equitable than the income tax?
To answer this question, I need to define a couple of simple terms.
A tax system is regressive if the tax paid, as a fraction of income, decreases with income. A common view of the GST, reflected in the Shadow Treasurer’s statement, is that poorer households pay proportionally more than do richer households. Conversely, a tax system is progressive if the tax paid, as a fraction of income, increases with income. By design, the income tax rate faced by individuals in Australia increases with their income.
The table below uses a survey of households undertaken by the Australian Bureau of Statistics (ABS) to shed light on this question. It shows the average amount of GST, taxes and net income per income quantile for the 2009-2010 financial year. Net income includes pensions, family tax payments, and other benefits, and excludes tax paid on income. As expected, the income tax is clearly progressive. The amount of GST as a fraction of gross income varies considerably less across most of the income distribution, although it is overall decreasing, with the exception of the lowest quintile who pays a much higher fraction of their gross income as GST. Taxes and GST paid as a percentage of average weekly household gross income per income quantile (2009-2010).
However, looking at the fraction of GST paid and income may be misleading as incomes are volatile and spending can be smoothed via borrowing and savings. To take this into account, I report below the amount of GST paid as a fraction of total expenditures, which is likely a better measure of the level of spending that households can sustain. Once again, the lowest quintile pays substantially more GST as a fraction of expenditures, but there is a small variation for the other groups.
Verdict
The Assistant Shadow Treasurer is correct that the efficiency of the GST as a tax is similar to that of income tax. He is also correct that the income tax is more progressive than the GST and that the GST hits disproportionally those in the bottom of the income distribution.
However, while technically the data above suggests that the GST is a regressive tax, the difference between the fraction of income or expenditures paid in the form of GST is small amongst the various quantiles of the income distribution, with the exception of the poorest.
Review
I concur with the comparative distribution effects of the GST and personal income tax.
In the case of relative efficiency effects, because the income tax in practice falls on capital income as well as labour income and because it has a progressive rate schedule, it has additional distortion costs to those assessed with a flat rate tax on labour income considered in the FactCheck.
First, income tax applies to <a href="https://www.wisegeek.org/what-is-capital-income.htm">capital income</a> (for example, stock dividends) as well as to labour income. Capital income tax distorts aggregate saving versus current expenditure decisions. The hybrid Australian capital income taxation of different saving options distorts the composition of savings between one’s home, other property, bank deposits, superannuation and so forth.
Second, while the GST has a flat rate of 10%, the income tax rate schedule is a progressive one with marginal rates from zero to 49%. With efficiency costs increasing more than proportionately with the tax rate, a progressive tax rate generates larger distortions on average than a flat rate tax.
Accepting the comparative efficiency and distribution effects of the GST and income taxes, most sensible suggestions for taxation reform which involve a more comprehensive base and/or higher rate GST to reap efficiency gains from a tax mix change also propose that some of the GST revenue gain be recycled as higher social security rates and a lower but more progressive income tax rate schedule to maintain the effective purchasing power of the poor.
John Freebairn is professor, Department of Economics at University of Melbourne and an author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-freebairn-90" target="_blank">here</a>.
 
</body></html>

po-LsXgBTHBmX

Is the GST as efficient but less equitable than income tax? Factcheck

<html><body>
Most cautious investors steer clear of mining towns. 
However numerous investors bought in with promises of then double digit yields.
Port Hedland has fared the worst <a href="https://propertyobserver.com.au/finding/residential-investment/sales-and-auctions/44345-port-hedland-asking-prices-fall-further" target="_blank">on the price drop front</a>, but still ranks in Australia's top 12 rental yield locations as calculated by Investar. 
Many others on the list have holiday town income yields. 
Rank Suburb State Postcode Dwelling Type Bedrooms Median Listing Price Weekly Median Rent Rental Yield
 
1 JINDABYNE NSW 2627 Unit Studio &amp; 1 $121,500 $260 11.12%
2 DIDDILLIBAH QLD 4559 Unit 2 $178,000 $360 10.51%
3 MANOORA QLD 4870 Unit Studio &amp; 1 $95,000 $185 10.12%
4 BROKEN HILL NSW 2880 House 2 $110,000 $200 9.45%
5 WOREE QLD 4868 Unit 2 $166,000 $300 9.39%
6 CAIRNS QLD 4870 Unit Studio &amp; 1 $140,000 $250 9.28%
7 MANYANA NSW 2539 House 4 $465,000 $800 8.94%
8 PALM COVE QLD 4879 Unit Studio &amp; 1 $175,000 $300 8.91%
9 TRINITY BEACH QLD 4879 Unit Studio &amp; 1 $139,000 $235 8.79%
10 PORT DOUGLAS QLD 4877 Unit Studio &amp; 1 $149,000 $250 8.72%
11 QUEENSTOWN TAS 7467 House 2 $74,500 $125 8.72%
12 PORT HEDLAND WA 6721 House 4 $899,000 $1500 8.67%
SOURCE: <a href="https://www.realestateinvestar.com.au/ME2/Default.asp" target="_blank">Investar July 2015</a>
 
{mijopolls 123}
</body></html>

Port Hedland property ranks Australia's 12th best yielding town: Investar

<html><body>
Can’t find a decent two-bedroom at a price you can afford?
Ditto New Yorkers are on the search for a one-bedroom big enough to turn into two.
<a href="https://www.nytimes.com/2015/07/26/realestate/making-more-space-in-a-one-bedroom-apartment?src=me&amp;_r=0" target="_blank">The weekend New York Times</a> wrote of the trend.
<img src="/images/2015/07/27/nyt_headline.jpg" alt="">
Have a look at the prices they face outlaying now, and the purchase price escalation over the past few years.
On Saturday in Sydney 50 people attended the auction of a one-bedroom Mosman apartment, with study with unusual internal glass bifold doors, something of a dis-encouragement for any second bedroom utilisation.
<a href="https://www.belleproperty.com/buying/NSW/North-Shore-~-Lower/Mosman/Unit/2P6791-504-88-vista-street-mosman-nsw-2088" target="_blank">The 504/88 Vista Street offering</a> sold for $770,000 at $70,000 above reserve through agents Brad Rogan and Alex Brun of Belle Property Mosman.
Their sale set a building record for one-bedroom apartments by close to $80,000.
It was on the fifth floor of Nuova which sold out in 2002 in one weekend. Prices ranged then from $290,000 for a one-bedroom to $1.85 million for a penthouse.
The developer was Cienna and the architect was Allen Jack Cottier Architects. 
</body></html>

One-bedrooms big enough to turn into two: the New York trend

<html><body>
<div class="cq-article-content-paras section">
Sphere Developments sold more than $56 million worth of off the plan apartments at its Blacktown project, Altitude Tower.
First home buyers leapt at the chance to enter Sydney’s property market, snapping up apartments priced from $395,000 in Blacktown’s first premium residential high-rise building.
It's estimated first homebuyers made up 25% of today’s purchasers.
The top-selling apartment was a three-bedroom selling for $775,000 with prices per square metre reaching more than $8000 through Colliers International.
Colliers International residential project marketing director David Chittenden said first home buyers took advantage of the government grant, and some help from their parents.
The 24-storey, mixed-use residential tower at the edge of the Blacktown CBD was approved in May by the Sydney West Region Planning Panel with a design by architects Tony Owen Partners.
Located at the corner of Boys and Second Avenue, Altitude Tower will include 19 x one-bedroom, 74 x two-bedroom and 13 with three bedrooms.
Robert Cassab, who heads Sphere Developments with business partner Ben Suttor, says the demand proved Blacktown was an undersupplied market for premium quality apartments in an emerging CBD. Blacktown City Council’s forecast is for the region to grow to 500,000 residents by 2036, requiring 180,000 dwellings.
 
</div>
<div class="cq-article-content-media section"><img class="lazy620x0" src="https://www.afr.com/content/dam/images/g/i/k/p/n/h/image.imgtype.afrArticleInline.620x0.png/1437890098792.jpg" alt="More than 90 per cent of the apartments in Altitude Tower in Blacktown, in Sydney's west, sold in just hours at the weekend." width="620" data-src="/content/dam/images/g/i/k/p/n/h/image.imgtype.afrArticleInline.620x0.png/1437890098792.jpg"></div>
<div> </div>
<div>Colliers International has noted significant infrastructure investment in Sydney's Western suburbs has seen a rise in demand for quality new living options from both an owner occupier and an investor perspective.</div>
<div> </div>
<div>"Altitude in Blacktown is the first true high rise of its kind in the area, and a sign of the kind of quality residential offering that we can expect to see coming to this powerful growing Sydney corridor."</div>
</body></html>

Blacktown's Altitude Tower sees strong first time buyer sales

<html><body>
The Melbourne businessman Sir Rod Eddington has sold his renovated 1930s Toorak home of the past eight years. 
More than $11 million was expected for the <a href="https://www.realestate.com.au/property-house-vic-toorak-117754647" target="_blank">Ledbury Court property</a> which came with pool and tennis court.
But Title Tattle gleans Chinese buyers paid $10.1 million.
The 2,154 square metre holding was bought by Sir Rod and his wife, Young Sook Park for $7.85 million in 2006 from the Ayre family who'd been there since paying $550,000 in 1980.
It was for sale through Kay &amp; Burton's Michael Gibson.
The historic triple-storey mansion sits around a north-south tennis court, pool and cabana in manicured gardens. The four bedroom home comes with two studies, a gymnasium and conservatory.
The master suite has a super-sized dressing room.
Apparently the ground-floor study, with fireplace, is almost as big as the double garage. 
Melbourne businessman Sir Rod Eddington paid $6,175,000 to downsize Toorak homes.
The new acquisition of the contemporary abode (pictured below) was at a slight discount on its 2008 sale price of $6.3 million.
It was built by the developer Peter Gibson in 2007 to a design by architect Ilario Cortese.
<img src="/images/2015/01/30/toorak%20jan%2030%20one.jpg" alt="">
</body></html>

Sir Rod Eddington sells 1930s Toorak home for $10.1 million

<html><body>
In spite of high growth in Sydney and Melbourne, growth in Australia as a whole is significantly lower than other housing markets around the world – according to the latest Knight Frank Global House Price Index.
Onthehouse.com.au data reveals that the annual median capital growth rate for Australia’s houses and units was just 5.7% and 5.6% respectively. It is likely that nationally, houses and units are similar in their growth rate because there are more units in dense, high growth areas.
The two significant resource markets – Darwin and Perth – have showed poor performance over the last year. Houses in Darwin fell -3.74% in the last year, from $575,000 in May 2014 to $554,000 in May 2015.
The deepening downward trend for these markets can be seen below.
<a href="/images/2015/07/24/G3_Resource_State_Trends.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/G3_Resource_State_Trends.jpg" alt="">
The differing trends represent the persistent, two tiered housing market that makes growth across the board seem stable. The Iron Ore price remains low at just US$60 per dry metric tonne, a commodity which averaged over US$100 per unit this time last year. Little has been done to create sustainable employment following low resource prices, and the end of the construction phase in the mining boom.
It is therefore misleading to look at data in such aggregation. The two tiered housing market makes it difficult for policy makers and Reserve Bank to influence housing growth.
With a boom on the south east coast that sets a higher deposit hurdle, and a bust in the resource states that has an unclear future, the state of the Australian housing market seems dismal. However, sustainable house and unit growth are an indicator of the strength of the economy. Though we present a summary of statistics by city metropolitan regions, there are suburbs with idiosyncrasies that make them a promising for investment. These include diverse employment opportunities, planning regulation, quality properties and affordability. Exploring such places outside of the major cities could present a more accessible growth or high yield strategy.
ELIZA OWEN is a market analyst for <a href="https://www.onthehouse.com.au/" target="_blank">Onthehouse.com.au</a>.
</body></html>

Australia's persistent two tiered housing market: Onthehouse's Eliza Owen

<html><body>
Nearly half of respondents to a new survey believe interest rates might rise over the coming year.
Some 45% of people polled for the CoreLogic RP Data Nine Rewards Consumer sentiment survey consider a rate hike possible over the next year. 12% of respondents believe interest rates will move lower over the six months and 13% over the next year.
63% expect a stable mortgage rate environment over the next half year and year.
<a href="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.02.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.02.58%20AM.png" alt="" width="749" height="183"> 
<a href="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.03.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.03.03%20AM.png" alt="" width="688" height="195">
Source: CoreLogic RP Data Nine Rewards Consumer sentiment survey
</body></html>

CoreLogic RPData's six to 12 month mortgage rate outlook 

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Those living in high capital gains areas of Sydney and Melbourne consider the time is ripe to sell.
Some 60% of respondents of the CoreLogic RP Data Nine Rewards Consumer sentiment survey thought conditions were good to buy, such as those living in the weaker markets of Tasmania, regional South Australia, Brisbane and regional Queensland.
Sydney and Melbourne respondents saw now as the time to sell due to high capital gains.
<a href="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%202.09.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%202.09.10%20PM.png" alt="" width="751" height="295">
 
<a href="/images/2015/07/24/sell.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/sell.jpg" alt="">
Source: CoreLogic RP Data Nine Rewards Consumer sentiment survey
</div>
</div>
</div>
</div></body></html>

Is now a good time to good time to buy or sell a property or home? CoreLogic RP Data

<html><body>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Australians consider now a good time to buy regardless of a three-year rise in capital city home values and the possibility of a 'significant' future price correction, according to a new survey.
75% of respondents to the CoreLogic RP Data Nine Rewards Consumer sentiment survey believe the housing market could suffer a significant correction in values.
Those who believed the market is more vulnerable to a correction are becoming more cautious.
 
</div>
</div>
</div>
</div>
<a href="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%201.53.39%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%201.53.39%20PM.png" alt="">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Higher numbers of respondents from Sydney  felt a market downturn was possible, which the survey noted may be attributed to the high rate of capital gain over recent years causing some concern about an over valuation in the Sydney market place. 
Perth residents were overly optimistic about the state of the market since the peak of the resources boom and those in the Northern Territory and regional Western Australia the most pessimistic.
</div>
</div>
</div>
</div>
<a href="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%201.53.44%20PM.png" target="_blank">Click to enlarge</a>
</div>
</div>
</div>
</div>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-24%20at%201.53.44%20PM.png" alt="" style="line-height: 1.3em;">
Source: CoreLogic RP Data Nine Rewards Consumer sentiment survey
</body></html>

Australians concerned about home price correction: CoreLogic RP Data

<html><body>
Cromwell Property Group has sold 4-6 Bligh St, Sydney, for $68 million.
The building has a net lettable area of 9,964 sqm with a weighted average lease expiry of around three years. The majority of tenants are government clients.
Cromwell CEO Paul Weightman said they acquired the asset as part of the Government Property NSW portfolio in 2014. 
"It is a trophy asset in the heart of the CBD and we had been actively considering a range of value-adding opportunities before taking the asset to market for sale.”
Bligh street Tower has 17 upper floors, three lower levels, two ground floor retail tenancies and a basement level carpark.
It was listed through Colliers International agent Vince Kernahan.
It was sold by the NSW Government in 2013 at $53 million.
<div>
The property, Bligh House was bought by the Real Estate Capital Asia Partners IV fund, managed by SC Capital Partners Group.
The property, with 20 office floors leased to the NSW government until June 2018, will deliver an initial yield of about 7.5 per cent.
</div>
 
</body></html>

Bligh St trophy building sold for $68 million

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Joel Robinson

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Property Observer

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News