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When Australia’s head cashier Joe Hockey proudly announced that he had nailed an illegal foreign purchase with the $39.000 million sale of Villa del Mare or Villa del Nightmare as I prefer to call it he would not have realised he had opened the largest can of worms in Australian property history. Mark my words this is a now a major election issue that must be intelligently resolved given what is actually happening now is unprecedented and will cost a party an election if it continues to go unchecked and ignored.
I have said for many years now that the Foreign Investment Review Board (FIRB) is right up there in terms of the most hopeless departments in Canberra. As was the case with Villa del Mare you don’t need to contact FIRB all you need to do is just buy it and if investigated once the divestment order is issued just phone a friend (as was the case with Villa del Mare) and transfer the property into an Australian residents name – which is totally legal and requires no further questions. 
This now opens the flood gates for all illegal purchases to follow suit as this is the legal precedent thanks to this approved divestment order. We can also expect criminals from all over the world will be eyeing Australian real estate as a wonderful vehicle to wash the proceeds of crime. What we have now is a person on unemployment benefits can appear as the owner on say a twenty plus million dollar home due entirely to the many legal loopholes. 
When we look back on federal governments in action we note that they only act quickly on three things – terrorism, natural disasters and wars. When you look at what’s happening to Australian property you could say that today it has a bit of all three in its DNA. 
The burning question is how do you fix this to ensure that the loopholes are closed once and for all? Well that’s easy as I have always been mystified as to why federal governments are so backwards and lazy in keeping records on Australian property. 
All that needs to be done is when a property exchanges the lawyer or conveyancer immediately after exchange logs onto the Australian Taxation Office (ATO) website under Australian Property Register (password protected of course) and provides the name(s) of the purchaser, their address, who acted for them, the address of the property and wait for it – their tax file number. Then the ATO can wash this data as well as providing the information to the FIRB for review. 
If you have a divestment order and the owner phones a friend to transfer the property into their name in order to hold onto the property. Then Joe Hockey should immediately get rid of his stupid $5,000 fee on a foreign purchase and replace it with an annual Federal Property Holding Tax at 1.75% of the calculated land value. In the case of Villa del Mare that would be a $525,000 annual tax – so get the foreign buyers to assist Australia in getting its budget back to surplus faster.
But sadly it’s just not that simple given from July 1 the Abbott government is set to release its Premium Invest Visa (PIV), which is for sale at $15 million. Once an applicant has completed their PIV and handed over the required $15.000 you are rewarded with permanent residency in less than twelve months. The PIV replaces the SIV (Significant Investor Visa) which required $5.000 million investment over a four year term to then get permanent residency. You could be excused for asking oneself just who exactly does the SIV and PIV benefit? But I’m sure you already know the answer to that. 
In the meantime the House of Representatives Economics Committee has announced a “new” inquiry into home ownership. I find that simply fascinating given none of them would actually know what exactly they are looking for. The Chair of the Committee, John “Love ‘n Deuce” Alexander, said that ‘home ownership is an issue that lies at the core of the Australian dream and represents the largest investment that most taxpayers will make during their lifetime.
The importance of this issue throughout our nation makes it worthy of a detailed inquiry.’ Well isn’t that riveting? Submissions to the inquiry are requested by 26 June 2015, and the proposed reporting date is 03 December 2015. 
Oh I get it the Abbott government will release its action plan just before the next election. See I told you foreign ownership is an election issue. 
I wonder what will happen when I email them this blog titled ‘My Submission’.
MOSMAN – 2088
• Number of houses on the market this time last year – 102
• Number of houses on the market last week – 57
• Number of houses on the market this week – 57
• Number of apartments on the market this time last year – 72
• Number of apartments on the market last week – 50
• Number of apartments on the market this week – 49
CREMORNE – 2090
• Number of houses on the market this time last year – 7
• Number of houses on the market last week – 3
• Number of houses on the market this week – 4
• Number of apartments on the market this time last year – 27
• Number of apartments on the market last week – 13
• Number of apartments on the market this week – 10
NEUTRAL BAY – 2089
• Number of houses on the market this time last year – 7
• Number of houses on the market last week – 3
• Number of houses on the market this week – 3
• Number of apartments on the market this time last year– 48
• Number of apartments on the market last week – 31
• Number of apartments on the market this week – 27
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robertsimeon-hRNTwJyXkQ

Feds should hang up on the ‘phone a friend’ loophole: Robert Simeon

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When the Budget was released this week I kept reading with great interest that the government had failed to address ‘housing affordability’. Truth be known the only thing that the Abbott government actually controls is foreign buyers and taxation such as negative gearing and capital gains tax. With regard to foreign buyers it has been well documented that with regard to this portfolio they have Failed it with a capital ‘F’.
In fairness the Federal government would respond by saying that to the contrary they have already unleashed the Australian Taxation Office (ATO) to forensically investigate all property transactions that they believe have contravened the laws. Well if it wasn’t for some bloggers and journalists who pointed this out to the Abbott government foreign buyers would be still running amok. I believe the findings will leave most property observers gobsmacked because I believe we are talking about thousands and thousands of sales.
It’s interesting to note that last week a Senate committee made 40 something recommendations pertaining to housing affordability which included calls to review negative gearing and the appointment of a federal minister for housing, to name just two. Well I have been vocal on not having a housing minister since the Abbott government came to office. More interesting was that Coalition senators immediately rejected the findings – well no surprises there.
If you look closely at the housing affordability debate it can be quickly summed up that data shows we are not building enough high density developments. I wrote about this recently – Lots of positives from discussing negative policies where the NSW government has recognised the problem stemming from municipal councils who are rejecting developments despite the Sydney population expanding at unprecedented levels. The NSW government wants to merge councils to free up more development to meet Sydney’s population explosion.
Should the NSW government be successful with its charter then the price of apartments will obviously come down as too rents. So I’m somewhat mystified why property investors are driving up apartment prices when such a major announcement is pending.
The Abbott government needs to take a very serious look at the legislation that allows foreign buyers to purchase off the plan. I believe that it would be sage for the Abbott government to place foreign buyers on – hold until the ATO has released its preliminary findings. What we are seeing today is Chinese developers out bidding the local developers simply because the off – the – plan legislation allows them to sell directly overseas to foreign buyers so these properties never even hit the Australian market. A vast number of these properties are land banked so they remain vacant which again is self-defeating and ludicrous that this can happen in this day and age.
This week we also read that there are foreign criminals trying to buy Australian real estate to wash their money by investing in real estate. Well this is nothing new as I have heard a few examples of agents who questioned some foreign buyers who expressed interest in landmark Sydney residences.
Thailand has had serious problems with the Russian mafia who have bought up significant parts of that country where the government announced a few years ago that it was cracking down hard on these transactions. This is a global problem where Australia immediately needs to take decisive action which also means tightening the many legal loopholes.
Take the recent divestment order on Villa del Mare where it was found that the Chinese purchaser did not have Australian residence. When I wrote about this <a href="/expert-insights/treasurer-joe-s-villa-del-nightmare-robert-simeon">Treasurer Joe’s Villa del Nightmare</a> on March 5 I said that the purchaser would find an Australian resident to buy the property. Well <a href="/news/australian-buyer-lola-wang-li-emerges-with-villa-del-mare-the-39-million-point-piper-firb-home">Australian buyer Lola Li emerges with Villa del Mare, the $39 million Point Piper FIRB home.</a>
The good news to come from this debate is that for the first time “the dogs are barking” and the Abbott government has to act – and act fast. Finding a viable solution to foreign buyers will prove a much harder assignment than towing back boats.
With regard to new developments, for starters there should be a selling ratio of foreign buyers to Australian residents established.
The Australian property industry has never before encountered such a debate and much of this stems from record low global cash rates. Investors are chasing returns and Sydney is one of the hottest property markets on the globe.
The Abbott government needs to send a very clear message to foreign buyers which is either buy or bye?
Mosman Market
When you look closely at the actual numbers of properties on the market you will struggle to say that the market is booming or bubbling as some prefer to say. Historically when markets are booming this coincides with record volumes being on the market which is otherwise known as a feeding frenzy. The confusing parts about our local markets are that stock levels are down 50 per cent on this time last year or thereabouts.
MOSMAN – 2088
• Number of houses on the market this time last year – 102
• Number of houses on the market last week – 57
• Number of houses on the market this week – 57
• Number of apartments on the market this time last year – 72
• Number of apartments on the market last week – 50
• Number of apartments on the market this week – 49
CREMORNE – 2090
• Number of houses on the market this time last year – 7
• Number of houses on the market last week – 3
• Number of houses on the market this week – 4
• Number of apartments on the market this time last year – 27
• Number of apartments on the market last week – 13
• Number of apartments on the market this week – 10
NEUTRAL BAY – 2089
• Number of houses on the market this time last year – 7
• Number of houses on the market last week – 3
•Number of houses on the market this week – 3
• Number of apartments on the market this time last year– 48
• Number of apartments on the market last week – 31
• Number of apartments on the market this week – 27
 Source: APM Price Finder
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Do we tell foreign buyers to buy or bye? Robert Simeon

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When the Head Teller at the Reserve Bank of Australia dropped the cash rate to a record low of 2.00% this week the Head Cashier AKA Joe Hockey immediately started bellowing "Australians – spend – spend – spend."
So let me let you in on a secret Joe – Australians are spending up big, it’s just that they are using the online loophole where they don’t have to pay you GST. The other problem is that following the Global Financial Crisis many Australians (to save money) reverted back to paying cash for services simply because that way they get a significant discount.
Naturally those who have negatively geared their properties don’t engage in the cash for services given they need the receipts in order to gain their much required tax reduction. I guess that given nearly all developed countries have a tax structure where you do pay a tax when you sell the family home, however all monies spent – mortgage, maintenance and improvements – are a tax deduction. So I hope now that you can understand why GST receipts are in decline.
When the GST was introduced nearly 15 years ago a comparative analysis was undertaken to see what the online shopping receipts were likely to be for purchases under $1,000. The analysis which in all probability was done using a Commodore 64 with a flashy floppy disc drive found that it would cost as much to collect the GST on these purchases so the plan was shelved.
Today Australians are all over <a href="https://www.ozsale.com.au/default.aspx?cid=10" target="_blank">OZSALE</a> and <a href="https://www.dealsdirect.com.au/" target="_blank">DealsDirect</a> to name just two who just happen today to be hugely successful online businesses that turn over hundreds and hundreds of millions each year. According to the National Australia Bank’s (NAB) latest Online Retail Sales Index – Australians spent a record (yes record) $16.6 billion online in the year to January 2015. Given that the vast majority would be sales with no GST payable that’s at least $1.500 billion in missing revenue each year – now that’s embarrassing.
Deloitte has just readjusted the budget projections to take into account the latest economic news where last year’s budget deficit was $48.5 billion. Deloitte is predicting this year’s deficit will be $5.5 billion worse than predicted a year ago, and will be close to $45.9 billion. All will be revealed next week but rest assured it will be a shocker – although it’s difficult to agree with increasing the GST when we have all those ‘rivers of gold’ that the federal government is missing simply because they won’t reform.
Just as embarrassing was the announcement last week by Prime Minister Tony Abbott that foreign investors who have purchased illegally in Australia have until the end of November to come forward to avoid criminal charges and severe fines. Now I have no doubt that illegal property acquisitions will be huge in number but how about upgrading from Windows 2003 and start a proper National Property Register which has been promised for years.
The illegal buying debate does get amusing at times given some are saying that the best method is when buyers attend an auction to bid they must provide identity and that data is recorded – that then will stop illegal buyers. Well, sorry no it won’t. That legislation was brought in 2003/2004 in an effort to stop dummy bidding where records of identification are recorded should the Office of Fair Trading require an investigation. If a party attends an auction and they want somebody to bid on their behalf it is that person bidding who provides the identification not the eventual buyer who is not required to provide any identification – even though they may successfully buy the property.
Any buyers who have purchased illegally would now be contacting their respective legal representatives and immediately transferring ownership into the name of an Australian resident – the federal government has given them a six month window to conform and that’s based on the illegal owners coming forward. Brilliant plan that one!
With the Head Cashier now dutifully accepting the pseudo role of Housing Minister the forensic search for illegal purchasers across Australia has begun in earnest. Maybe Joe should spend a week of work experience at the NSW government who just collected more than $5.000 million from those naughty first home buyers who illegally applied for grants. Going back three years and with nearly 1,400 investigations they found 478 first home buyers who were forced to repay their illegal grants. A spokesman for the NSW Office of State Revenue said it routinely conducted ‘’random and targeted audits matching and data mining.”
All that Joe Hockey needs to do is find a way to get hold of that data and do a targeted audit through his Australian Taxation Office audits plus some additional data mining using stamp duty records.
Why is it that Canberra just doesn’t see the billions they lose each year from GST online sales and why it’s so easy to set up a National Property Register?
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Chaos in Canberra but that’s not unusual: Robert Simeon

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The Australian property debate has never been as interesting, given we are on the precipice of change – and the politicians don’t like it, either. 
Take the negative gearing debate, which has been quite fast and furious of late. The catalyst for the first time was that both major parties had to declare what their positions were, and was there a slight chance of reform? Previously, when any policy topics were discussed they were usually framed with the standard “no comment”. The major difference today is that the electorate demands a more exacting policy position from the major parties. This is good debate.
This week, myself and many other property commentators were left with egg on our respective faces when the 2012/13 Australian Taxation Office figures identified that tax breaks claimed for rental properties fell from $13.8 billion in 2011/12 to $12.0 billion.
 This reduction was attributed to the fall in interest rates, although I am not so sure that was a major contributing factor. On 1 July 2012, the cash rate was 3.50% and by 30 June 2013 it had fallen to 2.75%, although we do know that the property investor surge really started to accelerate after June 30, 2013. And since then the cash rate has now fallen 0.50%, so on that basis for 2013/14 we can expect a further reduction in negative gearing tax breaks? I’m not so sure, but it’s a very weak argument, citing low interest rates, given we currently find ourselves with an historically low cash rate.
The conversation that really needs stepping up is housing affordability and finding the right balance, which for starters means building significantly more residential properties. 
Cue the NSW Government's <a href="https://strategies.planning.nsw.gov.au/Portals/0/Documents/1_Draft_Metro_Intro.pdf" target="_blank">Vision for Sydney 2031</a> which tackles how Sydney’s bulging population growth needs to be better managed, and that simply means re-zoning existing properties and replacing them with high-rise developments. 
The only problem is convincing the respective councils to adopt these policies, which is a major stumbling block given most councils within the Sydney CBD are against such developments – which explains why the NSW government wants to merge councils to break this deadlock.
For example, the plan is for Mosman council to approve approximately 6,000 new developments over the next 16 years, which works out at about 400 new properties each year. Depending on whether your local council has a strong transport infrastructure such as a train line, this could be much higher. Councils have been crying poor for years so it remains quite dumbfounding why they would resist an additional 400 new rate payers per annum in Mosman, for instance. It does not cost them anything as the developer is wearing the costs, however historically councillors are concerned about re-election, and being pro-development is not a good look in a community.
For those very reasons it makes sense why the councils should be amalgamated given Sydney’s population is well ahead of earlier predictions. It is a very hard debate to balance given the NSW government is the sole arbitrator on this decision and its Vision for Sydney 2031 clearly demonstrates how paramount new developments are, as well as the benefits courtesy of land tax and stamp duty.
If we use the Mosman example, all new developments these days are a mixture of retail on the ground floor then a few floors of commercial then residential above. The reason for this combination is that where possible there needs to be a formula that encourages a 24 hour activity to drive small businesses in the community. The commercial and retail keep the hive of activity going during the day and the residential occupants take over after work.
So if Mosman requires 400 new developments each year and each new development averages out at approximately 25 apartments then Mosman, to meet these guidelines, will need to be building approximately 16 such developments for the next 16 years.
Well you can already start seeing the Not In My Backyard protests gathering momentum, although there is very little that can be done, given this is the NSW Government mandate, and they just so happen to be the sole decision maker on this topic for conversation.
What makes this even more intriguing is whether or not the Federal government will amend the foreign ownership purchasing off-the-plan rules?
When the NSW government succeeds with this massive infrastructure drive the costs of apartments will start to decline given the markets will be faced with an over-supply which then delivers more affordable housing with lower rents for tenants.
A great plan in theory, but will it succeed?
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Lots of positives from discussing negative policies: Robert Simeon

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Negative gearing is safe for the short-term and definitely gone for the long-term simply because we are witnessing housing dynamics that have never been seen before. 
Both federal and state governments know that it’s imperative to drive Australia’s population at rates never seen before because this drives revenue.
Federally, the Abbott government is struggling to get over the mining boom demise, especially when it relates to debt and deficit.
This week I read a comment by Craig James: “Over the last 65 years the federal budget has been in deficit 71% of the time with the average deficit 0.9% of GDP."
Now back to the housing dynamics which is win, win, win for the NSW government and woe, woe, woe for the federal government. Last week <a href="https://www.rwm.com.au/2015/04/17/hold-whats-going/" target="_blank" title=" Hold – on, what’s going on here">I wrote</a>: “Secondly the big property market mover in Sydney especially is the rezoning of high density residential land into new developments. Previously this was a domain dominated by Australian developers who now can’t compete with the Asian developers. Given that it’s legal to buy new off the plan, these developments are then resold exclusively in Asia.”
The NSW government is only too well aware that the booming real estate markets are its “rivers of gold” – these revenues are vital to ensure a budget surplus is maintained and more particularly as the government is about to embark on the greatest infrastructure spend in NSW history.
In order to balance the books and remain the most prosperous state/territory in Australia the NSW government is focussed on two revenue streams – stamp duty and land tax. To make this happen NSW will see a development explosion of apartment developments with the NSW government’s blessing. It knows only too well that Asian developers are all over Sydney developments given they have enormous offshore markets to capitalise on. The business model is quite simple – the government will drive infrastructure predominately from the sale of the wires and poles and the developers will follow Pied Piper-style.
For this to happen the NSW government needs to change the mentality of local councils whom for generations have been anti-development and protective of the suburbs cultural and environmental heritage. So what the NSW government is now doing is trying to entice councils to merge so that it will then be easier to abandon the community mentality and embark on massive highrise developments. It’s all about the revenues from the developers and the ongoing stamp duty and land tax trails.
Now this may be fine for the NSW government which has just been re-elected for another four year term but it spells disaster for the federal government given the concentration is on investors who no doubt will want to remain deeply immersed in negative gearing. It also means that rents will fall although we must not forget that in the background we will see a massive population drive.
Naturally there will be a massive movement from those who were previously employed in the mining sector who will then migrate into the building and construction sector.
By all reports Sydney and surrounding areas are now on the cusp of a massive construction/real estate boom which I might point out is totally different to a property boom. This is a property investor’s boom which is completely different to the household boom which is exactly what we have been witnessing of late. The majority of the investors will come from offshore combined with Australian resident investors who will be all over the high density rezoning that we are currently witnessing.
Now many will be massively against this massive construction boom – although as I see it in the short term there is not much that can be done so we simply have to go with the flow.
In the meantime watch with interest what happens to the local council mergers especially with regard to high density rezoning – which is coming to a suburb near you. If the local councils stymy and delay new construction the government is then likely to step in in typical ‘Big Brother’ style. All I can say is watch these developments with interest given the wheels of motion have started.
Back to the negative gearing debate which I do find somewhat comical given the federal government has advised that there are no intended changes on the horizon. Well that is fair and reasonable given they are working from the 2011/12 tax figures. We all know it’s the 2012/13, 2013/14 and 2014/15 where the property investor boom took off so for some strange reason there has been a delay releasing the 2012/13 and 2013/14 negative gearing results...
Makes one ponder just why that is or possibly just a coincidence? I’m with the former.
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Is negative gearing the sacred cow or sacrificial lamb? Robert Simeon

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The internet has become a fascinating tool; it’s revolutionised how we do business today but it has also caught many governments off guard. Not to mention made them more accountable as strange as that may sound. 
For example, I have been for some time now mystified about how Australia’s house market continues to soar with Sydney prices up nearly 15% just in the past 12 months. Our unemployment rate sits at 6.1% which is the highest rate (or thereabouts) for 13 years, where of all developing countries Australia’s is the only rate increasing. And real wage growth is now at the weakest level for two decades.
Deutsche Bank has just released its fourth annual Mapping the World’s Prices report and for the fourth year in a row Australia sits at the top of the list for being the most expensive. Yes Australia is now into its 24th year of uninterrupted growth – a feat no other developed country has been able to replicate. It must have been release week as the International Monetary Fund also produced its World Economic Outlook which has economic growth still on target at 2.8% for 2015. Before we get too excited they also thought that Greece will be the strongest Eurozone economy over the next few years too.
Whilst businesses and individuals have been using and adapting this online phenomenon the same can’t be said for a government, the best case at hand is that they have no idea just who is buying Australian real estate. In 2014, I and others started writing and probing this actual point about foreign investors in Australia. This brought the treasurer Joe Hockey on 19 March 2014 to announce an inquiry and report on ‘Australia’s foreign investment policy as it applies to residential real estate’. 12 months on nothing has actually happened so it would appear that such a debate might be construed as not being politically correct. Treasurer Hockey did announce to all and sundry that he had sought a divestiture order on the $39 million sale of Villa del Mare in Point Piper – although despite claims of more to come no announcements have been made. One might think that the backlash of sentiment coming from Asia may have seen these forensic investigations put on the back-burner?
Let’s face it – Australia is one very popular destination especially when you look back at what Philip Ruddock as Immigration Minister had to say in a speech back in 2000. Back then official projections suggested that Australia’s population would reach 24 million by 2050. Just 15 years later those population targets have almost been met with the latest projections having our population as now likely to be 40 million by 2050.
I read a report recently that the Master Builders of Australia estimated that overseas buyers make up approximately 5 to 6% of Australia’s housing market. The Foreign Investment Review Board (FIRB) figures show for the year from July 2013, $24.8 billion in foreign investment was approved, 44% higher than the previous year.
It’s now common knowledge that the FIRB have failed miserably in their assigned duties. The problem we have is twofold. Firstly, the government has no way of precisely knowing exactly how many properties are being acquired by foreign investors – I would suggest that realistic estimations should be more than double what the FIRB are suggesting. The only way to know for sure would be to extrapolate the stamp duty data and then run that through the Australian Taxation Office data – and we all know that won’t be happening anytime soon.
Secondly the big property market mover in Sydney especially is the rezoning of high – density residential land into new developments. Previously this was a domain dominated by Australian developers who now can’t compete with the Asian developers. Given that it’s legal to buy new off the plan, these developments are then re-sold exclusively in Asia.
So what we are clearly seeing is the Asian property developers paying much more for the sites given the apartments can be sold for much more to overseas buyers – who are using the buying off the plan incentives to buy Australian real estate which is totally legal.
 When we dart back to populations we see that as of 1 January 2015, the population of China was estimated to be 1,370,811,348 people which is a bit more than our 23,790,582 as at 30 September 2014.
Maybe our federal government could lower our unemployment rate by employing some computer programmers’ to extrapolate all the countries’ stamp duty data and then cross pollinate that with Australian Tax Office data and create their (as promised) National Property Register?
<a href="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-09-PM.jpg"><img class="aligncenter size-full wp-image-466586" src="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-09-PM.jpg" alt="16-04-2015 12-10-09 PM" width="614" height="324"></a>
<a href="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-48-PM.jpg"><img class="aligncenter size-full wp-image-466587" src="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-48-PM.jpg" alt="16-04-2015 12-10-48 PM" width="616" height="324"></a>
Then again I’m probably spending way too much time on my computer and simply imagining what is happening to Australian residential property prices!
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Hold on, what’s going on here? Robert Simeon

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There are three things missing from Australia’s current economic debate – honesty, bravery and conviction.
We know that the Australian tax system is badly broken however the politicians won’t do a thing to fix it simply because they are only too well aware that any such moves would jeopardise their political wellbeing.
Social media runs amok around every time the Reserve Bank of Australia (RBA) meets to discuss the cash rate, whilst we all know that monetary policy is failing miserably. We even have competitions to see which economists have the highest success rate by predicting the cash rate outcome.
The reality is that since the global financial crisis (GFC) we can be certain of two things – cash rates are all headed to zero (or close to) and debt and deficits keep climbing. It’s interesting to note that this year marks the fifth anniversary of the Henry Tax Review although each year it re-emerges under a different name – intergenerational report and last month’s tax discussion paper. All sadly are nothing more than public relations exercises that highlight weak governments with an inability to act.
Iron ore prices are collapsing as to the price of oil and the Aussie dollar has fallen about 20% over the last 18 months. Like most governments around the world they are now devoid of an economic conviction and simply don’t know how to start a national debate.
Here’s an idea – stump up $50 million and see which Australian businesses can come up with the best economic reforms, and that would mean stripping all current governments – local, state and federal. Of course we keep getting that old chestnut of raising the GST although the problem Australia has is so much work is done in the cash economy that the GST fails the test miserably. You wouldn’t need to increase the GST if all the loopholes were closed.
We should be looking at the economic models were the principle place of residence is taxed on profits made when sold. It should also be a tax deduction for all expenses too – that way the cash economy is significantly minimised and GST receipts increase significantly. Then the state governments can start shutting down many of their tax rorts like payroll tax, land tax and stamp duties.
There are two other very important points that need raising which highlights another problem Australia has – <a href="https://insidestory.org.au/how-to-bridge-the-infrastructure-gap" target="_blank" title="How to bridge the infrastructure gap">How to bridge the infrastructure gap</a>. “The faster our population grows, the worse our governments are performing in choosing and building the infrastructure we need to cope with that growth.”
“Three statistics issued in recent days reveal the scale of the problem.
<ul>
<li>"On 26 March, the Bureau of Statistics issued the latest population figures. They revealed that Australia has grown by more than three million people in just eight years to last September. We are gaining almost 400,000 people every year. Every two and half years or so we add another million people. 
</li>
<li>"On 31 March, the Bureau released its regional population estimates for the year to last June. They showed that almost half of that rapid population growth is going into just two cities: Melbourne and Sydney. Add Brisbane and Perth, and almost three – quarters of it is going into four cities. 
</li>
<li>"On 1 April, the Bureau released its estimates on engineering construction in 2014. You might wish it was an April Fool’s Day joke, but sadly, that’s not so. It reported that work carried out in the December quarter plunged last year for the second year in a row, falling 12.5% below the 2012 peak. 
</li>
<li>"In every mainland state, infrastructure investment is now in free-fall. In most of them – New South Wales, Victoria, Queensland and South Australia – the work carried out in the December quarter was down between a quarter and a third from its recent peak.”</li>
</ul>
Now it gets even more interesting.
<ul>
<li>“But hang on, you say: isn’t that because the mining investment boom peaked in 2012? That’s true, it is winding down. And our governments have told us that that they’re increasing infrastructure investment to fill the gap, and to help sustain economic activity as the mining boom subsides. 
</li>
<li>“But what they’re doing is the exact opposite. Since 2012, the Bureau’s figures show public sector investment in infrastructure has collapsed even faster than private sector investment. In 2014 alone, it shrank 15%. Since 2012, it has shrunk 20%.”</li>
</ul>
I would think that most would agree that Australia urgently needs a public debate given our elected governments are having a shocker.
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Why our elected governments are having a shocker: Robert Simeon

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In my 30 years of selling real estate I’ve seen some amazing market trends - but what I am seeing now is arguably the most amazing trend that Australian real estate has ever witnessed before. 
The last such event, which happened on a much smaller scale, was the introduction of the capital gains tax on 20 September 1985. I was a real estate agent on my L plates who was just learning the trade and caught the back end of a mad investor rush to buy investment properties before the new legislation was enacted.
It’s called the Grandfather clause or the Grandfather Policy. It's where an old rule continues to apply in certain existing situations, while a new rule is introduced and will apply to all future cases. Cue negative gearing which is now front and centre of Australia’s great tax debate. What we are seeing today is just how smart and savvy Australian property investors are as they vigorously gold-plate their property investment portfolios. The reality of being guaranteed full deductions on your investment property explains exactly why property investors have run amok with Sydney real estate.
The government recently released its tax discussion paper which just so happens to be spruiking debate on negative gearing and capital gains tax. Property investors in Australia are all over the “Grandfather clause” simply because of the sheer weight in numbers of property investors  - in 2011-12 a staggering 883,325 of 1.266 million taxpayers claimed deductions. Negative gearing by property investors reduced personal income tax revenue in Australia by $600 million in the 2001-02 tax year, $3.9 billion in 2004-05 and $13.2 billion in 2010-11. So one can only shudder to think what this year’s deductions will be like given the investor boom.
But let’s now look at what effect this is having on local real estate markets. They reveal (something that I have been alluding to for ages) exactly how household sentiment has radically changed when it comes to buying the principal place of residence today – thanks mainly to the global financial crisis which has re-calibrated how households approach their modern day property folios.
Trading up is now a thing of the past with households now opting to renovate and then leverage investment properties from their principal place of residence – that’s right, the gold plated guaranteed tax deduction.
Look at how many houses are available today in Neutral Bay - the number is zero. If you look at the number of houses available today in Cremorne the number is also zero. When I go back over our house data for the last five years on a weekly basis Neutral Bay averaged 12 houses on the market each week and Cremorne averaged 15. Mosman houses have averaged 88 houses and today there are just 57 and going lower. What we are seeing is unprecedented given whilst the principal place of residence is tax free, households have decided to stay put and lock in long-term real estate investment property with a locked-in maximum tax deduction. All thanks to the Grandfather clause.
For the record this is the very first time that no houses have ever not been for sale in Cremorne and Neutral Bay. A coincidence? I don’t believe so.
The Sydney Morning Herald ran a piece last week – <a href="https://news.domain.com.au/domain/real-estate-news/property-investors-use-of-negative-gearing-contentious-20150330-1maq16" target="_blank" title="Property investors’ use of negative gearing contentious.">Property investors’ use of negative gearing contentious.</a> 
My commentary: “Given all that’s currently going on with overseas buyers – more particularly, the uncertainty of exactly what’s happening – it would only be reasonable that with all new developments, only Australian citizens can qualify to buy. The Australian government has lost all control for new developments where it is now imperative that the multitude of loopholes are immediately addressed. It’s that serious that our government is only now just starting to understand the debacle we have with overseas buyers who are the driving force behind these booming markets.
"When negative gearing was introduced back in July 1985 by the Hawke/Keating government, the architects would never have calculated the effects it would have in the market when you have a present cash rate of 2.25% and going lower. Only when the Liberal and Labor parties agree that they will support a bipartisan inquiry into negative gearing will we see a (probable) slowing down of the Australian property investor tsunami.
"Having said that, negative gearing is now 30 years old, where only in the last five years has it reached maturity. The fact that after each financial year we have now seen a new Australian record deduction clearly shows how well the system is being manipulated by investors.
"The consensus is not calling for its abolition – rather an intelligent discussion on what is a fair and reasonable outcome that best suits our property industry today. Given we have a record low cash rate that looks to go even lower, we could then see the cash rate at or around this level for well over a decade to come – maybe even longer, if Australian Treasury bonds are any indication.
"Instead of burying the negative gearing debate in that too-hard basket, the time has now arrived for it to be debated warts and all. It would be a fascinating debate.”
The reality of the matter is that Australia is not in one of the worst ever housing bubbles we have ever seen, rather household’s cherry-picking investment properties over trading up simply because we have a record low cash rate and with negative gearing a gold plated tax deduction which won’t be available for much longer if rumor and speculation prove to be correct.
Sydney is also on track to become the first Australian city with a population to hit 5,000,000 with demand consistently outperforming supply.
I’m of the opinion that too many commentators have completely missed the ‘big’ housing picture and are way off the mark with their persistent household debt criticism lecturing.
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The looming demise of negative gearing has triggered a tsunami of investor activity: Robert Simeon

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Without a shadow of a doubt the most asked question in Sydney real estate circles at the moment is – do you try and buy now or wait for ‘that’ market correction?
The simple answer is ‘that’ market correction may be years off, with some niche markets in all probability not even facing a correction. The key factor is the rate of growth over a twelve month period although I must admit some areas are posting capital growth gains that will almost certainly end in pain and significant losses.
I was looking at some CoreLogic RP Data statistics during the week and I found some niche markets are simply defying logic. In NSW Keiraville is presently sitting on 49.49% growth, Seven Hills 46.84% and Hay on 45.45%. In Victoria Portland is running at 47.54% and Caulfield East 45.57%. In South Australia, Wayville at 47.25%, Clayton Bay 45.40% and Paringa 45.24% – that is scary data that strengthens my argument that we should have postcode cash rates in Australia.
Overall there are two market demographics that are driving the Sydney real estate markets at above the acceptable speed limit. The first are the property investors who thus far have been 100% accurate with their market assessment given they have been driving the market now solidly for over three years. Given the Australian bond rates look to be sitting below 3% for the next decade or two, they have been very shrewd to target property and of course the benefits of negative gearing.
When negative gearing was introduced in July 1985 by the Hawke/Keating government the architects would never have calculated the affects it would have in the market when you have a cash rate at 2.25% and going lower. Only when the Liberal and Labor parties agree that they will support a bipartisan inquiry into negative gearing will we see a slowing down of the property investor tsunami.
Not all real estate markets are being drawn in the current whirlpool of real estate euphoria. When I look at the number of houses for sale in Mosman this week we see 69 homes. Twelve months ago there were 93, twenty four months ago there were 93 and forty eight months ago there were 141. So what we are seeing is reduced stock in many suburbs given vendors are simply not that interested in selling given the preference is to pay down debt which is directly attributed to the Global Financial Crisis.
A dominant player in the market today (and growing) is that of the overseas buyer and let’s be honest the government regulators have completely lost control and have absolutely no idea how strong this buyer demographic is or has been. When the Chairman of the Foreign Investment Review Board (FIRB) Brian Wilson openly admits that “The ATO is better set up for coordinating a big data approach than Treasury, which is a policy body.” We then begin to realise that the FIRB has lost this battle and the white flag has now been well and truly raised.
Naturally these comments were ignored by the Treasurer Joe Hockey and mainstream media which I find simply amazing.
<a href="https://www.therealestateconversation.com.au/news/2015/03/20/why-australia/1426842000#.VQ-irH5zm3M.linkedin" target="_blank" title="Why, Australia? ">Why, Australia?</a> Grainne Gilmore, head of residential research UK at Knight Frank, told The Real Estate Conversation:
“Over the past decade, Australia was positioned fourth in terms of countries with the greatest foreign inflows of High Net Worth Individuals (HNWI) with a gain of 22,000, which represents 14% of Australia’s total HNWI population.
"In 2014, there were 1,734 Ultra High Net Worth Individuals (UHNWI) living in Australia who had a net worth of over US$30 million.
"Sydney accommodates half of these individuals, with Melbourne (26%), Perth (15%) and Brisbane (14%) taking up the balance."
So no matter what happens to property prices in Sydney there will always be greater demand than supply given there is a fast growing line of buyers from China wanting to buy Australian real estate. Although don’t expect to hear any debate on this topic given it’s deemed ‘politically incorrect’.
Although in this day and age the groundswell is started by outside forces given this really is the only way to make politicians accountable for their inactions.
As for the cash rate there is no point in predicting where it will be at the next meeting rather where it will be in a decade’s time given we now know that Australia Treasury bonds won’t be going anywhere until 2030. Unfortunately the same can’t be said for property prices where in 2035 it’s too scary to even contemplate and I’m not talking down.
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 Australia has quite scary emerging and submerging property markets: Robert Simeon

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When Treasurer Joe Hockey announced the divestment order for Villa del Mare with fanfare and hoopla, we were left hanging on the words that there was a high expectation of more to come. 
Well there have been no more ‘big’ announcements on that front which is not that big a surprise given their top end property infatuation will in all probability reveal no further indiscretions.
Of course we are now seeing a different acquisition scenario being painted with the Australian Crime Commission reportedly investigating Melbourne real estate agents with regard to foreign buyers laundering monies in the form of real estate acquisitions. Last December, I wrote <a href="/expert-insights/investing/foreign-buyers-inquiry-leaves-many-questions-unanswered">Foreign buyer inquiry leaves many questions</a> – “Of course it is just a mere coincidence that the Chinese government requested a bipartisan arrangement with the Australian government to process the identities of all Chinese buyers who purchase Australian real estate.”
At present China only permits a resident to transfer a maximum of US$50,000 per annum, so the current investigations simply add to the intrigue of how these supposed mystery funds end up on our shores? At the heart of the problem is just how the current and previous governments have been so hopeless in monitoring real estate transactions and that not only applies to residential but commercial and agricultural as well.
Whilst these inquiries are simply a distraction that quite possibly may lead to nothing the Sydney property market today faces an unprecedented challenge.
The latest data from the Reserve Bank of Australia (RBA) shows home lending is now at $1.43 trillion at the end of January – and steadily climbing. Following last week’s meeting of the RBA where the cash rate remained steady, RateCity calculated that the average standard variable home loan has dropped to 5.07% – which happens to be the lowest in 60 years.
Given the Sydney residential market continues to run amok it is worth noting that when we witnessed these markets previously in 2003 and 2010 the cash rate was rising yet this time around the cash rate is reducing. The Australian economy grew by 0.5% in the December quarter, to then post 2.5% growth for 2014. This week, ANZ chief economist Warren Hogan suggested that a third rate cut in 2015 may be required for the Australian economy.
Last week I read with interest comments made by David Murray, who is also heading – up the Abbott government’s financial systems inquiry. David Murray said: “It is a serious issue and if interest rates continue to fall, there will have to be prudential offsets to limit the risks in the housing market.”
The trouble as I see it at the moment is that we have “too many chiefs and not enough Indians” pontificating about just exactly what is the “best practice” to manage this property dilemma. For quite some time now the RBA have telegraphed their concerns and now we see the Australian Prudential Regulation Authority (APRA) being suggested as the likely weapon to closely look at loan to value ratios. The only problem with all this is that investors have become addicted to negative gearing so any action to slow them down would only increase their tax breaks.
I am a big fan of abolishing the blanket cash rate by then introducing individual suburb cash rates that would be determined by the RBA. Presently all the major lenders analyse data daily on the suburb trends so it would make sense that all new lending be determined by the individual strength of that suburb when applying the suburb cash rate.
Of course the higher the rate for an investor the higher the negative gearing so the Abbott government needs to look at just how many properties can an individual investor have in a property portfolio? We have anecdotal evidence that investors have smashed first home buyers when they are competing against each other – with the investors winning in nearly every instance.
It has been well documented that David Murray is not a fan of negative gearing, which is stated in his report that still sits with the Treasurer Joe Hockey – so don’t expect a release anytime soon.On top of that the government is now pursuing releasing superannuation to first home buyers – which is a dumb idea. How about releasing the Murray Inquiry and let’s see what recommendations are contained within that report. I’ll guarantee a superannuation release does not crack a mention.
In the meantime we can expect the Sydney property juggernaut to surpass all previous records and the federal government to do next to nothing about it due to their galvanisation of popularity polls.
The government will be focused on media distractions as against working to correct the imbalances that are so obvious and confronting to Australia’s residential property markets.
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The Sydney property conundrum: Robert Simeon

The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Robert Simeon

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