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Westpac is raising the maximum loan-to-valuation ratio (LVR) for interest-only loans to property investors to 90 per cent, from 80 per cent.
This move will allow property investors to take out interest-only loans with smaller deposits.
New interest-only loans to owner-occupiers will remain subject to an LVR cap of 80 per cent.
The bank's general manager of home ownership Will Ranken told Domain that the "change will provide a competitive proposition for investors looking to purchase their next property."
Since APRA removed the cap on the proportion of new interest-only lending Westpac haven't been the only Bank in the Big Four to make a move like this.
Earlier this year ANZ also raised LVR limits for property investors with interest-only loans.
There have also been a series of rate cuts as banks bring their interest rate down in line with the recent cash rate cuts.
Bell Potter analyst TS Lim said banks would try to attract property investors now that property prices had bottomed, but he thought lenders would still be "pretty measured."
"It's an area where the banks are chasing market share. I think it's going to grow, but not as quickly as before. People are still wary," Mr Lim said.
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j.ballantyne1990-6AQqhLzZaK

Westpac loosens investor loan restrictions on interest only loans

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In the 12 months to July 2019 there were over 21,000 house sales in the greater Perth region, according to the latest Herron Todd White (HTW) residential report. 
The valuation firm took a look at the rental yields across the country to dissect where to find the best returns in residential markets. 
REIWA data shows a median sale price of $485,000, some 2% lower than the previous quarter and 3.4% lower than the June quarter 2018.
There were about 5,000 units sold in the same period with a median sale price of $385,000 – a 1% reduction compared to the March 2019 quarter and 5.5% lower than the June quarter 2018.
Nearly 5,000 vacant lots were sold in the year to July 2019 with the supply of land continuing to outweigh demand.
A recent article from the REIWA stated that: “The number of properties available for sale and rent have dropped to the lowest levels since late 2014, with only 13,831 properties listed for sale and 6,599 properties listed for rent on reiwa.com in August.”
"This isn’t too surprising since the June quarter generally sees the lowest sales and listing volumes due to the winter weather," the valuation firm commented. 
The HTW report notes Perth’s rental market has continued its resilience against a subdued sales market, with the median weekly rental holding at $350 for the June quarter - a median of $360 for houses and $330 for units.
It took an average of 43 days to lease a property in the greater Perth region for the June quarter 2019, reducing by two days from the previous figure of 45 days.
As the days to lease diminishes so does the negative house price growth. CoreLogic’s latest home value index shows dwelling values in Perth declined for another month to 0.5% in August, yet the rate of decline is slowing, which is a positive indication that prices in Perth may be approaching the bottom.
The new Housing Affordability Report from the Real Estate Institute of Australia has indicated that rental affordability in Western Australia improved in the June quarter as the proportion of family income required to meet the median rent has marginally decreased by 0.1% to 16.4%, however this is still an increase of 0.1% compared to the same time in 2018.
"So how does the current market fare for investors? The average yield for houses in greater Perth is 3.8%, generated from the $485,000 median house price and a $360 median weekly rental. Units prove to be a more lucrative asset, producing an average yield of 4.5% from the $385,000 median and $330 median weekly rental," the valuation firm said. 
"As always, these figures shift significantly depending on the property’s location." 
As an example, some of the lowest yields in Perth come from suburbs within the prestige market. Applecross, Cottesloe, Dalkeith, Mount Pleasant, Peppermint Grove, Shelley and Swanbourne all have yields ranging from just 1.8% to 2%.
The median house prices in these suburbs range from $965,000 up to $3.575 million.
The highest yields come from suburbs within the lower price band. Armadale, Butler, Camillo, Chidlow, Coodanup, Coogee, Cooloongup, Kwinana, Leda, Mandurah, Orelia, Parmelia, Stratton and Yangebup all hold the highest current yields for the greater Perth region.
"This suggests that on yield potential alone, some of the best suburbs to invest in are within the cities of Armadale, Kwinana, Mandurah and Rockingham, all being local authorities in traditional mortgage belt areas," the valuation firm stated. 
Big price reductions are being seen in greenfield estates on the outskirts of Perth, the report noted. 
Established dwellings are experiencing long selling periods as the competitive financing options of house and land packages gives little encouragement to purchase anything near new, as such vendors are discounting multiple times in order to meet the market. 
This means that affordability in these areas keeps improving. Land estates in Baldivis, Byford and Ellenbrook have been hit hard.
'The median house price in Ellenbrook has recoiled, receding by more than 20% since 2015. Byford’s median has fallen by 14.4% and Baldivis’s has dropped 15%.
One factor contributing somewhat to falling house prices is the reduction in average lot sizes.
The average lot size in Perth decreased from 580 square metres in  2010 to 375 square metres currently and the first micro-lots have just been finished in Ellenbrook with a total area of 80 square metres.
Over the past decade, new zoning has created potential for smaller lots within land estates and has allowed for a flurry of subdivision in established suburbs all over Perth.
The median house price in Baldivis for the June quarter was $390,000 with a weekly house rental of $350 showing a 4.7% yield.
The median unit price was $189,000 with a weekly unit rental of $265 showing a 7.3% yield.
"Strong yields can be found for investors in Baldivis as established dwellings can be purchased for affordable prices, however caution must be used as we expect market values to continue softening in the coming months, so always engage a property professional before making a purchase decision. The cost of an up front valuation is a pittance compared to the risks it can identify," the valuation firm commented. 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/baldivis%20.jpg" alt="">
This property shown above was purchased in July 2019 for $308,000.
Built in 2012, the house at <a href="https://www.realestate.com.au/sold/property-house-wa-baldivis-130642178" target="_blank">12 Jane Turn, Baldivis</a> comprises four bedrooms, two bathrooms and a double garage on a 521 square metre allotment.
It was leased in November 2018 for $350 per week generating a gross yield of 5.9%.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/ellenbrook.jpg" alt="">
The property shown above  was purchased in August 2019 for $370,000.
Built in 2016, the house at <a href="https://www.realestate.com.au/sold/property-house-wa-ellenbrook-131046762" target="_blank">52 Jennapulin Crescent, Ellenbrook</a> comprises three bedrooms, two bathrooms and a double garage on a 419 square metre allotment.
It was leased in May 2018 for $350 per week. The rental value may have decreased since this time, however it shows a gross yield of 4.9%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/ellenbrook%20unit.jpg" alt=""> 
This first-floor unit shown above was purchased in July 2019 for $200,000.
Built in 2014, the unit at <a href="https://www.realestate.com.au/sold/property-apartment-wa-ellenbrook-130501974" target="_blank">18/1 Urban Lane Ellenbrook</a> comprises two bedrooms, two bathrooms and one car space with 110 square metres of floor area.
It was leased in April 2018 for $275 per week providing a gross yield of 7.2%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/byford.jpg" alt=""> 
The property shown above was purchased in August 2019 for $420,000.
Built in 2015, the house at<a href="https://www.realestate.com.au/sold/property-house-wa-byford-131436294" target="_blank"> 50 Tourmaline Boulevard, Byford </a>comprises four bedrooms, two bathrooms and a double garage on 480 square metres of land.
It was leased in December 2018 for $400 per week, reflecting a gross yield of 5%.
"For investors looking to add apartments to their portfolio, older units in good locations can prove to be quite attractive on a gross return basis whilst appearing attractive from a capital growth point of view as well," the valuation firm added. 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/south%20perth.jpg" alt="">
The property shown above sold for $270,000 in July 2018.
Built in 2002, the apartment at <a href="https://www.realestate.com.au/sold/property-unit-wa-south+perth-128593930" target="_blank">14/134 Mill Point Road, South Perth </a>comprises one bedroom, one bathroom and one car bay with a floor area of 69 square metres.
An identical unit in the complex was leased in April 2019 for $300 per week showing a gross yield of 5.7%.
South Perth’s unit median settled at $567,750 for the June quarter 2019, increasing 0.1% since the March quarter.
The report notes unit median in Mosman Park settled at $425,000 for the June quarter 2019, increasing 11.4% since the March quarter 2019 and 18.9% year-on-year. 
Achieving high yielding assets could be seen as important in the current market whilst we await the return to capital growth.
The strong rental market in Perth would definitely be keeping investors’ heads afloat as the gap between property value and gross rental return increases in some areas.
Property investment is typically seen as a medium to long term venture as high costs are associated with both the purchasing and selling of dwellings, so depending on the investor’s profile, short term yields can be of little importance when buying in a secure location.
At the current stage of Perth’s market cycle, purchasing in a good location with growth potential could end up being a fruitful venture.
Investors who purchased in the years leading up to the resources boom (2002 to 2006) may be looking towards reversion in the coming years as the completion of some 20-year mortgages may align with the peak of the next market cycle.
The median house price has increased from $195,000 in 2002 to $485,000 currently, an increase of approximately 250%.
One popular asset that can generate high gross rental returns is student accommodation.
Five to six and even seven-bedroom dwellings can be bought at fairly reasonable prices and the rooms leased individually for anywhere from $50 to $250 per week.
Even though the returns are enticing, you do have to consider that there could be higher running costs such as management and maintenance, along with vacancy rates over the holiday period. Utilities are often included in the rent so the expenses can fluctuate quite significantly.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/bentley.jpg" alt="">
The property shown in above was purchased in May 2019 for $450,000. 
Situated less than 200 metres from Curtin University, the townhouse at <a href="https://www.realestate.com.au/sold/property-townhouse-wa-bentley-130142270" target="_blank">11E Beverage Street, Bentley</a> built in 2000.
It comprises six bedrooms, three bathrooms and two car bays on a 247 square metre allotment.
One of the rooms is currently being advertised at $140 per week. At this price, the property has a potential gross yield of 9.7%.
"The highest yields in Western Australia are found in the regional centres close to mining resources activity," the valuation firm stated.
Kalgoorlie-Boulder’s median house price settled at $300,000 for the June quarter.
With an average house rental of $360, the average yield is 6.2%.
The unit median is currently $192,500 with a median rental price of $280 per week showing a yield of 7.5%.
It takes an average of 43 days to lease a property in Kalgoorlie-Boulder.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/kalgoorlie.jpg" alt="">
The property shown in above sold for $102,000 in July 2019.
Built in 2000, the unit at <a href="https://www.realestate.com.au/sold/property-unit-wa-kalgoorlie-131524586" target="_blank">8/237 Dugan Street, Kalgoorlie</a> comprises one bedroom, one bathroom and one car space on a 201 square metre allotment.
It is currently being advertised for rent at $280 per week creating a potential gross yield of 14.3%.
"The wider Port Hedland area’s median house price settled at $225,000 for the June quarter. With an average house rental of $410 the average yield is 9.5%," the report added. 
The unit median is currently $171,500 with a median rental price of $320 per week showing a yield of 9.7%.
It took an average of 51 days to lease a property in Hedland during the June quarter 2019, although recent agent feedback indicates demand has increased in the interim.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/21/south%20hedland.jpg" alt=""> 
This property shown above sold for $179,000 in August 2019.
Built in 1970, the house at <a href="https://www.realestate.com.au/property-house-wa-south+hedland-427539514" target="_blank">11B Smith Street, South Hedland</a> comprises three bedrooms, one bathroom and two carport spaces on a 477 square metre allotment.
It was leased for $375 a week in September 2018, generating a potential yield of 10.9%.
It is currently on the market for $450 a week. 
"Considering some of the rental returns we have spoken about, property investment can be a good alternative to set and forget ventures such as government bonds which achieve returns of between 1% and 4%. Many investors also enjoy the tangible aspect of owning property and it is a good way to diversify a portfolio.
"Depending on your goal it is good to strike the right balance between gross rental income and capital growth. Securing a good location close to essential amenities should always generate good returns in investments with extended holding periods.As with any investment, the risk of each property should be assessed prior to making any decision, which is where your local property valuer’s knowledge can prove invaluable."
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Perth’s rental market continues its resilience against a subdued sales market: HTW residential

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Living close to tertiary education institutions is one of the largest forces that drive rental demand in the Melbourne CBD and CBD fringe areas, according to the latest Herron Todd White (HTW) residential report. 
The valuation firm took a look at rental yields across the nation to dissect where to find the best returns in residential markets. 
With a population of 170,000 people and growing, the CBD is home to people coming from all ages and backgrounds.
Residents range from international students, young professionals and older couples. Melbourne has something to offer everyone 
"With two of the most prominent universities located in and near the heart of Melbourne, University of Melbourne and RMIT, international students make up the largest portion of enrolments each year, resulting in a high demand for apartments in the CBD and neighbouring suburbs, ultimately changing the rental market within the area," the valuation firm said. 
These latest statistics show that apartments in the CBD are priced at an average of $435,000 and generate $530 per week in rent, earning a 5% to 6% rental yield for investors.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/mel%20cbd%201.jpg" alt="">
Latest statistics show that apartments in Carlton are priced at an average of $347,000, generating an average of $470 per week in rent, providing investors a rental yield of 7%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/mel%20cbd%202.jpg" alt=""> 
"Previously known as the world’s most liveable city for seven years running, Melbourne is an attractive city for tourists and investors," the valuation firm added.
"Whether it be a short or long-term arrangement, investors are thinking outside the box and finding ways to increase their rental property returns by taking advantage of accommodation hosting platforms such as Airbnb, where most property listings are heavily concentrated in the inner suburbs of Melbourne, particularly within the CBD areas."
The HTW report suggests secondary hot spots for Airbnb listings include areas in St Kilda, South Yarra, Port Melbourne and Brunswick.
The average cost to rent an apartment via the Airbnb platform within the CBD and fringe areas can range from $120 to $190 a night.
"If we can assume that the weekly gross rent that can be collected via Airbnb is applied to the CBD’s medium price for apartments ($435,000), this would generate an upward yield of an incredible 10%.
"With the correct marketing, property and location, there are many different ways an investor can strategically maximise their property in the CBD and fringe suburbs as Melbourne is the destination for tourists, young professionals and international students." 
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International students changing the rental market in Melbourne CBD: HTW residential 

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When looking at a glossary of property terms, yield can be found at the bottom of the list alphabetically, but should be front of mind for any property investor, says Herron Todd White (HTW).
The valuation firm took a look at rental yields across the country in its latest residential report. 
"Yield provides an indication of the annual return you will receive from your investment," the valuation firm stated.
Yields will fluctuate with the purchase price of a property, the achievable annual rental and the running costs (outgoings).
The terms gross and net get thrown around when discussing yields. The gross yield is income prior to outgoings being removed and the net yield is income after outgoings are removed. Given that outgoings vary amongst location and property type, all yields provided in this discussion are gross.
The report notes the importance of yields for investors fluctuates with location.
Historically, the inner ring of Adelaide has provided purchasers with returns in the form of capital growth.
Coupled with a stable rental market, dwellings are providing yields of between 2% and 4% whilst units have achieved yields between 3% and 5%.
Mid-1900s strata units are popular with first time investors. These properties provide an entry point at the lowest end of the market and are easily tenable.
Sold tenanted at $275 per week, <a href="https://www.realestate.com.au/sold/property-unit-sa-trinity+gardens-129994046" target="_blank">4/32 Hereford Street, Trinity Gardens </a>(pictured below) achieved a sale price of $270,000 which reflects a yield of 5.29%.
This is a circa 1960s strata unit of brick construction disposed as two bedrooms and one bathroom.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/trinity%20gardens%20.jpg" alt=""> 
"The middle ring of Adelaide has been popular with investors, providing capital gains and a rental market with more depth than the inner ring. Both dwelling and unit yields hover around 3% and 5%," the valuation firm said. 
Most popular with investors are mid-century dwellings on larger allotments. These properties provide investors with not only a rental return but upside with future development potential.
Selling for $410,000, <a href="https://www.realestate.com.au/sold/property-house-sa-mitchell+park-131144162" target="_blank">29 Thorne Street, Mitchell Park </a>(pictured below) is now advertised at $360 per week indicating a potential yield of 4.56%.
This property comprises a circa 1962 single level brick dwelling disposed as three bedrooms and one bathroom on an allotment of 663 square metres.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/mitchell%20park.jpg" alt=""> 
"With price points considerably below the metropolitan median house price and a strong rental market, the outer ring has historically provided the greatest yields," the valuation firm continued. 
Yields typically range in the 5% to 7% range with certain pockets and property types providing yields of 7% plus.
With a variable price point of $100,000 to $150,000 and achievable weekly rentals in the low $200s, maisonettes surrounding Elizabeth Centre fall into this category.
Sold tenanted at $220 per week, <a href="https://www.realestate.com.au/sold/property-house-sa-elizabeth+downs-131201546" target="_blank">48 Loftis Road, Elizabeth Downs</a> (pictured below) achieved a sale price of $140,000 which reflects a yield of 8.17%.
This is a circa 1960s maisonette of brick construction disposed as two bedrooms and one bathroom.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/elizabeth%20downs%20.jpg" alt="">
The report suggests alternative options to the traditional dwelling and strata units come in the form of unit blocks, CBD serviced apartments and secure long-term rentals such as Defence Housing.
Unit blocks can be complex investments as dealing with multiple tenancies can be problematic. The buyer profile for unit blocks would typically be investment funds and experienced individual investors diversifying a portfolio.
Yields for unit blocks within metropolitan Adelaide can fluctuate within a range of 4% to 8%.
Achieving a sale price of $830,000 in early 2019 was<a href="https://www.realestate.com.au/sold/property-unit-sa-marden-130429662" target="_blank"> 1-4/50 Marden Road, Marden</a> (pictured below).
This property comprised three two-bedroom units and a fourth three-bedroom unit. The property was partially let at the time of sale and provided an analysed yield of 7%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/marden.jpg" alt=""> 
"Single occupancy long-term rentals such as Defence Housing and serviced apartments appeal more to the mum and dad investors looking for a set and forget investment. These properties provide secure long-term rentals with rent being guaranteed through the life of the tenancy," the valuation firm said. 
Defence Housing offers leases of up to 12 years whilst serviced apartments provide a mixture of lease options.
Outgoings should be a major consideration when purchasing CBD serviced apartments. Outgoings can vary considerably from building to building depending on common areas and building services.
Two apartments may appear comparable on a gross yield basis however once outgoings are accounted for, the net yields may be vastly different. Both of these investment options are passive in nature and typically offer yields of 3% to 6%.
A Defence Housing example is the sale of 9 Farrell Street, Evanston Gardens (pictured below).
This property sold in August 2019 with the lease expiring in September 2023.
The property achieved a sale price of $319,500 and a yield of 5.53%.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/16/elizabeth%20downs%20.jpg" alt="">
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Adelaide outer ring provides the greatest yields: HTW residential 

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GUEST OBSERVATION 
Low-income tenants in Australia are increasingly likely to be trapped in rental stress for years.
<a href="https://www.pc.gov.au/research/completed/renhters/private-renters.pdf" target="_blank">New evidence</a> from the Productivity Commission shows almost half of such “rent-burdened” private tenants are likely to remain stuck in this situation for at least half a decade.
Rental stress is where a low-income tenant faces housing costs that leave them without enough income for food, clothing and other essentials. The scale of the problem – <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1370.0%7E2010%7EChapter%7ERental%20stress%20(5.4.2.1)" target="_blank">commonly defined as when rent eats up more than 30% of income</a> – is usually presented as a “point in time” or snapshot statistic.
As the Productivity Commission report reveals, the snapshot number in this situation has increased from 48% of low-income renters in 1995 to 54% in 2018. That’s around 1.5 million people pushed into poverty by high housing costs.
For some, of course, this will be only a temporary problem. On this basis, it is sometimes argued that concerns over Australia’s high rate of rental stress are overstated.
However, the Productivity Commission report, <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">Vulnerable Private Renters: Evidence and Options</a>, highlights longitudinal survey evidence showing that a low-income tenant’s experience of rental stress is increasingly likely to be long-term – not a passing problem. As the commission notes: "[…] a growing number of households find themselves stuck in rental stress."
What is the evidence for this?
This conclusion stems from a comparison of two different tenant cohorts experiencing rental stress as revealed by survey data for 2001 and 2013. Less than a third (31%) of the 2001 cohort remained in stress five years later. But almost half (46%) of the 2013 cohort were.
<a href="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
While many people exit rental stress quickly, the proportion of private. low-income renters in long-term rental stress has increased significantly. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
So, it’s not just that more low-income earners are paying unaffordable rents at a particular point in time. This is increasingly a situation that affected private tenants cannot escape.
Beyond the obvious welfare impacts, <a href="https://cityfutures.be.unsw.edu.au/documents/515/Full_Report_Final_edited_logos.pdf" target="_blank">recent work</a> argues that excessive rent burdens may also damage human capital and, as a result, reduce economic productivity.
The commission’s findings seem to suggest the ongoing restructuring of Australia’s labour market and housing system is eroding socioeconomic and/or housing mobility. The report notes the significant fall in the numbers who manage to move from renting to owning – from 13.6% of renters in the period 2001-04 to 10.0% from 2013-16.
Perhaps slightly more surprising is the commission’s explanation for the rising rate of (point in time) rental stress for all low-income tenants. According to the report, this results not from increasing unaffordability for the private renter cohort specifically, but from the growing dominance of private rental housing as the tenure in which low-income households live.
<a href="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The number of private renters has grown as the proportions of owner occupiers and public housing tenants have fallen. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
This, of course, results from the post-1990s <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861" target="_blank">failure of Australian governments</a> to expand the supply of social housing to match population growth. By 2018, well over two-thirds (71%) of low-income tenants were <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">renting in the (relatively expensive) private market</a> – rather than from a (rent-limiting) social landlord. Back in 1996, barely half (52%) of them were renting privately.
What does this mean for policy?
The report presents some useful discussion of possible policy directions.
For example, while dismissing rent control as liable to advantage existing tenants at the expense of potential tenants, the report is implicitly critical of residential tenancy laws in most states and territories.
The report advances the broad case that <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825" target="_blank">tenancy law reforms</a>, “if well designed”, can enhance tenant welfare “without substantially increasing the cost of renting”. Longer notice periods are particularly favoured because these will “provid[e] vulnerable families more time to find new accommodation and prepare for the move”.
Slightly more controversially, the commission strongly hints at support for outlawing no grounds evictions. The landlord power to end a tenancy without any need to justify the move persists across most states and territories. Discussing this power the report states:
"It increases the bargaining power of landlords […] and decreases that of tenants. Landlords’ incentives to carry out obligations, such as repairs and maintenance, decrease when no grounds evictions are available, since this provides them with an avenue to terminate leases in the event of a dispute."
However, having highlighted a private rental affordability problem that is both growing in scale and becoming demonstrably more entrenched, the report is timid on solutions beyond modestly improving tenancy conditions.
It argues in general terms for an increase in <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance" target="_blank">Commonwealth Rent Assistance</a> but – beyond tentatively floating a 10% rise in maximum payments – advances no specific proposal.
Expanding the social housing stock as part of the broad-ranging housing strategy Australia badly needs is scorned as “an expensive option”. This is a reference to the narrowly scoped analysis in the commission’s <a href="https://www.pc.gov.au/inquiries/completed/human-services/reforms/report/human-services-reforms.pdf" target="_blank">2017 Human Services report</a>. It favoured market solutions to provide low-income housing – on efficiency grounds.
The “expensive option” assertion is out of line with the more broadly framed analysis of the Productivity Commission’s predecessor, the Industry Commission. The latter <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22publications/tabledpapers/HPP032016005137%22;src1=sm1" target="_blank">concluded</a>:
"Public housing and <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/what-is-head-leasing" target="_blank">headleasing</a> [when social housing providers sublease private rental properties] are assessed to be more cost-effective than cash payments and housing allowances."
While the Industry Commission report admittedly dates from 1993, the subsequent failure of overwhelmingly private provision for low-income renters surely presents compelling reasons to revisit the investment case for social housing.
Hal Pawson, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216" target="_blank">original article</a>.
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Growing numbers of renters are trapped for years in homes they can’t afford

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Yields throughout the Ballina Shire are generally expected to be lower than those in the less sought after areas of the Northern Rivers, according to the latest Herron Todd White (HTW) residential report. 
This can be attributed to higher median property prices.
The valuation firm took a look at the rental yields across the country to dissect where to find the best returns in residential markets. 
"This becomes more pronounced when you get into the more sought after areas of the Ballina Shire such as the coastal areas of Lennox Head and East Ballina and the desirable rural localities in the north of the Shire such as Newrybar, Knockrow and Tintenbar," the valuation firm said. 
"Whilst yields are low, rental demand remains strong.
"The addition of a detached studio or granny flat or dual occupancy style accommodation is becoming an increasingly desirable proposition within sought after areas of the Ballina Shire.
"This is perhaps most evident within the new Epiq estate at Lennox Head with a significant percentage of new builds having some form of dual occupancy style accommodation."
A basic one-to-two bedroom studio or granny flat detached from the main residence would be expected to achieve between $350 and $475 per week.
This is an attractive return compared to a basic three-bedroom residence in Lennox Head or East Ballina which is worth say between $700,000 and $750,000 and would only be expected to achieve between $500 and $600 per week rent, HTW said. 
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Granny flats becoming increasingly desirable Ballina investments: HTW residential 

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Construction is set to begin on the Western Sydney Metro, with seven station locations now confirmed.
The project will cut travel times between Parramatta and the Sydney CBD down to around 20 minutes when completed.
Premier Gladys Berejiklian said construction work will begin next year, commencing at the Bays Precinct.
She said, “we’ve successfully delivered the North West Metro Line early and $1 billion under budget, the next line from Chatswood to Sydnenham and Bankstown is on track to open in 2024, and now the next Metro project is underway.”
The locations of seven proposed Metro stations have been confirmed at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock and the Bays Precinct.
The NSW Government will also fast-track work to investigate the feasibility of building a Metro station in Pyrmont, while also assessing a potential station at Rydalmere. Further work is also underway to determine the location of the new Metro station in the Sydney CBD.
Minister for Transport Andrew Constance said “Western Sydney Metro will more than double the existing rail capacity between Greater Parramatta and the Sydney CBD and slash travel times between Parramatta and the Sydney CBD to around 20 minutes,” Mr Constance said.
The NSW Government has also announced that it is kicking off a global search for suppliers in what is expected to be the biggest tunnelling contract awarded in Australian history.
Suppliers wishing to vie for the tunnelling contract for Western Sydney Metro will be able to register their interest on the eTendering website.
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Construction to begin on Western Sydney Metro in 2020

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Stockland has announced that prices have stabilised across their portfolio with NSW showing early signs of increases and consistency seen across other aspects of the business.
In their latest quarterly report, the listed property developer said that sales were moderately above expectations in the quarter and appeared on track to deliver over 5,000 lot settlements in FY20, including around 500 townhouse.
Net reservations increased by 9.7% reflecting an improvement in both customer sentiment and housing market conditions.
This was seen across both their retirement village projects and other communities.
In the quarterly report Stockland said, "we expect FY21 revenue to benefit from market recovery and five new communities driving an increase in settlement volumes above the midpoint of our through the cycle range, together with potential price growth and cost savings."
Stockland found that the federal election was the turning point for property interest as seen below.
Click <a href="https://www.propertyobserver.com.au/images/2019/10/21/Stockland%20Enquiry.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/10/21/Stockland%20Enquiry.JPG" alt="">
On the commercial side, occupancy was maintained at 99.2% with 105,460 sqm leased insofar on a WALE of around 5.3 years.
Stockland made conditional agreements to purchase two logistics assets in Brisbane with end development value of approximately $140 million and consolidate a 71Ha landholding in Western Sydney with end development value of approximately $500 million.
They added that their $2.5 billion development pipeline has been progressing and developing new JV opportunities, including Melbourne Business Park and Western Sydney land.
In addition their acquisition of 50% interest of Piccadilly is to be fully funded through the disposal of 50% interest in 135 King Street/Glasshouse.
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Stockland reports stable residential sales with NSW showing positive signs

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Bylong Park, a proven brood mare farm located in the Upper Hunter Region of New South Wales, has hit the market.
The farm has produced the likes of Magic Millions winner Driefontein and Hong Kong Derby winner Mosheen.
Located in the heart of the breeding industry, the 135 ha property at <a href="https://www.realestate.com.au/property-livestock-nsw-denman-700051426" target="_blank">1949 Martindale Road, Denman</a> features well-presented improvements and horse facilitates. 
The improvements include 16 box Stable Barn, vet shed and 10 day yards, Ezywalker horse walker, round yard, all steel machinery and hay sheds.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/14/denman%202.jpg" alt="">
The owner's residence comprises three bedrooms, family/dining area, kitchen, front verandah and double garage. 
There is an older-style manager's and staff cottage including three bedrooms, sitting room, office and kitchen. 
The property has been subdivided into 16 larger paddocks.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/14/denman%203.jpg" alt="">
Bylong Park is located 15 minutes from Denman, 35 minutes from Coolmore and 3.5 hours from Sydney. 
David Nolan of Webster Nolan Real Estate Surry Hills and Peter Townsend of Landmark Townsend have the listing. 
The property has been scheduled for auction on October 29. 
 
 
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Bylong Park, Upper Hunter brood mare farm listed 

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Sydney’s price recovery has yet to reach all suburbs, according to realestate.com.au chief economist Nerida Conisbee.
“We are starting to see the ripple effect, but recoveries take time.”
Ms Consisbee said that the recovery was yet to show up in cheaper suburbs.
“Sydney premium is doing very well,” she said. “It’s mostly a premium market story.
“It’s not spreading to apartments,” she added. “If you go to Parramatta, just try to find an apartment that’s gone up (to boomtime prices).
“The recovery is under way but it takes time to flow through.”
It was mortgagees at Parramatta who sold sold Sydney’s cheapest weekend auction offering , when $470,000 was paid for a two-bedroom apartment.
The unit, that had 88sq m internal space plus a lock-up garage, sold to an investor.
“Six months ago there were hardly any investors in the market,” the apartment’s Laing &amp; Simmons selling agent Jas Singh said.
“The market was in the doldrums but lately investors have started to return therefore signs of improvement are becoming visible.”
There were 11 registered bidders for the 1980-built Parramatta apartment.
Mr Singh noted there had been $500,000 plus sales of similar apartments in the complex in the years prior to the downturn.
“Prices are beginning to come back, as I think six months ago it would have sold for $420,000,” he said.
In his SwitzerDaily commentary, John McGrath endorsed CoreLogic data that put Sydney middle market prices as being up 3.2 per cent and the lower market at 2.1 per cent in the September quarter.
“People are constantly asking me, ‘Where are we in the cycle?’,” he said.
“I can see why many people have been looking at the market a bit quizzically over the past few years.
“We’ve had five years of growth (25 per cent to 75 per cent), 18 months of correction (down 5 per cent to 20 per cent) and a small rebound to the positive.
“It’s not material yet in price but auction rates have shifted up after APRA finally loosened the strings and official interest rate cuts began having an impact.”
Mr McGrath added some “might have had a slightly different experience depending on the micro-market you live”.
There were 581 auctions across Sydney on Saturday, with 467 results captured and 395 sold.
Sydney returned a preliminary clearance rate of 84 per cent across similar volumes week-on-week.
Eleven of Sydney’s 15 sub-regions had a clearance rate of 80 per cent or higher, confirming an emerging market confidence across the city.
“It is the second week that Blacktown has returned a preliminary clearance over 90 per cent,” CoreLogic auction analyst Kevin Brogan noted.
North Sydney and Hornsby returned the next highest clearance at 88 per cent.
Brogan said there was only going to be a small rise next Saturday at 620 listings.
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Sydney’s price recovery has yet to reach all suburbs: REA's Nerida Conisbee

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

Joel Robinson

NAB funds $1 billion Surfers Paradise apartment development, Palmera

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

First look: Aqualand joins St Leonards apartment party

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

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

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

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

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

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