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>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

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Self-managed superannuation funds allocated almost twice as much of their assets to residential property in 2013 compared with the year before, a report into the funds has found.
The fourth annual Intimate with Self-Managed Superannuation report found that 9.9% of SMSF assets were held in residential property last year, up from 5.6% in 2012. The increase came as fund members reduced their cash allocations to 31% of total assets, down from 33.9% of assets held in cash in 2012.
The report, released at the SMSF Professionals’ Association of Australia (SPAA) conference in Brisbane recently, revealed that one third of SMSF trustees plan to consider investing in residential property through their super fund.
More than two thirds of SMSF trustees who invest in property are self-directed in their decision to do so, however many people do seek advice from financial planners or accountants, particularly regarding the loan structures that super funds can use to borrow for investing, known as limited recourse borrowing arrangements.
However the report, which was commissioned by fund manager Russell Investments and SPAA, and produced by research house CoreData, found that fewer financial advisers intend to offer assistance in on limited recourse borrowing arrangements in future.
While almost half of financial advisers surveyed had previously advised SMSF trustees on the rules on borrowing through SMSFs, only 7.7% planned to provide advice in that area in future. Almost 30% of advisers surveyed had never given advice on limited recourse borrowing arrangements.
The report’s findings on property investment were at odds with the latest Australian Taxation Office statistics, which showed that in September 2013, only $18.6 billion or 3.5% of the total $531.5 billion held in SMSF assets were held in residential property.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
           
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SMSF residential property allocation nearly doubles over 2013

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The asset allocation to residential property within SMSFs rose from 5.6% in 2012 to 9.9% last year, according to the annual survey by SMSF Professionals’ Association of Australia (SPAA) and Russell Investments.
It was the year that saw super fund members finally recover their GFC losses, with the median balanced super option return 16.3% for the year.
Interestingly almost three quarters (67.5%) of financial advisers reported that residential property investment decisions are being directed by clients.
Amid nascent concerns that SMSF advisers are unable to demonstrate high levels of overall advisory and management competence, the research shows that greatest demand for the establishment of new SMSFs was coming from people aged between 41 to 50. The next-greatest level of demand was among those aged between 31 to 40.
Another SMSF allocation trend was the average allocation to Australian equities fell from 37.1% in 2012 to 36.1% last year.
Cash and term deposit holdings fell from 33.9% of portfolios in 2012 to 31% last year.
About 28.6% of survey respondents said they held cash to reduce risk, while 42.9% said they continued to hold a high level of cash because they were waiting for a “better investment option”.
The report suggsts many advisers are unable to demonstrate high levels of competence and professionalism required to deliver a value-added service.
Even the writing of the do-it-yourself superannuation fund's trust deed can trip things up for trustees.
The deed that permits the fund to operate precisely governs what you can and cannot do in a DIY super fund.
Bryce Figot, a director of DBA Lawyers, recently noted in the Australian Financial Review that trustees need to be aware rules that allow a fund to engage in strategies like borrowing to invest must be specifically permitted by the trust deed.
Many trustees incorrectly assume that the Superannuation Industry Supervision (SIS) legislation automatically allows DIY funds to borrow to invest. 
Banks have rejected applications for loans to buy property because they aren't happy with the wording of the trust deed.
Banks have even been known to ask for specific wording that states a fund can operate a bank account as distinct from wording that incorporates a bank account in a general way.
Perhaps this complex requisite mastery is why the Russell report found the proportion of superannuants looking to establish an SMSF in the next five years has dropped to 12.3% from 17.3%.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
 
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jchancellor-FAypfDUnLy

Shift by SMSFs to property hastens, along with advisory competence concerns

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The Australian Security and Investments Commission’s goal to improve the standard of advice being given to prospective self-managed super fund trustees, has been welcomed by the SMSF Professionals’ Association of Australia (SPAA).
This includes ensuring SMSF advisers have competencies and skills to better inform potential trustees about the suitability of SMSFs to their circumstances, said CEO Andrea Slattery, while outlining her stance on advisor training and education in SPAA’s submission to ASIC.
The SPAA represents professionals providing a range of services in the SMSF field. It is an advocate for the highest professional standards and competence to ensure SMSF trustees receive the best possible advice.
“In line with this, SPAA has consistently argued that the proposed updated training of advisors should include a specialist SMSF topic if advisers wish to provide advice on SMSFs. This is the reason SPAA has built an SMSF profession,’’ Slattery said.
“We are surprised that ASIC had not suggested an additional, specific topic, in light of recent statements and research by them showing concern for advice practices.
“Similarly, it is surprising ASIC has not sought specific SMSF competencies in the updated RG 146 (regulations) when it has concerns regarding the quality of disclosures made to potential SMSF trustees about the risks of being a trustee.
“We believe that including an SMSF topic in RG 146, and recognising it as a specialist area of superannuation advice, will increase professionalism and understanding among financial advisers who advise on establishing and operating SMSFs leading to increased consumer protection.”
Slattery says that improving SMSF competencies towards potential SMSF trustees would be a significant factor in improving SMSF disclosures. “In particular, SPAA’s SMSF professional accreditation program allows consumers to seek specialist SMSF advice to meet their needs,” she said.
<a target="_parent" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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staylor-63KgDrKwoY

SPAA backs ASIC plan to strengthen advice standards

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Mortgage insurance company Genworth has made loan approvals for self-managed superannuation funds harder to obtain.
Highlighting a reduced risk appetite, the loan policy change is the first sign of the industry's response towards headlines that suggested there has been a rush of SMSFs borrowing to buy residential investment property.
The latest data out today from Australian Prudential Regulation Authority shows there are now 516,000 SMSFs across Australia holding $531 billion in assets, up from 485,000 the same time last year holding $439 billion in assets.
Figures from the Australian Tax Office have shown that the amount of residential property held by SMSFs has jumped from $13 billion to $17.5 billion over the past three years, but the level of gearing has been low.
According to the ATO, self-managed super schemes had $2.4 billion of outstanding loans against property and shares as of June 30, representing less than 0.5% of assets in the do-it-yourself sector. None the less, Bridget Sakr, Genworth's chief commercial officer, recently advised lenders that from December any SMSF must hold minimum net tangible assets of $150,000 or more prior to entering a loan. There was no prior policy on minimum assets. The fund must also have a minimum liquid asset balance of 10% of the total debts of the SMSF (including the loan amount) after the loan transaction is complete.
Genworth defined minimum liquid asset as interest divided by dividend earning assets. Furthermore the insurer said that off-the-plan purchases and new properties that have been completed for less than 12 months were no longer acceptable as security.
The official Genworth notification, published yesterday by <a target="_blank" href="https://www.bankingday.com/">Banking Day</a>, noted "being a prudent Lenders Mortgage Insurance provider, we are always assessing the market and emerging trends to ensure our policy is aligned to market conditions. As a result we have made the following changes to our underwriting policy in relation to Lenders Mortgage Insurance for self-managed super funds."
It comes against the backdrop of the Reserve Bank of Australia's September observation that "a range of banks have been growing their residential property lending to self-managed superannuation funds rather strongly. "
The RBA went onto suggest "these sorts of expansions into less familiar markets or products require sufficient due diligence before they are undertaken."
<div>
Just a hint from the Australian macro-prudential regulators that they wanted a cooling in lending enthusiasm, unlike the blunt curbs introduced recently by the Reserve Bank of New Zealand for its higher risk borrowers.
SMSFs have been able to borrow to invest in property since 2007.
The APRA September 2013 Quarterly Superannuation Performance publication showed the total estimated assets, which include the assets of self-managed superannuation funds and the balance of life office statutory funds, rose to $1.75 trillion at 30 September 2013. SMSFs make up $531 billion. 
 
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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SMSF lender insurance risk appetite wanes with tightened industry imposed credit curbs

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Getting a diversified mix of liquid assets beyond shares into one's self-managed super funds seems wise. And rather than the traditional apartment or cottage, over the weekend dozens of SMSF trustees grabbed the opportunity to add a small 12.5 square metre, low-maintenance property with long term tenant in their portfolio.
There were 602 spaces available at the Park &amp; Fly car park close to the airport at Mascot. More than 2000 expressions of interest had been received in the lead up to the weekend's exchanges.
All 154 freehold strata car spaces listed at $57,500 each, on a yield of 6.5% were exchanged, with 75 pocketed straight into SMSFs.
Another 147 of the 450 double tandem spaces of 24.5 square metres, priced at $104,500, were also sold over the weekend, of which 79 were for smsfs.
According to Erle Cramer of Cramer Property one investor from Sydney bought six for various family members. Purchasers came from as far afield as Hong Kong and London.
"Investors have realised that this investment opportunity represents an excellent chance to diversify investment portfolios, whether for self-managed super funds (SMSF) or cash that is currently sitting in the bank looking for a better return," Erle Cramer suggested. 
Type of car space: Single
Number of single car space lots: 154
Unit Entitlement: 10
Income $
Gross annual rent $4,596
Less:
Annual outgoings
Coucil rates $480
Strata levy $378
Water rates $0
Total annual outgoings $858
Net annual rent $3,738
Sales price $57,500
Net yield 6.5%
Each week over 2,000 vehicles are parked at 1008 Botany Road Mascot where P &amp; F shuttles drop off and collect between 900 and 1,100 people each day with an estimated 600 customer vehicle movements daily. 
The nine level property with frontage to Baxter Road, General Holmes Drive and Botany Road operates from 5 am until 11 pm, 365 days a year. 
The sales prospective said the business had improved occupancy with 2014 financial year occupancy projected at 92% for the 1,060 multi-deck car park. 
<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/stories/2013/11/25/Erle_Cramer_7.jpg" alt="Erle_Cramer_7" width="470" height="328">
Each car space has its own separate commercial lease for an initial term of five years, with consecutive 3 x 5 year option periods totalling 20 years. An initial 6.5% per annum net return is offered in addition to 3% rent increases each year, except on the exercise of the option, when the increase will be 4%.
Cramer Property is marketing the project in conjunction with Hayson Sales for the vendor syndicate that included Sydney entrepreneurs John Singleton, Mark Carnegie and Robert Whyte.
Type of car space: Double tandem
Number of double tandem car space lots: 450
Unit entitlement: 20
Income $
Gross annual rent $8,029
Less:
Annual outgoings
Coucil rates $480
Strata levy $756
Water rates $0
Total annual outgoings $1,236
Net annual rent $6,793
Sales price $104,500
Net yield 6.5%
<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/stories/2013/11/25/car-parks-nov-25-one.jpg" alt="car-parks-nov-25-one" width="470" height="313">
The 6.5% net yield appealed to investors prepared to accept prescribed rent rises.
Whilst not attracting the NSW state government's metropolitian annual parking space levy, currently $2,210 for spaces in the Sydney CBD after their doubling in 2009, the possibility of the levy which is also applicable at $780 a year at North Sydney, Parramatta, St Leonards, Chatswood and Bondi Junction, would have been in the minds of some investors despite not being applicable within Botany Council.
The issue of cap park competition affecting possible price growth was raised in the sales material which noted it was potentially affected by Sydney Airport’s slated reorganisation which could lead to the opening of more car parking spaces with additional capacity around 2018.
There are just the two companies currently providing long term multi-deck secure parking for travellers within the airport precinct, Sydney Airport Corporation Limited (on leasehold land) and P&amp;F. SACL offers parking at the domestic and international terminals and also an on tarmac, Blue Emu service.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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SMSFs park Mascot airport car spaces into funds as diversified nest egg option

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The Australian Securities and Investment Commission says some real estate agents are offering kickbacks to financial advisers to advise investors to use an SMSF to purchase the real estate agents' properties.
It says financial advisers may be banned from receiving them under the Future of Financial Advice reforms.
“This is because the commissions or benefits could reasonably be expected to influence the financial product advice given to retail clients,” the agency says.
Meanwhile it has warned real estate agents off advising their clients to invest in property using a self-managed super fund.
“ASIC is concerned that with the increased popularity of SMSFs and property investment, real estate agents may not realise they are providing financial product advice and need an Australian financial services licence when making recommendations or statements of opinion to a person to use an SMSF to invest in property,” it says.
Individuals caught face fines of up to $34,000 or two years imprisonment while companies face fines of up to $170,000.
‘We want to ensure the SMSF sector remains healthy and vibrant so investors can be confident that, if they are receiving advice about investing through an SMSF, their adviser holds an Australian financial services licence and is aware of its obligations’, ASIC Commissioner  Greg Tanzer says.
It wrote to the Real Estate Institute of Australia to clarify regulations with agents.
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ASIC warns real estate agents: stop spruiking SMSFs

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There has been widespread publicity recently about Australians investing their super in geared residential property. Much of this publicity has centred on schemes being promoted involving self managed superannuation funds (SMSFs) and has attracted comment by ASIC and more recently the Reserve Bank.  
When using  an SMSF to invest in property the common mistakes being made are:  
<ul>
<li>
Not having enough super to start with and then having to excessively gear the property;  
</li>
<li>
Creating a super fund which just has a single asset;  
</li>
<li>
Buying the property before the structure is organised;  
</li>
<li>
Not having a plan about how the debt will be repaid;  
</li>
<li>
Investing in off the plan residential developments which generally increase the risk factor;  
</li>
<li>
Not thinking about the wide range of property options there are.  
</li>
</ul>
When properly researched and properly structured an SMSF investment in direct property (including gearing) can work very effectively. But most SMSF trustees generally focus on residential property and not other forms of property. Why not office, retail or industrial?  
An SMSF could directly acquire for example a small factory, a shop or an office. There are also other alternatives such as property syndicates and single property trusts which tend to focus on office buildings.  
A residential property investment may deliver around 5% rental income and usually this reduces to 4% or lower after expenses including property management costs. To make the gearing work you need to have an expectation of sound capital growth on top of this but this has been quite low over recent years.
With offices, factories and retail you would normally expect the income return to be significantly higher than residential property and this generally comes at the expense of a lower capital growth expectations. Income yields would normally be in the 7% to 9% range depending on the type and location of property.  
In times of low interest rates, cash rates at 2.5% and the prospect of medium term low rates, getting an income return of around 7% plus from shops, offices etc starts to look quite attractive particularly if you can minimise the risks with the investment. As with residential property a good tenant is highly important and the key with commercial property is to have a plan to be able to tweak the property to generate higher rental yields.  
One of the benefits of using non-residential property in an SMSF is that you can use your business entity to become the tenant - something you can’t do with residential.  
SMSF trustees should therefore think outside the box in these times of low growth, low inflation and low rates and higher yielding property is one of those key considerations. But do your research and importantly have a plan of how any debt will be repaid.
 
<hr>
 John McIlroy is executive director of <a target="_blank" href="https://www.crystalwealth.com.au/">Crystal Wealth Partners Ltd</a>
 
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SMSFs should consider commercial property investments: John McIlroy

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Loans.com.au is now offering loans for self-managed super funds in a bid to capture part of the growing market.
Its SMSF loans offers an interest rate of 4.99% (5.04% comparison rate) – 1% cheaper than the equivalent offered by Westpac.
Upfront fees on properties of less than $1 million include a $600 legal bill, a $150 settlement and a $220 valuation.
The loan is available for residential investment property refinances and purchases up to 80% LVR.
Loans.com.au managing director Marie Mortimer says the SMSF they treat SMSF loans the same as normal residential property loans, with lenders’ mortgage insurance paid by the lender.
“Banks give SMSF loans a different capital weighting because they consider them to be commercial loans,” Mortimer says.
“We don't have a capital weighting on SMSF loans so it’s a normal mortgage deal with the risk spread across our mortgage portfolio rather than a riskier commercial portfolio.''
Government bodies have recently being sounding warnings about growing debt in the SMSF sector.
Both the Reserve Bank and the government have hinted at a <a href="/news">crackdown on the self-managed superannuation sector</a>, with both entities saying they are concerned about the number of property investments being made in the industry.
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Loans.com.au offers first SMSF loan

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Leading figures in the retirement property industry say there needs to be more transparency in the sector to attract institutional investment now and in the long term.
Tim Russell, managing director of Retire Australia, said the sector was a poor performer that was being held back by not having a large, publicly listed, sector-specific company in which to invest.
“Some of the institutional capital that has been attracted to the sector has been let down by poor performance,” Russell told UK Property Week in a recent issue.
“Capital is still attracted [to the sector] but there are issues around pricing and transparency.”
According to Russell, the biggest opportunities will come when one of the larger operators lists.
“I hope we will have a large, listed, sector-specific operator in the next few years, as that will increase transparency for investors,” he said.
Russell compares the Australian retirement landscape with that of New Zealand, where he says several large sector-specific operators are on the public market — and all of which, he says, trade at a premium to their asset values.
However, Russell is hopeful that a large retirement operator will list in the next few years, noting that FKP Property Group is considering spinning off and listing its retirement arm and that the interest shown in the small-cap Ingenia shows the appetite is there.
A big challenge for the operators in the sector is moving from providing accommodation and maintenance to also providing care packages.
Derek McMillan, chief executive officer of Australian Unity’s retirement living, said there was great opportunity economically for retirement villages to provide care packages because of the concentration of numbers at each village.
He added that this would give operators another source of income and smooth out bumpy cash flows as a result of having a model that only really made money when units were resold.
He hopes the new federal government will ‘’cut some of the red tape’’ that prevents retirement village operators from providing care.
“It was very frustrating with the last government,” McMillan said. “While they had a philosophical approach towards improving access to care … they made a lot of noise but there was no real movement.”
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Greater transparency in retirement property industry required to attract institutional investment: Retire Australia

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It's a tricky process to navigate, and a number of questions are thrown up when you decide to refinance. How do you know when you need to refinance? What's the first step? What should you expect? What sort of fees are involved?
This free Property Observer eBook will help you take the first step to refinance and answer these questions for you.
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