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.

Joel Robinson

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>

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.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Roberts Co has entered a new phase of growth following its acquisition by Arada, one of the world’s fastest-growing property developers in Australia.

The acquisition is supported by a $50 million capital injection into Roberts Co’s Australian balance sheet, consisting of the previously announced $25 million recapitalisation and an additional $25 million in new funding from Arada.

This investment strengthens Roberts Co’s financial position, stabilises operations, and provides the foundation for strategic expansion beyond its New South Wales base, with a focus on new opportunities in Queensland, including the Brisbane and Gold Coast regions.

With Arada’s international resources and financial backing, Roberts Co will broaden its portfolio across residential, commercial, and infrastructure sectors, reinforcing its strong market position in New South Wales and setting itself to capture growth in one of Australia’s most dynamic construction markets.

Ahmed Alkhoshaibi, Group CEO of Arada, said Roberts Co has a proud Australian heritage, an outstanding delivery record, and a strong reputation for collaboration with clients and partners.

"By combining this expertise with Arada’s global scale and financial capacity, we are creating a platform for sustained growth in the Australian market,"&nbsp;Alkhoshaibi said.

“Our $50 million capital injection, including new funds from Arada, underlines our commitment to both stabilise and expand Roberts Co’s operations, particularly into the fast-growing Queensland market. We see significant potential in South-East Queensland’s pipeline and are confident Roberts Co is well placed to deliver lasting value for clients and communities.”

George Kostas, CEO of Roberts Co, said Queensland, and particularly South-East Queensland, is one of the most active and opportunity-rich regions in Australia right now.

"The lead-up to the Brisbane 2032 Olympic Games will bring unprecedented investment across housing, transport, and infrastructure. Roberts Co is eager to play a major role in that transformation and secure a meaningful share of this fast-growing market.”

Arada pours more funds into Roberts Co, flags expansion into South East Queensland construction market

Wattblock, a group of independent strata sustainability specialists that partner with eight local councils on sustainability programmes, has released a list of the top 40 eco apartment buildings in Sydney.

The list, which features properties from Edmondson Park to Little Bay, highlight the apartments that are committed to sustainability and renewable energy.

Wattblock&nbsp;chief executive Brent Clark begun the list in response to a growing interest in sustainability from players in the property industry.

&ldquo;In the last couple of years, we have been contacted by individuals looking to buy apartments in green buildings in Sydney [and] developers who want to create differentiation for their new apartment block when selling green developments off the plan,&rdquo; he said.

This year, an apartment building had to possess at least a 16kW solar PV system to make the cut.

[smartcode_project:default project_id=5995 project_image_fid=78735]

Frasers Property&rsquo;s Ed.Square in Edmondson Park topped the list, thanks to its 2.5MW solar system, embedded network and geothermal air-conditioning, amongst other great features.

The new net-zero energy demand development is set to produce more energy than it consumes, with entry prices for the development as low as $490,000.

According to Clark, the choice to create an eco-apartment block is now often the most cost-effective, in addition to its carbon footprint reducing benefits.

&ldquo;The reduction in the cost of environmental technology, things like solar panels, heat pumps, EV charge points has made these technologies economically viable&rdquo;, he said.

[smartcode_project:default project_id=6219 project_image_fid=24577]

Also featured high up in the list was Meadowbank&rsquo;s Genesis project, by Sasco Developments.

The 58-residence apartment features 30kW solar, an embedded network, a UV warm water system, a green roof and solar-powered EV charging.

Clark commented on the importance of solar panels, and EV carshare for the exclusive use of apartment dwellers.

[smartcode_project:default project_id=4124 project_image_fid=90886]

Cedar Woods&rsquo; Melbourne project,&nbsp;Aster apartments at the Jackson Green masterplan, recently&nbsp;announced their <a href="/news/vic/tesla-carshare-coming-to-residents-at-clayton-south-s-aster-apartments">collaboration with Ohmie Go to bring a Tesla Model 3 to its Clayton South project</a>.

Although this is unsurprising as Melbourne has always been&nbsp;the first to make the shift towards more eco-conscious home buying, Wattblock said. Developments like Nightingale set the&nbsp;new benchmark for all of Australia.

&ldquo;Sydney is now playing catchup&rdquo;, Clarke added. &ldquo;There is a niche for those who will take the eco-credentials of an apartment building into consideration, particularly for the early adopters of electric vehicles.&rdquo;

[smartcode_project:default project_id=6798 project_image_fid=140946]

Another feature that homebuyers should look out for when seeking an eco apartment is the green roof and barbeque area.

&ldquo;[This] is a great addition to the community, particularly if it uses wi-fi connected smart irrigation and dynamically adjusts the watering schedule based upon local weather station data.

&ldquo;We are also starting to see things like smart monitoring touchscreens being installed into each apartment&rdquo;, said Clark.

<blockquote>
&ldquo;We have had a decade of education about sustainability now, so now is the time for action.&rdquo;
</blockquote>

Wattblock has been providing advice to over 1,000 strata apartment buildings on the eastern seaboard over the past seven years on how to retrofit their buildings.

[smartcode_project:default project_id=30049 project_image_fid=162884]

You can <a href="https://www.wattblock.com/buying-an-eco-apartment-in-sydney?utm_source=urban">read the full list of 40 apartments with each residences&rsquo; eco-friendly features on Wattblock</a> or scroll below for the top 20, as determined by Wattblock CEO Brent Clark.

1. Ed.Square, Edmondson Park 
2. Central Park, Chippendale 
3. Genesis, Meadowbank 
4. Generation W, Neutral Bay 
5. Goldsbrough Apartments, Ultimo

6. Quay Grand, Sydney 
7. The Orchards Norwest, Kellyville 
8. Fleetview Apartments, Pyrmont 
9. Revolution Apartments, Marrickville 
10. Rina Apartments, Mascot

11. Zinc, Alexandria 
12. Mindarie St Units, Lane Cove 
13. The Burcham, Rosebery 
14. Avanti Apartments, Hornsby 
15. Aria Apartments, Waterloo

16. Regency, Chatswood 
17. 8 John Tipping Grove, Penrith 
18. 20 Newtown St, Alexandria 
19. The Regency, Epping 
20. Bay Gardens, Maroubra

Wattblock CEO Brent Clark reveals a list of the top 40 eco apartment buildings in Sydney and discusses sustainability

max.kwok_55688

Sustainable architecture shaking up the Sydney property market: Wattblock’s top 40 eco apartments

Australia needs to &lsquo;urbanise the &rsquo;burbs&rsquo; as the recent property boom and skyrocketing house prices drives more residents to the outer suburbs of our cities, says Hatch RobertsDay partner, Mike Day.

The leading urban planner says these new residents seek out the ingredients that make our inner cities so attractive.

&ldquo;Many want the urban experience and lifestyle: from the inner-city layout of small parks, mini main streets, and public transport at their doorstep to the bustling cafe and restaurant culture and an integrated community feel&rdquo;, he said.

[smartcode_project:default project_id=6284 project_image_fid=77232]

According to the urban planning consultancy, the last 30 years saw planners follow the conventional suburban model of separating land uses &ndash; houses in one area and shopping centres and business hubs in another, which are only accessible by car.

&ldquo;With hundreds of thousands of new dwellings set to be developed in the outer city fringes, urban planners, developers and councils need to ensure we get this urban mix right&rdquo;, Day said.

<blockquote>
&ldquo;We need to foster a diverse range of housing with more compact and attainable homes centred around mixed-use community hubs.&rdquo;
</blockquote>

This is especially true for Australians who are now finding that the community they buy into is just as critical as choosing the home they live in.

Leading property investment expert Michael Yardney has long sustained that up to 80 per cent of the capital growth in the value of a home or investment property will be due to its location.

As a result, new housing estates must co-exist with other land uses and return to old-fashion community life: connected footpaths to community hubs, and schools, shops, restaurants, and facilities within walking distance.

[smartcode_project:default project_id=5995 project_image_fid=78732]

Day offered the example of the new mixed-use project Ed.Square in south-west Sydney&rsquo;s Edmondson Park as an ideal community.

&ldquo;One of the first planned neighbourhoods under the South West growth area, Frasers Property Group has successfully created an urban community and neighbourhood feel in Sydney&rsquo;s outer suburbs.&rdquo;

With apartments and townhouses within walking distance and minutes from trains and buses, the development encourages residents to rely less on cars &ndash; giving the community a sense of identity and soul.

<h2>What needs to change?</h2>

[smartcode_project:default project_id=27139 project_image_fid=77337]

Mike Day shared five key factors of inner-city neighbourhoods that developers could apply to our outer suburbs:

1. Diversity in housing types

[smartcode_project:default project_id=7633 project_image_fid=32168]

Communities that contain a mix of apartments, townhouses and single-dwelling homes attract residents across all ages and incomes &ndash; a solution to Australia&rsquo;s lack of housing affordability.

According to Day, developers and urban planners need to step away from suburban resident-only enclaves and large homes on large blocks that segregate people from others and their local community hubs.

Instead, he encourages a shift towards modest, compact homes to create strong local connected communities.

2. Integrated communities with centralised amenities

Mixed-use developments blend residential with commercial, cultural, and entertainment uses.

Having local community facilities in a central hub enable residents to walk and cycle to their daily needs &ndash; reducing the reliance on cars. It also promotes healthier lifestyles.

Day said new urban neighbourhoods require mini main streets that safely and easily connect shops, parks, schools, and community centres to homes. In doing so, residents can also minimise the cost of owning and servicing a vehicle &ndash; which could save them thousands each year.

3. Open green space and &lsquo;destination parks&rsquo;

[smartcode_project:default project_id=22700 project_image_fid=48701]

According to the Housing Industry Association, backyards shrinking and the&nbsp;average lot size 16 per cent smaller than in 2009. Thus,&nbsp;there is a further need for neighbourhood parks, signature streets, and green spaces for the community to enjoy.

Tree-lined streets and small green &lsquo;destination&rsquo; spaces with playgrounds and outdoor equipment are essential. This can reduce the creation of empty &lsquo;cookie cutter&rsquo; parks with little purpose.

4. Driveways and garages positioned on small streets at the rear of the home

Townhouses in our cherished inner-city neighbourhoods were designed with small streets behind the home that provided access to driveways and garages.

According to Day, suburban streets should return to this timeless layout to provide more greener, tree-lined streets. It also removes driveways at the front of homes &ndash; enabling more pedestrian- and cycle-friendly paths.

5. Separate and wider walking and cycling pathways

[smartcode_project:default project_id=22699 project_image_fid=70088]

Walkable neighbourhoods require wider and separate pathways for pedestrians and cyclists, which increases safety for residents.

It can also motivate more people to reduce car usage &ndash; in turn, reducing road congestion and air pollution &ndash; and create a sense of community.

The leading urban planner says new residents who have been pushed to the outer suburbs seek the ingredients that make inner cities so attractive

Australia needs to ‘urbanise the ’burbs’, says Mike Day

With national news evoking fresh concerns about climate change, Melbourne-based developer Neometro have shared the benefits of investing in sustainable projects.

While Savills has earmarked the <a href="/expert-insights/investing/importance-of-environmental-credentials-grows-for-property-investors-savills" target="_blank">growing importance of environmental credentials in real estate</a> to attract investors, the benefits of developing sustainable projects are proving to be far more all-encompassing.

According to Neometro director James Tutton, sustainable development can set a project up for success from the get-go.

From reducing risk at both the planning and settlement stages, to meeting consumer demands, Neometro has distilled these benefits across three areas. 
&nbsp;

1. Planning risk

What was once somewhat limited to anecdotal discussions with Council planning officers, the concept of rewarding projects with high ESG aspirations is translating into real policy, and it&rsquo;s something several municipalities have taken on board.

Some councils, such as City of Moreland, have designed excellence scorecards to reward project applications which seek to achieve a high sustainability score.

Considering this upfront allows for better planning and better certainty, Tutton argues.

&ldquo;It&rsquo;s reassuring being able to approach a project with certainty, knowing VCAT isn&rsquo;t going to pull the rug out from under you,&rdquo; he said. 
&nbsp;

2. Settlement risk

Purchaser mortgage choices have opened up for projects which achieve pre-established sustainability criteria.

&ldquo;Traditionally, investment decisions scrutinise financial data alone, and now we&rsquo;ve seen a shift towards investors and buyers demanding we look at the bigger picture,&rdquo; Tutton said.

Neometro noticed many purchasers going with non-major banks that reduced interest rates the better a building performed when selling its Jewell Station apartments in Brunswick.

&ldquo;Giving purchasers more mortgage options with competitive pricing increases the likelihood of them being approved for purchase, and therefore diminishes settlement risk and the nervousness that often comes with this time&rdquo;, he told Urban. 
&nbsp;

3. Consumer demand

&ldquo;There&rsquo;s no denying sustainability is a strong selling tool, the demand is out there&rdquo;, Tutton said.

Consumers are making socially and environmentally conscious decisions when it comes to everyday purchases, and the developer claims that property is no different.

Across every industry, organisations are stepping up to meet the demands of increasingly informed and savvy consumers.

&ldquo;As developers, we have a real opportunity to meet that demand while simultaneously supporting the need for greater sustainability within our community and being profitable,&rdquo; Tutton said.

In every marketing campaign across its stable of projects, Neometro noted that messaging with a focus on sustainability performed the strongest. 
&nbsp;

<h2>Sustainable projects on Apartments.com.au</h2>

Coming off the recent success at its South Crescent development, which sold in less than a week, Neometro have exemplified the desirability of sustainability-driven projects.

The group become Australia&rsquo;s first property developer to achieve B Corporation certification in 2013, making them one of the nation&rsquo;s leaders in delivering sustainable buildings.

Urban takes a look at three sustainable projects that owner-occupiers and investors should keep an eye on. 
&nbsp;

1. One Wilson Avenue, Brunswick 
Address: 1 Wilson Avenue, Brunswick VIC 3055 
One-bedroom apartments from $515,000

[smartcode_project:default project_id=5121]

Future-focused and carefully crafted, this Brunswick development is delivered in collaboration between Neometro and Milieu.

The project integrates renewable energy and has received a 7.5-star NatHERS rating.

Designed by Fieldwork, the project references the brutalist post-war buildings of the Brunswick area, and connected to a wide range of amenities and sprawling parklands. 
&nbsp;

2. Omnia, Moorabbin 
Address: 4-6 Horscroft Place, Moorabbin VIC 3189 
One-bedroom apartments from $465,000

[smartcode_project:default project_id=29048]

As part of the developer&rsquo;s commitment to environmental sustainability, Omnia uses the best materials and technologies in environmental and sustainable building methods.

Delivered by Shenfield Property, the 40-apartment development&rsquo;s park frontage adds to the growing number of green spaces in the area.

Featuring energy-efficient design, together with appealing gardens created by Wallbrink Landscape Architecture, Omnia delivers exciting new residences with comfort and style. 
&nbsp;

3. The Fabric, Altona North 
Address: 188-198 Blackshaws Road, Altona North VIC 3025 
Two-bedroom townhomes from $695,000

[smartcode_project:default project_id=22699]

The Fabric, designed for liveability and increased comfort year-round, boasts a seven-star NatHERS energy rating.

Delivered by Mirvac, the Altona North development commits to contributing to a more sustainable future.

Leafy green tree-lined streets, contemporary architecture and private front gardens form the walkable master-planned community.

Renowned landscaping architects, Eckersley Garden Architecture, have designed courtyards with edible planter beds and a custom-designed Patchwork Park.

Neometro shines a light on the benefits of investing in sustainable projects. What it means for banks, developers, buyers and the environment combined

Benefits for banks, buyers and the environment: Neometro shares its sustainability insights

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Record low interest rates and rising house prices are sustaining the new home construction market confidence into 2021, according to the HIA’s economist, Angela Lillicrap. 
  
The latest HIA New Home Sales report shows sales in the three months to February 2021 were up 60 per cent on the same three months in the previous year. 

"This strong result reflects the significant impact of HomeBuilder on demand for detached housing,” said Ms Lillicrap. 
  
“HomeBuilder was the catalyst for improving consumer confidence in the housing market." 
  
She noted the December 2020 surge of new home sales as households rushed to finalise contracts to build a new home before the end of the $25,000 grant. 
  
The HomeBuilder grant is now at $15,000 until March 30.

“We expect a surge in sales in March but due to the lower grant offering, this surge will not be as large as the December 2020 surge." 
  
“To receive the HomeBuilder grant, construction is required to commence within six months of signing a contract to build. As a consequence, it is possible that builders will delay the signing of some contracts to allow for greater flexibility and more detailed planning of projects."

<img alt="" height="1264" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/hia_2021_graph.jpg" width="2068">

Sales in the three months February 2021 increased across Australia compared to the same time the previous year. 

South Australia is up by 149 per cent, followed by Victoria (+69 per cent) and Queensland (+60 per cent). New South Wales increased by 46 per cent and Western Australia is up by 25 per cent over the same period.

<h2>Recently listed properties:</h2>

[smartcode_project:default project_id=27575]

[smartcode_project:default project_id=2929]

[smartcode_project:default project_id=29048]
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Sales in the three months February 2021 increased across Australia compared to the same time the previous year. 

jchancellor

March to see mini HomeBuilder surge in new home sales: HIA

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EXPERT INSIGHT

Australia’s emerging build-to-rent sector is growing — “<a href="https://theurbandeveloper.com/articles/build-to-rent-boom">booming</a>” by some accounts with a <a href="https://www.cbre.com.au/about/media-center/australian-btr-pipeline-grows-by-70-in-one-year">70% jump in value in the past year</a>. Under this model, institutional investors develop purpose-built rental apartments to retain and operate under single ownership. In Australia, it will change how apartments are designed and developed, how we are housed and how our tenancies are managed.

With 40 projects under way, an <a href="https://www.cbre.com.au/about/media-center/australian-btr-pipeline-grows-by-70-in-one-year">estimated</a> 15,000 units worth more than A$10 billion are in the pipeline. Site availability has made Melbourne popular, with over 50% of the national market. Investors are active in Sydney, Perth and Queensland too.

Sought-after neighbourhoods are earmarked for large developments. Many have 300 or more units, most at market-rate rents.

Build-to-rent is new to our shores, but hardly uncharted territory abroad. In the UK, the sector expanded exponentially from 2013 with government support. It now accounts for <a href="https://assets.publishing.service.gov.uk/government/uploads/system/%20uploads/attachment_data/file/817037/FT1101_Trends_in_tenure.xlsx">one in five new homes built in England</a> and <a href="https://data.london.gov.uk/dataset/housing-london">one in four in London</a>.

In the US, the built-to-rent sector is relatively mature. It makes up almost two-thirds of the rental stock in many of the largest cities. Heavyweight corporate landlords operate <a href="https://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2020-top-managers-list/">as many as 400,000 units each</a>.

In Australia, we need more data and more informed public debate to guide tax, design, planning and tenancy reforms to secure the best possible urban and social outcomes from the build-to-rent expansion.

The build-to-rent promise

Build-to-rent presents an enticing vision. For households, it promises several things:

<ul>
<li>
	flexible long-term tenancies
	</li>
	<li>
	client-centric onsite management
	</li>
	<li>
	hotel-style amenities and services
	</li>
	<li>
	allowances for <a href="https://theconversation.com/can-i-have-a-pet-and-be-housed-too-it-all-depends-155202">pets</a> and personalisation, such as painting and decorating.
	</li>
</ul>
<figure class="align-center "> </figure>For cities, the model promises high-amenity, well-located, purpose-built rental apartments that cater to diverse and changing housing needs.

Proponents hail build-to-rent as a win-win. It’s seen as a salve for various housing woes, including concerns about housing <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0012/13242/AHURI-Final-Report-281-Housing-supply-responsiveness-in-Australia-distribution-drivers-and-institutional-settings.pdf">supply</a>, <a href="https://www.domain.com.au/news/housing-affordability-already-declining-across-the-nation-on-the-cusp-of-being-obliterated-1031061/">affordability</a>, the <a href="https://www.rentingcommissioner.vic.gov.au/the-rental-sector/key-issues">private rental sector</a> (including insecure tenancies and inexpert property and tenancy management) and <a href="https://theconversation.com/dealing-with-apartment-defects-a-how-to-guide-for-strata-owners-and-buyers-150292;%20https://theconversation.com/life-in-a-windowless-box-the-vertical-slums-of-melbourne-41181">apartment quality</a>.

Since the COVID-19 downturn, the model has been <a href="https://www.budget.vic.gov.au/place-call-home-victorias-big-housing-build">hailed</a> as an economic lifeline too: good for the construction sector, good for jobs.

Rise of a new asset class

For build-to-rent investors, the rental revenue returns appear relatively modest. Under current market conditions, however, secure margins and “lower (but) for longer” investment prospects appeal.

Advocates continue to push for <a href="https://urbis.com.au/insights-news/build-to-rent-stimulating-recovery-ensuring-resilience/;%20https://www.allens.com.au/globalassets/pdfs/campaigns/accelerating-build-to-rent-march19.pdf">tax reforms</a>. They point to a growing “<a href="https://info.propertycouncil.com.au/property-australia-blog/build-to-rent-growth-spurt-ahead">weight of capital</a>” awaiting more enticing returns. But many international <a href="https://theurbandeveloper.com/articles/oxford-gurner-move-on-melbourne-build-to-rent">build-to-rent behemoths</a>, superannuation/pension funds, private equity firms and real estate investment trusts are entering our private rental sector regardless.

Institutional investors’ entry into our rental sector contributes to a broader paradigm shift in urban housing systems dubbed the <a href="https://www.onlinelibrary.wiley.com/doi/abs/10.1111/1468-2427.12522">financialisation</a> of (rental) housing.

States have endorsed build-to-rent, improving its viability with <a href="https://theconversation.com/why-nsw-is-skewing-its-tax-system-toward-build-to-rent-apartments-and-away-from-mum-and-pop-landlords-143594">land tax concessions</a>, exemption from foreign investor surcharges, privileged planning pathways and pilot projects (e.g. <a href="https://www.treasury.qld.gov.au/programs-and-policies/build-to-rent-pilot-project/">in Queensland</a>). The federal government’s position has been more ambiguous.

Crucially, the rise of build-to-rent sets in motion two important structural shifts

<ol>
<li>
	institutionalising the private rental sector
	</li>
	<li>
	diversifying residential development models.
	</li>
</ol>
Historically, <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf">small-portfolio “mum and dad” landlords</a> have owned and managed our rental stock. They are motivated by many of the same benefits (such as tax concessions and capital gains) and exposed to the same risks as owner-occupiers.

So we’ve had a high degree of integration between the private rental and owner-occupier sectors: few dwellings were purpose-built for renting and most homes were readily interchangeable between sectors.

Build to rent disrupts this integration. It replaces the fragmented ownership of apartment buildings under strata title laws with a single institutional owner.

Build to rent also diverges from familiar speculative build-to-sell development geared towards short-term profits. Its longer-term investment horizons give developers a new incentive to minimise a building’s running costs and to create apartments that appeal to and retain tenants.

So will it deliver?

Will build to rent provide high-quality, high-amenity, professionally managed rental homes? And at what scale, for how long, and at what costs to whom?

In the longer term, will this model disrupt the socio-political <a href="https://theconversation.com/three-reasons-the-government-promotes-home-ownership-for-older-australians-80200">twinning of home ownership and home</a>?

<hr>
Read more: <a href="https://theconversation.com/ideas-of-home-and-ownership-in-australia-might-explain-the-neglect-of-renters-rights-104849">Ideas of home and ownership in Australia might explain the neglect of renters’ rights</a> 

<hr>
Could build to rent be a catalyst for more progressive tenancy reforms, leading towards tenure neutrality/equality where ownership isn’t seen as automatically superior to renting?

These questions matter. <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">One in three</a> Australian households now rent their housing. Some <a href="https://theconversation.com/retiree-home-ownership-is-about-to-plummet-soon-little-more-than-half-will-own-where-they-live-115255">argue</a> we’re headed for a “post-ownership” society in which most people rent their homes.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="chart showing changes in proportions of households by tenure type" sizes=" 600px) 600px, 237px" src="https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=384&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=384&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=384&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=483&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=483&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/388738/original/file-20210310-21-71surk.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=483&amp;fit=crop&amp;dpr=3 2262w"></a>
</figure>Private rental was once a route to ownership. Now it’s a destination. Ownership has been delayed, become unattainable or been <a href="https://theconversation.com/i-wouldnt-want-to-buy-even-if-i-had-the-money-the-rise-of-renters-by-choice-130696">“traded off” for flexibility</a> and being able to live in desirable locations.

Tenants are also <a href="https://www.tandfonline.com/doi/abs/10.1080/14036096.2018.1467964">more diverse</a>. There are more lower-income and higher-income earners and more families than ever before.

Renters endure short leases on often <a href="https://theconversation.com/chilly-house-mouldy-rooms-heres-how-to-improve-low-income-renters-access-to-decent-housing-116749">poorly maintained</a> properties owned by a cottage industry of “mum and dad” landlords. Social housing options are few and far between in a sector that has been marginalised and <a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/108">residualised</a>. More renters, <a href="https://theconversation.com/australia-had-rent-control-in-wartime-war-on-coronavirus-demands-the-same-response-135694">uncapped rents</a>, <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">weak tenant protections</a> and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2021-02-24/wage-price-index-abs/13187102">stagnating wages</a> make for a toxic mix of <a href="https://theconversation.com/australia-had-rent-control-in-wartime-war-on-coronavirus-demands-the-same-response-135694">housing stress</a> and financial risk.

<hr>
Read more: <a href="https://theconversation.com/build-to-rent-could-be-the-missing-piece-of-the-affordable-housing-puzzle-82320">'Build to rent' could be the missing piece of the affordable housing puzzle</a> 

<hr>
Reasons to proceed with caution

We don’t have robust evidence to answer these questions, but limited evidence suggests caution is well advised.

In Australia, build-to-rent properties look set to attract rents of about <a href="https://www.afr.com/property/residential/rental-only-apartments-test-tenants-appetite-in-a-weak-market-20200804-p55iij">10-15% more</a> than comparable non-BTR housing, just <a href="https://www.colliers.com/en-gb/news/09-07-18-firm-evidence-that-build-to-rent-schemes-command-higher-rents">as they have in London</a>. Without government subsidies, market-rate BTR <a href="https://cityfutures.be.unsw.edu.au/documents/558/LCOM_0000_Build_to_Rent_Report_WEB.pdf">will not provide more affordable housing</a>.

Overseas, these rental premiums, alongside planning leniency (which reduced the affordable housing required of these developments), have been blamed for <a href="https://www.ft.com/2020living">poor outcomes</a>, such as residents being priced out of neighbourhoods they could once afford.

In Ireland, permissive planning concessions enable build-to-rent developers to circumvent design standards. This has <a href="https://www.gov.ie/en/publication/15f0b-design-standards-for-new-apartments-dsfna-2018/">raised concerns</a> that build-to-rent may deliver smaller, less diverse and lower-amenity housing (less storage, for example) than standard build-to-sell development.

In New South Wales, BTR developments <a href="https://www.treasury.nsw.gov.au/sites/default/files/2021-02/Treasurer%E2%80%99s%20Guidelines%20for%20the%20Reduction%20in%20Land%20Value%20for%20Certain%20Build-to-rent%20Properties%2C%20for%20Land%20Tax%20Purposes.pdf">cannot be subdivided for 15 years</a> (without clawback of land tax concessions). This ensures buildings remain in use as rental stock for that period. But what will happen after that?

<a href="https://theconversation.com/profiles/megan-nethercote-156060">Megan Nethercote</a>, ARC DECRA Fellow at the Centre for Urban Research, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/build-to-rent-surge-will-change-apartment-living-for-australians-but-for-better-or-worse-154839">original article</a>.
</body></html>

In Australia, we need more data and more informed public debate to guide tax, design, planning and tenancy reforms to secure the best possible outcome for build-to-rent

jordan_55689

Build-to-rent surge will change apartment living for Australians but for better or worse?

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The Urban Taskforce welcomed today’s announcement that the Government will adopt all 29 of the NSW Productivity Commission’s recommendations into infrastructure contributions (full list of the recommendations is over leaf).

This decision announced by Treasurer Dominic Perrottet and Minister for Planning Rob Stokes is very welcome news.  With JobKeeper about to end, the changes recommended by the NSW Productivity Commission will help stimulate investment in jobs in the property development and construction sector. The Government, through the NSW Productivity Commission, has consulted with all stakeholders, developed a plan and has now committed to its implementation in full.

This is a clear sign that the NSW Government has been listening to the concerns raised by the Urban Taskforce and our members regarding fees taxes and charges associated with local and state infrastructure.  There is much more to be done in planning reform, as the Productivity Commission’s Green Paper (a separate Review) makes clear, but today’s announcement represents strong progress.

<ul>
<li>Councils rate pegs will now be adjusted to take into account population growth – meaning Councils won’t be punished for approving the construction of new homes anymore.</li>
	<li>Councils and State Government agencies will be banned from gold-plating infrastructure at the expense of new home buyers by allowing IPART to set benchmark costs for infrastructure. Contribution plans will be set prior to the rezoning of land.  This will be a major change and will limit windfall profits from speculative landowners as all the fees and charges will be able to be factored into the purchase price.</li>
	<li>Infrastructure Contributions will not be paid until the new building is completed and ready for occupation. This is a major change from the current requirement to pay s.7.11 fees up front. This will free up cash-flow to get projects going.</li>
	<li>Broadening the tax base for “SIC” infrastructure levies which will apply to State Government (s.7.24) infrastructure so the burden is shifted away, to some extent, from new home buyers.</li>
	<li>Reducing the cost of water connections to new properties by restricting Water Service providers to charge only the actual cost of the connection.</li>
	<li>Improving the digital tools to allow for user friendly calculations for all Government fees and charges.</li>
	<li>Hold Councils accountable for the levies they collect and their expenditure on infrastructure. 
	 </li>
</ul>
Value capture will be actively curtailed and planning agreements will be limited to the recovery of infrastructure development costs that are directly associated with the proposed development.

There is more to be done to boost the number of approvals and relieve the current boom in new home prices – but this is a tremendous step in the right direction and just what the economy needed as we move out of the COVID-19 recession.
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The NSW Government will adopt all 29 of the NSW Productivity Commission’s recommendations into infrastructure contributions

NSW Government adopts every single productivity commission infrastructure recommendation: Urban Taskforce

<html><body>
The construction sector continued to recover in February, according to the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index.

The housing activity index surged to a new record high.

And apartment building turning positive for the first time in three years, the report noted.

[smartcode_project:default project_id=5559]

Residential builders said advised their customers are asking for their projects to commence "as soon as possible" due to government grant eligibility.

Ai Group head of policy, Peter Burn noted the construction sector continued to recover in February building on the strong rebound that first emerged in October last year. 

"House building activity further accelerated, and the apartment sector lifted firmly into positive territory in the month."

He suggested some of the surge in demand for new houses was now flowing into apartments.  

[smartcode_project:default project_id=2772]

The report noted builders are increasing their orders and some are still catching up on supplies after extended freight disruptions.

"While recent data has been encouraging, the immediate outlook is mixed with new orders higher only in the housing segment: they were flat for the apartment building sector, mildly negative for commercial building and sharply lower for engineering construction. 

"With several components of fiscal stimulus winding down, delivery on the increased infrastructure pipeline will become a key swing factor in the continued recovery over the rest of 2021," Dr Burn said. 

Builders in all sectors said that various delays are still occurring due to COVID-19, including delays to planning and finance applications, delays to essential supplies and localised skilled labour shortages. 
 
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The Australian PCI expanded in February, with house building activity hitting a record high and apartment building firmly turning positive for the first time since February 2018. 

Apartment building activity turns positive for the first time since February 2018

<html><body>The latest dwelling approval data reveals a big gap opening up between house and apartment construction.

IFM economist Alex Joiner advised there had been a "big pullback in building approvals."

Approvals for apartments and townhouses dropped by 22 per cent year on year, the lowest level approved since January 2012, in seasonally adjusted terms.

The approvals were down 39 percent month on month with $5bn of new residential builds committed in the month.

ABS construction statistician Daniel Rossi anticipates the HomeBuilder scheme would continue to support the residential construction sector for the next few months.

“The surge in HomeBuilder applications at the end of 2020, as well as the extension of the program to March, will continue to provide support for private house approvals in the coming months,” Mr Rossi said.

https://twitter.com/IFM_Economist/status/1366548452486705152

But the relative weakness in higher-density approvals compared with the detached segment reflects the headwinds of the pandemic, "particularly very weak migration flows," James Foster, the global macro analyst noted.

Foster suggested the migration restraints were "weighing on developer forecasts for demand."

Approvals need to rebound sharply to match forecast required commencements, UBS economist George Tharenou told The Australian Financial Review, however TD economist Stephen Koukoulas suggested the pullback "may go someway to alleviate the looming oversupply issue."

By contrast to high density approvals, approvals for private houses fell 12 per cent in January to 12,100, following their HomeBuilder-induced all-time December high, to be 38 per cent higher than in January 2020.

Approvals for houses also fell across all states in January.

The HomeBuilder stimulus measures had mostly been directed towards the detached segment of the market, Foster noted. 

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January dwelling approvals fell from their HomeBuilder high in December, but are still sit at elevated levels.

Big gap emerging between house and apartment construction

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The home builder AVJennings, spurred by the Homebuilder grant, has seen a 47 per cent year on year jump in house sales.

The details were revealed when AVJennings reported its results for the six months to December 31.

It has 12,700 lots in its portfolio.

2021 will see the commencement of three new projects, Prosper at Kogarah in Sydney; Rosella Rise at Warnervale on the NSW Central Coast; and Aspect at Mernda in Melbourne’s strong northern corridor.

All are due to commence on-site development. Last year saw its Bethania project in Queensland recommence with construction after a three year hold.

<img alt="" height="816" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/av_jennings_results.jpg" width="1200">

Its managing director Peter Summers forecast an even better second half for the company given new-home buyers remain active. It had 408 pre-sales carried over at 31 December 2020.

It has 331 contracts signed at 31 December 2020 with a pre-sale value of $121 million expected to settle before 30th June 2021. Around 118 additional contracts were signed in 2021 to 23 February 2021. It typically sells to owner occupiers, with some 46 percent being first home buyers during the first year of the financial year.

During the last financial year FHBs sat at 35 percent of their buyers. Over the period investors fell from 11 percent to 9 percent, while builder/developers fell away to constitute 14 percent of the market rather than its prior 21 percent take up.

HomeBuilder and other government support/stimulus had been "vital" in encouraging existing underlying demand to continue with their buying intentions, the report noted. It also noted the resumption and level of immigration into Australia, and New Zealand, will be important drivers of activity for the sector.
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AVJennings is cautiously optimistic that the recovery will consolidate through 2021

Home builder AV Jennings sees big jump in house sales

<html><body>
The departing Stockland boss anticipates that the housing market could shift into under-supply in residential growth corridors around the capital cities over coming years.

Mark Steinert, the boss of the country’s largest residential developer, Stockland, suggests 2025 could see “quite a chronic under-supply in the land market.” 

“We need to make sure that, particularly on the eastern seaboard, planning and the delivery of infrastructure can align to ensure that under-supply doesn’t become too great,” he told The Australian.

“That’s going to reignite the whole challenge around affordability again just when it got to a point where that could actually be addressed.”

Buoyed by the federal government’s HomeBuilder incentives, Stockland’s ASX results announcement advised its strongest market was Sydney, followed by southeast Queensland. The company advised its settlement default rate had returned to normalised levels.

With strong January sales, the price secured per sqm rose significantly annually in NSW from $940 psqm to $1139, with the average lot price rising from $412,000 to $461,000.

<img alt="" height="398" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/stockland_1h21_results.jpg" width="1200"> <img alt="" height="472" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/1h20_settlements_stockland.jpg" width="1200">

“Melbourne continues to be solid, but has obviously been a bit more impacted by both the combination of the lockdowns, and the greater availability of land,” Mr Steinert said.

He anticipates Perth could moderate over the next 12 months as WA had the largest housing grants, pulling forward demand, although the strong mining sector could keep up its momentum.

Stockland’s buyers are mostly owner occupiers.

“We’ll move to equilibrium in 2022, and then move back into quite a significant under-supply as migration and foreign student numbers start to pick up in 2022,” Mr Steinert forecast.

Stockland had five new subdivision acquisitions, dubbed early cycle restocking, with the potential of adding 9,200 lots to its inventory.

Its residential business reported its strongest half year results in four years with more than 3800 sales, along with residential settlements jumping 43 per cent to 3,100.

Stockland is on track for 6000 settlements this financial year.

 
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Mark Steinert, the boss of the country’s largest residential developer, Stockland, suggests 2025 could see “quite a chronic under-supply in the land market.” 



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