Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Australia Post is one of the country’s most trusted institutions, powering one of the largest delivery networks in Australia. As online shopping continues to scale, Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online.

That scale of eCommerce activity has fundamentally changed expectations around how and when parcels arrive, and what happens when someone isn't home.

<h3>Problem solved with Parcel Lockers</h3>

The traditional alternatives to home delivery are far from ideal. Buildings can rely on reception teams to manage deliveries, which introduces ongoing staffing costs and liability concerns. Parcels can be left in common areas, which creates security and aesthetic issues. Or residents are redirected to nearby Post Offices for collection, which shifts the inconvenience rather than solving it.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/dVG5ChLHf7E?si=D9hQRGCBuzlSQBqK" title="YouTube video player" width="560"></iframe>

The data behind that frustration is significant. Nationally, around 9 per cent of deliveries are carded, meaning the recipient was not home and must collect the parcel from a Post Office. That figure reflects the national average reported between November 2025 and January 2026. In Melbourne, that figure rises to 20 per cent. In high-density living, it climbs again to 28 per cent. In other words, more than one in four deliveries in Melbourne apartment buildings results in a failed first attempt.

<h3>How Parcel Lockers work</h3>

The mechanics are simple. When a parcel arrives, the resident receives a notification either through the Australia Post app or via SMS. They scan a QR code, use their one-time PIN and the compartment opens. The parcel is secure, accessible and removed from the lobby floor.

Located in thoughtfully chosen, easily accessible areas, including external building interfaces, mixed-use precincts or shared communal zones, Parcel Lockers enhance convenience without requiring internal building access or additional operational oversight.

<h3>The scale of the network</h3>

This expansion represents Australia Post's largest investment in parcel infrastructure to date, building on momentum that began in 2011 when the first 24 Parcel Locker sites were introduced.

Today the Australia Post Parcel Locker network spans over 1,400 locations and more than 105,000 individual compartments, with major investment already underway to significantly expand the network further.

<h3>What it means for developers and building operators</h3>

A Parcel Locker bank is free to install and free for residents to use. That removes one of the primary barriers to adoption and shifts the conversation from cost to integration.

Australia Post's preference is to engage with developers during the design phase. That allows Parcel Lockers to be located in a considered, publicly accessible space that works for residents and the broader community. Retrofit is possible, and existing buildings can be assessed, but the strongest results occur when Parcel Lockers are treated as part of the core services plan rather than a bolt-on solution.

While the iconic Australia Post red is widely recognised, Parcel Lockers can also be delivered in more muted palettes such as beige or green to align with architectural intent.

For developers, they offer a tech-forward amenity that meets modern expectations, a reduction in courier congestion and building-management load supporting lower emissions and better ESG outcomes, and a meaningful marketability advantage in high-density, eCommerce-active areas, all at no cost for installation and maintenance, with Australia Post funding the program aside from power access.

<h3>Who's using them</h3>

Generational shopping behaviours show strong, sustained growth across all cohorts. Millennials (27–43) led online spend in 2024, contributing nearly $25 billion. Baby Boomers (60–78) increased their online spend by 17.6 per cent, becoming the fastest-growing adopters. Gen Z (13–26) and Gen X (44–59) continue to lean on delivery services as part of their everyday shopping habits.

Internationally, uptake is even more pronounced. Overseas markets are seeing rapid adoption by both developers and consumers, positioning Parcel Lockers as standard infrastructure in many new residential projects. For Melbourne's development community, this signals a shift in baseline expectations. Just as secure bike storage and dedicated parcel rooms have become more common, integrated Parcel Locker networks may soon be viewed as part of the essential service mix.

<h3>The bigger picture</h3>

Parcel Lockers aren't just a logistics fix. Developers invest heavily in lobby design, materials, lighting and landscaping to shape first impressions. Yet a stack of unattended parcels can undo that effort in an instant. Embedding parcel infrastructure early allows projects to respond to how people actually live today, supporting resident satisfaction, reducing operational strain and aligning with broader community and ESG outcomes.

As Belinda Quinn, Senior Transaction Manager – Retail &amp; Out of Home at Australia Post, puts it, residents increasingly expect delivery solutions that align with real life, are flexible, secure and available whenever they need them.

How Australia Post is solving the parcel problem for apartment living

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Stockland shareholders have been warned that profits will fall further in the next financial year with the Victorian residential market the standout weak spot.
Delivering his final address as managing director before he steps down in February, Matthew Quinn provided an update on residential deposits taken over the first quarter of the 2013 financial year.
Over the three months to September, net deposits taken declined from 1,127 to 1,082, with deposits on Victorian residential developments declining from 289 in the final quarter of the 2012 financial year to just 161 in the first quarter of the 2012-2013 financial year.
A smaller decline in deposits was recorded in NSW (170 to 142), with an improvement noted for Queensland (deposits up from 334 to 386) and Western Australia (334 to 393).
“Our residential business faces a high degree of uncertainty given current buyer caution,” Quinn told shareholders in Sydney today.
“There have been some signs of improvement in the housing market, particularly in Perth and we have recently been bolstered by first-home buyer stimulus targeted at the new housing market in Queensland and NSW.
“The reality, though, is that conditions are very tough in Victoria where the company’s most profitable projects are located.”
Stockland has eight residential community projects on the Melbourne fringes, including Highlands in Craigieburn and Selandra Rise in Clyde North.
Quinn reminded shareholders that at Stockland’s full-year results presentation in August, he said Australia was experiencing “the worst new housing market I had seen in more than 20 years in the industry”.
“This is not only because sales are at a cyclical low, but because this has persisted despite conditions that would normally stimulate activity – low unemployment, low interest rates, undersupply of housing and low rental vacancy rate.”
Quinn says that in every state where Stockland operates housing approvals are tracking well below the long-term average, and nationally the market is 18% below historical averages.
“Housing approvals is a lag indicator and these figures don’t yet reflect the recent downturn in Victoria which we expect to show through sharply in coming months.
“The good news is that population growth remains strong and this cycle will turn, but the question is ‘when’.
“We need to see a trigger for improvement – a sense that the market is moving, so cautious consumers become more concerned about acting too late than acting too soon.
“Interest rates are normally a driver of this, but in this cycle home owners are just paying off their mortgages more quickly rather than taking on more debt. In the long term this is a good thing, but it’s painful while we go through this process.”
 
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Quinn also reminded shareholders that while there is always a big focus on Stockland’s residential business, the majority of its assets are “investment properties where the profits are very predictable from secure, rental backed contracts”.
He said Stockland’s $5 billion shopping centre portfolio continued to perform well in the challenging environment and is expected to achieve 2% to 3% comparable net income growth in the 2013 financial year.
However, overall profit from Stockland's commercial property investments will be lower than last year. 
In addition, while Stockland’s retirement living business continues to see strong demand for products, "settlements are being impacted by the soft residential market conditions, particularly in Victoria".
In his address to shareholders, Stockland chairman Graham Bradley said a “combination of factors including low consumer and business confidence, anxiety about global economic conditions and fear of unemployment” have combined to produce headwinds, which have impacted on Stockland’s profit performance in the 2011-12 financial year. He said these headwinds “will continue to do so in the current 2013 financial year when, I regret to report, we expect our profit to decline further”.
Stockland profits fell 7% to $676 million in the 2012 financial year, with profit from its residential business falling 15%.
Bradley said the Stockland board is confident of delivering improved returns from the 2014 financial year, “as our three major retail developments come on line and as we launch new residential projects”.
He also thanked Quinn and said Stockland had grown significantly under Quinn’s leadership, who also steered the company through the 2008 financial crisis.
Bradley said the search for Stockland’s next managing director was progressing well.
“We look forward to announcing the appointment of our new managing director in due course.
“In terms of day to day operations, we are pleased to have a strong management team in place who will ensure that our business maintains momentum and achieves a smooth leadership transition.”
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Stockland expects further slide in profits in 2012-13 in ‘very tough’ Victorian residential market

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Australand has slammed some of its biggest house-and-land competitors for offering incentives to entice buyers as the outlook for the Melbourne land market remains soft.
Land sales on Melbourne’s fringes have been in decline since the second half of 2009, falling from 16,000 sales in 2010 to just 6,000 for the first six months of 2012, according to the latest Melbourne communities report from Colliers International, which forecasts only modest growth ahead.
Median land prices fell by 9% over the six-month period, from $215,000 to $205,000, but recorded an increase of 7% year-on-year.
Developers have also been hurt by the withdrawal of the $13,000 Victorian government first-home buyer handout for the construction of new homes, which ended in June.
Australand general manager Rob Pradolin told Fairfax the current land market remained tough, with first-home buyers disappearing following the ending of the grant, but says rebates and incentives are causing hundreds of home owners to pay more stamp duty because the face value of contracts included those extras.
He says there is a lot of competition in the marketplace, with “developers under-cutting each other and offering significant incentives to make a sale”.
Pradolin says rebates are disguising the adjustment that has already occurred in the Melbourne land market and says it is about time developers face the facts, give a simple best price and move on.
Australand has eight land estates for sale on the Melbourne fringes including Casiana Grove in Cranbourne West, with land prices starting at $187,000 featuring 670 lots.
According to Colliers, 400 lots remain available for sale in this development.
Among those offering incentives is one of Australand’s biggest competitors, Stockland, which is offering a $10,000 cash rebate on selected lots.
The rebate is offered at Selandra Rise in Clyde North, the-top selling residential project over the second half of 2011, according to the same Colliers report.
Lend Lease is offering to pay back the value of stamp duty of the land component of the sale to be received as a cash-back upon settlement before December 7, 2012.
Another developer, Peet, was giving away Toyota cars up until October 14.
Other developers offering incentives include Intrapac, which is offering a $15,000 new home buyer grant at its Somerfield development at Keysborough in Melbourne’s south-east, which is available to all buyers.
“We’re extending the expired new home buyer hrant to include everyone,” says the Somerfield brochure.
Some of the promotions come with flashy, attention-grabbing signage.
<img src="/images/stories/2012/10/hotlots.jpg">
The Stockland offering is called the “Hot Lots Offer” complete with burning flame.
Other developer incentives have included cash rebates, stamp duty rebates, free fencing and landscaping.
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Flashy developer incentives push up cost – and attendant stamp duty – of Melbourne land packages: Australand

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Do you want cashflow or equity from your development?
One of the first questions I ask anyone enquiring about property development project management services is: what is your goal?  What do you want to achieve from your development?
The reason I ask is because some people want to create positively geared property with the highest possible yield because they want to add to their cashflow.  Generally these people may have lower incomes but still want to build a property portfolio. The income from the properties will increase their taxable income. They don’t want property that is going to drain them financially.
Others are looking for negatively geared property where they can create lots of equity. Generally they are people on higher incomes, paying a lot of tax and need property that will help offset some of the tax they are paying. They need high depreciating property and want to use the equity created through development for their next deal.
There are very different development strategies for each outcome.  After this initial chat, we recommend a discussion with their accountant and lender take place to ensure that the development strategy that they want is actually correct for their situation.
Once we’ve established the development strategy, we look within this category for the right development site for them.
A high cashflow development will be one that produces a 9%-plus gross yield, and Property Bloom is achieving this with our granny flat developments. I’ve included figures on our latest granny flat completed below:
Purchase three-bedroom house on large, dual-access block:   $228,000
Stamp duty and purchase costs: $10,000
Renovations to house: $18,000
Total house cost: $256,000 – rent achieved $340 per week
Cost to build tw0-bedroom granny flat: $96,000 – rent achieved $280 per week
Total rental return: $620 per week, $32,240 per annum
Cost of house plus granny flat = $352,000
Gross yield (rent divided by cost) = 9.2%
This is a cashflow strategy, not an equity creation strategy, as a valuer is likely to value the property at cost plus upgrades unless there are direct sales comparables in the market. This is because the flat cannot be subdivided from the house and may be considered purely an upgrade to the existing house.
On the opposite end of the scale would be a three- to four-unit project that will create a large amount of equity, high depreciation benefits and not a bad yield, but a project of this size will still probably be negatively geared on completion.
 
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Here’s an example of a three-unit project Property Bloom has just completed in the Hunter region of NSW:
Land 1,090 square metres: $195,000
Purchase costs: $7,000
Building costs: $667,000 includes all design, fees, development application and construction certificate costs
Total costs:  $869,000
Rent on three units @ $390 per week each = $ 60,840 per annum
Estimated values of freestanding three-bedroom, two-bathroom units: $1,088,000
U1 $369,000 (DLUG), U2 $350,000 (SLUG), U3 $369,000 (DLUG)
Gross equity created (value less costs) = $219,000
Gross yield: 7%
Be clear with your goals.  Yield or equity, and sometimes you may achieve a balance between the two.
With cash rates now down to 3.25% and banks fixed rates around 5.4% (for 3 years), yields are increasing.
To create a good amount of equity in your development be sure to buy the land at the best possible price, look for relatively flat land that will help keep site costs low and build just what the market needs, not above it – don’t over capitalise.  If you can keep your building costs low but still deliver a good product, then you have met a few developer golden rules.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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Choose between cashflow and equity when developing property

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Stockland’s Selandra Rise residential community in Melbourne's south-east has been one of the most successful recent house-and-land projects in Melbourne, according to the latest Melbourne communities report from Colliers International.
The report, released this week, notes that Selandra Rise (pictured below) in<a href="/news"> Clyde North</a> managed around 150 sales over the second half of 2011.
<img src="/images/stories/2012/10/selandra1.jpg">
However, the overall outlook is for lower steady growth in residential land sales over the next few years, with a combination of reduced population growth, declining consumer sentiment and changes to government incentives having already led to a correction in demand for land in Melbourne’s residential communities.
"Lack of demand, a cautious consumer outlook and uncertainty in funding on the developer and purchaser side is likely to continue in the next 16 months,” says  Paul Wheate, Colliers International director for valuations.
Over the second half of 2011 residential lot sales in Melbourne’s fringe growth suburbs continued to decline falling by 21%.
Colliers International records less than 2,000 lots sales in the second half of 2011 compared with more than 3,500 in the same period two years ago.
Median land prices fell by 9% over the six-month period, from $215,000 to $205,000, but recorded an increase of 7% year-on-year.
New home approvals are down to below 6,000 across the city for the first six months of the year, compared with nearly 14,000 in 2011 and close to 16,000 in 2010.
Wheate says that after a period of high demand and limited supply, the land market was returning to more sustainable long-term averages in terms of sales rates, driven largely by the increased supply of available stock and declining purchaser sentiment.
“After the highs of 2009 and 2010 we became used to unsustainable levels of activity,” he says.
“With the declines in demand that we are seeing, courtesy of reduced building approval figures, population growth, and negative consumer sentiment during 2012, we anticipate that vacant lot and house sales will remain at current levels for the short to medium term.“
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/colliersoct11.gif"><img src="/images/stories/2012/10/colliersoct11thumb.gif"></a>
 
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Colliers International research analyst Margaret Bowden anticipates that the current environment will lead to a further increase in the proportion of sales of land measuring between 350 square metres and 450 square metres, and will likely lead to a more affordable median price for both vacant lot and house sale prices over the next 16 months.
The trend to build more affordable houses on smaller lots has already been picked up Stockland, which has reduced its average lot size from 569 square metres to 510 square metres. The company has pushed up the price from $362 per square metre to $403 per square metre.
The Colliers International report notes that around 82,265 vacant lots were sold and settled in the municipalities of Hume, Cardinia, Casey, Whittlesea, Wyndham, and Melton between 2005 and 2011.
However, nearly 43,000 lots remain available for sale – more than half the number sold over the previous six-year period.
Many projects continue to sell well, led by Selandra Rise.
The development is located in the city of Casey, about 50 kilometres south-east of Melbourne and about 20 kilometres from Mornington Peninsula.
Three-bedroom house-and-land packages start from around $320,000 on blocks measuring 294 square metres.
In total, 750 out of the 1,200 blocks available at Selandra Rise have been sold since marketing commenced in 2010.
Other strong selling projects include Stockland’s Allura community (Truganina) and Lend Lease’s Atherstone community (South Melton) in the western region, which sold 120 and 105 each respectively, and Metro Property’s Orchard Grove (Doreen), which has sold about 100 lots since it began marketing in April 2011. This is equivalent to 57% of its total stock.
According to Colliers International, six new precinct structure plans (PSPs) were completed in June 2012.
These new development areas will add an estimated 37,782 lots to the growth corridors of Melbourne in the future. This brings the number of total proposed lots to 135,561.
The western corridor has the highest proportion of lots (36%) with completed PSPs in the supply pipeline, the majority of which are in the municipality of Melton (35,254 lots). This is followed by the south-eastern corridor, with 33%, and the northern corridor with 31%
<a href="/news">Wyndham </a>recorded the highest median price for vacant lots (excluding rebates) in Melbourne’s growth areas over the second half of 2011 with $237,750, followed by <a href="/news">Casey </a>($213,950), <a href="/news">Whittlesea </a>($211,000), <a href="/news">Hume </a>($195,000), <a href="/news">Melton </a>($175,500), and <a href="/news">Cardinia </a>($176,000).
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Stockland’s Selandra Rise tops Melbourne’s house-and-land sales but fewer sales forecast: Colliers

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The red brick Cronulla house used as the location of the Vickers' family house in the Channel 10 series Puberty Blues (pictured below) sold at recent auction for $1,382,500.
{yoogallery src=[images/stories/2012/09/sept6puberty]}
The home, last sold 47 years ago, was very much in mint 1970s condition, including the seven different types of wallpaper, patterned carpet, coloured bathroom and wood light fittings.
The television series location manager Peter Hicks scoured for months to find the right house with authentic '70s interiors.
Inspired by the recent <a href="https://www.propertyobserver.com.au/new-south-wales/no-blues-for-the-property-market-as-70s-icon-sells/2012090956471" target="_blank">Puberty Blues series</a> – which seems set to return to our wide screens again – and the home sale, Property Observer has taken the trip back to find the top 1970s homes that are currently on the market or have recently sold.
The list is mainly populated by Victoria and New South Wales properties, but other states do get a mention. The list is organised by the style features that are indicative of a 1970s property.
 
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<h1>Orange and brown</h1>
Maybe it was all the John Lennon tinted sunglasses, but people in the 1970s loved orange and brown. The world couldn’t get enough – orange and brown pants, orange and brown carpet, orange and brown typewriters and orange and brown homes. 

<img src="/images/stories/2012/09/trentwood.jpg">
<a target="_blank" href="https://www.realestate.com.au/property-house-vic-balwyn+north-109451346">21 Trentwood Avenue, Balwyn North, Vic 3104</a> (pictured above)
In excess of $1 million
The fire, the furniture, the brown carpet and the wood veneer show this house's makeover in the 1970s. Walk into the open home day and you’ll likely hear Bee Gees’ Trafalgar pumping from the stereo. This home was actually built in the 1960s but underwent a hefty renovation in the '70s. The property was designed by Kevin Borland. The four-bedroom brick home is listed through Dawn Kay from Fletchers Balwyn North.
 
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<h1>Exposed Brick</h1>
Brick was best, according to the 1970s psyche. Big, imposing (orange) brick walls were a key feature of Australian homes in the 1970s.

<img src="/images/stories/2012/09/vernon.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-hunters+hill-111544867">8 Vernon Street, Hunters Hill, NSW 2110</a> (pictured above) $3.49 million

There’s a big brick wall here, but the owners have adorned it in true '70s style with a lovely big hanging tapestry. The roof angles down leading onto a concrete entertainer's deck. Settle back in the period futon and get groovy, man. The home comes with 180-degree views over the bay. It comes with its own pool and private access to the bay. Nicholas McEvoy from McGrath Hunters Hill is listing the property.
<img src="/images/stories/2012/09/williamedward.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-longueville-110477853">19 William Edward Street, Longueville, NSW 2066</a> (pictured above) $1.59 million

The interior is stylistically similar to the previous property. The dining room here is framed by the big brick walls to give a homely feel. The Longueville property comes on 1,250 square metres for the true Australian dream lifestyle. It is being listed by Mary-Anne Fitzgerald from Blunts Real Estate Lane Cove.
 
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<h1>Tiled kitchens and bathrooms</h1>
Big tiles were the big thing back then, and who can blame them? Patterened tiles, striped tiles, orange tiles – anything to make a statement.
<img src="/images/stories/2012/09/hooke.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-dungog-109339186">112 Hooke Street, Dungog, NSW 2420</a> (pictured above) $359,000

Big and bold are the words to describe these tiles. The fern in the upper right does inject some greenery into the earth tones of the bathroom. The brick home is in Dungog, North of Newcastle. Natasha McElwaine from McElwaine Hunter Valley is selling the property.
<img src="/images/stories/2012/09/park.jpg">
<a target="_blank" href="https://www.realestate.com.au/property-house-vic-brunswick-111096111">833 Park Street, Brunswick, Vic 3056</a> (pictured above)
$1,350,000

Very similar tiles here, maybe Waltons was having a sale at the time. Offered for the first time in 28 years, this property is a blast from the past. Property Observer particularly likes the lovely blind just peeking into the frame. Property Observer notes it's not quite authentic though, with a complete lack of any Macramé. The solid-brick Californian bungalow is close to Melbourne and comes with the classic three bedrooms and two bathrooms. Chris Goulding from Barry Plant Brunswick is selling the property.
 
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<h1>Billiards and pool rooms</h1>
Someone in the 1970s decided that billiards and pool rooms were a good idea. The space-hungry rooms are a common feature of homes of this period.

<img src="/images/stories/2012/09/belmont.jpg">
<a target="_blank" href="https://www.realestate.com.au/property-house-vic-surrey+hills-111303151">5 Belmont Street, Surrey Hills, Vic 3127</a> (pictured above)
$1. 4 million

There’s ample room to play a few rounds of pool around this table, there’s no need to buy shorter cues, which are so often required in pool rooms. The generous space is a sure feature from the '70s. The four-bedroom Surrey Hills home comes has no shortage of space at all, as it’s set on 1,139 square metres. It’s being sold by Loger Chen and Janssen Xiang from Aussie Home Real Estate Kew.
<img src="/images/stories/2012/09/robinson.jpg">
<a target="_blank" href="https://www.realestateview.com.au/Real-Estate/18-20-robinson-place-portsea/Property-Details-buy-residential-3732841">18-20 Robinson Place, Portsea, Vic, 3944</a> (pictured above) $1.6 million

Big pool room, big tiles, orange stylised furniture – this has to be the feature home on our list. The wood-panelled roofing leading out into the entertaining area is lovely. The four-bedroom home comes on 2,000 square metres and is close to the local tennis and golf club. It’s being sold by Ilze Moran and Lloyd Robinson from RT Edgar Portsea.
 
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<h1>Fireplaces</h1>

Home builders in the 1970s loved their fireplaces. If there’s one way to quickly tell if a home was built in the 1970s, rush to the lounge room and see if there’s an open fireplace. Big and brick and likely orange.

<img src="/images/stories/2012/09/clarke.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-sa-walkerville-108186616">6 Clarke Street, Walkerville, SA 5081</a> (pictured above) $875,000 to $950,000 Built in the 1970s, this home was recently renovated to bring it up to date. But it’s been tastefully done and keeps its original styling cues. White walls started to creep into fashion in the 1970s as architects advocated large modern-looking rooms. The original builders took an interesting take on the requisite 1970s fireplace and have made it a feature point of the open-plan dining and lounge room. It’s being sold by Judy Morris from Klemich Real Estate.
<img src="/images/stories/2012/09/small.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-woollahra-111201083">13 Small Street, Woollahra, NSW 2025</a> (pictured above) Above $2 million

There’s some '70s-influenced styling here with the fireplace and the Organic-style architecture. It comes with views over the city skyline, which would have looked somewhat different in the 1970s. The rest of the house is furnished with period furniture and detailing. It’s being sold by Walter Antonelli from Raine &amp; Horne Double Bay.
 
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<h1>Trippy patterns</h1>


Stare at some of the patterns around in the 1970s long enough and you’ll eventually lose your mind. There’s nothing subtle about the carpets and wallpaper around at the time.
<img src="/images/stories/2012/09/watts.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-vic-mount+eliza-108199666">44 Watts Parade, Mount Eliza, Vic 3930</a> (pictured above) $950,000

What a kitchen. Property Observer likes the styling and the big floor tiles. The kitchen is in a three-bedroom Mount Eliza home absolutely full of 1970s furniture. The property is being sold by James Crowder from Community Real Estate Mount Eliza.
<img src="/images/stories/2012/09/sheoke.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-vic-sorrento-107134026">5 Sheoke Grove, Sorrento, Vic 3943</a> $675,000

This Sorrento property hasn’t been touched in a long time. There's wonderful wooden bedheads. The zig-zag carpet is unrelenting yet mesmerising. And then to complete the magic eye illusion, it’s offset by the fluoro curtains. The brick home is set on 776 square metres of land. It’s being sold by Liz Jensen from Kay &amp; Burton Portsea.
 
<img src="/images/stories/2012/09/yarrabat.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-vic-balwyn-108169516">97 Yarrbat Avenue, Balwyn, Vic 3103</a> (pictured above) $ Undisclosed

This home was originally designed by  Dale Fisher, an Australian architect active through the 1970s. It has made use of the classic '70s wallpaper, but it’s used in restraint and works quite well. The interior of the home is like a museum of 1970s styling. The four-bedroom home comes on 1,812 square metres of land in Balwyn. It recently sold through Diana Healy from Jellis Craig Hawthorn.
 
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<h1>Outdoor spaces</h1>
Entertaining has always been an Australian tradition, and this was no different in the 1970s. The spaces there were built to 1970s tastes.

<img src="/images/stories/2012/09/helenslea.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-vic-caulfield+north-111417947">7 Helenslea Road, Caulfield North, Vic 3161</a> (pictured above) 

This is a classic 1970s outdoor space. The deck is concrete tiled, and the angled roof comes down to give a small timber-clad covering to half of it. The patio looks out to the expansive backyard and into the family room. The home has been updated over the years, but the undeniable soul of the '70s remains. The four-bedroom Caulfield North home is set on 835 square metres and comes with a kosher kitchen and an undercover car port.

<img src="/images/stories/2012/09/nelson.jpg">
 <a target="_blank" href="https://www.realestate.com.au/property-house-wa-bedfordale-110374989">30 Nelson Street, Bedfordale, WA 6112</a> $559,000

That façade is so '70s it must have been designed right about the time Gough Whitlam was sacked by John Kerr. The façade is from a five-bedroom brick home on 5590 square metres in the semi-rural suburb in the south-east of Perth, Bedfordale. It’s being sold by Sam Saffioti from Roleystone Real Estate Roleystone.
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Got the right day but got the wrong week: the 14 houses living in the '70s

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Residential property developer Peet expects “conditions” in the residential property market to remain “volatile and challenging" into 2013 with business and consumer confidence remaining low despite the series of rate cuts in the previous financial year.
However, Peet managing director and CEO Brendan Gore did note in the company’s annual report that “positive signs” have emerged in the Western Australian property market in the first months of the year.
And he said there are also plans to accelerate development of Peet's Vantage master-planned residential community in Gladstone, the mining hotspot 550 kilometres north of Brisbane.
However, the overall tone of the annual report was one of a challenging year ahead for Peet and others operating in the residential development sector.
“The 2012 financial year delivered some of the most challenging conditions experienced in almost 20 years and there is little expectation that markets will improve significantly in the 2013 financial year,” said Gore.
“The series of interest rate cuts in 2012 has not had the desired effect to date and consumer and business confidence remains low."
He did add that the long-term fundamentals of the Australian property market – including population growth, an under-supply of housing and a tight rental market – “remain conducive to an improving market.
“However, the catalyst for household confidence, which will underpin improved demand in the residential property market activity, is yet to be found.”
Gore says Peet would be well prepared to "respond quickly and effectively to any improvement in consumer sentiment and the residential market".
“However, given the ongoing uncertainty in Australia, and until the timing and strength of the expected recovery is confirmed, the directors are unable to provide guidance on 2013 operating earnings with any degree of certainty."
Peet recorded a net operating profit after tax of $20.3 million for the year to June 30 and statutory net profit after tax for the full year of $5.4 million, representing a decrease of 76% compared to the previous corresponding period.
Shareholders did not receive dividend payment.
Peet chairman Tony Lennon said he appreciated this would be disappointing for investors, but said he trusted investors “have confidence in our ongoing dividend payment policy and the validity of the reasoning behind the decision taken”
Lennon said the year ahead would be a period of consolidation for Peet.
“We are operating in exceptional times where, despite the relative wealth of our own nation, we are heavily impacted by the global economy and consumer and business confidence has been low over a sustained period of time.
“This time last year, it was the crisis befalling some European economies and concern about the United States’ debt ceiling issue. This year, the slowing of the Chinese economy and falling commodity prices are also having significant flow-on effects in Australia and consumer and business sentiment remains cautious.
But he said the company was well positioned with “quality assets in good locations around Australia”.
“We have managed through a number of cycles and will continue to maintain the rigour required during the current market conditions, while positioning the company to capitalise on any upturn in consumer sentiment.”
Peet’s biggest residential project is Flagstone City, 45 minutes south-west of Brisbane in Jimboomba, which has a gross development value of $1.87 billion and is due to begin in 2013. It features 1,500 lots and is proceeding as scheduled.
In total Peet has a lot pipeline of 34,600 worth $6.2 billion.
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No property market recovery in 2013, but some early positive signs in WA: Peet

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There is no simple policy response to lifting a major sector of the economy, housing, out of its current doldrums.
Financial stimulus packages such as increasing the value of first-home owners’ grants and stamp duty concessions do work. However, as welcome and necessary as these fiscal stimulus policy measures are, they need to be complemented by other monetary policy and regulatory reforms to overcome the challenges in the post-GFC deleveraging environment.
 
The new housing market is well known for its cyclical behaviour but the current cycle, impacted in recent times by the GFC, has highlighted the systemic problems of housing supply, housing affordability and the need for fundamental reform.
 
The here and now
Residential building is going through a worrying and long weak phase during which industry activity, in real terms, has essentially tracked sideways for close to nine years now. The short-term outlook remains poor despite the RBA’s cumulative rate cuts of 1.25 percentage points over the past 12 months, and residential building is set to weaken further during the remainder of 2012 and into 2013.
Master Builders’ surveys as well anecdotes from house builders point to poor sentiment affecting purchasing decisions. Households remain sensitive to global woes, job insecurity and flat to falling house prices.
‘Hangovers’ from the global financial crisis created an increased propensity to save and reduce debt. This trend appears long lasting.  Confidence remains fragile. Although leading indicators of new home building are finally showing some – albeit nascent – signs of improvement, activity continues to languish around the bottom of the cycle.
Actual work done is expected to weaken further in the short term. Sales and enquiries are drying up, and profitability is under severe pressure. So it is no surprise that builders say they are looking to reduce employees and contractors.
Further RBA rate cuts are warranted, although the banks must fully pass on these rate reductions to home owners and not simply bolster their profits. Reviewing home loan eligibility requirements would also assist.
Forward indicators should improve during the latter part of 2012 and early 2013, with an improvement in work done beginning to flow through in 2013-14.  Nonetheless, the upswing will be from a low base. Dwelling starts declined by 11.5% to less than 140,000 dwelling units in 2011-12, after a 5% decline the previous year.
 
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Understanding the problems
 
A much better understanding of the underlying, structural or systematic problems is needed if there is to be any meaningful response to stimulate a sustainable recovery in the new housing market.
The first key challenge is to redress the undersupply of new housing by building more. This would, in turn, work to address the second key challenge, housing affordability.
Lack of supply, first and foremost
Economic analysis points to a substantial and increasing under supply of housing in Australia. Projections from the federal government’s National Housing Supply Council point to a current shortfall of 228,000 dwellings. Based on current policy settings, the council believes it will increase to 370,000 dwellings in 2016 and potentially 663,000 dwellings by 2031.
Federal government programs to improve the supply of affordable housing have been worthwhile, but do not address the fundamental constraints driving the broader supply problems.
The affordability issue just won’t go away
 
Even if a cyclical pick-up in demand works to underpin a recovery in Australia’s new housing sector, the nation will still have a serious underlying problem in terms of housing affordability.  Without a coordinated national policy response by all three levels of government, the problem will only worsen.
Global economic uncertainty has contributed to the current sluggish housing market conditions but is masking the true extent of the housing challenge.  Housing affordability remains problematic for many in the Australian community, in particular first-home buyers looking to gain a foothold in the housing market.
The decline in established house prices experienced in the immediate aftermath of the GFC (falling 5% in 2008-09) and the more recent falls coinciding with the ongoing sovereign debt crises in Europe and the United States (down 6% in the past two years) are not sustainable or politically desirable solutions to the longer-term structural challenges of housing affordability.
 
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Policy needs to focus on supply-side impediments
The short-term focus of governments often ignores longer term structural economic and social policy ramifications.  Reforms are required on both the supply and demand side of the market.
Demand-side drivers of house prices influencing housing affordability include: income, taxation, mortgage interest rates, employment and unemployment, consumer confidence, attitudes to household leverage (debt), population growth, the incidence and pattern of household formation, labour market and social changes, patterns of urbanisation, and changes in housing quality.
Supply-side drivers of house prices include: building and planning regulations, availability of adequate land supply, taxes and charges imposed on the housing supply chain, and labour market policies, practices and regulations.
Government failures must be corrected
The primary challenge for the federal, state, territory and local governments is to develop and implement a set of nationally co-ordinated policy settings to remove the supply-side impediments in the Australian housing market.
Immediate priorities must revolve around remedying government failure in areas such as regulation and regulatory processes – land supply and development approvals, as well as taxes and charges affecting residential housing supply and transfer.
Governments must reduce developer charges and taxes such as stamp duties, speed up development applications and increase land supply. These key measures would go a long way towards solving both housing undersupply and poor affordability.
Action to remove the barriers to housing supply would also assist in underpinning economic growth and jobs.
Master Builders Australia’s blueprint for reform
 
The federal, state, territory and local governments must act collectively through a radically reformed housing affordability agenda under the auspices of the Council of Australian Government.  This reform agenda must include accountability for delivering housing supply and housing affordability policy outcomes.
Master Builders wants to see the setting of competitive benchmarks for the respective state, territory and local government jurisdictions. Under these benchmarks, the federal government commits to pay competitive, efficiency payments to the best-performing state, territory and local governments delivering superior outcomes against rigorous and transparent performance criteria.
Key performance metrics can include: adequate supply of imminently ‘releasable’ land, streamlined building approvals processes, agreed ‘master plans’ covering urban and regional infrastructure plans and urban consolidation, adherence to the Building Code of Australia, and removal of state and local government variations, and reforms to infrastructure (also known as ‘developer’) charges.
A plea for action
Australia desperately needs a long and strong phase of residential building. We have been underbuilding for nearly a decade.
The well-documented supply-side impediments and inefficiencies need to be addressed urgently, or a pick-up in housing demand will simply run into these constraints. This will force up new house prices, making established houses more attractive and forcing people to chase existing stock – thereby sowing the seeds for the end of the new house building upturn.
Surely this should be enough incentive for governments to work together to agree on a set of reforms to address key issues such as the length and complexity of the planning process, issues related to the provision and funding of infrastructure, and other challenges related to infill development.
If successfully resolved, this would ensure new residential building and the industry that provides it, is able to effectively respond to changes in housing demand.
In the recent past, governments have made some small progress in addressing these concerns, but there is a long way to go if we are to fix supply-side rigidities that bedevil the nation’s housing and residential building markets.
Peter Jones is chief economist for <a target="_blank" href="https://www.masterbuilders.com.au/">Master Builders Australia.</a>
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A multi-faceted approach needed to fix new housing sector

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Melbourne-based home-building group Metricon Homes was Australia’s largest builder for the second year in a row, according to the HIA housing 100 report.
The big mover was Hotondo Homes, which jumped from position 20 to position eight on the list, with its number of home build starts increasing from 879 in the 2010-11 financial year to 1,463 in the 2011-12 financial year.
Metricon Homes started construction of 2,821 dwellings in the last financial year, all of which were detached houses in Victoria, NSW, Queensland or South Australia.
The company was followed by Alcock/Brown-Neaves Group, starting construction on 2,736 dwellings in WA and Victoria.
In third place was WA builder BGC Australia, which started 2,692 homes.
Australia’s largest multi-unit builder was Hickory Developments Pty Ltd for the third year running, with 2,163 starts. In overall rankings it moved up one place to number four.
The HIA report ranks the nation’s top 100 residential builders based on the number of homes started each year.
The report found the total number of starts by the top 100 builders fell by 7.3% to 48,130 their lowest level in 15 years.
“This result is consistent with the overall experience of the industry in 2011-12 where new home building conditions weakened considerably across Australia,” says HIA’s Dr Harley Dale.
The number of houses built by the largest 100 builders fell 11% from 40,138 to 35,909. The number of units built grew 4% from 11,720 to 12,221.
The largest 100 builders represented 35% of Australia’s housing starts in the 2011-12 financial year, up slightly from 33% in 2010-11, but below the historical average of 36%.
“The Housing 100 and the entire industry can deliver, and indeed Australia's residents have the requirement for, a considerably higher level of housing starts than has been evident over the last couple of years,” says Dale.
“Within an environment of subdued demand conditions, both unilateral and cooperative policy reform could generate a much healthier year for new home building in 2012-13.
"Sadly, evidence of the will to execute such policy action remains far slimmer than Australia requires,” Dale says.
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Metricon Australia's largest home builder for second year running: HIA

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Last week Property Bloom was offered a few development application and construction certificate approved dual-occupancy sites. They are in a town where dual occupancy sites are extremely hard to find right now. This town’s median price has been growing steadily as a result of investor activity increasing over the past 24 months as people are attracted to the high rents being achieved due to an undersupply of housing.
If there is a two-speed economy, this Hunter town is in the top speed category.
As I spoke to the builder offering me these sites (off market), I was running the figures in my spreadsheet.  The builder had a set price for the land and the building costs.  I jotted down the costs for the three sites, and then went to work comparing them with other dual-occupancy developments we had recently completed in the town.
Usually Property Bloom’s first aim is to achieve a high level of equity from a development for our clients. Then we look at the yield and strive for 7.5% for a dual occupancy, higher on other types of development.  Dual occupancy means building two dwellings on one lot.  We can usually achieve a good amount of equity by sourcing the land and building two villas. The villas can be attached and therefore part of a duplex or they can be freestanding.  A dual-occupancy project may typically take 12-18 months to complete (usually depending on the council processing time).
Looking at the expected equity outcome on these sites we could see it was a little low. But the real advantage in these deals was time and money; the fact that we could start building immediately and the price was fixed.
There would be no contingency required, and the builder is essentially taking up all the risk. Even hitting rock was including in the fixed, turnkey price.  Turnkey means that all landscaping, driveways, letterboxes, clotheslines, etc, is included, so you can turn the key and move in.
The other important factor was that the costs for the development application and construction certificate were included, even subdivision was included.  So all fees and charges had been paid for. I estimated there was at least $15,000 in this.  We could start building immediately.
The icing on the cake was in the terms. This builder was structuring the drawdown schedule for us so that only 10% of the build cost was paid by the time the slabs were laid and 90% on completion.
This is where my clients could save some serious holding costs.
Normally there would be five draw downs during the building works, typically at slab 20%, frames and trusses 20%, brickwork and roof 25%, interior linings/mould out 25% and completion 10%.  With 90% of the cost being paid on completion, clients will save thousands of dollars in holding costs.
If we only looked at how much equity we can create from a development, we would have passed on these opportunities, but when we look at the other valuable advantages of getting into this market quickly, high depreciation benefits, high yields and low risk then these development opportunities are attractive.
A development you can turn over quickly will allow you to move onto the next one.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

Saving time is saving money in property development

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Television’s architecture darling Kevin McCloud is doing the interview circuit here in Australia to promote his upcoming appearance at Melbourne’s Grand Designs Live running this weekend (September 21-23), but he hasn’t tweeted since April 19.
<a href="https://www.propertyobserver.com.au/https://twitter.com/Kevin_McCloud/status/193246510379573248" target="_blank"><img src="/images/stories/2012/09/mccloudtweet.jpg"></a>
He had been active over late 2010 and 2011 but somewhere along the interest his interest in the social media platform waned.
He joined in October 2010, “partly under duress”, as someone was impersonating him.
Grand Designs Live is billed as a “home show like no other”. The expo is running in Sydney and Melbourne, but McCloud will only be appearing in Melbourne.
The live show has been running an active Twitter account with a strong emphasis on Kevin McCloud.
<a href="https://twitter.com/GDLive_Aus" target="_blank"><img src="/images/stories/2012/09/grandtweet.jpg"></a>
He will be speaking alongside Peter Maddison, an Australian architect, who will be hosting the Australian remake of McCloud’s popular home-building television show Grand Designs.
Staff at North Melbourne cafe Twenty&amp;Six Espresso were gushing when McCloud visited their establishment.
<a href="https://twitter.com/TwentyandSix" target="_blank"><img src="/images/stories/2012/09/twentysixtweet.jpg"></a>
Peter Maddison hasn’t tweeted since June  having run his account primarily to spruik the local TV show. He tweeted 48 times between October 2010 and June this year.
<a href="https://twitter.com/P_Maddison_GDA" target="_blank"><img src="/images/stories/2012/09/madisontweet.jpg"></a>
 
The Lifestyle Channel has been posting sneak peak previews for its upcoming October season of Grand Designs, which will include <a href="https://www.youtube.com/watch?v=e3I9fIGIMl4&amp;feature=youtu.be&amp;noredirect=1" target="_blank">Mansfield</a> and <a href="https://www.youtube.com/watch?v=3HQALjVSQCs&amp;noredirect=1" target="_blank">Balnarring</a>.
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