Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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GUEST OBSERVATION
A poster in the head office of a state planning agency claims: “Highest Housing Approvals in a decade: Keeping homes more affordable”. Indeed, the <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank">latest figures</a> show national housing approvals rose 16% between June 2013 and 2014. Given ongoing concern about housing affordability and supply in Australia, this sounds like good news. But that assumes increasing supply will fix affordability.
Some people liken houses to bananas. When the supply of bananas drops, prices rise. The Property Council of Australia has called this <a href="https://www.propertyoz.com.au/library/MR%20RDC%2007%20Banana_nomics%20housing.pdf" target="_blank">“banana-nomics”</a>. In 2007 it sent plastic bananas to state and federal MPs with a crib sheet on housing affordability. Recalling Cyclone Larry, which devastated fruit farms in Northern Queensland, its <a href="https://www.propertyoz.com.au/Article/NewsDetail.aspx?p=56&amp;mid=302" target="_blank">message</a> was simple – when there is a shortage of bananas, the price goes up. With housing, the disaster wasn’t a cyclone but rather “excessive delays”, “inconsistent planning” and inadequate land supply.
Banana-nomics does seem to explain the behaviour of fruit markets. When the next cyclone hit Northern Queensland (Yasi in February 2011) the price of bananas again <a href="https://www.woolworths.com.au/wps/wcm/connect/website/woolworths/about+us/woolworths-news/banana+prices+following+cyclone+yasi" target="_blank">skyrocketed</a> because of a shortage of supply. As predicted, when banana supply recovered (doubling from 200,000 cartons in week 44 of 2011 to 400,000 cartons in week 48 of 2011) net prices <a href="https://abgc.org.au/article-title-3/" target="_blank">reduced</a> for farmers by 61%.
But by way of contrast, between 2010/11 and 2013/14 when Sydney dwelling completions doubled from 14,000 to 28,000 dwellings, housing prices went up by 21%. In other words, a “just make more” strategy will fix the problem of expensive bananas, but not expensive houses.
Houses are not like bananas
Here are some reasons why.
<ul>
<li>Prices for housing are set by the total housing market, not just the 1-2% that are built every year.</li>
<li>When the price of bananas goes up, consumption goes down, and vice versa. Not so with housing markets – perversely, demand for houses in the short term often increases along with prices, due to expectations that prices will continue to rise and the fact that we all need somewhere to live. Aspiring homeowners and investors want to get into the market before it lifts further, both to minimise housing payments and to enjoy capital gains.</li>
<li>A rise in house prices is often accompanied by a decrease in interest rates. Home purchasers focus on the repayments they have to make and hence are not discouraged by rising prices, in some cases because they see their repayments reduce because of interest rate decreases.</li>
</ul>
 
Increasing housing supply is very important and price increases over the last few years would have been more severe if we hadn’t been able to double the supply of new stock in Sydney. The boom in inner-city apartments in Brisbane, Melbourne and Sydney is also leading to rents decreasing in some suburbs. And in some suburbs if we keep building high rise apartments, prices will correct.
But a simple policy of “let’s just build more housing” is not enough to meet the pressures falling on the shoulders of low and moderate income households.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
The problem with industry-led policy
Industry <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Affordable_housing_2013/Submissions" target="_blank">submissions</a> to the pending Senate inquiry into housing affordability don’t seem to get this point. They continue to emphasise a supply-based response to the problem of housing affordability, calling for planning reform as the way to achieve this.
Where specific reforms have demonstrated impacts on housing supply, there are good arguments for wider replication.
One example is permitting accessory dwellings (a.k.a granny flats) as of right, on suburban lots in NSW. This enormously popular measure has resulted in a notable spike in dwelling approvals (around 1000 per year since its introduction in late 2009). Certainty has enabled manufacturers to prefabricate designs, bringing down costs and helping diversify and intensify housing options in existing neighbourhoods.
Another recent reform in NSW greenfield growth centres codifies integrated townhouse and other low-rise medium-density designs in new-release areas, over-riding the stagnant mono-zoning that has imprisoned Australian suburbia since the 1970s.
But the objective behind these and other planning strategies to increase housing supply – particularly through new medium- and high-density homes near public transport – is not really about lowering house prices. Rather, the policies aim to transform and expand the existing housing stock in response to changing demand.
Structural issues remain
More is needed to address the structural affordability barriers faced by low and moderate income earners. These barriers reflect unprecedented price rises enabled by financial deregulation in the 1980s, falling interest rates and rising household incomes in the 1990s, and, in the latter period, increased capacity for home owners to leverage this wealth in a competitive housing market.
Despite this demand-fuelled price inflation, Australia has generally avoided the speculative over-building that infected the US, Ireland and Spain before the global financial crisis. That’s a good thing, since in those countries oversupply weakened the housing industry overall and has undermined economic recovery. Worse, the crash didn’t correct affordability problems facing low and moderate income earners (hit particularly hard by the crisis).
Australia’s housing and development industry have (in general) moderated output to match changing market trends. That’s why we see increased housing production at the same time as rising prices.
Rather than pretending that more apartments in the inner city and greenfield estates on the fringe will correct the affordability barriers faced by low and moderate income earners, we need a commitment to increasing the supply of dedicated affordable housing – including approaches like the aborted <a href="https://theconversation.com/rental-affordability-scheme-fears-are-misplaced-24338">National Rental Affordable Housing Scheme</a>, and serious capital funding for social housing. Several of the submissions to the parliamentary inquiry call for these measures, including submissions by the Property Council and other industry representatives.
However, without widespread provisions to ensure social, rental and low-cost home purchase options are incorporated within major housing developments, particularly developments involving government land, our deepening affordability problems won’t go away.
Looking at recent projects such as Barangaroo in Sydney where affordable housing requirements are only 2.5% of total residential floorspace (and the developer is now trying to shift them off-site) provides reasons not to be optimistic. However, the public mood could be changing about this issue.
John Howard once said no one was going to complain about their house prices going up. Many parents in capital cities in Australia are realising that instead of using this housing windfall to fund their retirement, they are now going to have to use it to fund the housing and careers of their children. They are not happy about this. Their children are just as angry. The family coalition is looking for someone to blame. They want some action: not just glib slogans on posters or banana-nomics.
Nicole Gurran is associate professor at <a href="https://sydney.edu.au/" target="_blank">University of Sydney</a>.
Peter Phibbs is chair of urban planning and policy at <a href="https://sydney.edu.au/" target="_blank">University of Sydney</a>.
Nicole Gurran has received funding from the Australian and Housing Research Institute and the Australian Research Council.
Peter Phibbs has received funding from AHURI on related research.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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It's bananas! Increasing supply isn't enough to satisfy hunger for affordable housing

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I set off at 6.15am this morning for my development site inspections. It's a two hour drive from Sydney to the Hunter Region where Property Bloom develops property for our clients. 
After my first four inspections I stopped to eat my packed lunch and found myself reflecting on just how lucky I was. I didn't feel like I was working, not like the way I worked all through my 20s and  30s. That was fierce, career ladder climbing type of work where you had to continually be proving yourself and dealing with office politics. Very stressful but that's what we had been taught to do. Work hard and earn your success.  
Since starting my own property development project management service over 12 years ago, I have actually been living my dream. I do what I love and it's flexible for my family. But it wasn't all beer and skittles. There is the unknown you need to contest with when starting your own business. Forget about the safety net of a salary, no holiday pay and no superannuation contributions covered by others. You are literally on your own and it's sink or swim.
My personal motivation to make it work was my kids and our future. I didn't want to be in a situation like my parents with no savings and relying on the government pension to live. It's sad to work hard all your life and then be at the mercy of others.
My goal is to build enough wealth to support my family, have a bloody good time doing so and retire young. But, as I'm doing what I love, retirement is not going to be any time soon.
Over time, I've developed a system that means my business can run efficiently without my daily direction because I have built up trustworthy relationships and have great staff.  I am focussed on refining our property development process and to become more and more efficient in our development management.
Today during an interview with a well regarded, national financial newspaper I was asked - "why develop property?"
"Why wouldn't you?" is what I wanted to say, but then I remembered that whilst most property investors understand that buy and hold is a good idea, to buy, add value and hold is an even better investment strategy. Adding value doesn't have to mean spending money immediately.
I explained to the journalist that as a starting point, be mindful that when you buy an investment, look for property that can be developed either now or down the track. You may find two properties with similar price points but one could have superior development potential. It might have a larger land component, it may have subdivision potential, it may have opportunity to improve the floor plan within the same area and it may have some good growth potential based on future government plans, infrastructure upgrades and potential policy changes. 
Developing property just makes sense. There are so many different development strategies you can use and that's the fun bit, working out what the best strategy is for you. 
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Why every investor should consider property development

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GUEST OBSERVATION
A<a href="/expert-insights/investing/australias-top-25-most-expensive-suburbs-rp-data"> recent RP Data report</a> stated the number of suburbs across Australia with a median price of at least $1 million has increased by more than 33% in 12 months - and it looked as though they were suggesting this is a good thing.
Make no mistake - this revelation of 417 suburbs should sound warning bells for the 'average Australian'. Our state and federal governments rabbit on about the need for affordable housing - since when did house prices of $1 million fit that bill?
As you might expect, many of the suburbs that made the list were in the major capitals - Sydney, Melbourne and Perth. The combined population of these three cities is approx 11 million, or 46% of Australia's total.
So let's do the math for a 35 year old working Sydney couple with one child. They're buying a home in a Sydney suburb for that median price of $1 million and they don't want to pay lenders mortgage insurance (LMI).
Suppose they met and fell in love eight years ago and started saving for their 'average home' pretty soon after. Our 'model couple' married, had a baby and have been super diligent too - saving $250,000 i n that time. That's an average of $31,000 a year for eight years.
Nice one! Who do you know that can do that? Not many? Mmmm - thought so.
Let's stop here for a minute: what buying a home for $1 million plus is doing is sucking the life out of people who are in the prime of their life, just so they can buy an average home in one of those 417 suburbs.
Out of that $250,000 deposit, they need to allow:
<ul>
<li>A little over $40,800 for stamp duty + associated fees in Sydney</li>
<li>Around $3200 for their legals and conveyancing</li>
<li>And $500 or so for their bank fees</li>
</ul>
By the time they add removal costs and a few other incidentals, they've just burned $50,000. Leaving this lovely couple $200,000 to put towards the purchase: their deposit. This means that they need an $800,000 mortgage. No problem, book that appointment with your friendly bank manager or mortgage adviser.
Oh dear ... do they qualify for an $800,000 loan? A quick calculation suggests that with the current 'super low interest rates' on offer, our couple with one child, two cars and a car loan only need to earn a combined $130,000 a year to be approved for this loan.
For this exercise I'll assume a split of: $85,000 for the breadwinner and $45,000 for the person who most carries household and child responsibilities. These two incomes deliver $64,000 and $38,250 after tax. A quick monthly calculation tells the real story: they have $5,324 &amp; $3,189 net monthly income after tax.
I t's time to celebrate - your loan is approved!
But now it's crunch time people! At just 4.69% (the super low rate currently on offer) the $800,000 loan to purchase that average home will cost our average family $4,145 per month.
That's monthly until they reach 65 years of age. $4,145 a month for the rest of their working lives! Almost 49% of their combined net income goes towards making their minimum loan repayments. And if our friends can't pay it off faster, they will have paid more than $1,000,000 in bank interest during t hat time.
What will happen though when their interest rate increases to just 6.6%? That monthly repayment jumps by a grand to $5,157 - ouch. I think you can work the rest of this math exercise out?
So our average couple bought an average home in one of 417 average suburbs with an above average deposit and above average sized mortgage...
And pretty much gave up their opportunity to become an average family of two adults and two kids.
Listen up people. Unless he's Walter White they can't ever afford to have baby number two.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
The mysterious world of finance can be honed down to just three questions:
<ol>
<li>Can you pay back the loan?</li>
<li>Will you pay back the loan?</li>
<li>If it goes pear shaped, what can we sell?</li>
</ol>
If you fail to meet any one of the three criteria questions you will not be approved for finance.
Here's what hurts the feelings of so many people: the primary reason a couple wants to purchase one of these million dollar homes is to keep up appearances - I see it all the time.
Shelling out almost half your net income each month for a roof over your head is not the smartest move for most couples. Lose your job, become ill or have an accident that stops you from working and you're in trouble. This kind of financial stress kills even the strongest relationships.
People who need to keep up appearances aren't thinking about their financial future at all. They're all about 'I want it and I want it now'. Dangerous ground indeed - especially when interest rates increase in 2015 and beyond.
Many a credit rating (CRAA File) has been severely damaged over the years by this scenario and the resultant relationship breakdown.
It's articles like that RP Data Report that feed ego driven decisions and encourage people to believe that it's a 'fantastic' idea to purchase these types of properties.
Because we all know the mantra: "Property values always double every seven to 10 years."
Yeah right! Pigs might fly too.
It kills me to know that so many people fall into the trap of buying the wrong type of property, when the investors I'm working with are buying their first, second and third investments just weeks after getting started.
It's time for a reality check.
Here's a sample of the ‘no go’ suburbs from the RP Data list:
 <img src="/images/2014/08/21/rp-data-aug-21-two.png">
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
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klee-LzAEhB2j7n

Are million dollar suburbs destroying the 'average' Australian family?

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The Singaporean developer Fig Tree Holdings has purchased the Duke of Kent hotel  development site in central Melbourne.
The $14.08 million sale <a href="https://www.realcommercial.com.au/property-land+development-vic-melbourne-501212843" target="_blank">was through DTZ</a> by private investors George Yankos, Antigone Yankos and Lambros Yankos.
Figtree Holdings Ltd is incorporated in Singapore with Danny Siaw its executive chairman.
Siaw and another of its board members have had tertiary education in Australia. Siaw started his career in November 1990 as a site engineer with Civil &amp; Civic Pty Ltd. He holds a Bachelor of Building from the University of Melbourne.
The 503 square metre Melbourne CBD site is at 293 to 299 LaTrobe Street with frontages to Sutherland Street and Flanigan Lane.
It came with a preliminary development scheme for 322 apartments and ground floor retail.
<img src="/images/2014/08/28/1.jpg" alt="" style="display: block; margin-left: auto; margin-right: auto;">
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jchancellor-FAypfDUnLy

Melbourne's Duke of Kent hotel sells to Singaporean developer

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You don’t need to have an economics PhD or be a 30 year veteran of the Melbourne market to understand that there is some heat in the market right now leading into our main spring markets.
In the north at <a href="/news">Northcote</a>, by the bay from <a href="/news">Port Melbourne</a> to <a id="mfa48" class="st_tag internal_tag" href="/news" target="_blank" title="Posts tagged with Brighton" rel="tag">Brighton</a>, in <a href="/news">Bentleigh</a>, in the east from <a href="/news">Toorak </a>to <a href="/news">Kew</a>, through to outer east areas of <a href="/news">Mont Albert North</a> – wherever we went in our million dollar plus auction bidding for clients or reporting for James Marketnews, we found large numbers of bidders on market-perceived “good” homes.
Bidder depth (the key measurement to market pricing) shows an underlying market strength, perhaps on even larger numbers than before our winter break. And when you combine this statistic with our James million dollar plus clearance rate of 70%, you can clearly see that the market is again being super selective, super picky and only really going for the ones it considers “market” value or a really good home. If the clearance rate number pushes into the high 70s and stays there, and auction bidder depth stays above two over the next few weeks, then the market direction is clear.
Right now we are in what we call the early spring market which lasts until the Grand Final (c’mon Pies hang in there). Then we have the very powerful mid-spring market between Grand Final and the Melbourne Cup and we finish with the late spring or pre-Christmas market from early November to mid December. Next week is the last of the new stock early spring weeks (with only four weeks to run an auction campaign before Grand Final). Then you have a window of one large new stock week after the Grand Final that will give four weeks to run an auction campaign before the Melbourne Cup. And finally there are four (hopefully) solid stock weeks in November. That adds up to six key new stock weeks between this weekend and till when the market shuts down till February 2015.
Our balancing comments are, one, we are seeing a different bidder depth on deals over $4 million right now and, two, this early spring market can be a bit like our early February market. It can, and often does, perform slightly better than the higher volume middle and late spring markets as demand spreads across a wider number of homes. Having said that, make no mistake – this weekend’s figures are very, very clear on their messages.
We may sound like a broken record, but those two clear messages, those two crystal clear market pointers are
<ol>
<li>
Beware the wounded underbidder  For each of the homes we reported on or purchased, there are still around four bidders out there in the market looking for a home varying in price between $1.2 million to $3.3 million. To put it another way, for every dozen homes there is still a pool of 40 frustrated buyers who will go more aggressively, with more money, when they are competing against you on a home of similar characteristics next week or next month. It’s hard to explain to our potential clients that your “enemy” right now is, not always the agent, it is in August more often than not, the other buyer. But as we can see with our buying success rate around 90% this year, it is not always about the most money, often<a href="/expert-insights/investing/winning-at-auction-isnt-amount-having-the-most-money-its-about-strategy"> it is about the best strategy that wins the market priced home</a>. 
</li>
<li>
Not every home flew out the door  Whilst the majority of our activity has been off market and pre-auction, expressions of interest or even “stales” in the last month (we have had not just a record August, but our busiest month ever), you still need to be smart on price and strategy.
</li>
</ol>
<ul>
<li>
Price: Don’t overpay the market based on your fear. Stock levels are good, if you know where to look. 
</li>
<li>
Strategy: You can’t assume you are the only bidder. Clearly on the sample you may not be. However you also don’t want to assume you are competing against many, because in a smokes and mirrors situation (e.g. away from public bidding), on an overpriced home, you may be Robinson Crusoe when it comes to putting in an offer.
</li>
</ul>
This weekend is a pointer. Yes it’s only one week and it is early days yet, but nonetheless it’s a very solid pointer to spring and it is sending a very clear message that if conditions are perceived to remain as they are perceived now, then the market is going in one clear direction only.
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maljames-vHwm28JUAa

This weekend is a big pointer to the strength of the Melbourne market

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Global property group Lend Lease has delivered a 50% rise in annual profit after tax to $822 million in large part due to its sale of the UK Bluewater Shopping Centre.
<a href="/expert-insights/investing/lend-leases-bluewater-shopping-centre-kent-sale-secures-4-yield">The Bluewater sale</a> contributed about $485 million to profits.
However its profit after tax fall to $446 million, down 12% on the prior year with its Australian construction business profits down along with profits from its Asian division.
Chief executive officer Steve McCann said its net profit after tax was set for between $604 million to $622 million for FY15.
Its development business saw improved residential activity with residential land lot and built-form settlements up 32%. 
It achieved 100% pre sales for its first Barangaroo residential apartment blocks, Anadara and Alexander.
Its group chief financial officer, Tony Lombardo said over the past year Lend Lease had invested significant capital into its development pipeline, with 3,000 apartments now under construction across Australia and the UK. 
"The apartments will progressively complete in fiscal years 2015, 2016 and 2017, and are a material contributor to our circa $2.5 billion of pre sold revenue," he said.
The construction business results for the year of $104.3 million were lower than the prior year in part due to the impact from the fire at Barangaroo South in March this year which cost $6.2 million (post-tax). 
Photo courtesy of Wikimedia Commons.
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Once in a Bluewater as Lend Lease secures 50% profit boost

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Charter Hall has booked an $82 million net profit for 2014, up almost 50% on the $54 million previous result.
Meanwhile Kerry Roxburgh is set to retire as a director and chairman of Charter Hall Group at the conclusion of the 12 November annual general meeting.
He has been a non-executive director since April 2005. 
David Clarke, who was appointed a non-executive director in April this year, is the chairman-elect. He is a former Chief Executive Officer of Investec Bank (Australia) Limited. 
Charter Hall has over $11.5 billion of funds under management across the office, retail and industrial sectors with offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
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David Clarke takes chair from Kerry Roxburgh at Charter Hall

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A new Hungry Jacks property, north of Adelaide, has sold at auction for $3.5 million to a local private investor.
The Savills sale reflected a 5.4% yield.
The Playford Alive town centre property has a building area of 184 square metre on its 1,971 square metre site.
There is a 10-year lease from June 2014 with three further five-year options.
The property sold through Peter Isaksson and Rino Carpinelli of Savills South Australia on behalf of Adelaide-based developer GIC Australia Pty Ltd.
Playford Alive is 30 kilometres north of the Adelaide CBD, one of Australia’s most significant urban renewal projects.
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Adelaide Hungry Jacks sells at 5.4% yield

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A three storey Victorian-era building at 105 Little Bourke Street fetched $3.5 million, at a record 2.6% yield for Melbourne's Chinatown.
It was a Chinatown record of $16,338 a square metre through CBRE.
A mainland Chinese investor purchased <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-501210659" target="_blank">the property</a> which has been occupied by a Japanese restaurant.
There were 18 contracts issued to potential buyers in the tender for the 118 square metre offering.
<img src="/images/2014/08/27/melbourne-aug-27-two.jpg" alt="">
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Record Melbourne Chinatown sale to mainland Chinese buyer

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Jerry Schwartz will own the new Sofitel Sydney Darling Park when it is finished in 2017, the ­largest new hotel in Sydney for more than two decades.
Developed by Lend Lease, and operated by Accor, the Schwartz Family Company is paying around $360 million, which is said to reflect an initial yield of 5.5%.
The Schwartz family has been tipped by the SMH to fund the $360 million purchase partially through the sale of his Holiday Inn at Sydney's Mascot airport.
Property Observer gathers the decisions followed a review the hotel portfolio, which includes recently acquired resorts in the Hunter Valley.
The Frasers group paid $202 million for the Sydney Sofitel Wentworth, while buyers are also looking at the Sheraton on the Park, with a price tag of around $465 million.
Schwartz say he will push for a helipad.
“Helipads are available in cities like New York and London, and it will significantly benefit Sydney’s business and convention profile to have a helipad developed at Darling Harbour,” he told Fairfax Media.
The deal was brokered by Michael Simpson of Savills. Michael Simpson, the Savills managing director hotels Australia and New Zealand, said the luxury hotel market remains highly attractive and, with Sydney’s rising prominence as a global city required quality 5 star hotels.
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