<a href="https://www.apartments.com.au/developers/jl-place">JL PLACE</a>'s Veil Brighton is approaching its final months of construction, with the nine-townhouse development at 17 Rooding Street expected to complete in December 2026.

The milestone is bringing the boutique project closer to becoming a finished part of the <a href="https://www.apartments.com.au/developments/brighton-vic-3186">Brighton</a> streetscape, with much of Brighton's everyday amenity within a short walk.

Palace Cinema, Coles Supermarket and North Brighton Station are all around five minutes on foot from <a href="https://www.apartments.com.au/new-townhouses/veil-brighton-17-rooding-street-brighton-vic-3186">Veil</a>, alongside numerous cafés, restaurants and bars. The station provides a direct rail connection toward Melbourne's CBD, while Bay Street and the wider Brighton retail and dining network add to the range of services accessible without relying on a car for every trip.

"The location was fundamental to the project. Brighton is an established suburb where many buyers already have strong connections to the area and want to remain close to the people, places and amenities that form part of their everyday life," the developer said.

"Veil sits in a highly walkable part of Brighton, with a Walk Score of 90/100."

For buyers looking to right-size within Bayside, that level of walkability adds to the appeal of a more manageable way of living. Everyday shopping, dining, entertainment and public transport can be accessed without relying on the car for every trip, while residents remain connected to the places and routines that make Brighton familiar. It allows buyers to simplify day-to-day life without giving up the convenience, amenity and connections they already value.

[smartcode_project:default project_id=7877 project_image_fid=355754]

As completion approaches, the architecture, landscaping and material palette are progressively becoming visible on site, giving prospective purchasers a clearer view of the finished development beyond its plans and renders.

Veil comprises nine townhouses, predominantly three-bedroom homes with between 2.5 and 3.5 bathrooms, two car spaces and, depending on the residence, study areas and private outdoor space. Selected homes include a bedroom on the ground floor.

Veil occupies a middle ground between detached housing and apartment living, retaining private gardens, storage and secure parking within a more manageable residential format.

<a href="https://www.apartments.com.au/architects/schmidt-pang-architects">Schmidt &amp; Pang</a> designed the architecture around natural light, ventilation, privacy and practical use of space. From Rooding Street, the façade has been composed to read as a cohesive residential building rather than nine individual townhouses, with landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> integrated throughout the site.

Inside, natural stone, oak flooring, integrated joinery and brushed nickel finishes establish a restrained material palette, while kitchens include Miele appliances and substantial storage such as pantries. Walk-in robes and dedicated study spaces have also been incorporated across the collection.

[smartcode_project:default project_id=7877 project_image_fid=355852]

The project team said the planning of the homes has been informed by how the spaces function for both daily routines and larger gatherings.

"Our new homes owners at Veil have enjoyed the attention to detail in creating efficient layouts that use every space well. Hosting Christmas lunch and large family gatherings is an ease when care is taken to consider how people really live and entertain."

Private landscaped gardens extend the living spaces outdoors, while secure basement parking and bicycle parking are provided below. The homes have also been designed to achieve a 7-star energy rating, supported by double glazing, high-quality insulation, natural ventilation, LED lighting, water tanks and water-efficient fittings. Each residence is backed by a 10-year building guarantee.

Veil is being built by <a href="https://www.apartments.com.au/builders/jeniton">Jeniton</a>.&nbsp;Limited-time stamp duty savings are also currently available on selected purchases at Veil, adding another consideration as the project moves toward completion.

[smartcode_project_cta:default project_id=7877]

Joel Robinson

Veil Brighton nears completion in one of the suburb's most walkable pockets

<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a> has recorded 134 sales worth just over $400 million in two months of pre-release activity at The Riversdale, as the developer brings its $750 million South Brisbane riverfront project to the broader market.

The sales represent more than 60 per cent of the project's 213 apartments, with Mosaic reporting the majority of purchasers have been local owner-occupiers and downsizers.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale</a> will rise 39 storeys from its north-facing site at 91 Montague Road, delivering a mix of two, three and four-bedroom apartments alongside a collection of Mosaic's premium Masterpiece Series Sky Homes.

[smartcode_project:default project_id=151614 project_image_fid=371872]

The early buyer response comes ahead of the wider evolution of the northern end of Montague Road, where The Riversdale will be one of the first major residential projects delivered within an emerging riverfront precinct.

Directly adjoining the development is a planned 7.1-hectare mixed-use precinct, set to introduce new residences, parkland and public realm along the river's edge. The Riversdale's position directly on the Brisbane River gives it a relationship with the waterfront that Mosaic says cannot be replicated by future buildings within the precinct.

The site is also the result of a years-long pursuit by Mosaic. The developer first earmarked the <a href="https://www.apartments.com.au/developments/south-brisbane-qld-4101">South Brisbane</a> property in 2018, reflecting what Founder and Managing Director Brook Monahan has described as a deliberately patient approach to acquiring development sites.

[smartcode_project:default project_id=151614 project_image_fid=372083]

"We aren't opportunistic," Monahan previously told Apartments.com.au.

"Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau Proberts</a>, The Riversdale has been shaped around the qualities of the riverfront site, with apartments oriented to capture northern light and uninterrupted Brisbane River views.

Generous floorplans and expansive balconies extend the living spaces towards the river, while natural materials and a restrained interior palette have been selected with longevity in mind.

[smartcode_project:default project_id=151614 project_image_fid=371890]

Residents will have access to a level of amenity more commonly associated with world-class hotels and private members' clubs, with almost 3,000 sqm dedicated to wellness, connection, recreation and everyday convenience.

At ground level is a business lounge, private meeting rooms and dedicated workspaces. Mid-tower is a wellness sanctuary featuring magnesium hot and cold plunge pools, sauna, steam room, infrared therapy facilities, a Pilates and yoga studio, and a commercial-grade gymnasium.

Crowning The Riversdale is a rooftop featuring a 35-metre swimming pool with lap lane and spa, outdoor dining and seating terraces, firepit lounges and views of the city, river and Mount Coot-tha.

A private members' club-inspired retreat offers private dining rooms, a whisky lounge, media rooms and immersive entertainment experiences. Completing the amenity offering are two hotel-style guest suites and a resident-exclusive electric vehicle fleet and car-share program.

[smartcode_project:default project_id=151614 project_image_fid=371877]

The Riversdale sits at the northern end of Montague Road between South Bank and West End, around 1.3 kilometres from the Brisbane CBD, providing access to the city's major cultural, dining and recreation precincts.

It becomes Mosaic's largest Brisbane project to date and adds to a pipeline already under construction across the city.

In Brisbane, the developer is currently delivering The Bedford and The Carter at Kangaroo Point, both of which are approaching sell-out, with a further four projects being delivered on the Gold Coast. Mosaic has completed more than $2 billion in projects since 2012 and has a further development pipeline exceeding $2 billion across South East Queensland.

Early works are underway at The Riversdale, which will be delivered by Mosaic's in-house construction division. Completion is anticipated in late 2029, with remaining apartments priced from $1.98 million.

[smartcode_project_cta:default project_id=151614]

Mosaic records more than $400m in two months at South Brisbane's The Riversdale

Lender, fund manager and apartment developer Princeton has completed <a href="https://www.apartments.com.au/buildings/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, the first new apartment development in South Sydney to provide its owners with a 10-year Latent Defects Insurance policy, the most comprehensive insurance available for a new apartment building.

The policy has been a key consideration for prospective purchasers of the 58 one-, two-, and three-bedroom apartments, strategically located between&nbsp;Rockdale Plaza and Rockdale Station.&nbsp;

Buyers have also been drawn to the fact that it is one of few new apartment developments delivered in the suburb in the last 10 years, and the only one located on Princes Highway to be set well back from the street to reduce noise. There's also a communal rooftop, a rarity in the suburb, complete barbecue facilities, landscaped seating areas, a children's play zone and herb gardens.

[smartcode_project:default project_id=136442 project_image_fid=374084]

Ray White Projects’ Matt Otway said buyer enquiry reflected the increasingly diverse and cosmopolitan population that has made Rockdale home.

“We’re seeing strong interest from a broad mix of buyers, including young professionals and people who have rented in Rockdale and the surrounding suburbs and now see Marque as an opportunity to buy a brand-new apartment in an area they already know,” Otway said.

“Proximity to the CBD and Sydney Airport is another key advantage particularly for buyers working in these locations who want the added convenience of living close by.”

Investors have also been attracted to the project, with rental yields of more than five per cent, which is considered a strong result for the Sydney market.

[smartcode_project:default project_id=136442 project_image_fid=374090]

Adding another layer to the buyer proposition is Marque's 10-year Latent Defects Insurance policy from Resilience Insurance, making it the only new apartment development in Rockdale to offer the cover.

The policy protects apartment owners against major structural and waterproofing defects for 10 years following completion, giving Marque purchasers cover until early 2036 at no additional cost.

The likelihood of defects emerging has also been mitigated through the Technical Inspection Service (TIS), which saw independent experts inspect the building at various stages throughout construction to identify potential issues during the build, rather than after the fact.

SDSS, which provided the TIS, consistently ranked the construction quality at Marque, undertaken by iCIRT-rated builder Coplex, among the best across its extensive portfolio of projects.

[smartcode_project:default project_id=136442 project_image_fid=374088]

Otway said the LDI had become a major drawcard for buyers, particularly given Rockdale has seen relatively little new apartment development over the past decade.

"Rockdale hasn't had a lot of new apartment buildings in the last decade, and has never had a project with 10-year defect insurance," Otway said.

"Marque presents a truly rare opportunity at an affordable price point, so well connected to the Sydney CBD."

One-bedroom apartments at Marque start from $735,000.

[smartcode_project_cta:default project_id=136442]

Marque Rockdale completes as South Sydney’s first apartments backed by 10-year defect insurance

Sydney developer <a href="https://www.apartments.com.au/developers/odus">ODUS Property Group</a> is continuing to expand its local Gold Coast development pipeline, filing plans for a new 40-storey tower in the Southport CBD.

Odus, which bought two luxury Main Beach projects, now La Mer and Le Reve, to make its move into the booming Gold Coast apartment market, has secured its third site. But it is tweaking the plans for a previously proposed 50-storey skyscraper, now seeking to deliver 40 storeys.

The project, dubbed <a href="https://www.apartments.com.au/new-apartments/80-marine-parade-74-80-marine-parade-southport-qld-4215">80 Marine Parade</a>, sits on a prime&nbsp;2,032 sqm amalgamated corner site at 74–80 Marine Parade and 4 Welch Street, across the road from the Gold Coast Aquatic Centre. It will have unobstructed, never-to-be-built-out views to the east given its position opposite the Broadbwater Parklands.&nbsp;

The plans are for 316 apartments, ground-floor retail, and resort-style resident amenities. The project sits within Precinct 1 (Central Business District) of the Southport Priority Development Area, where high-density residential and commercial development is actively encouraged.

BGD, ran by Bayden Goddard and the architecture firm behind Le Reve, has revised the original concept plans, substantially reworking the built form. Basement parking has been replaced by an expanded podium designed to improve functionality while reducing the tower's overall visual impact.&nbsp;&nbsp;

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0f13d065-2cf5-45ec-aa17-1a03754d93d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%202.png?VersionId=.9QS2n7kBc_U3PyaI247uOyNSXIqnXSE" />

The tower rises above the eight-storey landscaped podium with a distinctive architectural language defined by sweeping arches, integrated greenery, bronze-toned glazing, and a sculptural rooftop crown.

The development will comprise 104 one-bedroom apartments, 208 two-bedroom apartments, and four four-bedroom penthouses across levels 9 to 36. Apartments are designed to accommodate both permanent residents and short-term accommodation within the same building.

A double-height lobby and reception will anchor the ground floor alongside a 23 sqm food and drink outlet, activating the Marine Parade frontage.

Parking will be accommodated within the podium, providing 288 vehicle spaces and 74 bicycle spaces, accessed from Welch Street.

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="d7528b91-2c47-4094-98b3-5eecbacc0041" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%20podium.png?VersionId=efF5oWs4T9PDvxJwJEDHu5kSQ5eE3IBy" />

Residents will have access to an extensive suite of amenities spread across multiple levels. A podium recreation deck will include a swimming pool, spas, sauna, steam room, cinema, residents' lounge and children's games room, while a second wellness level near the top of the building will feature a gym, co-working spaces, reading room, dining areas and communal kitchen. Extensive podium landscaping wraps the building to soften the built form and strengthen its interface with the surrounding streetscape.

The planning report notes the project responds directly to Southport's ongoing urban transformation.

"Consistent with much of Southport, the surrounding area is undergoing significant transition, with many older low-rise developments progressively being redeveloped for higher-intensity urban outcomes, as envisaged within Precinct 1."

It also states that the proposal "will contribute to a defined and legible eastern gateway to the Southport CBD, reinforcing the area's high-density urban character while maintaining a strong visual connection to the adjoining public open space network."

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0b9fdebd-4b35-400b-a287-6bd1cdbcdb1b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da.png?VersionId=4LG35XR5mfir7jvG2TShtQx.utMLYBxu" />

Located opposite the Broadwater Parklands, the site enjoys immediate access to the Gold Coast Aquatic Centre, Australia Fair Shopping Centre, TAFE Queensland Southport campus, the G:link light rail corridor and Southport's established commercial precinct. The location places future residents within one of the Gold Coast's fastest-evolving mixed-use centres, where numerous high-rise residential projects are reshaping the CBD skyline.

Odus is headed by development professionals Byron Sakha, Jarrod Younan and Sebastian Younan. The Younans also head family-owned builder Nazero Constructions, established in the 1960s.

They are currently delivering La Mer, 24 luxury apartments on Main Beach Parade, and Le&nbsp;Rêve, on the same street but on the prized beachfront side of the sought-after strip.

ODUS plans landmark 40-storey tower for Southport's Broadwater gateway

A boutique collection of just 10 residences could become the catalyst for the next phase of renewal along the southern end of Surfers Paradise Boulevard, with new plans laid for a mixed-use tower designed to transform a long-vacant site.

The proposal for <a href="https://www.apartments.com.au/new-apartments/3098-surfers-paradise-boulevard-surfers-paradise-qld-4217">3098 Surfers Paradise Boulevard</a> has been conceived as more than a standalone residential project. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the development aims to spark the revitalisation of what the design team describes as the "South Boulevard" precinct, creating an active streetscape with retail uses at ground level beneath a collection of full-floor luxury residences.

The application, by PR Property Holdings, an entity directed by the Brisbane-based Ryan and Petrovic families, seeks approval for a 17-storey, 62.2-metre mixed-use development on a compact 427 sqm site between Surfers Paradise Boulevard and Appel Street.

The project will comprise just 10 apartments, including eight full-floor residences and two duplex apartments, positioned above a two-level retail podium. Three podium parking levels will accommodate 26 vehicle spaces, while a recreation deck is proposed on Level 4.

<img alt="First look: PR Property Holdings plans boutique apartment tower to kickstart Surfers Paradise's 'South Boulevard' revival" data-entity-type="file" data-entity-uuid="46cfa37d-5051-4449-8d8e-6724f8ca0d59" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_8.png?VersionId=e7UkeV1eTZAC2lXhdq72E3jpUbwiFD2t" />

Rather than pursuing apartment volume, the proposal focuses on large-format homes with a slender tower form intended to maximise outlooks while limiting visual bulk.

BDA Architecture said the proposal has been designed to become an urban renewal catalyst for the precinct.

"The ambition of 3098 Surfer's Paradise is that it provides the catalyst for incremental infill redevelopment and upgrade of what is coined the 'South Boulevarde' of Surfers Paradise which connects to the beating heart of Cavill Avenue."

The architects added: "An incremental approach to development that provides quality ground plane interface, human scale design, integrated subtropical landscape and semipublic permeable frontage can over time entirely upgrade a precinct."

The architecture adopts soft curves, articulated balconies and a slender tower profile rising from a human-scaled podium. The design report describes the project as delivering "bespoke residences of enduring distinction, sculpted with precision and quiet sophistication," with a focus on timeless coastal architecture.

The application also includes retail tenancies addressing Surfers Paradise Boulevard, reinforcing the site's role as an active mixed-use destination rather than a purely residential address. The planning report states the combination of the podium, landscaping and active frontage is intended to strengthen the pedestrian experience while contributing to the evolving character of the boulevard.

The site occupies a prominent position in the southern section of Surfers Paradise, directly opposite the G:link light rail corridor and within walking distance of Surfers Paradise Beach, Cavill Avenue, the Nerang River and Bruce Bishop Car Park. It is currently vacant, having previously accommodated a single-storey commercial building that was demolished in 2022. The planning report notes the surrounding area is characterised by a mix of commercial buildings and residential towers, with unlimited building height provisions applying under the Centre Zone.

The proposal also replaces an earlier 2022 approval for a restaurant and bar on the site, instead introducing a permanent mixed-use development that combines retail activation with boutique residential living.

Boutique apartment tower to "kickstart" Surfers Paradise's 'South Boulevard' revival

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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po-LsXgBTHBmX

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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