<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Construction

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Home builder Stellar Homes has collapsed leaving many South Australian home owners with half-built homes.
Administrators were appointed to Stellar Homes last week and the business’ 20 staff were advised of <a href="https://www.smartcompany.com.au/finance/cashflow/41542-10-collapses-10-lessons-how-to-avoid-your-business-going-under">the collapse</a>.
Peter Macks of Macks Advisory is the joint administrator of Stellar Homes and said there is stiff competition for work in the residential construction sector.
“It’s basically the difficult economic climate in South Australia for builders,” he says.
“It came down to a fall in sales which then resulted in a cash flow crisis.”
Stellar Homes was established by Darryn Peter in 2004 and has built more than 500 homes across Adelaide in the past 10 years. 
Around 36 homes are in various stages of construction and <a href="https://au.news.yahoo.com/video/watch/25401468/stellar-homes-collapses/">7 News reports</a> 173 tradies have been left in the lurch by the collapse and are owed $1.5 million. 
While Macks could not confirm these figures, he said over $3.4 million is owed to secured creditors and $1.5 million to unsecured creditors while staff entitlements have not yet been finalised.
Stellar Homes website has been shut down with just a holding site in its place but the company said in a statement the administration is in the best interests of all its creditors.
“It is a decision taken only with great personal anguish, and never lightly,” the statement said.
Ian Markos, director of policy at Master Builders Australia, said of the association’s 2,500 members in South Australia there have been collapses in the “double figures” in the state.
“In South Australia at the moment, unlike the eastern states, the housing sector is doing it really tough,” he says.
“This is not the first company that has been put into the hands of administrators, which is unfortunate.”
Markos says construction businesses want to build homes for the community but are drowning in paperwork.
“They are all small businesses with a husband and a wife running the company and the same amount of the hours in the day, dealing with a lot of red tape and paperwork.”
The first meeting of creditors will be held on 11 November in Adelaide.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Construction company collapses owing $5 million 

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Builders constructing single dwellings no longer need to be accredited under the federal Building and Construction Work Health and Safety Accreditation Scheme in a red tape cutting reform welcomed by the Housing Industry Association (HIA).
Reforms to the tendering processes for Australian government funded construction projects have, in particular, been welcomed by the residential building body's chief executive - industry policy and media, Graham Wolfe.
"The removal of the requirement for builders to be accredited under the federal Building and Construction Work Health and Safety Accreditation Scheme when constructing single dwellings is welcomed," said Wolfe.
"With the cost of accreditation running into tens of thousands of dollars, the return from being eligible to work on commonwealth projects often won't stack up for small to medium builders."
He said that small businesses faced an unfair burden as a result of the previous red tape-laden requirements, especially in comparison to large businesses with the capacity to absorb the costs.
"The ultimate loser is the taxpayer through less efficient more expensive public works projects," he said.
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jduke-EHk3XBmHkn

HIA welcomes removal of builder accreditation requirement

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Building activity for home starts is at its highest in 20 years, but there’s an obvious downside, explains Housing Industry Association senior economist Shane Garrett.
Pointing to 2012 when activity was low, he said that breaking through the 180,000 starts mark by this time was beyond even the most optimistic of expectations.
However, there’s no avoiding the negatives.
“The multi-unit dwelling segment saw a sharp fall during the second quarter of this year, with detached house building also nudging down a little,” warns Garrett.
“On the renovations side, the volume of work done also fell, with a 3.0% reduction in activity during the June 2014 quarter.”
During the June 2014 quarter, new housing starts clocked in at 45,527 in seasonally adjusted terms. While this is a 6.9% drop on the previous quarter, the 2013/2014 starts totalled 180,833 – the highest 12 month total since March 1995.
During the June quarter, detached house commencements dropped by 1.1%, while multi-unit dwellings dropped by 15%, when considering seasonally adjusted figures.
With their recent estimates pointing to 186,000 new dwellings required each year until 2050, he notes that the figures are still short.
“Even in such a strong upturn, we are still short of this requirement today. This is a stark illustration of the serious supply-side issues which will need addressing,” he said.
June 2014 saw new home starts declining in most states. In the ACT, New South Wales and Victoria the drops were most pronounced with a 48%, 12.3% and 3.3% decline respectively. Queensland and South Australia fell modestly, by 1.3% and 1.7%.
Meanwhile, Tasmania, the Northern Territory and Western Australia saw an uptick by 28.7%, 18.3% and 2% respectively.
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Home starts highest in two decades but sharp downside clear: HIA

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Australia requires 186,000 dwellings per year to keep up with demand, according to the Housing Industry Association’s (HIA) Housing Australia Future report.
HIA economist Geordan Murray said that one of the greatest policy challenges in coming decades is ensuring a sufficient supply of new dwellings to house a growing and ageing population.
"Within a plethora of potential scenarios, the most likely outcome is an annual new home building requirement between now and 2050 that is considerably higher than was has been achieved over the last 20 years,” said Murray.
“In a scenario where Australia's population and its real incomes grow at a medium rate – a scenario we believe most plausible – the nation will need to build an average of around 186,000 dwellings per annum.”
This includes 152,000 homes to provide housing to new households, and 30,000 to 35,000 dwellings to assist offset demolished homes and satisfy demand for additional housing as a result of rising incomes.
“In 2013/14, the number of new homes built was about the same as the number of new homes demanded by the population during the year,” he said.
“Unfortunately a match of this kind is an aberration - throughout much of the last decade there was a considerable mismatch between the level of demand for housing and the amount of new home building.”
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We need 186,000 dwellings per year to keep up: HIA

<html><body>
Master Builders Australia are predicting that the Australian Bureau of Statistics’ (ABS) release on Wednesday for building activity data show a strong result.
In fact, they expect near record dwelling starts were recorded for the June quarter, says Master Builders chief economist Peter Jones.
“In line with our industry forecasts, Master Builders expects building commencements will approach 50,000 for the June quarter,” Jones says.
“We predict that, in line with Master Builders’ forecasts, the June quarter result will take the annual level of building starts to around 183,000 for financial 2013-14,” he says.
They are also expecting that the record for annual building starts – a title taken in 1994 with 187,000 recorded – will be broken next year.
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Near record dwelling starts tipped for Wednesday ABS results

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The Australian Bureau of Statistics (ABS) released building approvals data for August 2014 earlier this month.
At a headline level, dwelling approvals were 3.0% higher over the month and are now 14.5% year on year. With 16,810 approvals over the month there is clearly a strong level of residential development activity with monthly approvals just -5.0% lower than their recent peak.
<img src="/images/2014/10/8/Chart-1.jpg" alt="">
Of the 16,810 dwelling approvals in recorded over the month of August, 9,401 were for houses and the remaining 7,409 were mulit-unit dwellings (typically apartments).
Over the month, house approvals fell by -1.4% while unit approvals rose by 9.2%. Year-on-year, house approvals are 12.6% higher while unit approvals are up 17.1%. 
As the chart above shows, the six month trend indicates a slowing of dwelling approval numbers and it also shows that monthly movements in unit approvals tend to be much more volatile. Also remember that a multi-unit development is more risky than developing a single house and ultimately less likely to ultimately be constructed.
<img src="/images/2014/10/8/Chart-2.jpg" alt="">
Focussing on dwelling approvals on an annual basis we have seen more house and unit approvals than ever before over the 12 months to August 2014. Over the 12 month period there were 197,571 dwelling approvals, of which 111,020 were for houses and 86,552 were units. The annual number of approvals has increased by 19.2% over the past year.
Although approvals have surged, as the chart shows it is largely due to a significant lift in unit approvals. Although the number of unit approvals over the past year was at a record high, house approvals are still -6.8% lower than their previous peak over the year to July 2010 and -21.2% lower than their all-time high of 140,832 over the year to April 1989.
Historically, units have been much less likely to move from approval to construction. Units also tend to be much more likely to be owned by investors than houses. 
With the Reserve Bank flagging that deliberations are ongoing into the introduction of macroprudential policies to slow the level of investor activity in the housing market, there is potentially an even bigger than normal risk that these units won't make it to completion.
<img src="/images/2014/10/8/Chart-3.jpg" alt="">
Across the combined capital cities, there was an all-time high of 147,122 dwellings approved for construction over the 12 months to August 2014. The number of capital city dwelling approvals has increased by 21.9% over the past year. 
Over the year there were, 71,662 approvals for houses and 75,460 unit approvals with house approvals up 20.6% and unit approvals 23.2% higher.
Much like the national results you can see that unit approvals are at their higher levels while house approvals are only just approaching their previous peak levels.
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<img src="/images/2014/10/8/Chart-4.jpg" alt="">
Across the individual capital cities, Brisbane has recorded the greatest increase in dwelling approvals over the year (41.8%) followed by: Perth (24.9%), Adelaide (24.0%) and Sydney (23.3%). Dwelling approvals are lower over the year in Darwin (-6.8%) and Canberra (-6.4%) while Melbourne (16.3%) and Hobart (19.4%) have recorded only moderate rises in dwelling approvals. 
Despite certain cities recording significant rises in dwelling approvals, Sydney and Melbourne have accounted for more than 57% of all capital city dwelling approvals over the past year. With 26,123 dwelling approvals over the past year, approvals in Perth are at a record high while Brisbane approvals are just shy of their record high.
<img src="/images/2014/10/8/Chart-5.jpg" alt="">
A key driver of the overall increase in dwelling approvals has been the rising prominence of the unit market. Over the past year, the increase in unit approvals has been greater than the increase in house approvals in Sydney, Brisbane, Adelaide and Perth.  Although unit approvals have recorded greater increases in these cities, there has been a substantial decline in unit approvals across Hobart and falls in both Darwin and Canberra.
<img src="/images/2014/10/8/Chart-6.jpg" alt="">
With more than half of all capital city dwelling approvals for units as opposed to houses, all individual capital cities except for Adelaide (31.8%), Perth (25.9%) and Hobart (7.0%) are seeing a majority of approvals for units. In Sydney, 67.7% of dwelling approvals were for units over the past year, elsewhere 53.0% were for units in Melbourne, 55.9% in Brisbane, 63.2% in Darwin and 57.9% in Canberra.
Sydney has consistently approved more units than houses since 1993 and Darwin has consistently approved more units than houses since 2003, while across the other cities it is a relatively new phenomenon.  
Melbourne has only been approving more units than houses since mid-2012, in Brisbane it has occurred since mid-2013 and in Canberra since mid-2010. Of course, there is an increasing level of demand for units, but particularly in Melbourne and Brisbane the number of units in the pipeline is largely untested in the market. 
Furthermore, units tend to be more appealing to the investor market rather than owner occupiers. While demand may currently be strong it remains to be seen whether there is enough investor demand to satisfy all of the supply in the pipeline.
Dwelling approvals remain at a very high level and with the rate of population growth slowing it is encouraging to see that supply is finally responding.  With their lower price point compared to houses and superior rental returns no doubt we are seeing a rising level of demand for units, particularly in inner city markets. 
Of course, the Reserve Bank of Australia has raised concerns about the level of investment lending which is most prominent for inner city units.
If controls are introduced to slow the level of investment there may be an adverse impact on demand and subsequently values of inner city units, particularly new inner city units which are a strong target from the investment segment of the market.
 
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Units are driving dwelling approvals, but will they get built?

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Over the past 12 months a total of 197,571 dwellings have been approved - the highest on record.
In August, dwelling approvals increased by 3%, according to the Australian Bureau of Statistics, with the yearly result up 14.5%.
CommSec economist Savanth Sebastian said that the latest economic data, in particular this lift in dwelling approvals, is encouraging.
"Dwelling approvals rose for the second straight month in August and hit record highs when viewed over the past 12 months. At the same time the trade deficit narrowed," he noted, saying that the fact approvals have consolidated over the last few months is positioning housing activity to be the "backbone of Australia's growth story over the coming year".
Dwelling approvals are now 24% above decade averages, and Sebastian expects them to lift even further over the second half of 2014.
"Lower interest rates, strong population growth, improving affordability, and pent up housing demand will see the housing sector gather pace over the medium term. In addition the recent cuts to fixed interest rates by the major banks will spur a further round of home building," he explained.
The approvals list will also appease policymakers, with an expectation than a lift in new housing stock would ensure more sedated price growth over the longer term as it shifts the supply/demand dynamic.
ANZ Research noted that dwelling approvals' increase was reflective of higher home prices and improved developer and home buyer sentiment, with strength in multi-dwelling units driving the result with 9.2% month on month growth.
House approvals fell 1.4% month on month.
"Looking through the volatility, higher-density approvals have been trending higher again in recent months, having previously reached a cyclical peak in late 2013 and then easing modestly. Meanwhile, the trend in house approvals continues to flatline, although remains at elevated levels," their latest research notes.
A solid pipeline of planning housing construction is expected, particularly for high rise apartments in Sydney, Melbourne and Brisbane.
The total value of non-residential building approvals did trend lower in August, now down 24% over the year, particularly in the commercial property sector.
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Last year records highest ever number of dwelling approvals

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Perhaps our easing cycle is not yet over?
Posssibly so. Markets have all but priced out any further interest rate cuts in this cycle - partly due to worries about cuts bringing more speculators into the housing market, and partly due to one seemingly very strong set of employment data - but it still seems to be very much in the balance to me.
One of several reasons I think that another cut or two might be needed is the decline in mining construction, which has yet to gather any real pace but remains a threat.
Construction phase of the mining boom fading
The Australian Bureau of Statistics (ABS) released its Engineering Construction activity data yesterday, which is something of a proxy for mining construction activity.
We are now clearly beyond the peak of this construction phase of the mining boom as production begins to ramp up in its stead.
The total value of engineering construction work done across all sectors has now declined by 2.3% over the past year on a seasonally adjusted basis.
In chain volume measures terms the charts show that although activity remains at a highly elevated level, the peak of the mining construction boom appears to have been way back in the September 2012 quarter.
And while the decline has not been devastatingly steep, in chain volume measures terms we are now tracking at around 9% lower than we were, with 3.8% of that decline taking place over the past year.
<img src="/images/2014/10/2/ENG1.jpg" alt="">
In terms of the construction activity by state, it was the mining states which benefited most from the boom, so it will be the same states which feel most of the pain as the construction boom unwinds.
<img src="/images/2014/10/2/ENG2.jpg" alt="">
As recently as March 2014 there were still major resources projects getting underway in Western Australia, but the big ticket items are now largely visible in the rear view mirror.
<img src="/images/2014/10/2/ENG3.jpg" alt="">
In terms of the value of activity yet to be completed, work in the pipeline for Queensland has tanked. The full data set for Western Australia is not available from the Bureau of Statistics, but the sub-indices imply that the work in the pipeline is almost certainly declining there too.
<img src="/images/2014/10/2/ENG4.jpg" alt="">
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With the weighted index of commodity prices continuing to "ease" by another 2.4% in September (and another 16% over the past year in Aussie dollar terms) according to the Reserve Bank of Australia, marginal projects will certainly not be commenced in the current environment.
<img src="/images/2014/10/2/commodity-prices-small.gif" alt="">
In short, mining construction activity has not collapsed, but it is set to keep declining for several years to come.
This leads me to think that another interest rate cut or two could still be at least an each-way bet, but only if the large number of investors pouring into the housing market slows. We will know more in the next week or two on that front.
WA property bust?
There has been some talk of whether or not the collapse in mining construction will result in a property bust in Western Australia.
The answer to that riddle is: that depends.
The Pilbara has transitioned into the export phase of the mining boom. which is the less labour intensive phase of the boom, and unsurprisingly several property markets have crashed, both in terms of rentals and prices.
This is hardly a shock, except to perhaps investors who were lured in by promises of fast returns and sky-high monthly rents.
The Perth property market is a different matter entirely. Western Australia, and especially Perth, has benefited from by far and away the strongest percentage rate of population growth in Australia over recent years.
The key to successful property investment in Perth has always been to own well located land. Unit and apartment prices may well feel some pain ahead, but with rapid population growth having underpinned the market the price of well located houses will fare much better.
Indeed, the median price of land in Perth reportedly "skyrocketed" by $40,000 in the past year.
This represents a 7.5% increase in the median value of Perth land, which outpaced Adelaide (+7.3%) and Sydney (+5.2%).
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Has the market mispriced the odds of a rate cut?

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GUEST OBSERVATION
While location and price remain the biggest considerations for anyone purchasing a new home, smart buyers are starting to look at sustainability attributes and green ratings to decide which home may be a more sustainable long-term investment.
There are a number of rating systems in the market able to assess the energy efficiency of your home.  A <a href="https://www.gbca.org.au/green-star/" target="_blank">Green Star rating</a>, however, is more than just an indicator of energy efficiency, signalling that other environmental impacts such as water use, health impacts and origins of the materials in the building, and the connections to transport have been addressed.
Many buyers are beginning to see Green Star as a mark of quality when they hunt for a new property, and evidence is emerging that a green rating translates into a higher sale price when it comes time to sell.
In the commercial sector, a large range of research – both in Australia and overseas – has found that green buildings deliver consistently higher returns.  One Australian report, <a href="https://www.api.org.au/folder/news/building-better-returns-research-report">Building Better Returns</a> (2011), found that Green Star-rated buildings deliver a 12% ‘green premium’ in value and a 5% premium in rent, when compared to non-rated buildings. 
But is this restricted to the commercial market?
A 2008 study from the ACT, <a href="https://www.eecentre.com.au/eer-house-price-act.pdf" target="_blank">Energy Efficiency rating and house price in the ACT</a>, examined the relationship between (thermal) energy efficiency and house prices, finding that each half-star increase in the FirstRate energy efficiency rating translated into a 2% increase in capital value.
Another broader American study, <a href="https://www.usgbc.org/sites/default/files/ValueofGreenHomeLabelsStudy_July2012.pdf" target="_blank">The Value of Green Labels</a> (2012), involved a pricing analysis of 1.6 million single-family home sales in California from 2007-2012.  The researchers found that, while the average sales price of a non-certified California home was $400,000, a green certification lifted the price by more than $34,800.  This translated into a 9% green premium. 
While many Australians are reluctant to pay more for a green-certified home at the moment, it is almost certain that they will pay less for non-rated, inefficient and unhealthy homes in years to come – so although a ‘green premium’ may not be much, the ‘brown discount’ for inefficient, unhealthy houses and apartments that are expensive to run will be considerable. Such homes would be worth less, and harder to sell on.
Whether a home with a green rating is more valuable right now may be up for debate, but there’s no doubt that a sustainable home uses less energy and water – and that can save you thousands of dollars each year. Add the improved health and wellbeing, and you’ve got more dollars in your pocket and better quality of life.
Romilly Madew is chief executive of the <a href="https://www.gbca.org.au/" target="_blank">Green Building Council of Australia</a>.
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Does building green really pay off?

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Australia may be building 150,000 on average each year, including 180,000 over the next year, but these figures are not coming close to bridging the housing shortage, according to a new report.
The Australian Residential Development Outlook, from RP Data and the Residential Development Council, report shows a strong forecast over the 2014/2015 financial year with 180,000 dwellings expected – 30,000 up on previous forecasts.
Residential Development Council executive director Nick Proud said that 150,000 each year on average is not enough to even meet current demand, let alone reduce the shortage.
“These increased construction rates are expected to continue for the next 12 to 18 months – but the challenge is to keep up this level of activity to meet undersupply,” said Proud.
Meanwhile, RP Data national research director Tim Lawless said that residential development activity has been the “litmus test” for the economy. He said that strong dwelling starts and sales indicators are positive signs.
“Beyond current dwelling activity, we do see some of the inputs that include continued house price growth, demand for housing credit and lending finance that will feed into activity over the next 18 months,” he said.
“Factors such as rising unemployment rates and falling terms of trade could lead to a drop off in the number of new starts from 2016 and this would not only worsen housing affordability, but put greater pressure on state budgets around the country,” said Lawless.
Proud suggested removing policy roadblocks, such as planning system delays and stamp duty costs, would help maintain higher construction rates and improve affordability.
He said that state governments should be driving these policy changes.
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