Longstanding Gold Coast and Canberra developer <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> is continuing to roll on with its Glitter Strip apartment pipeline, seeking to return to Mermaid Beach with a new 68-apartment development.

Morris, founded by Barry Morris in 1978 and one of the Gold Coast’s most prolific apartment developers over the past two decades, has filed plans for a 12-storey mixed-use building at <a href="https://www.apartments.com.au/new-apartments/36-seabeach-avenue-mermaid-beach-qld-4218">34-36 Seabeach Avenue</a>, on the prized eastern side of the Gold Coast Highway.

The 1,227 sqm site occupies a prominent corner position at Seabeach Avenue and the Gold Coast Highway, opposite the Mermaid Plaza retail and office precinct and around 140 metres walking distance from the future Mermaid Beach South light rail station.

<a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a> has designed the project, which will comprise 68 apartments across a mix of 48 two-bedroom and 20 three-bedroom residences.

The building will rise 12 storeys, reaching a maximum height of 36 metres, with the apartments accounting for a total of 156 bedrooms. The development application also seeks approval for short-term accommodation across the 68 apartments, while two office tenancies are proposed at ground level.

The plans show 108 car spaces across the development, with parking accommodated at ground level and within a three-level basement accessed from Seabeach Avenue.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="c2175c99-12fd-4a3c-9be1-89bbf258a90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.41%E2%80%AFPM_0.png?VersionId=iNLzWcE6gaAE76rafhEXfHve.4g4Se0p" />

Resident amenity will be concentrated on level two, where Fraser &amp; Partners has designed a recreation deck with a swimming pool, 90 sqm pool terrace, outdoor barbecue area and gym.

The broader communal offering will also incorporate landscaped spaces, with the planning documents noting the amenity has been designed to provide areas for recreation, social interaction and outdoor living.

The proposal would continue the transformation of the Gold Coast Highway corridor through Mermaid Beach ahead of the arrival of the light rail.

The site is zoned Neighbourhood Centre and sits within the Mermaid Beach/Broadbeach Light Rail Corridor neighbourhood plan. While the prescribed building height is 24 metres, the site is identified within an Urban Neighbourhood context providing for a 50 per cent height uplift to 36 metres.

Planning documents describe the stretch of the Gold Coast Highway between Broadbeach and Nobby Beach as increasingly characterised by medium and high-rise development, with the proposed Morris tower joining projects including Ventura, The Alfred, Oceans and Otto.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="911f193f-e381-4a55-be08-58be87fcf978" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.48%E2%80%AFPM.png?VersionId=oxVvLJaY.SOXEdXrIcogfyEXDfvCmmpM" />

The development would mark Morris Property Group's latest investment in Mermaid Beach, where it has already delivered two apartment projects.

Otto, at 1 Bondi Avenue on the western side of the Gold Coast Highway, comprises 70 apartments across nine storeys. The project was completed in 2019 and includes a residents' gym, recreation deck and swimming pool.

Morris also developed Oceans at 46 Ocean Street, a nine-storey, 70-apartment build-to-rent development completed in 2019. Oceans was the group's first build-to-rent project and incorporates commercial space at ground level.

The two existing Morris projects sit further north along the same Gold Coast Highway corridor as the proposed Seabeach Avenue development. Fraser &amp; Partners' planning analysis specifically identifies both Otto and Oceans among the established built-form precedents surrounding the site.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="14925119-7b71-4812-8149-340317512c7c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%203.00.15%E2%80%AFPM.png?VersionId=aEJqYuw_nTCjcin17BSD0piB1EFotTlj" />

Mermaid Beach represents only part of Morris' considerable Gold Coast footprint.

The family-owned developer has been particularly active in neighbouring Broadbeach, delivering projects including Sierra Grand, Eclipse, Synergy, Qube, Koko, Opus and Malo, while its current pipeline includes Maison and the two-tower Crest development.

Further south, Morris has also developed a string of projects in Burleigh Heads, including Element, Boardwalk and Sandbar, while Essentia expanded its footprint north into Surfers Paradise.

The Seabeach Avenue application has been lodged by PMM Broadbeach Pty Ltd and seeks a development permit for a Material Change of Use for multiple dwellings, short-term accommodation and office uses. Zone Planning Group prepared the planning application, with Fraser &amp; Partners commissioned as architect.

The project comes as the developer continues to expand its Gold Coast pipeline while retaining a significant presence in Canberra. Morris now has more than $2.5 billion of development in its national pipeline and has delivered more than 7,000 homes during its near five-decade history

Joel Robinson

First look: Morris Property Group returns to Mermaid Beach with new Seabeach Avenue apartment development

<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.

55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.

The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.

[smartcode_project:default project_id=152579 project_image_fid=376250]

55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.

Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.

The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.

[smartcode_project:default project_id=152579 project_image_fid=376253]

At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.

The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.

A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.

Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.

&nbsp;

&nbsp;

The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.

Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.

“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.

55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.

Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.

[smartcode_project:default project_id=152579 project_image_fid=376252]

Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.

The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.

55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.

[smartcode_project_cta:default project_id=152579]

Fortis continues eastern suburbs push with 55 William launch

UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.

Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.

The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.

It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.

Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.

A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.

The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.

It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.

Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.

“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.

“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”

Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.

“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”

The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.

Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.

The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.

Arada plots $2 billion Broadbeach towers in major Queensland move

Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.

Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.

Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.

“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.

“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”

It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.

[smartcode_project:default project_id=135149 project_image_fid=377495]

For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.

Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.

Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.

[smartcode_project:default project_id=135149 project_image_fid=377494]

“These buyers still want their home to feel generous,” Porter says.

“They may want less maintenance, but they are not looking for less life.”

The challenge for the broader housing market is providing enough of the right stock to encourage that move.

While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.

Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.

“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.

“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”

It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.

<h2>Lillian targets the next stage of apartment buyer</h2>

It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.

Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.

The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.

[smartcode_project:default project_id=135149 project_image_fid=377688]

McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.

For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.

“People should be able to change the type of home they live in without having to change their entire life,” he says.

“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”

[smartcode_project:default project_id=135149 project_image_fid=377687]

Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.

Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.

Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.

[smartcode_project_cta:default project_id=135149]

From downsizing to right-sizing: What Sydney buyers want from their next home

Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

The Maybelle brings 27-storey parkside tower to market near North Strathfield

Construction

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The Australian Bureau of Statistics (ABS) released building approvals data for July 2014 last week. 
The data shows that there continues to be a strong pipeline of residential development in place.
<img class="aligncenter size-full wp-image-3677" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-1.jpg" alt="Chart 1" width="500" height="179">
Focussing on dwelling approvals nationally, there were 9,585 house approvals and 6,733 unit approvals over the month.  The number of dwelling approvals increased by 2.5% over the month with house approvals up 1.5% and unit approvals up 4.0%.  Although dwelling approvals have increased over the month they were -7.8% lower in July than the most recent peak in January 2014 when there were 17,698 dwelling approvals.  Although dwelling approvals increased over the month, they have fallen for eight of the past 12 months.
<img class="aligncenter size-full wp-image-3678" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-2.jpg" alt="Chart 2" width="500" height="178">
Monthly dwelling approvals data tends to be volatile so I also like to look at annualised data to see a trend.  Over the 12 months to July 2014 there were 195,227 dwelling approvals.  This was an all-time high number of annual approvals.  Unit approvals were also at an historic high level over the year while house approvals were well below their record high of 140,832 recorded over the 12 months to April 1989.  Over the 12 months to July 2014, unit approvals accounted for 43.6% of all dwelling approvals, up from 42.1% a year earlier.
<img class="aligncenter size-full wp-image-3679" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-3.jpg" alt="Chart 3" width="500" height="178">
Across the combined capital cities, there were a record high of 145,065 dwellings approved for construction over the 12 months to July 2014.  The number of capital city dwelling approvals has increased by 21.9% over the past year.  Over the year there were, 71,085 approvals for houses and 73,980 unit approvals with house approvals up 20.8% and unit approvals 22.9% higher.
<img class="aligncenter size-full wp-image-3680" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-4.jpg" alt="Chart 4" width="500" height="183">
Across the individual capital cities, Brisbane has recorded the greatest increase in dwelling approvals over the year (44.5%) followed by: Sydney (29.0%), Perth (26.6%) and Adelaide (25.1%).  Dwelling approvals are lower over the year in Darwin (-14.5%) and Canberra (-7.6%) while Melbourne (10.9%) and Hobart (11.7%) 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.
<img class="aligncenter size-full wp-image-3681" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-5.jpg" alt="Chart 5" width="500" height="179">
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 class="aligncenter size-full wp-image-3682" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-6.jpg" alt="Chart 6" width="500" height="180">
With more than half of all capital city dwelling approvals for units as opposed to houses, all individual capital cities except for Adelaide (31.1%), Perth (25.0%) and Hobart (9.0%) are seeing a majority of approvals for units.  In Sydney, 68.3% of dwelling approvals were for units over the past year, elsewhere 52.1% were for units in Melbourne, 56.0% in Brisbane, 62.0% in Darwin and 57.6% 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 increasing levels of demand for units but particularly in Melbourne and Brisbane the number of units in the pipeline is largely untested.  Unless the introduction of supply is closely managed there is a potential risk of unit oversupply.
With dwelling approvals at historic high levels, dwelling construction will continue to help bolster GDP as engineering construction.  The challenge will be whether dwelling construction is enough to offset the fall in engineering construction and it seems that it probably won’t be. 
Construction work done data for the June quarter showed that residential construction accounted for 25.8% of total work done compared to 57.2% attributable to engineering.  At its absolute peak residential construction accounted for just over half of the value (50.2%) of all work done.  It is likely that residential dwelling construction alone will not be able to offset the fall in mining investment.
Furthermore, it is unlikely that all of these approvals will come to fruition in the short-term. Unless there is ongoing demand a proportion of these new approvals won’t commence as they won’t get the necessary pre-sales to receive construction finance.  In light of this, interest rates are likely to remain low to try and encourage further housing demand.  
As a result, unless the RBA and APRA introduce macro prudential tools it seems unlikely home value appreciation will cease until such time as mortgage rates increase.
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ckusher-ujnxiKuFQs

Rise of the unit market behind record dwelling approvals

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The Australian Bureau of Statistic (ABS) Construction Work Done figures for the June quarter show that building work done rose 2.0% in the three months to June, with residential building work increasing 3.6% to a trend estimate value of $13.379 billion.
Construction work in Victoria, New South Wales and Tasmania has now risen in three consecutive quarters, while Queensland, Western Australia, the Northern Territory and South Australia all recorded declines in construction work for the quarter.
Work done in Queensland has fallen for two consecutive quarters. In South Australia, the Northern Territory and Western Australia, construction work has been decreasing for three quarters.
In the Australian Capital Territory, construction work done increased this quarter, after two years of declines in construction work.
With private new residential building work up 3.2% in the quarter, particularly driven by detached house construction, Housing Institute of Australia (HIA) economist Diwa Hopkins noted that major renovations work wasn't faring so well.
“A closer look at these preliminary results shows that the detached house segment was the key driver of growth in residential building during the June 2014 quarter, compared with the March quarter when multi-unit building led the charge," said Hopkins. Building work for new houses contributed 1.6 percentage points to the 2.2% increase in total residential building work done, according to HIA.
“These developments are largely in line with what we have been expecting of the current new home building cycle; that larger improvements in detached house building activity would follow in the wake of the previously strong growth experienced by the multi-unit segment of the market," explained Hopkins.  
“Unfortunately, conditions in the major-renovations segment of the market remained subdued, with the value of this work done declining by 2.4% during the June 2014 quarter.
“National accounts figures will reveal the full story on the renovations market, showing the value of both major and smaller jobs. Data from the March 2014 quarter was displaying tentative signs of improvement and obviously we’d be hoping for this to continue in the June quarter, notwithstanding the less than auspicious results from today’s data release,” she concluded.
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jrichardson-uRX5hFdKfN

Residential building work up, but major renovations sluggish

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Construction work value fell for a third straight quarter in June as strengthening residential work failed to offset slumping engineering work.
Westpac economist Andrew Hanlan noted construction activity, which represents around 16% of the economy, softened in the June quarter, as he expected.
 Construction work declined by 1.2% in the quarter, and over the past year, work declined by 0.6%.
"The construction sector is feeling the impacts of cross currents," he said.
"Private building work is trending higher, boosted by record low interest rates, while private infrastructure activity is retreating from record highs as the mining investment boom deflates.
"Public works are in a soft spot ahead of a ramp-up on major transport projects."
Private infrastructure work declined modestly in the quarter, down 2.1%, with larger falls in prospects.
Private new residential building work advanced by a further 3.2% in the quarter, to be 11.7% higher than a year earlier and up 20% from the low of mid-2012.
Private non-residential building activity increased by 2.8% in the quarter and expanded by 6.6% over the year to be 20% above the low of early 2011. The work pipeline is now 9% above the peak of mid-2008.
Renovation work of private residential buildings provided a surprise, recording a 2.2% fall in the quarter, reversing a 2.0% rise in Q1, Westpac noted.
Across the nation, construction work in the June quarter declined in NSW, Victoria, WA and Qld, while a partial rebound in Tasmania continued and SA stabilised following recent sharp falls. 
In NSW, construction declined by 1.2% in the quarter, to be 1.2% lower than a year earlier. An upturn in building work is broadly offsetting a downturn in infrastructure construction. 
Work in Victoria was little changed in the quarter, down 0.3% in the quarter. However, over the past year, work is up 3.2%, centred on a near 6% rise in building work. 
WA recorded a modest fall in work in the quarter, -1.1%, and over the year, -1.4%. Total infrastructure work is now down 13% from the peak of early 2012. 
In Queensland, work edged 1.2% higher over the year, despite a 1.8% fall in Q2. Infrastructure work over the year was little changed, down 0.8%. 
South Australia is the only state to experience a pronounced fall in work over the year, down almost 8%, from record highs. 
Tasmania's construction sector turned the corner over the past year, with work recovering by 9.3%, led by infrastructure activity. 
Construction fell 1.2% to $51.9 billion from the March quarter in ABS figures showed.
The decline was greater than the 0.4% fall in March, but less than the December quarter’s 2% fall.
Building work grew 1.5% overall, boosted by a 2.2% rise in residential construction, but this was insufficient to compensate for a 3.1% quarterly decline in engineering work.
Engineering, the largest single component of construction, fell in value to $27.9 billion from $30.7 billion. In a reflection of the reduction of resources-based investment taking place, the sector’s value has fallen almost 9% from its September quarter level of $32.6 billion.
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jchancellor-FAypfDUnLy

Construction work falls in June quarter: ABS

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Contractors who engage in phoenix activity in the construction industry are expected to face charges soon as a result of a joint investigation by Australia’s corporate regulator and the Australian Tax Office.
The Australian Securities and Investments Commission is working with the ATO and the Fair Work Building and Construction inspectorate to investigate eight of the nation’s largest big construction projects to take action against contractors believed to be operating <a href="https://www.smartcompany.com.au/legal/33614-company-directors-targeted-by-asic-in-phoenix-crackdown-which-industries-are-in-the-line-of-fire" target="_blank">phoenix scams</a>.
As part of the investigation, a number of large construction firms have agreed to provide the ATO with financial information and documents about their contractors in order to help identify sub-contractors engaging in phoenix activity.
<a href="https://www.afr.com/p/national/big_projects_could_be_hiding_phoenix_KjiNwbQ8AO9p4d5XhSvG3K" target="_blank">Fairfax reports</a> the ATO is compiling evidence for the Commonwealth Director of Public Prosecutions, which will make the final call on whether company directors will be charged.
Tax Office assistant deputy commissioner Bruce Collins said this morning the ATO has “a number of significant ongoing investigations underway at the moment” and “expect[s] further charges to be laid in relation to illegal phoenix activities in the near future”.
Collins says phoenix activity describes a situation where a company is deliberately liquidated to “avoid financial obligations such as PAYG withholding, income tax, GST and super liabilities, without risking the operator’s assets, and with the intention of resuming business through a new entity”.
He says this kind of fraudulent phoenix activity “is widespread among labour intensive industries, especially in the property and construction industry”.
“We are currently liaising with head contractors from the property and construction industry to help deal with the risks associated with phoenix operators,” says Collins.
“This includes engaging with them on how phoenix activities could be occurring within their sub-contractor supply chain.”
A spokesperson for ASIC also said this morning the corporate watchdog is currently undertaking a “surveillance campaign focusing on directors who have a history of being involved in alleged illegal phoenix activity to try to prevent any illegal future behaviour”.
The spokesperson says ASIC has examined 208 possible cases of phoenix companies since July 2013, and of those cases, “six or seven are being investigated further”.
The spokesperson says ASIC is particularly concerned about “the use of false statutory declaration by subcontractors as a means of being paid (by the head contractor) for services undertaken during the construction of major building projects”.
“A disproportionately high number of corporate failures where illegal phoenix activity is alleged, occur in the industries of construction, labour hire, transport security and cleaning,” says the spokesperson.
“To combat this, ASIC has implemented a new and innovative strategy specifically focused on the building and construction industry.”
Both ASIC and the ATO have not identified which companies are providing information about their contractors, but Fairfax suggest the eight companies are likely to include construction giants Lend Lease and Leighton.
A spokesperson for Lend Lease told Fairfax the company is “aware that the ATO and ASIC are investigating the issue of phoenix companies” and Lend Lease will “work with the regulators as required”.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ASIC and ATO cracking down on phoenix companies in construction industry

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BIS Shrapnel has forecast inner Sydney ­new apartment completions are set to peak in 2017.
Its report, Inner Sydney Apartments 2014 to 2021, showed around 5,800 apartments were under construction around inner Sydney and 11,500 apartments would be finished over the next three years.
The anticipated peak of 4,500 apartment completions by 2016/17 is expected to be on par with the previous 1999/2000 peak, the BIS Shrapnel report author, Angie Zigomanis said.
<img src="/images/2014/08/25/bis-aug-25-one.jpg" alt="">
Source: BIS Shrapnel
Total price growth of around 21%, or just under three percent per annum, is forecast through to 2021.
The report warns landlords of newly completed apartments will have to be more competitive to attract tenants over existing stock, while owners of older apartments may have to discount to attract tenants from neighbouring suburbs,
Zigomanis said declining rental yields will be ­sustainable while interest rates remain low, and the gap between rental income and mortgage repayments is relatively narrow. 
But weak purchaser demand and prices will emerge once interest rates lift, with BIS Shrapnel expecting a rate rise by the end of 2015, and further rises in 2016 and into 2017.
But in the man time short-term demand for inner Sydney apartments is expected to remain buoyant and BIS Shrapnel expects median price growth about 6% per annually over 2014-15 and 2015-16.
The downturn is expected in 2016-17.
Zigomanis said Sydney was still catching up after years of ­under-development and weak demand for new apartments.
He pinpointed three demographics that will assist rental demand including overseas student enrolments increasing for the first time since peaking over 2009–2010; growth in long term overseas visitor arrivals, and professional employment growth in inner Sydney expected to be relatively robust. 
"With most inner Sydney apartments purchased by investors, these groups will contribute to rising tenant demand and help to fill up the new apartment stock," Zigomanis said.
"Owner occupier demand is also likely to grow, with rising inner and middle ring Sydney house prices encouraging some tenants to instead upgrade to a larger apartment in inner Sydney as an owner occupier, while also encouraging empty nesters and retirees to more easily trade down from their existing house to an apartment."
Nevertheless, says Zigomanis, this strengthening in occupier demand is not anticipated to be sufficient to keep pace with the record level of new apartments expected to be completed over the next three years, with vacancy rates forecast to rise in the coming years.
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BIS Shrapnel forecasts 6% annual inner Sydney apartment price growth over next two years

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Construction in Brisbane is on the increase, with the Rider Levett Bucknall crane index reporting 48 cranes on sites around the city.
Meanwhile, Teneriffe, <a href="/news">Newstead</a> and <a href="/news">Fortitude Valley</a> had more than a dozen cranes within four square kilometres.
Master Builders’ executive director Grant Galvin pointed to building approvals as a sign of the growing confidence.
“The industry’s confidence is reflected in total building approvals which had also risen around 25% over the past 12 months to June,” Galvin said.
“It’s interesting to note that 42.5% of approvals in the last 12 months are for multi-unit dwellings, mainly in Brisbane and the Gold Coast,” he said.
The 40,000 dwelling commencements forecast for 2014/2015 is expected to be exceeded, with current 2013/2014 financial year approvals at 37,000.
Premier Campbell Newman said that the construction sector’s strength is good for Queensland’s overall economy.
“Around 223,000 Queenslanders are employed in the construction industry, many more than two years ago and if these trends continue, we’re confident that we’ll see many more jobs created,” he said.
He pointed to the reforming of the planning and development approval systems, and the $15,000 Great Start Grant incentive, as other drivers behind the construction sector.
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Brisbane construction increases, 42.5% of approvals for multi-unit dwellings

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The Australian Bureau of Statistics (ABS) released building approvals data for June 2014 last week.
National dwelling approvals fell by 5.0% over the month with house approvals falling by -2.6% and unit approvals down -8.4%.  Despite the fall in approvals over the month, a significant number of dwelling approvals remain in the pipeline.  Note that dwelling approvals have now fallen over four of the past five months.
<img class="aligncenter size-full wp-image-3549" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-14.jpg" alt="Chart 1" width="500" height="182">
Year on year, dwelling approvals are 16.0% higher in June 2014 than in June 2013. 
House approvals have increased by 12.2% year-on-year while unit approvals have surged by a greater 22.0%. The greater rise in unit approvals compared with house approvals reflects changing lifestyle patterns and greater acceptance of higher density living.  However, a recent analysis we have undertaken indicates units are less likely to be ultimately completed than houses. 
Although the pipeline is strong, it is reasonable to expect that not all of these units will ultimately be constructed.
<img class="aligncenter size-full wp-image-3550" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-24.jpg" alt="Chart 2" width="500" height="179">
The month to month dwelling approvals data is quite volatile, given this it is worthwhile looking at the annual number of approvals. 
Over the 12 months to June 2014 there were 108,598 house approvals and 85,067 unit approvals.  With a total of 193,667 dwelling approvals over the year there has been a 20.7% increase in approvals year on year. 
Total annual dwelling approvals are now at their highest level since October 1994.
<img class="aligncenter size-full wp-image-3551" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-35.jpg" alt="Chart 3" width="500" height="180">
Focussing on dwelling approvals, across the combined capital city housing markets there were 144,278 approvals over the 2013/14 financial year.  This was an increase of 25.5% over the year and the highest number of annual approvals on record. 
Both Sydney and Perth have also recorded their highest ever number of dwelling approvals over the past year. Over the year there were 69,973 houses approved for construction (+21.3% over the year) and 74,305 unit approvals (+29.8%).
Most individual capital cities have recorded an increase in dwelling approvals over the year with the largest increases recorded in Brisbane (47.1%), Sydney (30.6%), Adelaide (30.4%) and Perth (27.6%).  Darwin was the only city where approvals were lower over the year, down -3.7%. 
Comparatively the annual increase in dwelling approvals has been much lower in Hobart (12.9%), Melbourne (13.9%) and Canberra (22.6%).  Sydney and Melbourne alone have accounted for almost 58% of all capital city dwelling approvals over the year.
<img class="aligncenter size-full wp-image-3552" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-43.jpg" alt="Chart 4" width="500" height="180">
As noted earlier, there have been more unit approvals across the combined capital cities than house approvals. 
Over recent years around 98% of house approvals have ended up as completions compared to only 86% of unit approvals.  While units are increasing in popularity there is much less certainty about their ultimate construction than there is for houses. 
Across the cities Sydney had 68.8% of approvals for units and in the remaining cities the figures were: Melbourne (52.9%), Brisbane (56.0%), Adelaide (32.3%), Perth (23.8%), Hobart (11.2%), Darwin (58.7%) and Canberra (61.9%).
Despite the monthly fall, the pipeline of dwellings approved for construction is significant.  It is important to note that over the past five months, dwelling approvals have fallen on four occasions.  This may indicate that the sector has moved through the peak levels of dwelling approvals. 
The strong pipeline of unit approvals, particularly in capital cities, also carries a risk as units are less likely to be ultimately constructed than houses.
Nevertheless, the Reserve Bank stated that with low interest rates they didn’t just want to see higher house prices but also a construction response.  This certainly seems to be how the current conditions are playing out and with population growth recently starting to slow we may start to see an improvement in the alignment between home construction and population growth.
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Unit approvals surge, but uncertainty remains over their construction

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The recent leaks of the draft apartment design standards paper that looked to impose new minimum standards on apartments in Melbourne and across Australia, prompted some warnings that affordability would be impacted.
The changes, which<a href="/expert-insights/buying/no-more-shoebox-apartments-37-square-metre-minimum-size-under-victorian-government-consideration"> included new minimum apartment sizes of 37 square metres</a>, has seen Australian Institute of Architects national president David Karotkin say that minimums will protect consumers.
Karotkin said that the argument from developers is that design standards should be dictated by market forces, however pointed out that news articles are scarily showing that sub-standard dwellings are being rented – for instance Korean students paying $160 per week to live in Sydney shipping containers.
“In reality, developers are motivated by profit not affordability,” he said.
“They seek to build as cheaply as possible and to sell for as much as possible. Fair enough.”
For this reason, explained Karotkin, regulated minimum standards are necessary to protect the interests of occupants “long after the developers have taken their profits and moved on”.
“The current high demand for dwellings skews market forces in favour of developers seeking quick profits, so controls are required now more than ever to ensure we do not end up with a poor housing legacy,” he said.
However, he did note that he the Institute had not yet seen the new draft standards, but was aware that they are based on the NSW Residential Flat Code, which they support.
It would include the requirement to used registered architects to design multi-storey apartment buildings, a design review panel, and ongoing checks that the approved design is being maintained.
“The Institute supports the implementation of design guidelines that will result in improved living standards.
“Housing affordability can be achieved through innovative design by skilled architects,” he said.
He noted that affordability includes a number of things, including ongoing energy consumption and building maintenance, which are not costs that the developer pays.
Property professionals are invited to sign up for the <a href="/news">upcoming Property Observer webinar on Off the Plan Marketing and Sales Masterclass</a>.
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Market skewed in favour of developers chasing quick profits: Australian Institute of Architects

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Residential construction activity is expected to remain strong in the coming year following a considerable rise in new housing starts in the year to March 2014.
The value of new housing starts rose by 8.7% in seasonally adjusted terms in the March quarter compared with the previous three months, the Australian Bureau of Statistics reported. Compared with the March quarter of 2013, new housing starts were up by 22%, the ABS reported.
Housing Industry Association chief economist Harley Dale said the increase included a 12.8% surge in detached houses.
“The annual level of new dwelling commencements is at its highest since late 2010 and at 176,891 is approaching historical peaks, with further upward momentum to come,” Dale said.
Dwelling commencements increased in all of the states and territories, except South Australia, where housing starts fell by 7.8%.
The strongest increase was in the Australian Capital Territory (31.6%), followed by Victoria (15.4%), Western Australia (12.1%), the Northern Territory (5.9%), Tasmania (5.3%), New South Wales (2.5%) and Queensland (1.3%).
The value of residential building work done in the March quarter also rose, the ABS reported.
Residential building work done in the March quarter was up 7.6% compared with December quarter and up 8.5% compared with the previous March quarter, the ABS reported.
Forward sentiment indicators for the residential construction sector are also strong with the latest Property Council-ANZ Property Survey finding construction businesses expect strong activity in major metropolitan centres to continue over the next year.
Overall, expectations for the September quarter moderated, the Property Council-ANZ Survey found. That was in line with a decline in home building approvals data reported by the ABS.
The property sector remained optimistic about the outlook for the coming year, although construction activity expectations peaked in the June quarter, the Property Council-ANZ survey showed.
ANZ chief economist Warren Hogan said the industry’s optimism was driven by strong underlying housing market demand, a solid pipeline of building activity and expectations of further cyclical improvement in economic conditions.
The residential sector was still the strongest part of the industry with construction activity and price expectations buoyant even though price expectations had softened in line with lower auction clearances, he said.
“House prices now appear to be settling down to more sustainable growth rates. House prices are expected to rise over the next 12 months in every State except the ACT,” Hogan said.
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Residential construction activity going from strength to strength

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The housing shortage is a much-lamented problem and BIS Shrapnel’s latest Building in Australia 2014-2029 report suggests that we may continue to feel its effects for some years.
While a record-breaking recovery in housing construction was discovered to be underway and a new high of homes being constructed is expected to be reached – many of them in apartment towers – it will not close the housing shortfall until 2018 if their forecasts are correct.
BIS Shrapnel’s associate director Kim Hawtrey said that new housing starts are forecast to reach 190,000 in 2014/2015, surpassing 187,000 seen during 1994.
”In the next two years we’ll also see the recent emphasis on highrise units continue. Currently two highrise apartments are being built for every five detached houses, which is double the historical rate of one apartment for every five houses built,” said Hawtrey.
However, strong population growth has driven pent up demand, growing at 1.7% per annum.
“Home building has been punching below its weight for about a decade, and has not kept pace with population growth for some time now,” he said.
They estimate a deficiency of 100,000 dwellings at present. This is based on household formation per thousand head of population.
”We estimate that it will take the next five years to eliminate the unmet demand for housing. We therefore do not see this housing shortfall closing until 2018,” said Hawtrey.
This is even despite an expected slowdown in population growth.
”Investors and upgraders/downsizers are driving demand in this cycle,” said Hawtrey. “First home buyers are still largely on the sidelines.”
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