<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

First Home Buyers

<html><body>
Perth's burgeoning property market is continuing to provide new off-the-plan developments suitably priced for first home buyers. According to the Housing Industry Association's (HIA) <a href="https://hia.com.au/foundation/-/media/HIA-Website/Files/IndustryBusiness/Economic/publications/affordability-report-extract.ashx?la=en&amp;hash=1D18CF3A2F7B99C3DB6F7B24968D59C71AEF15FC">quarterly housing affordability report</a> released earlier this year, house prices in Perth are at their most affordable rate in over 20 years. Baring this sentiment in mind, we took a look at the Urban's project database to discover some of Western Australia's most affordable properties. 

Here are 5 Perth apartments priced from $262,500.

<h2>#1 RIVERENA </h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/banner.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/banner.jpg?itok=JBmnXoY2" style="width: 580px; height: 301px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/apartment-slide-3.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/apartment-slide-3.jpg?itok=jEQaE3Z-" style="width: 580px; height: 393px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure>Developers: Finbar

Location: 5 Rowe Ave, Rivervale WA

For $299,000 you can get a 1-bedroom Riverena apartment which boasts an impressive 8-star NatHERS energy efficiency rating, noise and thermal protective double glazing and solar heating. The open-plan design offers modern living with special features including stone benchtops, glass splashbacks, refuse chutes and the choice of three different interior colour schemes.

<hr>
<h2>#2 AFFINITY AT THE SPRINGS</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/welcome-header.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/welcome-header.jpg?itok=aOjZct0z" style="width: 580px; height: 289px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/150623-affinity-living-to-city-light-upgrade-final-5000-cmyk.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/150623-affinity-living-to-city-light-upgrade-final-5000-cmyk.jpg?itok=39tD3j4i" style="width: 580px; height: 325px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure>Architect: Hillam Architects

Developers: Dragon Century

Location: 3 Hawksburn Road, Rivervale

The Hillam Architects-designed Affitinty apartments provide the perfect resort-style living only 3km from Perth CBD. Complete with pool, spa, cabana, gym, bbq, yoga zone and bike parking, Affinity’s exceptional amenity offering is a rare find for such affordable apartments, priced from $279,000. The apartments are perfectly positioned along Swan River, with stunning views of the city and beyond.

<hr>
<h2>#3 VICINITY APARTMENTS</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_12.jpg" rel="gallery-all" title="Credit: Frasers Property"><img alt="Credit: Frasers Property" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_12.jpg?itok=G9XhZbxS" style="width: 580px; height: 387px;" title="Credit: Frasers Property"></a>

<figcaption>Credit: Frasers Property Australia</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_1.jpg" rel="gallery-all" title="Credit: Frasers Property"><img alt="Credit: Frasers Property" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/print_97_12_junction_blvd_cockburn_central_1.jpg?itok=HEsMpjGq" style="width: 580px; height: 387px;" title="Credit: Frasers Property"></a>

<figcaption>Credit: Frasers Property Australia</figcaption></figure>Developers: Frasers Property Australia

Location: 2 Signal Terrace, Cockburn Central WA

Located only 30 mins from central Perth and 20 mins from Freemantle, Vicinity apartments are located in the Cockburn Living complex and offer one-bedroom apartments from just $262,500.

The apartments, delivered by Frasers Property, have been designed with a sustainable focus, featuring light sensors; WELS rated fixtures and Waterwise native landscaping and gardens; solar panels and energy-efficient lighting. Vicinity apartments also feature Smeg appliances, stone kitchen benchtops and air-conditioning.

<hr>
<h2>#4 PALMYRA APARTMENT ESTATE</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lawn-area-5k.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/lawn-area-5k.jpg?itok=xCqdJwzT" style="width: 580px; height: 326px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lifestyle-pool-render.jpg" rel="gallery-all" title="Credit: Finbar"><img alt="Credit: Finbar" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/lifestyle-pool-render.jpg?itok=aj2oclAF" style="width: 580px; height: 488px;" title="Credit: Finbar"></a>

<figcaption>Credit: Finbar</figcaption></figure>Developers: Finbar

Location: 45 McGregor Road Palmyra

Palmyra Apartment Estate is a low-rise collection of 5 buildings surrounded by lush landscaped gardens and exceptional communal amenity. On offer to residents is a 25-metre lap pool, commercial-grade gym, spa, sauna, residents lounge and pool table. The residence is located just 10 minutes drive from the Garden City Shopping Centre. Enjoy affordable luxury just 6 mins from Freemantle and 24 mins from Perth CBD from just $300,000.

<hr>
<h2>#5 VANTAGE</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/141013-riverdale-v01-street-final-2000_1520x2000_acf_cropped_1520x2000_acf_cropped-950x0-c-default.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/141013-riverdale-v01-street-final-2000_1520x2000_acf_cropped_1520x2000_acf_cropped-950x0-c-default.jpg?itok=WceTj-34" style="width: 580px; height: 763px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image_36.jpg" rel="gallery-all" title="Credit: Hillam Architects"><img alt="Credit: Hillam Architects" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/image_36.jpg?itok=STBxH3s-" style="width: 580px; height: 435px;" title="Credit: Hillam Architects"></a>

<figcaption>Credit: Hillam Architects</figcaption></figure>Architect: Hillam Architects

Developers: Edge Visionary Living

Location: 60 Riversdale Road, Rivervale

Vantage apartments are situated right on the riverfront and within walking distance to Perth Stadium and the CBD. Buyers are invited to choose from a selection of 3 luxury interior schemes. Each apartment features 2.7m ceiling heights, AEG appliances, reverse cycle ducted air conditioning and spectacular views from the city to the hills. Residents may book communal facilities such as the fully equipped theatre room for private events. One-bedroom apartments priced from $385,000.

 

Disclaimer: Prices are subject to availability and could change. <a href="/contact">Contact us</a> so we can put you in touch with the sales agent.
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Olivia Round

5 Perth apartments under $385k

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EXPERT OBSERVER
In the lead-up to the recent Federal election the Coalition announced the First Home Loan Deposit Scheme.
The scheme will provide up to 10,000 loans to first home buyers each year and will offer first home buyers better access to finance without having to save a 20% deposit.
Additional details about the plan include: The Scheme will be available to eligible first home buyers who have been able to save for a deposit of at least 5% up to 20%. This will mean that eligible first home owners will be able to purchase their own home years earlier than they would normally be able to do.
Also, they would not be required to purchase lenders mortgage insurance saving them approximately $10,000. The lender would still undertake the full normal credit check process on the borrower (meeting all their legal obligations) to ensure that the borrower is in a position to be able to afford the repayments.
If the borrower refinances or the loan comes to an end the Commonwealth support will terminate. The Scheme will support low and middle income earners across Australia. Support would only be available to first home buyers below a certain capped income level which is $125,000, or $200,000 combined income for a couple who are both first home buyers.
The income test would be based on the previous year’s taxable income to provide certainty. Support will also be targeted to entry properties, with a maximum loan size determined on a regional basis, reflecting the different property markets across Australia.
The first home buyer will be able to use the Scheme in conjunction with the First Home Buyer Super Savers Scheme (FHSSS) and State or Territory first home buyer grants and duty concessions. The Scheme will commence on 1 January 2020 and will be operated by National Housing Finance and Investment Corporation (NHFIC).
Support for borrowers could include guaranteeing approved applicants the additional loan amount taken out by the first home buyer to cover the difference between the amount of the first home buyer's deposit and 20 per cent of the value of the property. While there aren’t a whole lot of details about the plan there are some important things to consider with this plan.
1. Over the past 10 years there has been an average of 103,485 first home buyer finance commitments per annum. Given this, only around 10% of first home buyers will be able to access this scheme. 2. A 20% deposit is not actually required to take out a mortgage. Buyers can borrow with less than a 20% deposit. If they choose to do so, LMI is either an additional upfront cost or amortised into the mortgage amount. LMI is not transferable so if you choose to refinance or sell and purchase but still have less than 20% equity, LMI will be payable again. 3. The borrower will still need to pass normal credit checks. Over the past four years or so it has become increasingly more difficult to access a mortgage and borrowers participating in this scheme will still need to pass the normal credit checks. Given this, the scheme, as proposed, is not going to result in anyone that currently can’t access a mortgage to take out a mortgage. What it will mean is that people that already qualify for a mortgage can potentially avoid LMI and they can also purchase with a smaller deposit.
The scheme is positive in that it allows first home buyers to borrow with a smaller deposit and without LMI. The benefit of this is they can potentially own a home earlier. From a housing affordability perspective it is difficult to see how this policy actually helps.
Given that borrowers still need to pass usual credit checks, the only people that will have access to the scheme are those that could already purchase any way. While the scheme will help borrowers enter the market earlier, it seems unlikely that it will do anything to improve housing affordability.
If anything, it might increase demand from first home buyers and lead to higher prices within the price points that fit with maximum loan sizes which have not yet been determined.
Some more strategic alternatives to improve housing affordability can be found on the supply side via town planning reforms to allow for higher densities in high demand areas, improving accessibility to affordable housing markets via infrastructure upgrades and re-thinking inefficient taxation transactional taxes such as stamp duty.
CAMERON KUSHER  is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

Will the government’s first home loan deposit scheme really help FHB's? Cameron Kusher

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The good news for homeowners and investors has continued with the Reserve Bank cutting the official cash rate by 25 basis points to a historic low of 1.25%.
This decision follows hot on the heels of APRA calling on lenders to scrap the 7% mortgage interest rate test and the Federal Election result that has ensured that property tax benefits such as negative gearing and the 50% capital gains tax discount are maintained. 
Many of the offices I have spoken to or visited over the last two weeks are reporting their phones started ringing again on the Monday morning after the election.
This result underlines once again that consumers don’t like uncertainty.
The decision by the central bank today will have a similar result on buyer confidence and throw in the Federal Government’s new First Home Loan Deposit Scheme announced during the Federal Election campaign, and the short to medium term outlook for Australian property markets is much stronger than even a month ago.  
However, to achieve the intended impact of the easing, it’s imperative every lender passes the 25-basis point cut on to borrowers in full.
The RBA’s move will help affordability for first home buyers.
The caveat is that the banks must come to the party and pass this rate cut on in full.
First home buyers have all the power in the market right now. They have all the support from the government, the central bank, the lenders, and there are plenty of incentives aimed at first timers seeking to buy off the plan property.
However, the trouble is empty nesters don’t have the incentives to move, which is hindering the housing plans of upgraders and first-time buyers. 
We need governments to look at ways to provide last-time buyer incentives to help encourage the empty nesters to downsize. 
Tax incentives have been proven to work for first-time buyers. Now is the time to try to encourage empty nesters to move through tax incentives.
ANGUS RAINE is the Executive Chairman of Raine &amp; Horne
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j.ballantyne1990-6AQqhLzZaK

Rate cuts help affordability, but governments need to consider last-home buyer incentives: Angus Raine

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Next Tuesday the Reserve Bank of Australia are expected to cut the official cash rate for the first time since mid 2016.
Finder, Australia's most visited comparison website, has seen a huge uptick in first home buyers visiting their site as a result of the expected cut which would see the cash rate drop to 1.25%.
It has sat at 1.5%, a historic low, since August 2016, the last time the rate moved. 
Finder has seen a 55% rise in visitors to first home buyer guides so far this month compared to May 2018.
It’s the biggest spike in visitors to those pages in 12 months, according to Finder. Graham Cooke, insights manager at Finder, says first home buyers may finally get their opportunity to break into the market. 
“There’s a perfect storm brewing for first home buyers. Property prices are dipping, lenders are dropping their rates and a first home buyer’s scheme is on the cards. “After 31 months of no change, all signs are pointing to a cash rate cut next Tuesday. The expected move is causing a flurry of rate drops among lenders, especially on the fixed home loan front.”
Lenders are already lowering their rates, with 40 lenders dropping rates across 333 products in May.
BankWest, UBank, CUA, Greater Bank and ME Bank are among those that have cut rates.
The lowest variable rate on the market comes from Mortgage House's Home Loan Prime - Early Bird Rate Cut Special which is just 3.29%.
TicToc has the lowest fixed rate, offering 3.39% for one year.
Cooke urges property hunters to make sure they consider possible rate hikes down the track.   “While we’re on the verge of a new historically low cash rate, what all borrowers need to consider is that rates will – eventually – go up. With that in mind, you should always factor in a 2-3% buffer on top of your current home loan interest rate to accomodate for future rate hikes if and when they do happen."
 
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jrobinson-rf4aSBido9

First home buyers set to pounce as rate cut looms: Finder

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GUEST OBSERVATION
It won’t help enough, but it will get some people their keys. 
The new <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">First Home Loan Deposit Scheme</a> announced the Coalition, and <a href="https://theconversation.com/view-from-the-hill-quick-on-the-draw-labor-matches-morrisons-first-home-owners-scheme-116969" target="_blank">instantly backed by Labor</a>, is likely to be popular among those on the cusp of buying their first home.
It’ll be open to singles earning up to A$125,000 and couples earning up to A$200,000 who have saved at least 5% of the value of the home. The government-owned National Housing Finance and Investment Corporation will partner with private lenders to put up as much as another 15% of the value of the home to take the deposit to 20%.
However, the scheme is capped at <a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">10,000 home buyers per year</a>, roughly one tenth of the number of Australians who bought first homes in 2018.
It’ll help them - the latest survey shows that <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">more than half of first homebuyers</a> needed financial assistance outside of their own savings to get their deposit. The <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617" target="_blank">benefits of home ownership</a> have been widely documented. But will it do enough?
Source of deposits
<img src="https://images.theconversation.com/files/274299/original/file-20190514-60557-572nt0.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
<a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">Authors' own calculations from ABS Survey of Income and Housing 2013-14</a>
An often-expressed concern is that such a scheme will <a href="https://www.theguardian.com/australia-news/2019/may/13/first-homebuyers-scheme-who-gets-it-and-will-it-work-explainer" target="_blank">bid up house prices</a>. However, it is means-tested, making it much less vunerable to this criticism than the non-means-tested <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/hsaf/report/c09" target="_blank">First Home Owners’ Grant</a>.
And is also capped at 10,000 loans per year, giving it little scope to price pressure.
However, it may not be means-tested enough.
Consider the population subgroup that broadly comprises aspiring homebuyers who qualify for the scheme: renters aged 25-34 years who meet the scheme’s income criteria and whose financial wealth is between 5% and 20% of the lowest-priced quarter of houses for sale in the borad area in which they live.
In the most-recent <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">2015 ABS Survey of Income and Housing</a> there were 127,000 such potential eligible first home buyers, more than 12 times the 10,000 cap.
The cap is a practical necessity of course, needed to limit impacts on prices and prevent a cost blowout. But the weakness of the scheme is that the cap will be filled on a “<a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">first come, first serve</a>” basis, without distinguishing between those who actually need help and those who are likely to meet the deposit requirement anyway.
The graph shows that some 40% of potential first home buyers have managed to save a deposit amounting to not much more than 5% of the home value. Only 7% have a 20% deposit or something near it.
Potential users of the scheme, by amount of deposit saved
<img src="https://images.theconversation.com/files/274312/original/file-20190514-60567-1rjotju.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Deposit saved by renters aged 25-34 who meet the scheme’s eligibility criteria, per cent of lower quartile property prices in area of residence, 2015-16. <a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">Authors' own calculations from the ABS Survey of Income and Housing 2015-16</a>
The Coalition could get more bang for its buck within the cap by targeting those in greater need of assistance; for example by prioritising those who cannot access the so-called <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842" target="_blank">Bank of Mum and Dad</a>. Not everyone has access to wealthy parents.
The Great Australian Dream of owning a home has been fading fast, and not just for young people. Naturally, the scheme’s details of the scheme require scrutiny. But overall, it provides a welcome acknowledgement (by both major parties) that the affordability crisis facing young people has not waned despite recent house price declines.
The scheme will restore the opportunity – at least to some – to accumulate wealth in property and enjoy the <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617">security and other benefits</a> that home ownership brings.
But seriously addressing housing affordability will ultimately require a bigger intervention.<img src="https://counter.theconversation.com/content/117073/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482" target="_blank">Rachel Ong ViforJ</a>, Professor of Economics, School of Economics, Finance and Property, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073" target="_blank">original article</a>.
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The new home deposit scheme will help, and it’s unlikely to push up prices

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GUEST OBSERVATION
On housing, the contrast between the two major parties couldn’t be clearer.
The Coalition is still pretending that you can help first homebuyers without hurting anyone. Labor isn’t.
This matters, because Australian governments have been <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">pretending</a> for decades that there are easy and costless ways to make housing more affordable. And over that time the problems have become worse.
The Coalition’s First Home Loan Deposit Scheme is the <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">latest plan</a> that is supposed to arrest the decline in home ownership among younger Australians.
The Coalition’s First Home Deposit Scheme
Housing costs are a big problem for young people. Home ownership is <a href="https://theconversation.com/three-charts-on-poorer-australians-bearing-the-brunt-of-rising-housing-costs-87003" target="_blank">falling fast</a> in Australia, especially among the young and poor. Fewer than half of 25-34 year olds own their home today. Home ownership among the poorest 20% of that age group has fallen from 63% in 1981 to 23% today. At this rate <a href="https://theconversation.com/retiree-home-ownership-is-about-to-plummet-soon-little-more-than-half-will-own-where-they-live-115255" target="_blank">almost half of retirees</a> will be renters in 40 years time.
Saving a deposit is the <a href="https://insidestory.org.au/why-should-we-care-about-housing-affordability/" target="_blank">biggest hurdle</a>. In the early 1990s it took six years to save a 20% deposit on the average home. Today it takes 10 years. That’s bad news for younger Australians without access to the “<a href="https://www.smh.com.au/politics/federal/house-prices-even-the-head-of-the-treasury-is-becoming-a-mum-and-dad-bank-20161019-gs5ii5" target="_blank">Bank of Mum and Dad</a>”.
The Coalition’s new plan seeks to arrest the decline by lending would-be buyers up to 15% of the purchase price, provided they’ve saved at least 5% for themselves.
It would also mean that single first home buyers on less than $125,000 a year, or couples earning less than $200,000, could <a href="https://www.yourmortgage.com.au/calculators/mortgage_insurance/" target="_blank">save</a> $10,000 or more by not having to pay the <a href="https://www.anz.com.au/personal/home-loans/first-home-buyer/guide/key-things-you-need-to-know-about-lenders-mortgage-insurance/"></a><a href="https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/fees" target="_blank">lenders mortgage insurance</a> that is normally required when a purchaser has a deposit of less than 20%. There would be a cap on the value of homes purchased through the scheme, still unannounced, which would vary by region.
The Coalition is budgeting just $500 million for the guarantees. Labor was quick to <a href="https://theconversation.com/view-from-the-hill-quick-on-the-draw-labor-matches-morrisons-first-home-owners-scheme-116969" target="_blank">match</a> the scheme, partly because it doesn’t cost very much (unless there are unexpected losses).
Most likely, the scheme won’t have much impact.
It would increase home ownership, but only a little. It might also push up prices – but by even less. Some people saving for their first home might buy earlier. Others just priced out of the market at the moment could afford to pay a little more for a house given that they would not have to pay lenders mortgage insurance.
Most of those taking up the scheme would probably have bought anyway. Those with access to the Bank of Mum and Dad already have already been able to use such a scheme. And the income thresholds are set too high, cutting off only the top 10-15% of income earners. The New Zealand <a href="https://www.govt.nz/browse/housing-and-property/buying-or-selling-a-home/buying-your-first-home/" target="_blank">scheme</a>, upon which the Coalition’s plan is based, cuts out at incomes of only $85,000 for singles or $130,000 for couples.
The biggest barrier for many first home owners isn’t the deposit. Their problem is <a href="https://www.afr.com/opinion/when-responsible-lending-becomes-a-credit-slowdown-20190130-h1ant1" target="_blank">qualifying</a> for a mortgage when banks assess their ability to repay the loan assuming an interest rate of 7%, much higher than the typical 4%.
The Coalition has capped uptake at 10,000 loans every year, or about one in every ten loans (based on loans last year to first homebuyers). Even if none of them would have bought a home without the scheme (most unlikely), home ownership would be only 1% higher in a decade’s time.
But a bigger scheme might well be worse. If it “succeeded” in rapidly expanding demand from first home buyers, it would push up prices for everyone, not least all the other first home buyers trying to get into the market. Instead of being ineffective, it’d become counterproductive.
And the bigger the scheme, the greater the risks of <a href="https://www.theage.com.au/business/banking-and-finance/home-loan-scheme-could-increase-negative-equity-risk-economists-say-20190512-p51mke" target="_blank">dodgy lending</a>, which could leave the government on the hook if buyers default.
The underlying problem with the Coalition’s latest plan – like the First Home Super Saver Scheme it introduced in 2017, or the Howard and Rudd Government’s first homeowners grants – is that it tries to fix the housing affordability problem by adding to demand for housing.
Because it costs the budget less, the new scheme is less bad than its predecessors. But it shares their critical flaw: it pretends we can make housing more affordable without hurting anyone.
Its political virtue might be that it sends a signal to first home buyers that government is on their side.
Yet the Coalition <a href="https://www.news.com.au/finance/economy/australian-economy/experts-warn-of-glaring-issues-with-new-first-home-buyers-scheme/news-story/79b2fb2992b074104a6defc43730659a" target="_blank">won’t pursue</a> the one thing happen that would actually help home buyers the most: letting housing prices fall.
Labor’s negative gearing plan
Labor’s plan to abolish negative gearing on existing homes and halve the capital gains tax discount creates losers.
Labor would prevent new investors in existing homes from writing off the losses from their property investments <a href="https://alp.org.au/policies/reforming-negative-gearing-and-capital-gains-tax-arrangements/" target="_blank">against the tax they pay on their wages</a>. And investors would pay tax on 75% of their gains, up from 50% now.
Its plan takes away tax breaks worth $1 billion to $2 billion a year in the short term, and <a href="https://www.alp.org.au/media/1878/2019_labor_fiscal_plan.pdf" target="_blank">more</a> in the long term.
Existing homeowners would lose a little: The Grattan Institute <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">estimates</a> that house prices would be 1% to 2% lower under the Labor plan. The <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/news/2018-01-08/govt-negative-gearing-claims-contradicted-by-official-advice-foi/9309736" target="_blank">Commonwealth treasury</a> and <a href="https://theconversation.com/confirmation-from-nsw-treasury-labors-negative-gearing-policy-would-barely-move-house-prices-116736" target="_blank">NSW treasury</a> have reached similar conclusions.
Prospective investors who had planned to buy and negatively gear an existing house would miss out on a lot. Some might buy anyway, others wouldn’t. Despite the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-11-16/fact-check-negative-gearing-under-80000/10387552" target="_blank">noise</a>, the bulk of these people would be among the <a href="https://www.smh.com.au/politics/federal/negative-gearing-changes-will-affect-us-all-mostly-for-the-better-20190208-p50wjn" target="_blank">top 10%</a> of income earners.
By reducing investor demand for existing houses, Labor’s policy could provide a genuine boost to “genuine” home ownership, by owner occupiers. Fewer investors would mean more first home buyers winning at auctions.
Recent <a href="https://insidestory.org.au/what-comes-after-the-housing-boom/">restrictions</a> on lending to investors imposed by the Australian Prudential Regulation Authority have already resulted in an <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5601.0Feb%202019?OpenDocument" target="_blank">increase</a> in the share of lending to first homebuyers. Labor’s policies would accelerate it.
The bottom line on housing? Changing rules on negative gearing and capital gains tax is more likely to increase home ownership than guaranteeing part of the deposit.
But no policy proposed in this Commonwealth election affects the really big lever for home ownership: <a href="https://theconversation.com/to-make-housing-more-affordable-this-is-what-state-governments-need-to-do-105050" target="_blank">increasing housing supply</a>.
Brendan Coates, Fellow, Grattan Institute
John Daley, Chief Executive Officer, Grattan Institute
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-brutal-truth-on-housing-someone-has-to-lose-in-order-for-first-homebuyers-to-win-117010" target="_blank">original article</a>.
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The brutal truth on housing: Someone has to lose in order for first home buyers to win

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GUEST OBSERVATION
The Coalition has put forward a scheme to help first home buyers get into homes, under which the government will <a href="https://www.liberal.org.au/our-plan-support-first-home-buyers" target="_blank">underwrite a loan of 15% of the value of the home</a>, to be treated as part of their deposit, taking a deposit of 5% up to 20%. Labor adopted it within hours of the announcement on Sunday, meaning that in one form or another it seems likely to become part of housing policy.
Home ownership benefits from significant tax advantages, which are at their strongest when owners have built up their equity. Partly for that reason, it has always been a major pillar of savings for Australians. But the benefits tend to be priced into the cost of housing, which helps explain why it is so expensive. Yes, it is not only those pesky investors.
Home prices are high because of tax breaks…
Blaming investors for this situation can be politically acceptable, but blaming homeowners more broadly or even hinting that tax advantages are to blame is political poison.
Blaming an insufficient supply of new houses is also unacceptable as it can be portrayed as a cop out, even though it is probably the biggest factor explaining the high cost of housing in Australian cities and cities in other countries and states such as Canada and California. In any event it is seen as a “states issue”.
This means the first point to make is that efforts to assist first home buyers are second-best options. Given that we are not tackling the problems we’ve got, whatever things we do do won’t be perfect.
…and an insufficient supply of homes
The latest proposal isn’t the first or only measure directed at first home buyers. The first home buyers grant introduced in 2000 as part of the goods and services tax package was similar but, at <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview200910/Housing" target="_blank">A$7,000</a>, on a smaller scale. State government concessions on conveyancing tax have also helped.
These measures have been criticised as simply putting upward pressure on prices, and as a result not benefitting first home buyers. This criticism is not correct. They benefit first home buyers by much more than they push up prices. They would only harm first home buyers if all buyers got the concession and it didn’t result in extra houses being built.
Neither is the case.
It is possible to help first home buyers…
In recent years we have seen a substantial supply response which should have put to rest notions that the market does not respond to shifts in demand. And first homes don’t make up that much of the market; <a href="https://to.ly/1yXXK" target="_blank">less than 20% of buyers overall</a>, although more in some sectors.
Measures to help first home buyers do have an upward impact on prices, but nothing like to the extent that they help first home buyers.
They hurt people swapping homes. They have to pay marginally more, as do investors, meaning renters have to pay more.
The major concern with the proposal is the risk that buyers might enter the market and then get into trouble.
…but they’ll need to be careful
One of the big problems in the US in the lead-up to the global financial crisis (GFC) were policies designed to get low-income households into the market.
When the GFC hit, they were the biggest losers. So policymakers will need to be very wary in designing the policy.
First home buyers will win, but they will need to be cautious.
Housing is not risk free. House prices can fall as well as rise, as recent history has confirmed only too well.
Nigel Stapledon, Research Fellow in Real Estate, Centre for Applied Economic Research, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/that-election-promise-it-will-help-first-home-buyers-but-they-better-be-cautious-116993" target="_blank">original article</a>.
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The Coalition's election promise will help first home buyers, but they better be cautious

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The Prime Minister’s plan to help first-home buyers purchase with only a 5% deposit could have a major impact on the broader economy, says one property group. 
The First Home Loan Deposit Scheme, adopted from New Zealand’s Welcome Home Loan program and announced by the Prime Minister Scott Morrison at the Liberals’ formal campaign launch in Melbourne last week, will mean first-home buyers, who have been able to save a deposit of at least 5%, will be able to access a government guarantee for the remainder of up to 20% of a property’s value.
It will also remove the costs of paying lenders’ mortgage insurance.
The scheme will offer up to $500 million in equity through the National Housing Finance and Investment Corporation, would start on January 1, 2020, and be capped for individuals earning $125,000 and couples earning $200,000.
Labor has said it will match the Coalition plan, stating it could afford to do so as it was “closing loopholes” for the wealthy.
RiskWise Property Research CEO Doron Peleg said the Coalition’s First Home Loan Deposit Scheme would support the market instead of further weakening it.
“Although the number of loans is expected to amount to around 10,000, when you take this amount and add in the saving of the LMI, potential interest rate cuts and the flow-on effect on upgraders, this could support particularly affordable markets that are more appealing to first home buyers,” he said.
“Also, the Prime Minister has said he would like to run the scheme through second tier lenders and this will further improve the position of non-bank lenders in the market.”
Peleg said Labor’s proposed taxation changes, to limit negative gearing to new homes only and cut capital gains tax from 50 to 25%, would have “unintended consequences” and further impact an already weak housing market.
“The property market has been experiencing ongoing weakness,” he said.
“Tighter lending standards, the findings of the Banking Royal Commission, political uncertainty, fears of the potential changes to negative gearing and capital gains tax, restrictions on foreign investors, unit oversupply and large falls in dwelling commencements have all had a material impact."
 
 
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Coalition’s First Home Loan Deposit Scheme would support the market: RiskWise

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There were 2300 first home buyers (FHBs) in March across NSW.
The average NSW FHB spends about $465,000 on their purchase, based on the commonly expected 20% deposit and ABS data showing a typical $387,000 NSW mortgage.
There is a lower $359,000 average mortgage in Victoria and $300,000 in Queensland.
The typical Australian first home buyer $342,000 mortgage is around 25% lower than the $462,000 non-first time owner occupier buyer's mortgage.
The ABS data also highlights the price gap between capital cities and the regions.
Sydney established detached house prices sit at around a $900,000 median, with houses in the rest of the state coming in at $466,000.
It is $700,000 for Sydney attached dwellings (terraces, semi and units) with the rest of NSW having a $405,000 median attached dwelling purchase price.
The gap is narrow in Queensland with established detached houses costing $530,000 in Brisbane against $430,000 in the rest of Queensland.
In Victoria, established Melbourne homes cost $705,000 slightly more than double the $350,000 in the rest of the state.
Prime Minister Scott Morrison's proposed deposit guarantee scheme will seek to pioneer a differential recognition of prices across the nation in deciding what priced homes will qualify.
It will have an as yet to be determined different cap on home purchases eligible for the scheme which will underwrite the topping up of buyers with just a 5% deposit who find lenders prepared to lend to them.
The current grants fully fund purchases up to $650,000, petering out on an $800,000 purchase.
The new scheme is likely to attract buyers to think about hiding to the regions and also into apartments in the city.
Urban Taskforce CEO Chris Johnson noted the average apartment in Sydney is likely going to be $400,000 cheaper than the average house.
"So many younger people, including families will see the benefits of a new type of living where they share large gardens, share swimming pools that they don’t have to maintain and often have child care centres next door.”
During March, first home buyers enjoyed the largest share in the Northern Territory, with 42% of owner occupier housing loans.
This was followed by Western Australia (36%), Victoria (30%) and Queensland (27%). 
FHB participation was lowest in Tasmania (20%), followed by South Australia (21%), the ACT (22%) and New South Wales (24%).
With more than 500 first home buyers over the past year, the 2170 Liverpool postcode retains its status as NSW's biggest beneficiary of government grants.
Over 11,000 Liverpool buyers have secured grants to get themselves onto the property ladder since the FHOG's commencement in 2000, introduced in the wake of the goods and services tax.
The outer ring south western buyers have secured $11.7 million in grants and concessions over the past year, and $213 million in the past 19 years.
The median Liverpool house price currently sits at $740,000, with its median unit price $440,000.
Westmead and Campbelltown follow as next busiest FHB hotspots.
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How will the price difference between capital cities and regions impact the new FHB policy?

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The first home buyers' deposit guarantee innovation, unveiled by Prime Minister Scott Morrison, is perfectly pitched at the impatient first home buyer generation.
It will turbo-charge their entry into the property market with a government scheme partnering with private lenders offering finance for approved buyers.
The First Home Loan Deposit Scheme will be available, from next January if either the Coalition or Labor wins the federal election, for new home buyers who have got a 5% deposit, which is the easy bit.
They will get government backing to make up the 20% house deposit typically required by lenders.
The scheme is based on the valid belief it is the deposit gap rather than the size of mortgage payments that is the real barrier to home ownership.
The government backed National Housing Finance and Investment Corporation will guarantee the difference between the lower deposit and the 20%.
The scheme will also help first home buyers save around $10,000 by not having to pay lenders mortgage insurance.
The scheme, adopted from a 2015 New Zealand scheme, would allow singles earning less than $125,000 a year and couples earning less than $200,000 a year to get into the housing market in quick time.
Past schemes, including the first home super saver (FHSS) scheme, have simply been too slow in achieving outcomes. 
The $500 million scheme is set to be initially capped at 10,000 loans annually, about one tenth of the market. 
Some 110,000 bought their first home in 2018, which was the highest level in nine years.
But the latest NSW figures for March show the lowest number in two years.
The value of homes that can be purchased under the scheme will be capped on a regional basis, reflecting different markets across Australia.
Although it has fallen in recent months, an entry-level Sydney apartment costing $560,000 takes around five years and four months savings for a 20% deposit, some 16 months longer than in Melbourne and two years longer than the equivalent in Brisbane.
"With the banks pulling back and larger deposits of 20% now being standard, it is not getting easier," Morrison said.
"The lenders would still be the ones lending the money. They would still do all the normal checks on the borrowers to make sure that they can meet their repayments – this isn’t free money."
There will be a small risk for the government having first time borrowers with higher indebtedness especially if the market continues to fall.
No official figures are kept on first home buyer arrears or distressed sales, but the even more cautious big four banks maintain overall arrears levels across NSW remain very low given the low interest rate landscape.
The government support would stay in place for the life of the loan, until its sale or until the value of the property rises to a point where they choose to refinance.
The First Home Loan Deposit Scheme will start on 1 January next year, the same date that Labor has said it would start its grandfathered negative gearing scheme to assist affordability.
The proposed Coalition policy won't impress those who don't support market intervention by government, but there has been some $10.3 billion in benefits since 2000 when the First Home Owners Grant scheme was introduced to help first-home owners to offset the effect of Goods and Services Tax.
This article first appeared in The Daily Telegraph. 
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