<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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

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

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

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

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

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

First Home Buyers

<html><body>
Lenders are flooding the home loans market with enticing honeymoon rate deals, which revert to much higher rates once the introductory period expires.
New data from RateCity.com.au shows there are more than two dozen lenders, and 71 variable home loan products, offering an introductory deal with some as low as 3.29 per cent for a six-month period before reverting to 4.79 per cent.
On a $500,000 30-year home loan this could result in monthly mortgage repayments being an extra $227, and over the life of the loan it could cost an extra $79,219 compared with a product offering a continuous rate of 4 per cent.
Peter Arnold, data insights director at RateCity.com.au, urged borrowers against being lured into these expensive products.
“These deals are basically a marketing ploy to get customers sucked into a longer-term deal,” he said.
“It’s also a trap for first homebuyers who are looking to get into the market desperately and aren’t thinking long term.
The majority of intro offers also charge high discharge fees to close the loan.
“There are 48 lenders currently offering ongoing variable rates under 4 per cent, and as low as 3.59 per cent,” he said. 
How a $500,00 intro deal stacks up over 30 years
 
<table class="x_MsoNormalTable" style="width: 539px; height: 96px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="280">
 
</td>
<td width="115">
Variable - low ongoing rate
</td>
<td width="110">
Variable - introductory rate
</td>
<td width="110">
difference
</td>
</tr>
<tr>
<td nowrap width="280">
rate (first 6 months)
</td>
<td nowrap width="115">
4.00%
</td>
<td nowrap width="110">
3.29%
</td>
<td nowrap width="110">
-0.71%
</td>
</tr>
<tr>
<td nowrap width="280">
Monthly repayment (first 6 months)
</td>
<td nowrap width="115">
$2,387
</td>
<td nowrap width="110">
         $2,187
</td>
<td nowrap width="110">
-$200
</td>
</tr>
<tr>
<td nowrap width="280">
rate (second 6 months +)
</td>
<td nowrap width="115">
                4.00%
</td>
<td nowrap width="110">
4.79%
</td>
<td nowrap width="110">
0.79%
</td>
</tr>
<tr>
<td nowrap width="280">
Monthly repayment (second 6 months +)
</td>
<td nowrap width="115">
$2,387
</td>
<td nowrap width="110">
             $2,614
</td>
<td nowrap width="110">
$227
</td>
</tr>
<tr>
<td nowrap width="280">
Total cost over 30 years
</td>
<td nowrap width="115">
$859,348
</td>
<td nowrap width="110">
 $938,567
</td>
<td nowrap width="110">
$79,219
</td>
</tr>
</tbody></table>
 
How a $300,00 intro deal stacks up over 30 years
 
<table class="x_MsoNormalTable" style="width: 556px; height: 55px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="280">
 
</td>
<td width="115">
Variable - low ongoing rate
</td>
<td width="110">
Variable - introductory rate
</td>
<td width="110">
difference
</td>
</tr>
<tr>
<td nowrap width="280">
rate (first 6 months)
</td>
<td nowrap width="115">
4.00%
</td>
<td nowrap width="110">
3.29%
</td>
<td nowrap width="110">
-0.71%
</td>
</tr>
<tr>
<td nowrap width="280">
Monthly repayment (first 6 months)
</td>
<td nowrap width="115">
$1,432
</td>
<td nowrap width="110">
         $1,312
</td>
<td nowrap width="110">
-$120
</td>
</tr>
<tr>
<td nowrap width="280">
rate (second 6 months +)
</td>
<td nowrap width="115">
                4.00%
</td>
<td nowrap width="110">
4.79%
</td>
<td nowrap width="110">
0.79%
</td>
</tr>
<tr>
<td nowrap width="280">
Monthly repayment (second 6 months +)
</td>
<td nowrap width="115">
$1,432
</td>
<td nowrap width="110">
             $1,568
</td>
<td nowrap width="110">
$136
</td>
</tr>
<tr>
<td nowrap width="280">
Total cost over 30 years
</td>
<td nowrap width="115">
$515,609
</td>
<td nowrap width="110">
 $563,140
</td>
<td nowrap width="110">
 $47,531
</td>
</tr>
</tbody></table>
 
</body></html>

jchancellor-FAypfDUnLy

Caution urged with honeymoon rates for first home buyers

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The ‘time to buy a dwelling’ index declined 2.7 percent following a 12.1 percent surge in May according to the Westpac–Melbourne Institute Consumer Sentiment report for June.
The report found a rise in risk aversion driven by a sharp drop in the number of consumers favouring ‘real estate’ as the wisest place for savings towards ‘deposits’.
<a href="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%203.02.53%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%203.02.53%20PM.png" alt="">
The biggest rise has been among 18-34 year old’s, renters and those on annual incomes of $60-100k, noted the report.
"Conversely, risk aversion has actually eased slightly for those aged over 55, those on low incomes, and those who own their homes without a mortgage," it said.
<a href="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.53.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.53.29%20PM.png" alt="">
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"The detail suggests views on ‘real estate’ are at the heart of the risk averse move with potential changes to tax policy the likely catalyst. The sub-groups driving the move are those that would be broadly seen as ‘prospective home buyers’.
"This in turn suggests the move could well reverse if next month’s Federal election results in no change. 
"Renters show a particularly sharp fall in the proportion favouring ‘real estate’ but with corresponding rises more evenly split between ‘deposits/super’ and ‘repay debt’.
"The skewed move towards ‘repay debt’ is even more pronounced for those on middle incomes but less so for 18-34 year olds."
<a href="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.54.52%20PM.png" target="_blank">Click to enlarge</a>
</div>
</div>
</div>
<img src="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.54.52%20PM.png" alt="" width="709" height="290">
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"The sub-groups that have seen risk aversion ease reported smaller falls in the proportion favouring ‘real estate’ and tended to see little or no change in proportions favouring ‘deposits/super’ but a slightly higher proportion favouring ‘repay debt’. "
</div>
</div>
</div>
<a href="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.56.28%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/04/Screen%20Shot%202016-07-04%20at%202.56.28%20PM.png" alt="">
</body></html>

jonathanchancellor-7SQnKwU6yx

Time to buy dwelling index dips: Westpac consumer sentiment update

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Over the last 25 years, home ownership rates have fallen sharply for young Australians.
Between 1982 and 2011, the home ownership rate for young adults aged 25 to 34 years dropped from 56 percent to 34 percent. Growing concerns about their home ownership prospects have prompted those in Generation Y (defined as 18-35 years for the purposes of this article) to become increasingly vocal about the difficulties of achieving home ownership.
This article draws on survey data from more than 4,300 respondents collected as part of the Bankwest Curtin Economics Centre Housing Affordability Report 2016. These findings highlight the housing affordability concerns of Generation Y.
The vast majority (86 percent) of Gen Y households living in the private rental sector or with their parents aspire to own a home, although not necessarily in the short term. Of these households, 30 percent believed they would be able to buy a home in the next two to five years. One-quarter believed home ownership was five to ten years away. Only 6% did not believe they would ever be able to buy a home.
Although many are choosing to delay home ownership as a lifestyle choice, others are forced to delay because of a lack of affordable housing options. Across all age groups, home owners were more likely to perceive their housing as affordable.
The survey reported that those living in unaffordable housing were making significant sacrifices to meet their housing costs. And 55 percent said sustaining high housing costs was leading to mental health issues, with those most affected in the private rental sector. This highlights the importance of affordable housing.
<h2>The ‘bank of mum and dad’</h2>
The deposit gap is the biggest barrier to home ownership. The survey calculated the average gap between the deposit currently available to an individual and the amount the individual expected to need for home purchase. This gap was around A$50,000.
Among Gen Ys already in home ownership, 38% reported they had received financial assistance from their parents or grandparents. For those yet to enter home ownership, only 17% expected to receive some assistance to buy. A further 24 percent indicated help might be offered.
Therefore, almost 60 percent of Gen Ys surveyed are unlikely to receive the benefit of intergenerational assistance. This may prevent them from ever entering home ownership.
Parental assistance to purchase
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<h2>Housing opportunities for ‘Generation Rent’</h2>
Assistance for home purchase is becoming more and more important for Gen Ys. They are being dubbed “Generation Rent” as the Great Australian Dream of home ownership moves further out of their reach.
Among Gen Y survey respondents, three-quarters rated the First Home Owner Grant and stamp duty relief as being important in helping them into home ownership. Even the scrapped first home saver accountsscheme was viewed as important. The generation is becoming increasingly reliant on these volatile demand-side incentives.
Importance of government assistance
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So what can be done to help those who wish to enter home ownership but lack financial support? Government-backed low-deposit loans such as Keystart in Western Australia and Homestart in South Australia, which are designed for those on low to moderate incomes, have made a real difference to thousands of households. Although not without risk to government, these type of loans could be introduced in other states.
Shared ownership products enable the purchaser and a third party to share ownership of the dwelling, which reduces deposit requirements and monthly payments. These are successful in the UK, accounting for 18% of total housing stock, and are growing in popularity in Australia under the schemes noted above. There may be scope for community housing providers to step into this sector in partnership with private developers.
Discounted home ownership is another option. This option could be tied to developer contributions as part of inclusionary zoning requirements. However, it must be structured in a way that ensures any discount on the market price is retained in perpetuity.
The National Rental Affordability Scheme had its critics but at least provided a supply of affordable housing that reduced the rental burden for many households. That, in turn, increased their chances of saving for a deposit.
The rental sector is in dire need of a replacement scheme, which could possibly be enhanced using a model whereby investors offering new rental dwellings below market rents for a defined period are eligible for stamp duty relief. The argument will be raised that this will encourage demand from investors, raising prices.
Ultimately, the only long-term solution to improve the home ownership prospects of young Australians is to change the imbalance between incomes and house prices.
It is more critical than ever for government to implement meaningful structural reforms that improve home purchase affordability for Generation Y. Otherwise, growing numbers of Gen Ys all over Australia face a lifetime of renting without the financial and emotional security of home ownership.
Steven Rowley is director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin University and can be contacted <a href="https://theconversation.com/profiles/steven-rowley-201914" target="_blank">here</a>.
Amity James is senior research officer, Curtin Business School, Curtin University and can be contacted <a href="https://theconversation.com/profiles/amity-james-272922" target="_blank">here</a>.
Rachel Ong is deputy director, Bankwest Curtin Economics Centre, Curtin University and can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here</a>.
All are authors for The Conversation.
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The key to home ownership for Gen Y

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The ABS April housing data suggests first home buyers are re-emerging, possibly filling the void of investors.
The value of lending to Australian housing investors fell in April, according to figure released by the Australian Bureau of Statistics (ABS) earlier today.
The value of investor lending was down 5 percent from March to $11.291 billion in seasonally adjusted terms.
The value of new lending to owner-occupiers ticked up by 0.1% to $20.702 billion.
The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 14.4 percent in April 2016 from 14.2 percent in March 2016.
Between March 2016 and April 2016, the average loan size for first home buyers rose $1,900 to $330,600.
The average loan size for all owner occupied housing commitments rose $4,300 to $361,500 for the same period.
At the end of April 2016, the value of outstanding housing loans financed by Authorised Deposit-taking Institutions (ADIs) was $1,490b, up $8b (0.5%) from the March 2016 closing balance.
Owner occupied housing loan outstandings financed by ADIs rose $7b (0.7 percent) to $960b and investment housing loan outstandings financed by ADIs rose $0.9b (0.2 percent) to $530b.  Bank housing loan outstandings rose $7b (0.5 percent) during April 2016 to reach a closing balance of $1,448b.
Owner occupied housing loan outstandings of banks rose $6b (0.7 percent) to $927b and investment housing loan outstandings of banks rose $0.9b (0.2 percent) to $521b.
Between March 2016 and April 2016, the number of owner occupied housing commitments (trend) rose in Victoria (up 51, 0.3 percent), South Australia (up 19, 0.5 percent) and the Australian Capital Territory (up 7, 0.7 percent), while falls were recorded in New South Wales (down 50, 0.3 percent), Queensland (down 24, 0.2 peace t), Western Australia (down 13, 0.2 percent), Tasmania (down 10, 1.2 percent) and the Northern Territory (down 2, 0.6 percent). The seasonally adjusted estimates rose in Victoria (up 314, 1.9 percent), Queensland (up 156, 1.5 percent), New South Wales (up 128, 0.7 percent), Tasmania (up 71, 8.4 percent), the Northern Territory (up 22, 7.3 percent), Western Australia (up 17, 0.3 percent) and South Australia (up 7, 0.2 percent), while a rise was recorded in the Australian Capital Territory (down 10, 0.9 percent).
The ABS housing finance figures released today indicated that new home lending to owner occupiers experienced solid growth during April, said the Housing Industry Association.
During April 2016, the number of loans to owner occupiers for dwelling construction increased by 4.4 per cent with loans for the purchase of new homes rising by 3.3 per cent.
Overall, new home lending saw growth of 4 per cent during the month but was 5.9 per cent lower than a year earlier.
“Today’s official figures confirm that demand for new home purchase across Australia remains very strong,” remarked HIA senior economist Shane Garrett.
“Even though the amount of new home lending for owner occupiers peaked over a year ago, current loan volumes remain elevated by historic standards.
"This means that activity on the ground over the remainder of 2016 will be healthy,” predicted Shane Garrett.
“May’s interest rate reduction is likely to provide some impetus to new home lending over the coming months."
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April housing finance shows first home buyers up slightly: ABS

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While home value rises have been moderate over recent years outside of Sydney and Melbourne, it provides little comfort for first home buyers in the two largest cities who struggle to compete with those that already own homes.
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In 2008, combined capital city home values fell by -6.1 percent in the space of 9 months. By the end of the year, home values had reached and began to climb thereafter.
The drivers of this growth was largely two forms of stimulus: aggressive interest rate cuts and a boost to the First Home Owners Grant (FHOG). Since the boost to the FHOG was removed and many of the existing grants were removed or scaled back, first home buyers have continued to languish at near record low levels. The harsh reality is that first home buyers are struggling to compete with those who already own a home or who are investing.
The first chart highlights the increase in home values across each capital city from December 2008 to April 2016. Another way to think about this is that if in December 2008 you owned a home worth $500,000 it is now worth $758,418 which is $258,418 more than in December 2008. Looking at this same calculation across each capital city, the increases in value over that time based on a $500,000 home owned in December 2008 are: Sydney ($400,825), Melbourne ($338,866), Brisbane ($73,417), Adelaide ($81,029), Perth ($64,096), Hobart ($11,263), Darwin ($109,293) and Canberra ($126,262).
<h3>Cumulative change in home values December 2008 to April 2016</h3>
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While the value of a home owner’s property has undergone massive rises, the increase in inflation and wages has been comparatively more sedate.
<h3>Cumulative change in CPI (inflation)  December 2008 to March 2016</h3>
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Although combined capital city home values have increased by 51.7 percent between December 2008 and April 2016, inflation has increased by a significantly lower 17.1 percent over the period. CPI has increased by a greater amount than values in Brisbane, Adelaide, Perth and Hobart indicating ‘real’ home values have fallen. Meanwhile in Sydney, Melbourne, Darwin and Canberra CPI growth has lagged that of home value growth.
Looking at wages growth between December 2008 and March 2016, it shows that nationally and in New South Wales, Victoria and the ACT it has lagged value growth across the capital cities. It should be noted that wages are now growing at the slowest pace in at least 18 years and that the increases highlighted do include strong wage increases in the latter part of the mining boom. Nonetheless, the data highlights that in NSW and Vic wages are increasing at a much slower pace than home values in Sydney and Melbourne are.
<h3>Cumulative change in Wage Price Index December 2008 to March 2016</h3>
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The final chart shows the change in the value of new lending (excluding refinances) to investors, owner occupier first home buyers and subsequent buyers between December 2008 and March 2016. The chart highlights how the value of lending to owner occupier first home buyers is now lower than it was in December 2008 across each state and territory. This has occurred despite the increase in home values over the timeframe. While lending to owner occupier first home buyers has fallen, lending to investors and subsequent buyers has increased in most states and territories with substantial rises in NSW and Vic.
<h3>Change in the value of new lending to investors, FHB and subsequent buyers December 2008 vs. March 2016</h3>
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While outside of Sydney and Melbourne home values have increased below or at a similar pace to inflation and wages, it is a very different story in the two largest capital cities. Existing owners of homes in Sydney and Melbourne have seen a significant increase in the ‘real’ value of their home. Subsequently those that do not yet own struggle to compete with investors and upgraders that have been so active in the market and already have significant equity.
The simple answer to this problem is that first home buyers in Sydney and Melbourne should look to buy properties outside of these cities however, that may be a little simplistic. Job creation has not been as strong outside of Sydney and Melbourne and for many moving interstate, employment opportunities are generally a big decision. Even buying outside of Sydney in nearby regional cities may not be attractive because transport infrastructure does not provide quick and efficient access to Sydney and Melbourne from nearby regional cities.
We certainly don’t advocate for the return of grants for first home buyers as they have tended to just push up the cost of housing. Prospective first home buyers are facing some tough choices as they compete with other segments of the market who may have larger budgets or a great deal of equity behind them thanks to a history of strong capital gains. Remaining (or joining) the rental market is one option that many may choose, considering weekly rents are down 0.2 percent across the combined capitals.
Those choosing to rent may decide to make their first home purchase an investment property in a location that is more affordable and better suits their budget. For those first home buyers looking to buy their first home to live in, their options will often be limited to the city outskirts if they are to purchase a detached dwelling, or compromising on space to live closer to where they work and play by choosing a higher density option.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Investors, owner occupiers making things tough for first home buyers: CoreLogic RP Data's Cameron Kusher

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The 50 percent stamp duty discount announced in the Northern Territory Budget will drive more first home buyers into the local market in Darwin and Palmerston says Glenn Grantham, general manager of Raine and Horne Darwin.
The discount applies to built properties valued up to $450,000 and is capped at $10,000 for more expensive properties until 30 June 2017. 
The first home buyer grant of $26,000 remains.
Grantham said since last week’s Budget, first home buyer enquiry levels had picked up significantly, with housing markets in Palmerston expected to be the major beneficiaries. “This announcement will create the perfect storm for first home buyers who will enjoy the benefits of reduced stamp duty, at a time where we’ve had easing house prices in Darwin and historic low interest rates,” he said.
“The stamp duty breaks are going to help more first timers to jump off the rental treadmill and we expect housing markets under $450,000 in established Palmerston suburbs such as Bakewell, Driver, Rosebery, Farrar, Grey, Malden and Durack to benefit.
“This will get more first home buyers into the market, which is excellent policy-making in light of the low volumes we’ve experienced over the last two years.”
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NT Budget helping first home buyers

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A new 15-level residential tower overlooking the heritage-listed Gasometer will come up in Brisbane's Newstead.
Gasworks Residences by Tom Dooley Developments will comprise 182 apartments over 14 storeys. Construction is expected to later this year, said a media release.
Some are two-bedroom apartments, but nearly half boast a multi-purpose room that could be used as a media room, office or third bedroom. Priced range from $525,000 to $1.15 million.
Designed by Shane Plazibat Architects, all of the apartments will have balconies between 16 sqm and 34 sqm, floor-to-ceiling glass and stone benchtops.
The rooftop area on the fifteenth floor features a 25-metre infinity pool, yoga terrace, gym, private sunken courtyards and an outdoor kitchen.
The ground floor will have 1,500 sqm of retail space. 
TDD managing director Tom Dooley said the suburb had strong appeal, particularly for local buyers looking to buy into the urban village lifestyle.
“Gasworks is really the epicentre of urban renewal in Brisbane, which is why we are building our second major development there," he said.
“Our first Gasworks development – Skyring – sold out in weeks. There’s plenty of interest in good quality, well sized apartments, particularly when they’re close to Brisbane’s best food, shopping and nightlife.”
Skyring is currently under construction in Newstead.
Dooley said initial sales were strong, driven by young professionals and downsizers in search of the urban village lifestyle.
More than 70 percent of Newstead households are couples without children or singles, with more than half aged between 25 and 44, said the media release.
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15-level apartment tower set to come up in Brisbane's Newstead 

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The Australian dream of home ownership is still relevant to millennials, but rapidly slipping out of their reach, research by leading Australian superannuation fund REST Industry Super reveals. 
The study, conducted earlier this year, of more than 1,000 Australians aged 18-34 revealed that a majority (87%) believe the Australian dream of home-ownership is just as important to them as it was for their parents. However, four in five (80%) are concerned they’re not on track to achieving the Australian dream.
More than half, 52%, say it is out of reach by the increasing cost of living and rising house prices.
But despite the affordability concerns, the desire to own property is still very apparent within this age group, with 55% saying they’d sooner save for a property than retirement.
REST Industry Super CEO Damian Hill said that while it was a good thing that young Australians were keeping an eye on their financial situation, it was just as important they plan for 50 years’ time, not just the next five.
“For people in their twenties, retirement can seem a long way off, but the reality is that this is the perfect time to start putting aside a nest egg for your retirement,” said Hill. “Even if you’re only able to put aside an extra 10 dollars a week through a voluntary contribution, this could provide an additional $48,000 extra in retirement income.”
The survey also probed the concerns of millennials whose parents’ retirement is approaching. It found that almost one in three (30%) of millennials are concerned they will have to give up work to look after their parents, or that their parents will come to them for money in retirement.
“It’s concerning to see so many millennials worried about the impact their parents’ retirement will have on their own financial wellbeing. I’d encourage millennials who are concerned about this to start putting a little extra into their own super, to make sure they don’t become a burden on their own relatives in retirement,” said Hill.
In addition, millennials surveyed said they were concerned about the long-term impact of rising living costs with over half (53%) believing that the increased cost of living meant they wouldn’t be able to save enough for a comfortable retirement. Further, 39% admitted they had absolutely no idea how they’d fund their retirement, while less than half (46%) were actually saving for their retirement, whether through compulsory superannuation or personal investments.
“If you’re one of the three in five young Australians who are concerned about how they’ll fund their retirement, the good news is that there are three simple steps every individual can take to get the most out of their super. Firstly, take your superannuation fund with you when you change job – this will ensure you don’t wind up paying two sets of fees which can eat away at your retirement savings,” said Hill.
“Secondly, if you do have multiple superannuation funds, or have lost track of a superannuation account from an earlier job, look into consolidating your superannuation with a single fund, which again can stop fees eating into your retirement.
“Thirdly, it’s worth checking in with your super fund to make sure you have appropriate insurance cover, as the total permanent disability and income protection cover offered by some funds could make a huge difference if you find yourself suddenly unable to work,” said Hill.
 
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Australian Dream of property ownership fading fast, REST survey reveals

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Combined capital city weekly rents increased 0.1 percent in April but fell by 0.2 percent over the 12 months to April, according to CoreLogic RP Data. 
Rents in Sydney increased 1.4 percent, Melbourne 1.7 percent, Adelaide 0.5 percent, Hobart 1.1 percent and Canberra 2.5 percent however large falls in Perth and Darwin, 8.9 percent and 12.6 percent respectively pulled down the combined capital figure.
CoreLogic RP Data's April Rental Index said rental rates across the combined capital cities are recorded at $486 per week and they are 0.2 percent lower than they were a year ago.
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"CoreLogic have been tracking annual rental changes since 1996, with the annual change in capital city rents now tracking at the lowest level on record. 
"At the same time last year rental rates had increased by 1.7 percent which indicates that the slowdown in rental growth has been sharp over the past year. Factors contributing to the slowdown in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth which have impacted on demand for rental accommodation. 
"With dwelling approvals having peaked at record highs and construction activity set to peak over the next 24 months accompanied by many new properties still to settle, it is anticipated that the weak rental market conditions will persist with rental growth continuing to slow and/or fall in most capital cities. Landlords will continue to have little to no scope to lift rental rates and may actually need to reduce rents in order to keep their tenants. Renters hold a stronger negotiation position and have the potential to upgrade into a higher grade of accommodation for a similar or potentially lower rental cost."
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Weekly rents continue to fall: CoreLogic RP Data

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Melbourne was approaching the peak of market for houses while being at the top for units in valuation firm Herron Todd White's April 2016 property clock, a simple broad brush means of indicating where property prices are and where they are headed to.
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The report also talks about Melbourne's fringes and their affordability compared with the inner city.
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Outer East 
Within the outer-east, fringe suburbs can be considered to be Kilsyth, Boronia, Mooroolbark and Bayswater North. Affordability is certainly one of the main factors driving a movement of purchasers from the inner-eastern suburbs to those on the fringes. 
The average price for property aggregated through Ringwood, Ringwood East, Mitcham and Wantirna for the December 2015 quarter was $858,250.
By comparison, the neighbouring fringe suburbs averaged 43.8% lower at $596,750 (source: REIV). The difference can partially be explained by the availability of good quality schools within the inner- eastern suburbs which has traditionally attracted more families and increased competition, thereby increasing average prices. While the middle eastern suburbs provide convenience in terms of access to the city and amenities, the resulting properties tend to be smaller. On the other hand, properties in the fringe suburbs tend to be on larger lots of land and offer purchasers further opportunities and scope for future development. 
Although the fringe suburbs may appear to offer good value for money, capital growth rates show that these suburbs may not represent a good short term investment. Bayswater and Boronia for example recorded capital growth of only 1.6% and 2.3% respectively in the 12 months to March 2016. By comparison, in the same period, Ringwood grew by 7.6%, while Wantirna South grew by 9.8%. However, from an investment point of view, rental demand for properties in the fringe suburbs has been high which has resulted in respectable yields of over 4%. 
In the long term, it would seem reasonable to expect the price gap between the middle eastern suburbs and the fringe suburbs to narrow as developers consider the abundance of large lots available in the fringe suburbs and therefore attract more potential purchasers who may have previously excluded such suburbs from their search criteria.
Examples of sales in fringe suburbs
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138 Liverpool Road, Kilsyth – sold for $515,200 on 10 March 2016 (land area 432 square metres, 4-bedrooms, 1-bathroom, 1-carport) 
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6 Freedman Avenue, Boronia – sold for $570,000 on 3 March 2016 (land area 930 square metres, 3-bedrooms, 1-bathroom, 1-car garage) 
Outer North 
The fringe dwellers of Melbourne’s north are in suburbs such as Greenvale, Craigieburn, Mernda and Doreen. These suburbs are situated within Melbourne’s outer ring. When looking at affordability in the north of Melbourne, middle suburbs such as Northcote, Brunswick, Thornbury and Preston are all having an impact. 
Quarterly median house prices in the inner north: 
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Northcote-$1,106,250 • Brunswick-$925,000 • Thornbury-$1,017,000 • Preston-$812,000 
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An increasing amount of home buyers are looking for more affordable properties in the north. Compare these median prices in the inner north to that in the outer ring of Melbourne. 
Quarterly median house prices in the outer north: 
• Greenvale:$655,000 • Craigieburn:$420,000 • Mernda:$455,000 • Doreen:$480,000 
Some of these outer north suburbs have experienced good growth in median prices in recent times. Greenvale had a quarterly change of 17.8%, and Mernda showed a change of 9.7%. Home buyers or investors need to be aware however that median prices are not always a true re ection of the growth of a suburb. Greenvale for example has recorded some high priced sales in recent times, which affects the median price. 
<img src="/images/2016/04/29/Screen%20Shot%202016-04-29%20at%205.39.06%20PM.png" alt="">
1 Lamark Court, Greenvale – sold for $1.285 million on 23 October 2015 (land area 4,094 square metres, 4-bedrooms, 3-bathrooms, 4-car garage) 
Weekly rent for three-bedroom houses in Craigieburn is $330, with a yield of 4.8%. Mernda is $333, with a yield of 4.6% and Doreen is $350, with a yield of 4.4%.
With a great amount of new housing development occurring in the outer north of Melbourne, it can be said that the oversupply will keep prices stable or even see them decrease in the short term. 
The outer north is more a long term proposition. The area will become more favourable with an increase in infrastructure such as public transport, schools and town centres. 
Outer West 
The western fringe suburbs of Melbourne have been increasing in popularity as more buyers make the decision to live or invest outside of the inner and middle metropolitan areas. There is an appeal for home owners buying bigger lots and building larger homes for their money. It isn’t just those getting in at the low end but buyers who take the opportunity to have a bigger home often with higher-end finishes and fittings in comparison to what they could buy with the same amount of money in the inner and middle metro suburbs. We are seeing steady and in some cases increasing demand for suburbs such as Tarneit and Wyndham Vale in the outer south-west along with Plumpton, Rockbank and Melton in the outer north-west. 
With the Melbourne population projected to almost double from its current 4.4 million to eight million by 2051, the development of fringe suburbs will need to continue in order to provide sufficient housing for Melbourne residents. 
A number of factors are at play for buyers choosing to enter the market in fringe suburbs, the biggest being affordability. Based on Real Estate Institute of Victoria (REIV) statistics, the metro Melbourne December 2015 quarter median house price was $718,000 and the median unit price was $537,500. In comparison, for the same period Tarneit median house price was $415,000, Wyndham Vale was $365,000 and Melton was $257,000. With median house prices in the outer suburbs being less than the median unit price in metro Melbourne, it is not surprising that so many are purchasing in fringe suburbs. As both owner-occupiers and investors are hunting for affordable options and better capital growth opportunities, looking further away from the city is becoming a common trend. Overall, the outer suburb median house price for the December 2015 quarter increased 2.9% to $559,000 and the median unit price rose to $425,000. 
These outer fringe suburbs are self-sufficient with amenities, schools and transport. While services and infrastructure has been lagging in outer suburbs compared to inner and middle metro areas, the Government has made this a priority due to the increased volumes of people moving to these areas and committed to updating the planning blueprint and allocating funds for community facilities in late 2015 with a focus on co-ordinating the economic and social infrastructure required. 
Those looking to invest are looking to the fringe suburbs in the hopes of finding a bargain that can return strong rental yields. Realestate.com.au advises the median rental return for Melton is $270 a week which equates to a 5.5% yield. Plumpton has a median rental yield of 6.7% and a median weekly rent of $385. Tarneit provides a lower rental yield with a median of $340 per week and 4.4%. 
Although there is demand for existing dwellings in some of the more established suburbs such as Wyndham Vale, Tarneit and Melton there is also strong demand for the new estates throughout the western fringe. With the large volume of englobo land in the west, it is a trend that can continue as long as there is demand. A large majority of these new estates is being planned and developed with various facilities or conveniences to enhance the lifestyle of residents including shops, cafes, schools, day care and sports and recreation amenities. The appeal of the strict design guidelines and presentation of the estates is considered attractive as it helps to create a pleasing and cohesive aesthetic. While some buyers may see it as a detraction to live in a uniform estate, others see it as a positive and prefer the consistency. The appeal of building a new home is continuing to be popular and in part driven by the restrictions on overseas buyers to invest in new dwellings. 
<img src="/images/2016/04/29/Screen%20Shot%202016-04-29%20at%205.40.40%20PM.png" alt="">
Source: rpdata.com 
14 Arawata Parade Melton – sold $221,000 on 8 November 2015 (land area 603 square metres, 3-bedrooms, 2-bathrooms, 1-carport) 
<img src="/images/2016/04/29/Screen%20Shot%202016-04-29%20at%205.41.55%20PM.png" alt="">
Source: rpdata.com 
42 Moorookyle Avenue, Tarneit – sold on 4 December 2015 for $310,000 (land area 365 square metres, 3-bedrooms, 2-bathrooms, 1-car garage)
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