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

Joel Robinson

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

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

Fortis continues eastern suburbs push with 55 William launch

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

Arada plots $2 billion Broadbeach towers in major Queensland move

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

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

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

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

First Home Buyers

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Mark Mendel, CEO of iBuyNew, the largest facilitated market place for off the plan buyers in Australia, believes we should double stamp duty for foreign buyers.
The potential revenue increase should be used to reduce stamp duty for first home buyers (FHBs).
Mendel believes foreign ownership of Australian property is relatively inelastic.
“The application fee for foreign buyers does not go far enough in my opinion" said Mendel.
"We should look to double stamp duty for foreign property buyers and use this increased revenue to reduce stamp duty for first home buyers.”
“The current overreaction from many in the industry that the proposed application fee will affect foreign ownership of property in Australia is grossly misstated.
“From my experience, the motivation for overseas investors to buy property in Australia is to move funds into a politically stable economy.
"An additional application fee does not change this.” 
iBuyNew has sold over 400 properties worth over $170 million since launching and has over 1,500 apartments available.
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jchancellor-FAypfDUnLy

Double stamp duty for foreign buyers and reduce it for FHBs: Mark Mendel

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CoreLogic RP Data have released a list of the most affordable capital city suburbs in Australia.
Unsurprisingly, given their respective placings at the bottom of capital city home values, Hobart and Adelaide suburbs make up the entire top 10 list.
Suburbs on the eastern shore of the Derwent River were the most affordable in Hobart, while Adelaide's northern Playford region hosts the city's cheapest suburbs for houses.
Top 10 most affordable capital city suburbs for houses
<ol>
<li>
<a href="/news">Gagebrook</a>, Brighton, Greater Hobart, TAS Median Value: $136,649 
</li>
<li>
<a href="/news">Herdsmans Cove</a>, Brighton, Greater Hobart, TAS Median Value: $139,664 
</li>
<li>
<a href="/news">Clarendon Vale</a>, Clarence, Greater Hobart, TAS Median Value: $158,883 
</li>
<li>
<a href="/news">Bridgewater</a>, Brighton, Greater Hobart, TAS Median Value: $169,691 
</li>
<li>
<a href="/news">Risdon Vale</a>, Clarence, Greater Hobart, TAS Median Value: $173,468 
</li>
<li>
<a href="/news">Elizabeth North</a>, Playford, Adelaide, SA Median Value: $174,191 
</li>
<li>
<a href="/news">Davoren Park</a>, Playford, Adelaide, SA Median Value: $178,657 
</li>
<li>
<a href="/news">Smithfield Plains</a>, Playford, Adelaide, SA Median Value: $184,904 
</li>
<li>
<a href="/news">Elizabeth Downs</a>, Playford, Adelaide, SA Median Value: $193,780 
</li>
<li>
<a href="/news">Elizabeth South</a>, Playford, Adelaide, SA Median Value: $196,362
</li>
</ol>
Source: CoreLogic RP Data
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jake-cSmGT7VXVf

No surprise: Australia's cheapest capital city suburbs

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Hi Margaret,
My name is John and I am first home buyer living in Sydney's west.
I am very confused about buying property because of high rates. We are newly married young couple and We can't afford $600,000 property but we don't see any good property in our area under this price. I
I am very confused; for some time I have been considering moving to Melbourne - we can buy a new house there for $400,000.
Can you suggest something what should we do? Do you think moving to Melbourne is going to be a good move or not? Regards,
John
Hi John,
It’s understandable that you feel that prices have risen so much that you are now priced out of the market. 
I’m guessing that, in order for you to live in an area that you see as suitable in terms of its proximity to your work, family and friends, you have to pay $600,000 and so are not willing to consider starting smaller, with say a unit in an area which may require some commute.
At $600,00 plus fees and buying costs, with a 5% deposit, you would be looking at around $690 a week in repayments.
If this is out of your price range and considerably more than you are paying in rent payments, what may be needed is a change of thinking.  While the 'Great Australian Dream' is to own your own home, I feel it is time that young people have a considerable paradigm shift and begin to think differently.
For the older generation, home ownership was crucial as their parents suffered through the unsure times of the Great Depression, where no one could really afford their own homes.  To avoid the same fate, this generation bought their own homes, paid them off over 25 years and then waited for the gold watch upon retirement and lived on the aged pension.
Today we are far more informed and many understand the important need to consider more than just home ownership.  As such, many also invest, in a variety of assets, with residential property being very popular.
What I am now suggesting to you is that, rather than think of property ownership as meaning that you must buy a property in which to live, why not consider the more achievable prospect of jumping on the property ladder by becoming a landlord? 
There are many benefits to this, including:
<ul>
<li>You are free to buy property anywhere in Australia, and can access some great, affordable markets where property is still under $300,000.  These markets have great growth drivers and will appreciate over time, adding to your net worth and, in a sense, boosting your savings through equity growth; 
</li>
<li>Many of these markets have high rental yields – often over 6%, and with rates so low, the rent, plus your tax breaks, is highly likely to cover all costs and loan interest payments; 
</li>
<li>You can buy as many investment properties as you like and, as long as you do not live in them, still have access to any future government First Home Owner’s Grant (at the time of writing), and 
</li>
<li>You can rent where you want to live – and in a market like Sydney, where rental yields are relatively low, renting can often be almost half the cost of making a mortgage repayment.</li>
</ul>
There is little to criticise about this strategy, which is one which allows you to stay living where your family and work are, but still create wealth with property by buying elsewhere. 
To get started, you must learn more about how to buy well, by completing a good course (offered by someone who doesn’t have the <a href="/news/property-experts-warn-that-spruikers-out-in-force-in-hot-market">agenda to also sell property to you</a>) and read as much as you can to ensure you know how to chase down those strong yield, good growth, affordable markets!
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I get on the property ladder?

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Federal Liberal MP Kelly O'Dwyer says there is "no one silver bullet" when it comes to housing affordability.
However, at speech made today to the Committee for Economic Development of Australia (CEDA), O'Dwyer, who stood as the chair of a Federal Parliamentary inquiry into the role of foreign buyers in Australia's property market, noted the role of foreign investors in increasing housing supply.
"One of the most critical things I think that the government can do is make sure that we encourage foreign investment," she said.
O'Dwyer said foreign investment was "absolutely critical" to the supply of new dwelling stock and alleviating price pressure.
"This is something that the house standing committee on economics heard a lot about.
"We received evidence from not only economists and academics but also the Reserve Bank of Australia, who said that if you can increase dwelling stock, this has an impact on price... you can keep costs reasonably contained."
O'Dwyer answered questions to CEDA members following a speech on foreign investment, where she invoked the classic Australian comedy The Castle, referencing Australia's enthusiasm for home ownership. Having earlier commented on the Foreign Investment Review Board's (FIRB) lack of action on breaches of current regulation, which requires most foreign buyers to only purchase new housing stock, O'Dwyer noted the opposite effect that foreign investors can have in the established housing market.
"Now, when it comes to existing dwellings, it's somewhat different," she said.
"When there is restricted supply and increased competition, that will also have an impact on price."
O'Dwyer did, however, maintain that the issue of affordability remains a complex one.
"Now, I don't think it's the government's role to determine the price of people's home. It's the government's role to make sure the policy settings are broadly right, so that we encourage new dwellings to be constructed, so that we make sure that there are options for people... to purchase, to rent, or to build themselves.
"And this is a really complex equation. There is no one silver bullet to housing affordability, but we have to look at all these elements combined in order to make sure the dreams of particularly young Australians, to be able to purchase or own their own home – are still going to be a reality for them as they were for their parent's generation."
While O'Dwyer stressed the number of different factors affecting housing affordability, Prime Minister Tony Abbott <a href="/expert-insights/buying/tony-abbott-suggests-foreigners-pricing-out-young-home-buyers">also commented earlier this week</a> on his plans to tighten regulation around foreign investment to protect first home buyer's, saying "obviously, the last thing we want to be doing is pricing young home buyers out of the market".
 
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jrichardson-uRX5hFdKfN

Foreign investment "absolutely critical" to increased housing supply: Kelly O'Dwyer

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Sellers are loosening their grip around the property market, according to research from LJ Hooker.
However, the real estate agency's latest Buyer/Seller Index has shown that the national market remains well and truly in favour of sellers.
While there was a 13% increase in stock on the market over the December quarter, buyers "easily absorbed" the new stock. The the period marked the 10th consecutive quarter deemed a sellers market by LJ Hooker.
LJ Hooker National Research Manager Mathew Tiller said the Reserve Bank's rate cut actions would have a strong influence on the Buyer/Seller Index.
"If the RBA lowers the cash rate again, then that will further stimulate buyer demand, increasing the weighting in favour of sellers,'' said Tiller.
"But a stable period of interest rates will see demand remain consistent, and continue the Index's course toward a balanced position, as new listings rise and lower economic growth impacts demand.''
According to LJ Hooker's head of real estate, Christopher Mourd, the new uptick in listings reflect seller confidence.
"There are two things currently driving property owners to sell: increased market exposure, thanks to the number of people wanting to buy; and acknowledgement that the rate of price growth in many areas has peaked, and is beginning to slow,'' said Mourd.
"Home owners wanting to upgrade to something that better suits their current lifestyle or aspirations want to transact at a time that offers the best conditions for them and, as the Index has shown, that advantage is closing.
"The feedback from our offices is that buyers are still eager and this weekend's auctions will be a good barometer of any influence of the drop in the February cash rate.''
New South Wales, Victoria, Queensland, South Australia and the Northern Territory remain sellers markets, according to the Index. Tasmania, which saw a recent price boost, moved from a <a href="/expert-insights/buying/hobart-shines-in-2015s-strong-start-but-house-price-growth-set-to-slow-corelogic-rp-datas-january-results">buyers market to a balanced markets</a>.
Both Western Australia and the Australian Capital Territory moved to favour buyers.
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Property market regaining its balance, but still favours sellers: LJ Hooker

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GUEST OBSERVATION
If the popularity of television shows like The Block is anything to go by, Australians don’t just love our homes – we also love to decorate, renovate and generally improve them.
If you’re bitten by the renovation bug, rest assured, a well-planned renovation can give your lifestyle - and your home’s value, a welcome boost. The key is to focus on improvements with broad market appeal, and give careful thought to how you will fund the project, something that is often glossed over in renovation shows.
To avoid overcapitalising - where you spend more on the renovation than the value it adds to your home, consider the market in your area to be sure your improvements will fit in. Adding a fourth bedroom for instance, can make sense if you live in a family-friendly suburb, less so if you’re in an area popular with young singles.
Next, put your hard earned cash to work where it will deliver the greatest benefit. High quality kitchen and bathroom renovations almost always add value to a property. The same can’t be said of outdoor spas or swimming pools, which can be high maintenance and don’t always deliver a fiscal return.
It’s also worth thinking about eco-friendly renovations. Home buyers can’t get enough of ‘green’ features like rainwater tanks, energy efficient appliances and drip-feed irrigation systems. Along with adding value to your home, you’ll also save on utility bills.
Planning a renovation is exciting, but before thumbing through colour charts or carpet samples, it’s critical to think about how you will pay for it all. Your home loan is a valuable tool here offering a low cost source of funds, and there are a number of options to weigh up.
If you’re ahead with your loan, a redraw facility provides easy access to those extra payments. If you need a little more cash, a home loan top up could be the solution. This simply means bringing your loan back to its original level – or borrowing a bit extra, and it’s a far simpler process than refinancing to a new loan.
A top up works best for non-structural improvements like painting, adding new floor coverings, or kitchen and bathroom makeovers. The funds are generally paid directly to you, providing the flexibility to complete the project in your own time.
For structural renovations like adding a new extension or an extra floor, a construction home loan can be the answer. Lenders will ask to take a look at your building plans, so you’ll have the benefit of an extra set of eyes checking the quality of your project. Funding is then provided as a series of drawdowns as various stages of the project are completed. The beauty of this approach is that you only pay interest on the funds drawn down.
Patrick Nolan is a home loans expert with <a href="https://www.mebank.com.au/" target="_blank">ME Bank</a>.
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Boost your home’s value through renovation: Patrick Nolan

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Tony Abbott is on a yellow card and is one major mistake away from being red-carded.
Another display of the bad judgment for which he has become infamous and he’ll be kicked out of the game by his own team.
Un-phased, the Prime Minister is already working on his next own goal.
He’s made it known that he’s going to clamp down on foreign investors. Someone has managed to convince him that somehow this will bring down the price of houses and first home buyers across Australia will rejoice.
He’s getting seriously bad advice from somewhere. He could eliminate every foreign investor from the Australian residential landscape and it wouldn’t reduce a single home price.
Of all the buying sectors in residential property – first time buyers, next time buyers, local investors and foreign investors – overseas buyers are the smallest and least influential. The recent NAB survey confirmed this.
In the established homes market, where first home buyers are most active, overseas buyers are a negligible component.
Foreign investors are active primarily in the new homes market. They buy highrise apartments off the plan in the major inner city markets. This is not a market for first home buyers.
These two sectors – first home buyers and foreign investors – are not competing in the same space.
Abbott’s stance is an outcome of the federal parliamentary inquiry into the “affordability crisis”. This has been a farce from the beginning because it was based on the notion that first home buyer numbers had dropped alarmingly – which is now revealed as a miscount by the Australian Bureau of Statistics.
So the initial premise arose from a mistake and Abbott proposes to compound the error with another, by blaming an innocent party for a non-existent problem.
The inquiry received evidence that foreign investors assist first home buyers because they’re the motivation for the construction of multiple highrise apartment buildings. The increase in supply is deemed likely to bring down prices, thereby assisting first time buyers.
I would suggest that’s a flimsy argument, but that’s what the pointless inquiry was told.
The strangest thing in all this is that the Prime Minister imagines Australians will thank him if he succeeds in reducing the value of homes across the nation. Given that seven out of 10 households own their homes, he’s on a confirmed loser with this one.
But whatever he does with foreign investors won’t affect the pricing levels created by market forces.
Once again, politicians are tinkering at the edges of the affordability issue. A leader serious about making new homes more affordable for first time buyers would address the single biggest issue – the taxation component in the cost of a new home.
New homes are a lot more expensive that established ones (which is a primary reason why first timers target established homes). The research indicates that as much as 40% of the price of a new house and land package is government fees and charges.
Dealing with that is simply not palatable for your average politician. Abbott is doing what politicians always do with the affordability issue – they talk about it a lot, but in essence they do nothing meaningful. A solution is within their power but they refuse to go there.
So the chosen course of action is once again taken from the scripts of Yes Minister. Find an unpopular minority and vilify them in speeches and press conferences, but at the end of the day do nothing that changes the status quo.
It won’t take long for people to realise that waving a stick at foreign investors hasn’t changed anything for first home buyers.
Poor Tony. When he needs to be riding a winner, he’s flogging a dead horse.
Or is it a case of dead man walking.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
If you missed our free webinar with Terry Ryder, 'The Best and Worst for 2015: Top 5 Hotspots and 5 Places to Avoid', you can <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=2e37cb3570&amp;e=035e81ff9a" target="_blank">watch the video or download the slides here</a>. 
 
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Dear Tony, waving a stick at foreigners won't help first home buyers: Terry Ryder

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Marrickville, Gorokan and Toukley are among the busiest of Sydney's cheapest suburbs, according to CoreLogic RP Data.
For houses, Marsden Park is the cheapest Sydney suburb, with a median price of $119,310. However, the suburb only saw seven homes sold in the past year. Far busier was Gorokan, with 241 houses sold in 2014. With a median house price of $306,991, it is the fourth cheapest suburb in Sydney.
<a href="https://www.realestate.com.au/property-house-nsw-gorokan-118545727" target="_blank">3 Bertha Street in Gorokan</a> sold for $310,000 last week.
<img src="/images/2015/02/09/1%20gorokan.jpg" alt="">
Above: 3 Bertha Street
The two bedroom house on a 550 square metre plot came with development approval for a duplex. The vendors paid $125,000 less when they purchased the home in 2007 for $185,000.
<a href="https://www.realestate.com.au/property-house-nsw-gorokan-118696967" target="_blank">56 Gilbert Avenue</a>, which was marketed towards first home buyers, sold for $300,000 in mid-January (pictured below).
<img src="/images/2015/02/09/2%20gorokan.jpg" alt="">
Above: 56 Gilbert Avenue
The three bedroom villa has been recently renovated. The vendors, who paid $225,000 for the home in 2009, used it as an investment property. It was advertised to rent at $315 per week in 2013.
Marrickville has the fifth-lowest median price of any suburb within 10 kilometres of the Sydney CBD. With 213 homes sold over the last year, it is also the busiest of the 10 cheapest Sydney inner-city suburbs (see table below).
HOUSES: Greater Sydney
<img src="/images/2015/01/22/rp-jan-22-one.jpg" alt="">
<img src="/images/2015/01/22/rp-jan-22-two.jpg" alt="">
HOUSES: &lt;10km from CBD
<img src="/images/2015/01/22/rp-jan-22-four.jpg" alt="">
Source: CoreLogic RP Data.
CoreLogic RP Data recorded Marrickville's 2014 median value as $892,297 for 2014.
<a href="https://www.realestate.com.au/property-house-nsw-marrickville-118559543" target="_blank">167 Sydenham Road in Marrickville</a> sold for $890,000 last week. The full brick, three bedroom house had been held by the vendors for almost 28 years – they paid $74,500 in 1987.
<img src="/images/2015/02/09/3%20marrickville.jpg" alt="">
Above: 167 Sydenham Road
In November last year, buyers paid $900,000 for a corner block two bedroom brick home at <a href="https://www.realestate.com.au/property-house-nsw-marrickville-118351459" target="_blank" style="line-height: 1.3em;">39 Gladstone Street in Marrickville.</a> The house was purchased by the vendors for $615,000 in 2008, with the home appreciating 46% in six years. 
<img src="/images/2015/02/09/4%20marrickville.jpg" alt="">
Above: 39 Gladstone Street
For units, Toukley in the Central Coast was one of the busiest of the cheaper outer suburbs. Toukley had a median of $265,887, making it the sixth cheapest Sydney suburb for units. This one sold for $259,000 in September.
<img src="/images/2015/02/13/toukley%20feb%2013%20one.jpg" alt="">
<a href="https://www.realestate.com.au/property-unit-nsw-toukley-117752435" target="_blank">2/39 Victoria Avenue in Toukley</a> (pictured above) is a single storey two bedroom unit with an enclosed sun room and a courtyard.
UNITS: Greater Sydney
<img src="/images/2015/01/22/rp-jan-22-one.jpg" alt="">
<img src="/images/2015/01/22/rp-jan-22-three.jpg" alt="">
UNITS: Under 10 kilometres from the CBD 
<img src="/images/2015/01/22/rp-jan-22-five.jpg" alt="">
For inner city units, the busiest of the 10 cheapest suburbs was again Marrickville, with 268 units sold last year. The suburb is the 10th cheapest in the Sydney inner-city for units, with a median sale price of $508,813.
For that price, a buyer might get an apartment like one at <a href="https://www.realestate.com.au/property-apartment-nsw-marrickville-118620451" target="_blank">9 George Street</a> (pictured below), which sold for $509,000 last month.
<img src="/images/2015/02/13/marrickville%20feb%2013%20one.jpg" alt="">
The one bedroom offering was one of multiple renovated apartments at the 9 George Street complex offered.
<a href="https://www.realestate.com.au/property-apartment-nsw-marrickville-117382003" target="_blank">14/416 Marrickville Road</a> (pictured below) was another one bedroom unit that sold around the median price, for $507,500.
<img src="/images/2015/02/13/marrickville-feb-13-two.jpg" alt="">
The apartment at the rear of its block last traded at $196,000 in 2005.
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The busiest of Sydney's affordable suburbs: CoreLogic

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Prime Minister Tony Abbott today said he wanted to enforce the Foreign Investment Review Board (FIRB) residential rules "because, obviously, the last thing we want to be doing is pricing young home buyers out of the market".
He told Alan Jones on 2GB that Kelly O’Dwyer, as the chairman of a parliamentary committee was looking at the fact that the former Labor government never enforced the prohibitions on foreign purchasers of existing residential properties.
"Now, what sort of a government has rules and never actually enforces them?" <a href="https://www.pm.gov.au/media/2015-02-06/interview-alan-jones-radio-2gb-0" target="_blank">he said</a>.
Tony Abbott foreshadowed within a few weeks his government would be putting the policy that he took to the election into action.
The Australian Financial Review wrote earlier this week the government’s response to the ­parliamentary report on the issue was discussed by cabinet on Tuesday and Wednesday. 
“There has been evidence which will emerge over time that there has been a significant increase in the number of foreigners buying Australian residential real estate unlawfully,” Treasurer Joe Hockey told Fairfax Radio.
“It hasn’t been enforced because it never was enforced under the previous government... You’re about to see that change.”
A parliamentary inquiry led by Liberal MP Kelly O’Dwyer, who was recently promoted to Parliamentary Secretary to the Treasurer, handed in its report to the government last November.
The report actually found that foreign investment was, on the whole, of benefit to the country and was not the main cause of any recent steep increases in property prices.
It did, however lash out at the FIRB fair failing in monitoring and enforcing the laws.
There have been no prosecutions made against foreign buyers for illegal residential property purchases since 2006.
One of the inquiry's key recommendations was the creation of a national register linking records of land transfers with citizenship and migration residency status, to better track of foreign investment.
The government’s moves on foreign investment in real estate were heralded in ­Tony Abbott’s speech to the National Press Club last Monday.
“I am a friend of foreign investment but it has to come on our terms and for our benefit,” Abbott said.
Australians were "anxious" about the country's economic sovereignty, especially foreign purchases of agricultural land," Mr Abbott said.
"And better enforcement of the rules against foreign purchases of existing homes so that young people are not priced out of the market."
The national initiative will rely on state government co-operation in amending transfer purchase documentation.
Property Observer gleans all states, barring South Australian, have agreed to the federal government's wishes.
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Tony Abbott suggests foreigners pricing out young home buyers

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It's a major statistical revision: first home numbers are up 25%. 
The most recent data shows the ABS originally recorded 6,061 homes bought in November by first timers, reflecting 11.6% of all loans.
The number has now been revised to 7,627, or 14.6% of total loans, a 25.86% increase.
The ABS has been forced to republish its monthly statistics relating to first home buyers in Housing Finance, Australia.
Click to open in new window:
<a href="/images/2015/02/04/chart-feb-4-twelve.png" target="_blank"><img src="/images/2015/02/04/chart-feb-4-twelve.png" alt=""></a>
Source: Australian Bureau of Statistics
<a href="/expert-insights/finance/rba-awaits-abs-first-home-buyer-data">Fairfax Media columnist Michael Pascoe</a> was among the first to suggest the under-reporting by the ABS last June after the RBA dropped their usage of the data.
I wrote in October last year it was continuing <a href="/expert-insights/buying/first-home-buyer-numbers-also-gone-missing-in-worrying-abs-data-blackhole">worrying statistical blackhole</a>.
Loans to first home buyers caught most of the owner occupied loan commitments made to first home buyers, but not to first time investors who were staying at home while buying their first home elsewhere.
First home buyer statistics are compiled using data from the ARF 392.0 Housing Finance form collected by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, and are an important as part of analysis of housing demand and affordability.
First home buyers are defined as persons entering the home ownership market as owner-occupiers for the first time.
An investigation by the ABS identified that the data on first home buyers are under-reported, as some lenders have only reported loans to first home buyers who have also received a First Home Owner Grant.
The under-reporting only relates to loans to first home buyers. 
The ABS and APRA are now working with lenders to ensure all loans to first home buyers are recorded in the future, regardless of whether they receive a grant or not.
In the interim, the ABS has adjusted first home buyer data for this under-reporting using estimates based on data provided by lenders which have reported correctly. The estimates will be updated over time as more lenders report correctly. 
The underreporting appears to be around 20%.
The First Home Owner Grant (FHOG), introduced on 1 July 2000, is a national scheme funded and administered by the states and territories. Under the scheme, a one-off grant is payable to eligible first home owners. Until October 2012, all first home buyers were eligible for the grant regardless of whether they bought a new or an established home. 
Gradually, states and territories restricted grants to new homes only so that first home buyers who were buying established homes were no longer eligible for the grant. 
APRA reporting instructions state that a first home buyer is a borrower entering the home ownership market for the first time as an owner-occupier. 
The instructions do not make any distinction between first home buyers who are eligible for a First Home Owner Grant and those who are not. Nonetheless, some lenders' reporting systems only record first home buyers if they are eligible for a grant which may cause under-reporting of first home buyers. 
The ABS acknowledged this under-reporting has progressively impacted on first home buyer statistics from October 2012 as individual states and territories have changed the eligibility of their First Home Owner Grants, generally to cover only the purchase of newly constructed homes. 
States and territories restricted grants to new homes from different dates - New South Wales and Queensland from October 2012; Victoria from July 2013; the Australian Capital Territory from September 2013; South Australia and Tasmania from July 2014. 
Loans to first home buyers were therefore underestimated in these states from the dates specified due to some lenders under-reporting. 
The ABS suggested originally, the drop in loans to first home buyers from October 2012 had been attributed to the change in grant eligibility reducing the affordability for first home buyers and economic conditions, such as rising house prices and the increase in investment loans for housing. However, subsequent analysis and follow-up with lenders has confirmed that the drop was due, at least in part, to under-reporting by some lenders. 
The ABS estimates that the number of loans to first home buyers which are currently being reported are approximately 80% of the total number of loans to first home buyers. 
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