<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.

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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

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First home buyers saving for a deposit have lost an incentive with the abolition of the First Home Savers Account (FHSA) scheme in the federal budget, the Real Estate Institute of Australia (REIA) president, Peter Bushby says. 
It has created greater concern as the cessation of Government co-contributions for existing account holders will hurt those relying on them to bolster their savings.
“We would like to have seen the scheme reviewed and improved rather than simply thrown on the scrap heap because of an initial low uptake.”
“With home ownership in Australia declining and first home buyers finding it increasing difficult to enter the housing market, this will not help the situation.”
Bushby noted "by contrast" the government has indicated that the National Rental Affordability Scheme (NRAS) would be reviewed, "an action REIA supports”.
“With budget forecasts of moderate growth, a slight increase in unemployment and inflation well within the RBA’s target zone, interest rates should remain low for some time and that is good news for home owners and prospective buyers,” concluded Bushby. 
The REIA had previously compiled a 10-point wishlist for<a href="/expert-insights/investing/the-reias-10-point-wishlist-for-the-federal-budget"> what it hoped to see in the federal budget</a>.
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jchancellor-FAypfDUnLy

FHSA scheme needed review not scrapping: REIA

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The Australian Bureau of Statistics (ABS) released housing finance data for March 2014 earlier this week.
The data showed that the number of owner occupier housing finance commitments fell by -0.9% in March.  In value terms, lending to owner occupiers was -1.2% lower over the month and lending to investors was down -0.8%.
<img class="aligncenter size-full wp-image-3222" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-11.jpg" alt="Chart 1" width="500" height="182">
Looking at the break-down of housing finance commitments by value over-time, you can see that on a 12 month average basis, the greatest proportion of lending over the past year has gone to investors (37.7%) followed by: owner occupier subsequent purchasers (non-first home buyers) (36.7%), refinances by owner occupiers (17.6%) and owner occupier first home buyers (7.9%). 
As the above chart shows, investment lending is at its highest level in a number of years and there has previously only ever been one period where investment lending was greater than lending to subsequent purchasers. 
The proportion of lending to first home buyers is at a record low, accounting for an average of 7.9% of the value of finance commitments over the 12 months to March 2014.
<img class="aligncenter size-full wp-image-3223" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-21.jpg" alt="Chart 2" width="500" height="179">
Turning the focus to the monthly data on the number of owner occupier housing finance commitments, as mentioned these were -0.9% lower with refinance commitments down -1.0% and non-refinance commitments falling -0.9%. 
Despite the monthly fall, as the above chart shows, both refinances and non-refinances are trending higher albeit non-refinances in particular remain well below historic average levels.
<img class="aligncenter size-full wp-image-3224" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-31.jpg" alt="Chart 3" width="500" height="182">
Over the month, owner occupier housing finance commitments to first home buyers increased by 12.2% which was the largest monthly rise since May 2012.  Despite the monthly rise, first home buyer commitments remain slightly lower than a year ago (-0.8%). 
As a proportion of total owner occupier finance commitments, first home buyers accounted for 12.6% of commitments in March, up from 12.5% in February but down from 14.1% in March 2013.
<img class="aligncenter size-full wp-image-3225" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Chart-41.jpg" alt="Chart 4" width="500" height="181">
The total value of investment housing finance commitments fell by -0.8% in March 2014 however, it has increased by 27.9% year-on-year.  As mentioned, the proportion of investment commitments has, on average, been higher than owner occupier subsequent purchases over the past year. 
In March, investment finance commitments accounted for 39.1% of total finance commitments.  The level of investment activity remains at a level which is well above average and of a magnitude not recorded since late in 2003.  Although it is hard to bed down any timely and accurate statistics on overseas buyers it is important to note that if foreign buyers are purchasing with funds sourced from abroad, they are not captured in these figures.
<blockquote>
The last time we saw investment activity at these levels we also witnessed a marked slowdown in value growth nationally.
</blockquote>
With the level of investment remaining stubbornly high, it is no wonder that the Reserve Bank continues to repeat its warning that housing in Australia is not a one-way bet.  Obviously low mortgage rates coupled with strong value growth, particularly in Sydney and Melbourne is attracting the attention of investors. 
The potential challenge will be what happens next with investors once value growth slows and mortgage rates rise. 
The last time we saw investment activity at these levels we also witnessed a marked slowdown in value growth nationally. As an example, in Sydney values began falling shortly thereafter and values took five and a half years to return to their previous peaks.  Investors jumping into the market at this time should definitely bear this in mind.
Overall, the monthly read on housing finance data was weak, however, the trend shows that demand for finance is continuing to escalate. In particular, investors and upgraders are really driving the housing market at the moment.
However, the level of activity by owner occupiers purchasing homes (as opposed to refinancing) remains well below average levels.  Obviously the rise in investment lending is to some extent restricting the level of lending to owner occupiers.
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ckusher-ujnxiKuFQs

Level of investment remains stubbornly high in housing finance data

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The Federal government has scrapped the First Home Saver Accounts scheme, ruled off from tonight's budget speech for new accounts.
The government expects to make $143 million in savings over five years from its ditching.
It was a Rudd government initiative where accounts attracted government co-contributions and tax breaks, which will no longer be on offer to new intending first home buyers.
Under the scheme, savers paid concessional tax rates of 15 percent on interest earned in the accounts and the government made a 17 percent co-contribution on the first $6000 contributed each year.
It was also reported government co-contributions to the existing accounts will end on 1 July and tax and social security concessions will be withdrawn from July 2015.
The government program, launched in 2008 by Kevin Rudd, was predicted to help hundreds of thousands of future home buyers.
However, statistics from the Australian Prudential Regulation Authority show that $521 million is held in 46,000 First Home Saver Accounts as of December 2013.
<div>
<table class="apra-rteTable-5" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr class="apra-rteTableHeaderRow-5">
<th>
Period
</th>
<th>
Mar 2013 
</th>
<th>
Jun 2013
</th>
<th>
Sep 2013
</th>
<th>
Dec 2013
</th>
</tr>
<tr class="apra-rteTableOddRow-5">
<th class="apra-rteTableFirstCol-5">
Number of FHSAs ('000)
</th>
<td class="apra-rteTableOddCol-5" valign="bottom" width="87" height="20">
40.2
</td>
<td class="apra-rteTableEvenCol-5" valign="bottom" width="87" height="20">
45.2
</td>
<td class="apra-rteTableOddCol-5" valign="bottom" width="87" height="20">
45.3
</td>
<td class="apra-rteTableEvenCol-5" valign="bottom" width="87" height="20">
46.0
</td>
</tr>
<tr class="apra-rteTableEvenRow-5">
<th class="apra-rteTableFirstCol-5">
Balance of FHSAs ($m)
</th>
<td class="apra-rteTableOddCol-5" valign="bottom" width="87" height="20">
416.8
</td>
<td class="apra-rteTableEvenCol-5" valign="bottom" width="87" height="20">
491.0
</td>
<td class="apra-rteTableOddCol-5" valign="bottom" width="87" height="20">
499.7
</td>
<td class="apra-rteTableEvenCol-5" valign="bottom" width="87" height="20">
521.5
</td>
</tr>
</tbody></table>
</div>
<div> </div>
This figure is still just a fraction of the 220,000 first-home savers projected to open accounts by 2009 and the 2012 target of 700,000.
<a href="https://www.apra.gov.au/crossindustry/FHSA/Pages/default.aspx" target="_blank">Only 18 institutions</a> offered accounts. The average base interest rate being paid on these accounts being 2.54%.
A number of conditions are currently in place, including that a $1,000 minimum deposit must be reached yearly for four financial years before you can withdraw. The account's balance is capped at $90,000.
There is an average of $11,300 in the accounts which, readers point out, can exceed $90,000 with interest but savers can't deposit more after it reaches $90,000.
Late last year, with first home buyers' low numbers, RateCity urged a review of the First Home Saver Account Scheme.
Ninemsn reported the first home saver accounts scheme was scrapped as Treasurer Joe Hockey said it had done little to improve housing affordability.
First home grants to buyers, handed out in conjunction with state governments, will continue unaffected.
Property Observer will report further this week on the specifics of the implementation of the budget decision, including any revised exit entitlements.
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Federal government scraps First Home Saver Accounts scheme new accounts

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As of 1 January 2015, Northern Territorians looking to buy their first home will only be able to get the First Home Owners Grant if they buy new, under recently announced changed.
The current property value limit of $600,000 will be removed, and the value of the grant for building or buying new homes has increased $1,000 to $26,000.
These changes are in effect as of tomorrow.
Dave Tollner, treasurer, said that the removal of the value limit will remove the requirement that the buyer pay for a valuation of the property.
“These are practical changes that will make the grant more appealing and flexible to first home buyers that are buying or building new homes,” Tollner said.
At the moment, a $12,000 grant can be obtained for established dwellings in an urban area, or in Darwin, Palmerston and Litchfield. A $25,000 grant is available for those outside of the urban area.
These grants for established homes will be gone from next year, with hopes of stimulating new home construction and to encourage a take up of the accelerated land releases.
“By targeting the first home owners grant towards the purchase of newly built homes, the grant is more likely to contribute to growth in housing supply and employment in the construction sector,” said Tollner.
Those looking to buy an existing dwelling have an opportunity for the next eight months to take advantage of the existing grant.
“This will ensure an orderly transition and allows buyers who are currently in the process of buying a home, or intending to do so in the near future, with sufficient opportunity to take advantage of the FHOG as part of that purchase until the end of the year,” he said.
“But ultimately, we want this grant to encourage the construction of new homes, create more jobs in the residential construction sector and improving housing affordability by increasing housing stock.”
In announcing this decision, the government acknowledged that providing a grant for existing property is <a href="/expert-insights/investing/northern-territory-government-acknowledges-that-fhogs-for-established-houses-have-inflationary-effect">“widely regarded” as contributing to higher property prices</a>, noting economist Saul Eslake’s comments.
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Northern Territory’s FHOG directed to new builds only from 2015

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New data has made its way onto the Property Observer chart of the day list - this time a list of the top number of applications in Victoria.
Here are the top areas, according to the Office of State Revenue, Victoria.
 If you're a first home buyer wondering where you can afford - you can see our free suburb data here.
There should be more information coming soon - in the meantime, you can see <a href="/news/vic/where-are-victorian-first-home-buyers-purchasing">how first home buyers differed in their purchasing habits over October to December 201</a>3.
The below data is based on the number of applications for the first home owners' grant.
<img src="/images/2014/05/09/chart-of-the-week-may-9.jpg" alt="">
Source: State Venue Office of Victoria
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Where are new first home buyers purchasing in Victoria?

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The stamp duty exemption threshold for West Australian first home buyers has been cut from $500,000 to $430,000 in the state’s 2014 budget.
From July 1, those purchasing established properties priced under $430,000 will receive a full stamp duty exemption. Concessions will phase out progressively for purchases between $430,000 and $530,000. Previously, first home buyers still received some stamp duty concession for properties priced up to $600,000.
No changes have been made to stamp duty concessions for first home buyers of new house and land packages. If the vacant land is valued under $300,000, the first home buyer will not be required to pay any stamp duty. Purchasers of land priced up to $400,000 will be eligible for some form of stamp duty concession.
The Barnett government’s 2014 budget papers claim that stamp duty concessions for West Australian first home buyers are still relatively generous, with only Queensland first home buyers paying less duty on the purchase of a $450,000 established home.
The government has also announced a 10% increase in land tax across the board.
The lowered stamp duty concessions are forecast to save the government $222 million in the four years to 2017-18.
In last year’s budget, the West Australian government cut the First Home Owners Grant for established properties from $7000 to $3000. The grant has remained unchanged in this year’s budget. First home buyers of properties valued up to $750,000 are eligible for the $3000 grant for established properties and $10,000 grant for new properties. The $750,000 threshold is pushed up to $1,000,000 for those purchasing properties above the 26th parallel (around Shark Bay).
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Western Australia’s 2014 budget: First home buyer stamp duty concessions cut

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A unique and interesting feature of the current housing market in Victoria is not only a rise in investor activity, but the falling numbers of first home buyers.
It may be easy to draw the conclusion that investors have forced first home buyers out of the market, however, this is not supported by the data available from the Australian Bureau of Statistics (ABS) data, rather it indicates a rise in the overall share of all non first home buyers.
Analysis of data from the ABS shows that the market share of local investors has been cyclical over the past decade.
In the most recent twelve months investors represented 36.1% of the total value of loans in Victoria compared to 34% in the preceding twelve months. In the twelve months ending Feb 2011 – the last rising cycle – the proportion was 37%. A similar rise was also evident in 2007 suggesting that as the market strengthens so too does the level of investor activity rise.
Unlike investors, the numbers of first home buyers have shrunk to record lows.
<blockquote>
Unlike investors, the numbers of first home buyers have shrunk to record lows.
</blockquote>
In February there were 1,402 dwellings financed for first home buyers in Victoria, a mere 11.7% of the entire number financed. This was lower than in January when they represented 12.7% of the market. In raw terms, this is the lowest since July 1991 when the population of Victoria was also 31% lower than it is today. More first home buyers are staying in rented accommodation or with family.
During the last rising cycle, in 2010, there were a higher proportion of both first home buyers and investors. When home values last peaked, in October of 2010, the proportion of first home buyers was 18.2%. Over that year investors were 37% of the market in value terms.
If first home buyers were being forced out by investors you would expect there to be a lower proportion in 2010 and 2007, yet this was not the case. Other factors have also changed for first home buyers including the levels of financial assistance. The state government now provides up front financial assistance for new homes only unlike in 2007 and 2010 when it was also available for established homes.
And as prices are comparable in real terms with late 2010, there are clearly reasons other than investor activity for first home buyers now being such a small portion of the market.
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Investors up, first home buyers down in the Melbourne market

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Tasmania’s first home buyers are still keeping out of the market, now sitting at just 17% of the market, warns the Real Estate Institute of Tasmania’s president Adrian Kelly.
Kelly said that if the first home owners’ grant is removed in 1 July, then this situation is likely to keep getting worse.
“If the Grant is to be axed, we look forward to seeing what alternative measures are to be introduced by the new Liberal government,” he said.
“Second home buyers still continue to hold over half the property market now accounting for 52% of purchases with a median house price of $325,000.
“Both interstate and overseas buyers were also up slightly to sit at 16 per cent of house sales for the quarter.”
In the March quarter, a house sales decrease of 4.6% was recorded, however an annual 14.9% improvement compared to 2013 has been noted.
Launceston house sales dropped 18.5% over the March quarter, returning to a similar level prior to the uptick in interest. It remains 25.1% above the March quarter 2013.
Hobart house sales also dropped for the quarter, but recorded a 10% uptick over the year, with specific interest in the central suburbs – 18.8% up for the year.
“The median house price for Tasmania remained steady for the quarter to sit at $305,000 totalling an increase for the year thus far of 4.5%,” he said.
Brighton, Clarence, Hobart and Kingborough municipalities saw increases in median house prices and sales for the quarter – along with a number of others with lower than median house prices.
Photo courtesy of Ian Armstrong/Flickr/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">Creative Commons</a>.
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“First home buyers continue to dwindle” in Tasmania: REIT

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A continuining drop in first home buyer numbers has chief executive of the Real Estate Instute of Western Australia (REIWA), Neville Pozzi, warning the government not to introduced any stamp duty increases for first timers.
He said that this drop should come as a budget warning to the state government.
“Given that first home buyers are dropping in numbers, it’s critical that the Treasurer doesn’t bring back stamp duty for this segment of the market,” Pozzi said.
Currently, first home buyers in Western Australia are exempt from stamp duty payments for homes under $500,000.
“It’s very concerning, however, that Premier Barnett has indicated that the current tax break for first home buyers is under review and might be changed,” he said.
“The housing market is very susceptible to cost pressures and making first homes more expensive would be a terrible blow to the market just as it’s starting to stabilise,” he said.
FHOG applications for the March quarter, as recorded by the Office of State Revenue, recorded a 9% drop. This is 21% below the June 2013 peak.
This drop is across both the established and new-build sectors, with established homes dropping by 14%.
“This means that grants being paid out have now fallen below the average since the FHOG was first introduced 14 years ago,” he said.
He noted that the "last thing" the market needs at present is any added cost pressure on first time buyers.
The median purchase by first home buyers in March was $470,000 in Perth, and $350,000 in regional Western Australia.
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REIWA chief executive warns against FHB stamp duty introduction

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GUEST OBSERVATION
Our federal budget is due to be delivered on Tuesday 13 May, 2014 and we are being repeatedly told that there has to be significant cuts to expenditure. Our state budgets will be delivered soon after that date.
In essence it is time for governments to deliver something which is new and helpful to maintain and increase housing stock, but at the same time does not simply drive housing prices higher. This definitely rules out changes to negative gearing as its removal would simply reduce investor activity and available housing stock.
There are two outcomes in our housing markets that are needed:
1. Ensure there is an increase in Australian citizen investment in new housing stock; and
2. Increase the number of first home owners in the market.
The first, in my view, is a state issue
Most of us will have family or friends who have been trying to buy a home and failed because they have been out bid by a cashed-up foreign buyer. One has to ask whether foreign buyers should have equal rights as Australian citizens. I suspect not. That is not to say that foreign buyers are not necessary in our markets, rather they are simply investing in a low risk, very attractive country and for that benefit they should have to pay some type of premium.
Altering our land tax regime would enable us to charge this premium from foreign investors and potentially decrease their activity without necessarily decreasing supply of new stock. This can be done by increasing the land tax payable by non-Australian citizens who own property in our country and at the same time, decrease the rate of land tax charged on property owned by Australian citizens, with all property purchased in the future and currently held, being subjected to these changes. Obviously, the amount of these alterations will need to be modelled and the changes would need to be phased in.
The consequence is clear. Foreign investment activity would be marginally reduced (depending on the altered tax rate applicable to them) and the lower tax rates for Australian citizens should cause increased investment activity by this group. It should also mean that the first home owner may have a better chance of competing when buying.
The second, in my view, is a federal government matter
The first home owner has been forced out of the market simply as a consequence of rising house prices and the consequent level of income needed to support a home loan.
In essence we need to organise things so this group – and everyone buying a property to live in – has adequate cash flow to meet the high home loan repayments. This will particularly be the case when interest rates increase in the medium term.
A relatively simple change to the capital gains tax (CGT) legislation is required.
This change would allow home owners to claim interest deductions on their home loan repayments where they elect to be subject to normal capital gains tax on the profit they make on any future sale of the property. In essence they exchange the right to have their home exempt from capital gains tax in exchange for the right to immediately reduce their taxable income by the interest they are paying on their home loan.
Being brutally honest given the government’s current budget problems they should simply just phase in the removal of the capital gains tax exemption on the family home all together and automatically provide first home owners who buy a new home with the right to claim interest deductions. Politically this might be better for government than altering pension rights and health benefits etc.
Allowing buyers to elect to claim interest as a deduction would mean an improved annual cash flow which will help to make housing more affordable. What is the cash benefit? Well assume someone has a loan of $400,000 and has a tax rate of 22% then the annual benefit at current interest rates would be in the order of $5,000 per annum or roughly about $100 per week.
The impact of this proposal on borrowers as interest rates increase should also not be overlooked. That is, deductibility means that interest rate increases will not have as large a negative impact on our first home owner as they would otherwise. As interest rates increase their deductions increase and their tax liability is reduced. Hence as interest rates rise, defaults on home loans are likely to also be lower.
There needs to be some detailed modelling to work out a progressive phasing in and potentially define a percentage of the interest cost on the home loan that would be allowed to be deductible. Once this is done then a reasonably solid estimate of the cost to the federal budget could be identified.
From any logical perspective, a combination of subjecting all of our owner occupied housing to a form of capital gains tax and allowing our first home owners to access interest tax deductions, does have merit. And provided it is structured in a manner which does not drive housing prices higher, it will also make housing affordable for the next generation.
The negative which could be seen as a benefit by some, is that it would encourage home owners to limit their trading activity in their own home. That is, a home owner would potentially be less inclined to use their home as trading stock and instead use it as a mechanism for wealth generation by buying with the intent of selling following renovation.
In the short-term we are going to be asked to accept some difficult decisions and perhaps the above, implemented carefully by government could potentially soften the perceived blow.
John Edwards is consulting analyst for <a href="https://www.onthehouse.com.au/" target="_blank" rel="nofollow">Onthehouse.com.au</a> and founder of <a href="https://www.residex.com.au/" target="_blank" rel="nofollow">Residex</a>.
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