<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

First Home Buyers

<html><body>
We're not asking the right questions. That's why the property industry is getting so many misleading answers about important issues.
I think this explains, in part, why so many believe we have an affordability crisis and a housing shortage, when so much of the research data contradicts these widely-held beliefs.
Surveys of prospective first home buyers usually ask whether they think they can afford a home. The answer is meaningless, or at best misleading, unless there are further questions.
Those might include:
<ul>
<li>
Why do you think you can't afford to buy? 
</li>
<li>
Have you tried to buy? 
</li>
<li>Where have you looked? </li>
<li>Are you willing to compromise to get into the market?</li>
</ul>
The big problem, as I see it, is not an affordability problem but an expectation problem.
If you read between the lines in industry surveys and street interviews by media, it's clear many wannabe home buyers have a perceived problem because they've absorbed newspaper headlines and looked no further.
Why bother when you read daily that prices are through the roof (when in reality this is true only of Sydney)?
Others have a problem because they want their dream situation in their first purchase. People are quick to complain they can't afford a home but then we discover they want to live in a million dollar suburb.
Many commentators on real estate issues such as affordability apparently believe nothing ever changes. The assumption is that the current generation of young adults want what their parents wanted and should behave accordingly. That assumption is wrong.
<blockquote>
The big problem, as I see it, is not an affordability problem but an expectation problem.
</blockquote>
When the market share of first time buyers declines, it's assumed there's an affordability problem. No other option is considered. The possibility of demographic change is overlooked.
This is the nub of the issue because it's clear that today's 20-something's have different priorities to their parents. Married with kids and a mortgage before the age of 30 is not on the bucket list. Lifestyle takes priority and commitments can wait.
There's a similar issue with the idea of an undersupply of housing. Individuals and organisations stating under-supply as a fact (one that's accepted by many journalists without question) also fall into the trap of believing nothing changes.
Their analysis is flawed because they're using out-dated models about how many new dwellings are needed for a particular level of population growth. The assumption is that the average household size is X and if you divide population growth by X, that's how many houses should be built.
But a lot has changed. Young Australians are staying longer at home with their parents. Overseas migrants comprise a major chunk of population growth but it's coming from non-traditional sources with different household patterns.
Household sizes are rising again. Whereas in the past the typical household was a small family in a big house with surplus bedrooms, people are now buying homes that reflect their actual needs - e.g. opting for a two-bedroom apartment rather than a large, expensive and wasteful four-bedroom house.
The bottom line is that housing demand is created when someone buys a block of land and engages a builder. If that's not happening to the degree many expect because of what their formula tells them, then the formula is flawed.
The industry that complains about the alleged housing shortage is the industry whose job it is to build houses. If the vast undersupply they claim is real, there's a massive opportunity being missed by the industry doing the grizzling.
The industry will continue spinning its wheels until it starts asking the right questions. If there's a shortage, where are the queues at housing estates? And why is there no rental growth? And what are the real reasons young people have stopped buying in numbers?
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
</body></html>

terryryder-YECXbqmri2

The problem with first home buyers isn't affordability, it's expectations

<html><body>
The rejuvenation of Newcastle CBD, including works on the University of Newcastle’s $95 million campus, has caused a surge in buying activity in the area, according to PRDnationwide Newcastle and Lake Macquarie managing director, Mark Kentwell.
Kentwell noted that investors and first home buyers are among those interested in <a href="/news">Newcastle</a>, with activity higher in the past six months than it has been in a few years. This is <a href="/expert-insights/buying/hotspot-newcastle-tipped-for-strong-growth">not the first time Newcastle has been tipped for growth - being referred to as a hotspot in 2011</a>.
“The university, new courthouse and pending relocation of the rail are factors that have put Newcastle on the map for buyers and developers,” he said.
“After years of analysing the city, there is an acceptance now that residential is in demand and commercial will follow suit once there is a larger population in the city.”
The expectation is for more students and staff to live in the city from 2017, with out of town investors and SMSF investors active in off the plan sales.
“There is also heavy investment generally from non-local buyers as Newcastle’s growth potential becomes more apparent,” he said.
“We are witnessing strong buyer interest in any well-located quality project that comes to market.”
<blockquote>
“After years of analysing the city, there is an acceptance now that residential is in demand and commercial will follow suit once there is a larger population in the city.”
</blockquote>
Developers are also reacting to the growth in confidence.
“There are a lot of sites in the city that have been dormant and neglected over the years - they now have the opportunity to be brought back to life,” he said.
Image courtesy of Wikipedia/Creative Commons.
</body></html>

jduke-EHk3XBmHkn

Newcastle “on the map for buyers and developers”: PRDnationwide

<html><body>
There is a lot of pressure on the Barnett government to cut costs and raise revenue in the state budget this May.
Those of us who work in the property sector are particularly concerned that property taxes might again be targeted. In last year’s budget the government increased land tax by 12.5%.
This year it might be very tempting for the Treasurer to cast his net more widely by increasing stamp duty across the board for all buyers as well as scrapping the stamp duty exemption for first home buyers.
The Real Estate Institute of Western Australia has cautioned the state Treasurer against considering such moves. The property market in WA is only just stabilizing after several volatile years and current REIWA data indicates a market downturn for the second half of this year.
It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
Typical stamp duty on a median priced home in Perth is now $20,000. Bracket creep alone has pushed this up by $4,280 over the last five years.
The stamp duty exemption for first home buyers was raised to homes under $500,000 by the Labor government in 2007 and along with the first home owners grant has been extraordinary successful at nurturing the market.
Cost of living and housing affordability is much tougher in WA than other states, but removing the stamp duty impost from first home buyers saves most of them around $14,000 and helps them into a home of their own.
<blockquote>
It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
</blockquote>
In combination with low interest rates, first home buyers have flourished in WA but the signs are that they are now trending downwards and it would be devastating if they soon get hit with stamp duty.
Getting rid of first home buyer relief or increasing stamp duty across the board would also hit the housing construction sector through the increased cost of land.
The clear evidence from NSW, which recently scrapped its tax concessions for first home buyers, is that first home buyer activity collapsed and hasn’t recovered.
It has been a similar experience in Victoria where other concessions for first home buyers were removed or diminished.
First home buyers are critical to the overall health of the property market because they help nurture construction and facilitate the trade-up market.
Data from the Office of State Revenue show activity by first home buyers has been falling for several months, slipping from 1,974 applications in July last year to 1,540 in March.
For a sustainable, affordable housing market, it’s terribly important there is no rise in stamp duty for all buyers or that tax relief for first time buyers is abolished.
This article was originally published on <a href="https://reiwa.com/" target="_blank">reiwa.com</a>.
</body></html>

dairey-MVZf5ZguQC

The WA budget's threat to first home buyers

<html><body>
New research released today has found that half of renters say they cannot afford a home deposit, while over a third of renters have been renting for five-plus years, according to realestateVIEW.com.au.
The Housing Sentiment Report has found that for many renters, there are two major factors affecting the desire to purchase a home.
Speaking to Property Observer, general manager of <a href="https://www.realestateview.com.au/" target="_blank">realestateVIEW.com.au</a>, Petra Sprekos, noted that it is her understanding that renters are stuck on the roundabout balancing two factors – affordability and lifestyle.
Noting that 28% of those surveyed noted that they cannot afford to buy where they want to live, with over 30% believing they cannot afford mortgage payments, it is interesting to note how these two act in concert.
“Renters do want to live close to work and to the shopping strips,” explained Sprekos. These locations, including the more fashionable suburbs, have become increasingly expensive, making affordability a growing concern.
However, she notes that it isn’t just the cost of property that’s an issue. It’s also the cost of other, now common, expenditures, such as holidays or even school fees.
“When you compare 20 years ago [to today], the biggest cost for a family or a couple or a single person was their home loan or rent, today there are also car loans, school fees, nice restaurants and holidays, as well. There’s more that people do these days and that’s when affordability comes in,” she explained.
Overall, she noted, it’s about perspective and the compromises renters are willing to make.
Anyone who remembers RP Data’s “cheaper to buy than rent” reports will note that there are often areas where repayments are lower than rent, which is the concern of 32% of the renters surveyed. For those not willing to venture to these suburbs, then there are still options.
Sprekos suggests the following considerations:
<ol>
<li>Consider purchasing an investment property in an area you can afford, while renting where you want to live. 
</li>
<li>A joint venture (particularly for an investment) might be a consideration, where you team up with a trusted friend, partner or family member to buy together. 
</li>
<li>Ask your parents to stand guarantor or to provide assistance in some way.</li>
</ol>
“It could be a little bit of fear of the unknown, or a fear that they can’t spend anything else and have the same lifestyle. You do adapt,” she said.
Of those looking to buy at present, 19% rely on their parents in some way, according to the survey’s findings. This may be through borrowing money, living with them while they invest, or using them as a guarantor. Of first home buyers, 42% use one of these strategies.
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The two aspects stopping most renters from buying

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GUEST OBSERVATION
When I speak to someone looking to buy an off the plan property, one of my first questions is usually “investor or first-time buyer?”
Recently it was claimed that there is currently a ‘property war’ between first time home buyers and investors, each one vying for in-demand properties throughout Australia. If there is a property war, then the investors are winning. They have more experience, better credit, and in most cases, the confidence to act quickly.
Last year saw a lot of first time buyers forced out of the market due to high property prices and excessive demand. The proportion of first home buyers of all owner-occupied loans financed in January increased .5% from December. Although this is a good development for buyers and the market, this stat is still five times less than investment loans financed. But for those intimidated by the investor presence, first time buyers can easily move into top quality properties.
One of the priority issues for first time buyers is location. Most buyers are looking for something close to the city and close to work, which is where the investors begin driving competition. Smart investors will recognise these areas as the key hotspots and are also looking in these areas. But there are brand new developments in Surry Hills, Rosebery and Alexandria that pose fantastic opportunities for those looking to take a step into the market.
Most inexperienced buyers don’t realise how cost effective off the plan purchases are. Many assume that because it is a new development it is going to cost them more. But seeing as many off the plan purchases occur months ahead of moving in, they afford you the time to save a larger deposit and allow you to qualify for the First Home Owners Grant if applicable.
Off the plan purchases represent some of the best opportunities for first time buyers to not only move out of home, but to move into the market as investors. Now more than ever, buyers are taking the opportunity to buy a new apartment and rent it out to pay off their mortgage faster. With the large number of young professionals looking for homes and willing to pay higher prices for better locations, the potential for return off a purchase can be significant.  
Sam Elbanna is managing director of <a href="https://www.cpmrealty.com.au/" target="_blank">CPM Realty</a>.
 
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jake-cSmGT7VXVf

Not according to ‘the plan’: First home buyers missing out on off the plan opportunities

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From a first home buyer perspective, there is something very wrong with the housing market in Victoria.
In February, the most recent data available from the Australian Bureau of Statistics (ABS) showed that the total number of dwellings financed for first home buyers had sunk to a 23 year low.
In February there were 1,402 dwellings financed for first home buyers which  represented a mere 11.76% of the entire number financed. This was lower than in January when first home buyers represented 12.7% of the market and the lowest in raw terms since July 1991 when the population of Victoria was 31% less than it is today.
The reasons behind  this result are debatable. Some will say that the causes are high property prices, but this alone is not borne out by the data. When home values last peaked, in October of 2010, the proportion of first home buyers was 18.2%. In real terms, prices are not significantly different at this point which suggests that the problem is not entirely the price.
Others point to the fact that rents are not rising and suggest that intending first home buyers are preferring to rent.
Another perspective is that the change to financial assistance for first home buyers has caused many to not enter the market. At the same time as the large step down in the proportion of first home buyers occurred in the middle of last year, the $7,000 First Home Buyer Grant for established homes came to an end.  This alone cannot be the only issue as at the same time stamp duty was being progressively lowered for first home buyers.
The reasoning for this change in the market is probably a combination of all  issues mentioned and if the market  remains this way, it will represent a significant structural change in the local housing market.
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rlarocca-zWhvjay44N

First home buyers in Victoria lowest in 23 years

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The cheapest Sydney property sold on the mega pre-Easter super Saturday was a 15 square metre studio in the Belgenny, Surry Hills apartment block which fetched $220,000.
That's $14,600 a square metre in the 1937 art deco block.
It was on the third floor at <a href="https://www.domain.com.au/property/for-sale/studio/nsw/darlinghurst/?adid=2011063994" target="_blank">305/389 Bourke Street</a> on the Campbell Street corner, overlooking Taylor Square, selling through through Bill Lazaris Real Estate in conjunction with Raine &amp; Horne Commercial agent Jayne Edwards.
It last sold at $124,500 in 2006, reflecting seven percent price growth, and before that at $68,000 in 1995, $53,5000 in 1993 and $53,000 in 1992.
The studio, which overlooks the lively Taylor Square, was offered vacant possession but with a current annual rental income of $14,300 - around $275 a week since tenanted in mid-2011 - reflecting a 6.5% yield.
The light filled 15 square metre studio was offered in original condition with kitchenette and bathroom.
It was marketed by the local agent Bill Lazaris as a "great investment opportunity for your SMSF, inner city pad or first home buyers.
Bill Lazaris told Property Observer the investor buyer had already asked the tenant to vacant when convenient so a renovation can get underway.
"It offers a pretty good return as is," he added.
There were eight registered buyers who attended the 15 square metre studio auction which was held concurrent with the auction of a same floor 34 square metre studio unit that fetched $320,000, up from its $245,000 sale in 2008. It had a $20,800 annual income, again reflecting a 6.5% rental yield and 4.3% annual price growth during the past six years.
Mr Lazaris told Property Observer he has secured a $200,000 sale late last year in the nine storey apartment block that reflected $16,600 a square metre sale price.
Strong seven percent price growth isn't guaranteed highlighting the importance of not overpaying.
A recent seventh floor one bedroom sale at $352,500 was only marginally higher than the $320,000 sale secured in boom time 2003 when offloaded by the Cameron Oates Property group. Its price growth during the decade was not even one percent per year. It has since become available at $400 a week rental, reflecting 5.9% rental yield.
The most expensive property sold on Sydney’s mega super Saturday was a Northwood waterfront with the lower north shore offering selling for $4.95 million with three registered parties.
With views over Woodford Bay<a href="https://www.mcgrath.com.au/buy/house-northwood-nsw-2066/217756/?searchID=38320798" target="_blank"> from its 845 square metre holding</a>, 111B Northwood Road, Northwood, attracted a $4.6 million opening bid.
It was passed in at $4.75 million selling shortly afterwards, reflecting $5,850 a square metre.
McGrath agent Brent Courtney told Fairfax Media that the vendor's selling reserve was “adjusted” during the negotiations.
Canterbury Bankstown reported the highest regional clearance rate in Sydney at the weekend with a strong 89.1% result.
The next best district was Sydney's northern beaches at 85.5% followed by the south with 83.3%, the lower north with 82%, and the north west with 81.8%.
The inner west's 81% represented the district being in the unusual position of being at the weaker end of the auction market.
"Sydney’s record-breaking early autumn auction market takes a well-earned breather over the next two weekends with the distractions of the Easter and ANZAC Day holiday breaks," APM's senior economist Dr Andrew Wilson said.
"The market will pick-up over the weeks following the break but lower buyer and seller activity can be expected moving into the typically quieter winter period.
"Not surprising perhaps given record listing numbers, Saturday’s clearance rate failed to reach 80% for the first time this year.
"After recording 10 consecutive weekends with a clearance rate at or above 80% since 1 February, the market stepped back just a fraction for a nonetheless strong 78.1% result.
"Although record listing numbers were a factor in a reduced clearance rate this weekend, the result nevertheless adds to the recent downward trend that indicates a moderating of buyer activity as affordability constraints start to bite in the market," he added.
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jchancellor-FAypfDUnLy

Art deco Surry Hills studio sells for $220,000 reflecting 7% annual growth

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When first home buyer numbers are weak, some policy setters look towards incentives to urge the buyers back into the market.
However, warns Urban Development Institute of Australia NSW chief executive, Stephen Albin, this would exacerbate the problem.
Albin warned that pushing up the incentives for first home buyers, which are currently focused at those looking to buy new or build themselves, would cause a flood of demand into the market and push up property prices even higher than at present.
Instead, he thinks that we need to address other issues before encouraging first timers to jump back in.
“The NSW property market, particularly in Sydney, is highly competitive due to low interest rates and a chronic lack of housing supply in the market,” said Albin.
“Now is not the time to be encouraging further housing demand by increasing incentives for first home buyers."
He said that the stock for first home buyers isn't available and that, before making decisions to increase incentives, the government should instead look to the proposed planning reforms.
“For more than 10 years, NSW has suffered a chronic undersupply of housing and now needs more than 40,000 homes per year to be delivered to fill that void and bring demand back to stable levels,” he said.
“The proposed Planning Reforms reduce unnecessary duplications in development processes and ultimately streamline the industry’s ability to get on with the job of delivering housing and infrastructure for our growing population.”
Property Observer readers, what do you think? Should we be providing more incentives for FHBs?
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Don't encourage FHBs into NSW, we don't have the supply for them: UDIA

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I never used to think of myself this way, but as I get older, I'm increasingly becoming quite a traditionalist and something of a curmudgeon.
Don't really like change too much. Used to hate white weddings in churches, but now don't mind them - as long as they aren't mine, of course. Would probably keep the Australian flag the same given a choice (and, despite not being anything remotely close to a monarchist, probably inclined towards the status quo there too). I vote for centre-right parties. Still like to buy weekend newspapers and prefer hard copy books written on paper, though I do buy e-books too. If I wasn't vegetarian, I'd probably be described as a meat-and-three-veg type.
When it comes to finance and investment, I'm generally conservative and like to stick to the tried and tested, and prefer to diversify broadly rather than gamble too much on individual stocks.
I believe in the endurance of traditional market cycles, although they may appear to be shorter than in times past with the advent of faster information flow and especially since cycles are no longer to be carried along on a tidal wave of inflation. 
When I read in press articles that "Gen Y are lazy" or "young people are opting out", I generally don't believe them. Most younger people will be pragmatic and forge their way in life, just as previous generations always have.
While the specifics will always change, I believe that history repeats.
And having been around through a few market cycles, most unfashionably of all, I believe that monetary policy generally still works.
Low rates
If you have been reading my blog since late 2011, you'll know that my absolute conviction has been that cuts in interest rates would dramatically change the way people invest their dollars.
As I clarified the other day, and has been known about for decades, when it comes to investment markets, <a href="/expert-insights/investing/six-places-to-invest-money-and-four-rules-for-doing-so">interest rates are like gravity</a> - ultimately, you just can't get away from them.
Since Australia is not in recession and credit markets have remained liquid, if my belief is correct then after an initial lag the delivered cuts in interest rates should see property investors flooding back into the markets and share markets catapulted higher.
Markets 
The Australian Bureau of Statistics (ABS) released its <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0" target="_blank">Housing Finance data</a> this week, which is a key indicator of what to expect in the property markets in the months to come.
I pulled out the housing finance data specifically as it relates to investment loans, which printed as below:
<a href="https://3.bp.blogspot.com/-pDastlTKFXc/U0T-Y1yBaiI/AAAAAAAAMaQ/cwa_dJQ3oRE/s1600/Investment+Loans.jpg"><img src="https://3.bp.blogspot.com/-pDastlTKFXc/U0T-Y1yBaiI/AAAAAAAAMaQ/cwa_dJQ3oRE/s1600/Investment+Loans.jpg"></a>
The value of investment loans jumped by 4.4% after a fall last month and are now up by a monster 32.3% year on year to the highest level ever recorded in Australia's history.
To me this represents proof beyond any reasonable doubt that monetary policy still works and property markets remain sensitive to the cost of borrowing.
Most lenders offer interest-only loans to investors for five years, at which point they flip into principal and interest loans or must be renegotiated by the borrower. 
The total value of dwelling commitments chart prepared by the ABS tells its own story.
<div class="separator"> </div>
<div class="separator"><img src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.1FF2!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Value of dwelling commitments, Total dwellings" width="248" height="320"></div>
Source: ABS
None of this is surprising when you consider that we have an interest rate of 2.50% yet an inflation rate of 2.60%.
After tax is paid on interest income, returns from bank accounts and term deposits are so dismal that return-seeking investors have been practically forced into the share markets or property investments.
Owner occupier mortgages and first home buyers
Owner occupiers can tend to march to their own drum to some extent, although of course fear of missing out can often see would-be home buyers jump into the market too.
But in the event owner occupier non-refinance commitments have also roared upwards by 17.5% over the past 12 months and owner occupier refinance commitments are a whopping 27.9% higher.
The first home buyer data, however, continues to be a complete waste of everyone's time since it fails to record the large number of first-timers who are electing to buy investment property first instead of a home, which, in Sydney at least, is a very regular occurrence.
There is no way to quantify this at present, but since every second inquiry I get as a property buyer fits into that category, it must surely be a significant factor - in New South Wales at any rate. 
As noted two years ago, if you don't listen to what the data is telling you, then you will certainly misinterpret it. 
Naturally a certain percentage of buyers are unquestionably priced out of the locations they want/need to buy in. 
But the recorded data is not commensurate with "an entire generation" of the population casually sitting out of the market, particularly when high LVR mortgages remain <a href="https://www.smh.com.au/money/borrowing/seeking-to-get-a-foot-in-the-door-20140401-35uqu" target="_blank">so widely available</a>, making saving deposits less of a hurdle than would otherwise be the case. 
Dwelling construction?
If the Reserve Bank's grand rebalancing plan is to work then new dwelling construction needs to take off, and there was healthy news from the data here too. I can't plot this any more clearly than the Housing Industry Association (HIA) has already done, so let's go with their chart:
<div class="separator">
<a href="https://4.bp.blogspot.com/-3mpHbrztgJk/U0UB5RC3fTI/AAAAAAAAMac/FFJ64X28QPY/s1600/HIAcons.jpg"><img src="https://4.bp.blogspot.com/-3mpHbrztgJk/U0UB5RC3fTI/AAAAAAAAMac/FFJ64X28QPY/s1600/HIAcons.jpg" width="400" height="202"></a> 
</div>
Source: HIA
Monthly figures were down a bit after an exceptionally strong month in January, but on a moving annual basis the number of finance commitments for new homes and construction was up by more than 14%. The trend since August 2012 is tremendously strong which bodes well for a large pick-up in dwelling construction.
History repeats 
At such times, experienced heads tend to speak the most sense. 
Back in 2004 at the end of Sydney's last boom the AFR's David Bassanese attracted a level of ridicule for suggesting that "housing affordability is just about where it should be". 
Prices in Sydney subsequently fell a little and were flat for some years, yet with dwelling prices having underperformed household incomes significantly over the past decade, now they are catching back up again. 
Steve Keen's old sparring partner Rory Robertson has been quite outspoken this week on the same subject, suggesting that buy-and-hold on Sydney property for the long term is a "no-brainer", and as for whether the market is demonstrating irrational exuberance...
<img src="/images/2014/04/11/tweet-april-11-one.jpg" alt="">
Other experienced heads such as economist Stephen Koukoulas also added that he wouldn't be surprised by higher prices....
<a href="https://2.bp.blogspot.com/-4rRcCUErWQM/U0UVhuwFliI/AAAAAAAAMa8/AL3MACrCVsI/s1600/KOUKOULAS.jpg"><img src="https://2.bp.blogspot.com/-4rRcCUErWQM/U0UVhuwFliI/AAAAAAAAMa8/AL3MACrCVsI/s1600/KOUKOULAS.jpg" width="400" height="67"></a>
Tight market 
It's very rarely noted that during the last boom period in 2003, the REIA recorded that Sydney's property markets had a vacancy rate as high as 4.4%. The rate of vacant properties was at an even more elevated 5.3% in the outer ring suburbs.  
By way of contrast, today's vacancy rate in <a href="https://www.sqmresearch.com.au/SQMResearchVacancyRatesFebruary2014.pdf" target="_blank">Sydney is just 1.6%</a>, and much lower still in certain popular market sectors, such as in the inner west: e.g. Erskineville 0.6%, Enmore 0.8%, and so on. 
Our capital cities and their infrastructure are bursting at the seams, and with <a href="https://www.smh.com.au/business/comment-and-analysis/is-australia-ready-for-23-million-more-people-20131028-2wb0n" target="_blank">2.3 million more people expected</a> to live in Australia in the next five years alone, we're going to have a heck of job keeping up.
If I learned one thing from the experience of the United Kingdom property markets since 2007, it's how the right properties in the right locations fare so much better when each cyclical downturn inevitably arrives, particularly the types of properties which are most in demand such as. For example, well-located dwellings close to the median price for the suburb. 
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Investment mortgages crunch all-time record high

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The purchase of domestic real estate, and in particular residential real estate, is a topic that frequently attracts a lot of attention.
That’s nothing new; some of the same ‘concerns’ we hear and read about today have all been aired before. At various times and across different markets we have, for instance, seen big in-flows of money from Japan and the Middle East.
However offshore investment into our housing market always tends to be a touchy subject. I think that we should not see this as threatening or abnormal and as far as new projects are concerned, the impact of these buyers needs to be seen in the greater context of the total market.
It is unfortunate that currently any negatives surrounding this debate are being fuelled by a number of factors. Key among these is the reality that the inflow of funds is not aligned with our general market conditions. So as we see prices increase, and in some markets this may be impacting first time buyers, some blame is being attributed to offshore buyers. But there is also a clear benefit from the fact that demand in total is now driving a big increase in construction activity, and that is at a time when the local economy needs that stimulus.
Key motivations
Part of the reality of this trend is the fact that across Asia and in particular from China there is a weight of money available for investment. some of that money is regardless of any policy settings, naturally going to flow into our residential property. But are the key motivations of buyers necessarily any foundation for concern? I suggest that these buyers are in the main driven by motivations that we are all familiar with.
Accepting that almost all markets now operate on a global basis, offshore buyers will be motivated by quality of life, economic stability, good infrastructure – this includes both hard infrastructure like roads and everyday services such as power and water, but also soft infrastructure and a big item there is education and medical facilities. Lastly offshore buyers are attracted by political stability. A quick tally would clearly give Australia a big tick on all of these items and so it’s a good and appealing place to call home.
<blockquote>
There is clear benefit from the fact that housing demand is now driving a big increase in construction activity, and that is at a time when the local economy needs that stimulus.
</blockquote>
We also now have in Australia inter-generational changes that are reinforcing family ties and these are a big influence. it’s worth keeping in mind that we have seen this trend before. In particular as post-World War Two and post Vietnam brought about new waves of population growth.
I think that it’s easy to identify with these motivations, and also like most of us, it is the stability of the Australian lifestyle that is a strong appeal.
SENATE REVIEW
However now, and somewhat predictably, The Treasurer has asked the Senate <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/index.htm" target="_blank">House Standing Committee on Economics</a> to inquire into and report on Australia’s foreign investment policy as it applies to residential real estate.
A key starting point is the principle of Australia’s foreign investment policy, as it applies to residential property, is that the investment should increase Australia’s housing stock and as such this includes new developments that aim to deliver benefits to the local building industry and its suppliers. Which is now starting to happen.
Off-shore or foreign investors cannot generally buy established homes; however, temporary residents can apply to purchase one established dwelling to use as their residence while in Australia.
Despite these conditions and in view of some of the concerns already outlined the Committee has been asked to examine:
<ul>
<li>The economic benefits of foreign investment in residential property;</li>
<li>Whether such foreign investment is directly increasing the supply of new housing and bringing benefits to the local building industry and its suppliers;</li>
<li>How Australia’s foreign investment framework compares with international experience; and</li>
<li>Whether the administration of Australia’s foreign investment policy relating to residential property can be enhanced.</li>
</ul>
This looks like a quick review with the Committee’s report due in early October 2014.
LET’S NOT FORGET OTHER POLICIES
If as it appears the Senate Review is partly in response to helping keep homes affordable in particular for the FHB market, then it would also be an ideal time for government to look at how much government charges and red-tape adds to the cost of a home.
Stamp duty for example is levied on the GST already built into the cost of a new home, and development delays almost defy reason without any real benefits.
Could all levels of government be more engaged in creating a positive environment for new housing by direct leadership and by ensuring a more collaborative, results focused view among decision makers that directly or indirectly impacts housing supply and costs.
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