The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Housing Affordability

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Following on its budget promises to tackle the housing affordability issue, the Turnbull government plans further steps which are directed towards investors and managed investment trusts. 
Last week, the federal government released draft legislation to implement its plan, which includes:
<ul>
<li>enabling investors to obtain a 60 per cent capital gains discount in affordable rental housing;</li>
<li>enabling managed investment trusts (MITs) to invest in affordable housing; and</li>
<li>MITs cannot acquire residential property, other than affordable housing.</li>
</ul>
The media release by Treasurer Scott Morrison’s office said from January 1, 2018, there could be a capital gains discount of up to 60 per cent if investors hold their eligible affordable housing property for at least three years, rather than the standard 50 per cent discount.
“From 1 July 2017, MITs can hold affordable housing for the purpose of deriving long-term rent. The same MIT will also be permitted to derive other eligible investment business income from investments including shares or commercial property,” it added.
MITs will be able to construct or develop the affordable housing property within the MIT which is expected to act as an incentive for MITs to invest in affordable housing projects, according to the draft legislation.
“Consistent with current MIT withholding tax rules, eligible foreign residents will generally be able to take advantage of a reduced withholding tax of 15 per cent on investment returns, including income from capital gains,” said the media release.
“This concessional rate will not apply to capital gains income derived from selling affordable housing held for less than 10 years.”
To be eligible for the higher CGT discount and MIT concessions, the affordable housing tenancy will need to be managed by a registered Community Housing Provider, it says. As part of this, housing providers will determine the tenant eligibility criteria, including the rent charged, consistent with state and territory affordable housing policies.
The draft legislation also includes an integrity measure which said that “MITs cannot acquire investments in residential property, except where it is affordable housing. This will prevent MITs from investing in houses, units and apartments to hold for long term rent (other than affordable housing)”.
“This change provides legislative clarification of the long-standing convention that the primary purpose of the MIT concessional tax treatment is to apply to passive investment income. This change is crucial to maintaining the integrity of the tax base and will help direct foreign investment to where it’s needed most.”
Trusts that currently hold residential property have been given a transitional period until October 1, 2027, for their existing property assets.
The federal government has invited submissions on the draft legislation.
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jonathanchancellor-7SQnKwU6yx

Scott Morrison announces limits on managed investment trusts

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GUEST OBSERVER
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The Federal Treasurer, Scott Morrison’s, draft legislation to assist with housing affordability for Australians is a positive move.
The key initiative is to enable investors to obtain a 60% capital gains discount for investment in affordable rental housing. 
This will encourage Managed Investment Trusts (MITs) to invest in affordable housing as a quality investment product with a positive rate of return.
The Treasurer has restricted MITs to only acquiring affordable housing and therefore eliminating investment in general residential property. The Urban Taskforce believes this is a good policy to encourage additional investment in affordable housing.
Affordable housing and housing affordability are complex issues. There are many more initiatives required by various levels of government to make a serious impact on housing affordability. Importantly these initiatives must have to provide sufficient incentives to the private sector development industry to generate enough take-up to make a real impact on the provision of more affordable housing.
The Urban Taskforce has proposed a modification to the NSW State Environmental Planning Policy for Affordable Rental Housing 2009 that could lead to a large supply of affordable housing. 
The current SEPP does not have sufficient incentive for private developers to take up the provision of affordable homes. What is needed is a 20% floor space uplift to provide 20% of a housing project as affordable homes over a 10 year period. 
We estimate that this could add 40,000 affordable rental dwellings over a 10 year period.
Initiatives that provide incentives to invest in, or develop, affordable housing will ensure a long-term, sustainable supply of affordable housing. Mechanisms that deter investment – such as affordable housing levies, taxes, or mandatory targets, only increase the cost of housing production and deter supply. 
The Urban Taskforce is willing to work proactively with all levels of government on mechanisms to encourage supply and investment.
CHRIS JOHNSON is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Federal Treasurer’s affordable housing initiatives a positive move: Chris Johnson

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GUEST OBSERVER
The CoreLogic Stratified Hedonic Index breaks the market into three segments: the most affordable 25% of properties, the middle 50% and the most expensive 25%.
The data shows over the past year the most expensive quarter of the market has recorded the greatest value growth.
Over the 12 months to August 2017, the most affordable 25% of residential properties nationally have recorded value growth of 2.9% compared to growth of 8.0% across the middle 50% of suburbs and 11.4% growth across the 25% of most expensive suburbs. 
The national chart highlights that across all market segments the annual rate of value change has started to slow over recent months.  Importantly, the chart also highlights that when there have been housing market downturns it has typically been the most expensive properties that have been hardest hit while more affordable dwellings have been more resilient to downturns. 
<h3 class="text-align-center">Annual change in dwelling values across market segments, National</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image1.png" alt="">
Over the period shown, August 1987 to August 2017, the thirty year period has seen values across the most affordable 25% of properties rise 1,517% compared to increases of 580% across the middle 50% of suburbs and 432% across the most expensive 25% of suburbs.  This highlights how affordability has deteriorated substantially at the more affordable end of the housing market.
The second chart shows the change in values across the three broad segments throughout the combined capital cities.  Over the 12 months to August 2017, the most affordable 25% of properties have recorded growth of 4.6% compared to 9.3% growth across the middle 50% of properties and a 12.2% change across the most expensive 25% of the market.  Like the national figures, in the event of a housing market downturn it has been the more expensive housing which has tended to see the greater value falls.
<h3 class="text-align-center">Annual change in dwelling values across market segments, Combined Capital Cities</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image2.png" alt="">
The third chart looks at the growth performance across regional housing markets where the change in values has been much more moderate over recent years than that across the capital cities. 
The 25% of most affordable properties in regional Australia have recorded value increases of 2.5% compared to a 4.6% change across the middle 50% and an 8.4% increase in the most expensive 25% of properties. 
Over recent years, growth in the affordable segment in regional Australia has been the strongest performed suggesting that demand has been for more affordable housing. 
However, as the regional markets have picked-up over the past couple of years, it has been the top 25% of suburbs that have outperformed. 
This is likely to indicate demand for luxury housing outside of the capital cities has risen.
<h3 class="text-align-center">Annual change in dwelling values across market segments, Combined Regional Markets</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-1-image3.png" alt="">
The final chart shows the annual change in dwelling values across the three market segments throughout the capital cities.  Melbourne and Darwin are the only capital cities that have recorded the greatest change in values over the year across the most affordable suburbs and the slowest growth across the most expensive suburbs. 
In all other capital cities, either the middle 50% of suburbs or the top 25% of suburbs have recorded the fastest rate of value growth over the year.  In Melbourne, this is possibly due to the fact that Sydney and Melbourne are the strongest economies in the country and are jockeying to attract talent.  Melbourne has a significant competitive advantage over Sydney in terms of being able to offer more affordable housing and the data seems to suggest that lower priced housing is a big driver which has led to a surge in values across the lower and also middle segments of the market. 
<h3 class="text-align-center">Annual change in dwelling values across market segments, individual capital cities, to Aug-17</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image4.png" alt="">
The stratified hedonic index offers another interesting look into the performance of the national housing market looking at how different segments are performing.  If the current housing market slowdown continues and turns into declines, watch for whether the most affordable sector of the market is relatively stronger performed than the more expensive segment.  With record high levels of household debt and significant first home buyer incentives over recent years the trends in a future downturn could be different to what has been seen in the past.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
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ckusher-ujnxiKuFQs

Premium housing values rise fastest over past year

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Enzo Raimondo was kind enough to conduct a far-reaching chat with Apartments.com.au recently. Currently the Chief Executive Officer of view.com.au, Enzo's previous positions included a stint at Real Estate Institute of South Australia and 16 years as the Chief Executive of the Real Estate Institute of Victoria.

With this wealth of experience under his belt, Enzo Raimondo's knowledge of the hot topic that is rental affordability is equal to any in the market.

The chat began with questions regarding the overall state of Melbourne's apartment market, and consequently the state of the local rental market. Enzo explains the overall rental vacancy is hovering between 2.2% and 2.5%, thus from a rental perspective the overall market is understandably tight.

Certain pockets of the CBD and Southbank though have seen higher numbers in terms of apartment completions in recent years, which is a positive for rental affordability albeit in isolated areas.

In terms of prevailing trends within in the rental market, Enzo notes that the current rental market is flush with people who rent based upon lifestyle decisions. This demographic shift sees predominantly younger renters seeking proximity to amenities and employment options, as opposed to sourcing the cheapest possible rental.  

Another non-price related factor influencing the rental market is Melbourne's worsening commute times, and how this impedes lifestyle choices.

It's this scarcity of time and how individuals choose to utilise their limited time, coupled with the scarcity of land and higher dwelling prices which Enzo notes has resulted in higher proportion of Melbourne's population seeking a long-term rental-based solution.

With Melbourne coming off the peak of its largest ever apartment boom and vacancies hovering above 2%, Enzo Raimondo notes the need to address the supply issue longer term. So too does the state government by way of recently introducing the  (Long-term Tenancy Agreements) Bill 2017 to Parliament.

Enzo Raimondo applauds the move which in part seeks to facilitate longer-term rental agreements for tenants, providing certainty beyond a standard 12 month period. Having taken decades to evolve to this point, the bill seeks to equalise the relationship between tenant and landlord, and provide certainty for both parties over a longer period of time.

Enzo Raimondo also places pets on the agenda as a looming issue, given that allowances are generally not in rental agreements. This is particularly more prevalent in inner city apartments blocks which are a far cry from the suburban blocks with backyards that renters with dogs, in particular, are drawn to.

Quizzed on how scaled back foreign investment may mould the rental market, Enzo believes that this will only be a short term influence. Whilst foreign purchasers may dip, Enzo explains that a transitioning market will invariably pick up the slack in terms of purchasing Melbourne investment properties (read: added local rental stock), identifying expats from London and Hong Kong as likely sources in picking up the slack.

This, in turn, ties in with Apartments.com.au's question regarding the glut of vacant apartments across inner Melbourne, as has been reported in recent months.

Citing the low vacancy rate, Enzo Raimondo believes this is, for the most part, a furphy. He does caution though that a proportion of Asian-based buyers in recent years have purchased apartments for their children, whether they are studying in Melbourne and/or living here temporarily, and that this scenario can lead to the perception of masses of empty apartments.

Overall though Enzo Raimondo is not concerned about the perception or future prospect of swathes of empty apartments throughout inner Melbourne, citing Melbourne and Sydney as Australia's international destinations where investors will always be drawn to.

On Enzo Raimondo's relatively new position as CEO of view.com.au, he explains he is now at the helm of one of the nation's most astute website capable of delivering viewers real time property information.

The re-birthed view.com.au is designed to empower the consumer in their property choices, closing the data gap between the end user (the consumer) and agents. Enzo explains view.com.au empowers those who are on the hunt for a property, and the website's booming growth numbers underline this point.
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silvermb

Enzo Raimondo talks about Melbourne's rental market

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<img src="https://counter.theconversation.edu.au/content/82440/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
One of the biggest turnoffs for US investment and workers is also the biggest pet peeve for locals – housing affordability. 
Our research finds lifestyle factors are what makes Australia stand out from other international destinations. 
We combined 13 in-depth case studies of firms with strong ties between the United States and Australia, a survey of business attitudes on foreign investment, and rigorous economic analysis in our research into the A$1.47 trillion two-way US-Australia investment relationship (A$860 billion of which is US investments in Australia). 
Australia undoubtedly benefits from its world-class universities, low sovereign risk and good governance. It also benefits from its strategic position as a gateway to important Asian markets with an internationally mobile workforce. 
Yet as innovative and business-friendly as Australia has become in its short history, what makes Australia stand out to international workers is its quality of life.
We found this not only attracts highly skilled and internationally mobile individuals, but it also makes Australia a compelling place for them to settle. Families are drawn to Australia’s good health system, strong schools, low crime rates and unblemished physical environment. These “lifestyle dividends” have been enormous for Australia.
Hard to find a home
The two cities that by most measures attract the majority of foreign talent – Sydney and Melbourne – maintain exorbitant housing prices. This makes the desirable Australian lifestyle unattainable for even highly skilled and highly paid talent. 
A prominent international housing affordability index recently released listed Sydney as the second-least-affordable major housing market in the world. The city’s median house price of $1,077,000 is 12.2 times median household income of $88,000. Melbourne was only slightly better as the sixth-least-affordable housing market, with a multiple of 9.5 times median household income.
Some of the most attractive areas for workers relocating from overseas, such as coastal areas in Sydney near to the central business district, are the most expensive. Given the geographic size of cities like Sydney and Melbourne, living further away from these areas may not only be less attractive in terms of amenities, but also involve substantial commuting times. That represents a significant decrease in the quality of life.
There’s significant policy debate in Australia about how best to resolve the housing affordability crisis. The fixes include a combination of increasing housing supply (for example, through land releases and zoning changes) and reducing demand-side drivers (such as negative gearing).
We found that it’s not just public policy on housing affordability that’s affecting investment. The urban environment – ranging from infrastructure and public transport to school systems and cultural attractions – will also face increasing pressure given projected population increases in Sydney and Melbourne.
Innovators have families
For many of Australia’s most remarkable success stories in innovative technology, from Atlassian to Google Maps, what attracted the talent here in the first place is not Australia’s innovative environment as much as their appreciation of Australia’s attractive quality of life, particularly for young families.
One of the businesses we looked at was Amazon Web Services (AWS), the innovative cloud computing division of Amazon.com. It’s responsible for up to a third of global web traffic through its on-demand virtual computing and hosting platforms for businesses, governments and individuals. 
Managers at AWS believe that the best locations attract the best employees, which in turn helps attract and retain the best customers. Given Australia’s desirable and family-friendly environment, as well as reputation for early adoption of new technology, Australia encourages this valuable chain reaction.
Attracting one tech giant to Australia also helps other companies. AWS, along with its roughly 1,000 well-paid Australian employees, has helped local companies, like software company Atlassian and online marketplace Freelancer.com, globalise more quickly. 
It gave them dramatically more computing power and server capabilities in a cloud format at a fraction of the price of traditional onsite facilities. It’s paid for on a “pay as you go” basis rather than having to guess and buy all IT capacity upfront for a few years ahead.
The government has made it clear it wants an innovation-focused high-skills-based economy. It has laudably embraced an innovation policy while other governments (notably in the US) have not. 
It should realise, however, that innovation policies cannot be divorced from other public policies – particularly the sort that ensure that Australian cities are great yet affordable places to live and work. 
Ultimately, such policies will be critical for attracting and maintaining increasingly mobile human and financial capital to Australia – the sort that has paid off handsomely for Australia’s economy.
<a href="https://theconversation.com/profiles/jared-mondschein-400243" target="_blank">Jared Mondschein</a> is Research Associate, US Studies Centre, University of Sydney and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Our lifestyle, not our innovation, attracts US investment to Australia

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Housing affordability, or rather the lack of it, is likely to persist in some capital cities because of a demand-supply imbalance and could have a big economic impact for Australia, according to the Committee for Economic Development of Australia’s latest report.
The issue of land supply needs greater focus, says the non-profit organisation's Housing Australia report 
“The great Australian dream of owning your own home has been around for more than half a century but with high house prices in some parts of Australia, there has been much debate about whether it will continue," CEDA Research and Policy Committee chairman, Professor Rodney Maddock said.
“The aim of this report is to provide a holistic review of housing in Australia and look at some of the drivers,” he added.
CEDA’s research shows that barring any major economic jolts, demand pressures are likely to continue over the next 40 years and supply constraints will continue. This is particularly the case in capital cities with a growing population and where an increasing proportion of Australia’s population are expected to reside. 
“Often the debate around housing affordability is centred on a few topics such as foreign investment, negative gearing and interest rates," said Professor Maddock.
“What the CEDA report highlights is that while these might be some of the factors, the issue is far more complex and without changes now, could have longer run consequences."
The research also considers the impact of housing affordability on the poorest citizens and includes a recommendation by Dr Judith Yates that every year Australia needs 20,000 new homes that those on low income can afford.
“Prolonged housing affordability issues will result in more people entering retirement without owning their home and low socio-economic households pushed to outer or regional areas where transport infrastructure is poor and job prospects are lower,” said Professor Maddock.
“In the long term this could have budget implications for governments as more people become reliant on government assistance.”
The report also suggested that the current structure of land supply may inadvertently make it in developers interests to drip feed dwellings into the market. 
“CEDA’s report looks at the UK as an example where developers bid high to obtain land for development and it is then in the interests of developers to build slowly to take advantage of rising market prices,” he said.
“This is an area that should be further examined and CEDA’s report highlights that a key difficulty in drawing policy recommendations for Australia is a lack of consistent and rigorous data available on supply of land for development in Australia and its correlation to housing prices.”
CEDA’s recommendations include:
<ul>
<li>Relaxing planning restrictions, particularly those imposed by local councils, making them more consistent and allowing for increased density.</li>
<li>Developing consistent planning and funding models for transport infrastructure to better connect new housing developments to the various employment hubs.</li>
<li>Improving protections for long-term renters.</li>
<li>Further relaxing rules around the means testing of income received from downsizing in situations where it results in greater housing density.</li>
<li>Moving towards annual land tax in place of transaction taxes on housing such as stamp duty.</li>
<li>Taxing a larger component of capital gains.  </li>
</ul>
“CEDA’s report in June on the service sector highlighted the majority of workers in Australia are engaged in service industries and this is growing. However, the shift to a service economy has contributed to a larger population living in our cities and coupled with overall population growth through migration, has impacted housing demand, especially in Sydney and Melbourne,” he said.
With most Australians choosing to live in our major cities, it is likely the trend of more people living in apartments and more long-term renters will become permanent and this means increased protection for renters is needed.
“In addition, we also need to ensure better transport and infrastructure to accommodate increased inner city density and to connect outer suburban developments to employment hubs.”
“Easing some of the tax incentives to invest in or retain residential property may also assist.”
He suggested that policies need to be in sync across the different tiers of government to address the issues.
“Despite the outlook of continued growth there are options for government to ease pressure and ensure long term negative consequences are reduced.”
For more information, <a href="https://www.ceda.com.au/" target="_blank">click here</a>.
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prateek24-ezbwHMbNAk

Is it time to let go of the great Australian dream? CEDA

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CoreLogic recently released the June 2017 Mapping the Market Report. 
The report looks at how the cost of housing has shifted across Australia’s capital cities by suburbs over the past five years by comparing thematic maps which show suburb median values.  
Over the five years to June 2017, there has been a significant decline in the number of suburbs with a median value below $400,000 while there has been a significant increase in suburbs with values above $1 million. 
The decline in lower value housing and rise in more expensive housing is most prevalent in Sydney and Melbourne however, it is also prevalent to a more moderate degree in other capital cities.
The following maps show the suburb median house values across the capital cities in June 2012 and June 2017. 
The circles on the map represent distances of 10 kilometres, 20 kilometres and 50 kilometres from the capital city GPO.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.36%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.36%20pm.jpg" alt="">
In June 2012, 21.3% of Sydney suburbs had a median house value of more than $1 million, by June 2017 55.7% of suburbs had a median house value in excess of $1 million while only 8.7% of suburbs had a median value below $600,000 and most were located more than 50 kilometres from the CBD.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.46%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.46%20pm.jpg" alt="">
In June 2012, 9.5% of Melbourne suburbs had a median house value in excess of $1 million and by June 2017 that figure had increased to 32.6% of suburbs. 
On the flip-side, 24.3% of Melbourne suburbs in June 2012 had a median house value below $400,000 compared to just 2.7% by June 2017.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.58%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.07.58%20pm.jpg" alt="">
In June 2017 only 5.9% of Brisbane suburbs had a median house value of more than $1 million compared to 1.6% in June 2012. 
In June 2017, 23.2% of suburbs had a median house value of less than $400,000 compared to 34.5% in 2012.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.10%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.10%20pm.jpg" alt="">
In Adelaide, 43.0% of suburbs had a median house value of less than $400,000 in June 2012 compared to 25.8% in 2017. 
37.2% of Adelaide suburbs had a median house value of more than $600,000 in June 2017 compared to 20.6% five years earlier.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.26%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.26%20pm.jpg" alt="">
7.8% of Perth suburbs had a median house value of more than $1 million in June 2012 compared to 11.1% by June 2017. 
Only 17.7% of Perth suburbs had a median house value of less than $400,000 in June 2017 and this figure was down from 29.0% five years earlier.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.38%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.38%20pm.jpg" alt="">
In June 2012, the majority (67.4%) of Hobart suburbs had a median house value of less than $400,000 however, by June 2017 43.6% of suburbs had a median below $400,000. 
Although the number of suburbs with typical values below $400,000 has reduced over the past five years, 89.4% of the cities suburbs have a median house value below $600,000 and no suburb has a median value in excess of $1 million.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.51%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.08.51%20pm.jpg" alt="">
Darwin has suffered through a lack of more affordable housing for a number of years now with only 1.8% of suburbs having a median house value below $400,000 in June 2017, down from 1.9% five years earlier. 
54.5% of Darwin’s suburbs had a median house value of more than $600,000 in June 2017 compared to 50.9% five years ago. 
The data highlights that Darwin housing affordability is relatively unchanged over the past five years.
<a href="https://www.propertyobserver.com.au/images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.09.04%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/11/Screen%20Shot%202017-08-11%20at%201.09.04%20pm.jpg" alt="">
In June 2012, just 1.1% of suburbs in Canberra had a median house value of less than $400,000, by June 2017 no suburbs sat below the $400,000 threshold. 
The proportion of suburbs with a median value of more than $1 million has shifted from 8.6% in June 2012 to 12.0% in June 2017.
The charts and commentary highlight how the supply of affordable housing has reduced over the past five years. 
The decline in lower priced housing stock is most stark in Sydney and to a lesser but still significant degree in Melbourne. 
The fall in mortgage rates over the past five years has made servicing mortgage debt easier and eat up a lower proportion of household income. 
At the same time there has been little growth in household income but dwelling value in Sydney and Melbourne in particularly have increased significantly. 
For those that own a home and have seen values rise it has created a significant wealth boost while for potential buyers, particularly in Sydney and Melbourne, wages haven’t kept up with value growth which has led to a deterioration in the supply of lower priced housing. 
All of these factors have led to extreme difficulty in saving a large enough deposit to enter into the Sydney and Melbourne housing markets for those that don’t already own. 
While the problems are not so prevalent elsewhere, across all cities the supply of lower priced housing has reduced over the five years to June 2017 highlighting greater difficulty for lower income households to own residential property.
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j.ballantyne1990-6AQqhLzZaK

Affordable housing in Sydney and Melbourne declines in past 5 years

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<img src="https://counter.theconversation.edu.au/content/82886/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The view of Australian banks on the risk that mortgage stress poses to our economy and the banks’ own viability is worrying.
Shayne Elliott, CEO of ANZ Bank commented in this week’s Four Corners report:
"The reality is that housing loans are pretty good because they’re quite diverse in terms of lots of relatively small loans across ah across the country."
This view is in contradiction to research from the United States which finds housing markets there are less diversified than previously thought. This means any house price shocks will likely occur simultaneously across the country, causing large cumulative losses to borrowers and banks via mortgage defaults. Australian housing markets are likely to be even more concentrated than in the US because of the population size of Sydney and Melbourne.
Banking regulator the Australian Prudential Regulation Authority (APRA) has already issued guidelines to the banks on tracking exposure to mortgages and limiting the growth of loans to investors, in particular for interest-only loans. An independent review by Stephen Sedgewick on behalf of the industry also recommended banks stop paying mortgage brokers based on the volume of loans they secure, in an effort to reduce risks. But these steps might not be enough to ensure security.
Australian bank exposure to mortgage risk
Bank losses during the global financial crisis were in large parts driven by borrowers not being able to make their mortgage repayments. After receiving a loan, borrowers may experience income shocks like loss of jobs or demotion and expense shocks like higher petrol prices or interest rates, that affect their ability to service their mortgages.
Australian mortgage contracts are risky for borrowers in international terms. Unlike other countries, Australian banks offer to lend only up to five years at a fixed rate and the majority of loans are at a variable rate. 
This leaves Australian borrowers exposed to interest rate increases. In the past few years, interest rates were lowered as Reserve Bank of Australia economists targeted low inflation rates.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/RentEarnings.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/RentEarnings.png" alt="">
www.rba.gov.au, Author provided
Interest rates are now close to zero, limiting the ability of the RBA to stimulate economic growth. There’s the possibility the RBA could raise interest rates, causing shocks to mortgage borrowers. My research shows this shock could increase bank losses substantially.
At the moment 23% of consumer expenses are housing related and this number is likely higher for mortgage borrowers and could be growing. Interest rate increases, in combination with the current high debt levels, are therefore likely to increase inflation and trigger further interest increases. 
Dealing with the risk of mortgage stress
Current bank portfolios are not well diversified, if 60% of bank assets are in mortgages. Other loan classes such as commercial real estate loans and small to medium enterprise loans are also often property-backed. 
Bank lending standards need to be more consistent to avoid borrowers shopping around for the lender that offers them the highest loan amount. Lending standards should also consider the concentration of housing income and expenses in a borrower’s portfolio.
Banks should promote fixed rate mortgages. This type of mortgage transfers interest rate risk from borrowers to the banks, that are better placed to manage this risk. This may come at an additional cost but should be small compared to the cost borne by consumers should the housing bubble ever burst. 
There also needs to be more scrutiny of the use of offset accounts and redraw facilities, being used as an offset for outstanding loans. Borrowers often use these funds to purchase additional properties and they may not be available in the case of mortgage default. Instead of promoting offset accounts it may be better to give borrowers a prepayment on their mortgage, but not an option to redraw. Should consumers want to draw down on the equity in their homes, they could then apply for a second mortgage. 
Mortgage brokers should act as independent advisers, a tool for consumer information and bank competition, as smaller lenders in particular rely on mortgage brokers. The Sedgwick report suggested the loan to value ratio of mortgages should be considered when paying mortgage brokers. This would mean that loans with high loan-to-value ratios (where the borrower is more likely to default) would earn a lower fee.
The Sedgwick banking review has been a step in the right direction, but the focus should be on banks rather than mortgage brokers, as it’s ultimately the bank that is in a contract with the consumer. 
Some of this may require a fundamental value change. It’s not likely the Australian appetite for property will change but this means we need to hedge our bets against any risks by improving diversification and the way banks finance mortgages.
<a href="https://theconversation.com/profiles/harry-scheule-3573" target="_blank">Harry Scheule</a> is Associate Professor, Finance, UTS Business School, University of Technology Sydney and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Banks shouldn’t underestimate the risk of concentration in the housing market

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GUEST OBSERVER
Overall, I was disappointed by the lack of substance in the Four Corners program Betting on the House.
Claims were made without backing evidence. Too much was made of individual ‘hard-up’ cases. When will some borrowers understand that it is ultimately your responsibility to work out if you can service a loan or not?! Portraying the basket case of Mandurah as something that could happen to the rest of the country is laughable.
Mandurah, a regional town, approximately 100km south of Perth, has had problems for many years now. All that should be taken from this point is Australia has a mixed housing market where risks are elevated on isolated, regional areas.
Yes, of course, housing prices can and do fall. Perhaps if that point alone needs to be stated out aloud, over and over again, then fair enough. But I got a distinct impression that the implicit message that Mandurah could be a precipitous for something much wider and bigger.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/d490ea71-67d8-464e-a910-da9867f795c4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/24/d490ea71-67d8-464e-a910-da9867f795c4.jpg" alt="">
Much was made of rising loan defaults and mortgage stress getting to a breaking point. Yet the reality is loan defaults remain at low levels and loan servicing at this stage is not an issue.
Yes, of course, if the RBA lifts rates aggressively, we could have a large correction in the market. For the record, we have been stating this in our Housing Boom and Bust reports for a number of years now. It is a risk that is well and truly acknowledged, not just by myself but by many others including the RBA who recently discussed what would now be regarded as the new “normal interest rate setting”.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/e83fb76d-c4b0-4abf-8b70-6e07809bf536.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/24/e83fb76d-c4b0-4abf-8b70-6e07809bf536.jpg" alt="">
Perhaps if there was a more rigorous discussion on this point (where is the new normal for interest rates) that would have been useful. Quite clearly, with the excessive amount of private debt in the economy, a cash rate of say circa 6% would smash the community, which I personally find concerning.
This is not the first time Four Corners has covered the housing market.
In May last year, they ran a story on the market, mainly covering negative gearing but also discussing how the market could pop. They rolled out Steve Keen and Lindsay David.  It was a relatively good piece, overall in comparison.  
Since then, the Liberal Government has gone some way to reforming Negative Gearing by preventing plant and equipment depreciation claim on existing investment properties and cutting out travel expenses. And there also has been further clamp downs on foreign investment activity with reports offshore that the rate of capital outflows from China has significantly slowed.
Yet, the market continues to rise…
Macrobusiness today provided a scoop on the fact that many of the commentators featured in the segment felt that their comments on population growth as being a contributor to an overvalued housing market, was cut out!  If so, this is a disgrace on the part of 4 Corners producers. Let’s just remember, Melbourne’s population is expanding by 120,000 a year or 2.4% pa.
Sydney is rising at 90,000 a year or 1.7% pa. These are massive numbers which are causing some rather obvious issues on housing and creating a strain on our existing infrastructure with long term ramifications for our natural resources.
Excessive population growth, while not the sole reason, is most certainly a large reason why Sydney and Melbourne housing markets are massively overvalued right now and yet are not correcting despite macro prudential action which has included interest rate rises on investors.  
If there cannot be a public discussion on this issue than this country has some real problems.
Louis Christopher is managing director of SQM Research. He can be contacted <a href="https://www.sqmresearch.com.au/" target="_blank">here</a>.
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louischristopher-TWpYcZDLBK

Four Corners episode too light on: Louis Christopher

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<img src="https://counter.theconversation.edu.au/content/80956/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A recent suggestion that new housing on inner-city public land should start from a presumption of 100 percent social housing prompted indignation in government circles. “We can’t condemn another generation of Victorians to live in housing poverty,” huffed the housing minister, Martin Foley.
It’s curious, then, that we heard barely a peep about the latest government announcement that the height of an apartment tower associated with the Queen Victoria Market makeover will be reduced by removing the original affordable housing component to a separate, smaller development.
It is tempting to conclude that both responses accord, naturally, with the interests of the developers of private housing. But that would be to over-simplify the complex issue of social mix. It is increasingly clear there is no one-size-fits-all.
The principle of social mix now routinely drives public housing estate renewals and new housing builds on surplus public land. This is usually expressed in a 50:50 mix of social (public and community) and private housing, though the social component is often much smaller. As the stock of public land is ever diminishing, and affordable housing is in such short supply, this is problematic.
I have argued before that government commitments to social mix are often disingenuous. They are more likely to be driven by an ideological imperative to privatise public assets, or at best to secure upgrades to public housing without having to fund them directly.
What does the evidence tell us?
Soon-to-be-published research by Abdullahi Jama and I on the Carlton public housing estate redevelopment supports these conclusions.
Our findings show that public and private residents on the new estate are not mixed. They are divided into separate buildings with separate gardens, explicitly with a view to increasing the value of the private apartments.
The case that normally follows from such a finding is that public and private households should be “salt and peppered” through new apartment buildings to encourage social mixing. While Abdullahi and I agree this is a necessary precondition for social mixing, this is not the entirety of our argument. We question the very basics of the policy orthodoxy on social mix.
The rationale for building upmarket private housing in low-income areas draws on the neighbourhood effects thesis, which says that concentrations of poverty exacerbate its effects.
This might be the case in large areas of disadvantage, such as the US Rust Belt cities, parts of the UK and even some outer suburbs of Sydney and Melbourne. But it doesn’t stand up in highly resourced, gentrified inner cities where community facilities and opportunities for interaction are plentiful.
Even where poverty is widespread, studies from Toronto, Vancouver, Amsterdam and London show that imposed social mix disrupts support networks and social structures. Involuntary displacement from a neighbourhood often has serious effects on physical and mental health.
Minority communities may benefit from concentration in terms of safety and maintaining their cultural heritage. A substantial body of research shows that social mix policies do not replace the social capital they displace.
So, are there good reasons to introduce social mix?
The strongest argument is the reduction of stigma that for some people comes with public housing. If the public housing is indistinguishable from private housing, the public tenants’ wellbeing is considered to be improved.
It’s not entirely clear, however, whether this is due as much to the housing being new and decent as to having private residents as neighbours. Also unresolved is the question of whether stigma is felt as keenly on estates in gentrified cities, which are islands of public housing in seas of inner-city privilege, as it may be in widely disadvantaged neighbourhoods.
There is certainly evidence that, for some people, being thrust among others from different class and socio-economic groups can increase feelings of inadequacy, discomfort and sometimes hostility.
So how do we provide affordable housing?
These issues vary across place, time and individuals. What is clear is that different responses are needed accordingly.
It is also clear that, with dire shortages of affordable housing in so many cities, all opportunities should be seized to build as much affordable housing as possible. That’s not just public and community housing, but “key worker” housing, “below market rent” housing, co-op housing and community land trusts. Models for all these exist and should be encouraged and explored.
A diversity of housing types must include diverse sources of funding, with a range of support programs. Involving future residents in design and ensuring they know what they’re moving into, and enabling people to organise their own housing, are far more effective ways of building social harmony than enforcing a rigid notion of mix.
Separate buildings for social tenants and private residents next to the Vic Market might be a perfectly reasonable response. But it should come from nuanced public policy and optimal use of public resources, rather than the developers and their sales people.
<a href="https://theconversation.com/profiles/kate-shaw-39629" target="_blank"></a>
<a href="https://theconversation.com/profiles/kate-shaw-39629" target="_blank">Kate Shaw</a> is Future Fellow, University of Melbourne and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
<a href="https://theconversation.com/profiles/kate-shaw-39629" target="_blank"></a>
 
<a href="https://theconversation.com/profiles/kate-shaw-39629" target="_blank"> </a>
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