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

<html><body>
The gap between average incomes and average home prices in Australia continues to widen, according to a new report by PowerHousing Australia and CoreLogic. 
According to the report, The Australian Affordable Housing Environmental Scan 2017-18, the outlook for low-income earners will remain bleak while property prices continue their double-digit growth march while wages can’t keep up. 
The report, by PowerHousing Australia and CoreLogic, looks at the key metrics for housing affordability across the country and presses upon the urgency to implement new measures, such as those announced in the recent Federal and NSW state budget to improve access to the housing market. This is especially important for those on lower incomes such as first home buyers, key workers, seniors and social housing tenants.
“The indicators of housing affordability in Australia show that there is an increasing gap between average incomes - particularly those in the lowest two quintiles - and the price of an average home,” PowerHousing Australia CEO Nicholas Proud said.
Even RBA Governor Philip Lowe said earlier this year that the combination of record high household debt to income when wages were growing slowly was a “sobering combination”.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/DisposableIncome.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/06/20/DisposableIncome.png" alt="">
“The report shines a light on just how acute the housing market participation challenge is for low- income earners, for both renters and those looking to become homeowners. The situation for first home buyers is particularly dire today,” said Proud. 
First home buyer rates have continued their two-decade-long downward trend. Over the past five years, the average loan they take out has increased by less than $9,000, while the average dwelling price has gone up by $120,000 nationally and $317,300 in Sydney over this period, she added.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/FHBs.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/20/FHBs.png" alt=""> 
However, CoreLogic head of Research Tim Lawless noted some encouraging indicators on the affordability front but said risk factors remain. 
“Low interest rates, strong lending finance, a surge in building approvals and subsequent record high dwelling commencements and completions are all positive signs for affordability,” Lawless said. 
“Australia has never built as many homes as the number being built today, however there needs to be a sustained level of building over and above the 10-year average rates for there to be a consistent and meaningful improvement in housing affordability, particularly in Sydney.”
Sydney incomes are on average higher than other parts of the country but home prices are more than eight times the median income in Greater Sydney, he said. 
For a mortgage with an 80 per cent loan to valuation ratio, families need to set aside 45 per cent of their annual gross household income to service the loan. 
In Sydney, only 3.5 per cent of houses sold over the 12 months to February 2017 transacted for less than $400,000 – this figure was 25.8 per cent of all annual home sales in Sydney five years ago. 
He attributed strong population growth, driven by high net overseas migration and the ongoing strength of household formation rates has created strong demand for housing which contributes to price rises.
“In Sydney, it is now almost 13 times more likely for a house to sell for more than $1 million than to sell under $400,000 and it is 2.3 times more likely for a unit to sell for more than $1 million than to sell for less than $400,000. For houses, there are also more sales over the past year above $1 million than below $400,000 in Melbourne and Canberra. Sydney has more units selling above $1 million than those below $400,000,” Proud said.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/CapitalCityRatios.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/20/CapitalCityRatios.png" alt="">
The report indicates that policy levers available to governments can and do have a major impact. The Federal Budget measures for housing announced in May promise to provide some respite for those in rental stress or struggling at the higher percentage end of the mortgage-to-income ratio scale. 
“In the late 1990s we saw negative gearing and capital gains tax changes drive investor activity, first home owner grants in 2009 saw first home owners reach 30 per cent of all lending finance and foreign investment changes in countries such as Canada contributed to record levels of foreign investment into countries such as Australia,” said Proud. 
“It is clear that housing policy can influence and drive activity into areas of the housing market and boost the provision of housing.” 
</body></html>

prateek24-ezbwHMbNAk

Income and home price growth disparity to continue, says new report

<html><body>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The NSW Budget demonstrates good economic management but the housing construction sector must continue to perform.
The main risk to the very positive NSW Budget is the outlook for the housing market.
Budget Paper No 1, Section 3.4 states ‘The largest risk to the forecasts, both to the upside and the downside, is the outlook for the housing market...’
The Budget indicates that stamp duty from the housing sector is $8.8 billion for 2015 – 16, $9.6 billion for 2016 – 17 and predicted to be $9.6 billion for 2017 – 18.
These are massive inputs to the Budget amounting to 31% of the state’s taxation revenue.
The Budget treads a delicate path between actions to help with housing affordability while continuing to boost housing supply.
The Urban Taskforce is concerned that there are a number of trends in the planning system that could upset this balance and slow down housing supply and therefore reduce stamp duty revenue.
The Budget initiatives on housing affordability are to help first home owners by eliminating or reducing stamp duty but the former Governor of the Reserve Bank, Glenn Stevens, has raised concerns that the saving may simply flow into higher house prices.
Glenn Stevens, in his report to the NSW Government on housing affordability, also cautioned another initiative in the NSW Budget where a levy is to be added on stamp duty for foreign investors as this could slow down housing supply.
Other risks to the forecasts for the housing market include the growing trend of Sydney councils of adding 10-15 percent levies on new housing on new housing developments to provide for affordable housing.
The Urban Taskforce believes this has the flow on effect of inflating the price of the other 90 percent of housing in the development, making these homes more costly and unaffordable to buy, or it will make projects unfeasible and therefore reduce supply.
The continuing confusion over local council amalgamations is also a risk to effective planning decisions being made.
The allocation of $14 million in the Budget and $40 million over the next 40 years to housing affordability should ensure that the Office of Housing Coordination and the Housing Delivery staff in the Department of Planning and Environment will be able to unlock key projects that are caught up in the planning system.
The $123 million allocated to the Parramatta Road Urban Amenity Improvement Program is a positive input to help drive the renewal of this corridor. 
The high investment in infrastructure of $72.7 billion over 4 years is an important initiative to underpin population growth in the state and particularly in Sydney. The investment in the Sydney Metro is particularly important.
The allocation of $12.5 million ($70.6 million over 4 years) to accelerate major project assessments is also very positive.
Overall the Budget demonstrates that NSW is being well managed in terms of finance. Most of the Budget items were released before the Treasurer’s speech.
The Urban Taskforce is keen to work with the NSW Government to ensure that the economic and jobs boost coming from a vibrant housing market continues into future years.
 
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
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>.
</div>
</div>
</div>
</body></html>

cjohnson-8xfqfuuCSq

Positive NSW Budget- but housing construction a risk: Chris Johnson

<html><body>
GUEST OBSERVER
A detailed survey by the Urban Taskforce has found that Sydney design standards are adding $150,000 to the cost of the average apartment.
Sydney apartments are costing far more than those in Melbourne and Brisbane mainly because the NSW planning system requires much higher standards.
The Sydney standards are controlled by the State Environmental Planning Policy 65 and the NSW Government's Apartment Design Guide which set standards for areas, solar access, cross ventilation and other requirements that end up adding around $150,000 to the purchase price of an average 2 bed apartment compared to a Melbourne equivalent.
With housing affordability being such a big issue in Sydney we thought we should check out the relative standards that apply in Sydney compared to Melbourne and Brisbane.
We commissioned Sydney planners HDC along with architects Turner Studio and Quantity Surveyor John Ferrarin to measure the difference between the standards required between the various cities in Australia.
We were amazed at the results of this independent research that demonstrated that the average two bedroom, two bathroom apartment in Sydney that is costing $750,000 could be bought for $600,000 if Melbourne standards were applied.
The NSW / Sydney standards are from well-meaning planners wanting big apartments that get lots of sunshine but these amenities come at a cost that is forcing many purchasers out of the market. The apartment dwellers of Melbourne and Brisbane are not very different from those in Sydney so the Urban Taskforce believes we should relax the Sydney standards particularly in urban precincts so more people can live an urban life in apartments.
The biggest difference is in the square metres required for a two bed apartment with two bath rooms. Sydney standards require 75 square metres but in Melbourne 65 square metres is achievable. At the average Sydney sale price of $10,000 a square metre this adds $100,000 to the cost of an apartment.
In Scandinavia a two bedroom apartment can be even smaller at 55 sqm by using clever design.”
The other cost saving elements include reducing the requirements for cross ventilation, solar access in winter and building depth requirements which add $24,000 to the sales price in Sydney compared to Melbourne.
A combination of more flexibility for above ground car parking that is well screened, excessive ceiling heights for kitchens, and lower floors along with additional open space all add up to a further $33,000 difference in costs over a Melbourne equivalent. All up this amounts to more than $150,000 that Sydney apartment purchasers pay more than the Melbourne standards require.
On top of this the higher and less flexible Sydney standards are stopping a lot of residential projects from being built.
The requirement for 70 percent of apartments to get solar access in mid-winter for 2 hours between 9am and 3pm means many housing proposals in high rise urban areas will be rejected by zealous council planners. In Melbourne and Brisbane, where there are no such solar access requirements, high rise apartments will be feasible.
The Urban Taskforce believes that the NSW apartment controls must be relaxed for projects that contribute to 'housing affordability' so that $150,000 could be saved on the purchase price.
We also believe the NSW Apartment Design Guide should have an 'Urban Core' section that reduces standards in these locations to Melbourne levels so that urban high rise apartments can be encourages to help with housing supply.
The Urban Taskforce has an expectation that changes may be supported by the NSW Government as the recently released 'Plan to Improve Housing Affordability' included as Policy 18 'The Minister for Planning will issue guidelines to facilitate smarter and compact apartments.'
The former Governor of the Reserve Bank of Australia, Glenn Stevens, in his report on housing affordability, referred to the $150,000 additional cost figure and stated that 'If changes to regulations and charges could alleviate this, the price of shelter could, in time, be materially lower.'
The Urban Taskforce is keen to work with the NSW Government to get the appropriate balance between housing affordability and amenity standards. We believe that part of the reason that apartments are so much more expensive in Sydney compared to Melbourne and Brisbane is due to excessive amenity standards.
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>.
</body></html>

jonathanchancellor-7SQnKwU6yx

Sydney apartments costing $150,000 more than Melbourne apartments

<html><body>
A survey of mortgage brokers has found 70 percent of respondents do not believe the housing markets in Sydney and Melbourne have peaked.
The survey of mortgage brokers by MyState Bank found 23 percent believe the markets are peaking now. Some 7 percent of brokers believe the markets will soon peak.
Of those that said the housing markets in Sydney and Melbourne would continue to grow, 3.5 percent said they expected continuing strong growth and 21 percent expected medium to strong growth to continue.
43 percent of respondent brokers said that while growth would continue, it would slow significantly. The remaining 3 percent said they expected the markets to peak next year.
Huw Bough, MyState Group Executive Broker Distribution said the survey results showed MyState’s broker partners were more positive about the Sydney and Melbourne housing markets than some other financial sector commentators.
“This will be encouraging for home owners and those looking to get into the market," he said.
"At the same time, survey findings indicate that home owners are growing wary about the ability of banks to keep rates at their current levels in the short to medium term, despite a historically low official cash rate of 1.5 percent,” he said.
The survey found 61 percent of respondent brokers were seeing a growing number of customers move to partially or fully-fix home loan interest rates.
When asked what proportion of their clients 24 percent of brokers said more than half of their clients had partially or fully fixed their home loans, and a further 16 percent of brokers said more than 40 percent of their clients had locked in rates.
Just under 37 percent of brokers said the proportion of customers wanting to fix loans had increased by 20-25 percent compared to six months ago, while another 23 percent said the increase was 10-20 percent over the same period. 
</body></html>

 Sydney, Melbourne housing markets have not peaked, brokers tell MyState

<html><body>
Housing affordability improved across all states and territories in the first quarter of 2017, however the number of first home buyers now making up the total owner occupied housing at 13.4 percent, according to the Adelaide Bank/REIA Housing Affordability Report.
The Adelaide Bank/REIA Housing Affordability Report found the proportion of median family income required to meet average loan repayments decreased by 1.3 percentage points to 30.4 percent.
Malcolm Gunning, president, REIA said first home buyers now make up 13.4 percent of total owner occupied housing.
"This rate has been dropping steadily over the past 5 years yet seems to have stabilised over the past 18 months," he said.
“The average loan size to first home buyers decreased by 3.2 percent over the March quarter and decreased by 0.4 percent over the past twelve months, to $313,433.
"Over the quarter, the average loan size to first home buyers increased in South Australia and Tasmania.
“It will be interesting to see the effects that stamp duty exemptions and concessions announced in Victoria and more recently in NSW have on first home buyers.
“We anticipate that more first home buyers will be enticed to enter the market place. However, it will take time for any response to filter into our data as the changes do not come into effect until 1 July 2017 in either state.
"Over the March quarter, the proportion of median family income required to meet rent payments increased by 0.1 percentage points to 24.6 percent.
"Rental affordability improved marginally in New South Wales, South Australia, Western Australia and the Northern Territory.
"Historically, rental affordability declined markedly from the June quarter 2007 reaching its lowest point in the March quarter 2010. Since then rental affordability has been showing a trend improvement reflecting the pickup in investment in housing from the end of 2011."
</body></html>

Housing affordability improves nationwide in Q1 2017

<html><body>
Close on the heels of Citi’s senior economist warning about Australia’s overpriced housing market, the chief executive of ANZ has voiced similar concerns.
Home prices are “very inflated,” ANZ’s CEO Shayne Elliott told Bloomberg but said the probability of an outright crash is “really low.”
Elliott made his comments with Bloomberg Television’s Stephen Engle in Beijing. 
In Sydney, home prices have risen 75 per cent in the past five years, and the city has been ranked only behind Hong Kong as the world’s least affordable housing market.
Asked whether a crash is looming, Elliott said it’s “a really low probability, but it is certainly something we stress test a lot, and think about.”
Elliot’s caution is the latest in warnings about Australia’s overpriced housing market. 
Citigroup Inc’s chief economist Willem Buiter recently said Australia needed to fix its “spectacular housing bubble” with tougher regulatory measures.
Last month, S&amp;P Global Ratings downgraded the credit scores of almost all of Australia’s financial institutions, warning of a “sharp correction” in property prices.
The Big Four lenders, including ANZ, were spared the downgrade because S&amp;P said it assumed the government would step in to provide support if needed.
Earlier this week, a research report by ANZ said housing price growth peaked earlier this year and <a href="/news/national-price-growth-to-halve-in-2018-with-brisbane-to-fall-anz">will slow to 1.9 per cent </a>by next year, though population increase and demand for housing will ensure growth stays positive in Sydney and Melbourne.
Elliott was also critical of the recent Budget announcement of a $6.2 billion levy on the country’s large lenders, though he said the priority now should be to work out the best way to implement the measure.
“It is regrettable, we don’t think it is good policy, we do think it will have unintended consequences. But we’ve seen very little value in bleating about it,” Elliott told Bloomberg.
Despite Elliott’s criticism, ANZ has generally taken a more conciliatory approach to the levy than some of the country’s other lenders. National Australia Bank Ltd. Chairman Ken Henry described it as “simply incoherent,” while Commonwealth Bank of Australia CEO Ian Narev said it was “policy concocted on the run”
Elliott said there was no doubt the outlook for earnings is getting “tougher.” The lender’s first half-profit missed estimates as its revenue growth flat-lined and its net interest margin fell to its lowest since the global financial crisis.
“What’s driven bank earnings over the last 20 years has been an increase in household leverage which has been afforded because of a lowering of interest rates. That’s just not going to drive the future,” Elliott said, adding that for consumers used to boom times, even slower growth can feel like a recession.
 
</body></html>

Property prices inflated but possibility of crash low: ANZ chief executive

<html><body>
For those predicting housing values to start dropping in the near future you should start rethinking that analysis.
Of course, the newly created investment market is facing severe headwinds and yes, it would be fair to assume that there will be a correction should a large number default on their respective acquisitions.
The mistake many continue to make is that housing affordability is actually about the established markets of households not the investment market.
If you were asked a simple question for those residing in NSW, do you want a second Sydney Airport or high-speed rail connecting Newcastle to Sydney, the Hunter Valley to Sydney and Wollongong/Southern Highlands to Sydney I am pretty sure what the answer would be.
With the second Sydney Airport estimated to cost between $6 and $8 billion it is comical that a second airport is prioritised over high-speed rail networks.
Everybody aside from politicians can see that high-speed rail networks would have an instant effect on housing affordability in NSW.
For those who disagree NSW is facing major problems over the upcoming decade that require immediate attention.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.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/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.jpg" alt="">
As a direct result of what is happening to Sydney rental markets and housing markets we are now starting to see the exodus of NSW residents to the more affordable Victorian markets.
This is happening to such an extent that Melbourne will surpass Sydney in terms of population to seize the title as Australia’s biggest and number one city.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.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/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.jpg" alt="">
It has been well documented that since that Sydney 2000 Olympics there has been next to no forward planning which explains exactly why Sydney is now overcrowded with our transport infrastructure at breaking point.
What makes this even worse is that there are no viable solutions – no drawing boards.
This then leads to the population considering alternate solutions to relocate simply because the financial pressures have become untenable.
NSW has had no succession planning where vision has simply been ignored, and now it is starting to pay the price for that ignorance.
In the established property markets we are now at levels never seen before.
Only last week, a garden apartment that was sold in Cremorne in September 2016 for $1,582,000 sold again less than eight months later for $1,970,000.
At a federal level, we are now witnessing the lowest annual growth rates in terms of government spending since the 1960’s.
Federal government overheads keep increasing so we are now witnessing cutbacks that will seriously damage growth as infrastructure continues to be ignored.
There is no collaboration between the states and territories with Canberra and this is fracturing growth given population growth continues to climb to record highs.
If elected politicians started displaying signs that Sydney was full 17 years ago then what do you think they should be displaying now?
With the federal government tightening the spending belts then the states and territories will start cancelling future projects simply because there is no available funding.
The latest Australian Bureau of Statistics figures reveal that approximately 2.3 million Australians earn the lowest legal rate of pay for what they perform.
Recently the Reserve Bank of Australia commented that “wage growth is low.
Although it seems unlikely that wage growth will slow much further, wage pressures are expected to pick up only gradually.”
There has been next to no political commentary about wage growth where one would think that elected politicians would make this a priority to find out exactly why Australia has such weak wage growth?
With record low wage growth how is it possible that we can have record high property rentals?
The Property Council of Australia recently released a five-point plan to assist the NSW government with housing affordability.
<ul>
<li>Turbocharging housing supply through increased land supply and planning reform.</li>
<li>Reforming state property taxes and reducing fees, charges, and red tape.</li>
<li>Better co-operation between all levels of government.</li>
<li>Bridging the deposit gap and supporting first home buyers better.</li>
<li>Supporting the rental market and fostering innovative, affordable rental product.</li>
<li>Whilst fine in principle – this simply won’t happen.</li>
</ul>
Sydney has a massive problem with no clear solutions in the short-term.
Common sense needs to prevail so put the second Sydney Airport on immediate hold and start building fast-train networks.
I am yet to see a better solution to tackle housing affordability. Have you?
MOSMAN – 2088
Number of houses on the market this time last year – 51
Number of houses on the market last week –56
Number of houses on the market this week –57
Number of apartments on the market this time last year – 41
Number of apartments on the market last week – 40
Number of apartments on the market this week –38
CREMORNE
Number of houses on the market this time last year – 10
Number of houses on the market last week – 6
Number of houses on the market this week – 9
Number of apartments on the market this time last year – 18
Number of apartments on the market last week – 16
Number of apartments on the market this week – 18
NEUTRAL BAY – 2089
Number of houses on the market this time last year – 8
Number of houses on the market last week – 2
Number of houses on the market this week – 3
Number of apartments on the market this time last year –23
Number of apartments on the market last week –21
Number of apartments on the market this week – 19
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog<a href="https://www.rwm.com.au/"> </a><a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

robertsimeon-hRNTwJyXkQ

Politicians are doing nothing to fix housing affordability: Robert Simeon

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
Data released showed that new home sales rose by 0.8 percent in April after falling by 1.1 percent in March. 
The number of detached house sales rose by 2.2 percent in April. Multi-unit dwelling sales fell by 1.2 percent in April. 
The home sales data has implications for banks, retailers, developers, building and building material companies. 
What does it all mean?
The latest lift in new home sales essentially doesn’t alter the trend. The housing sector has peaked in terms of activity and is likely to be more subdued over the coming year. It is important to keep in mind that overall new home sales remain healthy, but the macro-prudential measure and resulting tight lending standards adopted by the banks will have a more lasting impact on housing activity.
The focus for policymakers will be the mix of investor and owner occupier loans over the next six months and what happens to house prices. It is clear that housing activity is consolidating with potential home buyers being more circumspect on purchases, given higher home prices and the lift in borrowing costs. The softening in home building should lead to a much more sustainable housing market.
Importantly the pipeline of new home building remains solid and should support an array of sectors and broad- based activity. The latest data doesn’t have a great influence on the next interest rate decision. The Reserve Bank is comfortably on the interest rate side lines for the rest of 2017.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2012.40.56%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2012.40.56%20PM.png" alt="">
What do the figures show?
New home sales
In seasonally-adjusted terms, new home sales rose by 0.8 percent in April after falling by 1.1 percent in March. The number of detached house sales rose by 2.2 percent in April. Multi-unit dwelling sales fell by 1.2 percent in April.
 The Housing Industry Association reported: “Amongst the jurisdictions surveyed, New South Wales (+2.2 percent), Victoria (+14.3 percent) and South Australia (+7.0 percent) all posted improving sales figures for private detached houses in April, while both Queensland (-4.7 percent) and Western Australia (-12.7 percent) recorded falls.”
What is the importance of the economic data?
The Housing Industry Association releases data on the sales of new homes each month. The HIA collects the data each month from a sample of Australia's largest 100 home builders. The survey covers around 14 percent of the home building industry. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
</div>
</div>
</div>
</div></body></html>

jchancellor-FAypfDUnLy

Number of detached house sales lift: Savanth Sebastian

<html><body>
GUEST OBSERVER
In 1956, US geophysicist M. King Hubbert predicted that the rate of petroleum production for a given geographic area follows a hump-shaped curve, and that the world would reach “peak oil” production in 1970.
And, as the figure shows, Hubbert was pretty right about the peak part, not so much about the inevitable decline thereafter. But the reason “Hubbert Peak” is in the zeitgeist is because once something peaks there is a natural narrative about its secular decline thereafter.
<a href="https://www.propertyobserver.com.au/images/2017/06/01/file-20170601-25664-18glgj0.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/01/file-20170601-25664-18glgj0.png" alt="">
The Hubbert Peak. Red line = predicted Green line = actual. Wikipedia
Perhaps that’s why there has been so much focus this week on the possible peak of Sydney housing prices, and even Australian equities. The CoreLogic hedonic price index was down in May by 1.3% in Sydney and 1.7% in Melbourne.
This was met with some relatively measured responses like that of AMP economist Shane Oliver who tweeted: “May is weak seasonally so exaggerates but the boom is likely over…”  
That seems like an awful lot of faith to put in one datum point. But perhaps Oliver and others are right. And perhaps there is a very happy story where more supply is coming online while demand is being cooled by APRA’s crackdown on interest-only loans to investors.
Partially consistent with that happy scenario, the ABS reported that new housing approvals in April were up by 4.4% on a seasonally-adjusted basis, helping claw back some of the 10.3% decline (on revised figures) from the previous month.
On the demand side, however, figures released by the RBA on Wednesday showed investor credit up 0.6% on a seasonally-adjusted basis in April – a rate of growth unchanged from March. That put annual growth at 7.3%. If APRA’s measures have given investors pause then it doesn’t seem to have filtered through to the data yet.
Altair Asset Management chairman Philip Parker was worried not only about the housing market, but the ASX as well. In a remarkable decision, Altair announced that it “was to sell all the underlying shares in the Altair unit trusts and to then hand back the cash to those same managed fund investors”.
This sort of thing doesn’t happen every day – particularly by a fund manager with a 30-year track record. Or, as Parker put it: “Giving up management and performance fees and handing back cash from investments managed by us is a seminal decision, however preserving client’s [sic] assets is what all fund managers should put before their own interests.”
Parker expressed serious concerns about China, the US, and equity valuations in Australia. But his chief concern was property-driven household debt in Australia, saying: “When you speak to people candidly in the banks, they’ll tell you very specifically that they are extraordinarily worried about the over-leverage of the Australian population in general.” 
It’s not just Parker who is worried. Melbourne-based funds manager JCP Investment Partners recently warned that interest-only loans could be to Australia what sub-prime mortgages were to the US at the brink of the financial crisis. The RBA’s increasingly urgent observation that around one-third of mortgage holders don’t have a month’s payment buffer is certainly consistent with that.
The deeper worry is that the Australian banks have been lending – both on interest-only and amortising loans – far too much as a proportion of people’s incomes. I don’t know if Australian banks have been overlending, but here’s a little test. Suppose one puts the same post-tax income and expense variables into a big-4 bank calculator in Australia and a major national US bank. Which says you can borrow more, and by how much?
I did that exercise for a couple both earning A$80,000 pre-tax with two children, no other debts, a modest credit card limit, and reasonable expenses. I then did the same for the same income and expense profile in the US (but in US dollars with US tax rates). Banks taking equivalent risks should lend those hypothetical couples the same amount.
The US lender would allow maximum monthly repayments of $3,733. The Australian lender would allow $4,709. More than 26% more.
I don’t know if we have reached peak anything in Australia. But the real question is, if we have, what does the other side of the curve look like? The US petroleum data, or Hubbert’s scary curve?
Richard Holden is professor of Economics and PLuS Alliance Fellow, UNSW and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Have we finally reached "peak" house prices? Richard Holden

<html><body>
GUEST OBSERVER
The NSW Labor Party’s approach to affordable housing must work with the development industry rather than add a new tax.
Labor’s affordable housing announcement contains some positive proposals that will generate more affordable homes across Sydney, but this will depend on the details.
The strong approach to driving outcomes on government owned land, with a state wide audit, and tasking UrbanGrowth to deliver outcomes will certainly give results.
Clearly the private sector purchase of government owned land will need to be discounted to provide 25% of new homes as being affordable.
The proposal for 15% of new properties on private land to be affordable will only work if it is based on rezoning and floor space uplift.
The Labor Party's 'Next Steps' document attached to the media release identifies 'A 15% Affordable Housing Mandate on privately owned land' which sounds like an inclusionary zoning approach.
To simply force developers to provide 15% of their homes to a community housing developer will only increase the cost of the remaining 85% of homes. If this is the case the Urban Taskforce does not support a 15% inclusionary zoning tax.
The Urban Taskforce has proposed a better approach to the supply of more affordable housing as a modification of the state government’s Affordable Rental Housing State Environmental Planning Policy (SEPP).
This policy was brought in by the Labor Party in 2009, to provide up to 20% of a housing development as being affordable.
The modification needs to increase the uplift to 20% in floor space and height and to maintain the requirement of affordable rents for 10 years. We urge all political parties to consider this practical and achievable approach to delivering more affordable homes. 
The discussion on housing supply and affordability in Sydney must not become a battlefield between political parties. It seems that any proposal by one political party is immediately attacked by another political party. The Urban Taskforce calls on all political parties to contribute to a constructive discussion on Sydney's housing crisis.
The Urban Taskforce is keen to work with all political parties to develop sustainable approaches to the provision of affordable housing.
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>.
</body></html>

Housing Affordability

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Housing Affordability

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News