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>
GUEST OBSERVATION
More students are travelling overseas for their education than ever before. The numbers of international students have risen sharply over the last 15 years. In Australia, around 153,000 international students were enrolled in 2000, while in 2009 the number grew to 631,000.
However, since 2009, the Australian international education market has shrunk. International student numbers fell to almost 514,000 in 2012. Fewer international students has led to falling revenue, from A$16.4 billion in 2009 to A$14.5 billion in 2012.
In the current challenging circumstances, the Australian government is trying to reverse this decline by improving visa regulations for international students. On the other hand, the education budget to higher education has been cut.
But how much will the budget cut damage Australian education exports and how much will visa regulation improvements make up for it? Our recent study published in the Australian Journal of Education found efforts to improve visa processing were not as important as university rankings or affordability.
Where are they from and where do they go?
China is the top country of origin for international students in the world. In 2013, some 236,000 Chinese outbound students constituted nearly 29% of the global total of international students.
The number of international students from the second-ranked country of origin, India, was less than half that of China’s.
Chinese students mainly enrolled in the higher education sector (61.9% in 2013) in Australia. This sector also generated the biggest part of the education export profit, at 68.3% in 2013.
Other countries are also competing for Chinese students. At the higher education level, most Chinese students chose the United States: 27.6% went to the US while 11.5% chose Australia.
Destination country safety
Our recent study tried to determine which factors have been influencing international students’ decisions on where to study.
The results show that destination country safety is an important choice determinant. Chinese students are not necessarily limiting themselves only to countries with a high safety ranking, but they’re unlikely to choose a country with a very low safety ranking.
This suggests that it is important for a country seeking to attract Chinese students to maintain and/or enhance its perceived level of safety and to promote itself as much as possible as a safe place for Chinese students to study.
University ranking and educational quality
Another major factor in the decision-making process is the destination country’s university rankings and general standard of education. The study shows that Chinese students assign a relatively high value to university rankings compared to other factors.
In the context of the release of the 2014 Times Higher Education rankings, funding cuts to Australia’s higher education sector were associated with a negative effect on university ranking. This may discourage Chinese students from pursuing higher education in Australia.
Costs and scholarships
The study also indicated out-of-pocket expenditure was an important factor. This suggests the recent depreciation of the Australian dollar may help to attract foreign students into the international higher education sector. However, it is unlikely that exchange-rate-induced expenditure changes would be sufficiently large to result in major increases in Chinese student numbers.
The study suggests scholarships for university fees and living expenses would have a major positive effect on demand from Chinese students. The Chinese government provides scholarships for high-achieving domestic students to pursue Masters and PhD degrees abroad through the China Scholarship Council (CSC).
As an indication of the level of financial support, each CSC student enrolled at an Australian university receives a scholarship worth around A$20,000 a year to cover all expenses, including university fees and living expenses.
Retaining and fostering connections with the CSC, in order to increase the number of available scholarships, could provide an alternative to potentially dwindling Australian country-level or university-level scholarships.
Visas for international students
The study results indicated positive effects of a reduction in student visa processing time, an increase in the post-study visa duration and a decrease in immigration language requirements.
However, these effects were relatively small compared with destination safety, university rankings and study and living costs.
Hence, while the recently implemented streamlined visa process and the post-study work visa policies in Australia may have some positive effect on attracting more Chinese students, the study findings support the statement in the Knight review that Australia’s student visa program cannot solve all of the problems facing the international education sector.
Efforts to increase the attractiveness of Australia for higher education seem to revolve around the ease and speed of obtaining a student visa and a post-study work visa. While these are shown in the study to be important factors, the findings also point to the fact that visa policies would appear somewhat less relevant than other factors.
Efforts should be focused on more important factors such as safety, university rankings and scholarship conditions to attract more Chinese students.
Xue Gong is lecturer at the School of Economics and Management at Nanjing University of Science and Technology and can be contacted <a href="https://theconversation.com/profiles/xue-gong-187138" target="_blank">here</a>.
Twan Huybers is associate professor at UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/twan-huybers-187819" target="_blank">here</a>.
Both are authors for The Conversation.
</body></html>

jchancellor-FAypfDUnLy

What attracts Chinese students to Aussie universities?

<html><body>
Housing co-operatives should be seen as a priority for expansion to assist in addressing housing affordability, suggested The Business Council of Co-operatives and Mutuals (BCCM) to the inquiry into Home Ownership.
Housing co-operatives are key players in the range of responses needed to address Australia’s housing affordability crisis, affirmed BCCM. 
"A report by the Co-op has revealed that nearly eight in ten Australians aged between 19 and 29 are concerned about the level of mortgage debt they may face in their lifetime, and the prospect of ever being able to own a home.
"The current speculative model of housing ownership cannot deliver affordable housing for all. It is time to consider alternative ownership models and co-operative housing has proven to be a very significant opportunity for housing market reform. 
"Co-operative housing can either be provided as rental housing or based on a wide range of co- operative ownership models. In general, co-operative housing provides long term, secure and affordable housing for people on low to moderate incomes." 
Member participation directly reduces cooperative housing management costs, asserted BCCM in the submission to the House of Representatives Standing Committee on Economics. 
"Recent benchmarking demonstrates that co-operative housing is the most cost effective form of social housing program. Community Equity New South Wales (CENSW) has estimated that housing co- operatives produce savings over ten years per 1000 properties of $4.07 million in comparison with other social housing sectors.
"Seed funding needs to be provided to specialist housing co-operative centres that can function as a central resource agency for housing co-operative development. 
"The role of the resource agency would be to refine documentation for the various models, promote models to potential consumers and provide advice services to developing co-operatives. 
"Existing co-operative housing providers could be funded to expand their educative role. 
"Funding for this initiative could come from sources not limited to government but include stakeholders with an interest and commitment to the provision of affordable housing such as trade unions, customer owned banks, consumer-focused mutuals, consumer interest groups and member-owned super funds.  
"Rental co-operative programs could be further expanded by capital funds being made available to develop new stock or alternatively through the transfer of existing social housing stock. 
"A source for this funding could be through a combination of government seeding grants and commercial loans from financial institutions with an interest in developing new lending products in the housing loans market place. 
"Collaborative partnerships are also possible with co-operative and mutual capital investment partners ranging from financial mutuals (another form of Co-operative) or member-owned super funds to community development finance institutions. 
"Financial mutuals can also assist with affordable housing through the provision of affordable housing loans and a range of other consumer/member focused products. 
"The financial mutual sector is a significant player in the provision of affordable housing finance. It is driven by member needs and concern for the community and will continue to support affordable housing in all its forms. 
"Housing co-operatives are the quiet achievers in the housing sector. They have been highly successful in Australia and many other countries." 
</body></html>

Co-operative housing consideration for reform

<html><body>
Four investors competed for a $327,500 Russell Lea studio, Sydney's cheapest weekend auction sale.
<a href="https://www.realestate.com.au/property-studio-nsw-russell+lea-120377129" target="_blank">The 7/275 Lyons Road studio</a> had last sold at $172,000 in 2005, so not quite doubling over the decade.
Its price growth was 6.6% annually.
Currently rented at $300 a week, it reflected a gross 4.7% rental yield.
<a href="https://www.realestate.com.au/photogallery_new.ds?id=120377129&amp;theme=rea.buy" rel="photos" data-id="120377129"><img src="https://i4.au.reastatic.net/456x342/70e8611bc74acd71afcb0f228fdc51747d6aa457fcccbdc5a29e9ae11bf7cf73/image3.jpg" alt="7/275 Lyons Road, Russell Lea" title="7/275 Lyons Road, Russell Lea" data-index="2"></a>   
Selling agent Rocky Mammone at Richardson &amp; Wrench Five Dock said the property was announced on the market at around $315,000 with competition from four investors.
"This is an ideal opportunity for the first home buyer to secure a property in this popular, vibrant Russell Lea precinct with easy access to the city," was his marketing suggestion.
<img src="https://i3.au.reastatic.net/456x342-resize/c66f50138028775e4fa465a14cde8fca783a5b77cc8a2f701414841d9e66592c/floorplan1.gif" alt="7/275 Lyons Road, Russell Lea" title="7/275 Lyons Road, Russell Lea" data-index="5">
The auction came ahead of data showing loans to property investors across Australia rose in July, according to figures released by the Australian Prudential Regulation Authority (APRA) monthly banking statistics.
It showed that $539 billion worth of loans to property investors were on the books in July this year, up 22 per cent on the $439 billion in July last year and up on June's $507 billion tally.   
<div class="domain-article-content-body">
But the breaks in investor lending are finally showing up after APRA introduced a 10 per cent annual growth limit on bank loans to property investors in December 2014.
Westpac, which has the largest investor loan book at $156 billion, was up just 0.3 per cent on its June level, or 3.6 per cent annualised.
Westpac's book is around a complying 9.5 per cent above the level of a year ago.  
</div>
</body></html>

Four investors compete for Russell Lea studio, Sydney's cheapest weekend sale 

<html><body>
Ensuring housing supply, dwellings that meet social and demographic demands and providing greater mobility across different tenure types are the minimum changes the Department of Social Services believes to be necessary should current housing policy be reformed.
Not seeking to outline any specific reforms, the Department of Social Services pointed out areas for improvement to the inquiry into home ownership.
"The Department does note that any future reforms should include a focus on improving the effectiveness of housing supply and the collaboration of jurisdictions with respect to the broader policy settings influencing the operation of Australia’s housing market. 
"In relation to improving housing supply, there are a number of avenues that could be explored. For example, in the context of the Reform of the Federation White Paper process there may be scope to examine the effectiveness of the NAHA in incentivising the states and territories to ensure housing supply is better able to respond to increases in housing demand. 
"With respect to better aligning the broader policy settings influencing housing supply and demand, this will require increased, and ongoing, collaboration by all levels of government. 
"Mechanisms to facilitate such collaboration may be looked at as part of the Reform of the Federation White Paper process, although increased informal collaboration may be just as effective as more formal mechanisms. 
"The roles and responsibilities of the Commonwealth and states and territories, in respect of housing assistance and homelessness services, are currently being examined as part of the Government’s Reform of the Federation White Paper process. 
"Potential reforms to the current roles and responsibilities of the Commonwealth and the states and territories, around the provision of housing assistance and homelessness services, may improve the alignment of current incentives in relation to housing demand and supply.  
"However, this process is unlikely to materially impact the broader policy responsibilities of either level of government in terms of their impact on housing supply and demand. 
"There have been over 25 inquiries and significant reports related to housing policy and planning since the last National Housing Strategy was completed in 1991. 
"The most comprehensive of these reports were the Productivity Commission’s Review into First Home Ownership in 2004, the 2008 Senate Inquiry on Housing Affordability in Australia, the Australia’s Future Tax System Review in 2010 and the 2015 Senate Inquiry into Affordable Housing.
"However, housing affordability, and with it the level of home ownership, across Australia, has continued to fall over this period notwithstanding the recommendations and findings of these reviews. 
"The limited impact of previous reviews underscores the proposition that, without reforms to existing structural policy settings, the current issues with housing affordability will not recede, and indeed are more likely to intensify given the current low interest rate environment. 
"This will likely lead to an increase in the number of Australians being excluded from owning their own home, which is likely to put further pressure on the private rental market and in turn community and public housing and CRA [Commonwealth Rent Assistance]." 
</body></html>

Department of Social Services outlays minimum housing reform changes

<html><body>
GUEST OBSERVER
Housing affordability is more than just house prices. It also includes ready access to public transport, schools, good road networks, and of course access to all the basic utilities. However, local governments don’t have the money to build all the infrastructure new housing estates need.
So developer charges were introduced as a “user pays” method of funding new urban infrastructure. These charges are levied on property developers by local authorities at the time of planning approval. Some think these costs are passed back to the original land owner by way of lower land prices.
But property developers claim these charges are instead added on to new house prices, with a negative impact to housing affordability. When new house prices increase, existing house prices are also dragged up, extending the housing affordability issue throughout the community.
However, new research by QUT has uncovered evidence that these costs are not merely passed on to homebuyers, but are passed on at significantly over-inflated rates.
In an Australian first, the study empirically examines the impact of developer charges on housing affordability, providing evidence that developer charges are passed on to all homebuyers in the community. So while policy makers think they are charging developers for the provision of infrastructure in new communities, the cost is really being borne by all homebuyers.
<h2>The research</h2>
This research applied a hedonic house price model to 4,699 new and 25,053 existing house sales in Brisbane from 2005 to 2011. Using diverse data sets on both housing supply and demand items, it tested the impact developer charges had on both new and existing house prices over this time.
This study has provided the first Australian evidence that developer charges are passed onto home buyers. But these charges aren’t passed on in a dollar-for-dollar fashion. Consistent with international evidence, there is evidence that suggests these charges are inflated on both new and existing homes by around 400%.
What does that mean? It means that $10,000 of developer charge adds about $40,000 to the price of both new and existing houses.
In Queensland, where developer charges are around $28,000 per new house, this one fee alone could be responsible for over $110,000 of the house price. Over the term of a 30 year mortgage, this could be costing homebuyers in excess of $338,000 or almost $1,000 per month extra mortgage payments.
This is not to say developers are profiteering. The competitive nature of the development industry ensures developer margins are kept within a range reflective of the risky nature of property development. Developer fees are a supply side cost that often aren’t locked in until many years after the land is first bought for subdivision.
Demand factors, such as low interest rates and limited supply force up prices and land owners quickly adjust their expectations, asking more for the undeveloped land that will help with supply. Holding costs, time delays, limited supply of serviced land and imperfect data and models are all thought to contribute to this problem.
<h2>All buyers pay</h2>
This price inflation affects new home buyers and also buyers of existing homes, resulting in increased mortgage repayments of close to $1,000 per month in Australia.
Thus this inefficient developer “tax” isn’t being paid by developers at all. It is being paid by all home buyers across the community, even though the actual infrastructure built only services the new developments.
These findings suggest that developer charges are not only an inefficient tax, but are a significant contributor to increasing house prices and reduced housing affordability.
It is inefficient and inequitable to expect the community to pay four times the cost of infrastructure that services only new housing estates.
In the current environment of resource constraints and declining housing affordability, it’s now time other infrastructure funding models were considered by policy makers.
 
Lyndall Bryant is lecturer in Property Economics at Queensland University of Technology and author for The Conversation. You can contact her <a href="https://theconversation.com/profiles/lyndall-bryant-178983" target="_blank">here</a>.
</body></html>

Inefficient tax slugs all homebuyers

<html><body>
The production rate of new housing will have to be ramped up to meet en expected housing deficit of a possible 200,000 homes by 2024.
In the submission to the House of Representatives Standing Committee on Economics, AECOM technical director Joe Langley noted the housing crisis in Sydney is the result of a group of factors that constrain land supply and housing production, adding part of the problem in Australia has to do with our inherent geographical and demographic conditions which restrict housing supply in certain areas and open up differences in regional housing affordability in others.
"Present governance and funding arrangements contribute to Sydney’s housing constraints by limiting the value that can be created by and captured from public transport projects."
Joe Langley points out how two international transport projects are delivered and funded that, in his opinion, addresses the housing constraints. "Improved governance arrangements within transport delivery authorities and the introduction value capture funding methods that tap into the value created by well-integrated transport and land use planning." 
"The Denver Union Station Project Authority (DUSPA) is an excellent example of a governance structure for a major transport project that embraces the concept of wider public and private sector engagement in decision-making. This US$550 million transit-oriented development is the centrepiece of Denver’s FasTRAKS program, a $5 billion transformation of Denver’s transport network. 
"Private sector partners, the Union Station Neighbourhood Company (USNC), were selected through a public tendering process that brought private commercial and residential development expertise and equity to the DUSPA board and the overall project.
"As a result, major transport projects such as DUSPA and FasTRAKS have enjoyed a high degree of public and political support, thereby avoiding the cancellation and financial failure of major transport projects as witnessed in the recent past in Queensland, Victoria and NSW."
Joe Langley brought up some important points to address housing supply shortages. These are recommendations according to recent research commissioned to the Property Council of Australia.
"More widespread release of urban land for medium density development (up to 6 stories), greater production of small lot housing opportunities in green field locations, a broad scale review of employment trends and new employment needs in conjunction with housing needs, and a new focus on the mechanisms of lot assembly to assist private developers in putting together development packages in preparation for future housing supply. 
"Part of the problem in Australia has to do with our inherent geographical and demographic conditions which restrict housing supply in certain areas and open up differences in regional housing affordability in others. 
"For example, Sydney is constrained by mountains to the west, the ocean to the east and national parks to the north and south, thereby pushing fringe development in a relatively narrow band to the northwest and southwest. 
"While the Property Council’s report paints a clear picture of the reasons behind the housing supply problem, it also points out that over half of the metropolitan Sydney councils surveyed either underperformed or grossly underperformed in meeting housing production targets set by the NSW Department of Planning and Environment between 2004 and 2014.
"Clearly, increasing the supply of housing is a key part of the solution, but Sydney’s ability to generate a “sustained increase” in the rate of dwelling approvals over the next decade can’t be relied upon given past performance. NSW will need to do things differently, and for a long time, if Sydney is to fix its housing affordability problem."
Moody’s Australian Housing Affordability Measure shows that Australian households with two income earners need to spend, on average, 27% of household income to make mortgage loan repayments.
</body></html>

Possible housing deficit of 200,000 homes by 2024

<html><body>
<div>
National Australia Bank has 40 postcodes across the country where it reckons business and personal loans are at higher risk of default.
These locations over rely on single industries for growth, have higher unemployment, and or property prices that have run too hard. 
The chief risk officer of National Australia Bank, David Gall, won't pinpoint any the locations among Australia's 2500 postcodes.
But admits there are 40 where NAB is conducting its more stringent assessment of loan applications, including increasing the amount of equity that its borrowers require.
"We do have higher-risk postcodes and we make calls on what we think is the appropriate loan-to-value [LVR] ratio in those higher-risk postcodes," Mr Gall told the Australian Financial Review.
</div>
<div>"One of the things that we definitely factor in is where there is actually higher unemployment, or a risk of higher unemployment, given the reliance on single industries for a town or region. </div>
<div>"We will also look very closely at areas that have had very dramatic increases in property values to consider what is the right ongoing LVR ratio as well."</div>
<div>
<h2>As NAB would not disclose what postcodes are on its watch list, Martin North, principal at Digital Finance Analytics, analysed susceptible postcodes for the AFR.</h2>
<h2>The highest-risk postcodes, according to DFA, are </h2>
<h2>2902 (Kambah in Canberra); </h2>
<h2>7017 (Grasstree Hill, Honeywood, Old Beach, Otago and Tea Tree in South Tasmania); </h2>
<h2>5731 (Leigh Creek and Lyndhurst in South Australia),</h2>
<h2>5134 (Cherryville and Montacute in Adelaide),</h2>
<h2>4128 (Shailer Park and Tanah Merah in Brisbane),</h2>
<h2>2334 and 2343 (various suburbs in the Hunter Valley, north of Sydney).</h2>
<h2>Darwin (909) also appeared on the DFA list, as does Gladstone Park and Tullamarine in Melbourne's north (3043).</h2>
</div>
<div>
David Gall said NAB supported existing customers in the 40 areas because while they might be higher risk, "many remained good customers."
NAB last week said its charge for bad and doubtful debts for the third quarter fell by 15 per cent to $193 million, adding that credit quality at NAB is controlled by applying interest rate serviceability buffers of at least 2 per cent higher than the current rate.
David Gall said the level of bad debts were likely to tick up in the future, although when was uncertain. 
"Whether we are at the low point or not, we must be pretty close to it," David Gall said. 
"When you look at a historical sense, these are very low levels of impaired assets and bad and doubtful debts that we are seeing at the moment.
"So my expectation is we are not going to see a further tick down or improvement.
"We are hoping for the current benign conditions to continue for some time.
"But ultimately, bad and doubtful debts will be a factor of the Australian economy and how it performs overall." 
Pressed further Martin North said postcodes in NSW that banks would be wary about include Blackville, Caroona, Colly Blue, Pine Ridge, Quirindi, Spring Ridge and Wallabadah (2343) in the state's north-west and Greta in the Hunter (2334).
He also pointed to Riverstone (2765), Mount Annan (2567), Auburn (2144), Blaxland (2774), Chipping Norton (2170), Berala (2141) and Bass Hill (2197) as being the highest risk suburbs for defaults in Sydney. 
In Melbourne, the postcodes North says are most at risk of default are Aberfeldie, Essendon and Essendon West (3040); Gladstone Park, Gowanbrae and Tullamarine (3043); Pascoe Vale (3044); Belgrave and Tecoma (3160); Mount Evelyn (3796); Endeavour Hills (3802); and Berwick and Harkaway (3806). 
</div>
</body></html>

NAB won't pinpoint its list of Australia's 40 most vunerable property postcodes

<html><body>
By <a href="http://theconversation.com/profiles/judith-yates-148000">Judith Yates</a>, <a href="http://theconversation.com/institutions/university-of-sydney">University of Sydney</a>.

The current <a href="http://www.aph.gov.au/HomeOwnership">parliamentary inquiry into home ownership</a> is in the midst of public hearings, questioning, among other things, the decline in home ownership among younger Australians.

This, however, is not a recent issue. For a long time young people have found it difficult to purchase their first home. Home ownership rates for households aged 25-34 began to decline close to 40 years ago; declines for those aged 35-44 followed a decade later.

<iframe allowfullscreen="allowfullscreen" frameborder="0" height="360" mozallowfullscreen="mozallowfullscreen" src="//datawrapper.dwcdn.net/GKLPh/2/" webkitallowfullscreen="webkitallowfullscreen" width="100%"></iframe>

Declines have been most dramatic among low to moderate income households; only younger households in the top quintile of the household income distribution have been (relatively) protected.

<iframe allowfullscreen="allowfullscreen" frameborder="0" height="400" mozallowfullscreen="mozallowfullscreen" src="//charts.datawrapper.de/50dB3/index.html" webkitallowfullscreen="webkitallowfullscreen" width="100%"></iframe><iframe allowfullscreen="allowfullscreen" frameborder="0" height="400" mozallowfullscreen="mozallowfullscreen" src="//datawrapper.dwcdn.net/08QYt/1/" webkitallowfullscreen="webkitallowfullscreen" width="100%"></iframe>

<h2>A 40-year problem</h2>

These declines date back to social, demographic and economic changes that began up to 40 years ago. Social change in the 1970s saw the number of both single adult and dual income households increase. This resulted in increasing disparities in household incomes. The increasing numbers of high income households increased housing demand and triggered pressures on the housing market that began to squeeze out lower income households.

These pressures have been maintained by ongoing household income inequality, which has been <a href="https://theconversation.com/senate-report-shows-why-australia-needs-to-talk-about-inequality-36121">increasing in Australia since the mid-1980s</a>, compounded by growing earnings inequality and the impacts of uneven economic growth.

The squeeze on lower income households was intensified during the 1980s by high inflation and high nominal interest rates that limited borrowing capacity and created significant deposit gaps for those already facing income constraints.

From the 1990s, younger households were additionally constrained by the burden of education debt and deterred from home ownership by the implementation of compulsory superannuation which slowed down earnings growth.

As inflation and nominal interest rates fell throughout the 1990s, financial liberalisation contributed to an increase in the availability and reduction in the cost of housing finance. This, along with associated changes in lending criteria, disproportionately benefited high income households, most of whom were already established home owners.

The willingness of established households to invest in both owner-occupied housing and investor housing was fuelled by changes in our tax system that made housing an extremely attractive investment. Tax benefits for owner-occupiers increased in 1985 when owner-occupied housing was exempted from the newly introduced capital gains tax. For housing investors (whether negatively or positively geared), benefits arose from the asymmetric treatment of income and expense. These tax benefits increased in 1999 for debt financed investors prepared to speculate on rising real house prices.

Demand pressures from established households in the past two decades (readily seen in <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0">housing finance data</a>) have reinforced ongoing pressures on urban land markets from population growth.

Declines in agriculture and manufacturing and the rise of the services sector have led to an increasingly urbanised population with jobs being concentrated in the centres of our capital cities. Increased demand has contributed to an increase in, and a steepening of, land price gradients in these cities. This is partly a result of the innate shortage of centrally located land in areas where job concentration is greatest, partly in response to state government strategic policies encouraging infill development, and partly in response to the inadequate investment in, and cost of, transport infrastructure.

In other words, increasing land values in urban locations are an inevitable outcome of the combined impact of:

<ul>
<li>the pressure of income and population growth;</li>
	<li>structural change which results in increasing urbanisation and concentration of (knowledge-based) employment in its central locations</li>
	<li>a failure to invest in rapid-transit transport infrastructure that facilitates cost-effective access to employment and essential services.</li>
</ul>
Quick fix solutions to the housing affordability problems that have led to declining home ownership rates often look to land release and urban planning policies. These might ease supply shortages driven by a growing population, but they are less likely to work when price growth is coming from increasing demand for bigger and better located dwellings. This demand is driven both by economic growth and by increasing inequality.

Higher housing prices arising from demand and supply pressures have had a number of effects. They have increased the wealth of established home owners and provided a platform for further increases in demand for housing, reflected in upgrading of existing homes, and in demand for second homes and investment dwellings. In so doing, they have excluded a growing proportion of younger households, and particularly low to moderate income households, from home-ownership. Some of this group can’t afford to buy, others would rather rent in a higher cost location closer to job opportunities than live on the outskirts of our metropolitan regions where housing may be more affordable.

<h2>The underlying issues</h2>

Short term cyclical factors are not enough to explain declining rates of home ownership amongst younger households. Underlying structural factors and changing institutional arrangements have been critical.

These include:

<ul>
<li>our system of housing finance that makes it relatively easier for better-off households to accumulate housing assets through debt finance;</li>
	<li>our income taxation system that provides these households with an incentive to treat property as a means of accumulating wealth ahead of its more essential role as providing shelter; and</li>
	<li>our system of property rights that ensures those who do own land are able to act as rent-seekers by expropriating for their own the increase in land values not of their own making.</li>
</ul>
These institutional arrangements reinforce existing housing and wealth inequalities.

If the decline in home ownership among younger households is not reversed, then ultimately Australia’s aggregate home ownership rate will fall. Whether this matters is an entirely different question. But it does suggest it’s time policy makers recognise the underlying structural drivers of current housing outcomes and consider which households will benefit from new policies that support property ownership.<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/45716/count.gif" width="1">

<a href="http://theconversation.com/profiles/judith-yates-148000">Judith Yates</a> is Honorary Associate Professor at <a href="http://theconversation.com/institutions/university-of-sydney">University of Sydney</a>. This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="http://theconversation.com/explainer-whats-really-keeping-young-and-first-home-buyers-out-of-the-housing-market-45716">original article</a>.

Lead image credit: <a href="https://www.flickr.com/photos/mugley/534456296/">Flickr</a> CC BY SA
</body></html>

theconversation

Explainer: what's really keeping young and first home buyers out of the housing market

<html><body>
The soon-to-come restrictions on lending on house and land packages for owner occupiers and investors is going to trigger unfortunate pain in Sydney's greenfield housing estates.
It will, ironically, put further pressure on prices by limiting the supply of new homes. 
The Commonwealth Bank of Australia has advised mortgage brokers that finance approvals for individual buyers of land lots would be delayed until all preliminary work on the project had been completed. 
That sounds okay, but currently many smaller developers actually have to pre-sell many of their lots before a bank will lend the money needed to start the earthworks and install water, sewerage and electricity services.
The Housing Industry Association understandably worries that the CBA decision restricting pre-sales - with undoubtedly other banks to follow - will have an adverse impact on the new housing sector across the outer suburbs of all Australia’s capital cities. 
"There is no justification for cutting off the credit tap for new residential development," Harley Dale, the HIA's chief economist argues.
"It would be very concerning at this point in time if it became more difficult for people to get into a new home, which is the end issue here."
Under the old policy the bank would commit to a loan with an assessment based on the development plan, as early as 12 months before a lot was accessible. 
Under the new policy it will need a valuation after an external valuer is physically able to identify the lot.
Banks turning down the financing tap is a yet another consequence of the recent APRA crackdown intended to stop any property bubble.
No one wants a bubble, but aren't we told the answer lies in doing everything possible to increase the supply of Sydney housing?
While safeguarding Australia’s financial system is obviously of paramount importance, the recent lending policy outcomes derived from APRA's intervention now risk obstructing not only new home building but damaging the economy’s rebound capacity. 
New detached home sales rose last financial year to 73,000, which was a four-year high for Australia. 
But just two states, NSW and SA are actually currently showing continued new home construction strength, warns the Housing Industry Association.
Compared with just 12 months ago, the number of owner occupier loans for the construction or purchase of new dwellings increased in New South Wales (+12.9 per cent), South Australia (+9.0 per cent) and the ACT (+0.5 per cent). Those in decline were Western Australia (-21.4 per cent), Tasmania (-20.8 per cent), the Northern Territory (-20.8 per cent), Queensland (-7.8 per cent) and Victoria (-4.8 per cent).
The HIA blame much of the decline on the lending outcomes that followed the initial December 2014 APRA crackdown.
Ofcourse these lending restrictions are against the backdrop of the unresolved, longstanding issue of local governments having increasingly onerous requirements and costings for infrastructure provisions in greenfields sites.
Economist Saul Eslake rightly says, there are two sides to this story, and he and I have a lot of sympathy with the desire of exisiting residents to prevent developments which detract materially from their quality of life.
But whatever perspective one might take on that debate, there is no doubt that planning laws and upfront costs have contributed to the mis­-match between our housing demand and housing supply.
Eslake argues it is time for revisit current models for financing the provision of infrastructure and services in greenfields housing estates by reducing upfront charges, replacing them instead with changes he suggests to the land tax regime.
But that idea is way too forward thinking in this knee-jerk world of now. 
This article was first published in The Saturday Daily Telegraph
</body></html>

Pressure on prices and house and land supply in APRA greenfields fallout

<html><body>
Moves to cap lending to housing investors would have a moderating effect in the short term, but the popularity of Sydney and Melbourne meant prices had further to run, the Commonwealth Bank CEO Ian Narev tips.
Ian Narev also pointed to limited supply as a factor in escalating property prices, after the nation's biggest lender for housing advised home loans balances rose 6.6% for the year from $400 billion to $423 billion. Brokernews.com.au reported broker-originated loans accounted for 45% of new business during the year, with brokers now making up 43% of the major bank’s entire home loan portfolio. The home loan lending growth of 6.6% in the year to June 2015 was behind overall lending system growth of 7.4%. 
The recent actions from the Australian Prudential Regulation Authority to cap the lending growth to housing investors would, Narev said, in the short term have a moderating effect on immediate investor demand, but the popularity of Sydney and Melbourne as places to live combined with limited supply suggested prices have further to run over the longer term.
"On the one hand, if you look year on year, the run-up in property prices in [parts of Sydney and Melbourne] feels like it's going to have to come off. But on the other hand, when you again look back on these fundamental forces of supply of demand, some of them might be around for quite some period of time yet," Mr Narev said in an Fairfax Media interview.
Ian Narev revealed CBA had lifted rates on investors loans by 27 basis point last month to avoid the rush of borrowers fleeing competitors, which would have pushed CBA above APRA's 10% growth limit.
"When others are taking action there is a flow effect of extra activity, you have got to be very careful that even without changing your own settings, you don't suddenly get to the point that by the virtue of others doing less, you get to the 10% barrier," he said.
"The pricing was a direct response to that risk and that is why we made that decision."
Commonwealth Bank of Australia (CBA) has reported a five per cent rise in profit to $9.14 billion for 2014-15 but its revenue increased only 1% in the second half while expenses rose 3%.
</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