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>
When it comes to house prices, 99.9% of Australian’s believe that because demand outstrips supply is the prime reason as to why house prices in Australia are as high as they are. Unfortunately, the greatest flaw in this theory is that the assumption is that when it comes to the housing market that banks and debt do not exist. 
In other words, just because there are a large sum of buyers seeking to buy a house relative to the available (sufficient) supply that the price can climb infinitively.
Lets look at two hypothetical property markets as an example.
<table style="width: 269px;"><tbody>
<tr>
<td width="139"> </td>
<td width="65">City A</td>
<td width="65">City B</td>
</tr>
<tr>
<td>Median Household income</td>
<td>$70,000</td>
<td> $70,000</td>
</tr>
<tr>
<td>Median House Price</td>
<td>$210,000</td>
<td> $700,000</td>
</tr>
</tbody></table>
 
Now here is where Australian society has made a dangerously flawed assumption. The Australian herd assumes that just because a city such as the hypothetical City B has a significantly higher house price that there is less housing stock available in the marketplace relative to demand than City A. And based on this assumption that supply is incredibly limited that homebuyers are able to magically come up with the necessary funds (based on the absolute assumption that desperation to secure a roof over their head is higher in City B v City A) available to purchase a median house at 10x the median income without debt.
What the overwhelming majority of the Australian public… (including the economists at the big banks and RBA) dont understand ‘or will not acknowledge’ is that it is almost near impossible for housing in both City A and City B to be as expensive as it is even if there was screaming demand relative to the available supply without banks and debt.
But when banks in one city are prepared to lend more than banks in another city relative to incomes, you will generally find house prices are higher in the city where the banks lend more.
<table style="width: 301px;"><tbody>
<tr>
<td width="157"> </td>
<td width="69">City A</td>
<td width="75">City B</td>
</tr>
<tr>
<td>Median Household income</td>
<td>$70,000</td>
<td> $70,000</td>
</tr>
<tr>
<td>Median House Price</td>
<td>$210,000</td>
<td> $700,000</td>
</tr>
<tr>
<td>Deposit</td>
<td>30%</td>
<td> 20%</td>
</tr>
<tr>
<td>Total Deposit</td>
<td>$63,000</td>
<td> $140,000</td>
</tr>
</tbody></table>
 
Now as per the above, if the banks in City A are only willing to lend households 210% of their income to purchase a home, that would mean there is a good chance (give or take a few % points) that the median household would only be able to acquire a maximum of $147,000 of debt (on top of their deposit) to purchase a house.
Theoretically, even if there was an actual dire shortage of houses available in the marketplace, you would find that more often that not the only way to drive house prices higher would be if the median homebuyer was able to come up with a larger deposit.
Lets assume that the median homebuyer in City A were to come up with an $70,000 deposit versus a $63,000 deposit. It would mean that the homebuyer would be able to pay $7,000 above the median house price. But in City B there is a distinctive difference (spread) between the median income generated by the median household and the median house price when compared to City A. 
All things being equal between the two cities where there are just as many homebuyers in each city desperate enough to get into the housing market. If the banks in City A are only willing to lend a median income homebuyer $147,000, but in City B banks are willing to lend a median to homebuyers $560,000, which city do you expect to have higher house prices if both property markets share the exact same level of demand?
So the next time you hear a chief economist from one of the major Australian financial institutions mention the importance of supply and demand– remember, they (and the banks they work for and lend significant sums of debt to homebuyers year after year) assume that the banking system has no involvement whatsoever in the housing market and has not made an impact on the price of a house through flooding the housing market with debt.
Artificial leveraged demand created by the Australian banking system in what is a nation where housing is completely unaffordable is what drives prices in Australia sky high. Funny how no major financial institution, research agency or government entity such as Treasury or the RBA will never address the demand side of the Australian housing market. Just the good old, ‘we have a housing shortage’ and the population is desperate… creating artificial desperation. <a href="https://blog.australiaboomtobust.com/wp-content/uploads/2015/05/Australian-Consolidated-Private-Gross-Debt1.jpg"> </a>
Lindsay David is the author of <a href="https://www.amazon.com.au/Australia-Australian-Credit-Property-Bubble-ebook/dp/B00JJ7UW0S/ref=sr_1_1?ie=UTF8&amp;qid=1410612321&amp;sr=8-1&amp;keywords=australia+boom+to+bust" target="_blank">Australia: Boom to Bust</a> and  <a href="https://www.amazon.com/Print-Central-Bankers-Lindsay-David-ebook/dp/B00TMHEDBY/ref=sr_1_1?ie=UTF8&amp;qid=1423979661&amp;sr=8-1&amp;keywords=print+the+central+bankers+bubble" target="_blank">Print: The Central Bankers Bubble</a>. David recently founded <a href="https://www.lfeconomics.com/" target="_blank">LF Economics</a> and holds an MBA from IMD Business School.
<div class="simplesocialbuttons"> </div>
</body></html>

LindsayDavid-WEhfyLvNJJ

Artificial desperation: Lindsay David

<html><body>
The difference between median house and median apartments is greatest in Adelaide, according to new figures from CoreLogic RP Data.
CoreLogic RP Data found the narrowest gap was Brisbane. 
The Brisbane gap was $70,000 with houses 14.5% dearer than units.
The Melbourne gap was $82,000 with houses 15% dearer than units.
The Perth gap was $88,000 with houses 16% dearer than units.
The Canberra gap was $103,000 with houses 18% dearer than units.
The Sydney gap was $172,000 with houses 20% dearer.
The Darwin gap was $110,000 with houses 20% dearer than units.
The Hobart gap was $74,000 with houses 21% dearer than its units. 
The Adelaide gap was $105,000 with houses 25% dearer.
 
<img src="/images/2015/05/18/Screen%20Shot%202015-05-18%20at%202.17.49%20PM.png" alt="" width="765" height="352">
</body></html>

po-LsXgBTHBmX

Capital cities - the gap between house and apartment price medians: CoreLogic RP Data

<html><body><div class="page" title="Page 228">
<div class="layoutArea">
<div class="column">
The Senate committee on housing affordability reports recommends that the Federal government investigate new policy settings to address barriers to downsizing by retirees, including schemes along the lines of the Housing Help for Seniors pilot. 
The report noted many older people would prefer to move out of the family home and into more appropriate accommodation, but financial and other barriers prevented them from doing so.
While submissions generally talked about 'downsizing', the committee noted policy discourse might benefit from reframing the issue to be about 'rightsizing'.
The committee argued against inclusion of the family home in the aged pension assets test given the attachment many people have to their home and the benefits of allowing people to age in place. 
But they noted "it may be that the exemption of the family home from the aged pension means test encourages some over investment in housing and, in some cases, discourages people from moving to accommodation better suited to their needs.
"However, improved housing affordability achieved through policy which pressures older Australians to sell their homes to access capital, potentially disrupting their ties to family, friends and community, would be a hollow achievement."
The committee believed a better approach would be to explore innovative and affordable policies that allow retirees to downsize (or 'rightsize') when they wish or require to do so, without the sale proceeds necessarily jeopardising their pension eligibility.
"Programs such as the Housing Help for Seniors program, announced by the former government in the 2013–14 Budget but abandoned by the current government in the 2014–15 Budget before it was legislated, would be worth exploring in this regard," the report noted.
In the 2013–14 Budget the then Labor government announced its intention to implement the Housing Help for Seniors pilot program, with a commencement date of 1 July 2014.
The report noted had the pilot been implemented, it would have allowed a homeowner who had lived in their home for at least 25 years to sell their home and have at least 80% of the proceeds from the sale of the home (that is, the sale price less any valid encumbrance such as a mortgage, and less the purchase price of the new home), up to a cap of $200,000, quarantined in a special account so that it was not considered as part of the aged pension asset test.
The money in the account plus any interest earned would have been exempt from the asset test for up to ten years, providing there were no withdrawals during the life of the account. 
The exemption was to be available to people assessed as home owners who moved into a retirement village or a granny flat, but would not have been available to people moving into residential aged care.
The program, according to the budget papers, would have cost $112.4 million over the forward estimates period.
</div>
</div>
</div></body></html>

jchancellor-FAypfDUnLy

Seniors should be encouraged to downsize: Senate affordability committee report 

<html><body><div class="page" title="Page 409">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 375">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 375">
<div class="layoutArea">
<div class="column">
Despite design and administrative shortcomings that overshadowed the National Rental Affordability Scheme (NRAS), they in no way warranted the scheme's discontinuation, according to the Senate Inquiry into Affordable Housing.
<div class="page" title="Page 375">
<div class="layoutArea">
<div class="column">
NRAS is a partnership between the Australian Government and the states and territories to invest in affordable rental housing with property investors.
 It is a $6 billion initiative intended to stimulate the supply of affordable rental homes across Australia aimed to increase the supply of new affordable rental housing; reduce rental costs for low and moderate income households; and encourage large-scale investment and innovative delivery of affordable housing.
But while evidence to the Senate Standing Committees on Economics indicated clearly that a range of individuals and organisations strongly supported NRAS, the inquiry found some difficulties with its implementation: 
<div class="page" title="Page 393">
<div class="layoutArea">
<div class="column">
<ul>
<li>
teething troubles, including administrative practices associated with too much paperwork, delays in processing applications and slow response to emerging signs of problems; 
</li>
<li>
understaffing, inexperience and high turnover within the department administering the scheme; 
</li>
<li>
design inadequacies including a one size-fits-all approach which failed to take account of, or appreciate, the housing circumstances of particular areas with an identified need for affordable housing such as high value suburbs and regional, rural and remote areas; 
</li>
<li>
lack of clarity around the targeting of incentives and eligibility, which allowed significant allocation of incentives to overseas students; 
</li>
<li>
disclosure measures, which allowed the trading of incentives with excessive fees to persist and ultimately to damage the perceived integrity of the scheme; and 
</li>
<li>
external factors, notably the global financial crisis which created challenges in attracting private investment. 
</li>
</ul>
"These design and administrative shortcomings have overshadowed NRAS' success but, while they point to the need for refinement, they in no way warrant its discontinuation," the committee concluded. 
From its commencement in 2008, the annual incentives available to NRAS providers were to last for ten years, indexed annually for the rental component of the Consumer Price Index (CPI) and comprise two parts.
The incentive values for 2014–2015 were:
</div>
</div>
</div>
</div>
</div>
</div>
<div class="page" title="Page 376">
<div class="layoutArea">
<div class="column">
<ul>
<li>
a Commonwealth Government incentive of $7,996 per dwelling per year as a refundable tax offset or payment; and 
</li>
<li>
a state or territory contribution of $2,665.6 The total amount came to $10,661. 
</li>
</ul>
When announced, the original proposal was for an initial round of 50,000 incentives, though the scheme was introduced in the middle of the Global Financial Crisis (GFC) at a time when the banks were very hesitant and valuers were very negative. 
The Community Housing Federation of Australia suggested that one of the benefits of NRAS had been the partnerships it had facilitated across the not-for-profit, for-profit, development, and financial sectors, building sustainable communities with some private sales, some NRAS and some social housing.
The committee noted NRAS brought direct private investment into the affordable housing arena and significantly increased the community housing providers' engagement with financial institutions.
The committee heard it created a mechanism which has enabled a combination of private equity, the private sector, community-housing providers and the government to work in collaboration. 
Despite the strong support for NRAS, a number of witnesses drew attention to weaknesses that have undermined its performance.
JELD-WEN indicated that some NRAS incentives had been allocated to tenderers that did not have sites for the commencement of rental housing, saying it was implausible that NRAS incentives could be approved without tenderers submitting proposed developments on actual sites.
JELD-WEN also criticised NRAS for poor accountability. It referred to 'a glaring need for a report card on the cost-effectiveness.
The Property Council of Australia made a number of observations about NRAS including that some participants had been concerned about repetitious and costly tendering processes in rounds 1–3. 
Grace Mutual Limited referred to delays in processing applications and unclear, complex and poorly drafted regulations and law that 'hurt the program'.
Some argued greater consideration should be given to the geographic location of the NRAS incentives granted to ensure those regions with the poorest housing affordability and suitability for disadvantaged groups receive more incentives. 
The Tenants Union of Victoria noted that NRAS had played an important role in bringing private finance to increase the amount of affordable housing in Australia. 
But it also referred to recent negative media coverage reporting allegations that NRAS had been 'rorted to provide accommodation for wealthy international students, and that foreign investors, brokers and small time investors' were exploiting NRAS tax breaks.
The Tenants Union of Victoria held the view that NRAS was one of the important supply side interventions that made a positive difference. 
The committee did believe the review of NRAS was warranted. 
It noted lessons needed to be learnt from NRAS such as the need for clear and tight eligibility criteria and better targeting to areas of need.
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
But the cancellation of round 5, however, "was a very different matter."
"This cessation has set back the scheme just as it was gaining the trust and support of the private sector and beginning to make a material contribution to the supply of affordable housing. 
"Not only has it undermined investor confidence in this scheme, it has also fed into the general uncertainty that has engulfed the national policy on affordable housing. 
"The committee is firmly of the view that the government should start immediately to rekindle the confidence that institutional investors were starting to show in investing in affordable housing and to provide greater certainty in order to attract such investors."
The Senate committee recommends that:
<ul>
<li>
in the absence of any credible alternative scheme designed to increase the supply of new affordable housing and considering steps have already been taken to improve the administration and implementation of NRAS, that the Australian Government continue with NRAS round 5; 
</li>
<li>
the Federation White Paper process look at the Queensland NRAS model, which appeared to have much tighter controls over eligibility, as a means of determining where further improvements or fine-tuning could make the system more robust and effective; 
</li>
<li>
the Federation White Paper process look at how NRAS or a replacement scheme could be reframed to take account of the particular housing circumstances of regional Australia and ensure that NRAS housing was better targeted to areas in most need; and 
</li>
<li>
as part of the Federation White Paper process, a thorough cost benefit analysis of NRAS be undertaken, and that any such analysis include comparison of forgone revenue from demand subsidies such as the first home owners grant, and negative gearing and capital gains tax.
</li>
</ul>
</div>
</div>
</div></body></html>

NRAS should be restored with improvements: Senate Affordable Housing Inquiry 

<html><body>
Just eight Sydney properties sold at weekend auction under $500,000.
The cheapest was a<a href="/expert-insights/buying/cabramatta-had-sydneys-cheapest-auction-offering-what-you-get-for-400-000"> two bedroom Cabramatta flat</a> at $400,000.
Leaving Sydney is the stark reality facing many of its residents who can't afford to buy house or apartment.
Regional NSW is far cheaper for what has been recently dubbed as "economic housing refugees".
Onthehouse Residex put the Sydney house median a $917,000, while country NSW is $394,500.
Units are cheaper, but the gap not as wide with the median Sydney unit value at $613,500 and $330,500 in NSW country.
Realestate.com.au has around 5200 listings of houses priced between $200,000 and $300,000, from Aberdare, near Cessnock, to Yass.
CoreLogic RP Data recently noted just how rampant Sydney's increase in home values has been among all Australian capital cities with values, most recently increasing by 13% annually.
Although Sydney home values are increasing at a faster pace than all other capital cities, the 13% annual rise is below the peak annual growth rate of 16.7% in April 2014.
Over the five years to January 2015, Sydney home values have increased by a total of 35.6%, which is the strongest rate of growth of any city over that period.
The recent growth comes on the back of total value growth of just 14.4% over the previous five years, which was the lowest amongst all capital cities.
Between January 2000 and January 2005, Sydney home value growth was greater than it has been over the past five years with values rising 62.3%.
Sydney house values have recorded a higher level of growth than units, increasing by 13.8% over the year as opposed to 9.9% for units.
So where outside of Sydney is the price growth tamer for houses over the past year?
CoreLogic RP Data says it is the Richmond Tweed district followed by the Murray district.
But closer to Sydney it is the Illawarra rather than the Hunter.
<img src="/images/2015/05/05/core-may-5-one.jpg" alt="">
Source: CoreLogic RP Data
</body></html>

Sydney or the bush: Where should housing economic refugees head? 

<html><body>
Measuring the cost of housing and housing affordability is such an abstract idea because it is not a one size fits all measure and there are so many factors which contribute to affordability or unaffordability.
Most of the common measures have one or a number of glowing weaknesses which I will cover.
<ul>
<li>Interest rates</li>
</ul>
What interest rate do you use when a typical mortgage is 25 to 30 years? Most measures utilise the current mortgage rate and while that may tell you what affordability is like now affordability is important to analyse throughout the life of the mortgage not just as you purchase. With generational low mortgage rates right now, affordability in many areas looks good but if rates were to normalise affordability would look very different.
<ul>
<li>Household income</li>
</ul>
What figure do you use for household income? Much like interest rates household incomes will fluctuate over the 25 to 30 year cycle of a mortgage. Given this, are household income measures appropriate or is it better to assume a single or dual income household? Furthermore, outside of the Census, which is conducted every five years, this data is only published semi-regularly and at a state level. Housing markets and income levels are very different across different regions of the country.
<ul>
<li>International comparisons</li>
</ul>
Is a home in Australia the same as a home anywhere else in the world? In the sense that it provides shelter it is, however, tax regimes, the cost and scarcity of developable land, the provision of infrastructure and the availability of jobs are all other factors that contribute to the cost of housing. Furthermore, most comparisons are not apples with apples. Australian housing markets are dominated by detached houses whereas markets like Tokyo, Singapore, Hong Kong and Manhattan are largely apartment markets while London for example is predominately attached housing types (what we would call terraces or townhouses). The fact that Australian homes are, at least for the large part, detached and the largest in the world will also contribute to a higher cost.
Ryan Fox and Richard Finlay from the RBA wrote an excellent paper back in 2012 which provides an overview of some of the challenges around blending household income data with housing prices which is available <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2012/dec/2" target="_blank">here</a>.
CoreLogic RP Data don’t regularly publish a measurement of housing affordability, however, a different perspective on housing affordability is to look at the cost of renting relative to the price of a home. Using our data on advertised median rental rates and median selling prices of homes we can determine how many years difference there is between the cost of renting and the cost of a home. This analysis focusses on the relative affordability between the two primary means of shelter; renting or owning a home. This analysis doesn’t factor in interest rates or household incomes and doesn’t compare internationally. What it does do is look at the difference between the two forms of housing residents have, to rent or to purchase.
With rental growth at its lowest level in more than a decade, we would expect that the number of years of rent required to purchase a home will rise over the coming year. As a result we may see more residents choosing not to purchase their own home despite the low mortgage rates available.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-1.jpg" alt="chart 1" width="500" height="181">
Across the combined capital cities, the annual rent for a house is $25,552, for a unit it is $24,013 and for combined houses and units (dwellings) it is $25,311. In comparison, the median house price is $559,000, the median unit price is $470,000 and the median dwelling price is $530,000.
Based on this data, to buy a house would take 21.9 years of rental payments, to buy a unit requires 19.6 years of rent and a dwelling would take 20.9 years of rental payments. As the chart shows, the differential has been greater at the end of 2007 and there has been little change over recent years. In saying this, in March 1997, the differential was much lower at 10.8 years for houses and 11.7 years for units.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-2.jpg" alt="chart 2" width="500" height="182">
In Sydney, the cost of a house is equivalent to 24.6 years of rents and the cost of a unit is 21.7 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-3.jpg" alt="chart 3" width="500" height="182">
Across Melbourne the median house price is equivalent to 23.8 years of rent while the cost of a unit equates to 21.3 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-4.jpg" alt="chart 4" width="500" height="181">
A typical Brisbane house costs 20.9 years’ worth of rent while the typical Brisbane unit costs 17.7 years of rent. Note that the 17.7 years is the lowest since July 2004.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-5.jpg" alt="chart 5" width="500" height="183">
The median house price in Adelaide is equivalent to 22.0 years of rent and the unit price amounts to 20.6 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-6.jpg" alt="chart 6" width="500" height="182">
The median Perth house costs 21.0 years’ worth of rent while the median unit costs 19.1 years’ worth of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-7.jpg" alt="chart 7" width="500" height="183">
A typical house in Hobart costs the equivalent of 18.9 years of rent while a unit costs 17.0 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-8.jpg" alt="chart 8" width="500" height="183">
A house in Darwin costs 18.4 years’ worth of rent while a unit costs 18.9 years’ worth of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-9.jpg" alt="chart 9" width="500" height="182">
The median house price in Canberra is equivalent to 22.6 years of rent while the median unit price is 19.7 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-10.jpg" alt="chart 10" width="500" height="232">
It is also interesting to look at the relativity between cities. The way to read this chart is if you use Sydney as an example, rents are on the left and purchase prices are at the top. Given this, if you rent in Sydney and want to purchase in Sydney it costs 22.4 years of rent, whereas if you live in Sydney but want to purchase in Melbourne it is equivalent to just 16.8 years of your Sydney rent.
The table shows that those renting in the more expensive cities would have a much easier time entering into home ownership outside of these cities. On the other hand, if you are thinking about buying in Sydney but are currently renting in another city you could be in for a nasty shock when you go to purchase.
By no means do I think this analysis is a perfect picture of housing affordability however, I do think it is a different way to measure it. It still has the weakness of using medians and of course, very few people purchase the median home and in particular first time buyers should be looking to purchase below the median price. Nevertheless it does show the difference in the cost of renting and housing and potentially provides some food for thought for those looking to enter into home ownership.
</body></html>

ckusher-ujnxiKuFQs

Measuring the relativity of housing costs: Cameron Kusher

<html><body>
GUEST OBSERVATION
Trauma from domestic abuse causes suffering and pain in multiple ways. We often think first of the physical impact of domestic violence, but new research shows domestic violence can force women into lower-quality housing – or make it harder to find a home altogether.
Domestic violence is the primary <a href="https://wesnet.org.au/wp-content/uploads/2011/05/homesafehome.pdf">reason</a> for women’s homelessness. Safe, appropriate housing and the economic resources to maintain it are two of the most pressing concerns for women wanting to escape domestic violence.
Following separation from a violent partner, women and their children are likely to experience significant income loss, financial hardship and housing instability, <a href="https://www.propertyobserver.com.au/https://www.ncbi.nlm.nih.gov/pubmed/19218545">particularly women</a> who are at least partially financially dependent on their partners.
In other words, housing affordability is one of the primary issues women are forced to confront when deciding whether or not to leave a violent relationship. The prospect of high rents and scarce housing supply may even be causing women and children to remain in dangerous situations.
The cost of leaving
Dr Carole Zufferey, Professor Suzanne Franzway, Professor Donna Chung, Dr Nicole Moulding and I have been researching the intersection of domestic violence and the housing affordability crisis. We have just completed a study that examined the compounding effects of domestic violence on women’s housing, employment and mental health in Australia, funded through the Australian Research Council Discovery Grant Scheme.
For this project, 658 women completed a national online survey during 2013-2014 and 79% of the sample had children. Participants were recruited through advertisements and contact with national and local domestic violence and housing services across Australia.
We found that while experiencing domestic violence, 50.8% of the participants owned their home. Immediately after leaving the violent relationship, only 13.4% owned their home. At the time of completing the survey, 37.1% owned their home.
Immediately after leaving, 26.7% were in a rental property and 46.9% of women lived in temporary dwellings, which included caravans, shelters, staying with friends/family (33%), cars or parks.
For the majority of women (67%), housing costs increased after separation, which obviously affects the choice of home they could afford. In other words, leaving a violent relationship came at a big financial cost for the women.
At the same time, the majority of women reported being on a much lower income, with many having to leave their jobs after their relationship ended. Many experienced financial insecurity and poverty, which compounded housing affordability and safety.
The cost of violence
The housing problems women face once they leave a violent relationship are complex and multiple. Financial losses as a consequence of leaving a violent relationship impact women’s housing status, choices and practices.
For example, we found women often had to pay for a violent partner’s property damage and debts, which affected their ability to access and afford adequate rental housing. Alternatively, legal costs and non-payment of child support after separation reduced income for housing.
Women who were or had been home owners experienced unequal and lengthy property settlements, with many women settling for less because they feared their partner.
One woman said: "property damage from him… the place was in my name… it’s held against me in finding rental."
Another woman said: "He hadn’t paid bills for several years and would lie, saying he had paid them while hiding the bills… I was left with overdue rates, other debts and the house is in unmanageable state of disarray."
We also found that the most frequently used description in the data on housing was the loss of a “safe home”. Among participants surveyed, 42% of women (and their children) had to make frequent moves to escape violence. This disconnected them from communities, schools and a sense of “home”.
Fear also impacts on women’s decision-making about their housing choices and options.
One woman said: "I will never have a home of my own or a place that I feel is my home – safe, secure and private."
Another woman said: "I have felt invaded, under siege, at every house I have been in… I needed to pay for increased security measures, sensor lights, high fencing, lockable gates. I slept with my bedroom light on and my mobile under my pillow."
Our study also found that feelings of shame that accompany domestic violence also hindered women’s decisions and abilities to seek out housing services and assistance.
Women reported feeling shame when they asked friends and family for help, when they applied for private rental or public housing and when they used health and welfare services for domestic violence.
One woman said: "We had to go into housing commission rental that was very demoralising for me. My children suffered… I had lost everything I had worked for, most of my furniture [and was] made to feel second rate and that made my self-esteem even worse."
Staying in the family home
In Australia, the funding of public housing has been curtailed and average house prices are increasing relative to income. The proportion of first homeowners has fallen and there is increasing competition for housing in the private rental market where landlords exercise considerable <a href="https://www.sapo.org.au/pub/pub10023">discretion</a> in choice of tenant.
The majority of women experiencing domestic violence are forced to leave their homes for their own and children’s safety, and they are systematically disadvantaged as they enter the rental housing market.
They are forced to tackle this terrain while experiencing fear, parenting traumatised children and often enduring financial hardship.
To prevent homelessness and housing instability for women and their children, we need to continually look for ways that enable women to seek protection from domestic violence and remain in the family home, <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1415/ViolenceAust">while the perpetrator is removed</a>. This supports women and their children to maintain connections to their homes and communities, social support networks, employment and educational opportunities and it provides stability for children.
Housing, legal and domestic violence systems and services must continually work together toward this goal.
Sarah Wendt is program director, Masters of Social Work; co-director, Research Centre for Gender Studies; senior lecturer, School of Psychology, Social Work and Social Policy at University of South Australia.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
</body></html>

How housing affordability hurts women and kids fleeing violence: Sarah Wendt

<html><body>
Climbing home prices in Melbourne and Sydney have resulted in declines in Moody's home affordability measure despite low interest rates. Moody's also noted Melbourne and Sydney's "problematic" large loan sizes.
Households across Australia needed to use 27% of their income, on average, to make home mortgage repayments. The same ratio was recorded in March last year.
Click charts to open in new window:
<a href="/images/2015/04/27/moodys-april-27-one.jpg" target="_blank"><img src="/images/2015/04/27/moodys-april-27-one.jpg" alt=""></a>
In Sydney, however, households are using 35.1% of their income to make their mortgage repayments. In March 2014, Sydney households were putting 32.8% of their income towards their mortgage. March 2015's result is also higher than the city's 10 year average of 33.6%.
<a href="/images/2015/04/27/moodys-april-27-two.jpg" target="_blank"><img src="/images/2015/04/27/moodys-april-27-two.jpg" alt=""></a>
In Melbourne, mortgage affordability has also declined, with the share of income needed to make mortgage repayments increasing to 28.2% in March this year from 27.5% at the same time last year.
The Moody's Australian Housing Affordability Measure has remained constant on a national level, in part due to low interest rates. In Perth, affordability measures improved, due to declining home price, with the measure decreasing from 24.6% to 21.9%. Moody's noted Perth's exposure to falling commodity prices in its report.
The report called the affordability deterioration in Melbourne and Sydney "credit negative for new mortgage loans from these cities".
"The larger loan sizes and repayment obligations of new mortgages in Sydney and Melbourne are especially problematic since these mortgages are being underwritten at historically low interest rate," the report reads, noting an average Australian standard variable mortgage rate of 5.65%, while the 10-year average is 7.18%.
"Our forecast is for the RBA to cut the official cash rate - a key determinant of mortgage interest rates - by a further 25 basis points to 2% in 2015.
"However, borrowers who took out loans at historically low interest rates are at a greater risk of not being able to afford repayments when interest rates eventually rise.
"By contrast, mortgages underwritten at higher interest rates pose lower risk when interest rates rise, because borrowers' ability to service these loans has been assessed at higher interest rates."
Although there has been pronounced price increases in Melbourne and Sydney over the past two years, income growth has remained "modest", writes Moody's.
<a href="/images/2015/04/27/moodys-april-27-three.jpg" target="_blank"><img src="/images/2015/04/27/moodys-april-27-three.jpg" alt=""></a>
</body></html>

jrichardson-uRX5hFdKfN

Affordability "deteriorating" in Melbourne and Sydney: Moody's

<html><body>
The government's claim that increasing home prices are due to an underlying imbalance in demand and supply is not true, according to a new report.
LF Economics' Housing Supply in Australia report draws a parallel between Australia's current market and the United States property market before the global financial crisis. The report's author, Lindsay David, writes that the American housing bubble was "blamed on a phantom shortage", which was proven untrue after the market crashed. Instead, writes David, there was actually a "massive oversupply of houses in the market".
"Every country that has suffered through a housing cycle in recent years had so-called experts claiming capital prices were based upon fundamental factors of supply and demand," reads the report.
"Unfortunately, economists considered these housing price booms to be efficiently based, so there was no need to actually test for a shortage – they are considered to exist by definition."
According to the report, Victoria is of "particular concern", with the greatest rise in housing prices but also the "largest cumulative oversupply of dwellings at 123,000" – three years' worth of excess supply.
<img src="/images/2015/04/22/soos-april-22-one.jpg" alt="">
The report determined that to cope with its growing population, between 1996 and 2014, Australia should have required a new dwelling for every 2.6 new residents. The LF Dwelling Supply Index compares the amount of new housing supply to the influx of new residents.
<img src="/images/2015/04/22/soos-april-22-two.jpg" alt="">
According to the report, while there have been some periods of undersupply, from 1996 to 2006, there was an oversupply of housing in Australia.
David attributes the surplus period between 2007 and 2009 to the global financial crisis, which lead to a moderation in construction while population growth increased.
"A deficit existed between 2011 and 2013, again moving into surplus as population growth has again slowed and another boom in dwelling construction has taken hold, especially in the capital city apartment markets," David writes.
"Given the uptick in dwelling completions and residential projects in the pipeline, a surplus appears likely for the next several quarters."
The report concluded that there is no connection between housing prices and the rise in home prices recorded since 1996.
</body></html>

"Housing shortage is a myth": Report

<html><body>
Senator Sam Dastyari has said that he is too busy to finalise the final report of the Senate inquiry into affordable housing - again.
The release of the Economics References Committee's Inquiry into Affordable Housing report has been delayed until early May.
The committee inquiry kicked off in December 2013 with the report due by June 2014.
The Senate subsequently extended the reporting date on three occasions: first to November 2014, then to the first sitting day in March 2015 and finally by today, 14 April 2015.
Yesterday Dastyari let the Senate president know he was running late with his report.
He was recently dubbed a "stuntman" by assistant treasurer, Josh Frydenberg.
"I call him the Evil Knievel of Australian politics," Frydenberg said suggesting the recent senate hearings into international corporate tax were stunt-ridden.
With submissions from the Commonwealth, state and territory governments, organisations, academics and other people known to be interested in housing, the affordability committee received 230 submissions mostly in early 2014.
"The committee is preparing a comprehensive report to address the terms of reference," Dastyari advised yesterday.
"In order to allow committee members sufficient time to consider the draft report, the committee has …... the intention of tabling its final report before 8 May 2015."
Get your homework in please Senator!
PS Property Observer gleans the final draft - some 600 pages - is being finalised by the somewhat stretched secretariat of the committee.
</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