Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Negative gearing

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Australians are unconvinced by the flagship Labor reform on negative gearing, with 44 percent are against the policy change.
A poll found 43 percent in favour of restricting the tax deductions on investment properties.
The remaining 13 percent did not know.
It comes as Opposition Leader Bill Shorten mounted a spirited defence of his tax plans at the ALP national conference.
The Ipsos poll conducted for Nine Entertainment also found that voters were against the mooted change on capital gains tax on investments, with 48 per cent against and 43 per cent in favour.
Labor voters overwhelmingly back the changes.
Labor wants to halve the capital gains tax discount and restrict negative gearing to newly built homes, while “grandfathering” existing negative gearing arrangements.
It has claimed the policy would raise $32 billion over 10 years, making it Labor’s second-biggest policy after its proposal to raise $56 billion over a decade by restricting tax refunds on dividend imputation.
The Opposition leader noted on Sunday that the tax reforms were not “universally loved.” 
“I would rather see more young couples buy their first home, than spend billions subsidising investors acquiring multiple properties,” he told the Labor national conference.
Those who oppose Mr Shorten’s changes to negative gearing include 30 per cent of Labor voters, 26 per cent of Greens voters, 70 per cent of One Nation voters and 61 per cent of Coalition voters.
The policy is backed by 60 per cent of Labor voters.
The poll comes as housing policy emerges as an election issue.
<div class="_1665V undefined">
The biggest Labor policy at the national conference was a plan for $6.6 billion in affordable housing over 10 years by giving a subsidy to developers to build new homes and charge rents that are 20 per cent below market rates.
</div>
<div class="_1lC_G">The plan only includes $102 million over its first four years.</div>
<div class="_1665V undefined">
<p data-gtm-vis-recent-on-screen-6236702_632="1544961372749" data-gtm-vis-first-on-screen-6236702_632="1544961372749" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">The Labor policy revives the National Housing Affordability Scheme introduced by the Rudd government in 2008, which also gave a subsidy to developers but did not fund the full cost of construction.
<p data-gtm-vis-recent-on-screen-6236702_632="1544961372749" data-gtm-vis-first-on-screen-6236702_632="1544961372749" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">The government is committed to spend almost $30 billion on housing over the next five years.
</div>
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j.ballantyne1990-6AQqhLzZaK

Labor's negative gearing policy splits the nation

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Investors expecting to retain the ability to negatively gear their properties when the Labor Party win government next year are taking a big risk, says economist Robert Gottliebsen, The Australian columnist.
"At the moment, while the auction clearance rates in both Sydney and Melbourne are low, they are being boosted by investors seeking to retain the ability to negatively gear in anticipation that the ALP will win government next year," Gottleibsen said in his column in The Australian.
"But in my view those investors are taking a huge risk," he added.
If the Labour Party win government in May 2019, negative gearing will still be available on new homes, but not on existing homes.
"That means that after July 1, if those investors currently buying houses want to sell then the buyer will not have the benefit of negative gearing," Gottliebsen said.
"Investors buying old homes after July 2019 will want positive gearing — ie interest and costs must be lower than rental incomes.
"The only way to achieve positive gearing on pre-owned houses is for the price to fall sharply and/or rents to rise.
"Banks under the close day-to-day supervision of the regulators will lower their house valuations and then reduce the amount they are prepared to lend, accelerating the fall in prices." 
Gottliebsen called the Labor Party negative gearing policy an "atom bomb". 
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jonathanchancellor-7SQnKwU6yx

Investors taking risks in negative gearing purchasing: Robert Gottliebsen

<html><body>
EXPERT OBSERVER
If elected in 2019, Federal Labor plans to introduce restrictions on negative gearing for investors. Two weeks ago, I confirmed with the Labor Party that their proposed changes to negative gearing would apply across the board to all investments.
Previously, it was thought that Labor’s negative gearing restrictions might only apply to property investment, as they <a href="https://www.alp.org.au/negativegearing" target="_blank" rel="noopener">announced</a>:
Labor will limit negative gearing to new housing from a yet-to-be-determined date after the next election. All investments made before this date will not be affected by this change and will be fully grandfathered.
This will mean that taxpayers will continue to be able to deduct net rental losses against their wage income, providing the losses come from newly constructed housing.
From a yet-to-be-determined date after the next election losses from new investments in shares and existing properties can still be used to offset investment income tax liabilities. These losses can also continue to be carried forward to offset the final capital gain on the investment.
This article examines some practical examples of how Labor’s restrictions might operate. I make no political statement, either on my own behalf, or on behalf of The Tax Institute.
In summary, under the proposals, the excess of interest expense over income (such as rent or dividends) cannot be utilised against salary and wage income. It must be carried forward for offset in future years against future investment income or capital gains from the disposal of the investment assets.
<h4>Negative gearing: how big is the problem?</h4>
Although interest rates have been at record lows for many years, negative gearing remains pronounced as rental returns have also fallen. Interest rates of 4 to 5 % and rental returns of 2 to 3% are common profiles giving rise to negative gearing, albeit far more modest than when interest rates were at 15%-plus levels back in the 1980s. (That may provide some explanation for the failure of negative gearing reforms in the mid-1980s – but that is another story!)
Further, in the context of margin lending to fund share acquisitions, interest rates are usually into double digit levels. While some shares pay dividends much higher than the often-paltry returns achieved on property investments (think RIO 7.19% BHP 7.02% CBA 8.94%), that is not always the case (think CSL 1.24% QBE 2.57% Aristocrat 2.12%).
Labor’s figures suggest an improvement to the Federal Budget bottom line of $32 billion over 10 years. That figure, I believe, relates to both negative gearing and the proposed halving of the capital gains tax (CGT) discount from 50% to 25% so the exact tax contribution from negative gearing restrictions is unclear. Nonetheless, it does seem that Labor expects a substantial return from the change.
<h4>The scope of Labor’s proposed measures</h4>
After some interrogation, I have confirmed that Labor’s restrictions on negative gearing will apply (after a yet-to-be announced commencement date) to all investments on a global basis to every taxpayer. In other words, it will apply to property and shares and any other relevant asset class. It will look at a taxpayer and assess their overall investment income measured against their overall investment interest expenses.
Both these points are critical to an understanding of what is proposed.
<h4>What does this mean for investors in a practical sense?</h4>
Let me illustrate what this means for investors with three examples.
Example 1 – Harry
After the proposed commencement date, Harry, an Australian resident, borrows $500,000 from a bank and uses the borrowed funds to buy an investment property in suburban Melbourne. The interest rate is 5% per year and the net return (after all deductions other than interest) is 3.5% net per year. Harry is employed deriving PAYG income of $200,000 per year but has no other investments, geared or otherwise.
Example 2 – Raylene
After the proposed commencement date, Raylene, an Australian resident, borrows $500,000 under a margin loan arrangement and uses the borrowed funds to buy shares in an Australian company. The interest rate on the loan is 8% per year and the net return on the shares (after all deductions other than interest) is 2% per year (being the grossed-up dividend yield on CSL, QBE and Aristocrat combined, for example). Raylene is employed deriving PAYG income of $300,000 per year but has no other investments, geared or otherwise.
Example 3 – Suellen
After the proposed commencement date, Suellen, an Australian resident, borrows $1,000,000 from a bank at a 5% per year interest rate and uses the borrowed funds to:
<ul>
<li>buy a property for $500,000 which has a net rent (before interest) of 3%; and</li>
<li>buy shares in an Australian listed public company which will pay a grossed-up dividend yield of 5%.</li>
</ul>
In addition, Suellen uses $500,000 of her own funds to purchase 5-year treasury bonds, paying her an interest rate of 2% per year (I assume treasury bonds will be covered by the restrictions).
The restrictions on negative gearing will need to be carefully monitored by all three people.
Harry and Raylene will both fall foul of the proposed negative gearing restrictions as their interest expense exceeds the income – in Harry’s case by $7,500 and Raylene’s case by $30,000 (that is, interest expense of $40,000 or 8% of $500,000 minus $10,000 dividend or 2% of $500,000).
Under current rules, that excess could have been used to offset other income earned by Harry and Raylene giving rise to tax savings of $3,375 for Harry and $13,500 for Raylene. Under Labor’s proposals, the excess cannot be so utilised but must be carried forward for offset in future years against future investment income or capital gains from the disposal of the investment assets.
Their position will need to be looked at afresh every year as their circumstances may change. If, for example, the interest rate falls and the rent rises, the property may become positively geared (or just less negatively geared). In addition, they may buy new assets with better gearing ratios, in which case the problem may again be reduced or even completely eliminated.
Suellen, on the other hand, owns property bought with borrowed funds, shares bought with borrowed funds and bonds bought with her own funds. She will not have a negative gearing problem. Her total interest expense is $50,000 but her total investment income from the three sources is $50,000. She will be able to fully utilise the losses which she makes through the negative gearing of her property and share portfolio essentially through the positive gearing of the bond portfolio.
It’s bad news for Harry and Raylene but okay for Suellen. No doubt she might also prefer a life without the added drama of watching the negative gearing ceiling but with careful planning she can manage the process.
This is the key to dealing with the fallout from Labor’s restrictions. Management of portfolios should have regard to the restrictions on negative gearing.
In addition, purchasing properties in the name of the family member best able to manage any negative gearing restrictions will also be vital.
Finally, while I believe this interpretation is conceptually consistent with what Labor has announced, much will depend on the detail of the legislation. Sometimes the detail can surprise and can be inconsistent with the conceptual foundations.
Professor Robert Deutsch is Senior Tax Counsel at <a href="https://www.taxinstitute.com.au/" target="_blank" rel="noopener">The Tax Institute</a>. This article is for general information only and does not consider the circumstances of any investor.
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jrobinson-rf4aSBido9

How will Labor's negative gearing rules apply? Robert Deutsch

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The Senate crossbencher Derryn Hinch has told The New Daily he was open to supporting Labor’s negative gearing changes.
But the Victorian politician appears to seek to take the grandfathering aspect further that the opposition policy.
"My view is that I would vote for the ALP changes if grandfathered, but I would limit negatively geared properties to two or three.”
Senior MPs doubt the Shorten-Bowen policy will pass the Senate if Labor wins the next election.
The policy survived subdued attacks at the last election.
A Labor frontbencher told The New Daily it will be a very difficult Senate. 
“We can announce a date, say July 1, 2019 but I don’t think we are going to get it through. We’ve got to get 39 votes.”
While the Labor Party remains strongly committed to the policy, there are calls for the ALP to delay the introduction while the housing market remains volatile in Sydney and Melbourne.
In recent weeks, Treasurer Josh Frydenberg has ramped up the campaign over Labor’s negative gearing policy.
Labor also proposes reducing the capital gains discount from 50 per cent to 25 per cent.
Shorten’s changes will “grandfather” existing property investors, which means the 1.3 million Australians who currently negatively gear can continue to do so.
“For yonks I resisted changing it. I own one negatively geared property,” Hinch said.
“Now I know of one senator who owns more than 20 negatively geared properties. Not what was intended.
“I agree that nurses and cops own such properties.
"My view is that I would vote for the ALP changes if grandfathered, but I would limit negatively geared properties to two or three.”
It is not the first time Hinch has raised the issue giving insights in his 2017 Budget in reply speech.
"I support negative gearing.
"I have declared in my pecuniary interest register that I have one heavily mortgaged negatively geared apartment, but I am open to legislation to limit the number of properties, residential or commercial, that a person can negatively gear. 
"I am increasingly being convinced of a limit of two or three such properties,' he said last year.
"It could help first-time buyers who are being swamped by investors, local and foreign, at every weekend auction."
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jchancellor-FAypfDUnLy

Senator Derryn Hinch says he'll seek even more restrictive negative gearing than Labor

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<div id="story-description">
Labor’s negative gearing policy was a “hand grenade” that could tip Australia into recession, mortgage broking pioneer John Symond has warned. 
</div>
“I don’t care whether it was Liberal, Labor or the Greens, if they come out with such a radical move that could tip the economy over, I’ll be outspoken,” Mr Symond told The Australian.
“I appreciate that they say they’ll grandfather existing investors, but the unintended consequences would be astronomical.
“I am concerned that it would do so much damage — unemployment, higher interest rates — it could tip us into recession.”
Mr Symond said grandfathering negative gearing would help first-home buyers get into the market.
But it would “hurt the vast majority of Australians” who already own a home because established property prices would fall.
“Every home through every street will be impacted.
"You’ll have tens of thousands of people in negative equity. Bank balance sheets will be whacked and so funding costs will be higher.
“Banks will lend less, banks will earn less, share prices will fall and it will impact superannuation fund returns,” he said.
“It will be a nuclear bomb.
"There will be very little incentive for people to get into property.”
 
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Aussie John Symond slams Labor negative gearing housing policy

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Some of the highest concentrations of property investors with negatively geared investment properties are in Labor-held electorates, analysis released by the federal government to News ltd papers show.
The income and tax statistics-based report by the Australian Taxation Office was published along with a coalition attack on Labor’s policy to phase out negative gearing.
Some 1.3 million Australians take advantage of the tax break on investment properties, with 640,000 living in coalition electorates and 570,000 in Labor-held seats.
Treasurer Josh Frydenberg said Labor’s property plan would punish investors, he told The Australian.
According to a nationwide seat-by-seat study by the government, the most recent incom­e and tax statistics from the Australian Taxation Office shows that more people ­residing in Labor-held seats had negatively geared rental properties than in Coalition-held seats, in five out of the eight states and ­territories.
Josh Frydenberg ­said the ATO data showed that in the biggest property market, NSW, the number of people who negatively geared rental properties was divided equally among Labor and Coalition-held seats, with deputy ALP leader Tanya Plibersek’s seat of Sydney featuring in the country’s top 10.
The electorates with the highest number of investors were the two seats in the ACT, both of which are held by Labor.
The latest data shows about 254,000 Queenslanders claimed a loss in 2015-16.
Some regional Queensland electorates have been hit with huge slumps in property prices since the mining downturn, The Courier Mail has noted.
In Capricornia and Flynn in central Queensland, along with Dawson, which has a strong mining and tourism workforce, have about one in 10 voters who claim for a net rental loss.
In NSW The Telegraph published data from Treasury revealing 374,000 Sydneysiders are claiming the benefit.
“No real estate market will be harder hit by Labor’s ill-conceived property tax than the NSW market,” the Treasurer said.
Treasury data reveals about 10,000 people in each of the Labor electorates of Parramatta, Greenway, Barton, Sydney and Kingsford Smith claimed the tax discount. 
The 8655 people using the concession in deputy opposition leader Anthony Albanese’s Grayndler electorate is more than the 8195 people in former prime minister Malcolm Turnbull’s old electorate of Wentworth, the paper noted.
Labor's proposed rules apply to properties bought after the policy start date: either July 1 next year or July 1, 2020, depending on the timing of the next election.
The government claims that investors already holding negatively geared property will feel the impact of the grandfathered policy by trying to sell into a depressed market with less interest coming from investors.
Labor’s policy to restrict negative gearing to new dwellings - and to cut the capital gains discount from 50 per cent to 25 per cent - has come under sharper scrutiny, The Australian reported. 
Master Builders Australia has warned that it would result in a $12bn hit to building activity in the sector and lead to 42,000 fewer new homes being built over five years.
There are 120,000 ­investors with three or more properties, up from 116,700 just a year prior.
This week the Westpac boss Brian Hartzer noted a factor weighing on property uncertainty was the Labor policy, although he stopped short of blaming the proposed policy as a reason for falling prices.
"Clearly negative gearing is a significant feature in investors' decisions on property investment, or certainly, it has been over recent years. So a change in negative gearing policy would be viewed by many investors as a significant issue to be thought through before they make a further property investment," Mr Hartzer said.
 
 
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Labor seats have plenty of negative gearing property investors

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Two property investor bodies have attacked the federal Labour party's proposed changes to negative gearing and capital gains tax, claiming it will "will decimate the property market".
Independent research commissioned by Masters Builders Australia found Labor’s policies could result in a multi-billion dollar hit to the Sydney and Melbourne markets.
The Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) said the party has a fundamental misunderstanding of the sector.
“Property investors provide housing for 30% of Australians at a time when spending on social housing is at an all-time low,” PIPA Chairman Peter Koulizos said.
“Contrary to media headlines, only about 70% of investors own one property so the concept of ‘greedy investors’ is not supported by the facts.”
The 2018 PIPA Property Investment Sentiment Survey found about 60% of investors believe their portfolio will be positively geared within the next five years.
Koulizos said that this shows that negative gearing is primarily a result of high transactional costs associated with real estate investment, rather than a strategy. 
In the survey, 6% of investors said they were interested in buying a new property.
This means restricting negative gearing to brand-new dwellings would not increase supply, Koulizos claims.
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Labour's negative gearing and capital gains policies will "decimate the property market": PIPA/PICA

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GUEST OBSERVATION
Contrary to Labor’s claims, its policies on negative gearing and capital gains tax will not increase the supply of new housing or create new jobs in the building industry according to new independent economic modelling commissioned by Master Builders Australia.
According to modelling prepared by Cadence Economics if Labor’s policies are implemented it will mean:
1. Up to 42,000 less new dwellings being built across the country.
2. Up to 32,000 less full time jobs.
3. Up to $11.8 billion less building activity.
4. Up to $210 million less renovation building activity.
Labor’s policies on negative gearing and CGT fails its own test. “Master Builders calls on the ALP to rethink their policies in the light of this new research and a changed housing market. Australia cannot afford for housing supply, building activity and employment to go backwards.
Cadence Economics was commissioned by Master Builders Australia to test Labor’s claims that its policy to restrict negative gearing to investments in new housing and halve the capital gains tax (CGT) discount to 25 per cent all properties will increase the supply of new housing and employment in the building industry.
The results of the modelling show that within five years of Labor’s property tax policy being implemented the construction of new housing would fall in all states and territories and employment would fall over the same period.
Labor has previously stated their policies would boost new dwelling construction “by thousands of new homes each year."
On the other hand independent modelling by Cadence Economics shows that Labor’s policy would mean up to 42,000 fewer new homes would be built over the five years following the implementation of Labor’s policies, resulting in a reduction in the value of residential building activity of between $2.8 billion and $11.8 billion.
Home renovations would also be hit by an expected reduction of between $50 million to $210 million in activity over a five year period.
Inevitably this would mean a fall in employment which is expected to be between 7,200 and 32,000 less jobs across the country.
Finally, the context of Labor’s policies, namely an ‘overheated’ housing market no longer exists bringing into question the need for reforms to curb investor activity.
Denita Wawn is the CEO of Master Builders Australia
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Labor has failed its own test on negative gearing: MBA's Denita Wawn

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EXPERT OBSERVER
Labor’s negative gearing plans will disadvantage some first-home buyers and lower-income Aussies who are property investors working hard to get ahead. 
A more effective policy would be to means-test investor tax subsidies, and cap the number of properties that can be negatively geared. 
Labor’s plans to limit negative gearing to new housing and halving the capital gains tax concession will do little to help this hardworking market segment.
Labor has wrongly suggested that all investors are higher-income earners. Through the Starr Partners network of 31 real estate offices, he has learned that many investors are also first home buyers and lower-income Aussies.
I’m hearing from agents and brokers across markets popular with first home buyers, that approximately 30-35 per cent are rentvesting. 
They are often purchasing a property, living in it for six to 12 months, then putting it on the rental market. 
Labor is trying to help middle- and working-class families, but let’s not forget that many nurses, teachers, and policemen are also purchasing investment properties – they make up the investor profile, too. The Opposition’s proposed policy could inadvertently disadvantage many of the people it is trying to help.
To make the Australian dream of purchasing a home true for all Australians, there are more effective strategies that would appease investors and nurture first home buyers. From what I can tell, this policy is a regurgitation of Labor’s previous election manifesto. 
What puzzles me most is that if it didn’t curry favour in the lead up to the last election when investors made up the majority of the market, then how is it going to garner support now that their numbers have decreased considerably. House prices are cooling, which shows the government’s macroprudential measures are working, but I agree more could still be done.
Instead of limiting negative gearing, as Labor has suggested, Aussies that want to claim tax subsidies could be means tested. This would ensure that higher-income earners are not benefitting the most, and tip the balance in favour of those that need the subsidies the most. Alternatively, capping the volume of properties an investor can negatively gear will reduce the number of negatively geared properties, without limiting it to a subset of homes. 
Any existing properties need to be grandfathered. Labor has got it right to grandfather existing investment properties, a policy I strongly stand by. Without this, it could lead to property Armageddon.
Doug Driscoll is the CEO of Starr Partners.
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Labor’s negative gearing policies are flawed: Doug Driscoll

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EXPERT OBSERVER
Yet another new Prime Minister in Canberra. Does this mean it’s time to check our smoke alarms? It’d be comical if it wasn’t so concerning.
The frequent changes in leadership and constant mud-slinging through the media, many people tune out of daily political news.
As prices fall in markets across the country, tuning out of politics is simply not an option for the astute property owner with much at stake in the coming election.
Ignoring Canberra and its politics can be a costly mistake as the various proposed policy changes from both the Australian Labor Party (ALP) and The Liberal Party of Australia (Liberal) camps will make a huge impact on our property landscape – affecting home-owners and investors.
The ALP unleashed a media storm when it burst out of the policy box and promised to abolish negative gearing for all properties except new housing – with a tidal wave of opposition among the investment community.
Any property owner should be very concerned about this proposal and its impact on prices.
There has been considerably less attention to other significant property-related policies that ALP has tabled such as increasing capital gains tax – which could have a monumental impact on all property sales.
Liberal’s policies have been deemed more investor-friendly – particularly keeping negative gearing in its current form and just removing travel expenses as a deduction.
A policy already implemented. So what is best for property investors – ALP or Liberal policy? There is no blanket solution and what is best will vary depending on each individual investor’s age, retirement plans and financial position.
One thing is clear – if Labor implements its new negative gearing regime – the winner will be the new housing market as any investor wanting to minimise their tax burden will snap up to new developments - new houses and new apartments.
Conversely investment in existing properties will take a nosedive as it will be far less appealing with no negative gearing benefits.
Prime Minister Scott Morrison has this week foreshadowed a “housing market crash” as a likely result of Labor’s property policies including abolishing negative gearing and halving the 50 per cent capital gains tax discount.
With an election due by the end of May next year property investors will have greater certainty about any changes to the market.
In the meantime it’s important to continue to monitor what is coming out Canberra to ensure investors are best placed to protect and grow their portfolio.
Keeping up-to-date with the proposed changes is a minefield but is best summarised in this table.
<img src="https://www.urban.com.au/images/2018/9/20/Nihilism%20table.JPG" alt="">
James Nihill (pictured above) is the Managing Director at the real estate agency Patrick Leo
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