Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" 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%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Off the plan

<html><body>
More than half of all recent off-the-plan (OTP) apartments in Sydney and Melbourne have been settling with a valuation below their contract price, according to the latest findings from CoreLogic.
Their data shows that 60% of OTP apartments in Sydney, and 52.9% in Melbourne are now worth less their their original contract price, based on August settlements.
In 2017 less than 16% of newly constructed NSW units were valued below contract price after they were completed.
CoreLogic's head of research, Tim Lawless, told the ABC when many of these newly completed apartments were originally sold off the plan back in 2016 and 2017, the market was very different.
"We were seeing values rising at about 15% to 20% per annum in Sydney and Melbourne," Mr Lawless said.
"Now cast your mind forward to 2019 and we've seen prices come down in Sydney by 15%. In Melbourne, they're down by about 11%.
"A lot of those off-the-plan buyers have seen a very fundamental shift in the value of the project that they purchased a couple of years ago," he added.
Mr Lawless also brought up the issue of oversupply, as well as concerns around construction quality, remediation costs and flammable cladding.
"That [is] probably also weighing on the minds of people in the marketplace and potentially affecting the resale value of those properties as well," he concluded.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Majority of OTP apartment on settlement in Sydney and Melbourne worth less than purchase price

<html><body>
It is easy to get caught up in the excitement of purchasing a new apartment, particularly when you are presented with beautiful, stylish, modern designs.
It's the same whether you are a first time buyer right through to the downsizer.
But you cannot let your excitement get in the way of doing proper due diligence, or it can really cost you, Parramatta Stacks solicitor, Zohra Ali warned this week.
Ali suggests that off the plan (OTP) buyers can never be too careful.
The risks involved in off the plan purchasing emerged recently after the collapse of the Sydney-based Ralan Group, the longtime apartment developer.
It has left hundreds of apartment buyers at risk of losing their deposits for their intended Arncliffe acquisitions.
Like other off the plan purchasers they put forward a deposit - generally being 10 percent - before their property has been built. But these Arncliffe buyers went further and released their deposit for the developer who'd promised a high rate of return during the intervening period. 
The apartment buyers who have released their deposits will be considered as unsecured creditors, ranking behind secured lenders the ATO, Westpac, NAB, St George, Wingate Group and Balmain NB Commercial Mortgages. 
Not all off the plan contracts present the same level of risk, and as with all investments, there are important things to research.
Ali says off the plan buyers should seek independent legal advice as well as financial advice prior to signing off.
"Ultimately an off the plan buyer is purchasing something that does not exist yet," Ali noted.
She points out there are many players involved from the time of signing the contract to having it ready for settlement, including the developer, council, valuers, builders and certifiers.
"With so many players involved, it only follows that the risk of something going wrong increases exponentially to when purchasing an already built home."
An already built home is a fairly simple process – but does often involve the cautionary pest and building inspection reports during the cooling off period.
Your lawyer can help you assess the risk level of entering into an off the plan transaction by undertaking some due diligence on the proposed developer and also the builder whose bankrupcy could see construction halted indefinitely.
Ali says she wouldn't ever contenance a client releasing the deposit in an OTP situation.
"There is no reason for why a deposit should be released to a developer, and if anything, the request should serve as a red flag as to the developer’s financial situation.
"What happened to Ralan is a perfect example of what can happen if your deposit is not sitting safely in a trust account."
She describes the situation that the Ralan buyers have found themselves in was "a terrible situation."
"It will definitely take a large, financial toll on the affected families.
"To face losing your deposit this way, and at a time where the market is at a downturn and is otherwise the perfect time for a first home buyer to purchase, would be absolutely devastating."  
Ali adds even if you do all the due diligence, and ensure that you go with a reputable developer, somethings can still go wrong.
After all developers cannot predict what state the property market and lending standards are going to be in in the future.
This article was first published in the Daily Telegraph.
 
</body></html>

jchancellor-FAypfDUnLy

Ralan collapse shows off the plan buyers need genuine independent legal and financial advice 

<html><body>
Sydney’s second biggest CBD, <a href="/new-apartments/parramatta-nsw">Parramatta</a>, is seeing an influx of development in the heart of its major business and commercial centre. Growing in population above 27,000 people, residential high rise projects are being focused to the city centre, resulting in a new wave of urban density.

The culturally diverse suburb is the oldest inland English settlement which is now home to a myriad of Heritage buildings, the 10th largest shopping centre in Australia, Westfield Parramatta, the renewed Western Sydney Stadium along the Parramatta River, a vibrant Church Street with boutiques, cafes, bars and Indian and Chinese cuisine options and Western Sydney University. 

With NAB relocating 3000 employees from <a href="/developments/sydney-nsw">Sydney CBD</a> to Parramatta CBD, revamped works of major roads, squares and the main service station, Parramatta is experiencing a major boom.

Here are a few exciting projects igniting the city centre. 
 

<a href="/new-apartments/8-phillip-street-2-10-phillip-street-parramatta">8 PHILLIPS STREET - RESIDENTIAL + HOTEL</a>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/woods_bagot_8_phillip_street.jpg" rel="gallery-all" title="Render by Woods Bagot"><img alt="" class="image-article-full-width-580px" height="1043" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/woods_bagot_8_phillip_street.jpg?itok=w3r_iSHh" title="Render by Woods Bagot" width="580"></a>

<figcaption>Render by Woods Bagot</figcaption></figure>Woods Bagot’s 8 Phillips Street is a 55 story rhomboid-shaped glass tower will feature Sydney’s tallest rooftop bar, ‘Studio 54’ with sweeping views over the city. 
The tower will comprise of 314 luxury one, two and three bedroom apartment configurations including studio and penthouse options and the QT Boutique Hotel with over 200 deluxe rooms and 50 executive suites.

<a href="/architects/woods-bagot">Woods Bagot</a> boldly incorporates the existing heritage building, the 1926 St. Andrew’s Hall, by integrating it into the entrance with the new development floating above, making for a stunningly impressive residents lobby and streetscape. The five story trapeze garden at the entrance to the tower is just a hint of what’s to come with balcony overhanging plants and a rooftop garden featuring contemporary native Australian species, planted to create a secret garden oasis with intimate communal spaces. 
 

<a href="/buildings/the-lennox-12-phillip-street-parramatta">THE LENNOX - RESIDENTIAL</a>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_lennox_source_jpw.png" rel="gallery-all" title="Render by JPW Architects"><img alt="" class="image-article-full-width-580px" height="722" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_lennox_source_jpw.png?itok=wkRIFLHV" title="Render by JPW Architects" width="580"></a>

<figcaption>Render by JPW Architects</figcaption></figure><a href="/architects/jpw-architects">Johnson Pilton Walker Architects</a>’ The Lennox tower is one of many high rise residential developments springing up throughout Parramatta. Rising 152 metres above the Parramatta River, the uninterrupted views are one of the many 5 star amenities such as a private lounge room with entertainment deck, a pool, outdoor terrace and zen wellness and fitness centre.

The Lennox will be part of the gateway that is set to dominate the CBD’s skyline, being the first one many high rise towers visitors will see as they cross the bridge. The first three floors of the podium will include retail tenancies, a council owned discovery centre, a conference centre and a cafe with an upgrade riverfront for public use.

Many <a href="/developments/parramatta-nsw">Parramatta developments</a> aren’t just privatised residential components, but like The Lennox, have much to offer the public domain whether that be revitalising waterfronts, providing civic spaces or enlivening heritage structures. 
 

<a href="/buildings/west-village-88-church-street-parramatta">WEST VILLAGE - RESIDENTIAL</a>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/woods_bagot_west_village.jpg" rel="gallery-all" title="Rendering by Woods Bagot"><img alt="" class="image-article-full-width-580px" height="735" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/woods_bagot_west_village.jpg?itok=A-Lfi2-l" title="Rendering by Woods Bagot" width="580"></a>

<figcaption>Rendering by Woods Bagot</figcaption></figure>The sophisticated residential tower provides 397 world class apartments across 40 floors and rising 150 metres above the Parramatta skyline. Woods Bagot has designed this high quality tower which aims to give the city centre that new edge and connect to the streetscape with ground floor retail and cafes.

Developers <a href="/developers/ecoworld-international">EcoWorld</a> have enlisted landscape architect Myles Baldwin to conceptualise the podium garden above level 7 with sweeping views of the Sydney CBD with fully equipped chef’s kitchen, alfresco dining options, leafy terraces and a barbeque area.

Rumours are that Malaysian favourite ‘Chinta Ria’ and gourmet Italian providore ‘Salt Meats Cheese’ are to open tenancy on the ground floor strip, proving that collaboration between developers, architects and suppliers have made for a very important and vibrant project.

As this development takes shape, by the time it completes in late 2019, it will have cemented itself into the Parramatta community fabric and truly embodies the city centre moving towards a progressive future. 
UPDATE: <a href="/news/parramatta-s-west-village-tops-out-at-40-levels">West Village tops out at 40 storeys</a> as of late November 2019 with a 95% sales rate success. Designed by <a href="/architects/woods-bagot">Woods Bagot</a>, the tower features 398 luxury one, two and three bedroom apartments which rise from the vibrant ground floor retail precinct. 

 

<h2><a href="/developments/parramatta-nsw-2150">PARRAMATTA SQUARE - OFFICE, MIXED USE</a></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/parramatta_square_source_jpw_architects.jpg" rel="gallery-all" title="Render by JPW Architects"><img alt="" class="image-article-full-width-580px" height="363" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/parramatta_square_source_jpw_architects.jpg?itok=4qxvXTX3" title="Render by JPW Architects" width="580"></a>

<figcaption>Render by JPW Architects</figcaption></figure>Masterplanned by <a href="/architects/jpw-architects">Johnson Pilton Walker Architects</a> as a response to the growing city, Parramatta Square comprises of 6 stand alone buildings with their own importance to the urban renewal precinct. The towers, a commercial tower to which is the new campus for 10,000 Western Sydney University students, a mixed use residential tower, proposed to be the tallest for Parramatta, a 5 Star Green office tower including a civic building, community centre and library, a 5 Star Green commercial and retail building central to the square and dual 5 Star Green energy office towers.

The 6000 square metres of open space is dedicated and centred around the rich heritage sandstone of St. John’s Cathedral and the Parramatta Town Hall and is pedestrianised with green space and public plazas to connect and integrate the new commercial, residential and community buildings.

Connected either side of the precinct by a future light rail extension and Parramatta Station, visitors and locals will be able to flow through the community heart with ease. 

Parramatta Square is about providing a higher quality of life for residents and workers with a world class premium health and fitness club, an A-grade child care facility and bespoke Business and Events centre with meeting rooms and auditoriums making the work/life integration effortless.

 

<h2>ARTHUR PHILLIP HIGH SCHOOL - EDUCATION</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/arthur_phillip_-_grimshaw_and_bvn.png" rel="gallery-all" title="Arthur Phillip vertical school by Grimshaw Architects and BVN Architecture."><img alt="" class="image-article-full-width-580px" height="365" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/arthur_phillip_-_grimshaw_and_bvn.png?itok=PeIvPKpF" title="Arthur Phillip vertical school by Grimshaw Architects and BVN Architecture." width="580"></a>

<figcaption>Arthur Phillip vertical school by Grimshaw Architects and BVN Architecture.</figcaption></figure>Arthur Phillip High School is Australia’s first vertical high school accommodating 2000 students across 16 floors of educational indoor and outdoor facilities. 
With flexible teaching spaces, adaptable room configurations and technology rich rooms that expand small to large for certain class sizes, the design aspect will mean that students and teachers will benefit from their environment with better opportunities for collaboration and personalised learning.

The collaborated architectural and landscape design by <a href="/architects/grimshaw-architects">Grimshaw Architects</a> and <a href="/architects/bvn-architecture">BVN Architecture</a> helps to deliver a truly remarkable community engaged structure aimed to meet the growth of secondary students in and around the Parramatta catchment area.

Opening in 2020, the high school will join the 1000 student facility Parramatta Public School on the existing school sites with combined tennis and basketball courts, a football field and rooftop gardens for both structures as social and environmental consciousness is encouraged.

With this development, Parramatta is set to become an even more exciting, vibrant and inclusive hub for innovation, technology, retail and commercial business. 
A fly through <a href="/news/council-offers-a-glimpse-of-what-parramatta-will-look-like-in-the-near-future">unveiling the future of the CBD</a> has been released via The City of Parramatta Council encompassing 30 different projects that won design excellence competitions over the past four years with the council stating they have a combined development value of $5.5 billion.

<h2> </h2>

 
</body></html>

Nick Dante

Parramatta: Suburb Guide. Highlighting new developments in Sydney's second CBD

<html><body>
Buyers in a Sydney apartment block being built by the failed Ralan Group have been told deposits from their off-the-plan purchases have likely already been spent.
The administrator of the collapsed apartment developer is ascertaining the whereabouts of hundreds of deposits for the Arncliffe block and the Ruby at Surfers Paradise.
The semi-complete development, Orchid, was expected to be the showpiece of the private property developer company which fell into voluntary administration earlier this week estimated to owe cred­itors $500 million.
“The development is currently on time with a good proportion of pre-sales,” the administrators Grant Thornton advised yesterday.
But the administrators also noted their “initial estimate is that there is a significant ­deficiency owing to purchasers who elected to release their ­deposit.” Grant Thornton are investigating whether the “side agreements” had effectively granted use of the funds to Ralan as unsecured loans.
It is not usual practice for off-the-plan buyers to release their 10 per cent deposits with most developers instead ­safeguarding the money in trust funds.
“It is uncertain how much, if any, of your deposit you may receive back if you had agreed to release it as an unsecured loan,” the administrators told anxious Arncliffe buyers.
“We are currently in discussion with the relevant stakeholders about next steps regarding the development.
“We believe that the majority, if not all, of the deposits ­released have been used to fund the expenses of the group, including payment of interest on unsecured loans.
“The administrators will be undertaking an investigation into the group’s financial position to establish how these funds have been used and whether any recoveries can be made in the future that will be available to pay you back.”
It is not known what sale prices were achieved but realestate.com.au puts the average Arncliffe apartment price at $630,000, suggesting the deposits could average $63,000.
“If a purchaser did not elect to release their deposit, it is our understanding these funds are being held in the group’s trust account,” Grant Thornton’s Said Jahani advised the 1200 off-the-plan buyers.
The Ralan Group applied in 2014 to build seven apartment towers for the $132 million project on the Princes Hwy.
This article was first published in the Daily Telegraph.
</body></html>

Off the plan deposits in Ralan Group apartment projects not kept in trust funds

<html><body>
Victorians buying off-the-plan properties will get greater protection under new laws on termination sunset clauses.
The legislation was presented to state parliament on Wednesday, but backdated to August 23 last year when the legislation was first announced.
“We’re taking action to make sure that Victorians aren’t being ripped off by dodgy developers – the days of misusing sunset clauses to make super profits are over," Consumer Affairs Marlene Kairouz said.
<div>Changes to legislation will make it tougher for developers to deliberately delay projects to take advantage of a return to rising land prices across Melbourne.</div>
There have been concerns of developers returning deposits and on-selling it for a much higher price for house and land packages and off the plan apartments.
The flexibility in residential developments will be significantly reduced as while the purchaser retains the right to unilaterally terminate residential off the plan contracts of sale under a sunset clause, developers will no longer be able to do so.
To minimise the need to rely on a sunset clause, developers may opt for a longer period between the day of sale and the sunset date, to allow sufficient time for obtaining all approvals from the relevant authorities and completing all works required for registration of the plan of subdivision.
Developers will be wary about going to market too early. Consumer Affairs Victoria received 64 complaints in 2018 about sunset clauses.
The new bill had consumer advocates also praising planned curbs on rent-to-buy schemes.
Under changes to the Sale of Land Act, off-the-plan developers of housing estates and apartment blocks will need the permission of buyers, or the Supreme Court, to enact the sunset clause.
Consumer Affairs minister Marlene Kairouz introduced the changes saying the changes would ensure developers were unable to take advantage of those buying off-the-plan. 
The NSW government introduced legislation in November 2015 that requires the vendor to obtain the purchaser’s consent or an order from the Supreme Court before the vendor can terminate an off the plan contract of sale under a sunset clause.
</body></html>

jonathanchancellor-7SQnKwU6yx

Victorian off the plan buyers to get boosted contract termination sunset clause rights

<html><body>
The RBA says dwelling investment is likely to be around its peak for this cycle, and is projected to now decline over coming years.
"The pipeline of work to be done on higher-density housing remains very large, which should continue to support activity in the near term."
"This is consistent with reports from construction firms and developers in the bank’s liaison program."
However the RBA noted higher-density building approvals have been trending lower for around a year, and are expected to decline further over coming quarters.
"This implies a much lower level of activity once the current pipeline of work is completed."
"Information from the liaison program also points to a significant fall in pre-sales for new apartments over the past year."
"In addition to the difficulty of obtaining pre-sales, liaison with developers suggests that financial conditions have tightened further over the past six to twelve months."
"As a result, some developers are obtaining financing from alternative sources, though at a higher interest cost."
The bank's statement of monetary policy indicated sales of new detached dwellings have also slowed.
Detached housing investment is forecast to decline in the near term, broadly consistent with the decline in building approvals over the past year.
The RBA also discussed the <a href="/news/tightening-in-lending-standards-not-the-cause-of-housing-credit-growth-decline-rba">tightening in lending standards</a> over the past year not being the cause of the recent decline in housing credit growth.
The monetary policy statement also looked at how the <a href="/news/uncertainty-on-house-prices-set-to-impact-on-demand-for-appliances-and-furnishings-rba">uncertainty on house prices</a> is set to impact on demand for appliances and furnishings.
</body></html>

Developers are facing difficulties in obtaining OTP-sales: RBA

<html><body>
<div class="x__2vba1">
Riskwise Property Research has pinpointed Rouse Hill in Sydney's NorthWest as the suburb most at risk of off the plan apartment settlement problems.
Its data shows that off the plan apartments equivalent to three times the current unit stock is yet to settle over the next two years.
Investors currently comprise 57% of purchasers of the 1000 units in the suburb which is located 50 km from central Sydney.
Rounding out the top three are Norwest and Beaconsfield both of which have off the plan apartment stock equivalent to double the existing number of apartments set to settle in the next two years.
Melbourne, Brisbane, Perth and Adelaide also have suburbs in what Riskwise call the settlement risk "Danger Zone".
<img src="https://www.urban.com.au/images/2019/2/5/Rouse%20Hill.JPG" alt="">
</div>
<div class="x_ztzrw">
<div class="x__3t7hh">
"There are a large number of high-rise properties in our capital cities being offered to a smaller number of investors," Riskwise chief executive Doron Peleg said. 
"There are less investors in the market mainly due to credit restrictions. Also, lenders are being more cautious about their loan-to-value ratios (LVRs) and more discerning about who to lend to. This has resulted in a reduction in activity and this has a major impact on the market. Lenders understand that oversupplied suburbs carry a greater degree of risk – and those risks are just as real for the investors who buy in those suburbs."
Most of the suburbs highlighted in the Danger Zone list are already subject to loan blacklists or other such restrictions.
For example requiring significantly higher deposits, up to 30 per cent. 
Such moves will make these properties harder to sell, as brokers needing to increase their volume of mortgage sales to up their remuneration would increasingly steer customers away from higher-risk properties that would take more time to secure financing and had less guarantee of success, Mr Peleg said.
"This overall will potentially reduce the demand for those properties," Mr Peleg told Nine Entertainment's Financial Review. 
"If you have a sub-prime [borrower] and a high-risk property, it means the loan application could take many, many hours if it's approved. The broker will not have too many ways to compensate for those invested hours if the fee is flat. He will try to minimise those loans and even in many cases a broker will work with a consumer and tell them 'This is a high-risk property, maybe you need to consider an existing property'."
Further risks to the swathe of new apartments due to complete and settle over the next two years include the likelihood of a new Labor-led federal government that could more fully implement the royal commission's recommendations against brokers and reduce the negative gearing and capital gains tax breaks available for property investors, he said. 
The outlook for apartments was negative, Mr Peleg maintained. 
"The trend we see – everything regarding consumer protection, responsible lending and scrutinising loan applications – we don't see any indicators that will drive demand for off the plan," he said.
High-rise apartment approvals hit a four-year low in the year ended December, according to ABS figures.
One example of the numerous Rouse Hill developments that can be currently bought OTP is <a href="http://www.villadema.com.au/" target="_blank">Villa De M.A</a> (pictured in title).
Situated on Cudgegong Road, this project has one and two bedroom apartments available for off the plan purchase.
Prices range from $499,000 to $693,000.
<img src="https://www.urban.com.au/images/2019/2/7/Rouse%201.JPG" alt="">
Another example of an under construction OTP development for sale in Rouse Hill is <a href="https://boulevardrousehill.com.au/" target="_blank">The Boulevard</a>.
With prices ranging from $620,000 to $925,000 for one, two and three bedroom apartments, AUX Property Group lauds it as "Sydney's Growth Capital".
Located on Caddies Boulevard, a new Rouse Hill Hospital and Sydney Metro Northwest Rouse Hill Station, are to be constructed in the area.
</div>
</div>
</body></html>

Sydney's Rouse Hill is the Australian suburb most at risk of OTP settlement problems: Riskwise

<html><body>
<div class="_1665V undefined">
UBS says Mirvac, Lendlease and Stockland now face a higher risk of settlements falling over because of their exposure to projects sold to buyers at the 2017 peak of the property cycle.
“We see Mirvac as most at risk followed by Lendlease and Stockland,” analysts Grant McCasker and James Druce said.
Australia’s largest property players face a risk of buyers failing to pay at settlement time because of falling apartment prices and valuations, analysts say.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/Figure1.jpg" alt="">
In a gloomy outlook for three of the nation's largest real estate developers, UBS said apartment sales make up a significant chunk of earnings for Mirvac, in particular, over the next three financial years. 
</div>
<div class="_1ysFk">
<div class="_1665V undefined">
The most at risk projects are in Sydney’s Marrickville and Olympic Park which “appear already out of the money” because Sydney’s apartment price index has fallen five per cent since launch, the analysts said.
St Leonards could also become an issue were prices to fall a further five to 10 per cent.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/Figure2.jpg" alt="">
The UBS report has surprised industry veterans given <a href="/news/mirvac-defaults-stay-low-amid-price-moderation-and-downturn-in-foreign-buyers">Mirvac's history of reliable buyers</a>, often repeat buyers too.
“We are less concerned about Lendlease's settlement risk given the price growth since the 2015-16 launch dates,” the report said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/figure3.jpg" alt="">
</div>
<div class="_1lC_G">Stockland, has minimal exposure to the apartment market, with substantial earnings from land sales for new homes.</div>
<div class="_1665V undefined">
The number of buyers cancelling contracts on land purchases is presently low, but UBS warns that tightening credit, price falls, incentives and lower deposits will increase the number of buyer who will struggle.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/Figure4.jpg" alt="">
“We expect Stockland's second half settlements to disappoint as cancellation rates increase and settlement times extend,” UBS said.
<div>
Mirvac, Stockland and Lendlease reputedly declined to comment to Nine Entertainment on the UBS report, saying they are in the ''blackout'' phase before the release of their interim reports for the December half, due in the coming weeks.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/Figure5.jpg" alt="">
But Stuart Penklis, head of residential at Mirvac advised The Australian that Mirvac was monitoring the changing residential market conditions closely.
"It is important to remember that ‘average’ price changes mask significant differentiation between submarkets and housing type.  
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/31/Figure6.jpg" alt="">
"We believe that our disciplined approach to restocking, our commitment to design excellence, a quality product, and customer care will continue to differentiate us from others in the market,” he said.
</div>
</div>
</div>
</body></html>

Mirvac most at OTP apartment settlement risk among listed property developer company

<html><body>
Off-the-plan units top the list of the most perilous property investments, and the risks will rise dramatically if changes to negative gearing and capital gains tax go ahead.
This is according to <a href="http://www.riskwiseproperty.com.au/">RiskWise Property Research</a> CEO Doron Peleg, who says while there are already major risks associated with this type of investment due to a number of factors, including oversupply, the introduction of the reforms if Labor win this year’s federal election will compound them.
The ALP proposes to limit negative gearing to new houses only and reduce the discount on capital gains tax from the current 50% to 25% … and the likelihood of them winning is high, Peleg said. 
“A number of markets across Australia are already experiencing weakness and the introduction of these reforms will hit them hard,” he said.
“Should the ALP policy be implemented there will be reduced demand to purchase rental properties due to the creation of primary and secondary markets, and this will cause new dwelling prices to decline in many regions. 
“The second owner won’t receive the same tax benefits of depreciation etc as the primary owner when they buy a property. They will not be able to claim negative gearing against their wages and the capital gains tax discount will be cut in half. Therefore, the vendor will have to drop the value of the property because the benefits to the buyer are lower, and it is therefore not as attractive to potential buyers.
“So, when a market is already weak, for example off-the-plan units in an over-supplied area, as we see in capital cities around the country, this will contribute further to the price reductions.”
He said an example of this was inner-city Brisbane where weakness in the market had led to lower valuations, rising defaults on settlements, major discounting, falling rents and ‘over-the-top’ incentives to get buyers across the line.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/22/Brisbane%20Inner%20City%20Units%20November.jpg" alt=""> 
Brisbane City, Fortitude Valley and South Brisbane were all named in the Top 10 of the RiskWise 2018 list of the <a href="https://www.riskwiseproperty.com.au/News/high_risk_alert">100 Worst Off-The-Plan Suburbs</a> in Australia, as were Zetland and Epping in Sydney and Southbank in Melbourne where oversupply of units is a huge issue. 
In South Australia, the highest risk area for units was Adelaide CBD (postcode 5000), where oversupply was extreme and, according to CoreLogic, had delivered -2.9% capital growth in the past 12 months. In Perth they delivered -6.5% capital growth. The Perth - Inner area has the highest rate of unit oversupply in Western Australia with 4362 units in the pipeline (a 11.1% increase to the current stock), while the Greater Perth area has 12,687 units in the pipeline which is a 6% increase to the current stock.
He said the widespread oversupply issue was universally acknowledged by banks which had ‘blacklists’ for postcodes suffering potential unit saturation. In addition, he said lenders were scrutinising loan applications much more vigorously and either required a much higher deposit as security or were turning down the application entirely.
“It must also be remembered that rental units and owner-occupier units are not fully substitute products. The dwelling types and needs of owner-occupiers are often greatly different from the dwelling types and needs of renters,” he said.
“Units that are used by owner-occupiers are larger than units that are typically used as rental properties and, more importantly, the price per square metre of rental properties is higher than the price per square metre of owner-occupied properties, especially in Sydney and Melbourne. This means that, overall, rental units in Sydney and Melbourne are significantly less affordable than units that are owner-occupied.
“All this added up suggests that if the proposed changes to negative gearing and capital gains tax take place it is likely to put off-the-plan units at their highest risk ever and this includes equity risk, cashflow risk and settlement risk.”
Peleg said unless there was phenomenal capital growth, the value of off-the-plan property in many regions was likely to be reduced and it would become significantly harder for investors to enjoy capital growth, at least in the foreseeable future. 
“And if you consider that many of the prices for off-the-plan units include a significant commission to the marketer, between 5-6% of the value of the property and sometimes even more, and with the current risks to settle the property … all of these things together make purchasing off-the-plan units in many regions in Australia extremely high risk,” he said.
</body></html>

Inner Brisbane off-the-plan units the riskiest of all property investments: RiskWise

<html><body>
When it comes to risk, off-the-plan units top the list for potential investment disasters, especially if changes to negative gearing and capital gains tax go ahead.
It’s a risk that’s compounded by a number of factors, says RiskWise Property Research CEO Doron Peleg, and includes equity risk, cashflow risk and settlement risk.
“The first, and most obvious, is the risk of oversupply which is something we’ve seen in inner-city Brisbane which has created weakness in the market leading to lower valuations, rising defaults on settlements, major discounting, falling rents and ridiculous incentives to get buyers across the line,” Mr Peleg said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/6/brisbane%20inner%20city%20unit%20market.jpg" alt="">
Brisbane City, Fortitude Valley and South Brisbane have all been named in the Top 10 of the RiskWise 2018 list of the 100 Worst Off-The-Plan Suburbs in Australia, as have other areas in Sydney (eg Zetland and Epping) and Melbourne (eg Southbank) where oversupply of units is a huge issue.
He said the widespread oversupply issue was universally acknowledged by banks which had ‘blacklists’ for postcodes suffering potential unit saturation. In addition, lenders are scrutinising loan applications much more vigorously and either require a much higher deposit as security or they may turn down the application entirely. “It must also be remembered that rental units and owner-occupier units are not fully substitute products. The dwelling types and needs of owner-occupiers are often greatly different from the dwelling types and needs of renters,” he said. “Units that are used by owner-occupiers are larger than units that are typically used as rental properties and, more importantly, the price per square metre of rental properties is higher than the price per square metre of owner-occupied properties, especially in Sydney and Melbourne. “This means that, overall, rental units in Sydney and Melbourne are significantly less affordable than units that are owner-occupied.” However, Mr Peleg said it was the potential changes to negative gearing and capital gains tax if Labor were to win the next Federal election, which was likely, that put off-the-plan units at their highest risk ever. He said should the ALP policy be implemented there would be reduced demand to purchase rental properties due to the creation of primary and secondary markets, and this would cause new dwelling prices to decline in many regions. “The transfer of the property effectively changes its status from the primary to the secondary market, from a taxation perspective, however, the same taxation benefits from a property in the primary market would not be available to a subsequent investor,” he said. “In other words, if you buy an off-the-plan unit, and there are no changes to negative gearing, when you sell the property the new investor will have the same tax benefits of depreciation etc as the original owner, and so the fair market value will remain similar to both the buyer and the seller, as the financial benefits from the property are the same. “However, if the changes go ahead, the new purchaser will not be able to claim negative gearing against their wages and the capital gains tax discount will be cut in half. Therefore, the vendor must drop the value of the property because the benefits to the buyers are lower, and it is therefore not as attractive to potential buyers.” Mr Peleg said unless there was phenomenal capital growth, the value of off-the-plan property in many regions was likely to be reduced and it would become significantly harder for investors to enjoy capital growth from many off-the-plan units, at least in the foreseeable future. “And if you consider that many of the prices for off-the-plan units include a significant commission to the marketer, between 5-6 per cent of the value of the property and sometimes even more, and with the current risks to settle the property … all of these things together make purchasing off-the-plan units in many regions in Australia extremely high,” he said.
</body></html>

Off the plan

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Off the plan

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News