An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Property investment

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GUEST OBSERVER
I am sure you have all read this week how the investment bankers and economists are predicting property will fall dramatically early in 2016. 
The Sydney Morning Herald reported Macquarie was looking at a 7.5% reduction from “peak to trough”. The Australian reports, Macquarie said in a note “Credit growth, auction clearance rates, house prices, settlement volumes and the dollar value of settlements are also showing signs of slowing, albeit from lofty levels”.  Credit Suisse goes a step further warning that property investment in Australia is “riskier than the equity market”, particularly in NSW. 
During Spring in times of property upswings we quite often read such predictions as with greater volume of stock (in Spring) buyers have more choice and as a consequence auction clearance rates dip a little. This is happening at the moment and the pundits mistakenly think this is the start of a property price downturn.
We all are aware the market has been in almost boom conditions for a couple of years and the rate of growth we have experienced during that time is not sustainable in the long-term, but I can see nothing to indicate a fall in prices.  A plateau perhaps….which would be a good thing. Maybe even call it a breather!
An example of what I mean was last night’s auction sale of 103 Paddington Street, Paddington which sold for $2,000,000, considerably above reserve and a price which delighted the owners.  During the final week of the campaign three potential buyers who had shown interest in this terrace bought something else…see what I mean…greater choice from more properties on the market. 
Why do I feel this way?
Experience tells me the key drivers of property are interest rates (affordability) and confidence. The ANZ-Roy Morgan Consumer Confidence Rating indicates confidence is higher in October than it was during Winter...another pointer to a healthy property market. The US Equity Market is on the up and so is Europe.  Building costs in Australia remain high and moving higher…this filters down to replacement cost and the basic value of home improvements.
I am looking forward to the rest of the Spring and with confidence to 2016….so should you!
 
Bob Guth is director and auctioneer, Bradfield Cleary and can be contacted <a href="https://bradfieldcleary.com.au/home" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Investment banks get it totally wrong: Bob Guth

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Australians can potentially make 8% to 10% net returns a year by investing in the US property market, according to International Property Source (IPS), which has just opened in Australia.
Key markets in the US are offering an investment opportunity and rental returns as it recovers from 2008/09 forecloses.
IPS director Elie Mougel said he has heard many stories of three bedroom houses in good suburbs that were once fetching between $AUD300,000 to $AUD400,000, are now in the sub-$AUD100,000 bracket. 
"Suburbs like Phoenix in Arizona have taken a huge hit in recent years, with some house values reduced down by over 70%," he said. 
"Buying real estate in the US is a relatively simple process which involves setting up of a Limited Liability Company and a US bank account without setting foot into the US to buy and receive monthly rents. 
"It costs around $55,000 to $95,000 to get started, which includes the set-up for the buying structure, the property itself (2-3 bedrooms and completely renovated in a good area of town), and settlement costs. IPS handles the rest with its in-house property management company, and the process takes about a month. Net returns of 8% to 10% a year."
Investment seminars will be held in Melbourne on Thursday October 15 at 6.30pm and Saturday October 17 at 2.00pm at the Sofitel Melbourne on Collins. For more information, <a href="https://www.australiaips.com.au%20" target="_blank">click here</a>. 
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jonathanchancellor-7SQnKwU6yx

Property investment in Arizona offers an easy 10% net return: International Property Source's Elie Mougel

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GUEST OBSERVER
Of course, I finished my <a href="/expert-insights/is-sydney-now-the-rotten-apple-for-investors-oasis-gavin-mcpherson">last article</a> with a poke at the overpriced markets of Sydney and Melbourne. Now for someone that calls Sydney ‘home’ 3-4 days per week and in South East Queensland the other 3-4, I may as well call my hand early. That is...I’d only invest in Sydney and Melbourne perpetually, if all things were even.
The problem however is that things aren’t even, and they never have been. So let’s explore those discrepancies.
So with the prerequisite that you should read my last article, allow me to switch from bear to bull and start with the ripe opportunities that sit north of the NSW border. And I’ll start with the counterpoint of my last article with the introduction that “the cure for low prices...IS low prices.”
I’d ask the reader to think about it this way...using Gold Coast as an example.
<ul>
<li>Gold Coast didsuffer from overdevelopment in 2007. Over 100 cranes in the sky were witnessed with as many as 14,500 apartments (approved in 2004-2006) advanced from concept to delivery.  Of course, many of these sold while the market was solid, but as history would demonstrate, as many as 3000-4000 new apartments (without buyers) were delivered to the market just when the market turned on the eve of the Global Financial Crisis. Some of these properties still traded, with disgruntled buyers settling on them at the risk of being sued. Many of them returned these to the market trying to recover their costs. They failed.  Others returned their contracts and lost their property deposits. All in all, the market was flooded with all sellers trying to head for the exit at the same time, not to mention the oversupply of rental property, tipping the Gold Coast into 4%+ territory, one of the weakest across Australia.</li>
<li>But while the above took all the headlines, think about the effect this had on construction. Pre GFC, the Gold Coast had a raft of over 100 cranes featured in the skyline to satisfy the appetite of developers. Full circle to 2011, once the already committed projects of the Hilton and Soul were constructed...a total of only one crane only graced the Gold Coast skyline.</li>
<li>Fast forward 4-5 years, seeing in record low interest rates for domestic buyers and a stellar exchange rate for overseas buyers, Gold Coast is craving for more dwellings. How would I know this? Do you think I just made this up? </li>
</ul>
It’s easy. The Gold Coast now has sub 1% vacancy rates (REIQ). In fact, while other figures show 1.8% across the whole of the coast, it’s well understood that the congestion does appear on in the Surfers/Broadbeach /Mermaid and Main Beach districts, putting further downward pressure on this figure. Vacancy rates are a symptom of a market that does not have enough property. It’s also the reason why I envelope this notion in the adage that “low prices IS the cure for low prices.”
Bottom line, all the extra property that had been on the market after the GFC has been bought. Whether it sold for high, low or firesale prices is irrelevant. That property is all gone. Sold. And most likely with long term owners who are braced for long term investment, not about to return it to the market tomorrow and realise only minor profits. 
<ul>
<li>With vacancy rates this low and the Southern markets of Sydney and Melbourne now reaching their zenith, one also has the value proposition that the Gold Coast presents to the foreign buyer. A quick check on the algorithm for the $AUD to Chinese RMB (now 4.60 to $1AUD), noting that five years ago the equation represented a 25% currency increase, with the RMB to $AUD at 6.12. If you thought Gold Coast property was cheap before, try it with a 25% discount!</li>
</ul>
I concede that a 25% currency discount is an almost unfair advantage, and it’s the reason why my advice to clients now is not to hesitate on purchasing in the Gold Coast. With vacancy rates so low, a simple $450k investment, realising up to $480/$500 per week rental is all possible, with the near term pressure to push the rental yields up even higher as the sea change effect also brings more residents to the Gold Coast. 
Again I ask, do you think I’m guessing about this [migration to the Coast] Sea Change effect? Think again. For those who thought that Gold Coast is an employment desert, I’d challenge that with facts. In 2014, the Coast provided a whopping 181,856 net jobs increase. A different data sample reveals similar outcomes with recent figures from the Australian Bureau of Statistics (ABS) pointing to 14,100 net jobs increase per month. The fact that in 2013 that figure was 19,662 should demonstrate that the trajectory is not just good...it’s gobsmacking. With a current population of 535,000 and projections of a population of 680,000 by 2021, (QLD Office of Economy and Statistical Research Population) there is a lot of room for rationing this growth and still achieving outstanding property prices in the near future.  These recent ABS figures put the Gold Coast at the top of Queensland’s employment economy.  
Of course, other regions are not immune to the same primary drivers that subscribe to this logic (the cure for low prices IS low prices). That brings Wollongong, the Hunter and certainly some other regional bastions like Cairns and Townsville. For me however, the clincher is certainly the extra ‘froth’ that gets created around Gold Coast by the strong support by overseas investment. That is not to say some of these other regions do not see the same benefit; they do. But in its brief but important history, the Gold Coast sits at the top of the queue for international investment. And with all signs pointing to more inward investment that out with the $AUD exchange rate, look for “the Goldie” to outstrip all its peers in spades!  
So with my investor hat on now and the old adage that ‘the trend is your friend’...this is one trend that, in my opinion, is not only predictable...but imminent!
Gavin McPherson is chief executive officer of Oasis Property Buyers Agency and author of "Value Investing in Property: What would Warren Buffet do if he was investing in property in Australia?" He can be contacted <a href="https://www.oasisproperty.com.au/oasis-buyers/oasis-property-buyers.php" target="_blank">here</a>.
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mick.cee-iDmgDDAmu8

The ripe apple for investors? Oasis' Gavin McPherson

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Demand for 1970's one bedders is original condition within Ballarat's inner ring is going well, according to Herron Todd White, who see affordability and rental demand for this style of apartment attracting sales of around $150,000 at a rental yield of 5%.
The three bedroom townhouse market, according to Herron Todd White's September Month in Review, has seen significant increases in the last five years with supply met by investors.
"This has seen the capital values for the properties hold steady and developers and agents are now reporting this demand is showing some signs of slowing. As such the next 12 months will reveal if an over supply issue is a possibility," the report noted.
"Off the plan purchases for villas and units have been steady in recent months with three developments of 10 to 20 townhouses each in progress within Brown Hill, Ballarat East and Sebastopol. The villa market has shown approximately a 5% to 10% increase in value over the past five years in the sub prime locations.
"This increase has largely been driven by investors looking for positively geared properties with tax depreciation benefits. Given the increase in supply prices should begin to stabilise. "
 
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1970's one bedders and townhouses the pick in Ballarat: Herron Todd White

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Only seven SIV applications have been submitted since the new rules were introduced on July 1, according to the Australian Financial Review.
The new Federal Government rules which require investors to put their money into riskier assets such as venture capital come as likely investors struggle to shift money following China's official central government move to tighten capital controls.
The federal government's relaunched Significant Investor Visa (SIV) provides fast-tracked residency for those investing at least $5 million into Australia.
The AFR noted China has previously tolerated significant capital outflows via "grey channels", but there has been tightened enforcement as the economy slows and fears over capital flight put downward pressure on the currency.
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SIV applicants slow to a trickle

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Has the baby been thrown out with the bathwater? Quite possibly.

It has been a week since Planning Minister Richard Wynne introduced <a href="/news/interim-central-melbourne-planning-controls-the-detail">significant and immediate changes</a> to central city planning that will inhibit the scope in which much of Southbank and Melbourne's CBD can be developed into the future.

In recent days, various sources have sought to analyse the changes applied to the Planning Scheme for the aforementioned areas. Alan Davies via <a href="http://blogs.crikey.com.au/theurbanist/2015/09/07/are-these-planning-changes-mostly-symbolic/">The Urbanist</a> has provided comment, Ratio Consultants have provided a <a href="http://www.ratio.com.au/changes-to-central-city-planning">concise summary</a> of changes implemented, yet perhaps the best indicator has come via Apartments.com.au's forum where the changes have garnered pages of discussion since their implementation.

Of the many forum posts on the topic, one factor has become abundantly clear: a week's discussion has led to contradiction and uncertainty when trying to interpret and notionally apply the new rules. And therein lies the blunder in how the new changes have been implemented.

I have yet to see one person, representative or peak body state that the changes applied to the Melbourne Planning Scheme are unnecessary. The Victorian Government on the face of it does indeed have the best of intentions in mind; essentially promoting quality residential development over poorly conceived, maximum yield-driven developments.

Perhaps the best summary of the main issue surrounding the changes was from the Urban Development Institute of Australia (UDIA):

<blockquote>
While the Institute will support the intentions of the Central City Planning Review, it has vigorously opposed the Minister’s action to introduce interim controls of this nature overnight, without any consultation with the urban development industry.

The merits of addressing issues such as amenity and preserving Melbourne’s liveability are very much supported by the urban development industry. However the blunt action by the Minister in introducing interim controls without warning has set the tone for this important and complex discussion.

Swift, uncanvassed action such as that taken overnight by the Planning Minister serves only one purpose – to undermine investor confidence, which can only lead to reduced activity.
<cite>Danni Addison, Victorian chief executive, UDIA</cite>
</blockquote>

This is where now the baby is in danger of disappearing down the gurgler entirely.

It is all well and good to implement changes to the Melbourne Planning Scheme, but where was the tact or transparency in the process? By going about it the way they have, the Andrews Government has left the door ajar to stymie investment in central Melbourne. The ambiguity now cast over the approvals process is tantamount to inviting trouble.

I would assert that the method these changes have been implemented may undermine investor confidence, specifically in the short to medium term. And of course I refer to the rivers of investment capital flowing from Asia into Melbourne. This investment and subsequent boom in construction in Melbourne's heart represents a hefty and buoyant portion of the Victorian economy at present, with billions of dollars in play.

If prospective investors (of which there are no shortage) perceive the changes and the heavy-handed manner in which they were implemented to be counter beneficial, they will simply shun Melbourne altogether. Investment capital in this sense relates to the foreign-backed developers and is liquid; it will find the path of least resistance. Whether the capital remains in Melbourne or whether we are shunned in favour of other Australian or international cities remains to be seen, but on the face of it the events of the last week certainly will not help the cause.

This potential to forsake an untold amount of investment in Melbourne would have surely been enough to prompt the current Victorian Government to approach changes to the Melbourne Planning Scheme in a more thoughtful, encompassing manner… apparently not.

Lead image courtesy fastcodesign.com
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silvermb

Comment: ramifications of the new Melbourne Planning Scheme changes

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Australian Government should formulate a national housing strategy that sets clear directions for Australia’s housing sector, is the recommendation of the National Seniors Australia.
In the submission to the House of Representatives Standing Committee on Economics, National Seniors also recommended the examination of all types of housing and issues associated with access, adequacy, affordability and security by utilising findings from the Inquiry on Homeownership, the Inquiry on Affordable Housing, the Federation Review and the Tax Review. 
"Outright homeownership has been falling for people aged 55 and over (39.7% in 2001 to 32.1% in 2011)meaning that a greater number of older Australians are either paying off mortgages during retirement or moving from homeowner-occupier into alternative forms of accommodation.
"Other reasons for a fall in homeownership amongst older Australians include loss of paid employment and significant life events such as divorce or losing a partner. 
"Research suggests that insecurity within the private rental market amongst older Australians has led to a shift to public housing.The Australian Housing and Urban Research Institute (AHURI) has found that older public housing households are expected to increase from 87,940 in 2001 to 109,560 in 2016, an increase of 24%.
"In the 85+ age group these are expected to increase by 155%. 
"Furthermore, by 2026 the number of lower-income people aged 65 and over who are living in rental households (as homeownership falls) are projected to far exceed the supply capacity of the social housing system. 
"Census data from 2006 to 2011 shows a steady increase in the number of renters aged 55 and over in the private market."
National Seniors Australia recommends that the Australian Government, in collaboration with state and territory governments, examine tenancy regulations, rights and advice services.
The aim would be to deliver security and support for long-term renters; recognise that renting in the private market is a significant form of tenure for many Australians; and increase the attractiveness of this form of tenure for Australia’s long term housing needs. 
"Older renters experience significant anxiety linked to their security of rental tenure and many experience housing stress.Such housing stress is magnified due to rent increasing well above CPI and the insufficiency of Commonwealth Rent Assistance.
"Renters face a number of disadvantages including forced moves which greatly contribute to instability. The frequency of moving between owners and renters in Australia is the highest in the OECD.
"The lack of long term (beyond 6-12 months) leases available to Australian renters increases instability.  
"Limiting the ability of property investors to terminate leases for ‘any reason with notice’ to a list of prescribed criteria, allowing pet ownership and minor alterations to the rental property would greatly enhance the lifestyle available to renters. 
"Improving the stability and security of tenure for a renter would provide them with the ability to receive similar non-financial benefits available to home owners.
"Creating greater equity in the Australian housing market would reduce the desire to become a homeowner, subsequently reducing the demand which is currently driving high housing prices in the market. 
"National Seniors recommends that the government investigate policies that will address barriers to downsizing (or 'rightsizing') for older Australians, for example, a national ‘rightsizing’ program. 
"Older Australians face barriers to relocating including: the inability to find value for money, stamp duty, moving costs, lack of suitable housing in familiar surroundings with easy access to required amenities, and impacts of selling the home on Age Pension eligibility. 
"These barriers also decrease capacity for older Australians to access equity in their home to assist with living costs during retirement.  
"Proceeds from the sale of the family home continue to remain exempt from the Age Pension assets test for up to 12 months, as long as the funds are intended to buy another home.  
"However, any interest earned on sale proceeds is counted under the income test, and, if a cheaper home is purchased, any surplus cash is included in the Age Pension asset test.  
"Concerns regarding the proceeds of the sale of the home being subject to the Age Pension assets test discourage 20% of all seniors, and 30% of Age Pensioners from selling the home.
"In 2013 the then Labor government announced the Supporting Senior Australians—housing help for seniors pilot,to address some of the barriers to downsizing that older Australians face. 
"The pilot exempted a portion of sale proceeds from the Age Pension asset test. However, it also applied restrictive conditions, including the requirement that a homeowner had to own their home for more than 25 years and quarantining the proceeds for ten years. 
"As an alternative National Seniors has called for the implementation of a ‘Rightsizing’ program that exempts up to $150,000 in proceeds from the sale of the home from the Age Pension income or asset test.  
"Excess sale funds could then go towards critical services, such as health costs, significantly reducing the burden on government-supported health systems. 
"The recent changes to the Age Pension asset test (legislated in June 2015) will provide an even greater deterrent for seniors to right-size. Reconsideration should be given to a program that allows seniors to right-size without the threat of future reductions to their Age Pension payments."
National Seniors recommends that the states and territories provide concessional stamp duty to older Australians to encourage downsizing and maintenance of homeowner-occupier tenure.  
"A reduction in stamp duty would encourage older people to right-size their homes and improve quality of life, while also providing many younger Australians access to suitable family homes which would not otherwise be available."
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Stamp duty reduction may drive senior property re-investment

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Abacus Property Group has sold its Doncaster development site to the Chinese group Jinshan Investments for $22.6 million. 
The site at <a href="https://www.realcommercial.com.au/property-land+development-vic-doncaster-501604049" target="_blank">682-684 and 686 Doncaster Road</a> is 300 metres from Westfield Doncaster.
The 4245-square-metre parcel of land is approved for 296 apartments.
It has a permit for an 11-storey building and 519 sq m of retail space.
Jinshan is best known for its controversial acquisition of Melbourne's Palace Theatre, formerly the Metro Nightclub, with plans of turning it into a Starwood W Hotel. 
The listed investor Abacus Property Group, with its joint venture partner Crema Group, expected $20 million-plus offers, the Australian Financial Review suggested last month for the residential development site perched on Doncaster Hill, in the heart of Melbourne's leafy eastern suburban belt.
Their permit allows for an 11-level building, designed by Peddle Thorp Architects.
The syndicate paid $11.55 million in April last year, then $5,225,000 in March this year for next door.
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Doncaster development site sold by Abacus to Chinese buyers

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The top five worst residential real estate investment ideas include cruise ship suites, retirement villages, property in mining towns, lifestyle properties and overpriced off the plan apartment developments, according to SQM Research.
SQM Research managing director Louis Christopher said the idea of investing on a cruise ship has the downside of not buying on any land at all and boats tend to depreciate rather quickly.
He says he has not seen a single retirement village investment make money for the retiree and likens investing in a retirement village to sucking the financial blood out of poor retirees in their last years of life.
"It is possible to earn a cash-flow from holiday makers (on a cruise ship) but from what I can see, that type of cash flow return needs to be in excess of 10% net just to take into account this real depreciation. And I am not aware of any cruise ship suite offering that type of net rental return," he said.
"The problem with retirement village investment starts with the fact that in most of these properties one is buying into a leasehold arrangement. That’s right, you don’t actually “own” the underlying land.  Often the manager behind these estates has complete control over costs and worse, resales. Often one has to resell back to the manager or at least sell via the manager for which they of course take a generous fee.
"Unless you have trucks of money to spend and just want to be around like minded seniors, do not invest in these 'properties'. You are far, far better off living it up in a hotel!"
Golf course estates, semi-rural lifestyle estates, holiday homes, he said, are aimed towards 'lifestyle,' rather than 'reliable real estate investment', with many overpriced with body corporate fees and other management services fees to match.
Mining town housing markets are the classic one trick pony town markets and completely reliant on one single economic base that may or may not provide stable returns.
Buying overpriced off the plan apartments with top of the line fixtures is problematic as you can pay a premium to enter the market. He said there is a good reason  why the ATO allows for a 2.5% depreciation benefit to these types of properties
"And that’s because they can depreciate," he said. 
Top five worst property investment ideas
1. Cruise ship suites
2. Retirement villages
3. Mining towns
4. Lifestyle properties
5. Overpriced off-the-plan apartment developments
 
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Top five worst property investment ideas: SQM Research

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-5860701746523950073" class="post-body entry-content">
<div>When it comes to property investment I generally favour the largest capital city housing markets, which in Australia tend to have more diversified economies, the greatest population and employment growth, tighter supply, and less prime location land available for release. </div>
<div> </div>
<div>One of the regional success stories of the past half decade has been a town - or a "city" as you would say in Australia - that I went to visit this weekend.</div>
<div> </div>
<div>With a population of around 162,000 it is the 16th largest city in Australia, and the largest inland city after the nation's capital, Canberra...</div>
<div> </div>
<div>
<div>The city I am referring to, of course, is Toowoomba in Queensland, to the west of Brisbane.</div>
<div> Queensland is the one state in Australia which has a number of sizeable regional cities, and there are four others that are larger again than Toowoomba: Gold Coast, Sunshine Coast, Townsville, and arguably Cairns (depending upon where you draw the boundary). </div>
<div> </div>
<div class="separator">The <a href="https://petewargent.blogspot.com.au/2014/07/x" target="_blank">Grattan Institute</a> found in a 2014 study that Australia's capital cities have become vital to economic activity, driving most of the economy in every state .</div>
<div class="separator"> </div>
<div class="separator">For regional centres, Grattan found that it is their proximity to the CBD which largely drives their fortunes and thus their respective rates of economic growth. </div>
<div class="separator"> </div>
<div class="separator">According to Grattan's research, regional centres stationed less than 150km from the CBD are growing at a considerably faster pace than those located further away.</div>
<div> </div>
<div>This in turn suggests that the best placed regional centres over the long term might include cities such as Toowoomba which is positioned approximately 125km from Brisbane. </div>
<div> </div>
<div>Other centres which sit close to their respective capitals include Geelong (around 75km from Melbourne), Newcastle &amp; the Hunter (Newcastle is located approximately 160km from Sydney), and Wollongong (85km to the south of Sydney). </div>
<div> The end of the mining construction boom will lead to desperate times for some regional centres, but the unemployment rate in Toowoomba has remained relatively low thanks to its diversified economy, which includes defence, agriculture, food processing, energy resources, retail and construction.</div>
<div> </div>
<div>There are some ongoing wages cuts disputes happening in the region, but overally the economy has held up relatively well. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
</div>
</div>
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