<p>Brisbane-based <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co Developments</a> has officially launched its $250million COMO apartment development in Varsity Lakes, while simultaneously commencing construction.&nbsp;</p>

<p>Building work is now underway at COMO following the appointment of <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a> as contractor to deliver the boutique development which will rise on a 2857 sqm site overlooking Lake Orr at 22 Lake Street.</p>

<p>When completed, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels located in the heart of Varsity Lakes.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363515]</p>

<p>The project, which will sit alongside Bond University, will deliver a diverse array of apartment designs comprising one-, two- and three-bedroom residences that have already attracted interest from local and interstate investors as well as an array of owner occupiers looking to gain a foothold in the precinct.</p>

<p>Red &amp; Co, which has largely focused on the Brisbane market in recent years where it has delivered more than 500 apartments and townhouses across 26 projects, has designed COMO to combine tranquil, lakeside living with the vibrant urban convenience of the vibrant Varsity Lakes village.</p>

<p>“We’re thrilled to announce a start to construction of COMO in conjunction with the official launch of the project, our first for the Gold Coast,” said Red &amp; Co Director and Co-Founder David Laverty.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363509]</p>

<p>“COMO is superbly positioned to capture the essence of the Varsity Lakes village lifestyle and its thriving café and dining precinct, while delivering a much-needed diverse supply of premium residences for the local market.</p>

<p>“Pre-launch inquiries have been strong among both local and interstate investors and owner-occupiers, including downsizers and upgraders who appreciate the value proposition that COMO represents.”</p>

<p>Prices at COMO start from $1,000,050.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363511]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the COMO development incorporates an extensive range of amenities for residents including a 25-metre rooftop lap pool, sundeck, barbecue and dining areas, as well as multiple rooftop pickleball and paddleball courts, a wellness and activity centre, gym, sauna, plunge baths and landscaped gardens.</p>

<p>“COMO presents a rare opportunity to secure a stylish, lifestyle-focused home in one of the Gold Coast’s most sought-after neighbourhoods,” added Laverty.</p>

<p>“The rooftop will be the epicentre of fun for residents with an array of amenities for residents that are quite unique for a boutique project such as this, all while offering spectacular vistas across the Gold Coast as far north as Southport and south to Burleigh.”</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363514]</p>

<p>&nbsp;</p>

<p>Red &amp; Co has chosen the Varsity Lakes site for its proximity to top-tier schools, major shopping hubs, such as Robina Town Centre and its CBD offering, as well as key Gold Coast transport links, including Varsity Lakes Train Station.</p>

<p>COMO will be located just a short walk to shops, cafes and restaurants in Varsity Lakes and just a 10-minute drive to the Burleigh Heads beachfront.</p>

<p>With construction currently underway, Red &amp; Co anticipates COMO will be completed in 2028.</p>

<p>[smartcode_project_cta:default project_id=135546]</p>


Joel Robinson

Red & Co to launch debut Gold Coast development Como Varsity Lakes as construction commences

<p>Longstanding Gold Coast developer Raptis has acquired a prime development site on Surf Parade for its next Broadbeach apartment project.</p>

<p>Progressing towards completion of <a href="https://www.apartments.com.au/new-apartments/the-sterling-broadbeach-6-8-george-avenue-broadbeach-qld-4218">The Sterling Broadbeach</a>, 90 apartments on nearby George Avenue, <a href="https://www.apartments.com.au/developers/raptis">Raptis</a>, led by second-generation family man Evan Raptis, has picked up a block on the corner of Surf Parade and First Avenue.</p>

<p>The site had been earmarked for a luxury apartment project with 33 full-floor apartments across a 37-storey tower. Raptis will go back to the drawing board and create a building more appropriate for the site. The development application will be lodged later this month.</p>

<p>Evan Raptis told Apartments.com.au the site ticks all the boxes.</p>

<p>"Broadbeach is a suburb we've developed several buildings over the years. Surf Parade ticks all the boxes for the type of apartment development we want to deliver."</p>

<p>Raptis had several pre-lodgement meetings with council to ensure they are aligned in the development.</p>

<p><img alt="Raptis" data-entity-type="file" data-entity-uuid="f0d58573-07a4-47a8-9f5e-fbf35fb03dc3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-05%20at%204.58.23%E2%80%AFPM.png?VersionId=iczZEd_4_o4UL0PHMPJGfy_q3tv96J5i" /></p>

<p>Surf Parade has emerged in recent years as one of the most popular streets in Broadbeach for development.</p>

<p>South East Queensland developer Mosaic Property Group kicked it off with Marella by Mosaic. Bassar Group sold out Infinity on the street, while for its&nbsp;first Gold Coast development, Polycell grabbed a Surf Parade site for <a href="https://www.apartments.com.au/new-apartments/the-rochester-broadbeach-143-surf-parade-broadbeach-qld-4218">The Rochester</a>, which is nearly sold out.</p>

<p>Melbourne-based developer Hirsch &amp; Faigen recently launched its fourth Gold Coast project on the exclusive strip. The Eveleigh Broadbeach will have 100 apartments across a 31-storey building designed by Rothelowman.</p>

<p>GV Property Group site development specialists Antonio Mercuri and Luke Reaby, who both amalgamate sites and sell shovel-ready sites to developers up and down the Gold Coast, sold Surf Parade to Raptis.</p>


Raptis secures prime Surf Parade site for next Broadbeach apartment development

<p>Less than two years after breaking ground, Gardner Vaughan Group is celebrating the topping out of Bask, its second development in the exclusive coastal enclave of Bokarina on Queensland’s Sunshine Coast.&nbsp;</p>

<p>Located only minutes from the beachfront, the two seven-storey luxury apartment towers, known individually as Mydas and Caretta, offer a selection of one-to-four-bedroom residences with views of Lake Kawana, the Glasshouse Mountains, and Bokarina Beach.&nbsp;</p>

<p>[smartcode_project:default project_id=141609 project_image_fid=333359]</p>

<p>Gardner Vaughan Group Commercial Director Sam Gardner said the milestone marks the home stretch for construction, with first residents expected to be able to move in from Spring 2026.&nbsp;</p>

<p>“This is a significant milestone in bringing this development to life and represents our confidence in this region’s long-term growth and appeal,” Gardner said.&nbsp;</p>

<p>“With 85 per cent of apartments already sold, buyers are joining an established, coastal village that offers the very best of the Sunshine Coast – seasonally patrolled surf beaches, renowned restaurants, and links to established health and retail.&nbsp;</p>

<p>“The final collection of three- and four- bedroom apartments range in size from 127sqm to 300sqm, each with two or three secure car parks and storage, and with construction fast approaching completion we don’t expect the last few apartments to remain on the market for long.”&nbsp;</p>

<p>[smartcode_project:default project_id=141609 project_image_fid=333362]</p>

<p>Local restaurateur Luke Stringer, who co-owns and manages the award-winning Bocca Italian and Playa Mexican restaurants in Bokarina, has lived in the beachside suburb for 18 months and worked there for more than three years, and said the beachside suburb was thriving.&nbsp;</p>

<p>“It’s fair to say Bokarina is finally stepping into the sun and there’s a lot to love about the place,"&nbsp;Stringer said.</p>

<p>"It’s such a great community, where you see the same smiling faces every morning and everything’s within easy reach – it’s the perfect hub in the middle of the Sunshine Coast.</p>

<p>“When we first opened Bocca Italian, we were the lone restaurant, but it’s been amazing to see how the area has grown. The more venues that open, the busier it gets for everyone. When Playa Mexican opened its first Saturday night, Bocca had a record night and Playa was packed too, which blew us away how everyone is thriving.&nbsp;</p>

<p>“There’s a great energy around the place now, and people are really embracing Bokarina as a food and lifestyle destination.”&nbsp;</p>

<p>[smartcode_project:default project_id=141609 project_image_fid=363368]</p>

<p>Stringer joined other buyers at Bask Bokarina and the Gardner Vaughan Group team to celebrate the topping out at a special event in February.&nbsp;</p>

<p>Located in Kawana Waters, midway between Caloundra and Maroochydore, Bokarina locals enjoy scenic walking paths around Lake Kawana, playgrounds, beachfront boardwalk and parklands, alongside all the convenience of a masterplanned beachside community.&nbsp;</p>

<p>“You see people jogging or swimming in the morning, then grabbing coffee at the cafes, people are really embracing the area and all this growth is bringing more people to Bokarina,” Stringer added.&nbsp;</p>

<p>To take advantage of the vistas, each of the 135 apartments at Bask is designed with full size windows and high ceilings that provide an abundance of natural light.&nbsp;</p>

<p>Prices for the remaining three-bedroom apartments start at $1,599,000 and four-bedroom apartments start at $3,149,000.&nbsp;</p>

<p>[smartcode_project:default project_id=141609 project_image_fid=363369]</p>

<p>The mixed-use development also features ground-level retail space for cafés, dining options and boutiques, including the soon-to-be-opened ‘Corner Shop’, by the team behind Noosa’s well known ‘Organika’.</p>

<p>Sam Gardner said Gardner Vaughan Group’s 37-year history building and developing across South East Queensland has contributed to the success of its second development in Bokarina, which follows the recently completed Zinc Apartments.&nbsp;</p>

<p>“We care how people live and this is reflected in the way we approach the design and delivery of every development,” he said. “Furthermore, as a builder-developer we have full control over the construction program and our 100 per cent completion rate is something people can draw confidence from.”&nbsp;</p>

<p>Founded by civil engineers Guy Gardner and Darryl Vaughan in 1989, the family-owned business has evolved from a consultancy firm to an award-winning builder-developer, with projects across the Sunshine Coast, Moreton Bay, Brisbane and the Gold Coast.</p>

<p>[smartcode_project_cta:default project_id=141609]</p>


Gardner Vaughan Group tops out Bask Bokarina apartments

<p>Prolific Melbourne developer <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> has launched its fourth new Gold Coast development in as many years.</p>

<p><a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a>, led by Daniel Faigen and backed by Eddie Hirsch, co-founder of United Petroleum, has unveiled The Eveleigh, on a prime 1,100 sqm site at 7-9 Surf Parade in the heart of Broadbeach.</p>

<p><a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a> will deliver 100 apartments across 31 levels, making it the company’s largest Gold Coast project to date. It builds on the success of its three earlier developments, <a href="https://www.apartments.com.au/buildings/hemingway-1267-1273-gold-coast-highway-palm-beach">The Hemingway in Palm Beach</a> and <a href="https://www.apartments.com.au/buildings/emerson-kirra-100-musgrave-street-coolangatta">The Emerson at Kirra</a>, both completed, and <a href="https://www.apartments.com.au/new-apartments/yves-mermaid-beach-7-9-mermaid-avenue-mermaid-beach">Yves Mermaid Beach</a>, which is nearing completion.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360966]</p>

<p>The announcement of The Eveleigh affirms the company’s sustained confidence in the Gold Coast market which continues to remain undersupplied. It also increases the value of Hirsch &amp; Fa​igen’s Gold Coast development portfolio to more than $700 million since the company first entered the market in 2021 with Hemingway.</p>

<p>The company has enlisted its preferred architecture firm Rothelowman to design The Eveleigh, which will offer a thoughtfully curated lifestyle, including a substantial wellness precinct, communal recreation areas, children’s play spaces, work-from-home facilities, and shared lounge and dining areas.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360965]</p>

<p>Designed for the prime market demographic of downsizers and interstate lifestyle investors in mind, The Eveleigh has been crafted to offer an increasingly rare blend of affordable luxury in a tightly held market. Uniquely positioned in the heart of the Gold Coast’s most sought-after lifestyle suburb of Broadbeach, the project will also boast uninterrupted beach and hinterland views.</p>

<p>The Surf Parade site is just a short walk to the bustling Broadbeach dining and retail precinct, Pacific Fair, The Star Gold Coast and convention centre, and an easy stroll to Kurrawa Beach and the recreational amenity of Pratten Park on the Broadbeach foreshore.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360975]</p>

<p>“We’re excited to be proceeding with our fourth project on the Gold Coast in what is certain to become the new luxury precinct in Broadbeach,” says Anthony Bueti, the CFO of Hirsch &amp;a​mp; Faigen and a shareholder of the group.</p>

<p>“With the likes of Mosa​ic and Abedian &amp;a​mp; Co also launching quality projects in the area, the transformation will cement Broadbeach as the premier lifestyle and amenity suburb on the Gold Coast.</p>

<p>"After four years in the Gold Coast market, and with three successful projects completed, The Eveleigh is the product of everything we have learned to love about the Gold Coast and it will be an incredible addition to our growing portfolio in one of the most vibrant property markets in the country. We continue to remain very confident in the high-end Gold Coast property market.”</p>

<p>Urban Activation Director Matt George is handling sales for The Eveleigh, having sold out The Emerson, The Hemingway, and Yves, all before construction was completed.</p>

<p>Melbourne builder MAXCON has already commenced construction on The Eveleigh. They are forecasting a mid-2028 completion.</p>

<p>[smartcode_project_cta:default project_id=149670]</p>


Hirsch & Faigen unveils The Eveleigh in Broadbeach

<p data-end="303" data-start="0">Two years after securing development approval for the final stage of its award-winning Thornton Precinct on the doorstep of Penrith Station, Urban Property Group is set to launch <a href="https://www.apartments.com.au/new-apartments/mayfair-on-penrith-172-lord-sheffield-circuit-penrith-nsw-2750">Mayfair on Penrith</a>, around 400 apartments designed to reflect two of Sydney’s most iconic structures.</p>

<p data-end="556" data-start="305">The builder-developer has continued refining the design plans for the two-building development on a significant 8,280 sqm site on Sheffield Circuit, recognising the importance of the prime parcel as one of the closest developable sites to the station.</p>

<p data-end="926" data-start="558">UPG enlisted architecture firm SJB to design the project. The team said they drew inspiration from both the General Post Office in Martin Place and East Circular Quay to help shape the design. The two-level colonnade, in particular, reflects the famous GPO building, which dates back to the 1860s.</p>

<p data-end="998" data-start="928">[smartcode_project:default project_id=136726 project_image_fid=362014]</p>

<p data-end="1361" data-start="1000">There will be one-, two-, and three-bedroom apartments on offer, with interiors by Cox Architecture. Residences will sit above a retail podium featuring hospitality and lifestyle operators such as One Playground and Volcano’s Steakhouse, contributing to an activated ground plane within the broader Thornton precinct.</p>

<p data-end="1787" data-start="1363">A communal rooftop with a pool and views towards the Blue Mountains will provide shared open space for residents. The development is positioned between Ron Mulock Oval and Westfield Penrith, with the Nepean River and Great River Walk also nearby, placing daily amenity and green space within walking distance.</p>

<p data-end="1859" data-start="1789">&nbsp;</p>

<p data-end="1859" data-start="1789">[smartcode_project:default project_id=136726 project_image_fid=362015]</p>

<p data-end="2229" data-start="1861">Mayfair is being delivered by Urban Property Group, a family-owned developer and builder with nearly 40 years’ experience across Sydney. The project will be the first in Penrith to be offered with Resilience Insurance’s 10-year Latent Defects Insurance (LDI) policy, which Urban Property Group has adopted across a number of its recent developments. The developer also has a 4.5-star iCIRT rating, one of the best ratings in market providing further confidence to buyers.</p>

<p data-end="2389" data-start="2231">Urban Property Group CEO Patrick Elias said providing additional assurance to off-the-plan buyers has become increasingly important.</p>

<p data-end="2510" data-start="2391">“Anything we can do to give confidence in our product is a plus,” Elias told Apartments.com.au.</p>

<p data-end="2750" data-start="2512">“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. They’re making their single large investment, which is their home, and providing confidence is something that we feel is paramount.”</p>

<p data-end="2822" data-start="2752">[smartcode_project:default project_id=136726 project_image_fid=362020]</p>

<p data-end="3016" data-start="2824">The LDI policy provides a 10-year warranty covering structural defects, with independent inspections carried out during construction and protection for owners if defects arise post-completion.</p>

<p data-end="3178" data-start="3018">Mayfair represents Urban Property Group’s sixth and final development within Thornton, consolidating the masterplanned precinct immediately east of the station.</p>

<p data-end="3333" data-start="3180">The developer, which builds its own projects, has already commenced construction. SRM Residential is handling the sales campaign.</p>

<p data-end="3384" data-is-last-node="" data-is-only-node="" data-start="3335">[smartcode_project_cta:default project_id=136726]</p>


Urban Property Group to close the curtain on award-winning Thornton precinct with Mayfair on Penrith release

rental properties

<html><body>
<div>
<em>SQM Research</em>'s released its latest news and views on vacancy rates and asking rents in Australia - with capital city vacancy rates nationally ticking down from 2.4 per cent to 2.3 per cent in August.</div>
<div> </div>
<div>SQM found that vacancy rates have increased strongly in Darwin (+2.0 per cent to 3.5 per cent) and Perth (+1.1 per cent to 3.7 per cent) over the past year. </div>
<div> </div>
<div>However, SQM also found that vacancy rates ticked down slightly across most capital cities in August. </div>
<div> </div>
<div>Given the strength of the dwelling supply response one would be forgiven for thinking that vacancy rates might have increased in Sydney and Melbourne over the past year.</div>
<div> </div>
<div>Yet this has not played out in either case, with city-wide vacancy rates declining to just 1.7 per cent in Sydney and 2.2 per cent in Melbourne respectively (from 2.6 per cent one year ago in the case of Melbourne).</div>
<div> </div>
<div><a href="/images/2015/09/16/SQM.jpg" target="_blank">Click to enlarge </a></div>
<div><img src="/images/2015/09/16/SQM.jpg" alt=""></div>
<div> </div>
<div>
<div>SQM's data showed that while rents in the largest capitals had increased ahead of the headline rate of inflation over the past year, asking rents for houses in Darwin have crashed by -21.3 per cent, while asking rents for houses in Perth were also down by -8.1 per cent.</div>
<div>
<br>Asking rents for houses were up strongly in Hobart (+6.7 per cent) as the market tightens, with vacancy rates in the Tasmanian capital now at just 1.1 per cent. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Demographics</span></strong></div>
<div> </div>
<div>Despite very strong levels of approvals and construction, vacancy rates have actually decreased in Sydney and Melbourne over the past year.</div>
<div> </div>
<div>How so? One of the clues might be found in the ABS Population by Age &amp; Sex data which I analysed recently. </div>
<br><div>And that is that population growth has become increasingly focussed on the inner and middle ring suburbs of the largest capital cities, both cause and effect of the natrure of the supply response through this cycle, as well as emerging employment trends. </div>
<br><span>For example, see the headline 2009-2014 data for Greater </span>Melbourne<span>...</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/16/Pop1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>...Greater </span>Sydney<span>...</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/16/Pop2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>...and, to a somewhat lesser extent, Greater </span>Brisbane<span>.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/16/Pop3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>There is, however, still a high volume of apartment approvals in the pipeline in all three of largest capitals.</div>
<br><div>As the above charts show over the long run the population growth to absorb the new supply has been evident, while much of the new high rise stock isn't that appealing to homebuyers in any case. </div>
<div> </div>
<div>Meanwhile, driven by a Sydney economic boom the New South Wales economy has added a thumping +118,800 jobs over the past 12 months.</div>
<div> </div>
<div>It should therefore be little surprise that interstate migration away from the Premier State had recently declined to its lowest level on record. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, not much sign of rising vacancy rates in the two largest capitals in this release, but SQM's Louis Christopher does see vacancies rising over the year ahead.</div>
<div>
<br>And I agree, With the strength of the dwelling construction cycle underway this must surely be the case.</div>
<div> </div>
<div>On a related note, dwelling construction surprisingly detracted from GDP growth in the second quarter, which would appear to be an anomalous result given the veritable forest of cranes on the city skylines.</div>
<div> </div>
<div>While I'm not in the business of issuing flash forecasts for GDP - a fool's errand if ever there was one - it wouldn't be a surprise to me to see dwelling construction and a positive reversal in net exports (and possibly, inventories) leading to a +0.5 per cent result for Q3, before quarterly growth of +0.7 per cent returning for the next few quarters thereafter. </div>
<div> </div>
<div>That said, whether or not household consumption and public/government investment can continue to produce the positive contributions that they did in Q2 is another question.</div>
<div> </div>
<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Vacancy rates tighten a little: Pete Wargent

<html><body>
<p>Based on the CoreLogic May monthly rental review released today, while rents increased slightly by 0.1 percent in April, overall, capital city rental rates edged lower, falling 0.2percent over the past 12 months.</p>
<p><span style="line-height: 1.3em;">Rental rates are currently $490/week for houses and $467/week for units across combined capital cities;</span></p>
<p><span style="line-height: 1.3em;">Five of the eight capital cities saw a modest rise in rents over the past twelve months, including Sydney (1.4 percent), Melbourne (1.7 percent), Adelaide (0.5 percent), Hobart (1.1 percent) and Canberra (2.5 percent); </span></p>
<p><span style="line-height: 1.3em;">Perth (-8.9 percent) and Darwin (-12.6 percent) experienced large drops in rents &amp; have collectively pulled the combined capital average lower; </span></p>
<p><span style="line-height: 1.3em;">Brisbane rents dropped by -0.6 percent.</span></p>
<div>
<p><a href="/images/2016/05/11/2016-05-09--monthly-report-report.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/11/2016-05-09--monthly-report-report.jpg" alt=""></p>
<br><p>We anticipate that the weakness in the rental market will persist over the year and rents will continue to fall over the coming months. The annual change in rental rates continues to be at its slowest pace since before 1996.</p>
<p>At the same time last year, rental rates increased by 1.7 percent which indicates a sharp slowdown in rental growth over the past year.</p>
<p>Factors contributing to a slowing in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth - all of which have impacted on demand for rental accommodation.</p>
<p>With dwelling approvals at recent record highs and construction activity set to peak over the next 24 months, accompanied by many new properties still to settle, we anticipate that the weak rental market conditions will persist with rental growth continuing to slow and, or, fall in most capital cities.</p>
<p>Based on current market conditions, landlords won’t be in a position to lift rental rates and may actually need to reduce rents in order to keep their tenants. We see renters as holding a stronger negotiation position and where they now have the potential to upgrade into higher grades of accommodation for a similar, or lower rents.</p>
<p>Canberra is the only capital city where the annual rental change is currently stronger than it was a year ago. Mr Kusher said this highlights the weakness in rental market conditions is being felt across all other capital city markets.</p>
<p>With rental rates increasing in some cities in April, rates in Sydney, Adelaide and Hobart are at record highs. In all remaining cities, rental rates are now below their highs with the declines recorded respectively in: -0.1 percent in Melbourne, -0.8 percent in Brisbane, -13.7 percent in Perth, -17.3 percent in Darwin and -5.4 percent in Canberra.</p>
<p>The results show that as rental changes outpace home value changes, gross rental yields have trended lower and have hit record lows of 3.3 percent for houses and 4.2 percent for units.</p>
<p>In our two largest capital cities, we’ve seen rental yields move to record lows of 3.1 percent for houses and 4.0 percent for units in Sydney and in Melbourne, rental yields are at a record low 2.9 percent for houses and 4.0 percent for units.</p>
<p>With home values continuing to grow and rental markets expected to soften further, don’t be surprised if we see a further compression of gross rental yields over the coming months.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
</div>
</body></html>

ckusher-ujnxiKuFQs

Weekly rents have continued to fall over the past year: Cameron Kusher

<html><body>
<p>With recent record high levels of new housing construction and investor mortgage activity, the supply of housing stock available for rent is climbing and is expected to continue to increase.</p>
<p>Australia has a growing population and the people moving to Australia need to be housed somewhere.  </p>
<p>Over recent years the uplift in population growth has not been met with a commensurate rise in property sales. Rental advertisement counts suggest that the population growth is increasingly being housed via investment housing (rental accommodation) which aligns with the lift in investor housing finance commitments over recent years.</p>
<p>Over the 12 months to January 2017, there were 362,708 houses advertised for rent and 287,233 units advertised for rent nationally. </p>
<p>The number of rental advertisements over the past year was 8.7 percent higher for houses and 9.3 percent higher for units.  The rental market is currently seeing historic low rates of rental growth and with the amount of rental accommodation ramping up it is easy to see why.  Keep in mind this data is only those properties advertised for rent and not every rental property will be advertised for rent each year.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/2017-03-13--image1.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image1.png" width="571" height="187"></p>
<p>The two tables within this report highlight the council areas that have seen the greatest increases and decreases in rental advertisements over the past year.  Note that we have only included council areas that have had at least 1,000 rental advertisements over the 12 months to January 2017.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/2017-03-13--image2.png" target="_blank">Click to enlarge</a></p>
<p> <img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image2.png" width="561" height="508"></p>
<p>Western Australia council areas feature heavily on the list of regions that have seen the greatest increase in rental advertisements over the year, many of which are located in Perth.  Investor activity has been sluggish in WA so this may indicate that as the economy has weakened and people have migrated away from WA, perhaps home owners are looking to rent out their home rather than selling into weak market conditions. </p>
<p>A number of NSW regions are also featured on the list and this is probably more reflective of the ramping-up of housing supply purchased by investors.</p>
<p>Of those regions with at least 1,000 rental advertisements over the past year, only 17 council areas have actually seen a decline in rental advertisements over the year.  Two of the improving housing markets for value growth, Canberra and Hobart, are amongst these 17 council areas. </p>
<p>The areas with less rental stock advertised than a year ago also tend to be more slanted towards regional areas rather than capital cities.  </p>
<p>This is not surprising given that housing supply has largely been increasing in capital cities rather than regional markets.  Despite the housing construction boom in Sydney at the moment, Kogarah, Warringah and Manly have recorded fewer properties advertised this year compared to last year, signaling tighter rental conditions.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/2017-03-13--image3.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image3.png" width="564" height="506"></p>
<p>With a record high number of new dwellings still under construction, most of which are units and many of which have been purchased by investors, it is anticipated that the number of properties advertised for rent will continue to rise. </p>
<p>The impact of this is that rental growth is likely to remain dampened and those in the rental market in most regions will have an increasing number of properties to choose from.  For owners of investment properties and property managers should be mindful of their local rental conditions, and set their weekly rents accordingly to maximize their occupancy as well as income. </p>
<p>Landlords in areas where the supply of rental properties has shown a rise may find they need to hold their rents steady or in fact, provide a discount on their rental expectations in order to keep or attract tenants.</p>
<p>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank"><span class="s2"><em>here</em></span></a></p>
</body></html>

Rising rental listings signal ongoing softness across some rental markets: Cameron Kusher

<html><body>
<p>GUEST OBSERVATION</p>
<p>How we fund retirement in an ageing century ought to worry all of us.</p>
<p>But one group of us should be much more worried than the rest.</p>
<p>In a new set of <a href="http://cepar.edu.au/resources-videos/research-briefs" target="_blank">research briefs</a> published by the Centre of Excellence of Population Ageing Research, we report that most people do well out of our retirement income system and that the living standard of retirees has improved over the past decade.</p>
<p>In international comparisons, our system <a href="https://www.mercer.com.au/our-thinking/mmgpi" target="_blank">ranks highly</a>, for good reason.</p>
<p><strong>Most retirees do well</strong></p>
<p>About 60% of older Australians can afford a lifestyle better than that deemed to be “modest” by widely used standards.</p>
<p>Households headed by baby boomers reaching retirement age between 2006 and 2016 did so with incomes 45% higher than those who retired a decade earlier.</p>
<p>Typical boomer households aged in their late 60s earn almost as much as they did when they were still working - only 20% less, that is, with about 80% of their working income maintained.</p>
<p>And their needs are lower. Lower spending in retirement is common because older households need to pay less for transport, less for working clothes, and have more time to cook.</p>
<p>Many continue to save while in retirement.</p>
<p>And they tend to spend less over time, rather than more over time as <a href="https://www.superannuation.asn.au/resources/retirement-standard" target="_blank">benchmarks publicised by the superannuation industry</a> assume.</p>
<p>When we included the value of living rent-free for the 80% or more of retirees who own their own home (about A$10,000 per year on average), we found older Australians live in no more poverty than working age Australians.</p>
<p><strong>But not renters</strong></p>
<p>The living standards of those who rent in retirement are very different. Only about 15% of older renters can afford a lifestyle better than “modest”.</p>
<p>Single renters are particularly badly off.</p>
<p>Among all older people only about 10% fall below the poverty line set at half the median income.</p>
<p>Among older Australians who rent, 40% fall below.</p>
<p>Among older Australians who rent alone, it’s more than 60%.</p>
<hr>
<p><iframe src="https://datawrapper.dwcdn.net/Oyddt/1/" frameborder="0" scrolling="no" width="100%" height="400"></iframe></p>
<hr>
<p>If that relative poverty measure seems too abstract, an absolute dollar figure might help.</p>
<p>Alarming research aired on the ABC in September found that, on average, aged care homes were spending <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-09-17/food-in-aged-care/10212880" target="_blank">$6.08 per day on food</a> per resident.</p>
<p>Our research finds that among pensioners who rent alone, one quarter spend <a href="http://cepar.edu.au/sites/default/files/retirement-income-in-australia-part2.pdf" target="_blank">even less than that</a> per day.</p>
<p><strong>And it’s getting worse</strong></p>
<p>The pension has always favoured home owners.</p>
<p>On the one hand it is insufficient for renters and on the other it doesn’t cut pension payments to the owners of very valuable homes, because the value of any home - no matter how big - is excluded from the pension means test.</p>
<p>Rental assistance, introduced to complement the pension in the 1980s, was meant to alleviate this, and to some extent it does.</p>
<p>But it climbs only in line with the consumer price index every six months, which usually fails to keep pace with rents.</p>
<p>Sydney rents have doubled over the past two decades. The consumer price index has climbed 68%.</p>
<p>As a result, rental assistance is less effective in reducing financial stress than it was when it was introduced, and is set to become even less effective if rents continue to climb more quickly than the price index.</p>
<p><strong>And more of us look set to rent</strong></p>
<p>Households headed by Australians aged 35 to 44 are now 10 percentage points less likely to own their own home than were households headed by people of the same age a generation earlier.</p>
<p>They might be merely postponing buying homes until they are older as more of what would have been their income is sequestered into super and they enter the workforce and retire later.</p>
<p>If so, they might end up owning and paying off homes by retirement at the same rate as boomer households did before them.</p>
<p>If not, more and more of them could end up in poverty in retirement.<img src="https://counter.theconversation.com/content/105840/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><em><strong>Rafal Chomik</strong>, Senior Research Fellow, ARC Centre of Excellence in Population Ageing Research (CEPAR), UNSW</em></p>
<p><em>This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/renters-beware-how-the-pension-and-super-could-leave-you-behind-105840" target="_blank">original article</a>.</em></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Renters Beware: how the pension and super could leave you behind

<html><body>
<p>Based on the Census 2017 data, CoreLogic has reviewed where renting property is most common, and, of the 30.9% of residential properties currently rented, who owns the lion's share.</p>
<p>The analysis shows the proportion of properties rented has been trending higher, increasing from 29.6% at the time of the 2011 Census and 27.2% at the time of the 2006 Census to reach 30.9% of all dwellings in 2016.</p>
<p>While the proportion of dwellings being rented is climbing, the proportion of properties owned outright has also been trending lower and the rate of home ownership is diminishing.</p>
<p>An interesting observation from the latest Census analysis is that those properties classified as ‘rentals’ are not all owned by private investors; almost 12% of rented dwellings are owned by state or territory housing authorities, and 2% are owned by community/church groups.</p>
<p>The vast majority of rentals are investor owned with 60% of these managed through a real estate agent, while 20% of rented dwellings are rented by individuals not living in the same household.</p>
<p>The CoreLgoic analysis has identified the top 50 areas most popular for renters.</p>
<p>Only nine of the 50 regions listed had a lower proportion of properties rented in 2016 compared to the proportion at the time of the 2006 Census.</p>
<p>Interestingly, three of these regions are the top three most rental-centric regions (Torres Straight Islands, East Arnhem and Nhulunbuy).</p>
<p>Note that the rental accommodation in these three regions is predominately provided by government.</p>
<p>Overall, the most rental-centric regions are generally located within mining and resource-related regions, and inner city areas where significant increases in housing density has taken place over recent years.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/27/Screen%20Shot%202017-07-27%20at%2010.08.22%20am.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/07/27/Screen%20Shot%202017-07-27%20at%2010.08.22%20am.jpg" alt=""></p>
<p>Over the past 10 years some of these regions have seen a significant increase in the proportion of properties being rented.</p>
<p>Other areas to see significant increases in rental popularity are: Pimpama (located midway between Brisbane &amp; the Gold Coast) where the proportion of properties rented has increased from 29.9% in 2006 to 62.7% in 2016 and South Hedland in Western Australia’s Pilbara region, with significant increases for renting from 36.0% in 2006 to 65.6% in 2016.</p>
<p>By the time of the next Census is 2021, we anticipate that the proportion of properties being rented will increase further given a growing population and ongoing housing affordability pressures, particularly within the largest housing markets (Sydney and Melbourne).</p>
<p>Note: The table above shows the proportion of properties rented over the 2006, 2011 and 2016 Census.</p>
<p>Note that only regions with at least 1,000 total properties at the time of the 2016 Census have been included on the list.</p>
<p>The list provided in this report shows the SA2 regions of the country that had the highest proportion of properties rented at the time of the 2016 Census.</p>
<p>As an aside, and SA2 region, on average, is home to 10,000 residents and, according to the Australian Bureau of Statistics, the purpose of the SA2 region is to represent a community that interacts together socially and economically.</p>
<p>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</p>
</body></html>

Rented properties trending higher: CoreLogic's Cameron Kusher

<html><body>
<h3> </h3>
<div id="post-body-3832523868372190237" class="post-body entry-content">
<div>
<p>With the future of Whyalla's steelworks remaining up in the air, the property market appears to be at risk of imploding.</p>
<p>With vacancy rates above 20 percent and rising, median asking rents appear to be dropping at a quite alarming pace. </p>
<p>Asking rents down by about 30 to 50 percent over the last three years, with the pace of the decline having accelerated over the past year, and more so over the last quarter.</p>
<p><a href="/images/2016/06/14/WHYALLA.jpg" target="_blank">Click to enlarge</a></p>
</div>
<div class="separator"><img src="/images/2016/06/14/WHYALLA.jpg" alt=""></div>
<br><div><em><span style="text-decoration: underline;">Source: SQM Research</span></em></div>
<br><div>This can be a pervasive risk for towns that are so heavily reliant upon one or two industries or firms for employment and for the local economy to thrive. </div>
<div> </div>
<div>The administrator's call for government assistance to support the Arrium steelworks was rejected by Prime Minister Turnbull.</div>
<div> </div>
<div>The Labor state government has pledged support in the form of a $50 million funding facility for the prospective new owner of Arrium - were such a deal to be found. </div>
<div> </div>
<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
</div>
</div>
</body></html>

The Arrium collapse is not pretty for Whyalla property investors: Pete Wargent 

<html><body>
<p>There was a time when a big infrastructure project was an economic gold mine for the local community.</p>
<p>The proponents hired local people and bought services from local businesses. Expert personnel brought in from outside rented local houses.</p>
<p>How quaint were those days. How very last century. </p>
<p>Today you fly everyone in from a distance and build a temporary camp to accommodate them. A town can have a $2 billion project happening 5km down the road without any change in the local unemployment rate or the residential vacancy rate.<span style="line-height: 1.3em;"> </span></p>
<p>In fact, the vacancy rate may well rise if developers build new dwellings in anticipation of increased demand. Gladstone’s influx of tens of thousands of new jobs coincided with its vacancy rate rising from near zero to 10%. Most of the worker stayed in camps on an offshore island.</p>
<p>If you live locally and want a job on the big new project that comes to town, you may need to migrate interstate because big companies prefer to fly their workers in from outside.</p>
<p>Most companies planning big mining projects put out press releases promising to hire local workers and services, but in most cases they’re lying.</p>
<p>And it’s not just resources projects using the modern-day scourge of FIFO workforces and temporary accommodation camps. Now, everyone’s doing it.</p>
<p>In Bundaberg in Queensland, a business that grows strawberries has received council approval for a nine-stage short-term accommodation development to house seasonal workers. The losers will be local landlords and owners of backpackers accommodation.<span style="line-height: 1.3em;"> </span></p>
<p>In Toowoomba, a 500-room workers camp was proposed by one of the companies hoping to become the preferred tenderer for the $1.3 billion Toowoomba bypass, also known as the Toowoomba Second Range Crossing. </p>
<p>As it happens the Rangelink consortium didn’t win the tender. But it demonstrates how the concept of mobile workforces and temporary workers camps is taking hold.</p>
<p>The PR for projects like this always put the number of jobs created up in lights. That used to mean local jobs and politicians would gush about the local benefits. Today it’s likely very few of those jobs will be people living locally.<span style="line-height: 1.3em;"> </span></p>
<p>It’s changed the way property investors need to assess locations worthy of their attention. A big infrastructure development may create some economic ripples in the local community but these events no longer create the property booms of the past.</p>
<p>Today, the big infrastructure projects are more likely to create ghost towns than boom towns. Regional Australia is littered with towns that once thrived from the presence of big industrial developments or mining projects – places where investors enjoyed double-digit rental yields.</p>
<p>Now the vacancy rates read like this: Mackay 7%, Port Hedland 8%, Emerald 8%, Newman 9%, Chinchilla 17%, Miles 24%.</p>
<p>Many would speculate that this is evidence of the end of the resources boom. It’s not. In most cases, it’s evidence of the proponents of major mining or infrastructure projects bypassing the local town and putting up their workers in temporary camps. <span style="line-height: 1.3em;"> </span></p>
<p>The property market in the WA town of Newman has crashed during the construction phase of the $9 billion Roy Hill iron ore mine. Seven thousand people are working on this project but Newman’s median price has dropped 24% in the past year and rents are about a quarter of their peak levels.</p>
<p>And the core message is that  this phenomenon is no longer just a resources sector scenario. It’s spread to other enterprises.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
</body></html>

terryryder-YECXbqmri2

FIFO accommodation and the rental debacle: Terry Ryder

<html><body>
<p>EXPERT OBSERVER</p>
<p>The onset of COVID-19 may be creating a two-speed rental market, with inner-city rents declining faster than those in the outer suburbs. CoreLogic data confirms that there is a positive correlation between changes in rent values and distance to the CBD. This means that the closer a region is to the CBD, the more likely it is that rent values have fallen.</p>
<p>CoreLogic rent values were analysed across SA3 regions of Brisbane, Sydney and Melbourne. For each region, the median property distance to the CBD was compared with the change in total rental market values from the end of March (which marked national, stage 2 restrictions) to the end of August.</p>
<p>The results are plotted below. Each graph shows the change in rent values for houses and units across the horizontal axis between March and August, and the distance to the CBD along the horizontal axis.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_1_0.jpg" width="985" height="573"><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_2_0.jpg" width="986" height="561"></p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_3_0.jpg" width="1143" height="683"></p>
<p class="red-title"><strong>Why have inner city markets been more affected?</strong></p>
<p>As has been noted in previous research from CoreLogic, there are several distinct factors of the COVID-19 downturn that have made inner city rental markets particularly susceptible to a decline in rental values.</p>
<p>These include the relatively high exposure to overseas migration as a source of housing demand. A summary of average net overseas migration alongside distance to CBD is presented by SA3 region below. </p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_4.jpg" width="658" height="514"></p>
<p class="red-title"><strong>Where have rents increased?</strong></p>
<p>Of the 125 SA3 rental markets analysed, there were 63 regions where house rents increased, and 35 regions where unit rents increased, since the end of March to August. <br>Rental increases were most common across Sydney and Brisbane, where employment has been less affected by the pandemic, and social distancing measures have eased. The highest rental value increases were across Blue Mountains houses, rising 3.3%. </p>
<p>The reason for rental value increases in outer-suburban areas are less clear. On explanation may be that outer-city suburbs have been less exposed to the factors driving declines in demand, such as overseas migration. Anecdotal reports assert that a draw card for outer-city suburbs are relatively cheap rents, and low density along with remote working lessening the hurdle of travel times from areas located furhte form the largest employment nodes. This may have increased rental prices through higher demand. The analysed data set also revealed that rental value increases have occurred in cheaper rental markets. However, it is difficult to understand this trend without survey data, and internal migration data for the COVID period will likely not be available until April next year.</p>
<p>It may also be the case that added stimulus to low income households have added to rental demand in areas where rents are usually cheaper. The tapering of this fiscal support may lead to a more broad-based decline in rents over the next 6 months.</p>
</body></html>

pchatterjee-seVgoiQgz5

Properties closer to the city more likely to see rent decline: CoreLogic's Eliza Owen

<html><body>
<p>EXPERT OBSERVATION</p>
<p>In August, reiwa.com data shows it took a median of 21 days to lease a property in Greater Perth which is 13 days less than the same time last year – making it the quickest time to lease since the construction phase of the last mining boom in February 2015.</p>
<p>Strong demand in the rental market continued into August which recorded improvements to the median rent price, listings volumes and days to lease.</p>
<p>From an individual suburb level, Maddington was the fastest suburb to lease in August, taking a median of seven days to lease, which was closely followed by Armadale with nine days, Coolbellup and Wanneroo with 10 days, and Secret Harbour with 11 days.</p>
<p>The median rent has remained stable at $360, however houses increased $10 per week to $380 and with Perth’s vacancy rate sitting at 1.6 per cent, we can expect to see continued upward pressure on rents in the coming months.</p>
<p>A closer look at the data shows four out of five Perth suburbs experienced an improved or stabilised median rent price, with Perth, Ellenbrook, Hamilton Hill, Bentley and Scarborough the top five performers.</p>
<p>The high demand for rentals has seen rental stock on reiwa.com fall 10 per cent on July, with 3,205 properties for rent on reiwa.com at the end of August and based on present levels of enquiry we expect stock levels to decline further in September.</p>
<p>Feedback from our members on the ground is that there is still only a limited number of investors in the market looking to buy investment property.</p>
<p>It’s important that we return confidence to investors and one way the State Government can lead is to significantly reduce the number of properties subject to the residential tenancies COVID-19 legislation. Unless we get investors confident enough to get into the market, the rental shortage will only get worse.</p>
<p><strong>Perth residential sales market</strong></p>
<p>CoreLogic’s latest home value index shows dwelling values in Perth stabilised in August.</p>
<p>Although overall prices had remained stable in the Perth region, reiwa.com data shows 45 per cent of suburbs experienced an increase in median sale price.</p>
<p>Kelmscott saw the biggest increase to its median in August with a 5.4 per cent increase to $320,000, which was followed by Riverton (up 3.9 per cent), Duncraig (up 3.7 per cent), Piara Waters (up 3.6 per cent), and Carramar (up 3.4 per cent).</p>
<p>Interestingly, three of the top five suburbs had a median sale price under Perth’s median of $475,000 and suggests people are taking advantage of properties in Perth that are priced at the lower end.</p>
<p>Listings for sale were also down in August with only 10,627 properties for sale on reiwa.com, which is 1.2 per cent lower than July and 23.2 per cent lower than this time last year.</p>
<p>In the last few months, sales activity has been particularly strong due to the various government bonus schemes, so it is only natural as the interest around the stimulus eased, we saw activity in August decrease compared to July.</p>
<p>The suburbs that saw the biggest improvement in sales were Stirling, Shenton Park, Fremantle, Bayswater and Iluka.</p>
<p>It certainly appears that Greater Perth, and in fact a large part of Western Australia, has escaped the COVID-19 induced property slowdown. Given the high levels of demand and limited supply, we may even see prices rise later in 2020.</p>
<p><strong>DAMIEN COLLINS</strong><em> is the REIWA President</em></p>
</body></html>

WA rental properties leasing two weeks quicker in August: REIWA's Damian Collins

<html><body>
<p class="legacy">In an apparent about face, the NSW government has halved land tax for developers of build-to-rent housing.</p>
<p>It came weeks after the the Treasurer Dominic Perrottet launched a report that called for a <a href="https://www.treasury.nsw.gov.au/draft-report" target="_blank">greater reliance on land tax</a> as a replacement for stamp duty.</p>
<p>The greater reliance on land tax is a long-term goal. At the moment family homes are exempt, along with boarding houses, caravan parks, retirement villages and farms. Most other users pay land tax, including <a href="https://www.revenue.nsw.gov.au/squiz-sandbox/land-tax/exemptions-and-concessions" target="_blank">landlords</a> and businesses.</p>
<p>The change will give developers who invest in build-to-rent schemes offering <a href="https://www.smh.com.au/politics/nsw/nsw-to-cut-land-tax-for-20-years-in-ambitious-build-to-rent-scheme-20200728-p55gbm.htm" target="_blank">long tenancies</a> a 50% discount on their land tax for 20 years.</p>
<h2>Why build-to-rent?</h2>
<p>Most Australian rental properties are owned by individuals, units in apartment blocks as well as free-standing houses. Half are owned by landlords with only one property; <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">three quarters</a> by landlords with only one or two properties.</p>
<p>If you want to rent from a corporation, or from someone with wide experience in owning and renting properties, you’ll find it hard.</p>
<p>It makes Australia unusual.</p>
<p><a href="https://images.theconversation.com/files/350346/original/file-20200730-17-1kp56wj.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/350346/original/file-20200730-17-1kp56wj.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a></p>
<p><span class="caption">Nails in walls can cause problems for tenants.</span></p>
<p>In other countries corporations rent out housing, <a href="https://theconversation.com/what-australia-can-learn-from-overseas-about-the-future-of-rental-housing-90401" target="_blank">big time</a>. America’s five largest corporate landlords own 420,000 properties. Germany’s largest landlord, Vonovia, owns more than 330,000.</p>
<p>Overseas experience suggests corporations provide more affordable housing, and in many ways they make better landlords.</p>
<p>Individuals who own just one property have put most of their eggs in one basket.</p>
<p>Because they can’t afford for anything to go wrong they check the condition of the property regularly.</p>
<p>They prohibit nails in walls and pets, and typically offer only short-term leases.</p>
<p>Corporations can play the law of averages.</p>
<p>Because they know most properties will be well maintained they are satisfied with less-frequent inspections. They allow modifications, and typically offer long-term leases.</p>
<p>They offer an experience pretty close to ownership, in return for rent.</p>
<p>It’s this that the NSW government wants to encourage.</p>
<p>To ensure it happens and to ensure built-to-rents don’t revert to the Australian pattern of individual investors owning individual units, it will specify that the apartments have at least 50 units and are managed under <a href="https://nsw.liberal.org.au/Shared-Content/News/2020/LAND-TAX-CUT-TO-DRIVE-BUILD-TO-RENT-REVOLUTION" target="_blank">unified ownership</a>.</p>
<h2>Tax makes it hard</h2>
<p>At the moment such developments are discriminated against when it comes to land tax. No tax is due if the land value is below a threshold.</p>
<p>Individual landlords are usually below the threshold (some spreading their portfolio between multiple states to ensure they don’t trigger each state’s threshold).</p>
<p>Wholly-owned apartment blocks are above the threshold and can’t escape it. University of Technology Sydney calculations suggest land tax on build-to-rent developments can consume up to 27% of the annual rent collected.</p>
<p>And they are subject to goods and services tax. They can reclaim some of it but not all.</p>
<p>The announcement comes at a time when the COVID crisis has cut stamp duty receipts and created an oversupply of vacant apartments, particularly around universities.</p>
<p>The initiative appears to have been crafted before the crisis and to be more forward looking. Many of the build-to-rent projects will take years to complete.</p>
<h2>It’s about changing the mix</h2>
<p>That said, any extra building activity will support the construction industry and extra stock will reduce home prices and rents.</p>
<p>The initiative doesn’t spell the end of mum and dad landlords. They will still predominate for a long time.</p>
<p>It’s about providing options and security for tenants that isn’t widely available and will become more important as a <a href="https://theconversation.com/the-edges-of-home-ownership-are-becoming-porous-its-no-longer-a-one-way-street-119995" target="_blank">greater proportion of Australians rent</a>.</p>
<p>Other states will be taking note.</p>
<p>For a government that wants to eventually make land tax universal, the 50% cut is a step in the wrong direction. It might have been better to remove the threshold for small landlords.</p>
<p>But there’s no sign the NSW government has given up on its longer term goal. It’s unlikely to be the last time land tax rules are changed.<img src="https://counter.theconversation.com/content/143594/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><span><a href="https://theconversation.com/profiles/harry-scheule-3573" target="_blank">Harry Scheule</a>, Professor, Finance, UTS Business School, <em><a href="https://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a></em></span></p>
<p>This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-nsw-is-skewing-its-tax-system-toward-build-to-rent-apartments-and-away-from-mum-and-pop-landlords-143594" target="_blank">original article</a>.</p>
</body></html>

rental properties

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

rental properties

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News