Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Stamp Duty

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The WA State Government announced that they will be proceeding with stamp duty relief of up to $50,000 for off the plan apartment purchases.
The rebate is effective immediately and is applicable to all buyers purchasing off-the-plan apartments including first home buyers, seniors looking to right-size and foreign buyers.
Samantha Reece, Director of WAAA, stated that she had held discussions with both Minister for Transport, Planning and Lands, Rita Saffioti, and Minister for Housing, Veterans Issues, Youth and Asian Engagement, Peter Charles Tinley, in March this year after research results from 3312 apartment owners indicated that only 14% were prepared to purchase off the plan.
“With the future of MetroNet hanging on the balance of apartment pre-sales, this decision by the McGowan Government will ensure that people who have been dissuaded to buy an apartment will now have an added incentive,” Reece said.
“This stamp duty relief will undoubtedly stimulate the apartment market and that is very promising with the Government’s focus to achieve 47% infill targets.
"WAAA lends its full support to this decision and we thank the relevant Ministers for listening to the voting public of Perth."
ABS data indicates that WA only represents 4.7% of total apartments in the nation in comparison to NSW at 47.2%, Victoria 22.8% and QLD 17.4%.
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j.ballantyne1990-6AQqhLzZaK

McGowan Government announces WA stamp duty relief for off the plan purchases

<html><body>
EXPERT OBSERVER
Most Australians could well assume that recent falls in housing values have translated into more affordable housing. Lower prices, after all, should equate to better affordability.
We recently released our <a href="https://www.corelogic.com.au/news/perceptions-of-housing-affordability-2019" target="_blank">2019 Perception of Housing Affordability</a> report, and there was some good news on the affordability front with some 54% of Australians believing that housing affordability is the same or better than it was a year ago.
But despite that positive sentiment, there are several reasons why Australia is still facing a serious affordability crisis.
<ul>
<li>Affordability ratios remain elevated</li>
</ul>
Firstly, the dwelling value to household income ratio today is 6.5 times. So, the typical Australian household is spending, on average, 6.5 times their gross annual income to buy a median-priced dwelling of $524,000. Less than 20 years ago it was 4.5 times. And the privilege of that problem is another. It takes, on average, 8.7 years to save for a 20% deposit.
That’s a long time; an eighth to a tenth of a lifetime.
<ul>
<li>Housing costs are substantial</li>
</ul>
Australian households are spending 35% of their gross annual income to service their mortgage. That is a significant amount of disposable income they need consistently to be able to service their loan.
<ul>
<li>Wages growth is anaemic</li>
</ul>
But while house prices remain elevated, incomes have not been rising in lockstep to match. Wages edged only slightly higher than inflation over the year ending June, up by 2.3%.1
<ul>
<li>Prices are in the early stages of an upswing again</li>
</ul>
While affordability has improved with house price falls, these affordability gains may be unwound with prices now recently entering a new growth phase stimulated by the current lower interest rates and improved lending conditions. This recovery in housing values accelerated in August 2019 with national dwelling values increasing by 0.8% over the month.
<ul>
<li>Australians are struggling to secure a loan</li>
</ul>
Our report found that 45% of Australians say securing loan approval is a major obstacle coming in at second whereas in 2017 Australians viewed it as the 6th most important concern. The rise of this concern comes amid a significant tightening of credit following the implementation of prudential regulations and increased focus on borrower spending behaviour.
<ul>
<li>Low income householders struggle to save a deposit</li>
</ul>
And 31% of households with an income of less than $50,000 say they wouldn’t be able to raise more than a 5% deposit, and 41% wouldn’t be able to raise a deposit of more than 10%.
<ul>
<li>Our most vulnerable</li>
</ul>
The generation most affected by the affordability crisis are amongst our youngest: Millennials.
The fall in housing values hasn’t however dented their desire to own their own home. We found that 86% of Millennials rated home ownership as important. That makes them the most passionate of all generations. More broadly, 81% of all Australians believe it is still important to own a home.
While desire to enter the housing market burns brightly for many it will be delayed with the number of Australians who think they will be at least 30 before leaving home jumping from 20% in 2017 to 34%.
Solutions
We believe that we should be moving beyond short-term cosmetic levers such as stamp duty concessions and first home buyer grants.
We need to be deploying more foundational levers such as transport infrastructure to carry people from affordable regions to job hot spots. We also need to create more jobs in those affordable areas.
Perhaps the most significant shift required is the transitioning from a stamp duty-based property tax scheme, which is inefficient and unfair, to a broad-based land tax.
Australians across all demographics and geographies are united in calling for action on stamp duty. We found that 79% of respondents thought the best strategy to improve housing affordability was to remove stamp duty (up from 73% in 2017).
No time for complacency
We can’t rely on house price falls to improve what remains a critical issue.
Affordability hasn’t gone away. Indeed, some 83% of non-property owners are still concerned about being able to afford their first or next home (87% in 2017).
Policy makers need to acknowledge that and continue to explore structural, long-term solutions to the affordability challenge.
We need to be proactive as a nation to address this problem. Otherwise, we risk alienating the next generation of Australians who will be locked out of the great Australian dream.
LISA CLAES is the CEO of CoreLogic International.
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Why we still have a housing affordability crisis: CoreLogic's Lisa Claes

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First home buyers have saved more than a billion dollars in stamp duty courtesy of the 2017 Housing Affordability Strategy, according to the NSW state government. 
The report shows that more than 67,800 home buyers have now taken advantage of the opportunity to save (up to) $24,740 in stamp duty when purchasing their first home.
<img src="https://www.urban.com.au/images/2019/9/13/ss1.png" alt="">
The scheme eliminates stamp duty for first home buyers purchasing a new or existing property valued up to $650,000 and provides stamp duty savings for purchases of homes valued between $650,000 and $800,000.
The First Home Owner Grant of up to $10,000 is also available for new housing constructions valued up to $600,000, or for land and a new construction you intend to build valued up to $750,000.
Premier Gladys Berejiklian said her government was delivering on its promise to make it easier for people to own a home.
 “I made it a priority to help first home buyers get the keys to their first home and today’s figures show we are doing just that," Berejiklian said.
<img src="https://www.urban.com.au/images/2019/9/13/ss2.png" alt="">
The share of first home buyers entering the NSW property market has increased from 17.3% in July 2017 to 27.5% in July of this year, according to ABS lending data.
Recent figures from the Australian Bureau of Statistics’ Lending to Households and Businesses report show lending to first home buyers had the biggest increase of all lending categories, with a 6% jump in July.
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wdavis-8cCN98p7xp

NSW first home buyers save more than $1 billion in stamp duty, according to state government

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Another industry body has lent its voice to the growing calls for tax reform around stamp duty. 
HIA’s Stamp Duty Watch report is a regular review of policies and the latest developments in the states and territories around Australia.
Replacing stamp duty with a more predictable and equitable tax would provide state governments with a more reliable source of revenue, explained HIA Chief Economist, Tim Reardon.
“State governments have become increasingly dependent on stamp duty revenues,” said Reardon.
“Stamp duty is an unreliable source of revenue and the increased dependence makes states heavily susceptible to housing market downturns.
“In NSW the downturn in the property market is forecast to cost $10.6 billion in lost revenue over the forward estimates.
“In Victoria where the decline in house prices has been more modest, revenue from stamp duty has been revised down by $5.2 billion.”
The sharp drop in revenues highlights the vulnerability of state budgets, Reardon said.
“In 2018/19 stamp duty revenues made up over one-fifth of all taxation revenue raised in New South Wales, Victoria, Queensland and Tasmania,” he said.
“Victoria has the highest dependency on stamp duty revenues closely followed by NSW.
“The ACT, which is seven years into an ambitious 20-year tax reform program to replace stamp duty, has the lowest dependence on stamp duty.
“It makes up only 13% of total taxation revenue.
“Alternative broad-based tax measures could deliver a more consistent and reliable revenue stream.”
<a href="https://www.propertyobserver.com.au/images/2019/7/4/nsw%20budget.jpg" target="_blank">Click here </a>to enlarge: 
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State budgets are vulnerable to reliance on stamp duty: HIA

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Victoria’s new stamp duty laws will create higher operating costs for unlisted property funds and is sending shockwaves through the property industry, an industry body has warned. 
The Property Funds Association (PFA), the peak industry body for the $125 billion Australian unlisted wholesale and retail property funds sector, said that changes to The State Taxation Acts Amendment Act 2019 received royal assent on 18 June 2019 and incorporated significant amendments to stamp duty.
“Victoria’s stamp duty changes have been introduced without consultation and will likely increase costs for unlisted property funds, which may then be passed on to unlisted property investors,” Paul Healy, CEO of Property Funds Association said. 
He said the new rules could impact any property transactions within a fund.
“There are particular concerns over how the new stamp duty rules will apply to property transactions, and how they will apply to fund performance fees, acquisition fees, and disposal fees,” Healy said. 
“PFA believes there needs to be more scope for exclusions or exemptions to ensure funds are able to carry out their business without being unreasonably taxed.” 
Most issues centre around changes to the ‘economic entitlement provisions’ under the Victorian Duties Act. Changes include removing the 50% threshold and moving most of the provisions from the ‘landholder duty’ regime into the ‘transfer duty’ regime. 
Prior to the new provisions taking effect, duty was only imposed under the economic entitlement provisions where the owner of the land was a private or wholesale unit trust, or a private company, and the economic interest acquired was 50% or more of the relevant economic entitlement (e.g. rent, profits, capital proceeds etc.).
PFA says removing this 50% threshold and removing the restrictions in the landholder regime means a much wider range of entities and activities will be caught in the stamp duty net. 
Victoria’s State Revenue Office has issued administrative guidance on these new provisions, but PFA says appropriate exclusions from these new provisions should be legislative, rather than administrative.
“This guidance has limited value to many unlisted property funds and does not provide adequate certainty for taxpayers as it does not have legislative force and only addresses ‘plain vanilla’ circumstances,” Healy concluded.
“In PFA’s view, further legislative amendments are warranted to provide clarification and certainty for taxpayers.”
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Victorian stamp duty changes have shocked unlisted property funds and investors: PFA

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The NSW Budget indicates that the softening housing market has wiped out $10.6 Billion in expected stamp duty since 2017 but the Budget has no stimulation for the housing market.
The NSW Budget is a well -rounded document that continues the government’s roll out of city shaping infrastructure with $93 Billion committed to key projects.
The positive commitment to infrastructure is offset by a loss of $10.6 Billion in expected stamp duty due to the soft housing market.
The major commitment to infrastructure should underpin the urban growth across the state with a major focus on public transport growth that should occur around rail stations and in city centres.
The housing development industry is getting mixed signals from government on where development should occur and this is eroding confidence within the industry. 
Confusion exists over the ‘missing middle’ code, the future of spot rezoning, affordable housing levies and the impact of lifting the cap on infrastructure levies. 
Resolution is needed on these areas so that the current slow-down can be reversed.”
While housing construction is down the budget papers do point out that this is partly off-set by the large infrastructure construction commitment and a swing by some developers towards commercial office projects. 
Unfortunately for the budget these projects do not contribute stamp duty to the Treasury.
The Budget Statement (P 2-4) states that apartment commencements fell 22 per cent within the final quarter of 2018 and then states ‘Expectations for ongoing strong population growth and a stabilisation in house prices from late 2019 should encourage the commencement of more projects. 
How conditions in the housing market evolve over the next 12 months will be important for dwelling investment and household consumption.’ 
The budget included a proposal to drive reform of Federal Financial Relations with a review from a NSW perspective.
On major rail infrastructure projects the Sydney Metro West will receive $6.4 Billion over 4 years to fast track construction.
 These large rail infrastructure projects in Minister Andrew Constance’s portfolio are important locations for Sydney’s growth.
Western Sydney is a big winner in the budget with Stuart Ayres portfolio receiving $561 million for 2019-20 towards the Parramatta Light Rail, $404 million to upgrade the Northern Road, $286 million for Westmead Hospital, $196 million for Nepean Hospital. $108 million for Campbelltown Hospital.
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The Minister for Planning and Public Spaces, Rob Stokes, had smaller financial commitments including $113 million to create connected communities and $162 million to upgrade government-owned land and buy new land for public parklands as well as for increasing tree canopy across Sydney.
The NSW Budget demonstrates that the state’s finances are in a strong position but the reduction in expected stamp duty is warning signal that the housing market has problems in years ahead. 
The Urban Taskforce believes that the NSW Government needs to have a plan to ensuring the softening housing market is managed back into a strong position that handles population growth and continues the large number of jobs the industry generates.
CHRIS JOHNSON is the Urban Taskforce CEO
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NSW Budget has little to help the housing sector: Chris Johnson

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The volatility of transfer duty revenue has proved a significant fiscal challenge for New South Wales. 
During the property market boom, transfer duty grew to be the State’s largest tax, representing 31 percent of tax revenue in 2016-17.
The decline in the property market over the past 18 months has seen forecast transfer duty fall to 21 per cent of tax revenue in 2019-20. 
Since the 2017-18 Budget, the four-year forecast for transfer duty has been reduced by $10.6 billion. 
Residential transfer duty is expected to grow at an average annual rate of 8.8 per cent over the four years to 2022-23. 
The NSW Treasury forecast is largely driven by the expected return to average transaction volumes. 
“As interest rate cuts and relaxed credit restrictions flow through into increased lending, residential transaction volumes are forecast to rebound strongly from the middle of 2019.
“Price growth, however, is expected to be restrained during the forecast period, largely keeping pace with inflation.”
New South Wales become more reliant on transfer duties in recent years, which rose from $3.8 billion in 2011-12 to $9.7 billion at its peak in 2016- 17. 
Since the 2017-18 Budget a softening of the housing market has resulted in a write down of more than $10 billion in forecast transfer duty. 
Land tax too has been revised down following a lower 2017-18 outcome than expected at Budget, along with lower than expected foreign investor land tax surcharge revenue. 
Non-residential construction activity is expected to partially offset falls in dwelling construction over the next two years. 
The public sector will be a major driver, assisted by the State’s record $93.0 billion capital spending program over the next four years. 
The large public infrastructure program, rising commercial building activity and a solid export sector are forecast to underpin the State’s resilience and are expected to partially offset the weakness in the household sector. 
The budget papers noted transfer duty makes up about 8.2 per cent of forecast 2019-20 general government sector revenue and a delay in the forecast residential property recovery, or a less robust return to growth, could detract from the State’s budget result. 
Transfer duty revenue is expected to be $7.4 billion in 2018-19, $173.0 million lower than forecast at the 2019 Pre-election Budget Update. 
From 1 July 2019 home buyers will benefit with the previously announced annual indexation of transfer duty thresholds to the Sydney Consumer Price Index. 
The measure is estimated to save homebuyers around $330 on an average-priced dwelling purchased by 2021-2. 
Transfer duty brackets had not changed since 1986. 
Budget surpluses are being maintained despite the State facing revenue pressures.
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NSW residential transaction volumes forecast to rebound strongly from the middle of 2019: NSW state budget

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Victoria's state budget, announced yesterday, has moved to increase taxes on foreign buyers and foreign ownership.
The stamp duty has risen in Victoria for a foreign investor from seven percent to eight percent, which puts it at the same rate as in New South Wales.
The budget also focused past the purchase and have changed rules regarding the absentee land tax, where foreign investors leave land purchases empty.
The tax has increased from 1.5 percent to two percent, also in line with the figures in New South Wales.
It is estimated about 3000 foreign property investors will be hit by a boost to the absentee owner surcharge.
Victoria Treasurer Tim Pallas said the tax increases, which have been said to have been enforced to discourage landbanking, were targeted at people who could bear a greater tax burden.
He said that over the past year Victoria has seen its biggest 12 month decline in property prices in the state's history.
The Property Council have described the increased stamp duty for foreign investors as an "own goal"
Carrie Law, the CEO of Juwai, a Chinese website for buyers of overseas property, said the decision to hike taxes for foreigners were "<a href="/news/chinese-website-reaction-to-victorian-state-budget-s-new-taxes-on-foreign-buyers">dispiriting but not too damaging.</a>"
"Will the higher taxes announced this week make a tremendous difference on the market? The answer is no," Law said.
 
 
 
 
 
 
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Foreign property buyers and ownership hit in Victoria state budget

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The 2018-19 NSW State Government surplus is projected to be $846 million, which is $273 million lower than at half-yearly review.
The details were in the NSW Pre-election Budget Update which was issued in accordance with section 24 of the Parliamentary Budget Officer Act 2010.
The Secretary of the Treasury released the NSW Pre-election Budget Update on 5 March 2019 which provides updated information on the current and projected financial position of the New South Wales general government sector.
This is the first time New South Wales has released a <a href="https://www.treasury.nsw.gov.au/news/nsw-treasury-releases-updated-economic-and-fiscal-projections" target="_blank">Pre-election Budget Update</a>.
The revenue for 2018-19 is forecast to be $477 million lower than at half-yearly review, reflecting weaker taxation estimates, including transfer duty and payroll tax.
The review noted the ongoing deterioration of conditions in the housing market had been a key challenge for the local economy in recent months.
Turnover in the housing market has fallen away sharply, while the median Sydney house price has fallen another 11⁄2 per cent in the two months since November 2018.
The Sydney house price is now down more than 10 per cent from the peak in mid-2017.
"This is the largest fall since the 1980s, but represents only a partial unwinding of the sustained price gains experienced in recent years," it noted.
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Revenue for 2018-19 is projected to be $81.3 billion, which is a downward revision of $477.3 million since the Half-Yearly Review. 
This takes into account downward revisions to multiple state taxation lines, including transfer duties of $393 million.
Transfer duty has been revised down by $393 million in 2018-19 and by $747 million over the four years to 2021-22.
While dwelling price declines have been closely in line with the Half-Yearly Review forecast, residential transaction volumes in recent months have been weaker than expected.
Residential transaction volumes in 2018-19 are expected to be 19.5 per cent lower than in 2017-18.
Transaction volumes are forecast to return to trend levels by the middle of 2021.
Since the Half-Yearly Review in December 31, 2018, revenue has been revised up by $363 million over the four years to 2021-22.
This is mainly due to higher GST revenue of $1.2 billion (reflecting an improved relativity recommended by the Commonwealth Grants Commission and a lower expected GST pool), largely offset by downward revisions to state taxation – including transfer duties ($747.0 million) and payroll tax ($573.1 million).
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Expenditure for 2018-19 is also projected to be $204 million lower reflecting reprofiling of expenses to better align with project and service delivery schedules.
Over the four years to 2021-22, budget surpluses are expected to average $1.3 billion per year. 
The update also advises land tax revenue has been revised down by $21.8 million in 2018-19 and by $82.8 million over the four years to 2021-22.
Land tax is assessed based on landholdings at 31 December each year, with assessments typically issued in the first half of the following calendar year.
The forecast revenue for 2018-19 incorporates actual landholdings at the end of 2018, replacing the Half-Yearly Review forecast which was based on the previous year’slandholdings.
For subsequent years, the revenue forecast incorporates lower expectations for residential land value growth.
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$393 million lower stamp duty hits NSW State Government revenue

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To paraphrase former prime minister Paul Keating, walk into <a href="https://www.smh.com.au/politics/federal/plenty-of-bark-any-bite-20101028-175mv" target="_blank">any pet shop in the country</a> and you’ll find the resident galah saying we should swap stamp duty for a land value tax.
Just about every economic think tank in the land thinks it’s about the best value tax change there is, among them the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378" target="_blank">Grattan Institute</a>, <a href="https://percapita.org.au/our_media/replacing-stamp-duty-with-broad-based-land-tax-could-increase-revenue-to-11-2-billion-by-2047-new-report-shows/" target="_blank">Per Capita</a>, the <a href="http://www.tai.org.au/sites/defualt/files/P149_Tax%20the%20need%20for%20change.pdf" target="_blank">Australia Institute</a>, and the <a href="https://www.cis.org.au/commentary/articles/dominic-perrottets-reforms-are-welcome-but-the-government-must-break-its-addiction-to-this-bad-tax/" target="_blank">Centre for Independent Studies</a> as well as <a href="https://www.thepolicyspace.com.au/2015/25/58-five-ways-to-reform-state-taxes" target="_blank">a swag of academics</a>, the Treasury in its work on the <a href="http://bettertax.gov.au/files/2015/03/08_GST-and-State-Taxes.pdf" target="_blank">draft white paper for tax reform</a> and the <a href="http://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_g2-2.htm" target="_blank">Henry Tax Review</a>.
Among the benefits of what I will call SD4LVT are said to be greater ease in upsizing and downsizing, a more mobile population (less reluctant to buy and sell houses) and a more reliable source of revenue for state governments.
One state, the Australian Capital Territory, has already begun a <a href="https://www.revenue.act.gov.au/tax-reform" target="_blank">20-year</a> phase out of stamp duty and a 20-year build up of land tax.
But beneath the near universal enthusiasm for SD4LVT are layers of bad economics.
It is extremely frustrating to me that the leading minds in Australian policy have put their heads together and decided that the best reform they can think of is to replace a good tax on property with another good one that would be even less popular.
The more thoughtful among them don’t even bother to claim that SD4LVT will make housing more affordable, yet still put it forward as the “holy grail” of tax reform.
It is bad economics because of four key points its proponents miss or overlook.
<h2>Price effects</h2>
Stamp duty comes out of what the buyer is prepared to pay. This means that if you remove it, all other things equal, prices will rise by exactly the amount of the duty removed.
If the average home price is A$500,000, and buyers pay a 5% stamp duty, taking the total to A$525,000, then when stamp duty is removed the price will immediately increase to $525,000 being what the buyer was prepared to pay.
If you replace the stamp duty revenue with revenue from land value taxes, the effects on price are less clear. The change could push them up (enriching sellers) or it could push them down.
Imagine an example economy with:
<ul>
<li>20 houses</li>
<li>Turnover of one house each year (a turnover rate of 5%)</li>
<li>An average home price of A$500,000</li>
<li>Total stamp duty revenue of A$25,000 per year</li>
</ul>
Replacing the A$25,000 stamp duty revenue with a land value tax requires taxing all 20 homes at A$1,250 per year each.
Whether the market price of homes rises or falls depends on whether buyers think the cost to them of A$1,250 per year is lower or higher than the A$25,000 upfront stamp duty they avoided. If they thought it was about the same, SD4LVT wouldn’t much affect prices.
But what if turnover was half that, say 2.5%, which in this example would be where one house was sold every two years? In that case, the total stamp duty to be replaced would be A$12,500, which would be only A$625 per house in land tax.
The new buyer could pay A$512,500 for the house plus A$625 per year in land tax and be equally as well off as paying A$500,000 for the house plus A$25,000 in stamp duty.
The net effect would be a 5% price increase from A$250,000 to A$262,500.
If that happened nationally it would mean a transfer of almost A$200 billion to existing owners.
Whether or not that did happen would depend on the turnover and buyer’s views about the future value of money. In short, the price effects of a SD4LVT are ambiguous.
<h2>Mobility</h2>
While it is said that stamp duties deter Australians from changing addresses and switching jobs, there is little evidence that they are not changing enough.
Most people who relocate for work <a href="https://www.rba.gov.au/publications/bulletin/2017/mar/pdf/bu-0317-3-housing-market-turnover.pdf" target="_blank">don’t buy and sell homes in order to do it</a>.
They rent first, becoming both a renter and a landlord for a while, perhaps selling their first home later, but not quickly.
When they do sell, often for a healthy profit, stamp duty ensures they pocket less than would have, grabbing back some of what might otherwise be an untaxed capital gain.
Lower housing turnover from stamp duties mainly falls on the nearly half of sales involving investors who buy speculatively to capitalise on short bursts of capital growth before selling, in the process fuelling the boom and bust price cycle.
To me, anything that slows down real estate turnover and captures capital gains seems like a good idea.
<h2>Revenue stability</h2>
It is claimed that stamp duty revenues are much more volatile than other taxes. During a boom, they climb more than proportionally to prices since they also depend on turnover. During a bust, they fall more quickly than prices.
If I was to think in the abstract about what sort of taxes are good for the economy, I would say it is those that are pro-cyclical, meaning they automatically increase takings during a boom, and wind them back during a bust.
On this measure, stamp duty is a good tax for stabilising the economy, something important given how much our economic cycles are tied to housing markets.
The land value tax that SD4LVT proponents would replace stamp duty with would make the tax system as a whole less stabilising.
<h2>Odd modelling</h2>
You might have seen a chart like the Treasury graph below, with stamp duties presented as having enormous flow-on economy-wide costs compared to other taxes. In this example, land tax which is presented as having an economic benefit.
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The problem with the graph is that modelling used to prepare it (computational general equilibrium modelling) can’t directly account for transaction taxes because it doesn’t model transactions.
Instead of using a better tool for the job, the modellers assume that stamp duties increase cost of housing to all buyers and renters. It’s this assumption that drives a conclusion they describe as merely “<a href="http://www.policypartners.com.au/assets/treasury---economic-incidence-of-taxes-(2015).pdf">illustrative</a>”.
<h2>To sum up</h2>
Stamp duties don’t push up the cost of housing. The claim that they impede household mobility is overblown. They do reduce asset churn, and as a result they help maintain price stability.
Their “revenue instability” is actually a huge positive for the economy as a whole. And the modelling that has underpinned the talk of high economy-wide costs is as good as made up.
Yet SD4LVT remains the apparent holy grail of Australian tax policy.
Our best policy wonks continue to push our politicians to use up the precious capital to swap one very good property tax for another, for no obvious economic gain.<img src="https://counter.theconversation.com/content/106841/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;">
<a href="https://theconversation.com/profiles/cameron-murray-172480" target="_blank">Cameron Murray</a>, Lecturer in Economics, <a href="http://theconversation.com/institutions/the-university-of-queensland-805" target="_blank">The University of Queensland</a>.
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/stamp-duty-fever-the-bad-economics-behind-swapping-stamp-duty-for-land-tax-106841" target="_blank">original article</a>.
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