ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Lagoon Main Beach approaches sell-out as local buyers drive $75m in sales

Victorian Stamp Duty

Property buyers keen on buying an apartment&nbsp;in the City of Melbourne were given a shot in the arm at the Victorian Budget last month.

Prospective buyers seeking established apartments in the CBD&nbsp;which have been completed for over 12 months&nbsp;will face no stamp duty on their purchases, as long as the purchase price is under $1 million.

Apartment sales at that price could save buyers up to $55,000 in stamp duty.

The news has been particularly welcomed by first home buyers, who so far this year have seen the&nbsp;HomeBuilder grant expire which had been driving a lot of demand to buy new property.

At the end of June, first home buyers will also see the 50 per cent stamp duty waivers for new property under $1 million expire, as well as the 25 per cent discount of stamp duty for new homes.

Urban have put together the best four best&nbsp;CBD apartment towers which offer the stamp duty.&nbsp;

<h2>Melbourne Square</h2>

One bedroom apartments from $487,000, two bedroom apartments from $642,000.

Melbourne Square on Southbank&#39;s Kavanagh Street&nbsp;is the latest mixed-use development by&nbsp;OSK Property.

[smartcode_project:default project_id=2929 project_image_fid=137897]

The five-acre prominent gateway precinct&nbsp;has been has been&nbsp;strategically located within proximity to the best education available in Australia including as The University of Melbourne, RMIT University and Swinburne University, as well as the city&rsquo;s iconic arts, entertainment and shopping havens such as the National Gallery of Victoria, Southbank Theatre, Crown Casino, South Melbourne Market, Southgate Shopping Centre and Collins Street.

Cox Architecture designed the precinct, as well as the residential component of Melbourne Square, a pair of towers rising above a terraced podium. The collection of apartments across the East and West towers are fitted out with interiors by Carr Design.

[smartcode_project:default project_id=2929 project_image_fid=137903]

There are four&nbsp;distinct design themes by Coco Republic to choose from, The Manhattan, which offers a sophisticated dark palette,&nbsp;Bondi, which has a coastal feel, Paris, which boasts timeless luxury, and Soho, which showcases monochromatic industrial style.&nbsp;

The brand new selection of apartment&nbsp;feature kitchens that have&nbsp;marble block island benches, Kohler tapware, state-of-the-art Miele appliances, a five-burner gas hob&nbsp;and DynaCool refrigeration.

The resident amenities feature an indoor pool with uninterrupted views spanning the Melbourne eastern skyline, a sauna&nbsp;and a yoga studio, a gym, private dining areas and kitchen, a state-of-the-art games simulator and a music room and games room.

[smartcode_project:default project_id=2929 project_image_fid=137896]

<h2>Melbourne Quarter</h2>

One-bedroom apartments from $458,000, two-bedroom apartments from $607,000

[smartcode_project:default project_id=3459 project_image_fid=147572]

Melbourne Quarter is the masterplan-like community&nbsp;of the award-winning national developer Lendlease.

The apartment development has been designed by the international design firm&nbsp;Fender Katsalidis, one of the most sought-after design firm&#39;s across the globe.

The 2.5 hectare Flinders Street&nbsp;development will feature a&nbsp;public open space&nbsp;with a mix of both retail and parkland.

[smartcode_project:default project_id=3459 project_image_fid=147571]

So far the East Tower has been completed. That homes&nbsp;Club MQ, three&nbsp;whole-floors of resort-style amenities&nbsp;including theatrette, private dining, indoor pool, gym and spa.

<h2>Melbourne Grand</h2>

One-bedroom apartments from $489,000, two-bedroom apartments from $569,000

[smartcode_project:default project_id=3490 project_image_fid=93147]

Melbourne Grand is the award-winning development from Central Equity.

The $470 million tower&nbsp;at 560 Lonsdale, in the heart of the CBD,&nbsp;has a striking curved facade thanks to its design&nbsp;by high-profile architects Guilford Bell + Graham Fisher and its build by&nbsp;Multiplex.

The curved tower&nbsp;features a glittering facade, with a wave-like joinery motif, giving the tower a striking point of difference.&nbsp;

Melbourne Grand&nbsp;features a string of hotel-style amenities which take up the whole of the 10th level.&nbsp;As well as an indoor poor, gym and yoga studio, there&#39;s a residents&#39; lounge with a banquet room and coffee bar, as well as a 17-seat luxury theatre.

[smartcode_project:default project_id=3490 project_image_fid=139999]

The apartments, which all have a 7.2 star average energy rating, span up to 120 sqm and feature high ceilings and floor to ceiling windows with motorised blinds.

Most living areas have their own study nook with a built-in desk and a balcony with panoramic city views off the living space. Each kitchen is fitted with Miele appliances and integrated aircon comes as standard.

<h2>The Peak</h2>

One-bedroom apartments from $483,000, two-bedroom apartments from $618,000

[smartcode_project:default project_id=2905 project_image_fid=162740]

Only just falling in to the stamp duty waiver having been completed 12 months ago is The Peak, the latest development from Auriton Group.

The Peak&#39;s location is one of the key selling points,&nbsp;located on the quiet side of the Melbourne CBD at 141 La Trobe Street with views to Carlton Gardens.

It&#39;s also set near Spring Street, one of Melbourne&#39;s most expensive street&#39;s for apartments which&nbsp;far surpass those in The Peak.

[smartcode_project:default project_id=2905 project_image_fid=163853]

There are 177 units in the 42 level tower, with a floor plate of just four apartments per floor, giving each unit a corner aspect.

Each of the remaining units have a 3D Tour.

The new stamp duty waivers could save buyers up to $55,000 on new apartments

The best Melbourne CBD apartments for sale with no stamp duty

<h2 class="legacy">EXPERT INSIGHT</h2>

Victorian treasurer Tim Pallas&rsquo;s three-pronged strategy to raise an extra <a href="https://www.premier.vic.gov.au/contributing-fair-share-stronger-victoria">A$2.7 billion in property taxes</a> over the next four years is a case of two out of three ain&rsquo;t bad.

<h2>Land tax ✅</h2>

First, Pallas will raise $1.5 billion over four years by lifting land taxes on landholdings worth between $1.8 and $3 million by 0.25%, and by 0.3 percentage points on landholdings worth more than $3 million.

This is a good move. Taxes levied on the value of landholdings are among the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">most efficient states can impose</a>. And land taxes offer a more sustainable and less-volatile tax base than stamp duties on property transactions.

<h2>Windfall gains levy ✅</h2>

Second, developers and landowners who reap windfall gains when their property is rezoned will be hit with a 50% levy if the gain is $500,000 or more, with the tax phasing in from windfalls above $100,000. The new levy will not apply to growth-zone land where developers already pay the <a href="https://www.sro.vic.gov.au/growth-areas-infrastructure-contribution">Growth Areas Infrastructure Contribution </a>charge.

Again, this is a good move. It should reduce incentives for <a href="https://www.theage.com.au/politics/victoria/how-money-talks-in-victorian-politics-five-lessons-from-the-casey-corruption-scandal-20201218-p56oo3.html">corruption</a> when planning applications are decided.

As a tax, collecting unearned windfall gains is extraordinarily efficient, so efficient it shouldn&rsquo;t even be called a tax but a charge for a change in allowable land use, which is <a href="https://theconversation.com/our-states-are-crying-poor-they-wouldnt-if-they-charged-for-rezoning-142838">what it is</a>.

[smartcode_project:default project_id=95340 project_image_fid=160800]

The new re-zoning charge won&rsquo;t raise much in the short term: just $124 million over four years.

But the next time there is a major rezoning &mdash; think of the bonanzas that have flowed to land holders from previous rezonings in <a href="https://www.theage.com.au/national/victoria/report-slams-matthew-guy-on-rezoning-of-fishermans-bend-20151019-gkcyrv.html">Melbourne&rsquo;s Fisherman&rsquo;s Bend</a> and the Docklands &mdash; it will deliver taxpayers hundreds of millions if not billions.

The property lobby <a href="https://www.afr.com/property/commercial/victorian-windfall-tax-will-hit-urban-infill-developers-say-20210516-p57sbh">has been quick to claim</a> that charging for rezoning windfalls will deter higher-density development in Melbourne, or increase prices. Both claims should be ignored.

Capturing a share of rezoning windfalls won&rsquo;t deter developers. Instead it could make it easier to solve Melbourne&rsquo;s housing crisis while reducing incentives for corruption in planning decisions.

Planning rules make it hard to build more housing in inner suburbs. Zoning for higher density is necessary, but unpopular. Local residents partly object because they think developers are getting a free kick.

The Victorian treasurer&rsquo;s decision to make the winners pay for some of their winnings will make the process fairer and less divisive.

It&rsquo;s a myth that charges for changes in land use raise home prices. Australian evidence suggests those lucky enough to own land before it is rezoned <a href="https://www.sciencedirect.com/science/article/abs/pii/S0264275117301051">pay the charges</a> rather than pass them on to eventual homebuyers, which might be why they object.

And future developers will pay less for their land, because the expectation of windfall gains won&rsquo;t be built into the price.

The ACT Government has charged <a href="https://www.planning.act.gov.au/leasing-and-titles/varying-crown-leases/lease-variation-charge">75%</a> for land value uplift for three decades without scaring away developers.

But the third prong of the Pallas plan &mdash; lifting stamp duty from 5.5% to 6.5% on properties that sell for more than $2 million &mdash; is a step in the wrong direction.

<h2>More stamp duty ❌</h2>

Stamp duties are among the most <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">inefficient</a> and inequitable taxes Australia has.

They discourage people from moving to housing and cities that better suit their needs, and they are inequitable discourage people from moving to better jobs.

And the revenue they provide is volatile: any slowdown in property sales &mdash; as happened during COVID took hold &ndash; punches a big hole in state budgets.

Few Victorians will be affected by this tax hike: less than 5% of all Melbourne homes (and just 0.5% of regional Victorian homes) went for $2 million or more last year, according to <a href="https://twitter.com/timlawless/status/1394500338846081026">Corelogic</a>.

Someone buying a $2.5 million home will pay just an extra $5,000 in stamp duty.

But Pallas should be looking to replace stamp duty with broad-based land taxes, as <a href="https://www.treasury.nsw.gov.au/property-tax-proposal">NSW</a> is planning to do.

Tax hikes are rarely popular. But they will become increasingly necessary as states try to repair their budgets after the COVID crisis.

In the quest for a better tax system, Pallas has just taken two steps forward, and one step back.

<img alt="The Conversation" f="" height="1" j="" m8tkrlktj="" src="https://counter.theconversation.com/content/161353/count.gif?distributor=republish-lightbox-basic" width="1" />

<hr />
<a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Household Finances, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-lesson-for-australia-out-of-victorias-property-tax-hikes-two-out-of-three-aint-bad-161353">original article</a>.

Victorian treasurer Tim Pallas’s three-pronged strategy to raise an extra A$2.7 billion in property taxes over the next four years is a case of two out of three ain’t bad

jordan_55689

The lesson for Australia out of Victoria’s 3 property tax hikes

It was announced over the weekend that the Victorian Government will seek to increase stamp duty and land tax from July 1.

Stamp duty will rise from 5.5 per cent to 6.5 per cent for those purchasing any property over $2 million and a land tax increase from 2.25 per cent to 2.55 per cent for properties valued over $3 million.

There will be a larger increase in land tax on properties valued between $1.8 million and $3 million. There will be a 19 per cent from the current 1.3 per cent, up&nbsp;to 1.55 per cent.

Urban.com.au CEO Mike Bird says the proposal will have the greatest effect on downsizers and younger families.

&quot;The policy feels inconsistent with the recent federal government budget focusing on encouraging older generations to down size from the family home into something more suitable (down sizers are now able to contribute to $300k from their home sale into their superannuation at a more favourable tax rate), freeing up that housing stock for younger growing families,&quot; Mr Bird said.

&quot;We want to see barriers removed to enable home owners to &quot;rightsize&quot; into something that makes sense for their living requirements and this policy isn&#39;t helping achieve that.&quot;

One of Melbourne&#39;s most recognised developer,&nbsp;Tim Gurner, says it is not the time to kill one part of the economy that is providing strength and jobs for Australia.

&quot;These&nbsp;draconian style tax regimes need much deeper and thorough conversation and thought!!&quot; Gurner says.

[smartcode_project:default project_id=2484 project_image_fid=40832]

Gurner says the introduction can only lead to a&nbsp;big jump in house prices, as everyone just adds the additional cost to prices and supply drops, which will in turn make&nbsp;it harder for families to enter the home market with stamp duty hike.

Gurner adds that it will also&nbsp;de-incentivise developers to be active which reduces supply and will increase cost of living and homes. He says that all of these factor&nbsp;will lead to huge job losses when they filter through.

Illan Samuel, head of&nbsp;Samuel Property who specialise in luxury projects, says the proposed stamp duty increase will only lead&nbsp;to the additional cost being passed onto buyers, again putting pressure on affordability of property in Victoria.

&quot;Developers work to commercial&nbsp;returns,&quot; Samuel says.

&quot;If the cost of doing business increases, this will be passed onto the consumer - like any other business.

[smartcode_project:default project_id=13991 project_image_fid=36399]

&quot;However, if the consumer will not absorb the cost - then no transaction will occur, and ultimately the economy suffers.&quot;

Samuel says, in his opinion, that this is the&nbsp;complete opposite of what the Labour government should be proposing.

&quot;A property lead recovery out of Covid-19 market conditions, which saw Melbourne hit the hardest with long and harsh lockdowns impacting on the ability to transact is vital.

&quot;Increasing stamp duty after initial market runs will only stimy activity and create negative association to property, particularly off the plan (high density) property which, unlike the house and land sector did not benefit from the Home Builder stimulus. I

&quot;I would expect fewer transactions, leading to less stamp duty collected by the government - whereas a reduction in stamp duty would have lead to more transactions, and likely more stamp duty collected in dollar terms. It is&nbsp;a short-sighted move.&quot;

Kris Daff, the managing director at Assemble, who are pioneering affordable housing across Melbourne, says 2021 is a time when Government should be generating tailwinds for the real estate and construction sectors, sectors who are significant employers and generators of economic recovery and growth.

&quot;The introduction of foreign buyer surcharges is an example of the unintended consequences of ill-considered policy, which has contributed to new apartment sales falling off a cliff and commercial builders in the state facing huge reductions in work in hand as a result.&quot;

[smartcode_project:default project_id=94542 project_image_fid=160739]

<h2>What the experts are saying</h2>

REIV president Leah Canlan

&quot;The&nbsp;tax hikes will make Victoria a less desirable place to invest, ultimately harming jobs and the economy. 
 
&ldquo;The government continues to burden Victorians with increases to property taxes. Property already accounts for more than 40 per cent of government revenue. There is not much more capacity any one sector to absorb further tax burden. 
 
&ldquo;If the Victorian Government is serious about jobs and housing it needs to invest in real estate, not attack it.&quot;

AMP Capital chief economist Shane Oliver

&quot;While I can understand the desire to reduce the deficit, stamp duty is a bad tax that distorts economic decision making and should really be phased out in favour of land tax as NSW is considering.

&quot;So relying even more on it runs counter to this and will further distort economic decision making in Victoria as well as make housing even less affordable.&quot;

Victorian Executive Director of the Property Council&nbsp;Danni Hunter

&quot;This is a sucker punch to the industry that is building Victoria&rsquo;s recovery. One in four Victorians work in property and the Victorian Government is raising taxes at a time when it should be creating jobs.

&ldquo;This is a tax hike on the home ownership dreams of Victorians. We are heading toward a housing affordability crisis and the Victorian Government has fast tracked our way there by slugging homebuyers and businesses in this short-sighted move.

&ldquo;The Government knows the price for these tax changes will be paid by every single Victorian.&quot;

Hotspotting founder Terry Ryder

&quot;The decision by the Victorian Government to hike land tax and stamp duty on investor owners continues the age-old problem of politicians using the housing industry as a cash cow - and thereby making housing affordability worse. 
 
&quot;The problem of affordability can be summarised like this: it&#39;s caused by politicians at all three levels of government milking the housing industry for revenue. Local government does it and the Federal Government does it, but by far the worst are state governments. Every time a state government needs some extra revenue, they slug developers and investors.

&quot;They believe there&#39;s little electoral damage in doing that, but ultimately it&#39;s the home-buyers who pay, including first-home buyers. Developers can&#39;t sell a house and land package for $400,000 if it costs $500,000 to create - and a huge proportion of the cost is taxes, fees and charges from the three levels of government, but especially state governments. 
 
&quot;Right now, Australia has a rental shortage crisis and politicians should be encouraging investors to buy properties and make them available for rental. Our politicians, however, continue to discourage investors - hence the ultra low vacancies and rising rentals in most locations across Australia. With this move by the State Government in Victoria, the situation just got worse.&quot;

One of Melbourne's most recognised developer, Tim Gurner, says it is not the time to kill one part of the economy that is providing strength and jobs for Australia.

VIC stamp duty changes: What the developers and experts are saying

The Victorian Government has revealed there will be stamp duty and land tax increases in its 2021-22 State Budget which the industry fears will worsen housing affordability.

The new measures see an estimated $2.65 billion increase in property taxes over the next four years.

Treasurer Tim Pallas revealed a series of new taxes, including increases in stamp duty for high-end residential property buyers.

Some landlords will be hit with higher land tax in Thursday&#39;s state budget.

The new &#39;premium stamp duty rate&#39; will apply to all sales contracts signed after June 30, 2021, which will ensure many buyers will bring forward their purchasing to within the next six weeks.

The stamp duty measure will raise $761 million by adding a premium in stamp duty payments for property sold at more than $2 million.

[smartcode_project:default project_id=2772 project_image_fid=31753]

Sales over $2 million will be taxed with a stamp duty rate of 6.5 per cent for the value in excess of $2 million, up from the exisiting 5.5 per cent rate, ie a $3 million home purchaser will pay $175,000 up from $167,000, according to The Age who were given the pre-budget drop.

Premium landlords will contribute to the state&#39;s land tax revenue which is forecast to rise by more than 10 per cent, or $1.5 billion over four years.

Land tax will increase for all land holdings worth more than $1.8 million from next year, rising by 0.25 percentage points for land worth between $1.8 million and $3 million, and by 0.3 percentage points in excess of $3 million.&nbsp;

Apartment developers have slammed the increase in property taxes as likely to put the sector&rsquo;s fragile recovery in peril.

But developers face being hit with a new windfall gain tax on some land where rezoning had lifted property values, which could lead to longer term higher apartment and house and land prices in major projects.

[smartcode_project:default project_id=5234 project_image_fid=159015]

Rezoned land will be taxed from next year, netting a forecast $125 million over four years.&nbsp;

Any gains of more than $100,000 will be hit with developers and land speculators who reap windfall gains facing a 50 per cent tax if the gain is worth $500,000 or more.

&ldquo;These increases show a fundamental lack of understanding,&rdquo; Urban Development Institute of Australia, Victorian division, chief executive Matthew Kandelaars said.

&ldquo;With property taxes representing nearly 50c in every dollar of state government revenue, we&rsquo;d hoped that the days of the government turning out the pockets of homeowners were over,&rdquo; Mr Kandelaars said.

HIA executive director Fiona Nield said Victoria already had the highest stamp duty rates in the country.&nbsp;

&ldquo;The activity generated from residential development supports jobs and economic activity and is key to supporting all Victorians as the state recovers from the economic shock of COVID-19,&rdquo; she said.

There has been the suggestion the impact will be greater in regional Victoria, as some urban growth land in Melbourne may be exempted.

The windfall gain tax could hit landowners helping to grow housing supply.

Nield said &quot;new taxes like these are passed on in higher land prices for all and stamp duty inhibits people from selling properties to allow for new homes to be built - it has direct impact on new housing affordability.&quot;

REIV President, Leah Calnan said the tax hikes will make Victoria a less desirable place to invest, ultimately harming jobs and the economy.

&ldquo;The government continues to burden Victorians with increases to property taxes. Property already accounts for more than 40 per cent of government revenue. There is not much more capacity any one sector to absorb further tax burden,&rdquo; Ms Calnan said.

&ldquo;These sledgehammer taxes could cause a flight from property,&rdquo; she said.

The Victorian Government has revealed plans for stamp duty and land tax increases in its 2021-22 State Budget which the industry suggests will worsen housing affordability

jchancellor

Busy six weeks for premium apartment buyers to beat Victoria's stamp duty rise from June 30, 2021

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<h2>What is Stamp Duty?</h2>

Stamp duty, or land transfer duty as it’s known in Victoria, is a once-off government tax on buying property payed by the purchaser. It is based on the purchase price and calculated via a scale, in a similar manner to income tax.

However, these standard rates don’t apply to all property purchases, particularly first home owners and foreign buyers.

Pictured below is a full tabulation of how transfer duty is calculated in Victoria.

<img alt="" height="246" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/stamp_duty_guide_vic.jpg" width="786">

<h2>Stamp duty on foreign purchasers</h2>

However, these rates don’t apply to all buyers or all types of property purchases. Foreign purchasers often have to pay additional duty of up to seven percent.

You can read more about the stamp duty provisions affecting foreign purchasers on the <a href="https://www.sro.vic.gov.au/foreignpurchaser" target="_blank">State Revenue Office website</a>.

<h2>Stamp Duty exemptions for first home buyers</h2>

The Victorian government’s current policy as of 2017 is the complete exemption of stamp duty for first home owners purchasing a property valued at up to $600,000. A saving of up to $31,070.for first home buyers.

For first home buyers purchasing a home valued between $600,001 and $750,000 a concessional rate of stamp duty applies.

Unlike the NSW First Home Owner Grants (FHOG), the stamp duty concession and exemption apply to all property types.

<h2>Other Stamp Duty exemptions and concession</h2>

Victoria also provides a concession to all purchasers of properties valued between $130,000 and $550,000 from paying stamp duty where they intend to use that property as their principal place of residence.

The rate of concession equates to a one percent reduction for all properties valued between $130,000 and $440,000 and a flat reduction of $3,100 for properties valued between $440,001 and $500,000.

There is also a “principal place of residence (off the plan concession)”, which only people purchasing an off the plan property they intend to use as their home are eligible and a threshold applies to the dutiable value of the property. This is $550,000 for non-first home buyers and $600,000 (for an exemption) $750,000 (for a concession) for first home buyers.

The Victorian government also provides a stamp duty exemption to pensioners buying a home valued at under $330,000 and a concessional rate to pensioners buying a home valued between $330,001 and $750,000.

Below are some properties eligible for stamp duty exemptions in Victoria:

1. Melbourne Quarter, Docklands 
Address: 628 Flinders Street, Docklands VIC 3008 
One-bedroom apartment from $458,000

[smartcode_project:default project_id=3459]

2. Live City, Footscray 
Address: 124-188 Ballarat Road, Footscray VIC 3011 
Two-bedroom apartments from $460,000

[smartcode_project:default project_id=3565]

3. Melbourne Grand, Melbourne 
Address: 556-558 Lonsdale Street, Melbourne VIC 3000 
One-bedroom apartments from $489,000

[smartcode_project:default project_id=3490]

 

Click here to view <a href="/news/vic/save-thousands-melbourne-apartments-you-can-buy-without-paying-stamp-duty" target="_blank">six homes in Melbourne you can purchase without paying stamp duty</a>.
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Stamp duty, or land transfer duty as it’s known in Victoria, is a once-off government tax on buying property payed by the purchaser

Victorian Stamp Duty

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