Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Joel Robinson

Time & Place to take on Mosman apartment market

Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348840]

Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

[smartcode_project_cta:default project_id=136434]

Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

[smartcode_project:default project_id=342 project_image_fid=357506]

The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

2017 Budget

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The 2017 Federal Budget is expected to provide a shot in the arm for Australia’s $80 billion civil construction market, offsetting further declines in resources-related work, according to forecaster BIS Oxford Economics (BIS).
The total measured work done in the sector would fall to $79.5 billion through 2016/17, down 16 percent on the previous year and 41 percent off the 2012/13 peak of $135 billion, BIS said at the launch of its civil construction report, Engineering Construction in Australia 2017 – 2031. 
However, public sector-funded engineering construction to set to rise to more than $35 billion by 2018/19, almost 30 percent above its 2015/16 level, BIS said based on an analysis of current government spending programmes.
The government plans to spend $75 billion on development and upgrade of infrastructure, which includes a potential buy-out of the Snowy Hydro scheme from the states. Also included is a $20 billion rail line upgrade.
The surge in public sector-funded construction would offset further falls expected in privately funded engineering construction – particularly in the LNG-heavy oil and gas segment – keeping total engineering construction activity in the $75-80 billion per annum range.
“The boom in public infrastructure construction is exciting news as it helps drive a sizeable upswing in non-resources civil construction activity,” BIS senior manager of Infrastructure and Mining Adrian Hart said.
While state and territory governments provide the principal funding for infrastructure investment, the federal government plays an increasingly vital role in supporting state infrastructure programmes and funding nation-building infrastructure.
“This is evident in the sizeable investment plans presented in the 2017/18 Budget, including the ‘off Budget’ commitments to Inland Rail, the construction of Sydney’s second airport, and the ongoing rollout of the NBN,” Hart said.
The increasing use of ‘off Budget’ vehicles by the Federal Government for funding and delivering major infrastructure assets under-reports the true impact of Federal Government infrastructure spending in the Budget – particularly the reported National Partnership Payments to the State and Territory Governments which includes the $75 billion Infrastructure Investment Program (IIP) and Infrastructure Growth Package, he said.
“On first blush, the outlook for Federal infrastructure contributions to the States to 2020/21 is on a declining trend after 2017/18, with lower levels of funding for 2015/16 and 2016/17 compared to the previous Budget,” Hart said.
"However, Federal funding is now higher in the out-years compared to last year, and this does not take into account the sizeable equity contributions required to construct Inland Rail and the Western Sydney Airport, and complete the rollout of the NBN." 
Longer term risks remain to public infrastructure investment
However, there may be risks to longer term public infrastructure funding if the economy turn out weaker than expected by the federal government through the next four years, cautioned BIS.
“The economic forecasts presented in the 2017/18 Federal Budget are certainly rosier than ours,” said Dr Sarah Hunter, head of Australia Macroeconomics, BIS Oxford Economics. 
“Our main concerns are around the projected growth rate of household income and expenditure, which determine income tax and GST revenues. As these account for almost two thirds of total revenues, any miss on these projections will keep the budget in deficit beyond FY 2020/21. Without other spending cuts or tax rises, our forecasts suggest the budget will remain in deficit until at least the mid-2020s.”
In any case, BIS forecasts a downturn in public sector-funded engineering construction work in the early 2020s as a major program of road works, as well as the rollout of the NBN, winds down across the country.
“It will be hard for State and Federal governments to sustain these higher levels of public infrastructure investment in the long term,” said Hart. “Governments must continue to implement sensible tax and expenditure reforms to ensure sustainable funding for infrastructure, as well as maintaining a long term pipeline of productive projects, if a sharper downturn in publicly funded work is to be avoided.”
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Federal Budget to drive 30 percent rise in public infrastructure construction: BIS

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Investors in residential property, particularly strata units, will be hit hard after the budget announcements, according to quantity surveyors Leary &amp; Partners.
The budget has stripped investors buying second-hand residential properties of a major tax deduction, said quantity surveyor and tax law expert Kaylene Arkcoll. 
Pre-budget there was much speculation about limits on negative gearing, but the government unexpectedly announced it was restricting depreciation claims by investors.
"Purchasers of second-hand residential investment units have lost their ability to claim depreciation on plant and equipment which is part of the property at the time of purchase,” said Arkcoll, saying it was one of the standard forms of residential investment deduction.
The government will limit plant and equipment depreciation deductions to outlays actually incurred by investors. There is no lead-time with these changes and apply to all contracts after Budget night.
The change is forecast to save $260 million dollars over the next four years.
Depreciation claims on investment properties is a powerful driver for most investors, said Arkcoll. 
For second-hand residential properties, the budget blocks this avenue of investment joy for everyone except investors who carry out renovations or replacements. 
"Older building stock may now be less desirable,” said Arkcoll. 
Under new rules coming into effect from July 1, depreciation deductions for plant and equipment items such as washing machines and ceiling fans will only be allowed if the investor actually bought them. It is described as an “integrity measure" and is intended to address concerns that items are being claimed as tax write-offs by successive investors in excess of their actual value.
The changes will apply to any items purchased after budget night, May 9, but existing investments will be grandfathered.
Details of the policy are still limited but Arkcoll said that it appears that:
- The intent of the policy is to restrict depreciation claims to items purchased and installed in the property by the claiming taxpayer. 
- Depreciation deductions will remain available for items that are part of a new property purchased from a developer, although this is not explicitly stated in the budget papers. 
- Subsequent purchasers of the property will no longer be able to claim depreciation based on the second-hand value of the plant and equipment.  
- Taxpayers already depreciating plant and equipment can continue to claim deductions in the current manner.
"The removal of depreciation claims will have a double impact on strata property owners", she said.
"They will lose both the claim for depreciable items inside their unit and depreciation of their share of common plant and equipment. This will mean a reduction in annual tax deductions that in the early years of ownership range from approximately $3,000 for a simple unit to over $40,000 for an upmarket unit in a high-rise development."
She said that till more details are available, i.e. when the draft legislation is released, it would be difficult to fully assess the ramifications of the budget announcement. 
"The elephant in the room remains the government's ability to pass such a substantial change through a volatile senate,” Arkcoll said.
"Thankfully, there has been no change to the 2.5 percent Division 43 construction allowance which applies to most properties constructed in the past thirty years.”
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Investors to be hit hard by budget depreciation rules: Leary & Partners 

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GUEST OBSERVER
With so much debate about housing affordability it was always going to be the case that the 2017 budget included key policies aimed at improving the affordability of housing and addressing some of the systemic issues that have pushed housing prices out of reach for many Australians.
At face value, the budget measures present a good attempt at improving housing supply while softening some of the incentives stoking housing demand.  From a housing perspective, key elements of the budget can be divided into polices that influence supply or demand.
From a supply perspective, the government has announcedIncentives for downsizers – proceeds from the sale of the family home can be contributed to superannuation, capped at $300k.
The National Affordable Housing Agreement which currently exists between the states and federal government will be maintained, but the rules of how the $1.3 billion is used will be tightened to ensure states deliver adequate new public housing supply and reform the urban planning framework.
Federally owned land that is available for development will become more transparent via an online register.  Additionally, surplus land holdings will be offered up for residential development with a high profile parcel of land in Melbourne’s Maribyrnong offered as the first example.
A new City Deal has been announced for Western Sydney that will help to support strong population growth via a coordinated funding approach with state and local governments.
The budget has outlined a national $70 billion spend on transport infrastructure through to 2021 (a $50b increase from the last budget). Investment in better transport has the dual benefit of creating jobs and improving productivity as well as linking regions with affordable housing to employment nodes and social precincts. 
Funding for community housing has seen a substantial boost with the establishment of the National Housing Finance and Investment Corporation – a bond aggregator designed to source funds for lending to community housing organisations at lower interest rates on longer terms.
From a demand perspective there have been several policy announcements aimed at reducing housing demand from key areas.
First home buyers have been given a leg up to assist with saving for a deposit via a new First home super savers scheme whereby they can salary sacrifice their income directly into the same account as their superannuation capped at $15k per annum and a total of $30k total.
Investment demand will see some further dampening via changes to what expenses can be claimed. Investors can no longer include travel associated with their investment property and they cant claim depreciation on ‘plant and equipment’ such as the dishwasher, oven and hot water system.  Outside of these changes, negative gearing the capital gains tax concession remains untouched.
Foreign buyer demand could be dampened as well, with the budget announcing a new $5000 levy on foreign owned properties that left vacant for at least six months over a year as well as ensuring foreign buyers are exempt from any capital gains tax concessions. Additionally, developers can’t sell more than half of a development to foreign buyers.
FIRST HOME BUYERS
First home super savers scheme will help prospective first time buyers to save for a deposit, utilising a salary sacrifice arrangement directly into their super fund which will attract the same tax concessions as superannuation donations (15 percent tax rate). 
Savers can add an additional $15,000 per year or $30,000 in total.There was some risk that a demand side policy aimed at first home buyers could further fuel price growth by adding to demand, however this scheme is likely to improve demand gradually and incentive a savings strategy which is a positive outcome for first home buyers and the housing market. 
Question marks remain around how much it will help potential first home buyers in markets like Sydney and Melbourne where the market is moving swiftly but it should assist first home buyers elsewhere.
INCENTIVISING DOWNSIZERS
Home owners aged 65+ can now make non-concessional contributions up to $300,000 into superannuation from the sale of their principal place of residence which has been owned for at least ten years.  These contributions will be outside of the existing caps.This budget policy is aimed at freeing up established housing supply into the market and encouraging long term home owners who are seeking to downsize, while also having the dual effect of allowing retirees to free up equity held in their home.
The policy should add a further incentive for downsizers, however it’s also important that these long term home owners have an appropriate downsizing option to move to. Downsizers will often prefer to stay within their local neighbourhood.
Another barrier is that by cashing in their equity, some downsizers may no longer be eligible for a pension, which is means tested (the PPR is excluded from the assets test).
The other major barrier is stamp duty payments which will continue to add a disincentive to downsizing.
TWEAKS TO NEGATIVE GEARING POLICY
Investors can no longer claim travel expenses as part of their investment expenses. 
Additionally, investors can only claim deductions related to plant and equipment expenses that they have incurred directly rather than claiming expenses incurred by previous owners.
Removing travel to an investment property as a claimable expense will impact those investors with properties in regional areas or in locations that are distant from where the investor lives. 
Regional areas may be disadvantaged by this new policy, however the impact on investment demand is likely to be minimal. This is likely a response to a perception that some investors are claiming travel expenses that may be more related to personal usage rather than legitimate expenses related to their investment.
The changes to plant and equipment deductions could be more material, as it effects an investor’s ability to depreciate things such as appliances &amp; utilities (oven/dishwasher/hot water system etc) if these items were purchased by the previous owner. There could be the potential that this policy encourages investors to renovate established homes rather than purchase recently built product where they won’t be able to realise the depreciation benefits of recently installed appliances.
The 2014-15 taxation statistics show that $3.013 billion in capital works deductions were claimed. We also know that investors overwhelmingly prefer to buy established rather than new stock so this could have a significant impact on the attractiveness of second-hand investment properties and may contribute to an overall slowing in investor demand. From a rental market perspective it may provide better outcomes with owners more prepared to invest in upgrading their properties for the depreciation benefits.
FOREIGN BUYERS
Foreign owners who keep their property vacant for at least six months a year will face a levy of at least $5,000 per annum. 
Developers will be restricted in the proportion of stock that can be sold to foreign buyers.  Going forward, projects can’t have more than 50 percent of stock sold to foreign buyers.
Capital gains tax rules will be strengthened to ensure the risk of foreign buyers avoiding capital gains tax is reduced. Foreign or temporary residents will no longer be able to claim the main residence capital gains tax exemption.This $5,000 vacancy levy is aimed at ensuring foreign investors are actually contributing to housing supply and not simply offshoring their capital with no intention to occupy or lease the dwelling. The additional levy isn’t likely to act as a major disincentive to foreign investment, however the policy could be difficult to monitor and enforce.
The second part of foreign investment policy is more significant and will impact on those developers who sell a large proportion of their stock via roadshows through Asia and other regions or who rely on foreign marketing networks to sell their stock. 
Attracting domestic demand to some high-rise unit projects that have been designed specifically for foreign buyers may not have market appeal domestically.  New unit approvals have already fallen dramatically and these changes may compress new approvals further as developers struggle to achieve the required number of presales to commence construction.
Tightening the taxation rules on foreign owned property is a logical move, ensuring foreign owners pay the full rate of capital gain tax without the concession that would normally apply to Australian residents who have held their property for at least 12 months.
SOCIAL / COMMUNITY HOUSING
A new bond aggregator model will be set up via a newly established National Housing Finance and Investment Corporation with the objective being to provide finance for the community housing sector at lower interest rates over long lending terms.This policy is likely to be based on existing frameworks in the UK and Switzerland. 
The aim here is to source funding for community housing from the bond market rather than through more expensive lending arrangements via the banking sector.  
Funds would be lent to community housing providers at lower interest rates and over longer terms in an effort to support more housing options under affordable rental or purchase arrangements. 
This initiative is likely to be welcomed by community housing providers and should go a long way towards improving the amount of social housing being developed.
RE-JIGGING THE NATIONAL AFFORDABLE HOUSING AGREEMENT
Currently, states are funded with $1.3 billion each year which is to be used by them to support affordable housing initiatives.  Under the new budget policy, the funding will remain the same, however the rules will be tightened to ensure states meet agreed housing supply targets and work towards reforming town planning. This is one of the most legitimate ways the federal government can establish an affordable housing framework in conjunction with the states. 
The funding is substantial, but in the past there is the perception the funds have not been well spent with little visible benefits to public housing additions and improved housing affordability.
The new policy, may promote proper usage of the federal funding and ensure town planning reforms improve strategic land usage and land release. Firm targets around the amount of new supply and town planning reform will need to be set in transparent and achievable terms for this policy to be successful.
FACILITATING LAND RELEASE
An online Commonwealth Land Registry will be created which provides details on government owned sites that can be made available for residential development. 
Releasing suitable surplus Commonwealth land starting with 127 hectares of Defence land in Maribyrnong (Melbourne), which could support up to 6,000 new homes.
A new ‘City Deal’ for Western Sydney aimed at improving the town planning regime across 9 council areas of Western Sydney.Providing more transparency around federal government land holdings that are available, and in fact, promoted as developable for residential housing will be a welcome improvement in urban planning.  It shows the federal government is serious about offloading surplus land and ensuring it used for the highest and best use. The announcement of the Maribyrnong land release is significant, considering its proximity to Melbourne’s CBD and potential for a significant uplift in housing supply in a strategic location. 
‘City Deals’ have previously been signed in Townsville and Launceston with an aim to provide a long term commitment between the three levels of government to deliver strategic outcomes (new infrastructure, more jobs and facilitate growth) for the residents of the area. The City Deal funding announced for Western Sydney should provide a long term strategy for managing the high rate of projected population growth across this region of Sydney.
INFRASTRUCUTRE INVESTMENT
The budget has outlined a national $70 billion spend on transport infrastructure through to 2021 (a $50b increase from the last budget).
Significant spends include:
<ul>
<li>$5.3b to build the first stage of the Western Sydney ‘Badgerys Creek’ Airport.</li>
<li>$8.4b to build the Inland Rail project.</li>
<li>$75 billion for road and rail funding over 10 years</li>
<li>$10 billion for a National Rail Program aimed at improving urban and regional rail over a 10 year period.</li>
<li>$1 billion for infrastructure spending for Victoria, including $500m for regional rail, $30m for airport rail link planning and a further $20.2 million for Murray Basin rail.</li>
<li>$844m for Queensland Bruce Highway upgrades.</li>
<li>$700m for WA’s Metronet rail project</li>
<li>$2.9b for the Western Sydney Infrastructure Plan</li>
</ul>
Additionally, $1b a National Housing Infrastructure Facility over 5 years to support local governments through a range of options to finance critical infrastructure.   Overall, spending on infrastructure is stimulatory to the economy, having the dual effect of creating jobs and improving productivity. 
Many areas where housing and land is more affordable are poorly connected by efficient transport linkages, and the higher budgeted spend on transport infrastructure will go a long way towards linking these areas with more efficient transport and making these outer fringe areas more desirable to home buyers.
In addition to the budget policy announcement around housing and housing affordability, there have also been important announcements around the banking sector.
New legislation will expand APRA’s remit to include non ADI’s. This is likely to be an effort to get some risk minimisation and regulation around the non-banking / shadow banking sector which has become more active since APRA stepped up their regulatory changes aimed at slowing investment demand.
These changes could make it harder for investors, foreign buyers and businesses, who are being turned away from the major banks, to fund their property purchases.
Additionally the budget announces a 6 basis point levy on funding of banks with at least $100m in liabilities (Big 4 plus Macquarie) which is budgeted to raise $1.5 billion per year over the next four years for the federal gov.  Labour has already announced they would support this policy.  The likelihood is that this additional cost could push mortgage rates slightly higher as banks look to recoup the costs.
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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2017 Budget

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