Gold Coast developer&nbsp;<a href="https://www.apartments.com.au/developers/big-projects">Big Projects</a> has secured approval for its second Mermaid Beach project.

The developer, currently selling <a href="https://www.apartments.com.au/new-apartments/the-frederick-mermaid-beach-2265-gold-coast-highway-mermaid-beach-qld-4218">The Frederick in Nobby Beach</a>, has secured approval for its next project just 1.5 kilomnetres up the road.

The new development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/glenelg-residences-2462-2472-gold-coast-highway-mermaid-beach-qld-4218">Glenelg Residences</a>, has been designed by BDA Architecture and&nbsp;will have just under 100 apartments across an 11-storey building&nbsp;at 2462–2472 Gold Coast Highway, on the corner of Glenelg Avenue just under 300m from the future Mermaid Beach Light Rail stop.

The apartments, a mix of two- and three-bedrooms, will sit above a retail-focused ground plane and under extensive rooftop resident amenities.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screen%20Shot%202024-06-11%20at%209.55.04%20am.png?VersionId=z6NV4izeuvhBSSVlY6vK6TPO1LxrFeaG" />

BDA said in its planning submission that the project is intended to support the area’s transition toward higher-density, mixed-use living. “This project offers the opportunity to generate appropriate higher-intensity development within the future Light Rail corridor of <a href="https://www.apartments.com.au/developments/mermaid-beach-qld-4218">Mermaid Beach</a>,” the submission noted.

At ground level, Glenelg Residences will include eight retail tenancies designed to activate the street frontage, complemented by a basement bar offering an additional hospitality element. Above, residents will have access to a rooftop amenity deck featuring an infinity pool, hot and cold plunge spas, day beds, and barbecue facilities.

The architectural approach adopts a restrained material palette of brick, textured concrete, and integrated landscaping, with cantilevered concrete frames and cascading planting intended to soften the built form. BDA described the design as aiming to create “a memorable sculptural mid-rise mixed-use building” that responds to both its coastal setting and urban context.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-11%20at%209.55.45%20am.png?VersionId=cpjIVBqcT_sujmo2UMWkVyLcQ7WGJHaQ" />

The approval comes as the City of Gold Coast continues to plan for significant population growth, with regional targets requiring more than 100,000 new high-density dwellings by 2046.

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Big Projects, led by Matthew and John Barrett, is part of a growing cohort of developers that deliver construction in-house, providing a high level of confidence to prospective purchasers.
</section>

[smartcode_project_cta:default project_id=150260]

Joel Robinson

Big Projects secures approval for Glenelg Residences in Mermaid Beach

Sherpa Group is ramping up its investment in the southern Gold Coast by lodging a development application for <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, a new $350 million project in Coolangatta.

The move comes after the group’s $27 million acquisition of the 2,029 sqm site on the corner of Griffith and Warner Street, last year.

They will develop 194 apartments across a 26-storey tower, which will become Sherpa’s largest project to date.

Viveré will be the next chapter in the Flourish story, following closely behind Amargo, Oasis, and the Avenues in Palm Beach, as well as Symphony in Brisbane, all designed to deliver affordable housing in lifestyle-rich locations, giving locals a real chance to secure a residence close to the beachfront.

The HAL Architect-designed project will offer a diverse range of residences, from one-, two, and three- bedroom apartments to the premium Canopy range to luxury penthouses.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c85f5a7e-a22f-4745-8def-400adb3c0b35" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.43%E2%80%AFAM.png?VersionId=OY.chur3BPExn1exQ2q8clHqWnW_CaBi" />

“The Gold Coast is undergoing a period of immense growth, with more people drawn to the incredible 
lifestyle that’s available, leading to strong growth in property prices,” said Christie Leet, founder of Sherpa 
Group.

“Our goal at Sherpa is to ensure locals are not priced out of the market in prime locations, which is why we 
created the Flourish collection.

“Flourish Vivere will form the next chapter in our portfolio, and we are so excited to be lodging the DA, marking our first project in Coolangatta.”

A signature of the Flourish developments is the communal rooftop. Flourish Vivere will showcase a private resident’s lounge, outdoor dining with barbecues and pizza ovens, heated pool, fully-equipped gym, and a wellness centre with sauna and steam room.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c09372cc-aae6-4458-af2e-f291bd19a5e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.49%E2%80%AFAM.png?VersionId=Sc_RLXl5jiff.tnadogXjQJ_WIpDjf3p" />

The project is strategically located to offer a walkable lifestyle, with the Strand shopping centre, cafes, restaurants, shops and the beach, all just a short stroll away.

“We have meticulously planned Vivere to build on the Flourish legacy, creating a truly special project,”&nbsp;Leet added.

“Wellness, lifestyle and community are at the forefront of every decision we make, and that has not 
changed for Vivere.”

With the DA now lodged with the Gold Coast City Council, Sherpa has moved quickly to secure LPS Group as the builder, offering buyers a level of certainty that is rarely seen in today’s market.

Sherpa has delivered 16 residential projects over the past seven years with a pipeline of $1 billion, with more under construction.

Sherpa takes Flourish brand to Coolangatta, lays plans for Flourish Vivere 

S&amp;S Projects is boosting its investment at Rainbow Bay to more than $1 billion after the prolific Gold Coast developer acquired a new site for $20.25 million and immediately laid plans for a new luxury apartment project in the sought-after precinct.

The site, which is the company’s fifth acquisition at Rainbow Bay in the past four years, will be home to the company’s largest project to date after delivering 3 sold-out projects and construction progresses on Radia worth a combined $215m. 
S&amp;S Projects is currently finalising plans for its latest strategic acquisition, a 1,518 sqm site located 209-213 Boundary Street in Coolangatta, with a development application expected to be lodged within weeks.

The luxury residential development will build on the company’s highly successful projects at Rainbow Bay, comprising Flow, Awaken, Esprit and Radia, with Radia currently under construction by Hutchinson Builders.

“We have been unflinching in our commitment to Rainbow Bay and the transformation we have helped drive in this incredible part of the Gold Coast, which is among the city’s most desirable residential locations,” said S&amp;S Projects founder and director Paul Gedoun.

“Our fifth project will reflect the best of what we have done so far to create a lifestyle precinct that is second to none.”

The latest development, which has yet to be named, is proposed to accommodate 88 luxury apartments in a design that will immerse residents in a unique wellness lifestyle that expands on the legacy of S&amp;S Project’s earlier developments at Rainbow Bay.

The development will feature an expansive rooftop garden and wellness centre with a resort- style pool, among a host of lifestyle amenities planned for residents.

“Rainbow Bay, with its beautiful, protected beach and alongside one of the world’s best surf breaks at Snapper Rocks, is the natural wellness heartland of the Gold Coast,” said Gedoun.

“We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden.”

The latest acquisition comes as S&amp;S Projects is at the completion of Esprit and construction continues on Radia, which are part of their significant portfolio undertaken by the company at Rainbow Bay since 2022.

The $215 million Radia, which comprises 38 apartments, is currently the flagship development by S&amp;S Projects at Rainbow Bay which is expected to be completed in 2027.

Jayde Pezet, of Pezet Matheson, which has managed sales and marketing for S&amp;S Projects across their Gold Coast portfolio, emphasised the developer’s commitment to continuous improvement and excellence.

“S&amp;S Projects continue to elevate the benchmark of luxury with each development," Pezet said.

“We have worked with S&amp;amp;S on their 4 other projects in Rainbow Bay and their approach reflects a team that is constantly learning, refining, and pushing the standard higher.

“Their hyper-local knowledge and deep expertise within the luxury property sector are what truly set them apart, allowing them to deliver projects that feel both globally sophisticated and authentically connected to their coastal environment”

S&amp;S Projects plans to officially launch its latest project at Rainbow Bay in the second half of this year.

“As we embark on our largest project yet, we have pulled out all stops to create another landmark development that truly reflects the relaxed southern Gold Coast lifestyle,” Gedoun added.

S&S buys $20m Rainbow Bay site for fifth beachside apartment project

Japandi, an emerging design trend that combines Scandinavian functionality with Japanese rustic minimalism, remains relatively untested in Australia’s residential development market.

As developers look to differentiate their projects and offer something distinct to buyers, Brisbane-based developer Lantona has embraced the hybrid style for its recently launched Toowong apartment project, <a href="https://www.apartments.com.au/new-apartments/koya-residences-6-josling-street-toowong-qld-4066">Koya Residences</a>, with early response to the design proving positive.

Lantona entrusted Red Door Architecture and interiors practice Luma Design Co with delivering the Japandi brief. The approach blends Japanese minimalism with Scandinavian functionality, emphasising warm, restrained interiors, natural materials and clean lines. Drawing on the Japanese concept of wabi-sabi (beauty in imperfection) and the Scandinavian principle of hygge (comfort and cosiness), it creates serene, uncluttered and sustainable living environments.

These design principles are expressed throughout the Josling Street development, both in its exterior form and across the 40 one-, two- and three-bedroom residences within.

[smartcode_project:default project_id=150787 project_image_fid=366229]

Koya reflects a deliberately scaled approach, with the five-storey form designed to align with the surrounding residential streetscape rather than dominate it.

“Koya is conceived as a building that sits comfortably within its surroundings. Every decision, from material selection to spatial planning, has been guided by long-term liveability and enduring relevance,” the developer said.

[smartcode_project:default project_id=150787 project_image_fid=366243]

Positioned within an established inner-west neighbourhood, the development sits near riverfront parklands and the Bicentennial Bikeway, while remaining within walking distance of Toowong Village and multiple public transport options connecting to the CBD, St Lucia and West End.

Lantona said the location was central to the project’s conception, pointing to Toowong’s balance of green space, transport access and proximity to major education institutions.

“<a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> combines river access, walkability, immediate CBD connection and a strong educational presence. That balance made it the obvious setting for Koya.”

[smartcode_project:default project_id=150787 project_image_fid=366230]

Communal amenity is concentrated on the rooftop, where a shared retreat will include a pool, dining areas and outdoor spaces oriented towards neighbourhood and city views. The design allows for both private use and small gatherings, extending the living environment beyond individual apartments.

Koya enters the market at a time when smaller-scale developments are becoming less common in established suburbs, with many recent projects in the suburb shooting for the sky.

In a nod of confidence,&nbsp;<a href="https://www.apartments.com.au/builders/brisbane-builders">Brisbane Builders</a>&nbsp;has already commenced construction on the building, which is slated for completion in early 2027. Keenan &amp; Byrne is marketing Koya.

[smartcode_project_cta:default project_id=150787]

Japandi-inspired Koya Residences launch in Toowong

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A completed Castle Hill apartment development is returning to market with an uncommon level of financial backing, positioning it as one of the more secure options for buyers in Sydney’s north-west.

Skyview in Castle Hill, originally developed by Top Place and now overseen by capital partner <a href="https://www.apartments.com.au/developers/equitifund-group">Equitifund</a>, is being relaunched following a full remediation process. Central to its repositioning is a substantial financial reserve designed to provide ongoing protection and reduce uncertainty for incoming purchasers.

At the core of this offering is an $11 million bond secured during the project’s remediation phase, negotiated by former NSW Building Commissioner David Chandler. With less than $4 million required to complete the works, approximately $7.2 million remains in reserve, with around 15 years left on the term.

[smartcode_project:default project_id=147685 project_image_fid=359134]

Rather than a typical insurance-backed structure, the remaining funds are held as cash, creating a readily accessible financial buffer should any future building issues arise. The structure is intended to provide buyers with an added layer of certainty, differentiating the development from more conventional apartment offerings.

Equitifund Executive Chairman Greg Huxley said the structure provides a level of security not typically seen in apartment developments.

“The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers,” Huxley said.

“Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind.”

[smartcode_project:default project_id=147685 project_image_fid=359135]

The remediation process has now been completed in full, with no active rectification orders or outstanding directives linked to the project on NSW Government registers. This outcome reflects the broader tightening of building oversight across the state, while also highlighting the project’s transition into a completed, compliant asset.

In a market where many buyers remain cautious about apartment quality, initiatives like this are designed to restore confidence, giving purchasers greater certainty and a stronger sense of security in their investment.

Equitifund has since acquired the remaining apartments and is managing their reintroduction to the market. With the works finalised and a significant financial reserve in place, the project now presents with a markedly different risk profile compared to its initial release.

[smartcode_project:default project_id=147685 project_image_fid=359137]

Beyond the added security, the development is positioned in one of Castle Hill’s more established pockets. The Gay Street address places it within close proximity to Castle Towers, one of the country’s largest retail centres, as well as Castle Hill Metro Station, which now connects directly to the broader Sydney Metro network.

Equitifund National Sales Director Ben Hamblett said buyer demand in the area continues to be driven by access to transport and amenity.

“Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre,” Hamblett said.

“There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living.”

[smartcode_project:default project_id=147685 project_image_fid=359145]

The apartments also enter the market at a relatively accessible price point for the area, with two-bedroom configurations starting from $995,000 and rental demand for similar stock reaching around $900 per week. This combination of pricing, connectivity, and completed status is expected to appeal to both owner-occupiers and investors seeking lower-risk entry into the Hills District apartment market.

For eligible buyers, a limited 3.50 per cent p.a. two-year fixed interest rate is currently available through Equitifund’s lending partners, providing an additional layer of affordability.

EquitiCredit Pty Ltd ACN 676 363 769 holds ACL 559289 and provides credit assistance. Finance is arranged through EquitiCredit and funded by its lending partners. Interest rates are subject to change and eligibility criteria apply. Terms, conditions, fees and charges may apply. This is not financial advice and should not be relied upon as such. Prospective buyers should seek independent financial advice.

[smartcode_project_cta:default project_id=147685]
</section>

Castle Hill apartments offering unmatched buyer protection through dedicated fund

Apartment Affordability

Melbourne apartments values spiked over October, performing&nbsp;as well as the city&#39;s house market&nbsp;over the month, according to the monthly Hedonic Home Value Index by CoreLogic.

Apartment values rose one per cent, their highest rise since CoreLogic&#39;s May report, when there was one per cent gains over the April

Melbourne&#39;s rolling quarterly gains are now at 1.7 per cent,&nbsp;following 0.2 per cent gains over September and 0.5 per cent over August.

[smartcode_project:default project_id=2806 project_image_fid=175415]

Across 2020, Melbourne apartment values were flat, and so far in 2021 they&#39;ve grown 7.8 per cent, to a new median $621,000. The median at the start of the year was $576,000.

It&#39;s another month of gains for Melbourne apartments, which haven&#39;t seen a decline in 2021 despite the continued shutdown of immigration due to border closures.

The narrowing gap between house and unit performance comes as house affordability reaches record levels. Over October, that gap only widened across Sydney and Brisbane, with all the rest of the capitals seeing units either perform better, or the same, as houses over the period.

[smartcode_project:default project_id=2929 project_image_fid=137895]

&ldquo;As housing becomes less affordable, we expect to see more demand deflected towards the higher density sectors of the market,&quot; CoreLogic&#39;s research director, Tim Lawless, said.&nbsp;

&quot;House prices continue to outpace wages by a ratio of around 12:1,&quot; Lawless noted.

&quot;This is one of the reasons why first home buyers are becoming a progressively smaller component of housing demand.&quot;

[smartcode_project:default project_id=1260 project_image_fid=177965]

Lawless&nbsp;expects the flick to higher density&nbsp;to occur most prevalently&nbsp;in Sydney than anywhere else in the country. The gap between the median house and unit value is now nearly $500,000. In Melbourne it&#39;s around $350,000. Melbourne&#39;s house median was $972,000 after the one per cent October gains.

&quot;With investors becoming a larger component of new housing finance, we may see more demand flowing into medium to high density properties,&quot; Lawless added.

&quot;Investor demand across the unit sector could be bolstered as overseas borders open, which is likely to have a positive impact on rental demand, especially across inner city unit precincts.&rdquo;

National rents were up 0.7 per cent&nbsp;in October, roughly equivalent to the September&#39;s 0.6 per cent rise.

Apartment values rose one per cent, their highest rise since CoreLogic's May report, when there was one per cent gains over the April.

Melbourne apartment insights: What happened to Melbourne apartment values over October?

Melbourne&#39;s apartment values continued to grow over September, posting 0.2 per cent gains according to the property data firm CoreLogic&#39;s monthly index.

It&#39;s another month of gains for Melbourne apartments, which haven&#39;t seen a decline in 2021 despite the continued shutdown of immigration due to border closures.

Across 2020 Melbourne apartment values were flat, and so far in 2021 they&#39;ve grown 6.8 per cent, to a new median $619,000. The median at the start of the year was $576,000.

Housing affordability continues to worsen nationally, as houses in most of&nbsp;the major capitals outstripped the growth in the apartment market, the exceptions being Hobart and Darwin.

[smartcode_project:default project_id=100322 project_image_fid=163026]

CoreLogic&rsquo;s national home value index saw dwellings (houses and units combined) jump&nbsp;another 1.5 per cent&nbsp;in September, taking Australian housing values 17.6 per cent higher over the first nine months of the year and 20.3 per cent&nbsp;higher over the past 12 months. The annual growth rate is now tracking at the fastest pace since the year ending June 1989.

Despite the prolonged growth of dwelling prices, the growth has eased back slightly from the peak growth rate in March nationally dwelling values increased by 2.8 per cent.

CoreLogic&rsquo;s research director, Tim Lawless, believes the slowing growth conditions are the result of higher barriers to entry for non- home owners along with fewer government incentives to enter the market.

[smartcode_project:default project_id=8082 project_image_fid=59639]

&ldquo;With housing values rising substantially faster than household incomes, raising a deposit has become more challenging for most cohorts of the market, especially first home buyers,&quot; Lawless said.

&quot;Sydney is a prime example where the median house value is now just over $1.3 million. In order to raise a 20 per cent&nbsp;deposit, the typical Sydney house buyer would need around $262,300.

&quot;Existing home owners looking to upgrade, downsize or move home may be less impacted as they have had the benefit of equity that has accrued as housing values surged.

The number of owner-occupier first home buyer loans has fallen by -20.5 per cent between January and July, as the impact of the tapering of government stimulus continues to show.

[smartcode_project:default project_id=107514 project_image_fid=170768]

Lawless notes that over the same period,&nbsp;the number of first home buyers taking out an investment housing loan has increased, albeit from a low base, by 45 per cent.

&quot;This suggests more first home buyers are choosing to &lsquo;rent vest&rsquo; as a way of getting their foot in the door,&rdquo; Lawless said.

The September quarter saw unit values rising faster than house values across regional Australia.

&quot;This is probably a reflection of stronger demand for downsizing options and holiday homes in popular coastal markets,&rdquo; Lawless suggested.

[smartcode_project:default project_id=5559 project_image_fid=88243]

Investors are back looking at the local apartment market. Unit rents now rising faster than houses across Melbourne (1.3 per cent for units, 1.1 per cent for houses).

&ldquo;This is a significant change in rental market trends, where previously the unit precincts, especially inner-city high-rise areas of Melbourne and Sydney, were acting as a drag on rental growth,&rdquo; Lawless said.

Yields are low in the major capitals, however so are investor mortgage rates, Lawless notes.&nbsp;

&quot;In July, the average three-year fixed rate for a new investor loan was 2.38 per cent, while variable rates were averaging 3.01 per cent.&quot;

[smartcode_project:default project_id=3459 project_image_fid=147572]

Lawless says the coming months are likely to see advertised stock levels move higher.

&quot;The spring selling season has been delayed to some extent by lockdowns in Sydney, Melbourne and Canberra, however the recent trend has shifted towards a rising number of new listings.

&quot;As demand becomes more constrained from worsening affordability and potentially tighter lending conditions, advertised stock levels may start to normalise over the final quarter of the year.

&quot;This could take further heat out of the market as buyers benefit from more choice and less urgency.&quot;

The number of owner-occupier first home buyer loans has fallen by -20.5 per cent between January and July, as the impact of the tapering of government stimulus continues to show

Melbourne apartment insights: What happened to Melbourne apartment values in September?

Apartment values across Melbourne rose 0.5 per cent over August, according to the latest data released by property data firm CoreLogic.

The&nbsp;August gains put apartment values up 1.6 per cent over the quarter, after 0.4 per cent growth over July and 0.8 per cent in June.

Over the year to date, values are up 6.6 per cent, with the median now sitting at $615,909. The median apartment price at the start of 2021 was $577,000.

[smartcode_project:default project_id=5328 project_image_fid=163914]

Melbourne house values rose 1.4 per cent over August, marking another month where house performance continues to outstrip apartments, although the gap is starting to narrow given renewed housing affordability constraints.

Throughout the first quarter of the year, capital city house values were rising approximately 1.1 percentage points faster than units each month. By August the average performance gap reduced to 0.7 percentage points.

CoreLogic&#39;s research director Tim Lawless believes the convergence of growth in house values and unit values could be another demonstration of affordability becoming more challenging.

[smartcode_project:default project_id=103179 project_image_fid=167471]

&ldquo;The narrowing gap between house and unit value growth is most noticeable in Australia&rsquo;s most expensive city, Sydney, where the monthly growth rate for houses was 2 percentage points higher than units in March.

&quot;That &lsquo;gap&rsquo; has now reduced to 0.6 percentage points in August.

&quot;Based on median values, Sydney units cost almost $470,000 less than a house. At the same time, the growth gap between houses and units in Melbourne and Brisbane has widened.&rdquo;

Unit rents are starting to rise in Sydney and Melbourne, which is a good metric for investors to follow. Australia&#39;s two biggest capitals were the hardest hit by the strict border closures and lack of international migration.

[smartcode_project:default project_id=100675 project_image_fid=170523]

Nationally, rents have lifted by 8.2% over the 12 months ending August, the largest rise in rents since 2008.

&ldquo;The weaker trend in unit rents across Australia&rsquo;s two largest cities is likely a reflection of their greater exposure to temporary overseas migrants as a source of rental tenancy, especially foreign students who would normally underpin inner city high rise rental demand, Lawless says.

&quot;The sharp drop in demand due to closed borders has been exacerbated by high supply levels as both cities come out of an unprecedented surge in inner city apartment construction,&rdquo; Lawless added.

Sydney unit rents have consistently risen each month during 2021, while in Melbourne, unit rents have been rising since June.

Unit rents are starting to rise in Sydney and Melbourne, which is a good metric for investors to follow

What happened to Melbourne apartment values over August?

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New research has ranked Sydney as one of the most unaffordable cities in the world – with Melbourne not far behind.
Property research firm RiskWise  places Sydney second on its analysis and Melbourne 11th.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/3/Unit%20unaffordability%20-%20World_MEL.jpg" alt="" style="font-size: 12.16px;">
RiskWise CEO Doron Peleg said that the analysis looked at only units 105 square metres in size and not average-sized dwellings, like the Annual Demographia International Housing Affordability Survey does.
“The problem with Demographia's method is that it does not compare apples to apples,” Peleg said.
The Demographia survey ranked Hong Kong as the world’s least affordable city, followed by New York, Tokyo and London with Sydney was ranked 9th and Melbourne coming in at No.11.
Peleg said that in Hong Kong the average-sized unit is only 46 square metres, while in Sydney it is 105 square metres.
“Sydney and Melbourne are not as bad as first thought when compared to other cities,” he said.
“And yes, while in general families cannot afford a 105 square metre unit, the situation in other places is significantly more serious.
“Both Sydney and Melbourne, as global cities, could potentially be even less affordable.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/3/Unit%20unaffordability%20-%20AUS.jpg" alt="">
Peleg said that Victoria was ranked as more affordable sue to the greater supply of units and less capital growth.
"However, while in the last five years capital growth of units has been good, it has not been as good as Sydney,” stated Peleg.
Sydney prices have fallen 4.5% year on year, while Melbourne prices have also decelerated as lending restrictions and the Banking Royal Commission has clamped down on the market.
"The needs of families differ from those of singles and couples and many new apartments are not suitable, meaning there is an imbalance between the supply of units to the market needs,” Peleg said.
“Whether you take a world view or an Australian one, there appears to be a complete disconnect between the price of units suitable for families to the median household income.
“The people who own the majority of residential properties that are suitable for families are mainly higher income earners and investors.
“They are not standard household earners. They are, largely, people at the top 50% of income earners or investors who are cashed-up."
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j.ballantyne1990-6AQqhLzZaK

Sydney the second least affordable city in the world for housing: RiskWise

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GUEST OBSERVER
The planning system in New South Wales must support apartments that are affordable.
Our research into the cost of apartments in Sydney has found that planning rules make them more expensive than in other Australian cities.
We have outlined the results of our research in a publication titled ‘Affordable Apartments’ which looks at global trends to help reduce the cost of urban housing.
In New York there has been a move towards ‘Micro Apartments’ that can be as small as 30 square metres as long as they are located close to jobs and amenities. Sydney can learn from the New York initiatives as part of a focus on housing affordability.
One area where initiatives are being undertaken in NSW is the move towards New Generation Boarding Houses.
A number of small studio apartments of around 25 square metres are able to share common facilities in buildings that are only built to rent.
These smaller units are able to bypass many of the NSW planning rules on solar access and minimum sizes under the Affordable Rental Housing State Environmental Planning Policy (SEPP) 2009.
The NSW Government should encourage a greater use of building like McCarthy Maisonettes as outlined in our publication.
The Urban Taskforce research also compared the NSW Apartment Design Guide requirements with the Victorian equivalent Better Apartment Design Standards document and found that $150,000 could be saved from the purchase price of a NSW two bed apartment if the Victorian rules were applied.
The Urban Taskforce believes the NSW Government needs to seriously look at its well-meaning planning rules that apply to apartment design in the interest of affordability.
A special category should be established for Affordable Apartments in urban locations where there are many amenities including public transport.
Another category should be established for high rise city locations where it is difficult to achieve the winter sun access to 70 percent of apartments required by the Apartment Design Guide.”
The NSW Apartment Design Guide has 180 pages packed with micro details while the Victorian Better Apartment Standards which was produced after an analysis of the NSW version has only 40 pages with much more flexibility.
The Victorian document took affordability into account in its approach to setting planning rules for apartments.
The development industry in NSW is keen to help consumers with the delivery of more affordable apartments but this will need a number of planning standards to be amended.
The Urban Ideas publication on “Affordable Apartments” can be accessed <a href="https://www.urbantaskforce.com.au/urbanideas/august2017/?page=1" target="_blank">here</a>.
CHRIS JOHNSON is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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