A State-Assessed Rezoning Proposal for the Kurnell Peninsula is now on public exhibition, setting out a plan to deliver up to 4,300 homes alongside new retail, tourism and public open space on a 210-hectare coastal site.

The proposal, backed by the Minns Labor Government, would transform a former sand mining area along Captain Cook Drive into a mixed-use precinct delivered over approximately 20 years.

In addition to housing, the plan includes more than 7,000 sqm of retail and commercial space, new community facilities and approximately 116 hectares of open space, equating to more than half the site.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="ce1c6567-1df0-4de0-9fe5-a76be0367834" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.51%E2%80%AFAM_0.png?VersionId=dbbTmYaJvROA5fkQbgaxis8cmFwtpB5_" />

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<h2 data-end="902" data-section-id="ony3l3" data-start="851">Rezoning framework enables mixed-use development</h2>

The rezoning application seeks to amend planning controls under the State Environmental Planning Policy (Precincts—Central River City) and the Sutherland Shire Local Environmental Plan 2015.

Its primary objective is to enable a broader range of land uses across the site, including residential, employment, tourism and community uses, while also formalising environmental protections and land management outcomes .

The proposal has progressed through the state-led rezoning pathway after being identified as a project of regional significance, supported by several years of technical studies and agency consultation .

Development would occur in stages, aligned with the progressive closure and remediation of the existing sand mine.

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<h2 data-end="1768" data-section-id="krwii9" data-start="1720">Master plan structured around three precincts</h2>

The accompanying urban design report outlines an indicative master plan that divides the site into three primary precincts, anchored by a town centre in the western portion of the site.

The town centre is planned as the first stage of development, located on land that has already been remediated. It is intended to accommodate higher-density housing, retail, and community uses.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="4bfd5873-4847-4105-b220-0a30c96f5573" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.20.09%E2%80%AFAM.png?VersionId=7aVaSsZLAc6mElSH4g6Ct5bGsNxZcnPL" />

Additional precincts extend toward Bate Bay and Boat Harbour, with built form responding to environmental conditions and proximity to the coastline.

The design framework identifies distinct local character areas, with the master plan structured to reflect “unique natural qualities” across the site.

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<h2 data-end="2544" data-section-id="1vitwqn" data-start="2497">Open space forms core of the design approach</h2>

A key component of the proposal is the allocation of approximately 116 hectares to open space and ecological land.

This includes:

<ul data-end="2846" data-start="2678">
	<li data-end="2702" data-section-id="d96caj" data-start="2678">Three district parks</li>
	<li data-end="2723" data-section-id="17y6uz6" data-start="2703">Nine local parks</li>
	<li data-end="2741" data-section-id="14hui00" data-start="2724">Sports fields</li>
	<li data-end="2778" data-section-id="ts7psx" data-start="2742">Coastal and ecological corridors</li>
	<li data-end="2846" data-section-id="agduax" data-start="2779">Two kilometres of publicly accessible beachfront along Bate Bay</li>
</ul>

The urban design report positions this open space network as central to the structure of the development, rather than ancillary to it.

It is intended to support ecological regeneration, provide recreational amenity and create a connected network across the peninsula.

The plan includes north–south ecological corridors, expanded wetland systems and pedestrian and cycling links designed to connect residential areas to the coastline and open space areas .

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<h2 data-end="3381" data-section-id="ql66rt" data-start="3349">Housing mix and affordability</h2>

The proposal includes approximately 4,300 dwellings across a range of housing types.

This includes high-density apartments, medium-density housing, townhouses and seniors housing.

Affordable housing provision is identified at approximately 240 dwellings, alongside a smaller component of social housing.

The master plan emphasises housing diversity, with the intent of accommodating a range of household types and age groups within the development.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="d4baba4d-b5b0-4a86-bcad-5d319b036184" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.59%E2%80%AFAM.png?VersionId=udYFz0q8tjEPR3pmKLHRSFRJN4dKakPO" />

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<h2 data-end="3919" data-section-id="rgckdv" data-start="3879">Built form controls and height limits</h2>

Proposed building heights across the site range from three to 12 storeys.

These controls are set out within the rezoning application and are intended to manage visual impact, maintain view corridors and ensure compatibility with the coastal landscape.

Floor space ratios and height limits are applied across different parts of the site to reflect varying environmental conditions and proximity to open space and the coastline .

Higher density is generally concentrated within the town centre, with lower-scale development toward the coastal edge and environmentally sensitive areas.

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<h2 data-end="4588" data-section-id="1minlda" data-start="4550">Retail, tourism and employment uses</h2>

In addition to residential development, the proposal includes retail, commercial and tourism uses.

This includes:

<ul data-end="4896" data-start="4706">
	<li data-end="4775" data-section-id="1jrun76" data-start="4706">Approximately 7,000–9,800sqm of retail and commercial floor space</li>
	<li data-end="4803" data-section-id="10kyifw" data-start="4776">A full-line supermarket</li>
	<li data-end="4830" data-section-id="fz1hdg" data-start="4804">Food and beverage uses</li>
	<li data-end="4896" data-section-id="1aqg2fj" data-start="4831">Tourism accommodation, including hotel and short-stay options</li>
</ul>

The proposal also identifies employment outcomes, with the development expected to support jobs both during construction and in ongoing operations.

These uses are concentrated within the town centre and key activity areas across the site.

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<h2 data-end="5172" data-section-id="162x2kt" data-start="5144">Infrastructure and access</h2>

The proposal includes upgrades to Captain Cook Drive, which provides the primary access to the peninsula.

These upgrades are intended to improve traffic flow and support emergency access.

The transport strategy also incorporates:

<ul data-end="5529" data-start="5407">
	<li data-end="5433" data-section-id="fanquy" data-start="5407">Internal road networks</li>
	<li data-end="5469" data-section-id="o6y80y" data-start="5434">Walking and cycling connections</li>
	<li data-end="5529" data-section-id="jgraft" data-start="5470">Proposed public transport routes and bus stop locations</li>
</ul>

The rezoning report includes detailed analysis of transport, flooding, and infrastructure requirements to support the staged development of the site .

<hr data-end="5723" data-start="5720" />
<h2 data-end="5769" data-section-id="14urh3" data-start="5725">Environmental and cultural considerations</h2>

The site is identified as having environmental and cultural significance, including areas of ecological value and Aboriginal archaeological sensitivity.

The proposal includes measures to protect and enhance these areas, including:

<ul data-end="6230" data-start="6004">
	<li data-end="6056" data-section-id="1pzyouo" data-start="6004">Retention and regeneration of coastal vegetation</li>
	<li data-end="6100" data-section-id="bjn2vz" data-start="6057">Strengthening of biodiversity corridors</li>
	<li data-end="6148" data-section-id="1bpeyoj" data-start="6101">Protection of riparian systems and wetlands</li>
	<li data-end="6230" data-section-id="lg0cka" data-start="6149">Integration of cultural interpretation and recognition of Indigenous heritage</li>
</ul>

The urban design report also outlines opportunities for incorporating Indigenous cultural elements into public spaces and landscape design.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">Next steps</h2>

The proposal is currently on public exhibition, with submissions open to the community. Feedback received during this period will inform the Department of Planning’s assessment of the rezoning.

If approved, the rezoning would establish the planning framework for future development applications across the site.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">What the NSW Government says</h2>

Minister for Planning and Public Spaces Paul Scully said the planned closure of the sand mine and remediation of the Kurnell Peninsula presents an exciting opportunity to transform the area.

“This proposal envisions a vibrant new beachfront community with thousands of new homes, jobs and great open space in the Sutherland Shire. I encourage the community to have their say during the public exhibition period. Feedback from the community will play an important role in the assessment of the proposal.”

Joel Robinson

Sydney's newest beachfront city: NSW Gov to unlock 4,300 new homes on Kurnell peninsula

A long-awaited transformation of a former industrial site in Holroyd has been given the green light, with the NSW Government approving the $1.2 billion Crescent Parklands masterplan that will deliver more than 1,200 new homes just south of Parramatta.

The State Significant Development approval clears the way for a large-scale mixed-use precinct at <a href="https://www.apartments.com.au/new-apartments/1-crescent-street-holroyd-nsw-2142">1 Crescent Street</a>, replacing an underutilised site with a coordinated residential community anchored by new open space, retail, and commercial uses.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> for WA-based developer Tiberius, the approved scheme comprises seven buildings arranged across two precincts. In total, the development will deliver 1,227 apartments, including 201 allocated as affordable housing, alongside approximately 2,500 sqm of retail and 5,000 sqm of commercial space within a mixed-use podium.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="1cc82dd2-8184-4b86-8665-90653147820d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20buildings.png?VersionId=2ZmVDc_Rfc4AzQ6ShzZJlvdZnACLerVM" />

The project is structured as a masterplanned precinct rather than a standalone tower. Buildings 1 to 4 will rise from a shared podium with shop-top housing, while Buildings 5 to 7 are positioned closer to the northern park interface as residential flat buildings. The built form has been carefully modulated to balance density with amenity, with the design resolving building separation, solar access, and wind impacts at a precinct scale.

A significant focus of the design is the activation of Crescent Street and the integration of public domain. The submission notes that “individual townhouses [were] removed for community based functions to Crescent Street to increase activation and surveillance,” reinforcing a more urban and publicly engaged street edge. Retail, commercial tenancies, and resident amenity spaces are concentrated along this frontage and within the podium to support day-to-day activity.

The landscape strategy underpins the project’s identity, with a network of pedestrian connections, landscaped corridors, and open spaces linking the site internally and to its surroundings. The design prioritises permeability, delivering “increased uninterrupted flow between spaces for pedestrian access” and improved connections through to the adjoining parklands.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="19282454-ab2f-4e2c-866f-4b35cf4283d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20masterplan.png?VersionId=JQdWGYI5B5R1lzmK4omYOp_8KLPkT4Bv" />

Buildings within the western precinct are oriented toward the park, shaping a residential offering defined by proximity to open space. The design describes this approach as creating apartments “immersed in nature with apartments facing the park,” positioning the landscape as a central organising element of the masterplan.

The broader architectural response addresses both infrastructure and context, with taller elements capturing long-range views toward Parramatta while setbacks and separation distances mitigate impacts on surrounding residential areas. Sustainability initiatives, including solar optimisation, cross-ventilation, and integrated landscape systems, are embedded across the scheme.

Located approximately one kilometre south of Parramatta CBD, the 3.6-hectare site is bounded by Crescent Street, Woodville Road, and Holroyd Sportsground. It benefits from strong access to public transport, including nearby bus routes and train stations, and sits within a rapidly evolving corridor earmarked for increased residential density. The design also strengthens connections between surrounding green spaces, including Holroyd Sportsground and Parramatta Parklands.

The approval follows several years of planning, including a rezoning process that enabled significant uplift in height and density across the site. With determination now secured, Crescent Parklands is positioned to play a major role in delivering new housing supply within Greater Parramatta’s growth area.

Tiberius’ Crescent Parklands to deliver over 1,200 homes in major Holroyd transformation

A new State Significant Development application has been lodged over land at <a href="https://www.apartments.com.au/new-apartments/33-43-marion-street-parramatta-nsw-2150">33–43 Marion Street</a>, Parramatta, proposing a high-rise mixed-use tower that leverages planning incentives to deliver a substantial pipeline of new housing, including a dedicated affordable component.

The scheme, currently on exhibition, combines a shop-top housing development with a concurrent rezoning, positioning the site for a significant uplift in density within Parramatta’s evolving southern CBD fringe.

The proposal, designed by <a href="https://www.apartments.com.au/architects/fuse-architecture-0">Fuse Architects</a> for CN Marion, would replace the existing buildings with a 37-storey mixed-use tower, delivering 296 apartments above a retail podium with six basement levels on the 2,376 sqm site.

The residential mix comprises 58 one-bedroom, 207 two-bedroom, and 31 three-bedroom apartments, with communal facilities located on the second level and the rooftop. Ground-level activation is driven by retail and food and beverage tenancies, alongside a publicly accessible through-site link designed to improve pedestrian permeability.

The project includes 194 car spaces, five motorcycle spaces, and 348 bicycle spaces, reflecting a transit-oriented approach in a location directly adjacent to the rail corridor and within walking distance of Harris Park Station.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="3db873ea-62f0-437b-8a6a-eeda154d2dee" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20building.png?VersionId=YwzBv8OVHwyRnMLGX4slU7QyhTyMZeOX" />

The design adopts a podium-and-tower composition, with a three-storey street wall addressing Marion Street and a reduced two-storey interface responding to adjoining heritage cottages.

A key component of the proposal is the integration of affordable housing under the NSW Government’s in-fill affordable housing pathway, with units to be retained for a minimum of 15 years. This is paired with a broader public domain strategy that emphasises permeability, deep soil planting, and a landscaped through-site link.

“The strategy prioritises a permeable, well-activated public realm and supports a compact tower form to minimise the building’s footprint while enhancing the quality of the ground-level experience,” the design report states.

The proposal includes a central landscaped courtyard, rooftop communal areas, and planting strategies aligned with local environmental conditions and cultural narratives.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="f0e6c165-9967-4d20-9216-e5b8357c85ba" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20site.png?VersionId=SRod222LwgDmGZJmJY0wTbK39UrWZLSD" />

The site occupies a prominent corner of Marion and Station streets, roughly 100 metres from Harris Park Station, within a precinct earmarked for significant intensification. While the immediate context is characterised by low- to mid-rise buildings and heritage dwellings, planning controls and recent proposals point to a transition toward high-density development.

<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:c78224e4-1dd1-48ac-afda-97fe23bac47e-0" dir="auto">
Parramatta has been starved of new apartment supply in recent years. Builder-developers Deicorp and Coronation are the only two currently progressing projects in the suburb. Coronation is nearing completion of <a href="https://www.apartments.com.au/new-apartments/8-phillip-street-2-10-phillip-street-parramatta">8 Phillip Street</a>, which will be the tallest building in Western Sydney once finished, while Deicorp is delivering <a href="https://www.apartments.com.au/new-apartments/cosmopolitan-by-deicorp-parramatta-34-hassall-street-parramatta-nsw-2150">Cosmopolitan</a>, a development comprising over 600 apartments.
</section>

First Look: Plans lodged for 37-storey mixed-use tower in Parramatta

A substantial uplift in height and density is being tested in Lane Cove, with a 225-apartment scheme at 300 Burns Bay Road now on public exhibition as a State Significant Development alongside a concurrent rezoning.

The proposal by <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> would see the demolition of an existing commercial building and associated structures, replaced by a residential development ranging from seven to 15 storeys.&nbsp;

The scheme delivers 225 apartments, including 34 designated as affordable housing, positioning it within the NSW Government’s accelerated Housing Delivery Authority pathway.

The development is arranged as three interconnected residential flat buildings, a response to the site’s long, narrow configuration and sloping topography.&nbsp;

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="c325d40c-ead5-45f4-9d77-5a446b23acc0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20Cove%20pers.png?VersionId=hsCJxT5hj.5kzA6AMInyan1x8mcHeRez" />

<a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a>, the project’s designer, describe a built form that is “divided into three sections, each connected by intermediate infill slots which are recessed to establish greater setbacks and further articulate the development.”

Across the scheme, apartments are supported by communal amenity at ground and rooftop levels, including landscaped open space and a rooftop pool. Basement and lower ground levels accommodate parking, storage, and building services, while a new public park is proposed along the eastern edge of the site, replacing part of the existing built form.

The architectural response has been shaped by the site’s pronounced fall towards the Lane Cove River, with building heights stepping down from west to east to reduce visual bulk and respond to adjoining bushland.&nbsp;

The design report notes that “the development has been carefully designed to integrate with the existing topography with the placement of massing and floor levels adjusted respecting the site’s inherent characteristics.”

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="31cc13a5-bc8b-4dc3-b9b1-07c6ec33a82b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20cove%20site.png?VersionId=NiyH3LimQwiHsE6Q7I5g4Grpr5fRdZaX" />

The project is being advanced through a concurrent rezoning process, seeking to increase the permissible height and floor space ratio beyond current Lane Cove LEP controls of 21 metres. Under the proposal, height would reach up to 54.5 metres, reflecting a shift toward higher-density outcomes in well-located urban areas.

Located on a 7,595 sqm site, the development sits within an established high-density residential pocket characterised by mid-rise apartment buildings set within a bushland setting. The site is within close proximity to Burns Bay Reserve, the Lane Cove River, and an extensive network of open space, reinforcing its strategic positioning for increased housing supply.

Level 33 is doing through the Housing Delivery Authority to try and get its Homebush project of <a href="https://www.apartments.com.au/news/nsw/level-33-adds-to-2-000-unit-pipeline-with-new-two-tower-homebush-plans">more than 300 apartments approved</a>.

The developer has over 2,000 apartments in the pipeline, predominantly in Wollongong.

First look: Level 33 proposes 225-apartment Lane Cove tower

Following the completion of its debut Palm Beach apartment development EVA on Tenth, local Gold Coast developer Chippendale Group has launched its latest project in the in demand area.

Chippendale Group, led by fifth-generation Palm Beach local Daniel Chippendale, has kicked off sales at&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221&amp;source=gmail&amp;ust=1775884443343000&amp;usg=AOvVaw2GyxnGQKU2XXwTzQ8_VHgi" href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221" target="_blank">ELISE</a>, 68 coastal-infused apartments just 40 metres from the sand on Twenty Fifth Avenue.

[smartcode_project:default project_id=150992 project_image_fid=366023]

Construction is already well underway, a signal of confidence to buyers, following the demolition of the two-storey walk-up and 1990s built house that sat on two sites that have been amalgamated to create a prime corner block.

There are a mix of two- and three-bedroom apartments on offer, starting from $1.4 million.

[smartcode_project:default project_id=150992 project_image_fid=366024]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, Elise responds to its coastal setting through a horizontal architectural form with recessed glazing and layered landscaping. The design aims to balance light, shade and sea breezes while creating a defined presence along the streetscape.&nbsp;

Residences have been planned with an emphasis on outdoor living suited to the Gold Coast climate, including large balconies designed as usable outdoor rooms. Interiors will feature a selection of European appliances and natural materials, including New Zealand wool carpets.&nbsp;

[smartcode_project:default project_id=150992 project_image_fid=366033]

Resident amenities are centred around a wellness-focused ground-level precinct. There will be private access to a heated swimming pool, sauna, cold plunge and gym, alongside a residents’ lounge with dining and entertaining space.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221">ELISE</a> is located towards the northern end of Palm Beach, which puts it just a short walk to Tallebudgera and Currumbin Creeks. At the end of the street is the newly extended Oceanway, a 36-kilometre pathway that runs up and down the Gold Coast.

Chippendale is targeting a late 2027 completion date for <a href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221">ELISE</a>.

[smartcode_project_cta:default project_id=150992]

Chippendale Group launches Elise, 40 metres from the Palm Beach sand

Apartment Approvals

National multi-unit approvals increased by 36 per cent in the three months to May 2021 to be 25.7 per cent higher than last year.&nbsp;

It was the strongest quarterly result for apartment approvals since 2018, stated HIA economist, Angela Lillicrap.

They were driven by a rise in apartment approvals in Queensland and Western Australia.

<img alt="" height="855" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/approvals_broad.jpg" width="1200" />

Matthew Hassan, the Westpac economist noted high rise approvals, where up 186 percent year on year in Queensland and 105 percent in WA.&nbsp;

In NSW highrise approvals were up 59 percent year on year based on the quarterly data, while it was 42 percent in Victoria.

[smartcode_project:default project_id=7758 project_image_fid=150460]

Hassan noted that high rise approvals were greater than low rise apartment approvals.

NSW lead the low to mid rise apartment growth, up 69 percent, followed by Victoria up 8 percent and Queensland by 4 percent.&nbsp;

[smartcode_project:default project_id=102309 project_image_fid=163979]

Meanwhile detached building approvals fell back in May from the record level set in April but remain elevated according to the Australian Bureau of Statistics release.

Approvals for private sector houses fell across all mainland states: Western Australia (-18%), South Australia (-16.9%), Queensland (-13.8%), Victoria (-5.8%) and New South Wales (-4.6%), in seasonally adjusted terms. 
&nbsp; 
Detached approvals will remain elevated for several more months as approval authorities work through the remaining HomeBuilder projects, stated HIA economist, Angela Lillicrap.

Ryan Felsman, the senior economist at CommSec, noted council approvals to build new homes fell by 7.1 per cent in May after falling by 5.7 per cent in April.&nbsp;

&quot;But approvals are still up 52.7 per cent on the year &ndash; the strongest annual growth rate in 11 years,&quot; Felsman advised.

In May, total house approvals fell by 10.3 per cent (up 53.6 per cent on the year) with apartments up 0.7 per cent (up 51.0 per cent on the year).&nbsp;

Over the past year, 144,827 new houses were approved &ndash; the most for a 12-month period in over 37 years.

AMP Capital cheif economist Shane Oliver noted the decline in building approvals from their peak likely reflects the end of the HomeBuilder subsidy at the end of March, which brought approvals forward.&nbsp;

&quot;However, approvals remain very high, the AIG&rsquo;s June Construction PMI survey continues to point to strong new orders for new houses and the lagged impact of the surge in approvals up until recently points to a significant further rise in dwelling construction activity over the remainder of this year.

&quot;This is good news for continuing economic and jobs recovery.&nbsp;

&quot;Continuing strength in home building against the back drop of the collapse in population growth also holds out the prospect that the property market will move into a situation of underlying oversupply in the next year or so which should ultimately slow the gains in home prices and help improve affordability,&quot; Oliver said.

Multi-unit approvals increased by 36 per cent in the three months to May 2021, the strongest quarterly result since 2018

jchancellor

Apartment approvals see strongest quarterly result since 2018

<html><body>
The Australian Bureau of Statistics (ABS) housing approval numbers for January 2019 show a collapse in apartment approvals in Victoria and NSW.
The ABS January 2019 housing data indicates a fall in apartment approvals in Victoria of 55 per cent and in NSW of 41 percent over the last year.
Detached home approvals have remained steady but apartment approvals have dropped dramatically across Australia but particularly in NSW and Victoria.
In January 2018 Victoria had 3362 apartment approvals but this has dropped to only 1,500 in January 2019.
NSW had 3,359 approvals in January 2018 and this has dropped to 1,987 a year later in January 2019.
The drop in apartment approvals in NSW is even more dramatic when measured against the high point of 3,814 approvals in September 2017.
This is a drop of 1,827 from the peak which is a 48 per cent drop.
Drops in the order of 50 percent over a year are highly unusual and it does not look as though the drop is slowing.
Over the last year house approvals dropped from 2,556 in January 2018 to 2,425 in January 2019 which is only a 5 per cent drop.
Clearly the investor market is on hold in the major cities as housing prices fall and this impacts on apartment sales.
The message from the development industry is that pre commitment sales have tapered off dramatically in Sydney so even those apartments that have been approved may not proceed.
The supply chain of new apartments is looking to be very low in the years ahead.
The collapse in approvals for new apartments has been fuelled by negative attitudes about apartment development from politicians and media in the build up to the NSW election on 23 March, the slow -down in funds from China, the falling dwelling prices in the market and a general lack of confidence by investors, owner occupiers and the development industry in new residential property.
Which ever party wins the NSW election will need to address the confidence issue quickly as there are around 300,000 direct jobs in residential development and if half the number of apartments will be built in coming years then half the number of jobs will be needed.
The Urban Taskforce is developing a series of actions that the next NSW government can take to minimise unemployment in the industry.
CHRIS JOHNSON is the Urban Taskforce CEO 
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cjohnson-8xfqfuuCSq

Apartment approvals collapsing in Victoria and New South Wales: Chris Johnson

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EXPERT OBSERVER
Dwelling building approvals fell an as expected 1.5% in October, with unit approvals down 5.4%.
The trend in alterations and additions is falling at around 0.1% a month.
The trend in non-residential approvals is also falling.
<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/2018/12/4/Approvals1.jpg" alt="">
The downtrend in dwelling building approvals and in the value of alternations and additions points to gradual decline in dwelling investment over the year ahead.
<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/2018/12/4/Approvals2.jpg" alt="">
Meanwhile in other data released today
<ul type="disc">
<li class="x_MsoListParagraph">September quarter business indicators were on the soft side with company profits up 1.9%qoq (against market expectations for a 2.4% gain), the wages bill rising just 0.9%qoq (and don’t forget this allows for wages and employment growth), sales volumes slowing to just 0.1%qoq and flat inventories pointing to a detraction from growth of 0.3 percentage points.</li>
</ul>
Taken together this points to a bit of a softening in growth after a few stronger quarters and suggests downside risks to our September GDP growth forecast of 0.6%qoq, although there is data on net exports and public demand to be released tomorrow. 
Finally
<ul type="disc">
<li class="x_MsoListParagraph">ANZ jobs ads fell 0.3% in November with annual growth slowing to 2.3%yoy pointing to softer jobs growth ahead.</li>
<li class="x_MsoListParagraph">The Melbourne Institute’s Inflation Gauge for November basically stalled with headline inflation slowing to 1.6%yoy and underlying inflation slowing to just 1.3%yoy suggesting that inflation may be actually slowing this quarter.</li>
</ul>
Implications for interest rates
Along with CoreLogic data showing ongoing falls in house prices, today’s data adds to our expectation that RBA rate hikes are at least two years away and that there is rising risk that the next move by the RBA will be a rate cut rather than a rate hike.
SHANE OLIVER is Head of Investment Strategy and Chief Economist at AMP Capital.
 
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soliver-smf6LQXgW9

Unit approvals lead building approvals decline in October: Shane Oliver

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EXPERT OBSERVATION
Dwelling approvals came in slightly below expectations in April with a 5% fall vs consensus forecasts of a 3% decline. Annual growth slowed to 5.2%yr. The detail was mostly on the soft side.
Private detached house approvals were flat in the month but supported by an abnormally large 20% jump in WA which was coming off very weak reads in February-March. We suspect this relates more to processing issues than conditions on the ground which are still not conducive to a pick-up in the west (Perth house prices still declining and rental vacancy rates above 5%). Ex WA, private detached house approvals were much softer, down 6.7%.
Private units were the main driver of the headline decline, posting a sharp 11.5% drop in the April month. Our estimates indicate high rise unit approvals were down over 20%. While extreme volatility makes this sub-segment hard to read, the monthly series looks to be shaping into a second leg lower, as indicated by site purchase data over the past year. That said, it will still take some time to confirm. ‘Medium density’ approvals also declined sharply, by around 6%mth.
By state, the pull back in units was concentrated in Vic (–8.4%mth but still up 25.8%yr). NSW posted a decent 5% gain and Qld nudged up 1.2% but in both cases approvals are still down on a year ago. Approvals have firmed slightly in SA but are showing clear trends lower in both WA (despite this month's jump) and Tasmania.
The value of renovation approvals dipped 0.3% after a 6.5% drop last month. Although approvals are still up 16%yr the monthly trend has swung into a clear decline.
The value of non-res building approvals fell 4%mth to be down nearly 20%yr. The dominant driver continues to be a sharp fall back in the previously very strong office segment with the slowdown concentrated in NSW and Vic.
The latest Foreign Investment Review Board (FIRB) annual report has also been released with data confirming the slump in foreign residential purchases. It shows a dramatic 67% drop in FIRB approvals to just 13.2k in 2016-17 from just over 40k in 2015-16. Note that these counts include purchases of existing properties and developer 'off the plan’ approvals, the latter counting projects with multiple properties as a single approval. Our estimates suggest the underlying number of new properties purchased via FIRB approvals saw an even bigger fall, from 52k in 2015-16 to 13.5k in 2016-17. Note that the full impact on activity may take time to come through as developers may still be selling properties in projects that obtained FIRB approval in previous years. More generally, the wider foreign buyer share of total market activity looks to have shrunk from 10-15% to 3-4%.
Overall the April data-flow is broadly in line with our expectations that approvals are tilting towards taking another leg lower through 2018 with the main impact on new dwelling construction coming in 2019.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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j.ballantyne1990-6AQqhLzZaK

Private units the main driver of dwelling approval decline: Westpac

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Apartment approvals are now declining quite quickly in Sydney, while confidence is picking up off the mat in Brisbane, especially for tonwhouses and semi-detached dwellings.
The latest ABS figures relate to the month of February, but with more and more new apartments failing to value up at completion it's only a matter of time before unit approvals in Sydney decline further. 
<a href="https://2.bp.blogspot.com/-8KDQ7ddnUSs/WsRdTaQ0IOI/AAAAAAAApQU/q0yQ91byCVooH8yyLXqJ2FwjMW0P4VwhwCLcBGAs/s1600/BA1.jpg"><img src="https://2.bp.blogspot.com/-8KDQ7ddnUSs/WsRdTaQ0IOI/AAAAAAAApQU/q0yQ91byCVooH8yyLXqJ2FwjMW0P4VwhwCLcBGAs/s640/BA1.jpg" width="640" height="380" data-original-height="826" data-original-width="1389"></a>
Approvals for houses are generally mirroring internal migration trends, with Brisbane and Melbourne attracting the most migrants from elsewhere in Australia, but Perth having experienced an outflow of residents. 
<a href="https://3.bp.blogspot.com/-oGVxuL_jhSk/WsRdUBBuVYI/AAAAAAAApQY/pME7lZ0_Aoc1jfP1KEyDkBw0yDp_9VfvQCLcBGAs/s1600/BA2.jpg"><img src="https://3.bp.blogspot.com/-oGVxuL_jhSk/WsRdUBBuVYI/AAAAAAAApQY/pME7lZ0_Aoc1jfP1KEyDkBw0yDp_9VfvQCLcBGAs/s640/BA2.jpg" width="640" height="392" data-original-height="834" data-original-width="1361"></a>
Totting it all up, there is little evidence yet of a bust in residential construction, with more than 221,000 dwellings approved over the year to February 2018, although we are now well off the peaks.
<a href="https://1.bp.blogspot.com/-it32l-EqSPE/WsRdUY4ci5I/AAAAAAAApQc/KDL6ZydBID8gE7uam94uoebYb7s_RRgeACLcBGAs/s1600/BA3.jpg"><img src="https://1.bp.blogspot.com/-it32l-EqSPE/WsRdUY4ci5I/AAAAAAAApQc/KDL6ZydBID8gE7uam94uoebYb7s_RRgeACLcBGAs/s640/BA3.jpg" width="640" height="390" data-original-height="822" data-original-width="1343"></a>
The high-rise apartment sector has also calmed down a bit now, with a notable shift towards more approvals for family appropriate dwellings, such as terraces, semi-detached homes, townhomes, and low-rise apartments. 
<a href="https://1.bp.blogspot.com/-QZ6ps6FvdDw/WsRdVAttpII/AAAAAAAApQg/5k1Gf7mxpFojj7zk6h6wmhVDUy8hPYzMACLcBGAs/s1600/BA4.jpg"><img src="https://1.bp.blogspot.com/-QZ6ps6FvdDw/WsRdVAttpII/AAAAAAAApQg/5k1Gf7mxpFojj7zk6h6wmhVDUy8hPYzMACLcBGAs/s640/BA4.jpg" width="640" height="376" data-original-height="818" data-original-width="1390"></a>
Commercial boom
Another point of note is that the annual value of non-residential building approvals have boomed to their highest ever level at just shy of $48 billion, keeping building activity sustained at a high level in 2018. 
<a href="https://3.bp.blogspot.com/-OxEGALI23aw/WsRdVj_BsmI/AAAAAAAApQk/i5do43xTYv0coyJHxWhLkwxGhhWshhK7ACLcBGAs/s1600/BA5.jpg"><img src="https://3.bp.blogspot.com/-OxEGALI23aw/WsRdVj_BsmI/AAAAAAAApQk/i5do43xTYv0coyJHxWhLkwxGhhWshhK7ACLcBGAs/s640/BA5.jpg" width="640" height="380" data-original-height="818" data-original-width="1377"></a>
There has been record activity across approvals for warehouses, offices, schools, universities, and aged care facilities. 
This is a positive signal, for there will be a significant hole to plug as Sydney apartment construction fades. 
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pwargent-M4siyDbqQY

Sydney building approvals declining quickly: Pete Wargent

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EXPERT OBSERVATION
Apartment building has started the year with solid growth.
Building Approval results were released today by the Australian Bureau of Statistics and report that new apartment approvals were up by 5.5% during the three months to January 2018.
Over the year to January 2018, new apartment approvals totalled 106,000 a very high level by historic standards. The annual volume of apartment approvals has been north of the 100,000 mark continuously since early 2015.
New building approvals remain strong in the Melbourne area. This market continues to be supported by high levels of inward migration – a result of the remarkably healthy labour market in the city. Melbourne’s ability to accommodate an expanding population so well has been a big factor in its recent economic success.
Growth in building approvals in Western Australia for two successive months is also a further sign that the down phase of their building cycle ended along with 2017.
New detached house approvals across Australia were largely unchanged over the three months to January 2018. The pipeline of activity on this side of the market also remains high and our expectation is that the market will continue to cool slowly over the year.
The heavy obstacles placed in the way of foreign buyers over the past year and well as the possibility of interest rate rises later this year are still likely to drag new home building activity lower over the medium term."
During the three months to January 2018, Victoria saw the largest increase in new home approvals (+26.0%) with growth also occurring in Tasmania (+7.0%) and Queensland (+1.3%). The ACT was hit by the largest decline in new dwelling approvals (-57.5%), followed by the Northern Territory (-23.2%) and South Australia (-11.2%). There were also reductions in New South Wales (-10.2%) and Western Australia (-1.2%).
Shane Garrett is a senior economist at HIA. He can be <a href="https://hia.com.au/business-information/economic-information/economic-group" target="_blank">contacted here.</a>
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jrobinson-rf4aSBido9

New apartment approvals continue to soar: HIA's Shane Garrett

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Australian apartment building approvals experienced a sharp downturn in March, as approvals dropped by 28.4 percent throughout the month, supporting a fall in total dwelling approvals of 19.9 percent.
Matthew Pollock, national manager of housing at Master Builders Australia, remarked that the statistics highlight the need for the Federal Budget to support a greater level of investment into Australia’s housing sector.
“These latest results suggest the housing boom which has been driven primarily by apartment construction in Sydney and Melbourne is beginning to run out of steam,” he said.
Apartment approvals in New South Wales fell by 27 percent, to 2,526, the lowest level since January 2016. Victoria did not fare much better, with apartment approvals down by 13 percent in March.
However, the value of alterations and additions increased by 1 percent in March and has risen for seven straight months.
“The record rates of new home building last year and this year are a result of the industry playing catch-up after a decade of underinvestment into our housing stock,” Pollock added.
“New home construction will need to be maintained at 200,000 new dwelling per year for at least the next five years if we are to meet the needs of a larger population and ensure supply constraints do not push up future house prices.”
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Budget must support new home building as building approvals fall

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GUEST OBSERVER
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The latest figures from the Australian Bureau of Statistics (ABS) for dwelling approvals show a slow down for NSW particularly for apartments and proposed extra costs could slow housing production even more.
Apartment approvals have dropped by 12% between July and October 2016.
The high point of 4,105 new apartments approved in NSW in July 2016 has dropped to 3,620 in October which is a significant decrease. Housing approvals have also fallen but not by the same amount with all homes dropping from 6,500 in July 2016 to 5,945 by trend in October 2016.
There are a number of signals from the NSW Government that are likely to add more costs to developing apartments and houses and this will add uncertainty to those investing in new housing. The release of the District Plans by the Greater Sydney Commission has highlighted a number of new levies to housing.
An affordable housing levy of up to 10 percent is now proposed in the District Plans as well as statements about Value Capture levies. On top of this the NSW Minister for Planning is encouraging changes to Negative Gearing that would reduce the investment interest in new homes that are needed for the rental market and potential changes to the BASIX sustainability program could lead to additional building costs.
There will be an uncertain environment over the next 12 months as the very broad District Plans are discussed leaving confusion over just which planning rules apply. The council elections at the end of 2017 for amalgamated councils could put decision making on hold.
All of this uncertainty is in the context of an increased number of new homes needed in Sydney yet the uncertainty is likely to slow production down. The Department of Planning has indicated that an average of 36,250 new homes are needed over the next 20 years but the highest production has been 30,000 for the last financial year. The government’s high growth scenario would require 41,500 homes a year.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" alt="">
 
Clearly for Sydney the NSW Government must be encouraging an increase in housing supply of around 10,000 more than is currently occurring but the uncertainty over the District Plans, Affordable Housing levies, Value Capture levies, Council Amalgamations and potential changes to BASIX will slow housing supply down.
What is needed is policies that stimulate more housing production like the Urban Taskforce proposal for 4,000 affordable homes a year rather than a raft of new levies, taxes and an uncertain planning environment. The current slow down on housing approvals should be seen as an early warning that support for housing production is needed.
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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jchancellor-FAypfDUnLy

Apartment approvals slow in Sydney as more costs are imposed

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The property market may be in for a hard landing as early has 2017, according to investment bank Morgan Stanley’s recent predictions.
The reasons cited are a soft rental market, an oversupply of new apartments and worsening affordability, says an article in the Australian Financial Review based on Morgan Stanley’s outlook.
It predicts apartment approvals to fall by more than half over the next two years as settlement risks and a sharp cut in development financing hurts developers.
"In short, we believe the growth contribution from the housing boom has already peaked and look for a plateau over 2017 and decline through 2018," strategists Daniel Blake, Steven Ye, Chris Nicol and Antony Conte write.
"New apartment projects should slow sharply as focus turns to settlement of the existing pipeline."
The outlook is based on more pessimistic expectations about net migration rates than others, according to Morgan Stanley, and is the result of a new index  — MSHAUS — combining six factors including oversupply, rental vacancy rates that could rise to 4.5 percent from 3 percent in two years, tighter lending standards and lower expected growth in home values.
The index is in a range close to its lowest level since 2004, says the report. 
<a href="/images/2016/10/21/MorganStanley.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/21/MorganStanley.jpg" alt="">
"A growing overbuild, deteriorating rental market conditions, further worsening in housing accessibility, tighter credit supply and more subdued price expectations all suggest a further softening in the outlook over 2017," it says.
Planning approvals of apartments, townhouses and semi-detached homes will fall to 57,000 in the fourth quarter of 2018 from 124,000 in trend terms in July this year, the report says. 
Settlement risk – both for individual buyers and whole developments – is a major concern. 
"In our view, the greatest vulnerability is settlement risk on the 160,000 apartments that we forecast completing through end 2017," the report says. "Listed developers report low failure rates currently, but also confirm credit availability has tightened, especially for foreign investors."
It also applies to buildings, despite the growth of alternative financing sources. 
The report says the nearly $120 billion in settlements due by end-2018 makes this a genuine concern.
The rental market is also the softest since 2003, it says. 
"We think they will weaken further, on the back of an increasing apartment overbuild. Rent inflation has already slowed sharply and is running at a record low of 0.9 percent, year on year."
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