<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

<p>&nbsp;</p>

<p>Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.</p>

<p>The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.</p>

<p>The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.</p>

<p>The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370975]</p>

<p>Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.</p>

<p>Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.</p>

<p>Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370981]</p>

<p>Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.</p>

<p>“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.</p>

<p>“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”</p>

<p>“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.”<br />
[smartcode_project:default project_id=144441 project_image_fid=370977]</p>

<p>The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.</p>

<p>Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.</p>

<p>The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.</p>

<p>The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370980]</p>

<p>Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.</p>

<p>“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.</p>

<p>“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”</p>

<p>A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.</p>

<p>That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.</p>

<p>The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370978]</p>

<p>According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.</p>

<p>Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.</p>

<p>The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.</p>

<p>The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.</p>

<p>That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.</p>

<p>The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370979]</p>

<p>The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.</p>

<p>“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.</p>

<p>“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”</p>

<p>The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.</p>

<p>[smartcode_project_cta:default project_id=144441]</p>


Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

<p>National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.</p>

<p>The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.</p>

<p>Multiplex has been appointed the builder, and construction is now underway.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365784]</p>

<p>Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.</p>

<p>Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.</p>

<p>“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.</p>

<p>He said NAB’s early support was instrumental in helping establish the company’s development model.</p>

<p>“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.</p>

<p>“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365771]</p>

<p>Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.</p>

<p>Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.</p>

<p>Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.</p>

<p>Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.</p>

<p>The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365768]</p>

<p>Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.</p>

<p>Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.</p>

<p>Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


NAB funds $1 billion Surfers Paradise apartment development, Palmera

<p>Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.</p>

<p>The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.</p>

<p>The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.</p>

<p data-end="792" data-start="529"><img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" /></p>

<p data-end="1040" data-start="794">According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”</p>

<p>The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.</p>

<p>The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.</p>

<p>Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.</p>

<p>“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.</p>

<p>The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.</p>

<p>The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" /></p>

<p>The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.</p>

<p>While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.</p>

<p>“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.</p>

<p>According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.</p>

<p>“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.</p>

<p>“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”</p>

<p>The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.</p>

<p>Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.</p>

<p>&nbsp;</p>

<p>The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" /></p>

<p>St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.</p>

<p>Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.</p>

<p>The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.</p>

<p>More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.</p>


First look: Aqualand joins St Leonards apartment party

Apartment Construction

<html><body>
<div>A range of factors have come together to kill the apartment construction boom in its tracks.</div>
<div> </div>
<div>These have included:<br><br>-tighter capital controls in China<br>-a stamp duty surcharge for non-resident buyers<br>-a 'vacancy tax' for unoccupied dwellings not made available for rent<br>-changes to the foreign resident capital gains tax regime<br>-significant limits to depreciation deductions<br>-travel costs for landlords being disallowed as a deduction<br>-changes to the CGT main residence exemption for foreign buyers &amp; temporary residents<br>-considerably tighter lending criteria Down Under</div>
<div> </div>
<div>And some other stuff.<br><br>The truth is Australian residents finance the purchase of relatively few new apartments in the larger developments, so if investors aren't buying then it's difficult for developers to secure enough pre-sales to get projects off the ground.</div>
<div> </div>
<div>At the last official count we saw that there were still around 152,000 attached dwellings under construction for the July to September 2017 period.</div>
<div> </div>
<div>But that was months ago, and this is now.<br><br>By today in February 2018 the number of apartments under construction might already have nosedived by about 20 per cent, as a swathe of Sydney completions has hit the market. </div>
<div> </div>
<div>And the latest building approvals figures suggest the downtrend is now locked in.</div>
<div> </div>
<div>This may prove to be a plus for landlords as rental markets tighten, while Alex Joiner of IFM Investors notes an eyebrow-raisi<span>ng <span>~</span>45,000 Airbnb</span> listings in Melbourne and its surrounds, representing huge growth, which may in turn help to explain vacancy rates in the Victorian capital having nudged multi-year lows in 2017. </div>
<div> </div>
<div>Meanwhile macroprudential measures may well mean that interest rates stay lower for longer (if construction employment begins to fall hard, the next move in rates may even be down, for the Reserve Bank of Australia is already missing both its inflation target - for more than two years now - and its full employment mandate). </div>
<div> </div>
<div>Let's look briefly at the latest building approvals trends. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Apartment construction to slow</span></strong></div>
<div><strong> </strong></div>
<div>Attached dwelling approvals dropped sharply by 39 per cent in seasonally adjusted terms in December 2017, from 11,247 to just 6,849, although this was partly a reversal of a record spike in Melbourne in the preceding month. </div>
<p> </p>
<div class="separator"><img src="https://2.bp.blogspot.com/-jbFm6bMEzbc/Wnatet_AWHI/AAAAAAAAoKc/7IyLSytQdbASKTMc6St0CdspdGC4u0XRACLcBGAs/s640/A1.jpg" width="640" height="388" data-original-height="813" data-original-width="1338"></div>
<p> </p>
<div>While Melbourne and Sydney apartment approvals will likely continue a downtrend from here, confidence in the maligned Brisbane apartment sector finally seems to have found a more sustainable base. </div>
<div> </div>
<div>Melbourne attached dwelling approvals fell from a manic 6,304 in November to 2,766 in December, overwhelmingly accounting for the monthly decline. </div>
<div> </div>
<div>Across calendar year 2017 Sydney and Melbourne accounted for the strong result in attached dwelling approvals at just under 36,000 and 32,000 respectively.</div>
<p> </p>
<div class="separator"><img src="https://2.bp.blogspot.com/-iBUymPPAG8o/Wnate9sty4I/AAAAAAAAoKg/-N-TNG0FkSwUA6UgVdxEQbc0aYIfFde0QCLcBGAs/s640/A2.jpg" width="640" height="380" data-original-height="810" data-original-width="1363"></div>
<p> </p>
<div>Meanwhile the trend in Brisbane house approvals is now the strongest in the country, alongside sprightly Hobart.</div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-bBG8InIxZcc/Wnate_gk-sI/AAAAAAAAoKk/Uu9uSRI269wpiNfnkwyMR8l2rpUEUO_ngCLcBGAs/s640/A3.jpg" width="640" height="388" data-original-height="824" data-original-width="1355"></div>
<p> </p>
<div>Hobart's housing market has been booming, and an overdue supply response is now reluctantly taking shape.</div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-jleMak-OHd0/Wnatg3ylE_I/AAAAAAAAoKw/VTkisyEuAV0REE9Xs7A_-M8SE7yo6pOlQCLcBGAs/s640/A5.jpg" width="640" height="388" data-original-height="804" data-original-width="1321"></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall 2017 was a stronger than expected year for approvals with more than 219,000 dwellings awarded a green tick, but the trend in high-rise approvals may well now resume its slide.</div>
<div> </div>
<div>The townhouse sector of the market looks to be an increasingly solid performer, on the other hand.</div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-2pwS0ldSwH8/WnatgONjOkI/AAAAAAAAoKo/540xndVwVMUeoyTrKHF1OjvrOPJyrAewwCLcBGAs/s640/A4.jpg" width="640" height="374" data-original-height="804" data-original-width="1371"></div>
<div> </div>
<div>Despite the fall in residential building approvals, the impact on the economy may not be as great as once feared, with the trend in monthly non-residential approvals for New South Wales hitting its highest ever level at $1.3 billion in December, while Victoria's result was even higher still. </div>
<div> </div>
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<p> </p>
<div>Non-residential approvals have been tracking at record levels, then, overwhelmingly driven by Sydney and Melbourne.</div>
<div> </div>
<div>Nevertheless, the apartment construction slowdown will be the real trend to watch this year. </div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
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Eight factors kill the apartment construction boom in its tracks: Pete Wargent

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<p class="Body">Part of the message in this week’s release of price statistics in Perth was an oversupply of properties in the market.</p>
<p class="Body">It’s a theme that will recur increasingly in major markets around Australia: contrary to the vested-interest message from the developer lobby, the biggest issue facing real estate is not shortages but surpluses.</p>
<p class="Body">In Perth, according to the Real Estate Institute of Western Australia, the growing numbers of homes available for sale has tipped the market into significant oversupply. As a consequence, prices are falling.</p>
<p class="Body">Part of Perth’s issue is too many new apartments in the market. The CBD, West Perth and East Perth unit markets all have vacancies of 7.5% or higher and there is massive new supply in the pipeline. The number of apartments to be completed in Perth’s inner suburbs this year is 52% higher than the previous record year – at a time when demand is declining.</p>
<p class="Body">This issue will be repeated in other major cities around Australia: rising numbers of properties for sale, in excess of the number of buyers, exacerbated by the insane resolve of developers to keep building mega apartment towers.</p>
<p class="Body">The Perth inner-city apartment market features strongly in the new edition of the <em>No Go Zones</em> report I published this week.</p>
<p class="Body">The oversupplied unit market problem is one of two core issues at the heart of this report. The other is resources-related locations where developers built too many new dwellings, unaware that most of the new workers coming into their areas would be FIFO personnel staying in temporary workers camps.</p>
<p class="Body">Perth is not alone in having high inner-city vacancies set to get worse as new projects are completed. Melbourne and Brisbane also have too many empty apartments but are building more – far too many. The Gold Coast, which can’t seem to shake its boom-bust addiction, is hurtling towards its next catastrophic oversupply.</p>
<p class="Body">A recent report purporting to be credible research claimed that Brisbane would run out of apartments to sell within five months. This conclusion, which had property professionals chuckling all over Brisbane, was generated through creative accounting by an entity that makes its living selling inner-city apartments.</p>
<p class="Body">The reality is that the Brisbane CBD vacancy rate is already 5% and will get considerably worse as the new high-rise developments are completed. Surrounding suburbs are in similar situations. As I have reported previously in this column, only 10% of buyers in this market are home-buyers and most of the investors who make up the other 90% are distant investors. This is a clear signal to steer clear of this market.</p>
<p class="Body">Sydney’s inner-city apartment does not have any oversupply issues – not yet. But it’s headed down the same slippery path as Perth, Melbourne and Brisbane. The number of apartments to be completed across the Sydney metropolitan area over the next three years is double the historical average rate of construction.</p>
<p class="Body">The developer lobby’s claims of shortages will begin to look silly over the next couple of years as vacancies rise and values decline. The record rate of construction of new apartments is coinciding with the end of the Sydney property boom.</p>
<p class="Body">Properties listed for sale are rising fast as sales rates and auction clearance rates fade.</p>
<p class="Body">Developers are banking on being able to sell their stock in Asia. The recent marketing launch of a Melbourne project of 140 units was typical: the project was launched simultaneously to buyers in Beijing, Shanghai, Kuala Lumpur, Sabah and Singapore – with no attempt to sell any apartments to local buyers.</p>
<p>Like most of the major unit projects under way in Melbourne – and elsewhere - they’re not being built to meet local demand. They’re being targeted on Asian investors.<span style="line-height: 1.3em;"> </span></p>
<p>The outcome will be the city’s greatest ever over-supply, with double-digit vacancy rates. Other analysts, like BIS Shrapnel, have made similar predictions. Paul Nugent of Wakelin Property Advisory has said: “Get out as soon as possible [otherwise] it will take 10 to 15 years before you get your money back.”</p>
<p>This is why Melbourne’s inner-city unit market is part of the No Go Zones report – which lists the ten markets across Australia that investors must avoid.</p>
<p>History has shown that the one factor that can collapse property values in Australia is oversupply – and that’s where the locations listed in this report are heading.</p>
<p class="Body"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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Part of Perth’s issue is too many new apartments: Terry Ryder

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-183755154986059073" class="post-body entry-content">
<div>New South Wales stamp duty and land transfer receipts were back up to $9.4 billon over the year to January 2017.</div>
<div> </div>
<div>The rolling annual number of transactions is down from previous heights, though remains high with so many apartments being constructed.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/21/NSW.jpg" target="_blank">Click to enlarge </a></div>
<div> </div>
<div class="separator"><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/2017/02/21/NSW.jpg" alt=""></div>
<div> </div>
<div>
<div><span>With a record construction boom and rising Sydney dwelling prices, it shouldn't be a surprise that stamp duty and transfers paid rose to record highs in FY2016.</span></div>
<div><span> </span></div>
<div><span>In fact, the NSW state budget surged into a massive $4.7 billion surplus in 2015-16.</span></div>
<div><span> </span></div>
<div><span>This result was miles ahead of forecasts and left the state government with net debt of less than zero.</span></div>
<div><span><br>Yes, the state government moved into a cash positive position for the first time ever.  </span></div>
<div><span> </span></div>
<div><span>To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole in the economy that will be left by declining housing construction from 2018 forth. </span></div>
</div>
<div><span> </span></div>
<div><span>Plenty more where this came from in 2017 as apartment completions hit the market (recall too that the 2016 NSW Budget introduced a 4 per cent surcharge purchaser duty on the acquisition of residential real estate by foreign persons from June 21, 2016.).</span></div>
<div><span> </span></div>
<div><span>It's important to recognise that the record windfall represents a surge in pre-sold apartments as much as any recent increase in market liquidity, as stock on market levels to date remain relatively low.</span></div>
<div><span> </span></div>
<div>
<div><span>The number of transactions jumped to above 25,000 in November 2016, and total receipts seared to an unprecedented $1.78 billion in the month.</span></div>
<div><span> </span></div>
<div><span>Just to put that number in context, the prior year equivalent figure had been only $729 million, and the previous record for any individual month was just $1.2 billion.</span></div>
<div><span> </span></div>
<div><span>The November number was so much higher than the prior year that it seemingly defies logic, although there had been a change in purchase duties for non-residents, and then there was the $16 billion Ausgrid sale.</span></div>
<div><span> </span></div>
<div><span>In January 2017 there were 17,473 transactions, a slightly lower figure than in the prior year.</span></div>
</div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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NSW stamp duty boom continues in 2017: Pete Wargent  

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<div>No data release seems to create quite as much confusion as the building activity figures.</div>
<div> </div>
<div>Construction work in the residential sector is always apparently either booming or crashing, depending on who you believe, or commonly it's both. </div>
<div> </div>
<div>Still, where there is discord may we bring harmony, by breaking it all down into three simple parts, starting with...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Commencements ease back</span></strong></div>
<div> </div>
<div>Commencements fell again by 2.8 percent to 55,070 in the September 2016 quarter, following a 7.2 percent decline in the June quarter. </div>
<div> </div>
<div>Dwelling starts fell in most states, even in New South Wales where the appetite for building is strongest, although the 'trend' figures still show NSW arcing higher. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/19/A3.jpg" target="_blank">Click to enlarge</a></div>
<p><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/2017/01/19/A3.jpg" alt=""><br><br></p>
<div>Following on from sharp falls in unit and apartment approvals, it's no surprise that it was declines in this sector which have led the fall in commencements, particularly in Melbourne.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/19/A5.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/01/19/A5.jpg" alt=""></p>
<div> </div>
<div>This in part represents nervous developers backing away from flooding the apartment markets further, as well as a failure to secure pre-sales in some cases. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 2 - Completions</span></strong></div>
<div class="separator"> </div>
<div>Despite the huge boom in building work done over recent times, completions still hadn't run too high by the end of September, with 51,070 completions in the quarter, split between 27,773 houses and 22,666 units. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/19/A2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><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/2017/01/19/A2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">The main reason for this is simply that it takes considerably longer to build a block of apartments than it does a detached house. </div>
<div class="separator"> </div>
<div>Despite this, apartment completions are starting to flow through in the most populous states, particularly in New South Wales and Queensland, although Victoria dropped back in the quarter as some developers reportedly moved into a "go slow" mode. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/19/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/01/19/A4.jpg" alt=""></div>
<p> </p>
<div><strong><span style="text-decoration: underline;">Part 3 - The pipeline</span></strong></div>
<div> </div>
<div>The most important thing to note from this release is that although the appetite for commencing new developments has cooled substantially, there were still more than 221,000 dwellings under construction as at the end of Q3 2016, including more than 150,000 units, townhouses, and apartments. </div>
<div> </div>
<div>Although some small inroads had been made into the apartment construction pipeline, the bulk of multi-unit project completions had yet to hit the market. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/19/A1.jpg" target="_blank">Click to enlarge</a></div>
<p><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/2017/01/19/A1.jpg" alt=""></p>
<div> </div>
<div>Given the sheer scale of the pipeline, perhaps it shouldn't be a surprise than an unprecedented number of approvals have not yet seen a shovel lifted in anger, with 42,591 approvals sitting in housing market Limboland.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/19/A6.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/01/19/A6.jpg" alt=""><br><br></p>
<div>Of course, there will always be some approvals waiting in this phase, yet 42,500 is just way, way above the historic norm. These are not normal times! </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, the market does seem to be correcting itself gradually with developers pulling back on new project commencements, and slowing the rate of completions in some cases to allow capital city population growth to play catch up.</div>
<div> </div>
<div>What the figures do show is that the full impact of the high rise boom had barely even begun to take shape by September 2016, so watch out for weakening apartment rents and and prices as 2017 rolls on. </div>
<div> </div>
<div>The value of residential work done in Q3 declined, contributing to an awful negative GDP print for the quarter, and the sector is likely to become a headwind for the economy as the year progresses. </div>
<div> </div>
<div><em><span>PETE WARGENT </span>is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. </em></div>
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High rise boom has barely begun so watch out for weakening apartment rents and and prices in 2017: Pete Wargent

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<p>The extension of the First Home Loan Deposit scheme was confirmed in last night’s federal Budget with new property price caps.</p>
<p>The expanded scheme, initially announced on Saturday, will allow an extra 10,000 first-home buyers this financial year.</p>
<div class="in-content-ad">
<p>“This builds on the 20,000 first home buyers we are helping to purchase a home this year,” Treasurer Josh Frydenberg said on Tuesday night.</p>
<div class="in-content-ad">
<div id="adspot-1x1-pos-5" class="ad" data-google-query-id="CKSS6u_eoOwCFVAT1QodLR4FjA">
<div id="google_ads_iframe_//31694718/domain.com.au/news_0__container__"><iframe title="3rd party ad content" name="google_ads_iframe_//31694718/domain.com.au/news_0" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" width="1" height="1" data-google-container-id="1" data-load-complete="true" data-integralas-id-d0adcd36-d763-a453-eed1-bdf01d142228=""></iframe></div>
</div>
</div>
<div class="in-content-ad">
<div id="adspot-1x1_300x250-pos-2" class="ad">The scheme enables first-home buyers to get into the market with a deposit as low as 5 per cent, and avoiding lenders’ mortgage insurance, with the federal government acting as guarantor on the loans.</div>
<div class="ad"> </div>
<div class="ad">
<table style="width: 261px;">
<thead><tr>
<td colspan="3" width="261">FIRST HOME LOAN DEPOSIT SCHEME PRICE CAPS</td>
</tr></thead>
<tbody>
<tr>
<td>State/Territory</td>
<td>Capital city/regional centre</td>
<td>Rest of state</td>
</tr>
<tr>
<td>NSW</td>
<td>$950,000</td>
<td>$600,000</td>
</tr>
<tr>
<td>VIC</td>
<td>$850,000</td>
<td>$550,000</td>
</tr>
<tr>
<td>QLD</td>
<td>$650,000</td>
<td>$500,000</td>
</tr>
<tr>
<td>WA</td>
<td>$550,000</td>
<td>$400,000</td>
</tr>
<tr>
<td>SA</td>
<td>$550,000</td>
<td>$400,000</td>
</tr>
<tr>
<td>TAS</td>
<td>$550,000</td>
<td>$400,000</td>
</tr>
<tr>
<td>ACT</td>
<td>$600,000</td>
<td>N/A</td>
</tr>
<tr>
<td>NT</td>
<td>$550,000</td>
<td>N/A</td>
</tr>
</tbody>
</table>
</div>
<p><span>Source: Housing Minister and Assistant Treasurer</span> </p>
<p>Initially Sydney first-home buyers wanting to buy needed to buy properties costing less than $700,000 with buyers in most of the rest of the state able to spend up to $450,000 to be eligible to buy under the scheme.</p>
<p>It was initially $600,000 for Melbourne buyers, $500,000 in the ACT and $475,000 for Brisbane buyers. </p>
<p>But the <span>Real Estate Institute of Australia president Adrian Kelly said t<span>he First Home Loan Deposit Scheme should be extended to all eligible buyers of all homes, not just new builds.</span></span></p>
<p><span><span>"<span>Budget 2020 was an opportunity lost in helping more Australian's into their first homes," Kelly said.</span></span></span></p>
<p><span><span><span>HIA Managing Director Graham Wolfe said b</span></span></span>y increasing the number of people eligible for the First Home Loan Deposit Scheme by 10,000, focusing on new home builds, and raising the price thresholds, that the Government had "opened the door to a larger group of first home buyers." </p>
<p><span><span><span>“An increase in the number of people that can apply for a place in the First Home Loan Deposit Scheme if they buy or build a new home and the $1.2 billion injection into the Supporting Apprentices and Trainees wage subsidy are major cornerstones in supporting jobs across the residential building industry," Wolfe said.</span></span></span></p>
<p> </p>
<p>The national estate agency Ray White welcomed the expanded First Home Loan Deposit Scheme indicating it would boost apartment sales along with detached housing.</p>
<p><span>“Unlike the established market, apartment sales have been difficult this year, so this is a very welcome boost for this sector</span>,” Ray White group managing director Dan White said.</p>
<p><span>“It will give first home owners a much better opportunity to get into new property which often focuses on inner city areas at affordable prices, appealing to a younger demographic.  </span></p>
<p><span>"Importantly, it will rebuild developer confidence to commence construction of apartment projects.”</span></p>
<p><span>The </span>UDIA national president Simon Basheer said the property industry "can and must play a central role" in powering the nation’s economic revival – generating jobs, wages and activity up and down supply chains.</p>
<div class="page" title="Page 1">
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<p><span>“Housing and construction contribute 750,000 direct and indirect jobs to the nation, so it is well placed to fill the gap caused by border restrictions and slower population growth due to current immigration levels.</span></p>
<p><span>“UDIA applauds the decision to release a new tranche of 10,000 places under the First Home Loan Deposit Scheme that are dedicated to new housing construction.</span></p>
<p><span>“The addition of these places – as well as the adjustment of price caps to better reflect median house prices across our capital cities – will give the industry a shot in the arm and boost employment.</span></p>
<p><span>“Importantly, the scheme can work in tandem with the </span><span>HomeBuilder </span><span>initiative, and we hope the Government keeps an open mind on its extension as well ahead of the end of the year.</span></p>
<p><span>“Research commissioned by UDIA shows the fall in net overseas migration will result in an average per annum reduction of approximately 50,000 homes per year for the next 5 years.</span></p>
<p><span>“Efforts to tap domestic demand and keep jobs flowing across the housing construction sector will be essential to maintaining economic momentum until net overseas migration returns to more sustainable levels," Basheer said.</span></p>
</div>
</div>
</div>
<p>The Urban Taskforce also welcomed the extended First Home Loan Deposit Scheme, but said more could be done while seeking an expansion of the HomeBuilder program too.</p>
<p><span>"Urban Taskforce re-iterates our call for changes to the HomeBuilder criteria," Urban Taskforce chief executive Tom Forrest said.</span></p>
<p><span>"Just as thresholds were adjusted state by state for the First Home Loan Deposit Scheme to include different thresholds for capital cities and areas outside each capital, the same thresholds should be applied to HomeBuilder. </span></p>
<p><span>"Greater Sydney, including Newcastle, should have apply to a Homebuilder threshold purchase price of $950,000, and the timeframes should be extended by a further 18 months to make homebuilder relevant to apartments (which take longer to build)."</span></p>
</div>
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New price caps unveiled in extension of the First Home Loan Low Deposit scheme

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<div>EXPERT OBSERVER</div>
<div> </div>
<div>Apartment construction slowed to the lowest level in half a decade in Q2 2020. </div>
<p><a href="https://1.bp.blogspot.com/-wP3hUYQF3EY/X0YcU3no3RI/AAAAAAAA30g/ytsTuEHVBakHQpCMl4Y5KEp4XqHm6IwQACNcBGAsYHQ/s1454/3%2B-%2BCopy.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-wP3hUYQF3EY/X0YcU3no3RI/AAAAAAAA30g/ytsTuEHVBakHQpCMl4Y5KEp4XqHm6IwQACNcBGAsYHQ/s640/3%2B-%2BCopy.jpg" width="640" data-original-height="826" data-original-width="1454"></a></p>
<div> </div>
<div>The slowdown was largely driven by Melbourne and its lockdown, while the other major states have seen things stabilise in this sector. </div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-WxLE6cVvp9c/X0YcU246TNI/AAAAAAAA30c/qOE9wmmN-pYr8zw9n-AtLfDNPenV9JfJQCNcBGAsYHQ/s1406/Resi1%2B-%2BCopy.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-WxLE6cVvp9c/X0YcU246TNI/AAAAAAAA30c/qOE9wmmN-pYr8zw9n-AtLfDNPenV9JfJQCNcBGAsYHQ/s640/Resi1%2B-%2BCopy.jpg" width="640" data-original-height="814" data-original-width="1406"></a></div>
<div> </div>
<div>Mining construction is now on the rise again in Western Australia, while major engineering projects in New South Wales also provided a timely boost.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-_yeVcbsaSbo/X0Ycbwkx8fI/AAAAAAAA30k/hhG2QqEZL1kqbpMXbx7iBWqjYBy8X7f4wCNcBGAsYHQ/s1398/2.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-_yeVcbsaSbo/X0Ycbwkx8fI/AAAAAAAA30k/hhG2QqEZL1kqbpMXbx7iBWqjYBy8X7f4wCNcBGAsYHQ/s640/2.jpg" width="640" data-original-height="828" data-original-width="1398"></a></div>
<div> </div>
<div>Thanks to engineering, the preliminary figures for construction hardly declined in Q2, down by just -0.7 per cent and holding up at more than $50 billion.</div>
<div> </div>
<div>The quarterly peak was $66 billion in 2017.</div>
<div> </div>
<div>Brighter times ahead for Western Australia on the back of the strength in iron ore and gold. </div>
<div> </div>
<div>As always, there's more detailed analysis from data supremo James Foster <a href="http://jamesfostermacro.blogspot.com/2020/08/australian-construction-activity-in-07" target="_blank">here</a>. </div>
<div>
<p><em><span>PETE WARGENT</span> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em><span> </span></p>
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Apartment construction continues to slide

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<p>EXPERT OBSERVER</p>
<div><strong><span style="text-decoration: underline;">WA resurgent</span></strong></div>
<div> </div>
<div>Apartment construction slowed to the lowest level in half a decade in Q2 2020. </div>
<p class="post-body entry-content"> </p>
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<div>The slowdown was largely driven by Melbourne and its lockdown, while the other major states have seen things stabilise in this sector. </div>
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<div>Mining construction is now on the rise again in Western Australia, while major engineering projects in New South Wales also provided a timely boost.</div>
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<div>Thanks to engineering, the preliminary figures for construction hardly declined in Q2, down by just -0.7 per cent and holding up at more than $50 billion.</div>
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<div>The quarterly peak was $66 billion in 2017.</div>
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<div>Brighter times ahead for Western Australia on the back of the strength in iron ore and gold. </div>
<p><strong>PETE WARGENT</strong><em><strong> </strong>is the co-founder of AllenWargent property buyers and a best-selling author and blogger </em></p>
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Apartment construction continues to slide: Pete Wargent

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<p>Australia's building and construction crisis will cost $6.2 billion in remediation and associated costs, according to new research commissioned by the construction union.</p>
<p>The independent research, undertaken by Equity Economics and contained in the report 'Shaky Foundations: The National Construction Crisis', analysed the additional costs to owners of remediating water leaks, fire safety breaches, structural failure and combustible cladding and associated costs, in apartment buildings constructed within the last ten years.</p>
<p>The research also found that over 3,400 apartment buildings across Australia had defective, non-compliant combustible cladding installed, and would require remediation work to make the buildings safe.</p>
<p>CFMEU Construction and general division national secretary Dave Noonan said that the cost of Australia's building and construction crisis was now clear, and unfortunately often homeowners would likely be the ones to foot the majority of the bill.</p>
<p>"Australia's building and construction crisis will cost a staggering $6.2 billion to fix apartments they've already paid for."</p>
<p>"This includes the cost of remediating water leaks, fire safety breaches, structural failure and combustible cladding, and costs associated with increased insurance premiums, legal fees and alternative accommodation."</p>
<p>He added that in some cases, the costs of this remediation has been up to $165,000 per dwelling.</p>
<p>Australia's building and construction crisis was brought about by a range of factors the union has been raising concerns over for some time.</p>
<p>"This is the result of the construction industry's obsession with 'deregulation' at any cost, and poor oversight by government," Noonan added.</p>
<p>"It's the result of years of not enforcing building standards and of allowing industry to 'self-approve' with little or no oversight. Often, it has fallen on the union to blow the whistle."</p>
<p>Noonan also said that a national problem required a national solution and that the union was willing to work with government to resolve these important issues for the community.</p>
<p>"We'll be producing detailed policy solutions and will work with the Federal and State governments across Australia over the coming months. Now is the time to come together – not silence dissent," he concluded.</p>
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Cladding, cracks and shoddy apartments to cost Australians $6.2 billion to repair: CFMEU

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<p>EXPERT OBSERVER</p>
<p>The NSW Government has taken the next step in reforming the building and construction industry by providing the first in-depth look at proposed legislation as part of the Building Stronger Foundations discussion paper.  </p>
<p>The community and industry now has an opportunity to provide feedback on the proposed reforms to deliver greater transparency, accountability and quality of work in the building and construction sector. </p>
<p>The legislation will implement many of the recommendations from the Lambert and Shergold-Weir reports into the building industry, and now we want to hear from industry and the wider community to help finalise the legislation</p>
<p>The NSW Government is implementing four key reforms to deliver a more robust regulatory framework for the construction of buildings, including:</p>
<p>- A requirement for buildings to be designed and constructed to plans that fully comply with the Building Code of Australia,</p>
<p>- A requirement that all building practitioners, including building designers, architects and engineers, be registered to ensure they have the appropriate skills and insurance, and can be held accountable for their actions,</p>
<p>- Introduction of a new industry-wide principle of duty of care, enabling home owners to seek compensation if a building practitioner has been negligent, and</p>
<p>- Appointment of a Building Commissioner, who will regulate all aspects of the NSW building industry, and have the power to investigate and take disciplinary action for improper conduct.  </p>
<p class="m_7727828428911959159MsoListParagraph"> We are committed to getting these important reforms right and ensuring they are developed in close consultation with the industry and community.</p>
<p>The consultation period is open until 23 July 2019 which will then allow for legislation to be drafted and introduced into the NSW Parliament.</p>
<p>The appointment of the Building Commissioner is expected to be finalised in coming weeks. </p>
<p>Kevin Anderson is the Minister for Better Regulation and Innovation.</p>
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Next step in building reforms from the NSW Government

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<p>EXPERT OBSERVER</p>
<p>A big shake up of the construction and building industry is unnecessary.</p>
<p>From a risk perspective it is relatively straightforward to unpack what has gone wrong but the impacts are alarming and go to the heart of impacting the safety and wellbeing of community members.</p>
<p>Proactive adoption by industry of the 24 review recommendations set out in the Shergold Weir report would go a long way to mitigating the risks coming to light in the building industry.</p>
<p>The challenge with an industry overhaul is that it would add to the negative sentiment that is already causing challenges in the property market and has the potential to create a perception the problem is bigger than it is. We could see quality developers caught up in the same net as less reputable operators.</p>
<p>It’s clear that people are delaying property purchasing decisions. This adds another layer to the softening property market, particularly in relation to apartment presales. Developers need to address buyer’s fears about these issues head on and move from being reactive to proactive.</p>
<p>They need to be on the front foot regarding risk mitigation and related assurances and offer clear assurance around consumer protections. This is about doing the right thing by consumers.</p>
<p>It’s impossible to say that we won’t see more of these types of failures. The very nature of the number of incidents suggests that there is something wrong and this could partly be attributed to pressure on available resources.</p>
<p>What we’re seeing manifest here is the downside of a property boom – corners get cut, shortages of specialist expertise, and required checks and assurances (certification, etc.) are also circumvented.</p>
<p>Selina Short is the managing director at Ernst &amp; Young.</p>
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