The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Building Approvals

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EXPERT OBSERVER
Despite this recent lift the Index has still registered four consecutive months in which the growth rate has been negative. This continues to support the signal that growth through the first two to three quarters of 2019 is likely to be below trend.
Moreover the lift in the growth rate was entirely due (0.44ppts of the 0.45ppt lift) to one component – dwelling approvals – which printed a 19.1% lift reflecting a boost in the volatile high rise sector in NSW and Victoria. Note that approvals for the stable ‘private detached houses’ sector were actually down by 3.6%.
It is reasonable to expect a substantial reversal in the dwelling approvals series next month.
The signal from the Index has been consistent with the weak momentum in the second half of 2018 revealed in the print of the December quarter national accounts. In the second half of 2018 growth momentum slowed to an annualised pace of 1% from a 4% pace in the first half of the year.
Westpac expects growth in the Australian economy in 2019 to be around 2.2% – significantly below trend which is generally assessed as 2.75%.
Key to the ongoing slow growth will be a challenged consumer as households adjust to slower than expected wages growth and falling house prices. That will be compounded by a continuation of the contraction in residential house building activity that appears to have begun in the September quarter of 2018.
We have consistently highlighted these risks which are coinciding with a slowdown in jobs growth and investment spending as both political uncertainty and global volatility weigh on firms’ employment and investment decisions.
The Index growth rate has deteriorated over the last six months, declining from +0.18% in October to –0.09% in March. Four components have contributed to this deterioration: the yield spread (–0.33ppts); commodity prices (–0.19ppts); US industrial production (–0.11ppts); and the Westpac-MI Unemployment Expectations index (–0.07ppts).
On the other hand, dwelling approvals (+0.28ppts); aggregate monthly hours worked (+0.10ppts); and the ASX 200 (+0.07ppts) lifted the growth rate. The contribution from the Westpac –MI CSI expectations index was unchanged.
The Reserve Bank Board next meets on May 7. The minutes of the April Board meeting have come close to setting out an easing bias. The minutes clarify that the Board believes that lower rates will assist the Australian economy through a lower currency and a boost to disposable income. It also sets out the case for lower rates around ongoing flat inflation and an uptrend in the unemployment rate.
Conditions for lower rates are given much more consideration than the case for a rate increase. Surprisingly, there seems to be little discussion about the Bank’s ongoing poor performance around its inflation target or the likelihood that it will once again be lowering its growth forecasts when it releases its revised forecasts in its May Statement on Monetary Policy on May 10.
Westpac sees no reason to change its forecast that the RBA will make its first cut to the cash rate at the August meeting to be followed by a second cut in November.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
 
 
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Building approvals lift the Leading Index, but negative growth rate continues: Bill Evans

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EXPERT OBSERVATION
The February Australian Bureau of Statistics (ABS) figures for NSW housing approvals indicate a slight rise of 5.4%.
The ABS data in trend terms shows a slight increase in housing approvals between November 2018 and February 2019.
In February there were 5,001 housing approvals which is 5.4% more than the 4,745 approvals in November 2018.
The jump is driven by a surge in higher density apartment approvals which rose by 17.3% between last November and February this year.
This was offset, however, by a reduction of 6% in house approvals over the same time span.
<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/2019/4/5/New%20Project%201.jpg" alt="">
Source: RBA
The spike in apartment approvals may be a sign of more confidence, or more likely it represents projects submitted some time ago that were held up over the Christmas holiday break.
It is clear that many approvals are not translating into real commencements, as the pre sales rate of apartments has dropped significantly.
The Saturday Domain publication that advertises homes for sale or auction a year ago was dominated by apartments, with around 70% of the pages featuring apartments.
Recent editions have only about 10% of advertisements for apartments in a publication that has far less homes for sale overall.
The Urban Taskforce believes the new Planning Minister, Rob Stokes, and his Secretary of Planning must organise a Housing Supply Summit to assess how the current market is performing, so that policy levers could be pulled to ensure the appropriate supply for future years is maintained.
CHRIS JOHNSON is the Urban Taskforce CEO.
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cjohnson-8xfqfuuCSq

Green shoots in NSW housing approvals but more needs to be done: Chris Johnson

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GUEST OBSERVATION
PowerHousing Australia today welcomes the announcement of tax breaks for institutional investors into build-to-rent if the ALP wins the upcoming Federal Election in May.
The Managed Investment Trust withholding tax rate would be cut from 30% to 15% on tax distributions attributable to investments in BTR.
The announcement today of decreased tax rates for institutional investors if focused on affordable housing will see greater investment into the development of build-to-rent properties as part of a burgeoning new domestic asset investment class.
Build-to-rent is already established in the US where it is known as multifamily housing, and its great success has been followed through in the UK.
With house prices still out of reach to many Australians, increased investment into this emerging asset class will see more rental stock available to the market.
PowerHousing Australia met in the past year with the key pension funds, financial and affordable housing providers as well as intermediaries in San Francisco, New York and Washington and the runs are on the board for the past 30 years.
Build to Rent in the U.S supplies up to 10% of all residential housing delivery per year, and is a safe, government backed investment class which has the lowest volatility in a down turn such as the Great Recession which decimated the US housing market a decade ago.
This election announcement follows the recent announcement of the ALP’s NRAS type 10-year scheme which will subsidise investment into new affordable housing and aims to deliver a quarter of a million new dwellings in areas of need.
With each monthly Building Approvals update we see the Australian new home delivery pipeline fall away. Incentivsation through an NRAS 2.0 as promised and this MIT measure would reduce the potential for new housing delivery rates to collapse with rental prices increase to impact affordability.
The increased federal focus on tackling the housing crisis will go a long way to addressing the shortfall in affordable and appropriate housing across the country, and ensure more Australians can be adequately and fairly housed.
Nicholas Proud is CEO of PowerHousing Australia, which represents Tier One and scale-growth community housing providers.
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jonathanchancellor-7SQnKwU6yx

Build-to-rent backing will boost building approvals: Nicholas Proud 

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Home building approvals started the year on a positive note, with an increase of 2.5 percent during January in seasonally-adjusted terms.
Master Builders Australia's chief economist Shane Garrett said the rise in approvals during January follows a run of weak results during the back end of last year.
"Higher density housing in particular has lost a lot of ground over the past 12 months,” he said. 
“During January, the number of approvals for new detached houses rose by 1.9% with a stronger increase of 3.8% on the apartment/units side of the market,” Garrett said. 
“Despite the welcome increase in approvals during January, we are still down by almost 30% compared with this time last year,” he said. 
“The ongoing difficulties in the flow of credit and concerns about the direction of housing policy post-election are having negative effects on home building activity,” Garrett added. 
“Construction is the economy’s largest provider of full-time jobs and the upcoming round of federal, state and territory budgets provides a real opportunity to get us back onto the right track,” he said. 
During January, WA saw the largest increase in total new home approvals (+28.8%), followed by Tasmania (+15.4%) and NSW (+12.0%). 
The largest reductions affected the ACT (-19.8%) and the NT (-8.0%). Approvals also declined in Victoria (-7.9%), Queensland (-3.5%) and SA (-1.5%) during the month.
The raw figures announced by the ABS may be weak. 
In January, dwelling approvals decline 3.2 percent in trend terms.
Approvals for townhouses and apartments fell just over eight percent in trend terms, with private sector housing decline 0.4 percent.
 
 
 
 
 
 
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jrobinson-rf4aSBido9

Home approval boost in January, but trending lower

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EXPERT OBSERVER
Recent data from the Australian Bureau of Statistics (ABS) indicates flat housing approvals in NSW but falling non-residential approvals.
The non-residential building approvals in NSW have dropped by 25% between December 2017 and May 2018 which is of concern.
In December 2017 non-residential approvals were valued at $1,272,944,000 but six months later this has dropped to $957,551,000 according to the latest release of ABS building approval data.
<img src="https://www.urban.com.au/images/2018/7/4/UBT%20CJ%20Graph%201.JPG" alt="">
Over the six months from December 2017 to May 2018 the high density residential approvals were flat with 3,221 approvals in December rising slightly to 3,256 in May 2018.
Overall NSW housing approvals were also flat with 5,691 approvals in December 2017 and 5,860 approvals in May 2018.
<img src="https://www.urban.com.au/images/2018/7/4/UBT%20CJ%20graph%202.JPG" alt="">
The signals in the industry are that there is a slow-down building up in the housing market that will carry on for some time but that the slow-down will not be dramatic.
Normally the nonresidential building sector balances a slow-down in residential construction but it appears this is not happening.
Sydney still has a need for large numbers of new homes so the NSW Government will need to carefully monitor the trends ahead to ensure new housing supply continues at a steady rate.
We at the Urban Taskforce are concerned that the lifting of caps on infrastructure contributions and potential value capture and affordable housing levies could add costs to housing development at a time when the industry is slowing.
This would lead to even less housing projects going ahead.
We are also concerned that in the lead up to the next NSW election in March 2019 there is a significant amount of anti-development discussion in the media and a number of politicians are using the concerns in the community to put planning for new housing on hold.
A pre-election slow-down in development approvals could lead to a more difficult post-election environment where housing supply went backwards.
Chris Johnson is Urban Taskforce CEO.
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Housing approval rates flat and non-residential falling in NSW: Chris Johnson

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EXPERT OBSERVATION
The May building approvals data support ANZ's view that the peak in new housing approvals has past.
Weak housing finance results and the ongoing tightening of credit availability are likely to see approvals continue to ease.
From an investment point of view, the backlog of work will keep activity elevated over the near term, but construction is expected to fall through the end of this year and 2019.
<img src="https://www.urban.com.au/images/2018/7/3/ANZ%20Past%20Peak%20Approval.JPG" alt="">
Australian residential building approvals were slightly weaker than market expectations in May, falling 3%, after a 5% decline in the previous month.
Queensland was the main driver of this weakness.
Apartment approvals in the state fell 35%, to the lowest level in four years.
The historically stable segment of detached houses saw a 20% fall in approvals.
While these falls follow quite strong results in the last two months, the 2,700 dwellings approved in Queensland in May is the weakest monthly result since June 2013.
<img src="https://www.urban.com.au/images/2018/7/3/ANZ%20Detached%20House.JPG" alt="">
Detached house approvals also recorded a significant decline in Victoria, down 10%.
However, strength in the unit/apartment segment (+15% m/m) meant that Victorian approvals were overall unchanged.
These results are consistent with ANZ's view that Australia is past the peak in housing approvals.
<img src="https://www.urban.com.au/images/2018/7/3/ANZ%20weak%20housing%20finance.JPG" alt="">
Looking forward, the decline in housing finance for the construction and purchase of new dwellings suggests that building approvals will continue to trend lower.
The tighter credit environment appears to be impacting the construction side, as well as prices, but a large backlog of work will support investment in the near term.
Daniel Gradwell is the senior economist for <a href="https://www.anz.com.au/">ANZ</a>.
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New housing approvals past peak with further weakness likely: ANZ

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The latest Australian Bureau of Statistics (ABS) figures for April 2018 show a big drop in non - residential approvals for NSW.
The April 2018 approvals for non-residential buildings in NSW have dropped from a high in December 2017 of $1,272 million to $877 million in April 2018 according to the ABS trend figures released today.
This represents a drop of 31% over a 4 month period which is of concern in relation to the jobs that flow from construction.
The residential approvals however seem to be stable with 5,744 approvals in April 2018 which is just ahead of the 5,691 approvals in March. Both detached houses and higher density apartment approvals were steady.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/31/taskforce.jpg" target="_blank">to enlarge.</a>
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There are concerns that the current slow-down in the sales of homes, particularly for pre-sales for apartments, could mean some projects will be delayed therefore reducing the job potential from residential construction. It is also clear that housing sales are slowing with the recent announcement by the NSW Treasurer of a drop in sales tax returns to the state government from the sale of new and existing homes.
The NSW Government will need to carefully watch the slowing amount of activity in the building construction sector that will impact on the 400,000 jobs currently generated by the sector. There are a number of levies applied by the state government and by councils that are impacting on the cost of housing that could be modified to help boost the supply of much needed housing particularly in Sydney. 
The Urban Taskforce is keen to work with the NSW Government to ensure that the significant number of jobs generated by the development sector is maintained over short and long term periods. 
CHRIS JOHNSON is the Urban Taskforce CEO.
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NSW sees non-residential building approvals drop by 31 percent

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Guest Observer
Dwelling approvals rose by 17.1 per cent in January after declining by a downwardly revised 20.6 per cent in December (previously -20.0 per cent).
It was the strongest monthly increase in over four years. The annual value of commercial building approvals stands at record highs of $47.4 billion.
What does it all mean?
Commercial building approvals reached record highs in dollar terms at $47.4 billion in January. Strong growth in tourism and high occupancy rates are likely encouraging activity in the CBD hotels sector. High demand for warehousing from growing online retailing may also be supporting industrial commercial developments. Office sentiment also remains elevated according to the latest NAB commercial property survey.
<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/2018/3/6/commercial%20building.jpg" alt="">
Apartment approvals remain volatile, especially in Melbourne. This is to be expected during the summer ‘low’ season. Victorian dwelling approvals are up by 22.5 per cent over the year, reflecting the underlying strength of the economy and nation-leading population growth.
But it’s Queensland that leads the nation in total building approvals with an annual growth rate of 24.5 per cent. Much has been made of a potential apartment supply glut in Brisbane. Apartment approvals have rebounded, almost doubling over the year to January.
Overall dwelling investment may have peaked, but detached house building activity remains healthy. House approvals are up by 5.9 per cent over the year to January, despite some seasonal weakness, especially in Queensland
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What are the implications for interest rates and investors?
The housing market is continuing to rebalance across the country. Prices are cooling in Sydney and Melbourne and investor demand has subsided in the face of lending restrictions.
Commercial property building has reached record highs. This could provide support for building commencements, especially with residential construction softening from record high levels. Of course, approvals need to translate into starts, though commercial property building activity sentiment is positive.
Apartment supply remains in focus. Seasonal volatility makes it difficult to get a read on council approvals – especially in Sydney and Melbourne. Nevertheless, concerns still persist about a supply glut of inner Brisbane (i.e. West End) and suburban (i.e. Chermside) high rise unit blocks. Still, Queensland is leading the country in jobs growth and interstate migration is strengthening.
Ryan Felsman is a senior economist at CommSec.
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Commercial approvals at record highs, apartment approvals volatile: CommSec

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GUEST OBSERVER
The headline number of new dwelling approvals rose again during October - the third consecutive month of expansion – a consequence of significant growth in Victoria. 
The ABS Building Approvals data report that the total number of new dwelling approvals rose by 0.9% compared with September.
This growth was underpinned by a 24.3% increase in approvals in Victoria and 6.1% growth in Queensland, which outstripped the declines in all other states.
The remarkable growth in Victoria is the stand-out feature of the Australian housing market at the moment.
Strong employment growth in Victoria is attracting interstate and international migration and the rising population is continuing to drive demand for more housing stock.
The record supply of new apartments in the state has not been able to fully satisfy demand.
Today’s data are consistent with our latest forecasts which were released earlier this week. The short- term outlook for new home building has been upgraded.
During 2018, we foresee an 8.2% reduction in new dwelling starts followed by a decline of 10.0% in 2019. This will mean that new home building activity will ease to levels that remain high by historic standards.
The positive result was driven by new detached house approvals which saw a 1.9% gain during October. Approvals on the multi-unit side dipped by 0.2% during the month.
New dwelling approvals declined in five jurisdictions during October, with the largest fall affecting Western Australia (-17.8%).
There were also reductions in Tasmania (-13.1%), South Australia (-8.4%), New South Wales (-6.8%) and the ACT (-5.3%). Only two states experienced growth in new dwelling approvals during October 2017. 
Shane Garrett is a senior economist at HIA.
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Victoria pushes national approval rate higher: Shane Garrett

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GUEST OBSERVER
Vital Signs is a weekly economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the data affecting global economies.
This week: the RBA cash rate, new car sales, building approvals and a worrying survey from UBS.
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Data released this week in Australia and the United States showed continued strength - or at least a lack of weakness - in consumer spending and unemployment.
New car sales in Australia - one measure of consumer sentiment and spending - declined slightly in September from the year before. However, new car sales are still slightly ahead (0.2%) of last year’s numbers, on a yearly basis.
<a href="https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/B4669E44CACBB1D5CA257E38001BDFC5?OpenDocument" target="_blank">Building approvals</a> also showed some mixed signs. The data shows overall approvals were up 0.4% in August. They had fallen 1.2% (on revised figures) in July. This was driven by apartment approvals, which were up 4.8%, while approvals for houses fell 0.6%. Year-on-year the news is still bleak. Approvals are down 15.5% on that basis - the 12th consecutive month they have fallen.
Perhaps developers don’t like to build into property bubbles, at least not forever.
In the US there was continued strong employment data, this time from payroll processing records. <a href="https://www.adpemploymentreport.com/2017/September/NER/NER-September-2017.aspx" target="_blank">ADP data</a> showed that US private-sector employers added 135,000 jobs in September. This was well above market forecasts that were subdued due to Hurricanes Harvey and Irma. It is now expected that the US unemployment rate will stay at the current very low 4.4% when official data is released.
However, the US Federal Reserve is still concerned about the low level of inflation, which has been persistently below its target range. Recently, Fed Chair Janet Yellen <a href="https://www.federalreserve.gov/newsevents/speech/yellen20170926a.htm">observed</a> that:
"My colleagues and I may have misjudged the strength of the labor market, the degree to which longer-run inflation expectations are consistent with our inflation objective, or even the fundamental forces driving inflation."
That was a very candid observation, but perhaps just as importantly, Yellen pointed out one important reason why it matters, <a href="https://www.federalreserve.gov/newsevents/speech/yellen20170926a.htm" target="_blank">saying</a>, 
"Sustained low inflation such as this is undesirable because, among other things, it generally leads to low settings of the federal funds rate in normal times, thereby providing less scope to ease monetary policy to fight recessions."
Meanwhile, in Australia the RBA left the official cash rate at 1.50% for the 13th (lucky for some?) consecutive meeting, with no rate rise in sight. RBA governor Philip Lowe said this week:
"Slow growth in real wages and high levels of household debt are likely to constrain growth in household spending."
This underlines the consistent bind that Lowe finds himself in. If he raises rates then he could put already debt riddled households under further pressure and crater spending - which accounts for roughly three-quarters of GDP - as those households try and adjust their balance sheets in the face of stagnant wages.
It has been a consistent theme of this column that both the Fed and RBA are in something of a bind - if for slightly different reasons. And both Yellen’s and Lowe’s remarks highlight this.
But the truly scary news this week was about Australian mortgages, with a survey from UBS saying that one-third of Australian borrowers don’t know their mortgages are interest only. Or as UBS put it:
We are concerned that it is likely that approximately one-third of borrowers who have taken out an IO mortgage have little understanding of the product or that their repayments will jump by between 30-60 per cent at the end of the IO period.
Now, economists don’t normally put much stock in surveys – we like “revealed preference” data. But this survey I will listen to.
This has US circa 2008 written all over it. Back then, many borrowers with adjustable-rate mortgages didn’t realise that the rates ratcheted up sharply after (typically) five years. When those rates did, and the borrowers couldn’t refinance because of market conditions, there was a meltdown that led to Bear Sterns and Lehman Brothers going to the wall. And then, of course, the whole financial crisis.
If UBS is right, Australia has a similar time-bomb ticking away. Maybe not quite as bad, but I don’t know. Remember <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/4corners/betting-on-the-house/8816724" target="_blank">ANZ chief executive Shayne Elliot on Four Corners</a> telling us how his mortgage book was super-diversified because they were all uncorrelated individual mortgages? Well, not if his book includes folks who don’t understand their loan contracts.
<img src="https://counter.theconversation.com/content/85035/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Whatever APRA is doing right (or wrong), it can’t deal with loans that have already been written. That puts the RBA in a bind - and should make us all cautious about how robust the Australian economy really is.
<a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">Richard Holden</a>, Professor of Economics and PLuS Alliance Fellow, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/vital-signs-the-data-is-mixed-but-worrying-signs-from-mortgagees-85035" target="_blank">original article</a>.
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