Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Capital Gains

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The Turnbull government is planning to cut capital gains tax concessions for property investors, according to a report in The Australian Financial Review.
It says the policy backflip will be unveiled in the May budget.
"It is understood the policy being worked on within government would be confined to property investment, and not apply to all investments such as shares, as Labor's plan would," reporter Phillip Coorey wrote.
The options being worked on include following Labor in halving the 50 percent discount on capital gains tax to 25 percent, or reducing it by another amount. The other is adopting a phased model in which the discount would increase the longer the property was held. A property would have to be held for several years before the investor was eligible for the full 50 percent discount.
The suggestion has been wrapped up as seize the initiative on housing affordability but will provide revenue to help replace soon-to-be dumped budget cuts.
"Neither would the Coalition policy target negative gearing, as Labor is doing."
But Malcolm Turnbull this morning said the Government did not support the Labor Party’s plans to increase capital gains tax or negative gearing.
“We do not support the Labor Party’s plans to increase capital gains tax or indeed their plans to outlaw negative gearing.
"Our policy is… focused on encouraging investment and employment and the economic growth and opportunity that Australians need”.
“The only party that is an advocate for higher taxes is the Labor Party… We are a party of lower taxes, supporting investment, supporting employment, and bringing the Budget back into balance”.
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jchancellor-FAypfDUnLy

Property investor capital gains tax mooted to rise in 2017 Federal Budget

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Over the five years to December 2016, the number of suburbs nationally with a median value of at least $1 million has increased by 176%.
There was a time in which having a dwelling worth $1 million or more meant that the property was exclusive and rare. 
Today dwellings with a $1 million valuation are becoming much more common. 
At the end of 2016, there were 760 suburbs nationally that had a median value of at least $1 million. 
This figure has increased from just 275 suburbs nationally five years earlier.
Units have been the big mover with the number of $1 million suburbs increasing by 479% over the five years compared to a 160% increase for houses.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.24.28%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.24.28%20pm.jpg" alt="">
Some 87% of the suburbs nationally that had a median value of at least $1 million were located in either New South Wales (70.3%) or Victoria (16.7%) up from 75.6% in New South Wales (60.4%) and Victoria (15.3%) five years earlier.
The combined capital cities accounted for 93.5% of all the $1 million suburbs in 2011 and this increased marginally to 93.6% in 2016. 
This is representative of the higher cost of housing in capital city markets. 
It also highlights the relatively weaker value growth performance of regional housing markets throughout recent years.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.27.45%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.27.45%20pm.jpg" alt="">
Escalating dwelling values in Sydney, and to a lesser degree Melbourne, have resulted in an increasing proportion of the suburbs with a median value of at least $1 million over the past five years. 
At the end of 2011, 57.8% of the suburbs nationally with a median value of at least $1 million were in Sydney, by the end of 2016 the proportion had risen to 65.4% of suburbs nationally. 
The proportion of $1 million suburbs in Melbourne has increased to 16.4% of suburbs nationally at the end of 2016 from 15.3% at the end of 2011.
Further highlighting the rapid increase in values over recent years is the data for suburbs with a median value of at least $2 million.
At the end of 2011, 39 suburbs nationally had a median value of at least $2 million. 
By the end of 2016, this figure had risen to 136 suburbs nationally, an increase of 249% over five years. 
At the end of 2011, 30 of the 39 suburbs were located in Sydney and by the end of 2016, 115 of the 136 suburbs were located in Sydney.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.28.30%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.28.30%20pm.jpg" alt="">
While rising housing values increase the asset wealth of owners, it is also reflective of the fact that for those who don’t yet own a home it is becoming increasingly difficult to save a large enough deposit in order to purchase a home. 
This is particularly the case in Sydney and Melbourne where over the past five years, dwelling values have increased by a total of 68.1% and 43.3% respectively. 
Meanwhile, wages are increasing at their slowest pace on record and housing affordability is once again a central them in the political debate. 
The rise in suburbs with a median value of at least $1 million over recent years is reflective of the growing chasm between those that own homes and those who don’t.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

Number of million dollar suburbs surges to 760 during 2016: CoreLogic

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Home values across Australia’s eight capital cities rose at the slowest annual rate in more than three years at the end of the June quarter, according to the Australian Bureau of Statistics.
National prices increased by 4.1 percent annually.
It was the lowest rate of growth since March 2013, when the rate was 3.1 percent.
For the year to June 30, Melbourne residential property ­prices rose 8.2 percent.
Sydney prices were up 3.6 percent annually.
Sydney and Melbourne, led growth in the quarter too, with 2.8 percent and 2.7 percent respectively.
Perth dropped 1.2 percent over the quarter and 4.8 percent over the year.
Darwin fell 2.4 percent in the quarter and 6.5 percent for the year.
The Sydney slowdown was evident as prices rising 3.6 percent in the year to June, was down from 9.7 percent in the year to March. 
Sydney's median house price rose to $880,000 in the quarter – equal to its value a year earlier – from $850,000 in the March quarter. 
The pace of growth also ticked slightly lower in Melbourne, to 8.2 percent from 9.8 percent in March.
The declines worsened in Perth – to a 4.8 percent fall from 4.5 percent – and also in Darwin, where prices declined 6.5 percent compared with 4.9 percent in March.
Growth picked up in Brisbane (to 4.3 percent from 4.1 percent), Adelaide (to 3.5 percent from 3.1 percent), Hobart (to 4.9 percent from 4.2 percent) and Canberra (to 6 percent from 4.6 percent). 
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Melbourne price growth leads nation while Darwin and Perth residential prices continue to decline

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The annual rate of capital gain has slowed from its peak but remains quite strong according to CoreLogic with the average national combined capital gain from houses over the last 12 months at 7.2 percent.
Capital gains for apartments stand at 5.5 percent, according to CoreLogic.
<a href="/images/2016/09/06/CoreLogic_Graphs/Screen%20Shot%202016-09-06%20at%201.25.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/06/CoreLogic_Graphs/Screen%20Shot%202016-09-06%20at%201.25.10%20PM.png" alt="">
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j.ballantyne1990-6AQqhLzZaK

Annual rate of capital gains slowing from market peak: CoreLogic

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Be warned if you are buying or selling your $2 million plus home in NSW, there's new onerous tax paperwork obligations.
The Federal Government has introduced what they dubbed was a foreign residents’ capital gains withholding tax - with the worthy aim to catch foreigners selling up and taking off with all the proceeds.
But is is actually causing severe inconvenience and costly impacts on Australians in suburbia.
The laws makes buyers de facto tax collectors - and the wide tax net being cast will not just catch those few tricky foreigners on their mostly profitable exit from our shores.
It basically requires the purchaser, where the vendor is a foreign resident, to hand over 10 percent of the purchase price towards the Australian Tax Office who will then assess the foreigner's full tax obligations.
But every Australian resident vendor also needs to provide a clearance certificate otherwise 10 percent will head off to Canberra for a time.
The obligation is on the purchaser to ascertain if the vendor is foreign, and if so, then have your solicitor and bank, direct 10 percent to the ATO on settlement. 
It comes with penalties as any purchaser who fails to correctly withhold will pay an administrative penalty equal to the amount of tax they should have remitted to the ATO.  
Where a certificate is provided, the purchaser has no requirements.
Ideally it ought be included by the vendor in the contract on auction day, but the online Clearance certificate application for Australian residents form only became available on ato.gov.au/FRCGW from late June which didn't help its introduction.
Solicitors, who have had to hike conveyancing fees, tell me there have been long delays in obtaining a certificate. 
This means some resident vendors are having rightful funds temporarily withheld from sale proceeds. Chaos if your are off to buy something else.
Any likely prestige vendor this spring ought apply asap to the ATO for a clearance certificate even before the property gets listed for sale as it lasts 12 months.
And also if you think there's a chance the house or apartment will likely fetch $1.9 million, but might fetch $2 million on auction day.
Also get your tax returns in for the past two years because that will assist in the process. If the property ownership and revenue is part of the black economy then expect it to be detected once it goes onto the ATO data base.
If the vendor is an Australian resident, the aim is for a certificate to be issued electronically within days, but data irregularities will trigger weeks of delay.
Any withholding does not affect the transfer of ownership, but it may prudent for a special condition in the sales contract that delays completion until obtaining an ATO certificate.
This all dates to 2012 with the legislation finally becoming law in February this year to take effect from July 1 for property including vacant land, buildings, residential and commercial property, leaseholds and strata title schemes. The government website suggests the $2 million figure ensures the vast majority of residential house sales will be unaffected, though CoreLogic has the number of Sydney suburbs with a median value in excess of $2 million doubling in the space of just a year to 40.
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Foreign residents' withholding tax to leave locals short for property upgrades

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SPONSORED POST
Capital gains can make up a significant proportion of your investment return on a rental property.
The capital gain is the difference between the sale price you receive when you sell and the cost base. The cost base includes the purchase price, plus buying expenses and the cost of any improvements or repairs you needed to make before you started renting the property out.
If you sell your investment property at a profit, you’ll usually have to pay tax on the capital gain.
Capital gains tax is not charged at a at rate, but rather at your marginal tax rate.
In general, you’ll receive a 50 percent CGT discount if you’ve owned the property for more than 12 months, so you’ll be liable to pay tax on only half of the gain. 
For example, if you bought an apartment in 2002 for $285,000 including purchase costs and sold it in 2016 for $500,000, the capital gain is $215,000. Since you’ve owned the property for more than a year, you’ll receive a 50 percent CGT discount when tax is calculated. That means $107,500 of the gain is taxable at your marginal tax rate for the year.
This ruleapplies to properties purchased on or after September 21, 1999 when the CGT discount was introduced for pro ts made on assets that had been held for more than 12 months.
Different rules apply to properties purchased before September 21, 1999 and there are many exceptions.
VARIATIONS
CGT was introduced on September 20, 1985. If you bought the property before that date you won’t usually have to pay tax on profits from selling.
The family home is also exempt from CGT. But you will have to pay CGT on pro ts made in selling a holiday home or other investment property that you don’t rent out. You may be able to include the costs of ownershipin the property’s cost base, which would reduce the CGT liability.
Special rules also apply to capital gains made on properties you’ve inherited, and to gains you make where your investment property started out as your primary residence or became your home after having been rented out for a period of time.
INVESTMENT LOSSES
Some investors make a capital loss when they sell their rental property. In this case, the loss can be offset against capital gains made on other investments.
If you made a net capital loss during the year, you can carry it forward and deduct it from capital gains you make in future. Capital losses can only be deducted from capital gains: you can’t claim a capital loss against income you’ve earned.
The CGT rules can be complicated. It’s wise to seek professional advice to see what applies in your situation. 
To download a free ebook on new financial year taxation tips for property investors,<a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/55208-new-financial-year-tax-planning-tips-for-property-investors" target="_blank"> click here</a>.
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po-LsXgBTHBmX

Capital gains and rental property investment returns

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Hi Margaret, my wife &amp; I live on 50 acres we bought the property 20 years ago , built a house &amp; lived in since. We have 10 cows which we make a little money on each year &amp; is the only income of the property. Our main income is away from the property (apart from the office &amp; shed) my question is would we be CGT exempt because we use the other 45 acres for farming, although it's not our main source of income?
Answer: The answer to this question has many parts and depends on a number of circumstances, and so I checked with Property Success tax expert Ian Rodrigues to see what he thought about it. The first this to check is the actual date that you purchased the property.  It appears to be after they introduced the Capital Gains Tax rules but that is worth checking first as if it was before, then everything changes.  It's also important to know if you bought the property or if it was passed to you, perhaps through an inheritance as this impacts as well. The Principal Place of residence exemption should apply to the house and surrounding land up 2 hectares (about 5 acres). You mention an office and shed - were these rented out, or did you use them for conducting any kind of business, and subsequently claim any proportional deduction on them?  If you did then this will mean that a part of your principal place of residence will be considered to be liable for capital gains tax and this will need to be established. The rest of the land outside the 5 acres are subject to CGT regardless of how they were used. There are major issues to consider here in regard to:-         1. was farming a business for tax (and so, what went into your tax returns?). Small business CGT concessions could apply here and         2. what is the valuation split of PPOR and acres? Sometimes the house is the substantial part of these acres and therefore carry the much of the value of the entire block, and at other times the acres are prime land and therefore make up a substantial part of the calculations.  Your situation is a little complicated,  and it is absolutely critical that you get advice based on all the facts of this situation. Although the outcome may end up the same, you need some serious planning put in place, as you may have access to small business CGT rules and super rollover rules too. 
Have a property question?  <a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

CGT exemption and farmland: Ask Margaret

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Entering the property market is a tough gig for first home buyers, especially when faced with competition from buyers who hold larger buying budgets, some of which has been accrued from property equity earned as a result of recent strong capital gains.  
While home value rises have been moderate over recent years outside of Sydney and Melbourne, it provides little comfort for first home buyers in the two largest cities who struggle to compete with those that already own homes.
In 2008, combined capital city home values fell by -6.1 percent in the space of 9 months. By the end of the year, home values had reached and began to climb further thereafter. 
<a href="/images/2016/05/25/Screen%20Shot%202016-05-26%20at%203.35.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/25/Screen%20Shot%202016-05-26%20at%203.35.10%20PM.png" alt="">
The growth drivers largely came from two forms of stimulus: aggressive interest rate cuts and a boost to the First Home Owners Grant (FHOG). Since the removal of the FHOG boost and scaling back and complete removal of others, first home buyers have continued to languish at near record-low levels.
The increase in home values across each capital city from December 2008 to April 2016 can be seen in the first of the adjacent charts. Another way to think about this is that if in December 2008 you owned a home worth $500,000 it is now worth $758,418 which is $258,418 more than in December 2008. Looking at this same calculation across each capital city, the increases in value over that time based on a $500,000 home owned in December 2008 are: Sydney ($400,825), Melbourne ($338,866), Brisbane ($73,417), Adelaide ($81,029), Perth ($64,096), Hobart ($11,263), Darwin ($109,293) and Canberra ($126,262).
The data clearly shows that the value property for home owners has undergone some massive rises, the increase in inflation and wages has been comparatively more sedate. 
Although combined capital city home values have increased by 51.7 percent between December 2008 and April 2016, inflation has increased by a significantly lower 17.1 percent over the period. CPI has increased by a greater amount than values in Brisbane, Adelaide, Perth and Hobart indicating ‘real’ home values have fallen. Meanwhile in Sydney, Melbourne, Darwin and Canberra CPI growth has lagged that of home value growth. 
Looking at wages growth between December 2008 and March 2016, the data shows that nationally, and in New South Wales, Victoria and the ACT, it has lagged value growth across the capital cities; wages are now growing at their slowest pace in at least 18 years. 
While the increases highlighted include strong wage increases in the latter part of the mining boom, nonetheless, it shows that in NSW and Vic wages are increasing at a much slower pace than home values in Sydney and Melbourne are. 
The last chart shows the change in the value of new lending (excluding refinances) to investors, owner occupier first home buyers and subsequent buyers between December 2008 and March 2016, and highlights how the value of lending to owner occupier first home buyers is now lower than it was in December 2008 across each state and territory. 
This has occurred despite the increase in home values over the timeframe.
While lending to owner occupier first home buyers has fallen, lending to investors and subsequent buyers has increased in most states and territories with substantial rises in NSW and Vic.
Outside of Sydney and Melbourne home values have increased below or at a similar pace to inflation and wages, however, it is a very different story in the two largest capital cities where existing Sydney and Melbourne home owners have seen significant increases in the ‘real’ value of their home.
Those that do not yet own a property will struggle to compete with investors and upgraders who have been active in the market and where significant equity has been acquired.
<a href="/images/2016/05/25/Screen%20Shot%202016-05-26%20at%203.36.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/25/Screen%20Shot%202016-05-26%20at%203.36.10%20PM.png" alt="">
The simple answer for first home buyers, particularly in Sydney and Melbourne, is to look to buy properties outside of these cities however, that may seem a little simplistic given jobs creation has not been as strong outside of Sydney and Melbourne and for many moving interstate, employment opportunities are generally a big decision.
Even buying outside of Sydney in nearby regional cities may not be attractive because transport infrastructure does not provide quick and efficient access to Sydney and Melbourne from nearby regional cities. 
Whatever the outcome, we certainly don’t advocate for the return of grants for first home buyers as they have tended to just push up the cost of housing.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Investors and owner occupiers keeping first home buyers out of market: CoreLogic RP Data's Cameron Kusher

Property 101: Foreign resident capital gains withholding rules

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The value of every Australian home is at risk if Labor wins the Federal Election, given their negative gearing policy, according to John McGrath.
He warned it would affect every single person who owned or rented a home, not just investors.
Property values would drop and rents would go up, he said.
Mr McGrath, on the Gold Coast for his 19th Australasian Real Estate Conference, warned of the “clear danger of curbing negative gearing and the capital gains tax buffer”.
“It will affect every single Australian who owns a home, their biggest asset is at risk.
"People are saying numbers like 20-30 percent falls in value.
"I don’t know what number is right but there will be a material drop in value to the downside by 5-10-15-20 percent, of that I am sure,” Mr McGrath told News Corp papers.
“This is a not a political statement.
"But Australia will go to bed one night and wake up on July 3, and someone’s property will have gone from being worth $600,000 to $540,000 in value and that’s a horrible thing.
“The other 30 percent of people (who are not owners or paying off a home) are tenants will be in trouble too.
"If they think the current supply is short it is going to get worse and landlords are going to be focused on getting better returns as the CGT will be of less benefit so negative gearing will no longer be a deduction so rents will rise.
“Property prices will drop materially and rents will skyrocket materially, and whether or not that’s 10 to 30 percent, only time will tell.”
Under Labor, negative gearing will be restricted to “newly constructed homes”, and capital gains tax discount reduced from 50 percent to 25 percent.
Both measures would come into force from July 2017.
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