<p data-end="256" data-start="0"><a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.</p>

<p data-end="446" data-start="258">The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.</p>

<p><img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.</p>

<p>The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.</p>

<p>The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”</p>

<p data-end="626" data-start="350">Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.</p>

<p data-end="928" data-start="628">“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”</p>

<p data-end="1147" data-start="930">Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.</p>

<p data-end="1510" data-start="1149">“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”</p>

<p data-end="1510" data-start="1149"><img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" /></p>

<p>&nbsp;</p>

<p>The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.</p>

<p>Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.</p>

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.</p>
</section>


Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

<p style="text-align:start">The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;</p>

<p>The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.</p>

<p>The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.</p>

<p>Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.</p>

<p>The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.</p>

<p>As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.</p>

<p><img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" /></p>

<p>The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.</p>

<p>An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;</p>

<p>The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.</p>

<p>The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;</p>

<p>It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.</p>

<p>Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.</p>

<p>“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.</p>

<p>“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;</p>

<p>Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.</p>

<p>“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.</p>

<p>“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”</p>


Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Dwelling Construction

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<p>EXPERT OBSERVER</p>
<p>Dwelling approvals posted a much smaller than expected 0.2% dip in Dec, following a sharp 10.9% jump in November. The Consensus had been looking for a 5% pull back. Annual growth lifted to 2.7%yr, the first positive since June 2018, albeit with monthly comparisons flattered by base effects. Measured on a quarterly basis, Q4 saw a 6.1%qtr rise but approvals still down 8.3%yr.</p>
<p>As noted in our preview, the previous month's gain was heavily concentrated in NSW, which posted a 50%+ rise, approvals ex NSW down 0.9%. We attributed much of this to a delayed effect associated with regulatory changes rolled out in October with December expected to see the spike reverse.</p>
<p><img src="https://www.urban.com.au/images/2020/2/4/Dwelling%20Approvals%20CL%20JAN.JPG" alt=""></p>
<p>The December detail confirmed this with a sharp reversal in NSW (–30%mth) but the impact was negated by an even sharper high-rise-driven spike in Vic (+34%mth). Our initial take is that this is again largely a temporary effect relating to the lumpy high rise project pipeline. That said, Vic is showing a decent lift in non high rise approvals as well that may be an early sign that the wider market upturn is starting to flow through to non high rise segments.</p>
<p>Outside of NSW and Vic, approvals across the rest of Australia fell 3.6%mth on a combined basis and are tracking a much weaker profile. For the December month, approvals fell 5.7% in Qld, slumped 20% in SA but rose 5.4% in WA.</p>
<p>The segment breakdown nationally showed an estimated 11% pull back in high rise approvals which followed a 40% jump in Nov. 'Low-mid' rise approvals surged strongly, up an estimated 19% in the month and 22%yr. Private house approvals dipped 0.1%mth to be down 7.1%yr. On a combined basis, non high rise approvals were up 4.1%mth but still down 0.8%yr.</p>
<p>Renovation approvals continued to fall sharply into year end, the total value of approvals down further 1.8% in December to be down 5.5% for Q4 as a whole – the fastest pace of decline since 2016.</p>
<p>Non residential building approvals pared back some of their recent weakness, jumping 35% in the month but still down 17.5% for Q4 as a whole – the segment can be extremely volatile month to month but has moved into a fairly clear downtrend since August.</p>
<p>Overall the December update shows a complex mix with one off factors likely again exaggerating strength but some hints of firming elsewhere. As always, housing-related data should be treated with extra caution through the December-January period as seasonality can amplify volatility. On balance we continue to expect approvals to show a muted and slow response to rate cuts with a gradual lift in non high rise approvals coming through more strongly by mid-2020 (overlaid with a slightly boost from bushfire-related rebuilding) but high rise holding broadly flat. While the monthly profile for total approvals may be shaping into a sharper turning point the detail suggests the underlying cycle is turning more slowly. Either way, its likely to be a few more months before we get a clear read.</p>
<p><strong>MATTHEW HASSAN </strong>is a Senior economist at Westpac</p>
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Matthew_Hassan-HHWHptmrw4

Have dwelling approvals reached a turning point? Matthew Hassan

j.ballantyne1990-6AQqhLzZaK

Australia building activity to plummet but set for mid 2020 recovery: BIS Oxford Economics

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Significant slowdown in dwelling commencements this quarter: Cameron Kusher

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<p>If the leading dwelling construction indicators do not improve in the first half of 2019, then the pipeline of building work will be exhausted at a concerning rate, according to HIA's latest report.</p>
<p>The report found the pipeline of building work has expanded over recent years and the backlog that once existed has been reduced.</p>
<p>Tim Reardon, HIA Chief Economist said, “The downturn in the level of home building activity will be contained to the next two years, as long as migration policy is not tightened further."</p>
<p>“In 2018, market confidence fell away as dwelling prices corrected, adversely impacting all segments of the market. Investors and owner occupiers are delaying purchase decisions and foreign investment has also fallen dramatically for numerous reasons."</p>
<p>“Builders in markets with a significant volume of work in the pipeline – such as Melbourne – have not been affected by the downturn yet, but other markets that were already performing poorly – such as Perth – have seen their market fall to a new historic low point," he stated.</p>
<p>Tim Reardon is of the opinion that the building industry, which has been a driving factor for the rest of the economy for the past five years, will now be relying on the rest of the economy to deliver a "contained" downturn.</p>
<p>“The expectation that governments will not constrain net overseas migration is central to this outlook for a contained downturn."</p>
<p>“If the fall in overseas migration accelerates then interest rate cuts are likely to be necessary in order to mitigate the adverse impacts of this home building downturn on the wider economy,” concluded Mr Reardon.</p>
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The pipeline of home building work is shrinking: HIA

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<p>CoreLogic head of research Tim Lawless has noted although dwelling values have been falling over the past three months, rental rates have been increasing over the same period.</p>
<p>"In fact, rental rates are higher over the year in all capital cities other than Perth and Darwin and within all regional markets except for regional Western Australia," Lawless said.</p>
<p>"The markets experiencing the greatest increases in rents over the past year have been Hobart (10.2%) which has recorded double-digit annual rental growth for the first time since August 2009 and regional Tasmania (7.6%) which is experiencing the strongest rental growth since the end of 2008. </p>
<p>Lawless said with rental rates climbing at a time when dwelling values are falling, the result is that gross rental yields are starting to repair after a long period of yield compression.</p>
<p>"In fact, at a national level yields have not been as high as they are currently in 11 months."</p>
<p>Rental yields are lifting from record lows in Melbourne and Sydney.</p>
<p>"Throughout the last 12 months, gross rental yields in Sydney and Melbourne have lifted from historic lows.</p>
<p>"Although the increase in yields is gradual, gross rental yields in Sydney are now at their highest level since October 2016 and in Melbourne yields are the highest they have been since September of last year.”</p>
<p>“Ordinarily, higher yields would be a factor attracting more investment activity to the market, however a combination of softer dwelling values, tighter credit and lower sentiment will likely continue to dampen investment participation in the housing market.less competition from the investment sector has likely supported a rise in first home buyer buying."</p>
<ul>
<li>Highest rental yield: Darwin 5.9% </li>
<li>Lowest rental yields: Melbourne 2.9% </li>
</ul>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%201.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%202.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%203.jpg" alt=""></p>
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Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

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<p>Concerns about returns from Australia's burgeoning rent-to-build sector have been put forward by the fund manager of the $120 billion AustralianSuper’s property division, according to reports in The Australian.</p>
<p>The Australian said the superannuation firm had some doubts about the potential performance of the assets.</p>
<p>AustralianSuper senior investment manager for property Christine Phillips was reported as saying demand for build-to-rent properties in Australia was clear, and their supply was under consideration by large developers, such as Lendlease and Mirvac, but returns were in question.</p>
<p>“I don’t dispute the demand side of it. I think that there is definitely a market for institutional owned rental — professionally run rental accommodation that treats its tenants with respect,” she said.</p>
<p>“They’re able to not take the development profit, they’ve probably got land that’s sitting there at a cost that makes the numbers stack up better, they’ve got the end operation that can operate it once it’s up.</p>
<p>“The question for everyone is what return do we need to invest in Australia, and that’s proving difficult.”</p>
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Concerns about returns from Australia's burgeoning rent-to-build sector

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<p>GUEST OBSERVER</p>
<p>Approvals by local councils to build new homes rose by 10.9 per cent in June after falling by 5.4 per cent in May. House approvals rose 4 per cent to 13-month highs. </p>
<p>What does it all mean?</p>
<p>Apartment approvals bounced higher in June, but the long-term trend shows that home builders are now increasingly looking to build free-standing homes or townhouses. The share of new building allocated to townhouses has hit a 7-year high of 14.7 per cent while detached houses now account for 51.1 per cent of building – a 15-month high. Whether local councils are saying no to high rise apartments or whether it is the end- buyer saying no, builders, developers and building material providers will need to carefully watch future trends.</p>
<p>More homes are still being approved for construction by local councils. Some thought that the housing pipeline would be well and truly drying up by now, but that’s certainly not the case. The number of council approvals is actually little-changed on a year ago.</p>
<p>What do the figures show?</p>
<p>Building Approvals:</p>
<p>Dwelling approvals rose by 10.9 per cent in June after falling by 5.4 per cent in May. In trend terms, approvals rose by 0.1 per cent in June – the first rise in four months.</p>
<p>Over the past year 219,284 new homes were approved, down from the record high 242,629 in the year to August 2016.</p>
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<p>House approvals rose by 4.0 per cent in June – the third straight gain and the highest number in 13 months. Meanwhile ‘lumpy’ apartment approvals rose by 20.1 per cent in June after falling by 12.4 per cent in May. Apartment approvals have moved in a dramatic zig-zag fashion for the past five months.</p>
<p> </p>
<p>Across states/territories: NSW (+24.8 per cent); Victoria (+6.1 per cent); Queensland (+0.1 per cent); South Australia (-20 per cent); Western Australia (+19.6 per cent); Tasmania (-8.3 per cent). Trend terms: Northern Territory (-2.7 per cent); ACT (+5.9 per cent).</p>
<p> </p>
<p>Western Australian approvals hit 7-month highs in June. NSW approvals rose the most in 11 months.</p>
<p> </p>
<p>Dwelling approvals in May were down by 2.3 per cent on a year ago in seasonally adjusted terms and were down by 14.9 per cent in trend terms.</p>
<p> </p>
<p>The value of all commercial and residential building approvals rose by 2.2 per cent in June – the third straight gain. Residential approvals rose by 5.5 per cent with new building up by 5.4 per cent while alterations &amp; additions rose by 6.7 per cent to a 6-month high. Commercial building fell by 2.6 per cent in June after rising 13.5 per cent in the two previous months.</p>
<p> </p>
<p>What is the importance of the economic data?</p>
<p> </p>
<p>The Bureau of Statistics' monthly Building Approvals release contains figures on local council approvals to build residential structures such as homes and units as well as commercial premises such as offices and shops. Approval is one of the first stages of the construction ‘pipeline’ and is thus a key leading indicator of future activity. An increase in approvals would point to stronger future activity for construction-related companies.</p>
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<p><span>What are the implications for interest rates and investors? </span></p>
<p><span>Home building remains healthy – and it’s not just new homes but also renovations, tracking near record highs. At present building isn’t soaring nor slumping, but the Reserve Bank will certainly need to keep housing well and truly in the centre of its radar screen over the coming year. </span></p>
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<p class="p1"><span class="s1"><em>Craig James is the chief economist at </em><a href="https://www.comsec.com.au/default.aspx"><span class="s2"><em>CommSec</em></span></a><em>.</em> </span></p>
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Builders again embrace houses: Craig James

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<p><img src="https://counter.theconversation.edu.au/content/76776/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">GUEST OBSERVER</p>
<p class="p1"><span class="s1">Crane-spotters rejoice. The <span class="s2">10th Rider Levett Bucknall (RLB) Crane Index®</span> is public. And the news is, well, rather illuminating.</span></p>
<p class="p1"><span class="s1">Operating since 2012, the Australian RLB Crane Index® tracks the number of tower cranes in key cities in Australia. Based on the theory that cranes in the sky indicate major project construction, the index gives a simple insight into the construction sector’s health within Australia.</span></p>
<p class="p1"><span class="s1">So, what does the 10th edition tell us?</span></p>
<p class="p1"><span class="s1">The most obvious message is that if cranes were the only thing that mattered in the competition between the capitals, Sydney would win hands down. Sydney’s skylines are home to more than 50 percent of Australia’s cranes. Melbourne has 22 percent and Brisbane 12 percent, with the remaining 10 percent divvied up between other major cities across the country. While the overall number of cranes in Australia has declined slightly, the index in Sydney and Melbourne continues to rise.</span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.31.09%20AM.png" target="_blank">Click to enlarge</a></p>
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<p class="p5"><span class="s1"><strong>Most cranes are used to construct apartments</strong></span></p>
<p class="p1"><span class="s1">But it’s not just the number of these soaring splendours of the sky that is of interest to those keeping an eye on cities. There have also been shifts in the number of cranes dedicated to sector.</span></p>
<p class="p1"><span class="s1">The vast majority of cranes (about 84 percent) are used on residential sites – ie. the construction of apartments. Commercial projects come in a pitiful second with 5 percent of crane activity. Other sectors, including health, education, infrastructure and recreation projects, make cameo appearances to make up the remaining 11 percent.</span></p>
<p class="p1"><span class="s1">The distribution of cranes amongst project types, however, and the shift in this distribution, is different from city to city. All cities apart from the east coast powerhouses of Sydney and Melbourne experienced a decrease in cranes on residential projects. And the increase in cranes building apartments in Sydney (34) far outstrips any increase in Melbourne (13).</span></p>
<p class="p5"><span class="s1"><strong>Cranes cluster in Melbourne but spread all over Sydney</strong></span></p>
<p class="p1"><span class="s1">Another interesting insight from the index is the geographical dispersal of cranes across cities. The index report contains heat maps showing hot spots for crane activity. Again, the difference in the dispersal of cranes across Sydney compared to Melbourne is particularly telling.</span></p>
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<p>While Sydney’s 292 residential cranes are scattered throughout the entire metropolitan area, Melbourne’s 122 long-armed navvies are more concentrated in its inner urban core.</p>
<p class="p1"><span class="s1">Why the increases in cranes dedicated to residential construction in Sydney and Melbourne? And why the differences in dispersal versus concentration between the two cities?</span></p>
<p class="p1"><span class="s1">The larger apartment blocks which require cranes are expensive to construct – the square-metre rates are at least double the rates of lower-density dwellings. For these larger projects to be feasible, they need to be in a neighbourhood where the price of the finished apartment is still less than the price of a separate dwelling – ie. areas with a higher median house price.</span></p>
<p class="p1"><span class="s1">Previously, this situation did not apply to many suburbs. However, the most recent surge in housing prices in Sydney has pushed up prices, rendering high-rise construction feasible in many more areas. This has extended not only the prevalence of high-rise, but also their footprint across the city.</span></p>
<p class="p1"><span class="s1">Of course, the price surge has also been experienced in Melbourne, but to a lesser degree and in a more concentrated manner, with Melbourne’s pricier suburbs sticking closely to the inner urban core.</span></p>
<p class="p1"><span class="s1">A second reason for the increase and dispersion in Sydney is that many of these larger projects are now approved by Sydney planning panels, rather than by local government. The majority of members of these panels are experts appointed by the planning minister. Hence they avoid the anti-densification tradition that lingers in some local government areas, again enabling approval and construction of high-rise throughout the suburbs.</span></p>
<p class="p1"><span class="s1">The RLB crane index is therefore not just a source of fascination for urban crane-spotters. Although it isn’t exactly rigorous evidence of city morphology over time, it’s interesting to look sideways from traditional indices for novel expressions of change.</span></p>
<p>Jennifer Kent is<a href="https://theconversation.com/profiles/jennifer-kent-13822"> </a>research fellow, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/jennifer-kent-13822" target="_blank">here</a>.</p>
<p>Peter Phibbs is chair of Urban Planning and Policy, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/peter-phibbs-27130" target="_blank">here</a>.</p>
<p class="p1"><span class="s1">Both are authors for The Conversation.</span></p>
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Crane-spotting: a way to tell which Australian cities are growing and where

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<p><span>New home sales bounced back in November 2016 according to the latest </span>New Homes Sales Report from the Housing Industry Association.</p>
<p>Harley Dale, HIA chief economist, said following a dip to a two year low last October, the November bounce in new home sales is a reminder that the national new home construction sector remains in strong shape</p>
<p>“The sector may have just passed its peak, but the short term outlook is a healthy one, a conclusion supported by other leading indicators such as the ABS measures of Building Approvals and Housing Finance," he said.</p>
<p>"The survey shows a 6.1 percent bounce in seasonally-adjusted new home sales.</p>
<p>"Over the three months to November 2016 the total number of new home sales fell by 0.7 percent to be down by only 0.2 percent when compared to the same three month period in 2015.</p>
<p><span>“At this stage of the new home building cycle that’s a very impressive result – </span><span>this is already the largest and longest national new home construction cycle in history.</span><span><br></span></p>
<p><span>“</span><span>A healthy outlook for new home construction in the first half of 2017 is good news for the Australian economy, because of the huge impact that new home construction has on broader economic activity. Without the boost from housing over the last five years the domestic economy would have at some point </span><span>slipped into recession.</span></p>
<p><span>“You wouldn’t want </span><span>to be seeing signals of an imminent and sharp slowdown in national new home building acti</span><span>vity, and we’re not. Looking further out, the declines in construction activity </span><span>will inevitably </span><span>become chunkier."</span></p>
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New home sales bounce back in November 2016: HIA

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<h3 class="post-title entry-title"> </h3>
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<div>Australia's GDP increased to $1.67 trillion in financial year 2016, measured in seasonally adjusted Chain Volume Measures terms, now tracking at just above $420 billion per quarter.</div>
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<div>Following on from yesterday's post, a quick look here at industry gross value added (GVA).</div>
<div> </div>
<div>Having accounted for just over 5 per cent of industry GVA three decades ago, mining's share has swelled to 8.9 percent as export volumes begin to ramp up.</div>
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<div>Finance and insurance also now accounts for 8.9 per cent of industry GVA, up from just 4.9 per cent in 1986.</div>
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<div>You can click on the chart to expand it (or use the touch screen, if you have one of those, of course).</div>
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<div><a href="/images/2016/09/28/GVA.jpg" target="_blank">Click to enlarge</a></div>
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<br><div class="separator"> </div>
<div>On the other hand, manufacturing is shrinking as a share of the pie, declining from a share of 11.1 percent at the beginning of this chart to just 5.8 percent in 2016.</div>
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<div><strong><span style="text-decoration: underline;">Construction wind-down</span></strong></div>
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<div>The latest figures show that the contribution of construction to GDP has remained solid at 7.6 per cent, tracking at around $32 billion per quarter.</div>
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<div>A decade ago construction was contributing only $13 to $14 billion per quarter. </div>
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<div>This suggests that the planned 'hand-off' from resources to residential construction was generally a success between 2012 and 2016. </div>
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<div>However, this does also mean that as residential construction eventually winds down there will be quite a hole in domestic demand to be plugged by something other than rising mining export volumes.</div>
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<div>Given the respective skill-sets of all those construction workers, tradies, and project managers, the answer should be: infrastructure and non-residential construction, as I looked at in a bit more detail here. </div>
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<div>Indeed, the unprecedented stamp duty windfall from Sydney's property boom is already funding a range of infrastructure projects in Sydney and New South Wales. </div>
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<div>But what about the gaping gulf left behind in the resources regions? </div>
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<div>Troubling, and this may be leading to an exodus of regional workers. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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