<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Dwelling Vlaues

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EXPERT OBSERVATION
Throughout the 2018-19 financial year, 26.0% of all houses sold nationally were under $400,000 and 32.5% of all unit sales were under $400,000.
Despite the weakening housing market the share of house sales under $400,000 was virtually unchanged from a year ago, down from 26.3% the previous year while the share of unit sales under $400,000 increased from 31.0% over the 2017-18 financial year.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20national%201.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20national%201.jpg" alt="">
Source: CoreLogic 
Across the combined capital cities, 13.9% of house sales over the 2018-19 financial year were under $400,000 and 24.6% of unit sales were under this price point.
The share of house sales under $400,000 was virtually unchanged from the previous year, recorded at 13.8% while the share of unit sales was noticeably lower at 22.3%.
Despite house and unit values falling -8.7% and -5.9% respectively over the year, it is interesting to note that the share of unit sales under $400,000 has increased much more for units than houses.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20combined%20.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20combined%20.jpg" alt="">
Source: CoreLogic 
Across the combined regional markets, 42.8% of all house sales over the past financial year and 54.3% of all unit sales were under $400,000.
Unlike the combined capital cities, the combined regional markets have seen the share of sales under $400,000 record a sizeable decline compared to the previous financial year when 44.1% of house sales and 55.6% of unit sales were below $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20sydney.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20sydney.jpg" alt="">
Source: CoreLogic 
Over the 2018-19 financial year, 2.3% of all house sales in Sydney were below $400,000 compared to 2.0% over the previous financial year indicating a slight increase.
It was a similar story for units with 5.7% of all sales below $400,000 over the past year compared to 4.4% a year earlier.
Despite the recent declines in dwelling values in Sydney, there has not been any substantial increase in the share of sales below $400,000.
In regional NSW, the decline in dwelling values over the past year has been significant but not as large as that in Sydney.
At the end of the 2017-18 financial year, 29.3% of all house sales and 42.1% of all unit sales were under $400,000.
By the end or 2018-19, the share of sales under $400,000 had reduced to 28.5% for houses and 39.5% for units, indicating that falling dwelling values had led to no increase in the share of sales under $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20mel.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20mel.jpg" alt="">
Source: CoreLogic 
Although Melbourne dwelling value shave fallen throughout the 20181-9 financial year there has been a further decline in the share of houses and units selling below $400,000.
The share of houses selling for less than $400,000 fell from 3.6% over the 2017-18 financial year to 2.9% over the 2018-19 financial year.
It’s a similar story for units that recorded a fall in the share of sales under $400,000 from 21.9% to 21.2% over the past two financial years.
The ongoing increases in values across regional Vic has resulted in a further decline in the share of sales under $400,000.
Over the 2017-18 financial year, 61.9% of houses and 81.2% of units sold for less than $400,000.
A year later, 56.1% of house sales and 78.5% of unit sales were less than $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20brisbane%20.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20brisbane%20.jpg" alt="">
Source: CoreLogic 
Although Brisbane dwelling values have recorded a moderate fall over the past year, the share of house sales under $400,000 has reduced while the share of units selling under that price point has increased. Over the most recent financial year, 23.2% of houses and 53.5% of units sold for less than $400,000.
By comparison, over the 2017-18 financial year 25.0% of houses and 51.5% of units sold for less than $400,000.
The share of units selling under $400,000 was last as high as it is currently in 2012-13 financial year.
Despite ongoing falls in dwelling values across regional Qld, there has been virtually no change in the share of sales below $400,000 over the past two financial years.
The share of house sales under $400,000 has held firm, tracking from 41.6% of all sales to 41.7% between the 2017-18 and 2018-19 financial years.
The share of unit sales under $400,000 has increased marginally, from 55.8% to 56.0% over the past two financial years.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20adelaide.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20adelaide.jpg" alt="">
Source: CoreLogic 
Over the 2018-19, financial year houses and units in Adelaide have recorded a reduced share of sales occurring under $400,000.
For houses, the share of sales under $400,000 fell to 35.8% from 39.6% the previous financial year while for units the share fell from 67.9% to 66.1%.
Although overall values have drifted slightly lower over the year, it hasn’t led to an increased share in sales under $400,000.
Although the majority of house and unit sales in regional SA are under $400,000, both have seen a reduced share of sales over the past year.
In June 2018, 80.8% of all house sales and 91.6% of all unit sales were under $400,000 compared to 76.1% and 88.8% respectively in June 2019.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20perth%20.jpghttps://www.propertyobserver.com.au/images/2019/8/15/sales%20perth%20.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20perth%20.jpg" alt="">
Source: CoreLogic 
With ongoing value declines over recent years across Perth, the share of sales under $400,000 for houses and units has increased over the most recent financial year, rising to 31.2% of houses sold from 28.7% the previous year while for units the  share has risen to 55.0% from 50.2%.
The share of house sales under $400,000 in regional WA is relatively unchanged over the past two years falling from 64.7% to 64.5%.
For units, the share of sales under $400,000 has fallen from 83.4% to 78.8%.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20hobart%20.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20hobart%20.jpg" alt="">
Source: CoreLogic 
The ongoing rises in housing values in Hobart has led to a significant decline in sales under $400,000 in recent years.
The share of houses sold under $400,000 is at a record low having fallen from 43.0% over the 2017-18 financial year to 31.8% over the most recent year.
For units the share of sales under $400,000 has fallen from 65.9% to 57.8%.
Regional Tas has also seen a decline in sales under $400,000 as values have increased.
Over the 2017-18 financial year, 77.1% of house sales and 91.0% of unit sales were under $400,000.
By the end of the following financial year, these shares had fallen to 70.3% and 85.8% respectively.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20darwin%20.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20darwin%20.jpg" alt=""> 
Source: CoreLogic 
As dwelling values have continued to fall in Darwin there has been a significant increase in unit sales under $400,000 while any increase in the share for houses has been much more muted.
Over the 2017-18 financial year, 26.8% of house sales and 61.2% of unit sales were under $400,000 compared to 26.0% and 67.4% over the most recent financial year.
In regional NT, the share of sales under $400,000 has increased over the past financial year.
Over the 2018-19 financial year, the share of houses sold under $400,000 was recorded at 39.0% and 77.1% for units.
For the 2017-18 financial year the share of sales under $400,000 were recorded at 36.4% for houses and 74.1% for units.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20canberra%20.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/sales%20canberra%20.jpg" alt="">
Source: CoreLogic 
In Canberra, the share of sales under $400,000 has continued to trend lower as values have continued to climb (albeit at a slower pace).
Over the 2017-18 financial year, 6.8% of all house sales were under $400,000 compared to 5.0% over the most recent financial year.
For units, the share of sales under $400,000 reduced from 39.6% over the 2017-18 financial year to 36.0% in 2018-19.
The next financial year could look very different to what we have seen over the 2018-19 financial year. 
We’re only in mid-August and we’ve already seen interest rates reduced twice, serviceability floors on mortgages reduced and some recent rises in dwelling values in the largest capital cities.
While a significant rise in dwelling values isn’t expected, there is an expectation of a moderate increase in dwelling values, as a result the 2019-20 financial year is expected to see fewer sales under $400,000 than those recorded in 2018-19.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

Despite falling dwelling values, there’s no big rise in sales under $400,000: Cameron Kusher

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Late last year a Productivity Commission report found including the family home in the means test for the age pension could deliver the government A$6 billion in much-needed revenue.
Despite this, in the lead-up to the federal election, both major parties shied away from reform. Neither was willing to consider rolling back preferential treatment of the family home. This includes capital gains tax exemptions, first home owner grants and the family home’s exemption from the pension means test.
Home ownership is an important source of emotional security, which offers a strong rationale for exempting the family home from the pension means test. But as the population ages and the government’s fiscal problems grow, there’s increasing policy interest in tapping into older people’s accumulated housing wealth to support retirement.
<h2>The case for means-testing the family home</h2>
Exempting owner-occupied housing from capital gains tax can have adverse equity and efficiency impacts. The family home exemption results in the payment of income support to those with substantial wealth tied up in their principal residence. Public funds are not therefore targeted at those in most need.
The exemption of housing assets in means tests advantages pensioners with most of their wealth stored in the family home relative to those with the same wealth holdings, but spread across a more diversified portfolio. Policymakers describe this as being “horizontally inequitable” – where people of similar origin and intelligence do not have equal access to wealth.
The current system also causes inefficiencies in housing markets. It encourages “empty nester” older households to live in houses that are large relative to their household size. For income-poor older Australians, this can have perverse consequences. Equity released from downsizing could generate income to help meet acute spending needs in old age.
At the same time, wealth portfolios dominated by housing leave owners over-exposed to house price risks that they cannot hedge. Means-testing the family home would cause future homebuyers to scale back their housing investments. As a result, they would be more likely to hold more balanced wealth portfolios.
<h2>The case against means-testing the family home</h2>
The problem is, older Australians choosing to downsize or access some sort of equity-release product face tax penalties under the current system.
The net proceeds on downsizing are an assessible asset that can reduce income-support payments, while stamp duty eats into the proceeds. And a lack of suitable housing options frustrates many would-be down-sizers who want to stay living in their local communities. Equity-release products also expose owners to investment and credit risks because interest rates are variable and house prices can fall.
Encouraging people to tap the value in their home instead of accessing welfare payments requires stable housing asset values and continuing high rates of home ownership. However, there is already clear evidence of declining rates of home ownership and increasing indebtedness. These trends are not restricted to young Australians; they are also evident among those approaching retirement.
And if in future we witness the sharp declines in house prices that many countries suffered during the global financial crisis, housing equity will prove to be an unreliable asset base for welfare needs.
<h2>Is there a pathway to reform?</h2>
The challenges facing older Australians who downsize or access home-equity products can be mitigated by the introduction of financial instruments or government-backed schemes that allow owners to hedge house price risks. Stamp-duty exemptions could reduce the financial costs of downsizing.
It also needs to be recognised that current pensioners made their home purchase and investment decisions on the basis of tax-transfer rules that were expected to remain in place. In light of this, grandfathering provisions would need to be part of any reform package. This would enable transitional arrangements, preventing major disruption in housing markets and the lives of current pensioners.
It is important to note if budget savings are the main motivation, the government should look at reforming housing tax concessions. These concessions are largely received by higher-income older home owners. Curbing these concessions would be a more equitable way of achieving budget savings while also improving the resilience and efficiency of housing markets.
Rachel Ong is deputy director, Bankwest Curtin Economics Centre, Curtin University and can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here.</a>
Gavin Wood is professor of Housing, RMIT University, and can be contacted <a href="https://theconversation.com/profiles/gavin-wood-113723" target="_blank">here</a>.
Both are authors for The Conversation.
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