Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Federal Budget

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EXPERT OBSERVER
<div id="post-body-6685871502057582012" class="post-body entry-content">
<div>The Coalition, have been crushed in the Victorian elections at the hands of Labor.</div>
<div> </div>
<div>Voting was so one-sided it was effectively all over by 7pm.</div>
<div> </div>
<div>Not too long now until the Federal election, and it all looks pretty gloomy for Prime Minister Morrison.</div>
<div>
 Some interesting news that quietly slipped out on Friday is that the government's financials are in enormously good nick when compared to the Budget profile. </div>
<div> </div>
<div>The year-to-date cash balance showed a deficit nearly $9 billion ahead of the Budget profile (with the year-to-date deficit of $15 billion miles ahead of the $24 profile deficit).</div>
 <div class="separator"><a href="https://4.bp.blogspot.com/-WO4oj3X5o9M/W_m_w6YrtmI/AAAAAAAAtCk/o39wSjwGIr0XdKBW8UmG97Gd04s3_cOtACLcBGAs/s1600/IMG_9793.PNG"><img src="https://4.bp.blogspot.com/-WO4oj3X5o9M/W_m_w6YrtmI/AAAAAAAAtCk/o39wSjwGIr0XdKBW8UmG97Gd04s3_cOtACLcBGAs/s640/IMG_9793.PNG" width="640" height="556" data-original-height="1165" data-original-width="1338"></a></div>
<div> </div>
<div>Source: Commonwealth Government</div>
<div> </div>
<div>This is mainly thanks to a sharp fall in unemployment and stronger commodity prices, leading to a tremendous surge in tax receipts, combined with lower payments. </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-3NCvarkC4RU/W_m_w8UzUmI/AAAAAAAAtCo/C6xsiM1KABgk0kOYgMu4lUq_leqXKiAswCLcBGAs/s1600/IMG_9794.PNG"><img src="https://3.bp.blogspot.com/-3NCvarkC4RU/W_m_w8UzUmI/AAAAAAAAtCo/C6xsiM1KABgk0kOYgMu4lUq_leqXKiAswCLcBGAs/s640/IMG_9794.PNG" width="640" height="408" data-original-height="921" data-original-width="1441"></a></div>
<div> </div>
<div>The latest labour force figure<a href="http://petewargent.blogspot.com/2018/11/blessed-relief" target="_blank">s</a> revealed annual employment growth surging back up to 2½ per cent, or +308,100, with an unemployment rate at a six-year low of 5 per cent. </div>
<div> </div>
<div>The Budget has been in deficit for more than a decade, but on these numbers a surplus might be withing striking distance as soon as next month when the mid-year Budget update is normally scheduled. </div>
<div> </div>
<div>The electorate may not like them much - an understatement - but at least this is a strong result for the Coalition's management of the Budget. </div>
</div>
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pwargent-M4siyDbqQY

Here comes the surplus: Pete Wargent

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Overall the Budget will boost confidence in the building and construction industry, according to Denita Wawn, CEO of Master Builders Australia. 
“The Government’s infrastructure Budget will play a key role in setting the nation up for future prosperity.
The additional $24 billion investment in infrastructure across the country will boost the productivity and liveability of our cities,” she said. 
“Small businesses will benefit from the extension of the $20,000 immediate tax write-off scheme until 2019. There are more SMEs in buiding and construction than any other industry and this great news for mum and dad building business and tradies,” Denita Wawn said. 
“The uncorporated small business tax discount rate will increase from 5 per cent to 8 per cent allowing SME builders to write-off their assets faster,” Denita Wawn said.
But lower house prices could hit the residential construction boom harder than expected, according to the Federal Government's Treasury department.
<div class="cq-article-content-paras section">
Dwelling investment is forecast to rise slightly by 1.5 per cent next year before slowing further and remaining "largely flat" in 2019-20, Treasury estimates.
Residential construction is easing after reaching a peak of near 6 per cent of gross domestic product in the financial year ended June 2017.
Approvals are likely to keep dwelling investment "elevated by historical standards", according to Treasury, especially in New South Wales and Victoria.
</div>
<div class="cq-article-content-paras section">
Treasury also noted a "reasonable pipeline of work" in commercial buildings, especially for offices in Victoria and New South Wales.
The 2018 Budget had no measures that specifically address housing supply and affordability, according to the Real Estate Institute of Australia (REIA).
“Whereas housing affordability was a centre piece of the 2017 Budget there was nothing in this year’s Budget that directly addressed this,” REIA President Malcolm Gunning said.
“It was however pleasing to see that the Government recognises the important role that the current taxation arrangements for negative gearing and Capital Gains Tax play in increasing supply, keeping rents affordable and easing the burden on social housing by leaving these unchanged,” he said. 
Mr Gunning said the Budget’s approach recognises the state of the property market and the impact that APRA’s measures have had in cooling the marking particularly in Melbourne and Sydney and the Treasurer has seen no reason to make any further adjustments. 
“A boost to infrastructure spending, modest improvements in housing income for lower income earners, continued tax write offs for small to medium business and growth in employment can be expected to be mildly expansionary, particularly for regional economies.
“The good news for home buyers is that the Budget is not expected to put pressure on interest rates as inflation is expected to remain within the RBA’s target zone.
“This expected interest rate stability comes at a time when housing prices in some of our major cities are showing signs of easing leading to improved affordability for first home buyers,” Mr Gunning.
 
</div>
 
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j.ballantyne1990-6AQqhLzZaK

Residential housing construction could moderate due to falling prices: Treasury

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Despite a chronic shortage of affordable housing, Australian governments have been slow to experiment or support affordable housing provisions through the planning and development process.
It will be interesting to see whether next month's Federal Budget from Scott Morrison advances the complex issue, and then whether further initiatives come from the State Budget.
To date NSW's mostly voluntary planning incentives have failed to deliver worthwhile numbers of affordable homes.
A recent study calculated the main affordable housing scheme had yielded only 2,000 affordable Sydney rental dwellings since 2009.
This is the equivalent to about one per cent of the city’s total supply.
<div>The scheme typically offers a density bonus to NSW developers with increased floorspace to build in return for affordable rental housing that must be rented to eligible households at 20 percent market discount for 10 years.</div>
<div> </div>
<div>Some 19 of proposals were by private sector developers, while six were by Community Housing Providers (CHPs) or not-for-profit organisations.</div>
<div> </div>
<div>The policy lead in this important area has been South Australia where around 17 per cent of total dwelling approvals within major new residential development areas have been dedicated affordable homes. </div>
<div title="Page 40">
<div>
<div>
The NSW approach has focused on affordable rental housing, while most dwellings secured through the South Australian model are offered for sale to eligible moderate income earners. 
We clearly need better policy to improve the outcome.
When compared to international practice, even the South Australian schemes is modest, according to a recent study by the Australian Housing and Urban Research Institute.
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In England and Scotland, the general expectation is for 20 percent to 40 per cent of new housing developments to be affordable housing. 
Australia’s first pilot schemes emerged in the mid-1990s through the Federal Government’s Building Better Cities program which funded projects in Pyrmont and Ultimo.
The approach was extended to the major urban renewal precinct surrounding Green Square.
However, the NSW Government has been reluctant to allow local councils to impose mandatory requirements for affordable housing through the planning process.
At the Federal level, the primary focus has been seeking to address affordability through increasing overall land supply.
Indeed the the Council of Australian Governments (COAG) working party on housing supply and affordability expressed the view in 2012 that affordable inclusionary zoning would be counter-productive to overall supply efforts.
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Since affordable housing requirements reduce the value of undeveloped land, incentives to developers will be needed should significant affordable housing outcomes are to be delivered.
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It is also important governments, rather than seeking the highest and best use land value in sales of government land, adopt a new approach with the price reflecting the housing needs that the development seeks to address.
Given that affordable housing is a 30-year plus investment, it requires our governments that think shorter to embrace vision.
This article was first published in the Daily Telegraph.
 
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jchancellor-FAypfDUnLy

Affordable housing scheme not yielding results

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Saul Eslake, University of Tasmania
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The 2017-18 <a href="http://www.budget.gov.au/2017-18/content/myefo/html/" target="_blank">Mid-Year Economic and Fiscal Outlook (MYEFO)</a> is another reminder - if one is needed - that the relationship between the budget and the economy runs in both directions. While we mostly ask the question, “how will the budget affect the economy?”, this update shows the economy can also have (and has often had) a significant impact on the the budget.
The highlights of this year’s MYEFO, as far as the government is concerned, are the A$9.3 billion improvement in the underlying cash balance over the four years to 2020-21 (compared with what had been forecast in the May budget), and the consequential A$11 billion reduction in the forecast peak in net debt (from A$366 billion to A$355 billion) in that year.
These improvements are the result of revisions to economic assumptions and other so-called “parameter variations” since the budget, which in total have improved the four-year bottom line by more than A$11 billion. The biggest of these came from reductions in payments to people with disabilities, students, single parents and age pensioners (totalling A$4.6 billion over four years) due to lower-than-expected recipient numbers.
<h2>Personal income tax cuts seem possible</h2>
There is no additional detail in MYEFO regarding the government’s <a href="https://theconversation.com/morrison-talks-down-personal-income-tax-cuts-56308" target="_blank">foreshadowed personal income tax cuts</a> ahead of the next election. But if the forecast surplus for 2020-21 of A$10.2 billion is credible, then there’s arguably some scope for the government to fund personal income tax cuts beginning in that year.
Although the cost of more significant tax cuts would escalate substantially over the medium term, there is actually more scope for these cuts than generally realised (provided the government succeeds in keeping growth in spending under control).
That’s because the projected moderate surpluses, averaging about 0.5% of GDP out to 2027-28, incorporate an arbitrary assumption that taxation revenue will be capped at 23.9% of GDP. If that assumption wasn’t made, the projected surpluses would rise to 1.6% of GDP by 2027-28.
In dollar terms that would imply a surplus of around A$55 billion, compared with one of around A$15 billion if the surplus were only 0.5% of GDP. Over the period 2021-22 to 2027-28, relaxing the assumption that tax revenues are capped at 23.9% of GDP results in almost A$90 billion of additional budget surpluses. This is over and above what is projected with that “tax cap” in place.
Presumably, some of those “additional surpluses” are absorbed, in the government’s internal figuring, by the promised phased reduction in the company tax rate for businesses turning over more than A$50 million per annum by 2025-26 - which according to the last publicly available estimate would reduce revenues by some A$65 billion over ten years.
However, that would still leave a considerable amount “left over” to pay for personal income tax cuts, and allow the government to continue to project surpluses of around 0.5% of GDP out to the second half of the next decade.
That’s assuming, of course, that we are able to clock up 36 years of uninterrupted economic growth, and that all the other projections come to pass, including for a return to more “normal” rates of wages growth.
<h2>Economic indicators in MYEFO</h2>
Treasury has revised downwards its forecast for economic growth in the current financial year, from 2.75% to 2.5%. Partly offsetting this is stronger growth in public spending, which is now forecast to rise by 4% in real terms in 2017-18, up from 2.5% at the time of the May budget.
This reflects faster growth in both government spending (on the NDIS) and investment (NBN and state government infrastructure investment). The forecast for business investment has also been upgraded, from flat at budget time to growth of 2%, the result of both stronger growth in non-mining business investment and a smaller decline in mining investment.
This is largely the result of a downward revision to the forecast for growth in household consumption spending which has been lowered from 2.75% to 2.25%: and this carries over into a 0.25 percentage point reduction in the forecast for 2018-19, to 2.75%. Even these require a further decline in the household saving rate.
The forecast for dwelling investment spending has turned around from 1.5% growth to a decline of 1.5%, with the “softening in dwelling investment occuring slightly earlier than expected”.
Longer term, the government is still anticipating that economic growth will average 3% per annum from 2018-19 through 2023-24, by which time all the “spare capacity” in the labour market will have been absorbed. That is, the unemployment rate will be down to 5% and underemployment (workers not being able to get enough hours at work) returned to more normal levels.
<img src="https://counter.theconversation.com/content/89291/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The longer-term projections also assume that wages growth accelerates significantly from 2019-20. This represents the greatest risk to the goverment’s promise of a return to surplus by 2020-21.
<a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">Saul Eslake</a>, Vice-Chancellor’s Fellow, <a href="http://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/government-budget-update-saved-by-higher-than-expected-economic-figures-89291" target="_blank">original article</a>.
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Government budget update saved by higher than expected economic figures

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GUEST OBSERVER
We need more justification around the NSW Government’s solution for housing affordability after it revealed no concessions would be afforded to buyers making property purchases over $800,000.
The measures, taken to cabinet last week, proposed stamp duty would be abolished on all homes up to $650,000 and relief to buyers of homes up to $800,000.
My offices are already experiencing vendors around both the $650,000 and $800,000 price points asking agents to list their homes for slightly more, given that first home buyers will soon have more to spend. 
When first home buyer grants were introduced a few years ago, as a group, we saw the same thing. The market needs to find its natural level, as otherwise these measures could prove counter-productive and possibly even lead to an artificial increase in prices.
The new measures certainly look like a step in the right direction, but we need to stop the applause and critique the performance. It is a complex matter, as the State Government needs to protect the cash cow that is stamp duty, but also make an attempt at solving the affordability crisis.
If the intention is to alleviate affordability woes amongst first home buyers, how did it reach the figure of $650,000? This tells me the measure was designed to drive more first home buyers into apartments.
With far fewer investors as a result of the macro-prudential measures and tens of thousands of new apartments in the pipeline, who is going to buy them otherwise?
Sydney’s median dwelling price is $872,300 – two thirds the figure proposed for abolishing stamp duty, and according to CoreLogic, 20 percent of Sydney Metro dwellings sold at a price of $650,000 or less over the past 12 months were houses.
This rises to 34.4 percent when looking at dwellings that sold for a price of $800,000 or less.
Last year, the apartment development boom raised concerns about an apartment oversupply in Sydney. The stamp duty changes are designed to drive more first home buyers into apartments. 
First home buyers currently represent about four to five percent of the market. We need to get this to double digits and this measure might not do that.
When you really look at it against the market, less than 10 percent of Sydney’s suburbs would have homes with a median price below $650,000.
If the Government was serious about alleviating barriers, it would completely abolish stamp duty for first home buyers or at the very least make the first $650,000 exempt, irrespective of the purchase price, and not cap it at a price that forces people into apartments to reverse engineer the cycle. 
In addition to believing first home buyers be exempt from paying stamp duty, they should have to reside in the property to be eligible. 
However you spin it, rentvestors are still investors, and we have been overly advocating rentvesting as a wealth strategy, which is taking its toll on the market.
The base of the affordability iceberg is that there have been too many investors in the market and unless we’re careful, these measures could inadvertently make things worse. It is further exacerbating the problem which APRA has tried so hard to alleviate. 
If the Government is not open to completely abolishing stamp duty for first home buyers on all properties, concessions should at least be tracked against median house prices annually. 
House prices are relative against the cost of living – someone in the Eastern suburbs might pay more for property compared to someone in Western Sydney, but they are usually paying more for everything – not just property. Therein lies the problem – the affordability crisis is a Sydney issue, not necessarily a State issue. 
Regional NSW first home buyers are set to benefit the most from this, but what about buyers in Sydney’s Inner West, Lower North Shore, Eastern Suburbs and the South?
If you are looking to buy in these areas and hoping to benefit from the abolishment of stamp duty for properties up to $650,000, you can either uproot your life, don’t buy at all, or buy a garage.
DOUGLAS DRISCOLL is CEO of real estate agency <a href="https://www.starrpartners.com.au/" target="_blank">Starr Partners</a>.
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Budget failing many buyers: Douglas Driscoll

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GUEST OBSERVER
For active investors, the Budget comes with positive changes such as in super and home ownership but many are negative such as targeted measures against the banks and sharp cutbacks on property tax breaks. Everyone will be affected by the recently delivered Budget and here are some key features that affect properties:
The government has constantly been pressured to scrap borrowing in super but it has not reversed its position and SMSF operators can still borrow. However, there is a new super cap of $1.6 million and borrowed funds will be computed based on the $1.6 million cap.
Starting 1st July 2017, first-home buyers may salary sacrifice up to $15,000 or a total of $30,000 a year into their superannuation account at a concessional tax rate. They will be allowed to withdraw the cash to use as a deposit on their first home. This measure allows super to be accessed early.
Those who will sell a property investment will be subject to CGT at a marginal tax rate but those who hold a property for more than a year will get a discount of 50 percent on their CGT tax assessment. The negative gearing tax rate remained the same and investors can claim expenses and interest for the cost of an investment property against their tax bill. One advantage of higher interest rates among commercial banks is that the amount that can be deducted in negative gearing increases.
Downsizers may be able to make post-tax contribution to superannuation of up to $300,000 from the proceeds of selling their home, even if they exceed the $1.6 million cap. Investors will no longer be able to claim tax deductions for travel expenses related to inspection, maintenance or rent collection of a property. Many investors have properties a long distance away from their home and they incur travel expenses when they visit their investments.
This change may upset many investors because an outright ban on claims for travel expenses is an absolute loss. It used to have no limit and the allowance may have been abused because the government expects to collect $540 million from the scrapped tax allowance starting 1st of July.
Depreciation deductions may only be claimed on personally purchased items for an investment property, excluding plant and equipment which was included with the purchase. These measures will not please many investors but the truth is, it is to their advantage that negative gearing remained untouched because any changes related to this could have been more dramatic. Investors are relieved that the changes have not gone further as well.
Lastly, foreign property investors will lose the CGT exemption on the sale of their main residence and are now required to report all sales over $750,000 or have a withholding tax applied upon sale. There will also be a new annual levy of at least $5,000 for properties left vacant for more than six months a year.
PS.
Disallowing deductions for travel expenses and depreciating assets not directly bought by the investor may be the thin edge of the wedge and increasing deductions for work-related expenses can be quite worrisome. This change is controversial and some people suggest that if it is a step towards a slow-down of deductions for Australian taxpayers, debate has to begin now.
Ed Chan is the founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a>.
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Federal Budget 2017 features that affect Australia's real estate: Ed Chan

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GUEST OBSERVER
Two weeks following the budget, the topic of housing affordability is still not waning.
Australia and the world united last week to slam young real estate mogul, Tim Gurner, who claimed young Australians can’t afford to buy property because they are spending “$40 a day on smashed avocados” and “not working”. The story spread like wildfire nationally as well as globally with media outlets including TIME Magazine, Washington Post, and The LA Times picking up the story.
While sensationalised, the crux of the problem has still not been addressed.  
Recent research conducted by iBuildNew which surveyed Australian FHBs to examine how much an affordable house is considered to cost, what the biggest barriers to entry are, where and what housing alternatives were being considered, and other useful statistics and insights. The full findings can be found in the Appendix below.
About the super saver scheme
The Government will help Australians boost their savings for their first home by allowing them to build a deposit inside superannuation. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit from 1 July, 2018.
While the 'First Home Super Savers Scheme' will provide some benefit to Australian FHBs, it needs to still be kept in perspective in terms of popularity among its target audience:
As an incentive to help FHB's save I really like the scheme, but am skeptical as to how effective this will be in terms of how many people will take this up.  
I suspect FHB's will not see the incentive as strong enough and have concerns their savings will be locked away until retirement if they can't ultimately save enough, property prices keep rising, or their personal circumstances change, which are all legitimate concerns. 
In theory however, if a FHB is on $80,000 pa and elects to salary sacrifice $1,000 per month into super for a deposit, within 2.5 years they will save the $30,000. Depending on their state, they should be eligible for the FHB grant of $10,000-$15,000 (let's say $15,000), so they then have $45,000 in total savings. An average off-the-plan house and land package across Australia is $440,000 and if you assume you need 20% of the total amount (worst case) to secure a loan from the bank, the FHB still needs to save or access another $43,000.  
This is in no way a slam dunk but may be possible if they already have some sort of additional savings or can access equity in their parent’s home, for example. However, with only just over 20 percent of FHB’s considering new home builds with most preferring established properties at much higher starting prices, this savings challenge is far more acute for most. Unfortunately, the numbers don’t lie, and while this initiative may create some savings discipline from the few that take it up, most FHB’s dream of owning their own home will still be out of reach.
Relevant statistics (per iBuildNew recent survey findings): 76 per cent of first home buyers can’t get into the property market because they can’t save the deposit or secure a loan.
Only 22 percent of FHBs are considering a new home build as their entry option to the property market, with 60 per cent preferring to buy established despite the significant price differential between the two options.
About retirees downsizing super exemptions 
In a bid to release more property to the market and help tackle housing affordability for Aussie first home buyers, Australians over 65 years of age will be able to contribute an additional $300,000 from the sale of their main residence (if they have owned it for 10 years) into their superfund at non-concessional rates.
Starting from July next year, this scheme was designed to encourage retirees to actively consider downsizing in an attempt to free up larger homes for younger families and FHBs. Downsizing to free up capital makes a lot of sense for the older generation as they often own their own home with significant equity, but may not have much super to live off.
I am is very skeptical about this initiative. He thinks this won't help first home buyers at all and is simply a strategy from the government to relieve pressure on pension entitlements:
Firstly retirees that have been in their home for more than 10 years generally live in homes that cost $1,000,000 or more, so creating new supply in this high-cost range won't help first home buyers at all. Any impact is likely to be at the upper end of the housing market, not in the sub $450,000 where most FHB’s consider affordable. This initiative in the short term actually has a negative impact on supply as some retirees that would have otherwise downsized in the next 6-12 months will now be holding off selling their house until this initiative takes effect in July 2018.
Secondly, and most importantly, we see this as being a strategy from the government to relieve pressure on pension entitlements. At the end of the day the country has an issue on how to fund pensions entitlements, so this would take some pressure off if retirees took it up. However, accountants will advise their clients to think very carefully about this as the principal place of residency is excluded from the net asset means test calculations when it comes to pension eligibility.
Many simply don’t want to leave what they know, but many won’t want to forgo the state pension in lieu of their super pension, so you really have to question what impact this will have on housing supply. Branding the retiree downsizing scheme as a housing affordability measure I find very strange, at least for FHB’s.
Relevant statistic (per iBuildNew recent survey findings): 63 pe cent of first home buyers believe an affordable house costs less than $450,000, 85 percent think it’s less than $600,000.
About the foreign owners rent levy
Overseas property investors who leave their houses unoccupied will face an annual charge to help encourage foreign owners to make their property available to rent to improve rental supply – or that’s the plan anyway. Predictions on empty properties put the number as high as 300,000 across the country, however Mr. Peterson believes the levy will do nothing to increase housing affordability:
The levy only starts from $5,000, so even the more expensive properties around Australia will only attract a $15,000 slap on the wrist. For the Chinese who are using this as a strategy to get money into a safe haven (often several million dollars), a small annual charge is unlikely to drive a change in behavior from these types of investors who are more concerned about capital preservation than realizing rental returns. Even if it does, all this would do is ensure more blue chip houses are available for rent, generally at rental rates that people who are looking for affordable housing, can't afford anyway.
I think this is bit of a cop out by the Government who are trying to blame foreign investors for the housing supply shortage and affordability, when in reality they are a minority group undertaking this activity, so they have missed the mark.
About the release of surplus government land
As part of the housing affordability package released in the budget announcement the government has earmarked 127 hectares of surplus land in Melbourne which could house up to 6,000 properties. They have also outlined similar measures for Western Sydney. It is initiatives like this that can make a real difference.
The release of government land is one of the few genuine measures announced in this year’s budget that will actually help the housing affordability challenge. It directly impacts supply of land, and that has a direct impact on price and affordability.
In my view this type of land should be made almost exclusively for first home buyers, with a double FHB grant available on the purchase of such land when committed as part of a house and land package. If the super saving scheme is going to have any real impact, it still needs to be coupled with a first home buyer grant if FHB’s are going to be any chance of saving sufficient deposit in the Melbourne and Sydney markets.
However, FHB’s need to look beyond the inner suburbs of Melbourne and Sydney, lift their eyes and explore some of the outer suburbs if they are serious about getting into the property market. A new build house and land package is typically 40% plus cheaper than an inner suburb established property, not to mention its brand new.
Relevant research (per iBuildNew recent survey findings): 64 percent of first home buyers are only prepared to look at properties within their suburb of choice or surrounding suburbs.
Only 22 percent of first home buyers are considering a new home build while 60 per cent are focused on buying an established home or townhouse.
76 percent of first home buyers can’t get into the property market because they can’t save the deposit or secure a loan.
Daniel Peterson is chief executive officer, iBuildNew, and can be contacted <a href="https://www.ibuildnew.com.au" target="_blank">here</a>.
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iBuildNew rejects three key initiatives from the 2017 Budget first home buyer measures 

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Those Federal budget announcements affecting property are actually going to have a bigger impact than initially concluded.
Young first home buyers certainly appear willing to dive into the proposed simple superannuation top-up scheme that offers tax breaks. They will likely overtime become the big Budget winners in the housing arena.
The headline housing measure kicks in from July 1 when the first-home buyer can salary sacrifice into their super account above their compulsory contribution.
Regular super remain off limits, but the scheme ought be better than money in the bank, as Treasurer Scott Morrison calculates an accelerated savings of 30 percent.
That is of course unless calamity strikes superannuation as it did in the global financial crisis.
The Budget also offered the elderly an incentive to down-size homes with tax breaks too.
But downsizes are likely to delay the sale of the family home - and not just because the new scheme doesn't start until July 2018.
Individuals who are already 65 have been urged to put off a sale at least until the legislation passes so they don't miss out on the opportunity to top up their super. 
Australians in their early 60s might also delay their downsizing if they are set to become self-funded retirees.
Of course any net proceeds from the sale of the family home will be included in the assets test for the age pension which remains a major impediment for many retirees.
Not much outcry about residential investors losing their travel expense claims when they inspect their investment property. It was good while it lasted most investors have mumbled.
But investors keen to sell their strata units have real concerns as they will be selling their second-hand properties without the attraction of a major tax deduction to the next owner.
Intended to address issues that items such as air conditioners are being claimed as tax write-offs by successive investors in excess of their actual value, it is still not clear just what the government will define as plant and equipment.
The policy intent is to restrict depreciation claims to items purchased and installed by the claiming taxpayer. Investors await draft legislation to see if it extends to say the exisiting communal lifts. 
One commentator says the changes to negative gearing depreciation claims will see investor demand for recently completed housing fall or flatline - resulting in a cooling in the Sydney apartment market price growth.
Another big measure taxing and restricting foreigners in many ways in a revenue treat for the Treasurer in the Budget will impact the market in many ways under the guise of levelling up the playing field for struggling locals.
And no one really knows just how yet that will unfold.
 
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Negative gearing changes worry the property market 

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GUEST OBSERVER
As someone who’s been working with property clients across three market cycles now, I’ve certainly lived through the aftermath of many Federal Budget announcements, and the latest iteration is no different.
While for many their first response is to begin poring over the finer details of the budget with their advisors, looking for latent loopholes, the smart operators will have recognised that the 2017-18 Budget actually provides a number of new opportunities.
What is abundantly clear is that if you take the time, Treasurer Morrison’s budget already gives the property sector, and in particular developers, the “answers to the exam”, by highlighting market segments that could (and should) receive more attention.
For instance, the Budget incentivises empty nesters nearing retirement to leave their family home and downsize. For developers, this presents an opportunity to invest in more developments targeting the empty nester market, but rather than marketing these developments to "over 55s", an alternative approach may be to focus on a desirable standard of living for this generation of buyers.
Meanwhile, first home buyers are being enticed to save for a property deposit by topping up their super at the marginal tax rate. The jury's out on whether this change will actually help young buyers, but the intention is good. Again, developers may consider this as an opportunity to create more innovative first home buyer packages, helping them shift existing stock that may already be slower to sell anyway.
Another key point relates to foreign investment in new properties, with a Federal clampdown and rising State Government charges blunting the sales edge previously enjoyed by some offshore-owned development companies. On the other hand, you could take the view that it's an opportune time for these same companies to focus more of their creativity and marketing spend on Australian buyers.
So to anyone in property still trying to get to grips with this Federal Budget, I suggest they consider it an opportunity rather than an obstacle, and consider altering their approach to adapt to the changing environment. Developers who don't do so risk being left behind. 
<a href="https://www.capital.com.au/" target="_blank">John Quinn</a> is the founder of The Capital Group.
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Treasurer delivers property sector the ‘answers to the exam’ with latest budget: John Quinn

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GUEST OBSERVER
Neither the Government nor the Opposition are being bold enough in their actions to address Australia’s housing crisis.
In particular, the Budget measures intended to encourage investment in affordable housing will do little to change the investment decisions of “mum and dad” investors.
Australian’s have a love affair with property, and a penchant for negative gearing.  If the Government, or the Opposition, was clever, they’d use these tendencies to help resolve Australia’s housing crisis. 
The Government needs to appreciate that investing in affordable housing means lower rental income and lower capital growth. It needs to be as financially attractive for someone to invest in affordable housing, as compared to investing in any other residential property.  This is where tax policy can help.
A key reason for introducing the CGT discount was to encourage capital investments.  Modifying how the CGT discount operates will change the way people invest. Increasing the CGT discount is going down the right path, but an increase from 50 per cent to 60 per cent is not enough to change the investment decisions.
Our bold suggestion: increase the CGT discount to 100 per cent for affordable housing held for 10 years or more.  Make the capital gain tax free.  This will move investment in affordable housing from being a marginal investment decision, to being very attractive.
At the same time, consider reducing the CGT discount on other residential properties from 50 per cent to say 40 per cent, or lower.  Or require a property to be held for five years, rather than one year, before the CGT discount applies.  This change would temper investment into residential property, and reduce speculative investment decisions.  It would also help balance the impact on the Budget.
That is an intelligent policy decision. That is bold, and would start to change people’s investment decisions. 
This change would need to be a long term one.  The CGT discount can become like the superannuation rules, and get changed every Budget. That would only serve to undermine investor confidence.  
If the Government can look to be bold in seriously addressing housing affordability with a scalpel rather than a feather approach, it would really start to make a difference.
 
Greg Travers is tax director, William Buck Chartered Accountants and Advisors and can be contacted <a href="https://www.williambuck.com" target="_blank">here</a>.
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