A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

Federal Budget

<html><body>
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

<html><body>
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.
</div>
</div>
</div>
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.
<div title="Page 17">
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.
<div class="page" title="Page 16">
<div class="layoutArea">
<div class="column">
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.
 
</div>
</div>
</div>
</div>
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jchancellor-FAypfDUnLy

Affordable housing scheme not yielding results

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<h1>
Saul Eslake, University of Tasmania
</h1>
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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