Prolific Sydney developer Landmark Group is continuing to expand its growing development portfolio.

<a href="https://www.apartments.com.au/developers/landmark-group">Landmark Group</a>, which is progressing with a new Edgecliff project alongside current developments in Macquarie Park and Caringbah, is set to deliver rare new apartment supply in Lindfield, the affluent suburb on Sydney’s Upper North Shore. The projects form part of the NSW Government’s broader push to increase housing density around key transport hubs.

The developer currently has two proposals under assessment through the NSW Government’s Housing Delivery Authority. Together, they comprise nearly 400 apartments, 220 across a large 6,672 sqm amalgamated site spanning Trafalgar Avenue and Valley Road, and a further 173 apartments just 300 metres away on Middle Harbour Road.

The Trafalgar Avenue project, located around 500 metres from Lindfield train station, will feature 220 apartments across three buildings. Architecture firm DKO, which designed the scheme, said in its submission that the façade strategy is guided by design principles promoting refined architectural expression, contextual sensitivity, and a human-scaled urban response.

“Central to this approach is a layered and sculptural composition, where massing, materiality, and depth are strategically modulated to create a dynamic and visually legible built form. The architecture is defined by a clear hierarchical organisation: a robust, grounded podium provides a strong interface with the public realm, while lighter upper tiers recede into the skyline,” DKO said.

<img alt="Landmark" data-entity-type="file" data-entity-uuid="d934b639-becc-4778-9756-979a2d6ef514" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-22%20at%2010.41.27%E2%80%AFAM.png?VersionId=Ss4AdKdVpjArekAiir2213cjcWrAgBJz" /> 
The open courtyard between the buildings

DKO also designed the Middle Harbour Road project, which is closer to the station. The nine-storey building is "structured to respect the surrounding context and provide a clear urban transition."

“The design aims to respond to both the low-scale residential development of the heritage overlay precinct and the highway development immediately to the south in the North Sydney CBD”.

The mix of units is intended to serve both general market demand and key worker housing, with affordable housing apartments integrated at the lower levels. The proposed building steps from six to nine storeys as it ascends from the rear to the street front, creating a layered form that mediates between the different scales of surrounding built form.

&nbsp;

<img alt="Lindfield" data-entity-type="file" data-entity-uuid="e051aae5-0174-48b4-a033-823eb2a0e333" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-22%20at%2010.30.12%E2%80%AFAM.png?VersionId=OqU2XRPU9vr6id0hddHlfHXODOI7s99z" /> 
The Middle Harbour Road site

&nbsp;

<a href="https://www.apartments.com.au/developers/landmark-group">Landmark Group</a> has&nbsp;delivered more than 4,000 homes across Australia, with a future pipeline worth $5 billion. Among their pipeline of projects is a <a href="https://www.apartments.com.au/news/nsw/first-look-landmark-group-tries-again-with-edgecliff-tower-plans">new mixed-use development near Edgecliff Station</a>.&nbsp;

They are also have live projects in Macquarie Park, Caringbah, and Dee Why.

Joel Robinson

First look: Landmark Group to bring new apartments to Lindfield

From suburban apartment blocks to skyline-defining towers, <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a>’s journey over the past 26 years has been one of consistent expansion and scale. The last decade in particular has seen Deicorp become one of the most prolific developers in Greater Sydney. Now with a $3.5 billion pipeline and some of its boldest projects yet, the developer is taking on central Sydney, starting with <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a>.

Deicorp founder Fouad Deiri started the company in 1999 initially working out of a small office in Hurstville, with a 21-unit townhouse project in Albert Street Newtown. With a small but capable team, they utilised their extensive construction industry experience to grow the scale and complexity of jobs to now having a team of more than 200 with more than 4,000 units currently under construction.&nbsp;

[smartcode_project:default project_id=21809 project_image_fid=351911]

One of their most significant developments, Hyde Metropolitan, will arguably become one of their greatest feats, reshaping the city skyline at the southern end of Hyde Park.

Deicorp is already nearly five years into the development process. It was 2021 when they secured the Polding Centre, a 1970s, 24-storey office building on the corner of Liverpool and Castlereagh Street, from the Catholic Archdiocese of Sydney, following a six-month competitive process.

As per the City of Sydney regulations when developing within their council to the scale of such a building, the council undertook a competitive design process where architects put forward different designs and schemes for the site.

[smartcode_project:default project_id=21809 project_image_fid=215742]

They settled on the proposal by renowned architect <a href="https://www.apartments.com.au/architects/candalepas-associates">Angelo Candelapas</a>, which would bring to life their vision to create one of the best new developments within the CBD.

“I cannot imagine anything more beautiful than the delivery of a building which can demonstrate a deep affection for our sun,” Angelo Candelapas said of the design. “It is a building with dramatic foyers and an oasis garden for the residents. These two facilities link to provide a sense of wellness and nature in the centre of the city.”

[smartcode_project:default project_id=21809 project_image_fid=215741]

Fouad Deiri said he had long admired the innovation and design language of Candelapas.

“Deicorp has deliberately partnered with some of Sydney’s most recognised and capable architects in the past and we understand the value of working with truly talented designers,” Deiri said.

There are just under 170 apartments on offer at Hyde Metropolitan, a mix of one-, two-, and three-bedroom residences, many with never-to-be-built-out views over Hyde Park and towards the Harbour.

[smartcode_project:default project_id=21809 project_image_fid=215728]

Upon arrival, residents will be greeted by an eight-level-high private lobby with arched cathedral fenestrations, serving as a podium to the 55-level tower. The ground level will also host a high-end restaurant and cocktail lounge, very much in keeping with its vibrant streetscape.

The resident amenity will sit on top of the podium and will feature a 25-metre pool, landscaped courtyards and gardens, a barbecue area, gym with a sauna, and a music room. Sales are being handled by <a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a>. SRM Director Dave Milton said Hyde Metropolitan will be "one of the preeminent Sydney residential developments on the southern end of Hyde Park."

Hyde Metropolitan is one of nine developments either under construction, in planning, or in market for Deicorp.

Their next project to launch, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in <a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a>, will be their first development on Sydney’s Lower North Shore. True to tradition, Deicorp has already commenced construction on Falcon &amp; Alexander, prominently positioned at The Five Ways junction, placing it a five-minute walk from the new Metro station and in close proximity to Crows Nest Village. The one-, two-, and three-bedroom apartments will start from just under $1.3 million.

[smartcode_project:default project_id=135323 project_image_fid=351946]

Deicorp will roll into 2026 with several more projects to launch to the market for the first time.

They have already cleared their massive 2.87-hectare site Zetland that borders Gunyama Park, where they will transform a former industrial site into <a href="https://www.apartments.com.au/new-apartments/the-avenues-zetland-130-joynton-avenue-zetland-nsw-2017">The Avenues</a>, 624 apartments across nine buildings, curated ground-floor retail, purpose-built student housing, and build-to-rent dwellings delivered in partnership with Scape. It is one of the largest developments to be launched in Sydney’s inner south in recent years.

One of their most anticipated projects is the $1.8 billion Five Dock masterplan <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> (below), to be delivered in a joint venture with non-bank lender Metrics.

<img alt="Deicorp teams up with Metrics for $1.88 billion Kings Bay Village, Five Dock masterplan" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-08-14%20at%208.12.53%E2%80%AFAM.png?VersionId=_9z4I8B0EIzrXe3ldnXti1bSXCeoZi2W" />

Kings Bay Village will comprise 1,185 new homes, including 218 affordable dwellings for essential workers, along with 6,500 sqm of public open space and 14,700 sqm of vibrant retail and commercial offerings.

Add to that more releases at their <a href="https://www.apartments.com.au/new-apartments/showground-pavilions-castle-hill-3-andalusian-way-castle-hill-nsw-2154">Castle Hill Showgrounds</a> precinct, and their under construction projects in Rhodes and Parramatta, Deicorp is in the midst of adding a much-needed 3,000 new apartments to some of Sydney’s most sought-after postcodes.

Read more: <a href="https://www.apartments.com.au/news/nsw/deicorp-teams-up-with-metrics-for-1-88-billion-kings-bay-village-five-dock-masterplan">Deicorp teams up with Metrics for $1.88 billion Kings Bay Village, Five Dock masterplan</a>

Deicorp dives into luxury as Sydney apartment development pipeline grows

A prominent corner in Wynnum’s central precinct could be reshaped under new plans from <a href="https://www.apartments.com.au/developers/toore-developments">Torre Development</a>, with a development application now with council for a sculptural eight-storey apartment building combining residential, office, and recreation uses.

Situated at <a href="https://www.apartments.com.au/new-apartments/63-bay-terrace-wynnum-qld-4178">63 Bay Terrace</a>, the 2,014 sqm site lies at the intersection with Charlotte Street, within the Wynnum-Manly Neighbourhood Plan’s Wynnum central business district sub-precinct. The proposal seeks to deliver 78 apartments above ground-floor non-residential tenancies, with architecture by Plus Studio.

The proposed building will be a mix of 58 two-bedroom and 20 three-bedroom apartments spread across seven residential levels, crowned by a 914 sqm communal rooftop terrace featuring a pool, gym, sauna, and private dining areas.

Ground level activation is a key aspect of the design, with 771 sqm of office and indoor sport and recreation space proposed to reinforce the area’s major centre designation. The site will also deliver improved pedestrian amenity via a recessed entry plaza on Bay Terrace and a landscaped public realm along Charlotte Street.

<img alt="63 Bay Terrace, Wynnum" data-entity-type="file" data-entity-uuid="4e5ef890-2f8f-4bbd-9ff1-57fa4e4360d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Wynnum%20podium.png?VersionId=7_if97F1KAYrTX2BQrNspFInEHwXcQRd" />

In their design report, <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> described the form as “sculpted into a rhythmic wave, amplifying facade dynamism while merging interior life seamlessly with the city’s texture to evoke a fluid, immersive urban living experience”.

Vehicle access will be via Bay Terrace, with four basement levels accommodating 197 car spaces, including 177 for residents. Bicycle storage is also provided for 193 bikes.

The building’s architectural character is marked by curved balconies, horizontal banding at podium level, and lush greenery integrated throughout.

“Traditional developments in Wynnum typically feature above-ground car parking, a tiered 'wedding-cake' building form, no podium-level landscaping, and no rooftop amenities,” Mewing Planning noted in the DA, positioning this proposal as a departure from the norm.

The new development is Torre's second in the area, having recently completed Catalina, a more boutique building with 28 apartments.

There are only two new developments currently on the market in Wynnum: Panorama on Bay Terrace and Adena Residences on Sorrento Street, the latter of which is nearing completion.

First look: Torre eyes sculpted mixed-use apartment tower for key Wynnum corner

“We honestly never thought we’d have penthouses.”

That was the view from <a href="https://www.apartments.com.au/developers/ellipse-property-group">Ellipse Property Group</a>, developer of <a href="https://www.apartments.com.au/new-apartments/carrington-place-castle-hill-36-carrington-road-castle-hill-nsw-2154">Carrington Place</a>, Cas​tle Hill’s $850 million masterplanned community. Atrium, the project’s first stage, has been one of the Hills Shire’s most successful launches, with sales cutting across almost every buyer demographic. But it was one group in particular, downsizers, that shaped the next evolution of the development.

“Our large three-bedroom apartments, anything bigger than 135 sqm, were quickly getting snapped up,” says Puja Khanna, Ellipse’s Sales, Marketing and Design Associate Director. “We had a huge amount of interest from downsizers who were living in houses and used to having extra space. Many hadn’t wanted to leave because they couldn’t see themselves in a smaller apartment.”

[smartcode_project:default project_id=89496 project_image_fid=353654]

That demand drove Ellipse to reconfigure layouts during the early stages of the construction phase. “At one point a buyer asked us to combine a two-bedroom and a one-bedroom into a 145 sqm three-bedroom. We applied that across the stack and created five more, they all sold very quickly.&nbsp; Then another buyer wanted something even bigger. We looked strategically at how to cater for this appetite and ended up redesigning the whole of the top level. Sixteen units became eight penthouses, each one unique in its design, configuration, or aspect.”

Ellipse’s new penthouse collection takes space and finishes to another level. Offering up to 334 sqm of indoor-outdoor living, they feature stone kitchens with central islands designed for entertaining, walk-in pantries, and a full suite of integrated Miele appliances and a Fisher &amp; Paykel fridge.

[smartcode_project:default project_id=89496 project_image_fid=353655]

Living areas are anchored by luxury fireplaces, while expansive balconies and terraces include outdoor kitchens with bar fridges, sinks, and built-in barbecue benches. Bathrooms will feature large-format porcelain tiles, brushed brass fittings, frameless shower screens, and floating timber-toned vanities.

“We’ve already had a buyer secure one of the penthouses purely from a hand-sketch drawing,” Khanna says. “We worked with them for months to refine the specifications and inclusions. That consultation process has helped shape the rest of the penthouses — some even feature two separate living spaces.”

[smartcode_project:default project_id=89496 project_image_fid=353653]

Ellipse’s builder <a href="https://www.apartments.com.au/builders/decode">Decode Group</a>, an award-winning Tier 2 residential builder and one of the first to achieve a prestigious Gold iCIRT rating, is well advanced in construction at Atrium, which is expected to welcome its first residents in mid-2026.

There will be four stages to Carrington Place, delivering over 800 apartments alongside 20,000 sqm of outdoor recreation space. Plans include a one-kilometre boardwalk connecting to Fred Caterson Reserve, along with extensive landscaping and community amenity. Ellipse has recently launched Carrington Place’s second stage, Lily Lane, which will deliver 220 new apartments across two new buildings.

[smartcode_project_cta:default project_id=89496]

Ellipse Property unveils Atrium Penthouse Collection at Carrington Place, Castle Hill

Latent Defects Insurance (LDI) is rapidly becoming a must-have in the New South Wales new development market, with more developers than ever adopting the rigorous insurance policy that brings confidence to the market like no other.

While LDI has been long established in Europe and the Americas, it only entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover. It arrived against a backdrop of high-profile defects cases that had dented confidence in the apartment sector.

Latent Defects Insurance is secured by the developer and protects the building—and, more importantly, the apartments within it, from any structural or waterproofing defects that may arise within the first 10 years of the building's completion.

Resilience Insurance CEO Corey Nugent says developers have quickly realised its importance.

“The overarching feedback from prospective buyers in the new development space is that they have an inherent lack of confidence,” Nugent says. “That has been the number one factor in buyers transacting. Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product by taking out the insurance.”

Nugent says there has been a marked uptick in new projects with LDI in the last 12 months.

“There are now over 3,200 apartments in the pipeline that have, or will have, the Latent Defects Insurance policy. Developers understand the value it gives to buyers while also recognising that if they don’t offer it, others will—and that makes a competing development much more appealing to a buyer.”

Nugent says we are now seeing a real shift in the culture of development. The policy doesn’t just protect purchasers; it encourages better standards during construction because independent inspections are part of the process. “That’s the real long-term benefit.”

Builder-developers have been particularly active in driving adoption of the policy. Deicorp was among the earliest adopters, setting a precedent that many others have followed. Builder-developer DASCO has taken out LDI across its two new projects, Danks Street District in Waterloo and Senso in Epping.

[smartcode_project:default project_id=111820 project_image_fid=344699]

Fellow prolific builder-developer ALAND has taken out its first Latent Defects Insurance policy at The Walden, the newest apartment development in North Sydney. ALAND Founder Andrew Hrsto said offering the policy was a natural decision.

“With a project like The Walden, buyers expect certainty,” Hrsto says. “For us, LDI ensures that confidence is built in from the start, and that’s exactly what purchasers in this part of Sydney are looking for.”

[smartcode_project:default project_id=134323 project_image_fid=6384]

Newcastle builder-developer GWH has just taken out the policy at its newest development, ERA, one of the only new developments in the region with Latent Defects Insurance.

GWH Director Jonathan Craig said the policy is a “win for everyone.” “As a builder and developer, we take great pride in our work. Having third-party inspections throughout construction gives us confidence and delivers peace of mind for the buyer.”

[smartcode_project:default project_id=135096 project_image_fid=351104]

Longstanding, diversified developer Northland Group is offering the only LDI-insured apartments in Merrylands in Sydney’s growing west. Their under-construction Pitt Street development, Central Quarter, will comprise 194 apartments above a full new commercial and retail precinct.

Chris Williams, Operations Director at Home789, who is selling Central Quarter in conjunction with Stone Projects, says buyers are seeing LDI as both a value-add and protection.

“LDI is helping first home buyers and investors feel more confident, especially with all the negative publicity around off-the-plan apartments,” Williams says. He adds that buyers also appreciate the strict requirements and scheduled inspections throughout construction. “That adds another layer of credibility to the project and gives them extra confidence in the build quality.”

[smartcode_project:default project_id=5660 project_image_fid=1673]

Developments with LDI are subject to the Technical Inspection Service program, an independent third-party review process that monitors and evaluates a building’s design and construction. By integrating regular inspections and detailed assessments into every stage of construction, the TIS significantly reduces the likelihood of latent structural defects—issues that only become apparent after project completion.

Resilience Insurance is working with the NSW Government and expects Latent Defects Insurance to be mandatory by 2028.

“There are now over 3,200 apartments in the pipeline that have, or will have, the Latent Defects Insurance policy."

Resilience Latent Defect Insurance protection runs hot in New South Wales

Financial Investment

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Japan's Asahi Kasei Homes has bought a 40%t stake in detached home builder McDonald Jones Homes, though the deal value was not disclosed.
McDonald Jones Homes is Australia’s sixth biggest detached home builder and the biggest in NSW with a turnover of almost $500 million a year, The Australian Financial Review reported.
The stake purchase by AKH is part of a trend where major Japanese developers are buying into Australia’s housing boom. 
The list includes Sekisui House (Central Park Sydney), Sumitomo Forestry Group (majority owner of home builders Wisdom Group and Henly Group), Obayashi Corporation and construction giant Kajima (majority owner of Melbourne builder and developer Icon). 
Newcastle-based MJH Group includes Queensland builder Mojo Homes, Tasmania's Wilson Homes, Hayman Homes and medium-density builder MJH Multi.
It is one of the country's fastest growing residential builders, according to the HIA Housing 100 Report.
AKH said in a statement that the NSW market "holds the greatest promise in Australia fuelled by a continuously growing population".
MJH Group is expected to generate $620 million in revenue in FY17, up from $486 million in FY16. Profits rose 57% to $10.5 million in FY16.
AKH is a subsidiary of listed Japanese conglomerate Asahi Kasei Corporation. 
It delivers more than 8,000 homes a year and aims to reach net sales of ¥1 trillion ($11.3 billion) by 2025.
MJH Group’s founder Bill McDonald, chairman Peter Durbin and managing director Andrew Helmers will each retain 20% shares in the company while AKH will get seats on the company board.
Helmers said Australia, New Zealand and Canada were at the "top of the list" for investment by successful Japanese building businesses like AKH, given the more limited opportunities at home due to "negative population growth and almost negative economic growth".
"The expansion into the Australian market by AKH enhances our already robust financial position, and provides new opportunities in research and development, home design and construction which will be of great benefit to our customers," Helmers was cited as saying by the AFR.
"The housing market has come off it its peak, but there's an under-supply of homes in Australia and NSW so it will settle at a much higher level (than in the past)."
MJH also hopes to expand into Victoria. It has built up a 15.9% stake in Victorian building group Simonds Group and used it to block a buyout by the family of founder Gary Simonds in November. 
Last year, to celebrate International Childhood Cancer Awareness Month, the Children’s Cancer Institute, PRDnationwide Newcastle &amp; Lake Macquarie, <a href="/news/build-for-a-cancer-cure-home-up-for-auction-at-teralba">McDonald Jones Homes</a> and McCloy Group joined forces to undertake the challenge of building a house in 21 days.
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jonathanchancellor-7SQnKwU6yx

Japan’s Asahi Kasei Homes takes 40% stake in builder McDonald Jones

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Non-bank lender Pepper Money has entered into a deal with an entity of global investment firm KKR that will see the latter acquire 100 percent of its shares worth $675.9 million.
In an ASX announcement, the lender laid out details of the acquisition.
The scheme will go to a shareholder vote and, if approved, will see Red Hot Australia Bidco Pty Ltd – an entity owned by KKR – buy the shares. 
Shareholders will be given the option of rolling their shares over to Bidco or selling them at $3.60 per share.
The journey towards the takeover bid started in 2016 when Pepper’s stock prices were not where the firm wanted them to be, the Australian Broker reported, citing Pepper CEO Mike Culhane.
“The market thought that they were pretty cheap so we had a number of inbound enquiries from private equity firms, Chinese corporates, etc. All manner of firms were interested in starting a conversation about taking a position or the sorts of transactions which could be done.”
At that stage, the board got involved, confidentiality agreements were written up, and information was shared about the company, he said.
“As we went through that process, it became clear that KKR was a potentially good partner for the business going forwards.”
Pepper’s name will not change nor will there be any staff changes, according to Culhane.
He said the board felt this was the best deal for its shareholders.
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Non-bank lender Pepper agrees to acquisition by KKR entity

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GUEST OBSERVER
The Australian tax debate has placed negative gearing under scrutiny. Most of the debate lurches between retentionists, who back negative gearing as a necessary subsidy to support affordable housing, versus abolitionists, who see it as a market-distorting extravagance that delivers an unfair advantage to the wealthy.
But what if there was a middle option between retention and abolition that made it work better?
Negative gearing allows investors to claim a tax concession against their personal income for losses incurred on a rental investment property. It is estimated to be worth around A$8 billion a year in tax concessions.
There is a somewhat obscure technical argument in favour of negative gearing for equalising concessions for property investment losses with similar concessions for other investment classes. But most participants in the debate about negative gearing treat it as a subsidy for investment in housing supply.
The abolitionist argument hinges on two main issues. First, it distorts investment by encouraging deliberate loss-making in property investment. Second, as a form of subsidy, it adds inflationary pressure to housing markets that favour already wealthy investors over home buyers. And the federal government pays for it in tax revenue forgone.
Retentionists, however, argue that abolishing negative gearing would lead to an adverse supply shock in the rental housing sector. That would result in housing shortages, higher rents, and worsening affordability for low-income households.
Labor has taken a moderate abolitionist stance. It proposes to restrict negative gearing to new housing, though with the concession continuing for loss-making landlords who already receive it.
The Coalition government has not yet stated its position on negative gearing. However, there appears to be a strong retentionist stream within government policy statements. The government is also being assailed by property sector lobby groups advocating retention.
<h2>We’re flying blind on policy reform</h2>
There may be another perspective that sits between abolition and retention. A sensible reformist view might be encouraged by the federal government’s preparedness to, in effect, subsidise private market housing by $8 billion per year.
But such a view might also lament the extraordinarily ineffective targeting, outrageously poor transparency about who receives the subsidy, and egregious lack of accountability for supply outcomes.
These concerns emphasise the gross information gaps about the landlords who receive the subsidy and the rental houses that incur the concession. We generally know which landlords receive negative gearing, their occupational status and their income levels. We don’t which properties in the rental market are negatively geared, nor the social status of their tenants.
Thus there is no transparent connection between the landlords receiving the subsidy, the dwellings that are negatively geared and the status of the tenants who live in them. This means there is no direct empirical way to verify whether negative gearing benefits low-income tenants.
The federal government seems willing to forgo $8 billion in tax revenue to subsidise rental housing supply. Surely, then, it ought to ensure this concession assists the neediest tenants in the most pressured parts of the housing market and make landlords transparently accountable for this.
Labor’s partial abolition proposal takes a minimal step towards transparency by limiting negative gearing to new properties.
<h2>Let’s talk about the alternatives</h2>
A reformist approach would seek better value for the government’s A$8 billion-a-year investment, in terms of improved affordability for tenant households. How might this work?
The key requirements would be to ensure transparency about which dwellings are negatively geared and the socioeconomic status of their tenants. There are various ways to achieve this.
One model would be to tie the negative gearing subsidy to specified tenant groups. In this case, only if landlords let properties to target tenants, such as those on Newstart, sole parent or aged pension, would they receive the subsidy. This could be done by requiring tenant social security numbers to be reported with landlord tax returns to enable verification.
This approach could be extended by capping the value of weekly rents on properties to which negative gearing could apply. Locational targeting could focus the subsidy to areas with high market rents and poor affordability.
The transition to such a model could be phased in by starting with minimal transparency and accountability requirements and ramping up to more specific requirements. Additional compliance costs would raise the cost of investing in housing. But, it would weed out the investors who are seeking pure profit and encourage those with a social perspective.
A second model that extends transparency and accountability could involve converting negative gearing to a formal low-income housing tax credit <a href="https://theconversation.com/americas-rental-affordability-crisis-is-about-to-go-from-bad-to-worse-48143">as operates in the US</a>. Such a model provides a tax credit for investors in affordable housing that is certified as managed by a legitimate social housing provider. This could be the fillip that Australia’s small community and non-profit social housing sector needs.
A third model might be to channel negative gearing to a dedicated financial investment vehicle drawing on private investment for affordable housing that is built for or let to low-income tenants. There has been a long-standing debate in Australian housing policy circles about the need for long-term institutional investment in affordable housing.
A finance vehicle that offered a return on capital to investors supported by a tax concession could underpin new affordable housing supply. Other countries have used housing bonds in this way to attract additional investment in affordable housing.
Another model could use a reverse auction approach, with landlords competing to supply housing of certain specifications to tenants of a particular income category in return for set levels of tax credit. This would operate in a similar way to the government’s carbon abatement plan, which involves a reverse auction for renewable energy projects. Though this might raise transaction costs, it might encourage helpful institutional consolidation in the private rental sector.
A fifth approach might be for the government to provide the A$8 billion as vouchers to low-income tenants for use in renting housing of a set standard or location. Landlords would then cash these vouchers in as tax concessions. The US operates a subsidy model of this type known as “Section 8”.
A final option would be to simply take the $8 billion-a-year subsidy represented by negative gearing and build desperately needed public housing. Such an approach guarantees transparency and accountability and could directly build around 20,000 dwellings a year, or more with leveraged private finance.
No doubt the current subsidy could be remixed in multiple other ways to improve effectiveness, transparency and accountability in how it procures affordable housing. The examples offered above show that we could be having a much more positive debate about negative gearing than just abolition or retention.
 
Jago Dodson is professor of Urban Policy and director, Centre for Urban Research, RMIT University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jago-dodson-2359" target="_blank">here</a>.
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