<p data-end="184" data-start="92">Growing national developer Time &amp; Place has announced its fifth new apartment development.</p>

<p data-end="408" data-start="186">With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.</p>

<p data-end="553" data-start="410">The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.</p>

<p data-end="762" data-start="555">Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.</p>

<p data-end="918" data-start="764">Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.</p>

<p data-end="1241" data-start="920">fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.</p>

<p data-end="1519" data-start="1243">The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.</p>

<p data-end="1830" data-start="1521">fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”</p>

<p data-end="1898" data-start="1832">The new development will replace five existing two-storey homes.</p>

<p data-end="2218" data-start="1900">“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”</p>

<p data-end="2293" data-start="2220">Mosman has become increasingly popular with developers in recent years.</p>

<p data-end="2616" data-start="2295">Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.</p>

<p data-end="2729" data-start="2618">Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.</p>

<p data-end="2948" data-start="2731">Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.</p>

<p>Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.</p>

<p>They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.</p>


Joel Robinson

Time & Place to take on Mosman apartment market

<p>Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;</p>

<p>Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.</p>

<p>At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;</p>

<p>[smartcode_project:default project_id=136434 project_image_fid=348840]</p>

<p>Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.</p>

<p>This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.</p>

<p>Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.</p>

<p>[smartcode_project:default project_id=136434 project_image_fid=348839]</p>

<p>Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.</p>

<p>The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;</p>

<p>[smartcode_project:default project_id=136434 project_image_fid=348841]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;</p>

<p>Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.</p>

<p>Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.</p>

<p>Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;</p>

<p>Construction has commenced through reputable builder Manresa, who will complete the project in 2027.</p>

<p>[smartcode_project_cta:default project_id=136434]</p>


Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

<p>Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.</p>

<p>In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.</p>

<p>Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.</p>

<p>Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.</p>

<p>[smartcode_project:default project_id=342 project_image_fid=357506]</p>

<p>The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.</p>

<p>Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.</p>

<p>A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.</p>

<p>[smartcode_project:default project_id=342 project_image_fid=357508]</p>

<p>The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.</p>

<p>This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.</p>

<p>[smartcode_project:default project_id=342 project_image_fid=364553]</p>

<p>Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.</p>

<p>Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.</p>

<p>Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.</p>

<p>[smartcode_project_cta:default project_id=342]</p>


Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<p><a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;</p>

<p>Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.</p>

<p>Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=136535 project_image_fid=288420]</p>

<p>Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.</p>

<p>A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.</p>

<p>Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.</p>

<p>Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.</p>

<p>[smartcode_project:default project_id=136535 project_image_fid=361030]</p>

<p>Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.</p>

<p>“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.</p>

<p>“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”</p>

<p>Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.</p>

<p>[smartcode_project:default project_id=136535 project_image_fid=288412]</p>

<p>Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.</p>

<p>Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.</p>

<p>With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.</p>

<p>[smartcode_project_cta:default project_id=136535]</p>


Elsternwick Gardens' wellness-first design strategy

<p>Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.</p>

<p>Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.</p>

<p>Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363510]</p>

<p>Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.</p>

<p>Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.</p>

<p>The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363512]</p>

<p>Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.</p>

<p>“Amenities were at the forefront of our decisions,” Laverty said.</p>

<p>“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.</p>

<p>“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363514]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.</p>

<p>The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363511]</p>

<p>Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.</p>

<p>“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;</p>

<p>“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”</p>

<p>Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.</p>

<p>[smartcode_project_cta:default project_id=135546]</p>


Red & Co unveils amenity-rich Como development in Varsity Lakes

Firb

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<div><span>EXPERT OBSERVATION</span></div>
<div><span> </span></div>
<div><span>The Foreign Investment Review Board (FIRB) released its Annual Report for the 2017 financial year, and as expected it showed that investment in new apartments from mainland Chinese investors has been annihilated by a combination of fee charges and tighter capital controls.</span></div>
<div><span> </span></div>
<div>
<span>There's much more to the Annual Report than just the residential real estate investment aspect, of course, but this is a blog not an Encyclopaedia Britannica so let's crack straight into it.</span><span><br></span>
</div>
<div><span> </span></div>
<div><span>Although the impact on total foreign investment was played down in the report, the reality is that the number of residential approvals have been smoked, down by 67 per cent from the prior year. </span></div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-UMTpeaTHMM4/WwyhL22FvEI/AAAAAAAAqP0/8gaf_QtZb183rLkVwdH45jQUDJNGnkdRQCLcBGAs/s1600/FIRB1.jpg"><img src="https://2.bp.blogspot.com/-UMTpeaTHMM4/WwyhL22FvEI/AAAAAAAAqP0/8gaf_QtZb183rLkVwdH45jQUDJNGnkdRQCLcBGAs/s640/FIRB1.jpg" width="640" height="372" data-original-height="780" data-original-width="1337"></a></div>
<div>Similarly the value of residential approvals crashed 65 per cent lower from $72.4 billion to $25.2 billion. </div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-eeKkUWK9UlM/WwyhMNmDdLI/AAAAAAAAqP4/8tL55X2DYeMHxJaDttmNpm2Z3WPJ1uxcQCLcBGAs/s1600/FIRB2.jpg"><img src="https://2.bp.blogspot.com/-eeKkUWK9UlM/WwyhMNmDdLI/AAAAAAAAqP4/8tL55X2DYeMHxJaDttmNpm2Z3WPJ1uxcQCLcBGAs/s640/FIRB2.jpg" width="640" height="372" data-original-height="801" data-original-width="1376"></a></div>
<p> </p>
<div>The bulk of new approvals through this unprecedented cycle have been for new dwelling exemption certificates, mainly for Chinese investors.</div>
<div> </div>
<div>Looking at these numbers it's not hard to understand how Sydney now has more apartments approved but not yet commenced than at any time in its history, as <a href="http://petewargent.blogspot.com.au/2018/04/bust-looms-for-sydneys-apartment" target="_blank">detailed here previously</a>.</div>
<div> </div>
<div>The offshore buyers have dried up, demand from domestic investors has been stymied, and the demand from owner-occupiers is insufficient to get new development project finance across the line. </div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-NB_Pr0ox8ag/WwyhMFmGT_I/AAAAAAAAqP8/QW3ddVDDvDsLNYRsM8ydj3RaFs_WdVtqQCLcBGAs/s1600/FIRB3.jpg"><img src="https://2.bp.blogspot.com/-NB_Pr0ox8ag/WwyhMFmGT_I/AAAAAAAAqP8/QW3ddVDDvDsLNYRsM8ydj3RaFs_WdVtqQCLcBGAs/s640/FIRB3.jpg" width="640" height="376" data-original-height="798" data-original-width="1354"></a></div>
<p> </p>
<div>Statistically it appears to be a certainty that Sydney will experience the greatest number of failed apartment projects as these trends flow through. </div>
<p> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-oB--8HHlBVI/WwyhNNBYK4I/AAAAAAAAqQA/jcgvA_iBayUyUp_smd7mvblQxlk_NFajQCLcBGAs/s1600/FIRB4.jpg"><img src="https://4.bp.blogspot.com/-oB--8HHlBVI/WwyhNNBYK4I/AAAAAAAAqQA/jcgvA_iBayUyUp_smd7mvblQxlk_NFajQCLcBGAs/s640/FIRB4.jpg" width="640" height="378" data-original-height="801" data-original-width="1355"></a></div>
<p> </p>
<div>I expect to see plenty of apartment projects stalling, and increasing signs of discounting on new Sydney apartments.<br><br>Perhaps this was an inevitable end-game for this cycle, where development has been too much skewed towards apartments for investors, and too little towards the types of medium-density dwellings that people want to reside in.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>As noted, there is much more to foreign investment than just new apartment purchases, with total investment of $168 billion only 4 per cent below the level seen in the prior year. </div>
<div> </div>
<div>And indeed, investment in manufacturing, agriculture, ports, other commercial real estate, and resources has catapulted China to become by far and away the greatest investor in Australia at $38.9 billion in FY2017, miles ahead of the United States in second place at $26.5 billion.</div>
<div> </div>
<div>Nevertheless, these figures will have some significant impacts on the new apartment sector, construction trends, and the broader economy - and especially so in Sydney.</div>
<div> </div>
<div>
<span>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and </span><a href="https://petewargent.blogspot.com/" target="_blank">blogger</a><span>.</span>
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pwargent-M4siyDbqQY

Local demand insufficient to get projects across the line as offshore apartment buyers dry up: Pete Wargent

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<div>The Real Estate Institute of Australia (REIA) has fronted a Senate Economics Committee to give evidence on the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2020. </div>
<div> </div>
<div>REIA President Adrian Kelly has said that fees should be structured to reflect the cost of undertaking the assessment and administration by the Australian Government, instead of imposing unnecessary impediments on foreign investors in the residential property market.</div>
<div> </div>
<div>“Foreign investment in the residential property market is the lowest it has been since 2015 – 2016,” he told the committee.</div>
<div> </div>
<div>“We understand from our agents working in this area the cumulative impact of Commonwealth and State government fees has contributed to decreased demand from foreign investors.</div>
<div> </div>
<div>“It has been our proposal to Treasury, and now this Committee, that fees should be equitable and simply reflect the cost of assessment and processing by FIRB.”</div>
<div> </div>
<div>The Property Council of Australia has also condemned the new proposed fee amounts, that are not set out in the legislation but by way of FIRB fee regulations.</div>
<div>
<div class="page" title="Page 1">
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<p><span>It noted the cost of applying for FIRB approval for the average developed commercial property transaction under this draft fee regime is set to increase from $26,700 to $66,000 </span><span>– </span><span>an increase of almost 2.5 times. For investments valued at just below $1b, the proposed fee increase would be more than </span><span>nine times </span><span>the current level.</span></p>
<p><span>"These very large cost increases for investment in commercial real estate </span><span>– </span><span>a very vanilla investment class from a security perspective </span><span>– </span><span>is not justifiable by any policy basis," the PCA advised.</span></p>
<p><span>"These proposed increases go far beyond administrative cost recovery and would put Australia at a material investment disadvantage to other countries," it noted.</span></p>
</div>
</div>
</div>
</div>
<div>The Treasury claimed updates to the fee framework will ensure that the cost of administering the foreign investment review framework is borne by foreign investors, as well as making the fee framework simpler and fairer.</div>
<div> </div>
<div>"While some investors will pay more, they will be the investors proposing to undertake the highest value investments," Treasury advised.</div>
<div> </div>
<div>"The reforms ensure that more of the costs of administering the framework are borne by larger investors and investors that currently pay a disproportionately smaller fee for their investment.</div>
<div> </div>
<div>"In general, fees represent a small proportion of the costs associated with an investment, and this will continue to be the case.</div>
<div> </div>
<div>"The maximum fee for a commercial transaction over $50 million will not be higher than 0.03 per cent of the consideration. For agricultural land over $2 million, it will not be higher than 0.66 per cent."</div>
<div> </div>
<div>Mr Kelly said while CV-19 had attracted a welcome and wide-spread commitment from all levels of Australian governments to deregulate and be more business and investment-friendly, the REIA was concerned the fee-setting framework within the Bill did not meet these best practice policy aspirations.</div>
<div> </div>
<div>“This is not just across the board but for each category of fees,” he said.</div>
<div> </div>
<div>“That is, residential property applications should not be offsetting or subsidising the cost of administration other categories.</div>
<div> </div>
<div>“The proposed fee structure within the ‘Fees’ Bill this Committee is tasked to inquire on ignores all of the above.</div>
<div> </div>
<div>“In short, unnecessary impediments should be removed for foreign investors looking to invest in Australia’s residential property market.”</div>
<div> </div>
<div>“We respect all national security considerations but fees should ultimately reflect the cost of undertaking the assessment and administration.”</div>
<div> </div>
<div> </div>
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jchancellor-FAypfDUnLy

REIA seeks FIRB fee overall given decease in demand

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<div>
<p>Three NSW farms put on the market by the Kahlbetzer family have been sold for more than $115 million in total.</p>
<p>The Lachlan River frontage properties were the first to be offered to the market subject to Australia's new foreign investment selling rules to ensure opportunity for local investors and farmers.</p>
<p>But all three were sold to buyers from offshore - to buyers from the United States and the Netherlands.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4444" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">The properties, Jemalong Station and Jemalong Citrus at Forbes and Merrowie at Hillston, were held by the Kahlbetzers' Twynam Agricultural Group.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4444" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">The selling agents had more than 50 inquiries with more than 20 parties making inspections</p>
</div>
<div>"In all cases, the accepted offer was the highest offer received for the land and water components of the respective properties," Twynam said in a company statement.</div>
<div>
<p>The properties were brokered by Gary Johnston of Johnston Rural Group Forbes and Bruce Gunning of Ray White Rural International Sydney.</p>
<p data-gtm-vis-first-on-screen-7770372_137="19422" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Optifarm, a Netherland-based group, bought the two Jemalong properties.</p>
<p data-gtm-vis-first-on-screen-7770372_137="19422" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">The US-based group, MERS Global Investments LLC, bought Merrowie though its vehicle MRA Merrowie.</p>
<p>​Optifarm has already been active in the Australian market, buying Uri Park, a mixed farm near Darlington Point in the NSW Riverina last August.</p>
<p>The properties, which include Jemalong Station, Jemalong Citrus at Forbes and Merrowie at Hillston, cover 46,000 hectares.</p>
<p>The Kahlbetzer family, whose wealth is estimated by the ailing Financial Review Rich List at $840 million, has sold around 40 properties over the past decade.</p>
</div>
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Kahlbetzers' sell three NSW farms to overseas buyers

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<div>
<p>The Kahlbetzer's Twynam Agricultural Group has publicly listed three of its Lachlan River frontage properties for sale by expression of interest campaign closing March 12.</p>
<p>The properties, which include <a href="https://www.raywhite.com/nsw/jemalong/1825448/" target="_blank">Jemalong Station, Jemalong Citrus at Forbes and Merrowie at Hillston</a>, cover 46,000 hectares.</p>
<p>They were being quietly offered for sale, but under new FIRB rules from February 1 they have to be publicly advertised for at least 30 days in order to be sold to foreigners.</p>
<p>The Kahlbetzer family's wealth has been estimated by the Financial Review at $841 million. The farm offerings could total $100 million plus.</p>
<p>Below, the cotton at Merrowie.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/7/cotton.jpg" alt=""></p>
<p>Johnny Kahlbetzer confirmed the bush chatter adding that there were plenty of buyers. </p>
<p>It pioneered cotton properties in the Riverina starting with the purchase of Merrowie in 1991.</p>
</div>
<div>
<p>Twynam has appointed Gary Johnston of Johnston Rural Group Forbes and Bruce Gunning of Ray White Rural International Sydney.</p>
<div>Jemalong Station, located 35km west of Forbes, comprises 13,387ha with 2,384ha of irrigation development an 8,885 ML JIL Water (Jemalong Irrigation Licence), 3,107 ML Groundwater.</div>
<div> </div>
<div>Adjoining Jemalong Station is Jemalong Citrus on 360.84ha. It has access to 1000 ML Groundwater and 750 ML JIL Water. The property comprises about 170,000 orange trees, mostly winter juicing varieties.</div>
<div> </div>
<div>The other property being offered for sale is Merrowie which is situated 15km west of town of Hillston. It is approx. 32,730ha with 9,906ha of developed irrigation and has available approx. 6,689 ML of General Security Lachlan River Water Entitlements as well as 10,528 ML of Groundwater Licence and approx. 16,000 ML above ground water storage.</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

Kahlbetzer's Twynam selling three farms - but not off market

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<div>
<p>The federal government has imposed tighter foreign investment restrictions on the off-market sale of agricultural land worth $15 million or more.</p>
<p>Treasurer Scott Morrison announced any rural vendor wishing to sell to a foreign investor will need to publicly market the offering to locals for 30 days.</p>
<p>It was designed to stop land being put up for foreign sale without Australians knowing about it.</p>
<p>The responsibility will be on the applicant to demonstrate how they became aware that the property was advertised for sale and whether the acquisition was subject to an open and transparent sale process.</p>
<p><a href="https://twitter.com/ScottMorrisonMP?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor" target="_blank">Scott Morrison issued a tweet</a> saying it was about 'putting Australians first."</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/5/morrison.jpg" alt=""></p>
<p>Foreign buyers will need to demonstrate that land "has been part of a public sales process and marketed widely to potential Australian bidders for a minimum of 30 days, and Australian bidders have had an opportunity to participate in the sale process".</p>
</div>
<div>"All acquisitions of agricultural land by foreign investors for residential development will also be subject to standard development conditions requiring development to commence within a five year period to prevent land banking. This condition already applies to acquisitions of vacant land," Mr Morrison said.</div>
<div> </div>
<div>He said the new restrictions on agricultural land were motivated by the national interest.</div>
<div class="cq-article-content-paras section">
<p>Previously, the Coalition government has reduced from $252 million to $15 million the threshold at which the Foreign Investment Review Board becomes involved in purchasing land. Similarly, it has lowered the scrutiny thresholds for agribusiness.</p>
<p>"Concerns around the ability of Australians to participate in the sale process of agricultural land acquisitions have been a factor in my previous foreign investment decisions, including approval of the sale of S. Kidman &amp; Co Limited," Scott Morrison advised.</p>
<p>The FIRB gave three examples:</p>
<div>
<p>Example 1</p>
<p>Michele is a foreign person and wishes to acquire Joe’s farm. She first saw Joe’s farm advertised in a local newspaper and spoke to the realtor who has had the property listed for the last two months.</p>
<p>Michele confirms with the realtor that the property has been advertised through multiple channels for a period of at least 30 days, including online, through rural real estate brokers, and via advertisements in local and national media. If Michele applies to the Foreign Investment Review Board to acquire Joe’s farm, the sale process is unlikely to raise national interest issues.</p>
</div>
<div>
<p>Example 2</p>
<p>Susan has been directly approached by a foreign investor seeking to buy her farm. Susan’s farm is not on the market for sale, however, it was advertised for sale five months ago but was taken off the market as it was not sold (either no offers were received or the offers received were not accepted).</p>
<p>The foreign investor, Green Forestry Co, approached Susan because they have significant holdings of land near Susan’s farm for their forestry business and now have the capital available to expand their business.</p>
<p>Green Forestry Co applies to the Foreign Investment Review Board to acquire the property. This acquisition would satisfy the requirement for an open sale process as the property was advertised in the last 6 months.</p>
</div>
<div>
<p>Example 3</p>
<p>Therese wishes to buy a large parcel of agricultural land that is currently used for crop farming and includes an incidental established residential dwelling.</p>
<p>Therese saw the property advertised in an Australian national newspaper and viewed further information about the property on a real estate agent’s website.</p>
<p>Numerous parties, both foreign and Australian, were given the opportunity to bid or make offers for the property.</p>
<p>If Therese lodges a Foreign Investment Review Board application for the acquisition, it is unlikely that national interest issues will be raised regarding the opportunity for Australians to purchase the land.</p>
</div>
<p> </p>
</div>
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Offmarket rural FIRB sales banned by Treasurer Scott Morrison

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<p>Chinese investors dominated the list of foreign investment approvals for the financial year 2015-2016, with much of it in residential real estate, data from the Foreign Investment Review Board annual report shows.</p>
<p>Of the total $47.3 billion pledged by Chinese investors in Australia, real estate accounted for more than $31.9 billion, FIRB data showed.</p>
<p>The total investment figure is similar to the previous year’s $46.6 billion in approvals.</p>
<p>The value of approved investment rose to around $248 billion, an increase of over $55 billion on 2014-15, driven predominantly by increased investment in the real estate sector, the FIRB noted.</p>
<p>Chinese investment commitments were far higher than the second-placed US at nearly $31 billion, of which $8.2 billion was into real estate. The FIRB data comes at a time when the government has announced measures to crack down on overseas property investors to cool the hot property market, mainly in the east coast.</p>
<p>Investment in development assets, such as new dwellings, vacant land and redevelopment of existing residential property that increases the housing stock was 85.4 per cent of all residential approvals, the FIRB said.</p>
<p>Most of these were in NSW and Victoria, or more specifically Sydney and Melbourne. </p>
<p>Residential real estate also accounted for the maximum number of foreign approvals by sector. In 2015-16, there were 40,149 approvals compared with 36,841 in 2014-15, FIRB data showed. Residential attracted commitments of $72.4 billion in the last financial year.</p>
<p>Approvals to buy established dwellings have fallen 36 per cent from 2014-15, after the Treasury cracked down on illegally owned properties by foreigners and forced many to sell.</p>
<p>These statistics, as well as an analysis from Treasury last year, show that foreign investment approvals and investments in residential property do not push up the price of housing.</p>
<p>"While Melbourne received more foreign investment approvals than Sydney, price growth in Sydney was much stronger than in Melbourne," the FIRB report says.</p>
<p>"Every Chinese dollar invested landed in the pocket of an Australian somewhere. Chinese investment translates directly into jobs, tax revenue, economic growth and new housing construction. There's nothing about it that any reasonable person can object to. Frankly, China has been a godsend for Australia these past 10 years," Chinese property group Juwai.com’s chief executive Charles Pittar was cited as saying by the Australian Financial Review.</p>
<p>High value commercial property approvals increased by more than $10 billion.</p>
<p>For the third year in a row, China was the largest source of approved investments and while the US was second, it was the largest investor in non-real estate sectors.</p>
<p>There were foreign interests in 13.6 per cent of agricultural land by area as at June 30 last year. The two biggest investors in agricultural assets are the UK and the US.</p>
<p>Among agricultural assets, Federal Treasurer Scott Morrison approved the sale of the Kidman cattle empire for around $380 million to the syndicate of mining magnate Gina Rinehart and a Chinese company after refusing earlier attempts by a majority Chinese consortium.</p>
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jonathanchancellor-7SQnKwU6yx

Chinese continue to dominate foreign investment in real estate: FIRB data

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<p>Treasurer Scott Morrison has forced the sale of 15 more illegally bought residential properties held by foreigners, taking the total number of forced sales to 61.</p>
<p>The 15 latest properties are in Victoria and Queensland, with a combined purchase price of more than $14 million and are held by investors from China, India, Indonesia, Iran, Malaysia, the United Kingdom and Germany.</p>
<p>Of the 15, six were owned by Chinese while three were from the UK. The highest divestment was a $5.9 million property in Melbourne’s Rockbank, owned by an Indian national.</p>
<p>In all, the combined value of the 61 properties is $107 million, according to a press release on the Treasury department’s website.</p>
<p>The foreign nationals in the latest group of forced disposals purchased their properties without Foreign Investment Review Board (FIRB) approval and in some cases held multiple established properties in breach of the rules. The ATO identified these breaches through data matching programs as well as using information provided by the public.</p>
<p><img src="https://www.urban.com.au/images/2017/02/13/IlegalProperties.png" alt=""></p>
<p>Another 36 foreigners have sold properties during the course of ATO investigations, underscoring improved compliance with the rules, it said.</p>
<p>So far, the taxation office has found more than 570 foreigners who have breached property rules. </p>
<p>Foreigners are not allowed to buy established dwellings and can only buy new property and have to get their applications approved by the FIRB.</p>
<p>Failure to meet these conditions could result in civil penalties or criminal prosecution.</p>
<p>The Turnbull government has increased stamp duty and other taxes for foreigners applying to buy property in Australia with a view to check the rapid rise in dwelling prices.</p>
<p>Since introducing the new fees on 1 December 2015 more than $140 million has been collected, the release said.</p>
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Government forces foreign owners of 15 illegally bought properties to sell

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<p>The Treasurer, Scott Morrison, has made changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.</p>
<p>The Turnbull Government advised last November it was set to implement changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.</p>
<p>"This change addresses industry concerns, and means property developers won’t be left in the lurch when a foreign buyer pulls out on an off-the-plan purchase," the Federal Treasurer Scott Morrison advised.</p>
<p>"This action will ensure that markets will not be impacted negatively by an increased amount of off-the-plan sales, particularly from foreign purchasers, not being completed."</p>
<p>He said it was common sense that an apartment or house that has just been built, or is still under construction and for which the title has never changed hands, is not considered an established dwelling.</p>
<p>In the event of a failure to complete settlement, the dwelling should revert to its previous status – that is, a new dwelling.</p>
<p>For individual applications made by potential purchasers this policy change will be implemented immediately.</p>
<p>Foreign persons who apply to purchase a dwelling that is considered established, only due to a failed settlement, will be assessed as if it was a new dwelling.</p>
<p>These issues also affect the current New Dwelling Exemption Certificates, which act as a pre-approval mechanism for foreign persons purchasing new apartments in a specific development.</p>
<p>A regulation change will be made at the next opportunity to enable developers to acquire a certificate that covers foreign persons purchasing a dwelling that is considered established only due to a failed settlement.</p>
<p>The Commissioner of Taxation has advised no compliance action will be pursued against persons who, if not for a failed settlement preceding their purchase, would otherwise have been covered by an existing New Dwelling Exemption Certificate until the regulations are changed.</p>
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Off the plan FIRB rule change by Scott Morrison

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<p><span>The Department of Treasury's Working Paper into perceived links between </span>foreign investment and residential property price growth has been released with statistics finding the driver of the majority of recent price growth could not be attributable to increased foreign demand.</p>
<p>The study found the majority of foreign residential purchases are of the new property, not existing and foreign demand has accounted for only a small proportion of the increase in property prices over recent years.</p>
<p>The release said other factors such as interest rates, financial deregulation, incomes, demographics [population growth] and the prices of alternative investments, such as equities, have played a role.</p>
<p>"Given that in the short run the supply of residential property is relatively fixed so any increase in demand, whether domestic or foreign, should result in higher prices," it said.</p>
<p>"Indeed, there have been many other significant domestic drivers of property prices over the period examined.</p>
<p>"The majority of foreign investment approvals are for new as opposed to established dwellings.</p>
<p>"This provides some indication that, in the longer-term, foreign demand is increasing property supply consistent with Australia’s foreign investment framework."</p>
<p>Charles Pittar, chief executive officer of Chinese international property website Juwai.com said the Parliamentary Inquiry into foreign investment found the same thing three years ago, although without the impressive statistics.</p>
<p>"The results are no surprise and they confirm what we have said for years," he said.</p>
<p>"Offshore buyers drive huge benefits for the Australian real estate market and economy, as well as billions of dollars of job growth and physical investment in new housing.<br><br>"I'm not sure how many minds it will change. For most people, it's just too easy to blame an easily identifiable group like offshore buyers when prices get hot.<br><br>"It sounds a bit harsh for the <span id="0.7301426047924906" class="highlight">FIRB</span> to say Australian property buyers have a 'herd mentality,' but we certainly love our real estate."<br><br>"Most experts believe Sydney and Melbourne are heading for price slowdowns. If we want to keep adding new homes to the supply despite that, then we need to encourage foreign buyers - rather than push them away."</p>
<p>The report can be downloaded <a href="https://treasury.gov.au/PublicationsAndMedia/Publications/2016/Foreign-Investment-and-Residential-Property-Price-Growth" target="_blank">here</a>.</p>
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