<p style="line-height:1.3800000000000001">Northland Group’s Central Quarter apartment development, located in the heart of Merrylands, ticks every box that buyers consider when purchasing a brand-new apartment.</p>

<p>CQ, currently under construction on Pitt Street, will comprise 194 one-, two-, and three-bedroom apartments in the heart of the growing suburb.</p>

<h2>Guaranteed Delivery</h2>

<p>First and foremost is the guarantee of delivery. <a href="https://www.apartments.com.au/developers/northland">Northland</a> has only just launched the development, despite being close to topping out the main structure. They progressed well into construction before bringing the project to market, giving buyers confidence that the development is genuinely moving ahead.</p>

<p>[smartcode_project:default project_id=5660 project_image_fid=1674]</p>

<h2>Quality Assurance</h2>

<p>The second — and perhaps most important — consideration for new apartment buyers is not just whether the project will be completed, but whether it will be finished to a high standard. Northland Group is the only developer in Merrylands to take out Resilience Insurance’s Latent Defects Insurance, offering buyers protection from any structural or waterproofing issues for 10 years after completion. Northland also has a vastly experienced construction team, having been building across Sydney for the best part of three decades.&nbsp;</p>

<h2>Prime Location</h2>

<p>The third pillar, which is paramount, is location — and how well the apartment fits into a buyer’s lifestyle. It must be well-connected to both transport and local amenities. <a href="https://www.urban.com.au/new-apartments/central-quarter-merrylands-242-252-pitt-street-merrylands-nsw-2160">Central Quarter</a> occupies a prime site on Pitt Street, right next to the Merrylands Bus Interchange and Merrylands Train Station. This offers direct access to Parramatta, just one stop away, and places the CBD within 35 minutes.</p>

<h2>Amenity-Rich Environment</h2>

<p>While the development is already close to everything Merrylands has to offer, Northland Group is adding further value by delivering 22 new retail tenancies at the base of the building and within the commercial podium. Confirmed tenants include a 24/7 gym operator, a provider for a 111-place childcare centre, and major fast-food retailers.</p>

<p>[smartcode_project:default project_id=5660 project_image_fid=1613]</p>

<p>Residents will also have private access to a rooftop with several breakout spaces, barbecue areas, and a children's playground.</p>

<h2>Thoughtfully Designed Apartments</h2>

<p>With all the above boxes ticked, attention turns to the apartments themselves. Northland has gone above and beyond, offering large floorplans and premium finishes as standard. Kitchens include stone island benches, integrated Smeg appliances (gas cooktop, oven, rangehood, microwave, and dishwasher), and Villeroy &amp; Boch tapware.</p>

<p>[smartcode_project:default project_id=5660 project_image_fid=1607]</p>

<p>Even the small details haven’t been overlooked. The integrated VRF air conditioning system allows for zoned temperature control in each room. Furthermore, each Central Quarter balcony will be built with pedestal tiles allowing for seamless indoor/outdoor living.&nbsp;</p>

<h2>A Decade in the Making</h2>

<p>Central Quarter has been over a decade in the making, with Northland Group securing the site back in 2014. Years of careful planning and design have gone into creating a product that truly suits the area.</p>

<p>With completion expected by early to mid-2026 and interest rates forecast to fall further before then, now is arguably the perfect time to secure a new home at this advanced stage of construction.</p>

<p>[smartcode_project_cta:default project_id=5660]</p>


Joel Robinson

Why Northland Group’s Central Quarter apartment development ticks every box

<p>High-end retailer Cult Design has signed up to take all of the commercial space, and a large section of the retail space, on the street-level of the upcoming new Fitzroy apartment development, Fitzroy Fitzroy.</p>

<p>Cult Design, which offers&nbsp;premium&nbsp;furniture, lighting and objects from iconic international and local brands, will also furnish the communal areas of the project with Cult’s brands, as well as Cultivate — Cult’s in-house sustainability program that provides buyback, refurbishment, and recycling services — a program that aligns with the project’s efforts to restore and preserve the heritage aspects of the building. Current and future residents will also have the option to purchase a turnkey furnished solution curated by Cult.</p>

<p>Cult has taken&nbsp;the entirety of the project's commercial space, and two of the three retail lots, which will form Cult's new HQ and flagship showroom.&nbsp;</p>

<p>In a further commitment to the building, Cult Design Founder Richard Munao has also bought one of the five terrace homes in the project. So too has DKO’s Director of Interiors &amp; Design Lead for the project, Michael Drescher. The sales highlight the deep alignment between the project’s architectural intent and its growing community of discerning owner-occupiers, including the collaborators themselves.</p>

<p>[smartcode_project:default project_id=14394 project_image_fid=183070]</p>

<p>Dean Lefkos, founder and director of Chapter Group which is developing Fitzroy Fitzroy, said the project is unlike any development he’s seen in terms of its buyer community.</p>

<p>“<a href="https://www.urban.com.au/new-apartments/fitzroy-fitzroy-411-421-smith-street-fitzroy-vic-3065">Fitzroy Fitzroy</a> is a true owner-occupier project; we’ve had best friends, siblings and even cousins purchasing homes, which is truly rare in residential projects these days," Lefkos said.</p>

<p>“The architecture and interiors of Fitzroy Fitzroy genuinely reflect the suburb’s character, with thoughtful design that has clearly resonated with purchasers."</p>

<p>Located on Smith Street and designed by DKO Architecture, Fitzroy Fitzroy sits behind a grand heritage brick facade, once home to MacRobertson’s Garage and Workshop, and reaches nine storeys high, complete with angular rooftops and a chamfered western side to create sunlit internal spaces and generous viewlines.</p>

<p>[smartcode_project:default project_id=14394 project_image_fid=183066]</p>

<p>Originally launching to market with 56 apartments and six terrace homes, Fitzroy Fitzroy will now be home to 52 apartments and five terrace homes following a number of amalgamations. One such purchaser is Michael Drescher, DKO’s design lead on the project, who purchased a three-bedroom apartment.</p>

<p>“I knew the site well, it’s a pocket of Fitzroy I’ve always admired, but it was through designing the interiors and meeting future residents<br />
that I knew this was a place we could truly call home,” Drescher said.</p>

<p>“I sensed early on that the building would foster a strong sense of community, and that feeling came to life during one of the purchaser events — everyone had the chance to meet their future neighbours, but it felt more like a gathering of old friends coming together.</p>

<p>“At DKO, we invested considerable time in crafting each floor plan with care. From the outset, we anticipated strong interest from owner-occupiers and particularly those already living in the area. The apartment we purchased was always one of my favourite floor plans in the project."</p>

<p>[smartcode_project:default project_id=14394 project_image_fid=1011]</p>

<p>Buyers will have access to resident-only amenities including the Smith Club, with communal bar and dining, private meeting and work-from-home spaces and an expansive, tranquil rooftop garden on level nine, designed by TCL.</p>

<p>Having met with future residents and purchasers, Drescher has developed an understanding of how the residential amenities and rooftop communal spaces will be used and is working with Cult and Chapter Group on furniture selections to suit.</p>

<p>At ground level, an internal laneway connects Smith Street to the residents’ lobby, inspired by the local arcades in Melbourne’s CBD, with Cult’s future corner showroom to be located behind the existing brick facade, with large windows opening onto both Smith Street and Leicester Street.</p>

<p>Limited apartments remain, ranging from $720,000 to over $4 million. Three yet-to-be-released sub-penthouses will launch to market in spring.</p>

<p>[smartcode_project_cta:default project_id=14394]</p>


Dean Lefkos, founder and director of Chapter Group which is developing Fitzroy Fitzroy, said the project is unlike any development he’s seen in terms of its buyer community

Cult Design takes commercial and retail space at Fitzroy Fitzroy as founder buys into project

<p data-pm-slice="0 0 []">The prolonged growth in the Brisbane unit market is becoming quite remarkable.</p>

<p data-pm-slice="0 0 []">Unit values rose another 1.1 per cent in July, according to Cotality's latest Home Value Index. They are now over 10 per cent up over the last 12 months, and making it the best performing capital city unit market in the country, just head of Perth and Adelaide. Over the same period, Sydney unit values have seen now growth, and Melbourne units have decline 0.8 per cent.</p>

<p data-pm-slice="0 0 []">What makes the continued growth in 2025 remarkable is how well the unit market is performing after 2024, when it grew by over 16 per cent, growth not seen over a calendar year since the 1980s.</p>

<p data-pm-slice="0 0 []">The median unit value in Brisbane is now $727,000, the second most expensive capital city unit market in the country, only behind Sydney's $868,000 median.</p>

<p>With strong fundamentals including low supply, growing consumer confidence, rate cut tailwinds, and the anticipation building for the 2032 Summer Olympics, there's no suggestion Brisbane’s unit market won't continue to see strong growth.</p>

<h2>What happened in Brisbane’s off the plan apartment market in July?</h2>

<p>Developers are looking at any opportunity to get into the Brisbane apartment market.</p>

<p>Veteran builder John Kearney, who runs the successful development company Immerse Projects on the Gold Coast, secured a site in Toowong for his debut Brisbane apartment development.</p>

<p>It’s a location filled with nostalgia for Kearney, who studied at the nearby University of Queensland.</p>

<p>"It feels like a full circle moment," Kearney told Apartments.com.au.</p>

<p>“I spent many nights at the Regatta Hotel just down the road — as have most people in Brisbane. It’s one of the city’s most well-known hotels, and with several cafes, restaurants, and a CityCat stop nearby, it’s become an even more attractive place to live.”</p>

<p>He also noted the opportunity to take advantage of significant view corridors from the new development site: across Toowong Memorial Park, north to the city, and east along the Brisbane River.</p>

<p><em><strong>Read more: <a href="https://www.apartments.com.au/news/qld/first-look-immerse-projects-moves-into-brisbane-apartment-market-with-toowong-site-acquisition">First look: Immerse Projects moves into Brisbane apartment market with Toowong site acquisition</a></strong></em></p>

<p>National developer Fortis has also been in acquisition mode, filing for two new apartment developments in Hamilton and New Farm.</p>

<p>They are seeking to develop a boutique block of 12 on Hamilton's Racecourse Road (below), and 74 apartments on New Farm's dress circle Bowen Terrace.</p>

<p><img alt="Fortis doubles down on Brisbane, files boutique apartment plans on Hamilton's Racecourse Road" 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/Racecourse_Hero_01.jpg?VersionId=tFCZcfOm_N9P7FqmhX9ViXj_EF_5EQ_u" /></p>

<p>They've had <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada Architects</a>&nbsp;design the Hamilton project, which is part of a wave of new development that will uplift Racecourse Road.</p>

<p><em><strong>Read more: <a href="https://www.apartments.com.au/news/qld/fortis-doubles-down-on-brisbane-files-boutique-apartment-plans-on-hamiltons-racecourse-road">Fortis doubles down on Brisbane, files boutique apartment plans on Hamilton's Racecourse Road</a></strong></em></p>

<p>More apartments are coming to West End, with Zen Group securing approval for a 200 climate-responsive apartments on <a href="https://www.apartments.com.au/new-apartments/24-duncan-street-west-end-qld-4101">Duncan Street</a>.</p>

<p>The two 17-storey towers will have a mix of one-, two-, and three-bedroom apartments.</p>

<p><img alt="200 &quot;climate-responsive&quot; apartments set for West End as Zen Group given green light" 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/Duncan%20Street%20pers.png?VersionId=nmW9L.fBmBQSq_9OKGMUvFkSA2NZek20" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bettspartners">Betts + Partners</a>, the development is grounded in a climate-responsive and contextually sensitive approach, aiming to reinforce the emerging identity of the West End Riverside South precinct.</p>

<p>The project includes a 2,600 sqm rooftop offering a comprehensive suite of resident amenities: three pools, a fitness centre, cinema room, private dining rooms, lounges, a library, and wellness facilities including hot and cold plunge pools, pilates, a sauna and a contemplative garden.</p>

<p><em><strong>Read more: <a href="https://www.apartments.com.au/news/qld/200-climate-responsive-apartments-set-for-west-end-as-zen-group-given-green-light">200 "climate-responsive" apartments set for West End as Zen Group given green light</a></strong></em></p>

<p>There was a rare new launch of apartment in July, in the heart of the Brisbane Olympic precinct. <a href="https://www.apartments.com.au/developers/keylin-group" target="">Keylin</a>&nbsp;has started taking sales at&nbsp;<a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, located across the road from Victoria Park, the heart of the Games.</p>

<p><a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria</a>&nbsp;will comprise 132 residences across 15 levels in an elevated position on Gregory Terrace, directly opposite Victoria Park, the future site of the Games.</p>

<p>Leaning into its Olympic location, Keylin is introducing unique amenities that cater to changing lifestyle requirements.</p>

<p>[smartcode_project:default project_id=109146 project_image_fid=1015]</p>

<p>Much like the shift developers made during the pandemic to include study nooks and multi-purpose rooms in response to the work-from-home trend, Keylin has responded to the growing popularity of pickleball. Oria will feature a proposed private pickleball court as part of its facilities, one of the first courts in a new residential development across the country.</p>

<p>Keylin understood the prime value of this location long before the announcement that Victoria Park would be the heart of the 2032 Summer Olympics.</p>

<p>The address at 447 Gregory Terrace provides residents with easy access to major transport links, universities, and hospitals. Keylin has already commenced construction on Oria, which is being delivered by builder CoStruct.</p>

<p><em><strong>Read more: <a href="https://www.apartments.com.au/news/qld/keylin-group-launches-oria-in-victoria-park-spring-hill-olympic-precinct">Keylin Group launches Oria in Victoria Park, Spring Hill Olympic precinct</a></strong></em></p>


City Beat July 2025: Brisbane's supercharged unit market continues to boom

<p>There’s no sign of Palm Beach’s development boom slowing down.</p>

<p>Local developer Chippendale Group — which welcomed buyers to its Eva on Tenth project late last year — is now moving ahead with its next venture, Elise.</p>

<p>Similar in scale to Eva, <a href="https://www.urban.com.au/new-apartments/elise-1425-1427-gold-coast-highway-palm-beach-qld-4221">Elise</a> will deliver 47 two-bedroom apartments, several with multipurpose rooms and dedicated study spaces. The project occupies a 1,230 sqm site at 1425–1427 Gold Coast Highway, with dual frontage to Twenty Fifth Avenue.&nbsp;It is on the prized eastern side of the Gold Coast Highway, 55m to the sand.</p>

<p><img alt="Chippendale" data-entity-type="file" data-entity-uuid="f923e5ae-0554-4a27-8d30-2f00990e09e6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-14%20at%203.35.48%E2%80%AFPM.png?VersionId=tkiYZ4CdZCklnS_KwDH_EZSnZl9K0QQT" /></p>

<p>Chippendale Group, led by&nbsp;fifth-generation family member and local businessman Daniel&nbsp;Chippendale, appointed BDA again to design Elise.</p>

<p>They noted in their submission to the Gold Coast City Council that the design "prioritises visual permeability and climatic performance to create a liveable residential outcome in a prominent beachfront location”.</p>

<p>The nine-level building will also home two swimming pools on the ground level, a gym with a sauna, and a resident lounge with dining space, kitchen, and barbecue area.&nbsp;</p>

<p><img alt="Chippendale" data-entity-type="file" data-entity-uuid="ef9ea403-e608-466e-a277-09d3c96220c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-14%20at%203.35.54%E2%80%AFPM.png?VersionId=hS2zvNS0C43vRqrrS4s6yeDiS9ov6UJq" /></p>

<p>Palm Beach is going through another wave of development. The quiet suburb became one of the most in demand suburbs in the country in 2020 and 2021 during the onset of COVID-19, with both developers and buyers scrambling to get into the market.</p>

<p>Those developments have since been delivered and settled - and now there's a new wave of projects coming through.</p>

<p>Sherpa has two projects, <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Amargo</a>, and <a href="https://www.apartments.com.au/new-apartments/flourish-ovana-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Ovana</a>, across the road from each other on Sixth Avenue, while&nbsp;</p>

<p>On the eastern side of the Gold Coast Highway, DJ Fisher and wife Chloe launched <a href="https://www.urban.com.au/new-apartments/pescado-palm-beach-228-230-jefferson-lane-palm-beach-qld-4221">Pescado</a>, to much fanfare. Gordon Corp is also soon to release its newest development, <a href="https://www.apartments.com.au/new-apartments/elle-on-jefferson-62-64-jefferson-lane-palm-beach-qld-4221">Elle on Jefferson</a>. BPG Developments is also planning a <a href="https://www.apartments.com.au/news/qld/first-look-bpg-developments-returns-to-palm-beach-new-apartment-market">new project on Jefferson Lane</a>.</p>


First Look: Chippendale plots new Palm Beach apartment development after completing EVA Tenth Avenue

<p>Frankston City Council has approved planning application for Pace Development Group's $91 million development at the cinematic location of 438-444 Nepean Highway Frankston.</p>

<p>The former home of Frankston Cinemas will be transformed into a 14 storey mixed-use building with views of the bay.</p>

<p>Pace’s approved plans include 144 apartments, one shop, two hospitality spaces, a wellness centre, gym, plus 202 car parking spaces across three basement levels accessed from Nepean Highway. Works are due to commence early 2026 for completion in early 2030. The site has been derelict for over a decade, following the closure of the Frankston Cinema in March 2014.</p>

<p>There are currently seven approved private sector mixed-use developments in Frankston’s city centre. Urban DC’s Harbour Frankston commenced construction in May 2025, after their first project, Horizon Frankston, broke records as Victoria’s fastest selling development back in 2023/24.</p>

<p>Pre-sales on both developments identify enormous local demand for a diversity of housing including the premium market, and more options for downsizers.</p>

<p>Frankston City Mayor Kris Bolam JP says the transformation to the urban beautification, local economy, vibrancy and overall reputation from these award-winning developers and architects is going to be "insurmountable."</p>

<p>"When you look at the current list of approved and recently completed projects, Frankston City has a $506 million price tag of private development! Not to mention the additional 770 residential dwellings that will contribute to our housing targets,"&nbsp;Bolam says.</p>

<p>"Every visitor daring to pass through Frankston will have a changed perception of our City, every investor will understand the sheer magnitude of opportunity, every business will realise the potential, and every resident will proudly know that Frankston City is experiencing the most exciting trajectory in decades. There is no doubt that the next evolution of Frankston City will exceed everyone’s wildest expectations.”</p>

<p>Pace Development Group’s original proposal was not supported by Council in April 2023 and ultimately rejected by the Victorian Civil and Administrative Tribunal&nbsp;(VCAT) in July 2024. However once the Victorian Planning Minister had approved implementation of Council’s Frankston Metropolitan Activity Centre (FMAC) Structure Plan into the Frankston Planning Scheme in April 2025, Pace was able to work with Council to satisfactorily address any concerns and align plans accordingly.</p>

<p>Shane Wilkinson, Managing Director of Pace Development Group, said the permit approval was incredibly exciting both for the project at 438-444 Nepean Highway and for Frankston's broader transformation.</p>

<p>"Frankston is on the cusp of major change thanks to the forward-thinking vision of the Frankston City Council," Wilkinson says.</p>

<p>"With the Council's valued support, Pace is proud to be playing a leading role in helping to shape the transformation of Frankston by delivering new homes, jobs and retail opportunities for the Frankston community."</p>

<p>Mayor Bolam added that the Council’s newly adopted FMAC Structure Plan is giving greater confidence to investors that Frankston City is a proven investment hot spot with an optimal strategic planning framework for success.</p>

<p>"The final successful application from Pace is an impressive reflection of our community’s expectations and a great alignment with our Structure Plan. This is yet another development that will help guide Frankston City’s ongoing transformation.”</p>

<p>The FMAC Structure Plan, which provides critical clear direction on a number of criteria including land use, building design, housing and accommodation, is just one of several initiatives designed by Council to encourage, guide and support development applications. Council’s 2025-2026 Annual Budget includes a new differential rate to encourage the development of vacant and land-banked properties in Frankston’s city centre.</p>

<p>Vacant properties within the Frankston Metropolitan Activity Centre and along the Nepean Highway now attract a differential rate three times higher than the general rate, a measure designed to&nbsp;prevent land-banking and drive much needed investment into housing and commercial projects.</p>

<p>Council is also developing a streamlined application assessment timeframe for major developments that recognises the need for faster processing and review timeframes for larger projects, whilst still maintaining robust assessment standards.</p>


Pace Development Group greenlit for 144 apartments in booming Frankston

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>
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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>
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Kahlbetzers' sell three NSW farms to overseas buyers

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<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>
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j.ballantyne1990-6AQqhLzZaK

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

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<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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