The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

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Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

Joel Robinson

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

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The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

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Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

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The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

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The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

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

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

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

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

Foreign Buyers

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The Urban Taskforce has said the federal government's review of foreign investment in residential real estate must be blind to the nationality of the foreign investor.
"While this review is said to consider foreign investment in residential real estate, we fear that the review will focus on Chinese investment. 
"Focusing on a particular country’s investment is counterproductive and dare we say, xenophobic," Urban Taskforce Australia chief, Chris Johnson warned.
He said the Urban Taskforce urges the standing committee to consider foreign investment generally.
"It must resist pressure from those who would have us believe that it is simply Chinese investment in real estate that is driving increases in the cost of housing.
"Media coverage on this matter has been one- sided, suggesting that there is a flood of unregulated money from China causing real estate prices, especially in Sydney, to soar. 
"The claims are that foreign investment, in residential real estate, particularly from China is on the increase," he said.
Their submission said foreign investment in residential real estate was on the decline.
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"The evidence provided in the recent Foreign Investment Review Board Annual Report 2012-13 does not support claims of ever increasing foreign investment.
"For instance, total foreign investment in residential property in Australia has actually been falling from a high of $20.92 billion in 2010-11 to $19.7 billion in 2011-12 to $17.2 billion in 2012-131.
"Reports based on the Foreign Investment Board and Australian Bureau of Statistics data suggest that the Chinese contribution of the total foreign investment in residential real estate to be approximately $5 billion per annum.
"However this is in a market that saw $250 billion in residential property being sold.
"While 2% of the market is a worthy contribution to new housing, it is not considered to be at a level to warrant the community concerns and intense media scrutiny of late.
"There is no doubt that residential property investment from China is the highest with Chinese investors purchasing $5.9 billion in all real estate, which includes commercial real estate.
"It should be noted that commercial real estate is almost twice that of foreign investment in residential real estate.
"Other countries invest in Australian real estate.
"Canada invested just under $5 billion in Australian real estate and the Americans invested $4.4 billion.
"Based on these figures alone, the focus on Chinese investment is not warranted," Chris Johnson suggested.
"Notwithstanding any of the above, the overarching principle of Australia's foreign investment policy, as it applies to residential property, is that the investment should increase Australia's housing stock.
"We support such a policy and agree that it brings benefits to the local building industry and its suppliers.
"The data provided in the Foreign Investment Review Board Annual Report 2012-13 shows this. 
"In the 2010-11 reporting period only $3.77 billion of foreign investment went to existing housing while $12.54 billion went to new developments."
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Urban Taskforce warns against xenophobic review of Chinese investment by federal government

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An 863 square metre development site in Melbourne’s Southbank residential precinct has seen strong interest. The 47 City Road precinct, being sold through CBRE City Sales, has seen interest around the $9 million mark.
It is bordered by St Kilda Road and Southbank Boulevard, and currently holds a single-level office building, 12 onsite car spaces and two street frontages on Fawkner Street and City Road, which provides a revenue stream while plans and permit are organised for future development.
CBRE’s Josh Rutman, Mark Wizel and Ed Wright are marketing it through an International Public Expressions of Interest campaign that is expecting to see strong offshore interest. The campaign goes until June 12.
It is located near Crown Casino Complex, the Yarra River, and Southbank Theatre.
"Developers, especially those from Asia, are recognising Southbank is serviced by world class infrastructure and amenity, and is viewed by overseas apartment buyers as being a terrific alternative to buying an apartment in the Melbourne CBD,” said Rutman.
Recently, Singapore’s Aspial Corporation purchased a land holding on the corner of City Road and Southbank Boulevard, Australia 108, for $42.3 million. A total of more than $180 million has reportedly been spent in the past six months on Southbank sites – with the majority from offshore purchasers.
Wright noted that offshore buyers are interested in two elements primarily. The first – how many apartments can be built on the site. The second – what they can get for these apartments.
High density Southbank apartments often go for high prices, he said.
“With the recent explosion of Asian investment into Melbourne’s property market, we expect this property will be of particular interest to offshore investors looking to undertake a landmark residential development in Australia’s most liveable city.”
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Melbourne development site expecting strong foreign interest

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The Danish pension fund Pensionskassernes Administration (PKA) has secured a stake in $60 million worth of Queensland cattle stations.
The stake in around 480,000 hectares, from Blackall to Cunnamulla, is held through the SLM Australia Livestock Fund.
The fund raised $75 million from PKA in 2012 with SLM Partners director Tony Lovell telling the AFR that the SLM fund was still looking to expand.
The market value of the assets managed by PKA across the world was DKK 194 billion (A$38 billion).
The AFR noted SLM Partners kept a low profile as it aggregated its properties.
The Cunnamulla aggregation includes the 43,000ha Padua Park hub purchased for $10 million, sold in part by the Sunshine Coast engineer David Wimhurst. There was also the 49,000 hectare Willacora hub for $9.3 million; the 71,000 hectare Eureka Plains for $7.4 million; the 48,000 hectare Amenda at $11.8 million and the 79,000 hectare Garrawin for $4.3 million.
At Quilpie, SLM put together the 165,000 hectare Colac hub for $6.4 million.
At Blackall it secured the 25,000  hectare Listowel Downs for $11.2 million.
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Danish pension funds take Queensland cattle station stake

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Meriton Group has indicated its support of the current regulations surrounding foreign investment in real estate, but would like their liberalisation.
"Although offshore buyers represent only a small percentage of Australia’s overall sales, this market is an important factor in maintaining business confidence and giving developers the impetus and security to embark on new projects – directly increasing the supply of new housing" the Meriton founder Harry Triguboff advised the House of Representative inquiry into foreign ownership of residential property.
It was among the most diligent of submissions made to the committee which the Treasurer, Joe Hockey asked in March to report back by October. There were an <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/Economics/Foreign_investment_in_real_estate/Submissions" target="_blank">underwhelming 15 submissions</a> made on the supposed controversial issue which Liberal MP chairperson Kelly O’Dwyer has tried to make her high-profile cause.
"If Australia wishes to keep housing affordable and to keep developers building, it is imperative that we embrace foreign investment in real estate and the certainty it can bring to industry," the Meriton submission said.
"In light of Australia’s recent Free Trade Agreement with China, this review represents an opportunity for FIRB regulations to in fact be liberalised rather than further restricted."
Harry Triguboff said it was his belief that it was a range of other factors, such as excessive local government planning requirements and fees, that added to the cost of housing and which have seen first home buyers effectively pushed out of the market. 
"There are many possible solutions and alternatives to this problem which do not involve restricting the flow of foreign investment in Australian real estate. 
"The outcomes of this inquiry are of major significance to Meriton, as the nation’s largest apartment developer, and the housing market overall.
"In order to ensure consistent and affordable residential housing supply, it is important that Australia strengthen its ties with overseas markets that are not subject to the ups and downs of the domestic economy. 
"Foreign investment remains a welcome source of support for the local housing and construction industries and any changes to regulation would be keenly felt."
He hopes welcome to discuss this issue with the committee. 
Their submission noted Meriton is Australia’s largest apartment builder, constructing over 2,500 new apartments annually, and accounting respectively for 6.4% and 1.6% of annual dwelling commencements in NSW and nationally. 
Meriton provides employment for around 2,700 people across the building and services sectors. It employs either directly, or as sub-contractors, up to 2,000 people in the construction industry on around 15 active building sites in Sydney, Brisbane and the Gold Coast, and over 700 in the services and tourism sector, contributing significantly to the Australian economy.
Meriton’s forecast turnover for 2014 is some $2 billion. 
"Foreign investors contributed to around 13% of Meriton’s sales in the financial year 2012- 2013, and without securing this initial foreign investment, many of Meriton’s complexes may not have been developed," the submission said.
The submission said foreign investment in Australian residential real estate had often been the subject of political controversy. 
"In the late 1980s, concerns over Japanese investment, particularly in Queensland, led to the amendment of the foreign investment legislation and the establishment of regulatory arrangements which are essentially operating unchanged today," it said. 
Photo of Harry Triguboff courtesy of Wikipedia/Creative Commons.
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Meriton's Harry Triguboff says FIRB regulations should be liberalised, not further restricted

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Chinese international real estate website, Juwai.com, explained that Australian real estate agents earned an estimated $147.5 million in commissions on Chinese buyer transactions in the past financial year.
In fact, this figure could be even higher. Basing their statistics on the total transaction value, multiplied by the estimated average commission rate of 2.5%, it’s clear that the real commission earnings could be even higher. The total Chinese investment in Australian property jumped 149% over the recorded financial year, to $5.9 billion.
A Juwai spokesperson told Property Observer that they used a conservative commission rate to come up with this figure, and noted that as a site their model is not to take commissions themselves but to charge for listings and advertisements - similar to solely Australian online listing portals.
The agents seeing the biggest piece of the pie are those in Sydney, followed by Brisbane, Melbourne, the Gold Coast and Adelaide.
Interestingly, of Juwai’s popular countries for Chinese buyers the United States trumps Australia. Australia is then followed by the UK, Canada and Germany.
Key motivations of individual mainland Chinese investors:
<ul>
<li>Seeking yields and capital gains. 
</li>
<li>Obtaining educational opportunities for their children. 
</li>
<li>Internationally diversifying their investments. 
</li>
<li>Enjoying an attractive lifestyle and living overseas for business or emigration. Many wealthy Chinese have a primary residence in Beijing, and second homes in Australia, the US and the UK.</li>
</ul>
Source: Juwai.com
This comes as franchise groups are increasingly signing up with online portals. Most recently, Raine &amp; Horne have announced a partnership with Juwai, with the Chinese website acting as an exclusive Chinese-language marketing partner.
Overseas, similar partnerships are also being created.
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Agents earned $147.5 million commissions from Chinese buyers in past financial year: Juwai

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Local buyers and foreign buyers appear to be head-to-head in Melbourne’s development market, according to a JLL study, however they believe that locals are at a distinct advantage.
The study looked at buyer profiles of major development sites across Melbourne’s CBD, City Fringe, Docklands and St Kilda Road over the past 12 months. It found that 49% of the 39 properties sold from February 2013 to April 2014 were domestic buyer purchases.
When looking at the dollar value of $1 billion in transactions over the past 12 months, 51% came from domestic buyers, said JLL director, sales and investments, James Kaufman.
“Of the 39 major site sales JLL recorded, CBUS' purchase of 447 Collins Street for $91 million was the only land sale where the developer intended to undertake a commercial development,” he said.
“Generally foreign developers have a strong preference for sites that are offered for sale with the benefit of planning permits. Sites with permits make the assessment process significantly less complicated and remove uncertainty.”
He said that domestic developers have a “much deeper understanding” of the town planning process, providing them the advantage when bidding without a planning permit.
“This is evidenced with the sale of 181 Fitzroy Street, St Kilda (pictured above) and 85 Spring Street, Melbourne. During both campaigns, the marketing attracted interest from foreign buyers, however the planning risk put the local developers in the best position to secure the sites,” he said.
This was purchased by Grocon, with planning approval lodged for a 38-level, $300 million 370-apartment development at 85 Spring Street.
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​Melbourne development sites give locals the advantage

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Eling Forest Vineyard, the Southern Highlands of NSW boutique winery, has been sold.
Located just west of Sutton Forest village, the 73 hectare property has been bought by the Wang family for $5.8 million.
<a href="https://www.andrewhearn.com.au/listings/rural_sale-93411-sutton-forest/" target="_blank">It had been listed</a> by interests associated with Warwick Wainberg through Andrew Hearn at the Berrima based Andrew Hearn Real Estate.
The buyers were Wei Guo Wang, Wei Min Wang, Chen Yang Wang and Pei Hong Cao.
It last traded in 2005 at $600,000.
It highlights the Southern Highlands stature as one of Australia's most exciting new wine regions, though still not a patch on the Hunter Valley which has been attracting strong Chinese buying interest in recent years.
The Southern Highlands' first wine producer in recent times was Kim Mogine at Joadja in 1983. There were about 50 vineyards in the region by 2000 that spanned 145 hectares within Australia's newest wine region better known for its tulips.
Cool climate vineyards were first planted at Joadja Creek in the 1870s, supplying Sydney with table grapes.
Established in 1990, Eling Forest was the second modern winery to be established in the cool climate area, with its first wines produced in 1993. 
Its first vines were planted by Leslie Fritz, who was then 80, and came from a long line of winemakers in Hungary. The then 157 hectare holding had cost $1.9 million in 1989.
The grapes are handpicked and vines hand pruned in the traditional manner at the Hume Highway property, with the wine fermented in stainless steel vats, then aged in American and French oak barrels. 
<a href="https://www.elingforest.com.au/cafe-a-cellar-door/gallery" target="_blank">About 120,000 bottles are currently produced plus "Apple Thief" ciders.</a>
The cool climate vineyard produces white and red wine varieties and blends sold through is cellar door which is open seven days a week.
There is an 1840 colonial homestead - restored in 2005 during the ownership of Ron Fryer - and other living quarters that provides accommodation in picturesque gardens tendered to at one point by Clause Crowe. 
It comes with function centre that caters for up to 200.
The former boxer Fortunato "Lucky" Gattellari and his brother Frank briefly bought into Eling Forest Winery, initially securing a small stake around 2003. Their venture, which soon soured, <a href="https://articles.chicagotribune.com/2003-01-22/entertainment/0301220080_1_winemaking-wine-bottle-australian" target="_blank">attracted international media interest</a>.
Other major vineyards in the highlands include the Centennial Vineyards at Bowral, established by the co-founders of Cellarmasters, John Piven Large and his partner, Mark Dowling.
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Eling Forest, Sutton Forest vineyard sold to Chinese interests

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China-based estate agencies are selling Australian properties through a two-tiered pricing structure with inflated prices to China-based buyers, according to Michael Yang, the chief of GiFang.com, the largest Chinese language property site in Australia.
"Some agents sell at more inflated prices to China-based buyers," he noted.
"When developers promote house and land packages to buyers in China for areas such as Point Cook, Sanctuary Lakes and Tarneit, the land component of the package can sometimes have a higher price in China. 
"They are “exclusive lots” for Chinese buyers that are only promoted in China," he noted in a blog published on the <a href="https://www.businessspectator.com.au/economy/china" target="_blank">China Spectator</a> website.
"It is believed that one in 10 China-based agents are involved in selling Australian properties according to a two-tiered pricing structure. 
"The misconduct of Chinese agents also contributes to the perception that Chinese buyers are willing to pay for above the market price."
"This is perhaps the biggest misconception of all," he added.
He said stories about Chinese buyers turning up at auctions with suitcases packed with cash and making an on-the-spot decision to buy the property without a proper inspection were not likely to be accurate.
"Very few of these stories are true or are at least exaggerated.
"In our survey conducted in China, 63% of buyers said they would ask a friend or relative based in Australia to inspect the property for them, and the remaining 37% believed it was a must for them to inspect the property personally before making the final decision."
Even if the property is an off-the-plan apartment, they will still travel to Australia to get a feel for the location and to conduct personal research.
He also refuted then widely held belief that Chinese buyers pay for their real estate purchases in Australia in cash and there is little need for them to borrow.
"This could not be further from the truth."
He said some 97% of Chinese buyers in Australia rely on mortgages, according to the survey of 283 buyers.
"The big four banks have all established offices in China in order to assist China-based buyers to purchase Australian properties using home loans.
"These banks are responsible for making 85% of all home loans of Chinese property buyers in Australia.
"Chinese buyers generally accept the idea of investing with "OPM" (other people's money) and love the fact that a minimal amount is required to own or control real estate in Australia."
He suggested Westpac was responsible for 70% of all home loans from China, according to the survey results as well as a banking source.
Michael Yang added the situation was different in China where property buyers are forced to use more cash to buy properties. 
"For example, Chinese banks will only lend up to 70% of the value of the home to borrowers for their first purchase and 30% for their second home. 
"Third purchases are usually not allowed."
The fourth misconception addressed in the blog was that Chinese buyers do not seek out rental yields by merely land banking.
"As Chinese investors become increasingly educated about the Australian market, rental yield becomes more and more important. 
"Gifang's surveys in China show that more than 90% consider rental yield an important aspect to their property purchase, with the acceptable rental yield at 5%.
He noted more than 72% of investors consider capital growth as more important than rental yield but all prefer to have a balance.
He did add that some Chinese investors would rather leave their residential property vacant for most of the year until they visit Australia and use their properties for personal enjoyment. 
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China-based estate agencies selling Australian properties through inflated two-tiered pricing schemes

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GUEST OBSERVATION
Our federal budget is due to be delivered on Tuesday 13 May, 2014 and we are being repeatedly told that there has to be significant cuts to expenditure. Our state budgets will be delivered soon after that date.
In essence it is time for governments to deliver something which is new and helpful to maintain and increase housing stock, but at the same time does not simply drive housing prices higher. This definitely rules out changes to negative gearing as its removal would simply reduce investor activity and available housing stock.
There are two outcomes in our housing markets that are needed:
1. Ensure there is an increase in Australian citizen investment in new housing stock; and
2. Increase the number of first home owners in the market.
The first, in my view, is a state issue
Most of us will have family or friends who have been trying to buy a home and failed because they have been out bid by a cashed-up foreign buyer. One has to ask whether foreign buyers should have equal rights as Australian citizens. I suspect not. That is not to say that foreign buyers are not necessary in our markets, rather they are simply investing in a low risk, very attractive country and for that benefit they should have to pay some type of premium.
Altering our land tax regime would enable us to charge this premium from foreign investors and potentially decrease their activity without necessarily decreasing supply of new stock. This can be done by increasing the land tax payable by non-Australian citizens who own property in our country and at the same time, decrease the rate of land tax charged on property owned by Australian citizens, with all property purchased in the future and currently held, being subjected to these changes. Obviously, the amount of these alterations will need to be modelled and the changes would need to be phased in.
The consequence is clear. Foreign investment activity would be marginally reduced (depending on the altered tax rate applicable to them) and the lower tax rates for Australian citizens should cause increased investment activity by this group. It should also mean that the first home owner may have a better chance of competing when buying.
The second, in my view, is a federal government matter
The first home owner has been forced out of the market simply as a consequence of rising house prices and the consequent level of income needed to support a home loan.
In essence we need to organise things so this group – and everyone buying a property to live in – has adequate cash flow to meet the high home loan repayments. This will particularly be the case when interest rates increase in the medium term.
A relatively simple change to the capital gains tax (CGT) legislation is required.
This change would allow home owners to claim interest deductions on their home loan repayments where they elect to be subject to normal capital gains tax on the profit they make on any future sale of the property. In essence they exchange the right to have their home exempt from capital gains tax in exchange for the right to immediately reduce their taxable income by the interest they are paying on their home loan.
Being brutally honest given the government’s current budget problems they should simply just phase in the removal of the capital gains tax exemption on the family home all together and automatically provide first home owners who buy a new home with the right to claim interest deductions. Politically this might be better for government than altering pension rights and health benefits etc.
Allowing buyers to elect to claim interest as a deduction would mean an improved annual cash flow which will help to make housing more affordable. What is the cash benefit? Well assume someone has a loan of $400,000 and has a tax rate of 22% then the annual benefit at current interest rates would be in the order of $5,000 per annum or roughly about $100 per week.
The impact of this proposal on borrowers as interest rates increase should also not be overlooked. That is, deductibility means that interest rate increases will not have as large a negative impact on our first home owner as they would otherwise. As interest rates increase their deductions increase and their tax liability is reduced. Hence as interest rates rise, defaults on home loans are likely to also be lower.
There needs to be some detailed modelling to work out a progressive phasing in and potentially define a percentage of the interest cost on the home loan that would be allowed to be deductible. Once this is done then a reasonably solid estimate of the cost to the federal budget could be identified.
From any logical perspective, a combination of subjecting all of our owner occupied housing to a form of capital gains tax and allowing our first home owners to access interest tax deductions, does have merit. And provided it is structured in a manner which does not drive housing prices higher, it will also make housing affordable for the next generation.
The negative which could be seen as a benefit by some, is that it would encourage home owners to limit their trading activity in their own home. That is, a home owner would potentially be less inclined to use their home as trading stock and instead use it as a mechanism for wealth generation by buying with the intent of selling following renovation.
In the short-term we are going to be asked to accept some difficult decisions and perhaps the above, implemented carefully by government could potentially soften the perceived blow.
John Edwards is consulting analyst for <a href="https://www.onthehouse.com.au/" target="_blank" rel="nofollow">Onthehouse.com.au</a> and founder of <a href="https://www.residex.com.au/" target="_blank" rel="nofollow">Residex</a>.
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jedwards-8kHM8GNY6d

Two brave budget decisions that would benefit tomorrow’s generation

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Just three days after the close of an expression of interest campaign, a Malaysian investor has swooped in on a whole top floor stratum titled office in Melbourne's South Yarra.
At $4.28 million, the sale is seen as one of the most significant Melbourne strata office transactions in recent years, equating a rate of $7,781 per square metre.
More than 60 enquiries were received through a marketing campaign steered by CBRE's Ed Wright, Tom Tuxworth and Mark Wizel.
The property has a total building area of 645 square metres, of which 366 square metres is available for immediate occupation. The balance - 279 square metres- is leased to the Bridge Consulting Group, generating a net income of $156,000 per annum.
The property at 9 Yarra st, South Yarra was sold with "value-add potential" with plans and permits to add an additional 16th level incorporating 591 square metres of building area.
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