Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Foreign Buyers

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EXPERT OBSERVER
The spectre of Australia’s vacancy tax is about to become real for Chinese residential property owners, with penalties of up to $52,500 looming for those who miss the deadline. 
One year after the Federal Government introduced vacancy tax rules, the first returns are starting to become due – and up to 15,000 foreign investors will be expected to provide evidence as to whether their property sat vacant in the last year.
Foreign owners of Australian residential property face a minimum vacancy tax of $5,200, and even occupied properties could incur a $52,500 penalty if the owner fails to meet the deadline to lodge a return declaring occupancy of their assets with the Australian Taxation Office (ATO).
Further, if they fail to keep the necessary records to prove occupation, they could be hit with an additional penalty of $52,500. And even then, the owner would still be liable to pay the vacancy fee. For a property worth upwards of $4 million, that could equate to combined penalties and fees of more than $150,000 —even if the property has been occupied throughout.
The annual vacancy tax rules are the latest in a series of imposts on foreign buyers, designed to reduce the impact of foreign ownership on housing affordability, particularly in the core property markets of Sydney and Melbourne.
While the ‘ghost tax’ is intended as a financial incentive for foreign owners to make their dwelling available for rent and increase available housing in Australia, it raises the question of whether Chinese buyers might be scared away by the long-term implication of the new rules.
Foreign owners must lodge a vacancy tax return every year, keep records for at least five years after selling, keep evidence regarding who is using their property, and manage the risk of significant financial penalties if they fail to do so.
The immediate challenge facing foreign owners who have bought a residential property since May 2017 is identifying when they will need to submit their vacancy review, and how they will go about proving whether the property was vacant or not.
While the burden of this new tax on Chinese buyers is hauntingly clear, the impact on foreign sales in the Australian residential market is not.
Chinese buyers remain Australia’s biggest investors in real estate but according to statistics published in the Foreign Investment Review Board’s (FIRB) 2016-17 Annual Report, the size of their investment more than halved from AUD$31.5 billion in 2015-16 to AUD$15.2 billion in 2016-17.
Overall FIRB real estate approvals plunged from 40,149 in 2015-16, to 13,198 last year. But there have been a number of factors that may have contributed to this reduction, including the introduction of FIRB application fees, tighter Chinese capital controls and weaker Australian property market conditions.
For Chinese buyers, the residential property market continues to become more hostile in Australia and while it hasn’t yet reached New Zealand levels - where foreign buyers have been banned altogether - the latest changes are likely to have a chilling effect for many looking to purchase property.
Denise Honey is a partner at tax consulting firm Pitcher Partners.
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jrobinson-rf4aSBido9

The potential impact of Australia's new vacancy tax rules on foreign ownership

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EXPERT OBSERVER
They say, “money makes the world go ‘round” and although it may seem crass and crude, it’s quite true. Take a drive through any of WA’s industrial estates – Henderson, Kewdale, Malaga, Wangara -and you’ll see the wheels of commerce turning. Look closer and you’ll see the workers that work hard all day to give precious economic security to their families.
In Australia’s biggest industry, property (bigger than mining and manufacturing combined), you’ll see people engaged in materials supply. Factories and warehouses producing tiles, beams, trusses, cabinetry and furnishings. Logistics workers get these components to site for construction which requires skilled plumbers, electricians, plasterers and a team of supervisory and administrative staff. Once a property is complete, more workers are needed, like accountants, lawyers, real-estate and leasing agents.
Every single one of these workers spends money in WA shops, buys food from our supermarkets and restaurants and pays for their kids’ education. Money indeed keeps WA moving.
For WA to grow and compete with the rest of the world we need more than just our own money circulating.
Foreign investment and exports are key factors in our success. Many of our West Australian jobs depend on an external injection of money, and the property industry is no different.
The Upper House is due to debate the Labor Government’s proposed foreign owner duty surcharge very soon – a proposed 7% surcharge on foreign purchasers of residential property in WA.
This tax is not just for rich, overseas investors, it’s for regular migrant mums and dads who want to build a home and a life in WA. Just like the many migrants from all over the world that have come to WA since its foundation and have made Perth the great City it is today.
An additional 7% impost will deter these migrants from choosing Perth. The greatest number of Asian migrants are from Singapore (China is in fifth position). With kids studying at Uni, they could just as easily choose another Australian or international city to settle.
We don’t have the issues of Sydney or Melbourne where the surcharge originated as a way to dampen demand. Our tentatively recovering property market needs support, especially in an environment of slowing demand due to tightening bank finance. 
Understandably, the McGowan Government is looking for new sources of revenue for budget repair. But with Building Approvals currently tracking at –19.4% [Source: ABS/Property Council July 2018] the timing is terrible. Also, key data indicators point to little revenue being raised in reality.
The WA budget has forecast $123million over 3 ½ years yet all industry bodies including the Property Council, REIWA and the UDIA warn that the number of transactions will fall. In fact, that’s exactly what’s happened in South Australia.
The SA budget was released last week and it demonstrates exactly what could happen if this surcharge were introduced here. The SA Government have reduced forecast tax receipts by 50%, stating “Conveyance duty forecasts also incorporate downward revisions to the Foreign Owner Surcharge in all years reflecting lower than expected collection in 2017-18 and projected lower demand from foreign buyers from 2018-19 compared to original estimates.”
Simply put, fewer property transactions equates directly to fewer jobs. This affects all workers that help make money move around the WA economy.
The Property Council calls on the Members of the Upper House to vote against this tax – for now at least. It may be needed one day in the future but now is not the time to risk West Australian jobs for little gain.
Sandra Brewer is the Executive Director of the Property Council of Australia WA
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j.ballantyne1990-6AQqhLzZaK

Charging foreign owners extra for property will cost WA jobs: Sandra Brewer

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EXPERT OBSERVER
Prospective home buyers beware, Australian real estate prices are likely to escalate further now the New Zealand government has moved to tighten up on foreign ownership.
Australia needs urgently, to follow New Zealand’s example and crack down on foreign ownership or even more Australians will miss out on the chance to own their own home.
The pressure on Australian property prices is likely to increase substantially with New Zealand tightening its foreign investment rules and overseas buyers forced to look elsewhere to invest.
The New Zealand Government has the courage to tackle the issue of housing affordability head on but what about Australia?
You don’t have to be a rocket scientist to work out where these foreign buyers will divert their attention and buying power now that the New Zealand Government has passed new legislation to address this growing problem.
New laws were just passed in New Zealand Parliament this week banning foreigners from buying most types of property after a foreign spending spree has seen prices pushed up and local buyers pushed out.
According to the latest figures from the Australian Tax Office's Agricultural Land Register 13.6 per cent of all Australian agricultural land is foreign owned with the UK and China the largest owners.
Sadly they don’t know how much non-agricultural land is in foreign hands.
It’s important to remember that China alone has more decamillionaires than Australia has tax payers.
The New Zealand Government has clearly recognised the very real threat foreign ownership poses to housing affordability with rates of homelessness in the country among the highest in the developed world.
In contrast, the Australian Government seems to keep fiddling around at the edges rather than addressing the problem head on.
Much of the current generation have already been priced out of the market due to the high number of foreign buyers outbidding Australian citizens in particular over the past decade and this will only get worse unless significant policy changes are implemented.
Australia’s relatively strong economy and consistent capital growth in its major cities over many decades is part of the attraction to foreign buyers and will continue to drive foreign ownership of prime Australian land, both regionally and in the cities, pushing prices even higher.
It is obvious that non-residents eager to buy Australian real estate will do so if you make it easy for them because they see Australia as a stable economy and a safe place to store their money
Patrick Bright is the EPS Property Search director and author of The Insider’s Guide to Buying Real Estate
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pbright-aNtgvRfvJN

Australia needs to follow New Zealand's lead and act now on foreign ownership: Patrick Bright

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The Santa Barbara, United States based former 1956 Olympian Jon Henricks - who was 100 metre freestyle swimming world record holder - has sold his Balmoral slopes house after 48 years for about $5.2 million.
The dual Melbourne Olympic gold medallist was recently outspoken about how the state government’s recently introduced land tax surcharge for foreigners forced him to list the <a href="https://www.realestate.com.au/sold/property-house-nsw-mosman-128255974" target="_blank">Mosman home</a> he and his American wife Bonnie purchased in 1969.
The non-resident land tax rate was raised this year from 0.75% to 2%, with the changes meaning the couple would have to pay up to $60,000 a year.
Following the hike, Henricks listed through McGrath’s Michael Coombs with a $5 million to $5.5 million guide ahead of Saturday’s scheduled auction.
The Plunkett Road home sold inside the guide pre-auction on Thursday.
“Little by little the land tax has grown and up until to last year we were able to keep the home afloat with money from renting it out when we’re not around,” he said.
“This is absolutely devastating to deal with, there has been so many memories at the home and it has been good to us, it is all very bittersweet and devastating for us,” Henricks said.
The home has been the Henricks Australian home for nearly 50 years.
This article first appeared in The Sunday Telegraph.
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Olympic gold medal winner and world record holder Jon Henricks sells Mosman home

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The body of evidence against the foreign investor tax increase expected in next week’s State Budget continues to grow, according to Queensland’s property industry. 
New research from the AEC Group, commissioned by the Property Council, has estimated that the decline in foreign investment in Queensland since the Government introduced an additional foreign investment tax in 2016, has equated to a decrease in Gross State Product of between $2.4 billion and $3.9 billion.  
The analysis indicates that the revenue expected to have been collected through the foreign investor tax equated to less than 1% of the overseas economic contribution Queensland lost between 2015-16 and 2016-17.
“It is clear that reduced foreign investor interest in Queensland has cost the state far more than the revenue raised through this foreign investor tax,” Property Council Queensland Executive Director, Chris Mountford, said.
“Regrettably we are still seeing the Government pursue short-sighted tax increases without adequately considering the long term consequences.”
“We certainly acknowledge that the State Government’s tax increase is not the only factor that has reduced the flow of foreign investment to Queensland. But it has played a big part, and it is a factor that is entirely in the control of the State Government.”
“The data shows the State Government has kicked a significant fiscal and economic ‘own goal’," Mountford said.
The State  Government intends to increase the stamp duty surcharge on foreign buyers of residential property from 3% to 7% of the purchase price from 1 July 2018.
 
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Foreigners' property tax is Queensland Government's own goal 

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GUEST OBSERVATION
You may know that the suburb of Barangaroo is very popular with offshore buyers. Australian expats living overseas and foreign buyers from other countries — especially China — love this little corner of Sydney.
Why do they love Barangaroo so much, and what does it mean for you? 
James Pratt knows the suburb as well as any auctioneer. His firm, JPA Group, is located in one of the area’s new commercial towers and he has worked in the area from the opening.
“It seems like every time we have an auction booked in Barangaroo, the property sells prior,” he told me.
“Barangaroo is an excellent market for sellers, because you’re not limited to one kind of buyer. The buyer urgency goes all around the world. You’ve got both occupiers and investors. Few areas of Sydney have that kind of wide appeal.”
Jane Zhao, Sales Director and Principal of Mango Real Estate, recently set a record price for a two-bedroom apartment in Barangaroo.
The apartment is on a low floor and came with a parking space. Both the vendor and the buyer are owner occupants from mainland China.
Zhao said, “This home sold for a record price of $3.5 million in just one week. The buyers wanted to take occupancy quickly, so they didn’t care about historical transaction prices. They valued speed.“
“The owner and buyer had very similar tastes,” said Zhao. “They both loved this apartment because of the low-floor water views, which are very hard to find anywhere else in Sydney.”
Zhao believes Chinese buyers are the market to go to with Barangaroo listings. 
“I used Juwai.com to penetrate the Chinese market. They have cash. Everything is cash. They don’t need loans. I have many more buyers who want to purchase in Barangaroo, but there just isn’t enough inventory.
Other agents are also selling Barangaroo apartments at markups. Matthew Mifsud, a Sales Agent with Raine &amp; Horne City Living Pyrmont, has closed several transactions for prices significantly above the most recent prior sales price.
“A three-bedroom penthouse apartment in 17 Barangaroo Avenue was purchased off-the plan for $3.995 million and just resold for $5.5 million.
“A two-bedroom apartment I sold at 21 Barangaroo Avenue sold for $3.0 million in February 2018, after being purchased off-the plan for $1.875 million.”
Mifsud also sold a one-bedroom apartment at 25 Barangaroo Avenue for a 15% gain after just 13 months.
Barangaroo is even attracting Chinese buyers from other parts of Sydney, including Chatswood.
Joanne  Dai, a former investment banker who is Sales Executive at Century 21 City Quarter, has helped Chinese buyers move from Chatswood to Barangaroo.
“My client told me she loves Chatswood because of the Chinese influence there,” Dai said.
“But in Barangaroo she wakes up every morning with an amazing view of the Sydney Harbour. It reminds her why she chose to live in this country.”
“Barangaroo is expensive, but it offers a rare opportunity to own an iconic property along the Sydney Harbour. The last time we had such an opportunity was in 1998, when the Bennelong apartments were offered to the public. That was 20 years ago. Who knows when the next opportunity is going to be?”
Auctioneer Pratt noted that, “Barangaroo sprinted to about 15% capital gains in 2017, much better performance than in most of the rest of the city.” The average sales price in Barangaroo is $2.9m, 78% higher than in nearby Pyrmont.
According to Mifsud, Barangaroo apartments are well proportioned, with a typical two-bedroom having about 100 square meters of internal space. 
“That’s 20 to 25% better than in Lendlease’s Haymarket development, Darling Square,” he said.
“Some of the two-bedrooms in Barangarooo actually have two car spots,” Mifsud said, “which is almost unheard of.”
The huge demand for Barangaroo homes is ironic, because when promotion began there, more than one Chinese buyer told our team that they were unsure about the location. Now, if LendLease could magically produce another apartment building in Barangaroo, it would fill up with happy buyers in just a few weeks.
The marketing material from one of the buildings says it best: “Sydney is now the place everyone wants to call home,” and Barangaroo is the suburb where they want to live.
Carrie Law is the CEO and director at Juwai.com.
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Why rich Chinese buyers like Barangaroo: Juwai's Carrie Law

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Foreigners buying WA real estate will be hit with a 7 per cent surcharge on the purchase price as the McGowan Government moved in last week's budget to almost double the tax.
Targeting overseas buyers, the State Budget included an increased rate from the 4 per cent surcharge which was announced in last year’s Budget.
The new rate of 7 per cent will be applied to foreign property buyers from January 1 next year, bring WA in line with other states which currently levy their surcharges at 7 per cent or 8 per cent..
It hopes to raise about $123 million between the 2018-19 and 2021-22 financial years.
On handing down the Budget, Treasurer Ben Wyatt noted the higher surcharge is not a new tax because it was a policy commitment made during the election campaign last year.
“Increasing the foreign buyers surcharge to 7 per cent will bring WA in line with other States, and provide the Government with additional revenue to help the State’s financial position,” Mr Wyatt said.
Last year the Government believed the charge to foreign buyers would bring revenue of about $21 million in its first year.
The charge will apply on the dutiable value of residential property purchased by foreigners and it will also capture corporations and trusts.
It will be applied on top of standard stamp duty payments.
NSW charges foreign buyers an 8 per cent surcharge, Victoria and South Australia charge 7 per cent, and Queensland 3 per cent.
The West Australian government is counting on the lithium boom to help it manage record state debt.
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Western Australia to raise tax on foreigners buying property

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Figures compiled by realestate.com.au show that searches for Australian property by Chinese-based property seekers fell 15 per cent nationally last year.
Sydney searches were down more than 30 per cent and Melbourne down over 10 per cent.
"The biggest drops were in the last quarter of 2017," REA Group chief economist Nerida Conisbee told Fairfax Media.
"I think a lot has to do with taxes introduced last year, sentiment towards Australian property in general and perhaps a slowdown in the construction cycle meaning less to buy.
"Chinese capital controls are perhaps also making an impact – fewer Chinese developers may be impacting buyers." 
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Chinese property searches for Sydney property down 30 percent on realestate.com.au

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The veteran property developer Harry Triguboff said many of his Chinese buyers "can't settle" on their off the plan apartment purchases.
"And everyone thought that the Australian buyer would come in when the prices started coming down – they haven't – I knew they wouldn't."
"It's not bad, it's very bad," developer Harry Triguboff said in response to government taxes and credit restrictions on foreign buyer's residential property acquisitions.
A sharp drop in foreign buyers was detailed in the latest ANZ/Property Council of Australia survey of more than 1700 property professionals from across the industry.
"When we start saying that stamp duty for foreign buyers should be 12 per cent instead of 4 per cent, that is called stupid," Triguboff told The Australian Financial Review.
Triguboff said foreign buyer demand started to soften more than a year ago, with prices now going "lower and lower".
"Many of the Chinese can't settle. So now we have to resell them – there is another problem."
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Last May Harry Triguboff, Australia’s biggest apartment developer, noted he was financing about $200 million mostly Chinese buyers of his apartments as China imposed tougher currency controls to get money out of the country. </div>
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<div class="related-quotes section">The ANZ/PCA survey reveals that over the past three months, total residential property sales to foreigners dropped in every state barring South Australia.</div>
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Foreign investment – states and territories and national Source: ANZ-Property Council 
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Local buyers are not buying apartments forfeited by Chinese buyers: Harry Triguboff

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We are often asked about the rules around foreign investment and the impact that such investors have on the Australian housing market. While concrete data are hard to come by, we are able to combine existing data with informed assumptions to reveal some useful insights.
We build on recent work by Australia’s Reserve Bank (RBA) to estimate that foreign investors purchased between 35,000 and 60,000 dwellings in Australia in 2015-16. Foreign buyers seem to make up only a small share of total housing turnover for the year (7–13%), although the impact is more significant as a share of newly- constructed dwellings (15–25%) and in some states.
Using Foreign Investment Review Board (FIRB) data back to 1995-96, we estimate that foreigners own between 2.5% and 4% of Australia’s housing stock, plus anything purchased before that year. The size of this range reflects uncertainty about the extent to which foreign buyer approvals convert to actual purchases.
The sizeable foreign-buyer share of newly-constructed housing implies that foreign demand has been an important contributor to Australia’s recent construction boom. But the relatively lower share of total market activity suggests that foreign buyers have not been the primary driver of the price growth in recent years. That is not to say foreign buying has had no impact on prices.
The estimated 2.5–4% foreign ownership of Australia’s housing stock is significant, especially considering that the current rate of growth is much stronger than in the past. It is also not large enough for us to be particularly concerned about a foreign exodus from the Australian housing market.
We note that Revenue New South Wales has several times this year released data on the number and value of foreign purchasers that have been subjected to stamp duty surcharges. It would be helpful if other state governments released their suite of data on foreign buyers, which would assist in more concrete analysis around the impact of foreigners on Australia’s housing market.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/foreign_buyers1.jpg" target="_blank">to enlarge. </a>
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WHAT DO WE KNOW?
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In terms of the FIRB process, the key details are:
- Foreigners require FIRB approval to purchase new dwellings or vacant residential land. The vast majority of applications for new dwellings are approved without conditions. Applications to purchase vacant land are subject to construction being completed within four years, to prevent land banking.
- Contrary to relatively popular belief, foreigners can obtain approval to purchase existing dwellings. These applications are generally only approved subject to the purchaser increasing the stock of housing. For example, a knock down and rebuild where one existing dwelling is replaced with two or more townhouses or units.
- Temporary residents (such as students or people on working visas) are also required to obtain FIRB approval to purchase an existing dwelling. These purchasers are not permitted to lease out the property and are required to sell the property once they leave Australia.
Because all foreign buyers require this approval to purchase Australian property, the FIRB have data on the value and number of approvals granted. Note however, that this does not give us the number of approvals that were actioned.
The FIRB data tell us that in 2015-16, 40,100 property purchases by foreign buyers were approved, valued at AUD72.4bn. Each FIRB approval can be for more than one property, so the value figure is particularly important. Foreign purchases have risen sharply in recent years, led by Chinese purchasers; with the value of approvals granted in 2015-16 three and a half times greater than just five years ago.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/Foreign_buyers2.jpg" target="_blank">to enlarge.</a>
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QUANTIFYING THE IMPACT
The FIRB data tells us about approvals, not actual purchases. So, to calculate actual foreign buying, we need to make some assumptions about the rate at which approvals translate into purchases.
In doing so we need to be mindful that a fee for approvals was introduced in December 2015. This means that for half of 2015-16 and in all subsequent years, the ‘conversion rate’ from approvals to purchases is likely to be much higher, because potential buyers are unlikely to incur the application fee unless they are highly committed.
The FIRB approved $72.4bn of sales to foreign purchasers in 2015-16. To convert this into the number of transactions, we lean on recent estimates from the RBA, which noted that foreign buyers are purchasing around 10-15% of all new housing and around 25% of new apartments.
1. To line up our analysis with the RBA, we assume that 30–50% of approvals result in a property purchase.
2. If foreigners are purchasing around 25% of new apartments, this suggests around 80% of foreign purchases are apartments and the remaining 20% are houses. By applying this ratio to CoreLogic data on house and apartment/unit prices, we derive an average price of foreign purchases of $620,000 nationwide for 2015-16.
These conversion rates imply that foreign purchasers bought AUD22–35bn of Australian property in 2015-16. At the median price described above, this translates to the purchase of 35,000–60,000 dwellings nationwide.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/Foreign_buyers_3.jpg" target="_blank">to enlarge.</a>
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That number can be broken down further to assess how many of these purchases were for new dwellings. We estimate that foreign buyers purchased 30,000–50,000 new dwellings in 2015-16, representing 15–25% of Australia’s new builds that year. In flow terms, therefore, the impact of foreign buyers on the new housing segment could be sizeable.
On our estimates, most of this foreign activity in new housing in 2015-16 seems to have been in Victoria. We estimate that foreigners purchased 13,000–20,000 new dwellings in Victoria, representing 25–35% of total new builds in the year. The market share seems to be higher in Queensland (25–45% of new dwellings) and lower in New South Wales (15–20%).
However, the impact of foreign buyers is less significant when we compare the level of purchasing against Australia’s total housing turnover.
In 2015-16, 465,000 dwellings were sold, meaning that foreign purchases of 35,000–60,000 dwellings accounted for only 7–13% of the market. Again, foreigners seem to be most active in Victoria (10–20% of sales) and Queensland (10– 15%), followed by New South Wales (5–10%).
The analysis can be extended back to the commencement of the FIRB data in 1995-96. Over the past 21 years (again assuming that 30–50% of FIRB approvals translate into purchases, and that foreigners have been buying 80% units and 20% houses), we find that foreign buyers have purchased an estimated 250,000–450,000 dwellings in Australia. As of the 2016 Census, Australia’s total stock of housing was 9.8 million dwellings. This means that foreigners could own approximately 2.5–4% of Australia’s housing stock.
This estimate is imperfect. It does not include properties bought before 1995-96, nor the subsequent sale of any properties previously held by foreign owners. Further, it is sensitive to the assumed 30-50% conversion rate from approvals to purchases, and the impact that the mix of houses and apartments would have on the average purchase price.
Assuming our estimate of 30-50% of purchases to approvals is near the mark, this yields a useful frame of reference when assessing the impact of foreign buyers of the Australian market. At 15–25% of new builds in 2015-16, foreign demand is clearly one of the drivers of the strength in our dwelling investment profile. If this demand were to dry up suddenly, Australia’s construction pipeline would likely be notably weaker than currently expected.
The impact of foreign demand on prices is less clear. The purchase of 7–13% of total sales each year is not as significant as the share of new construction. So the impact on overall prices is likely to be less than the impact on construction.
Another way of looking at this is in terms of the stock of housing, rather than the flow. As described above, we estimate that foreign owners hold 2.5–4% of Australia’s housing stock. Around 5% of Australia’s housing stock is bought and sold each year. This means that only a large shock, causing a high share of foreign owners to sell their Australian property, would be significant enough to drive sale prices lower.
WHAT OTHER ANALYSIS IS THERE?
The RBA recently noted that, “nationally, purchases by foreign buyers are equivalent to around 10–15 per cent of new construction, or about 5 per cent of total housing sales.” The RBA also suggests that the foreign buyer share of new construction purchases is higher for apartments, “but it is still only perhaps around one quarter of newly built apartments”. As described above, we have used these figures as a starting point for our analysis.
Revenue New South Wales has released details of purchases that incurred the foreign buyer stamp duty surcharge in 2016-17. The data show that just under 4,000 purchases incurred the stamp duty, generating AUD185m revenue for the state.
The first few months of data appear incomplete, so ignoring these and annualising the data suggest that around 5,000 properties are bought by foreign investors each year, at present. This is 4% of total turnover and 10% of new properties if no existing properties were purchased, which is consistent with our estimate of foreign buyer activity in New South Wales. But because stamp duty has only recently been introduced in New South Wales, we do not have a longer time series to investigate.
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Similar estimates are also found in the ANZ-Property Council survey. Survey respondents from the residential property sector (who are primarily developers and therefore focussed on newly-constructed dwellings) reported in the December quarter that 18% of property sales nationwide were to foreign buyers. New South Wales and Victoria topped the list at 22%, followed by Queensland with 15%. 
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While the nationwide number in this survey is consistent with our estimates above, the estimate of foreign purchases of new builds in Queensland (at 15%) is much lower than our estimates (of 25–45%). 
In contrast, the estimates for New South Wales and Victoria are broadly in line. As such, we think the portion of foreign purchases in Queensland is likely to sit at the lower end of our estimated range. 
Treasury have also released work into the impact of foreign investment on dwelling prices. They found that foreign demand is responsible for only a small share of the strong property price growth between July 2010 and March 2015. Their modelling found that foreign buyers have pushed dwelling prices AUD80–122 higher per quarter, which is “very small when compared with the average quarterly increase in Sydney and Melbourne property prices over the period studied of around $12,800.” 
Keeping in mind the data imperfections and subsequent variety of estimates, the research tends to suggest that while the presence of foreign buyers has been rising strongly in recent years, they are likely to still be a small share of our total housing market. 
It is our view that foreign buyers have supported dwelling investment through the current cycle, but have not been the main cause of the rapid price growth and are unlikely to be the cause of a sharp price correction. 
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/Foreign_buyers4.jpg" target="_blank">to enlarge.</a>
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