Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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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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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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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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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