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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The Abbott government gave the details of its crackdown on foreign investor property compliance on Saturday.
It is aimed at those who have illegally bought Australian real estate.
Investors will have until 30 November to come clean and sell their properties or face potential prosecution under the moratorium.
For those who have broken the rules, penalties will be tougher under the crackdown, including possible jail terms.
Under legislation to be introduced this year, penalties will be increased to $127,500 or three years' jail for individuals, and $637,500 for companies.
The government hopes the new Foreign Investment Review Board (FIRB) regime will be in place by 1 December.
Treasurer Joe Hockey announced a moratorium to encourage people who have made unlawful purchases.
"Those foreign investors have until 30 November to come forward and self identify," he said on Saturday. "They will be forced to sell their properties, but they will not be subject to criminal prosecution."
People who don't come forward would face the full force of the law.
The government has only ever found one case of unlawful purchase over the past decade, with the high profile purchase of Villa del Mare in Point Piper by a Chinese billionaire without the required paperwork.
Temporary residents can buy one dwelling to live in, on the condition they sell the property when it is no longer their residence.
Temporary and non-residents can buy an established property for redevelopment, if construction begins within two years with FIRB pemission.
Off the plan purchases are allowed.
As part of the crackdown, the federal government will transfer residential real estate functions to the Australian Taxation Office, which will use its data-matching systems to identify possible breaches.
Third parties – such as lawyers or real estate agents – who knowingly assist a foreign investor to breach the rules will also now be subject to penalties, including fines of $42,500 for individuals and $212,500 for companies.
A comprehensive land register is yet to emerge.
The Prime Minister insisted Australia was still "open for business" despite the crackdown.
"I really want to stress that this is a government which is pro-business and pro-investment," he said. "We are certainly pro-foreign investment, but it does have to be the right foreign investment."
He said he wants a real estate playing field that is "at least level" and if possible "slightly tilted towards the locals".
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jchancellor-FAypfDUnLy

FIRB illegals moratorium until 30 November: Joe Hockey

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Foreigners buying houses in Victoria will be be required to pay new taxes, in an audacious state budget scheme aimed at capitalising on statistics showing foreign demand for new properties in Victoria has leapt from about 5% in 2011 to more than 30% in 2014.
Copying the practice of many Asian countries, foreign nationals will pay a new tax equivalent to 3% of the purchase price of Victorian apartments and houses, estimated to raise $279 million over four years if there isn't a backlash with Asian buyers instead going to other capital cities in other states.
On a CoreLogic RP Data median Melbourne house price of $605,000, foreigners would pay an extra $18,150 in stamp duty and on a $470,000 median Mebourne apartment price $14,100.
An $800,000 apartment will pay an extra $24,000, in addition to about $43,000 in current stamp duty charges. It is not clear if foreign buyers will enjoy current off the plan stamp duty exemptions.
It is proposed foreign housing investors will also pay an extra 0.5% in land tax from 2016 on new and existing properties, raising $53.5 million over four years.
Permanent Australian residents and New Zealand citizens are set to be exempt from the new taxes, and in the case of joint owners, the surcharge will be applied to the foreign owner's share only.
Victorian State Treasurer Tim Pallas said it was unfair that overseas buyers did not contribute their fair share for services and infrastructure.
Treasurer Tim Pallas, who is delivering his first budget on Tuesday, said the surcharges were "modest" and would force foreigners to contribute to services and infrastructure.
"It is inherently unfair on Victorians for foreign purchasers to take the gains of owning property in Victoria - through the services and infrastructure that Victorians pay for over an extended period of time - without contributing their fair share," Pallas told Fairfax Media.
"Amenity in and around Melbourne is important and it is why people are so keen to live here. If you own a property in the area then you should contribute accordingly, and these modest charges go some way to redressing that balance."
The federal government currently solely regulates foreign investment in Australia through the largely ineffective Foreign Investment Review Board (FIRB).
The FIRB revealed this week that the value of foreign investment in new Australian homes tripled last financial year. 
China is the biggest foreign purchaser of Australian real estate, having spent $12.4 billion in 2013-14 - up from $5.9 billion in 2012-13.
Property commentator <a href="https://petewargent.blogspot.com.au/2015/05/whats-really-happening-with-foreign" target="_blank">Pete Wargent blogged </a>that Victoria (41%) and New South Wales (39%) accounted for 80% of foreign residential approvals by dollar value in 2014, with Queensland (11%) and Western Australia (5%) mopping up most of the remainder. South Australia accounted for just 0.4%. 
<img src="https://2.bp.blogspot.com/-Q3WEvkVtocA/VULsSYNiMRI/AAAAAAAAVAY/Fwq5cVfH4UE/s1600/FIRB5.jpg" width="640" height="278">
Source: Pete Wargent.
Most of this investment in residential real estate was approved for new dwellings (11,338 approvals), rather than for existing property (7,915), vacant land (3,150), redevelopment (534) or developer approvals (103).
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Shock new Victorian government taxes proposed for Asian home buyers by Daniel Andrews

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China is the biggest foreign purchaser of Australian real estate, spending $12.4 billion in 2013-14.
In 2012-13 China's investment was just $5.9 billion, a report from the Foreign Investment Review Board Report (FIRB) shows.
For the first time, China is the main source of foreign investment, pushing the United States into second place.
China's total investment last financial year was $27.7 billion, while the US were approved to invest $17.5 billion.
Canada is Australia's third largest foreign investor ($15.4 billion) followed by Malaysia ($7.2 billion).
In 2010 the United Kingdom was the second biggest foreign investor in Australia, but is now ranks 12th.
The foreign appetite for Australian homes has centred on new dwellings, with total spend on off the plan apartments up from $5.73 billion to $16.4 billion.
The foreign spend on existing homes jumped almost $2 billion to $7.17 billion last financial year.
The statistics did not give a breakdown of the residential investments by country.
But the FIRB did reveal the number and value of property transactions almost doubled from 11,668 transaction to 23,054 in 2013-14.
The value of proposed investment in residential real estate increased to $34.7 billion, up from $17.2 billion. 
Investment in newly developed homes was up 200% to $25.8 billion while investments in existing homes – that can only legally be bought by temporary residents in Australia – was up 32% to $7.17 billion, up almost $3 billion. 
Commercial real estate investment also increased from $34.8 billion to $39.9 billion.
Investments in real estate accounted for almost half China's total, with its $12.4 billion approved investment more than twice the amount of the Americans on real estate.
The FIRB figures tally approved investment rather than actual investment. While China has topped the US for annual approvals, the US, Great Britain and Japan still have greater accumulated investment in Australia than China.
The federal government is close to finalising proposed new fees for foreign investors buying Australian property which Treasurer Joe Hockey hopes will  "restore confidence" in the foreign investment system which had not prosecuted anyone for breaching the rules since 2006.
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Chinese now officially the  top FIRB spenders

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National Australia Bank has created a pretty good research document with its quarterly Residential Property Survey. It’s shed light on a number of important things, notably the true position with the level of first home buyer activity in Australia (much higher than the flawed ABS data indicates).
Unfortunately, and here’s this recurring problem that blights real estate analysis in this country, it has allowed economists to get involved in interpreting the data. Unsurprisingly, the outcome is a shemozzle.
NAB senior economist Robert De Iure – who really should stick to what economists do best, which is getting it wrong on the economy and interest rates – apparently thinks that because some foreign investors buy in similar price ranges to local first home buyers, the two groups are competing in the same space.
“The report contradicts the idea that foreign investors and first home buyers shop in different markets,” he says. Actually, it doesn’t – he misunderstands his own report.
His thought process goes like this: because most foreign buyers aren’t paying over $1 million, they are therefore out there competing with first home buyers. He must be spending a lot of time in Sydney.
For the most part, foreign investors are not competing with local first timers, and the NAB survey doesn’t show that they are.
Here’s what it does show: 70% of foreign investors buy property priced above half a million dollars. Instantly, that tells us most foreign buyers are not competing in the same space as first-time buyers.
The NAB survey also shows that foreign investors predominantly buy new homes, such as highrise inner city apartments. Foreign investors account for almost 16% of new dwelling sales in Australia.
Other research shows that, overwhelmingly, Australian first home buyers purchase existing homes.
Again, the two groups are not operating in the same space.
The NAB figures indicate that only 30% of foreign investors are buying houses. Most of them are concentrating on buying apartments and on development sites to build apartments.
So they’re buying predominantly new properties (as they are supposed to be, under the rules) and they are buying mostly apartments. In other words, they’re investing in inner city highrise apartments off the plan – unsurprisingly, given that so many developers are targeting their new highrise projects specifically on Asian investors.
Clearly this is not where the bulk of Australian first home buyers are operating.
That’s what NAB’s own survey shows, but the chattering economists have come up with the kind of kindergarten analysis in which they specialise when it comes to residential real estate.
Stick to your knitting, boys. We’re all desperate to hear your next inaccurate tip about interest rates.
Elsewhere, the NAB Residential Property Index shows a rise in real estate sentiment in the March quarter, with a score of +21 points, up from +12 in the December quarter and well above the long-term average of +14.
It indicates that overall sentiment is strongest in NSW (read Sydney), followed by Victoria and Queensland. It has also improved in South Australia, but remains negative in Western Australia (not surprising, given that the REIWA is working so hard to talk down the Perth market).
Looking ahead over the next one to two years, the greatest optimism is in Queensland and Victoria. Indeed, the report predicts that Brisbane will lead the capital cities on price growth in 2016, with Adelaide number one. Both are tipped to growth 5-6% on average next year, while growth in Sydney and Melbourne is expected to have subsided.
Keep in mind that this is speculation and expectation, not fact, and often the outcome is different. I say this because mainstream media often reports economists’ forecasts as if they’re handed down from on high in tablets of stone.
The latest NAB report also confirms what the previous edition found, that around 25% of residential sales are to first-time buyers, of which 15% of owner-occupiers and 10% are investors. In other words, a significant proportion of first-time buyers are opting to buy an investment property as a first purchase.
And they’re managing to do it unimpeded by competition from foreign investors.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

For the most part, foreign investors are not competing with local first timers: Terry Ryder

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According to Knight Frank Asia Pacific between 2009 and 2014 the total value of Chinese overseas investment skyrocketed from US$600 million to hit an estimated US$15 billion, with the thrust of this investment focused in the gateway cities of Australia, the US and the UK.
Australia witnessed the strongest growth in inbound real estate investment from China in 2014 at more than a 60% increase year on year.
Meanwhile, under the terms of the China-Australia Free Trade Agreement (ChAFTA) the threshold of Foreign Investment Review Board (FIRB) screening for Chinese investors targeting commercial real estate has been lifted from a comparatively trifling $54 million to a massive $1,078 million, in line with existing limits on private business investments.
It is no longer in question of “if” capital inflows from Asia are impacting our property markets, the questions should rather be “how exactly are they doing so?” and “to what extent?”
Here are four trends which became increasingly identifiable through the course of 2014.
1 - Developer capital forcing up city land values 
One outcome of the raising of the FIRB threshold is that Asian investment groups aiming to acquire Australian commercial property can, within reason, target any asset deemed to be attractive.
In the development space there have been several instances of Asian developers paying prices comfortably in excess of what is perceived locally to be “fair market value”, in certain cases 25 to 40% above what domestic developers might previously have been prepared to pay.
Having been swallowed up by China's Dalian Wanda Group for a thumping A$425 million, the tired Gold Fields House office block at Sydney’s 1 Alfred Street (opposite the Cahill Expressway at Circular Quay) will be turned into luxury apartments with stunning views of Sydney Harbour.
The acquisition of a prime site in Erskineville in Sydney's inner west by Hong Kong’s Golden Horse group for A$350 million was another landmark transaction, being the highest price paid to date for such a residential site in Australia.
It is important not to underestimate the potential scale of Chinese investment.  The state-owned Chinese property developer Greenland, constructors of the 600 unit Greenland Centre tower in Sydney's Central Business District, is one such example of a behemoth group, with an annual turnover which comfortably dwarfs that of any Australian company. 
The Greenland group sees “no ceiling” to the volume of funds it is prepared to invest in Australia, immediately declaring after the signing of the ChAFTA that agriculture assets would be targeted.  Moreover, purchasing power has increased as the Australian dollar has depreciated.
<img src="https://2.bp.blogspot.com/-kA8y9pqUea4/VTNSRGA-j3I/AAAAAAAAUrE/nZ3uQJOWZ8Y/s1600/chart7.jpg">
While Chinese developers can and frequently do add to the dwelling stock through residential development, land prices in the inner suburbs of Sydney and Melbourne are undoubtedly being pushed higher by Asian investment - and ultimately higher land values are likely to be built into the cost of the final product for the end user. This dynamic is also resulting in substantial windfall gains for some vendors.
2 - Approved purchases have doubled
The latest data from FIRB suggests that total approvals for foreign investment in residential property approximately doubled from $17 billion to $34 billion in 2013/14.
While the bulk of approvals continue to relate to new property at around 80% of the total (this $27 billion itself being a colossal 170% year-on-year swelling), the concentration of approved investment in Sydney and Melbourne is noteworthy.
Furthermore, the prior year comparative figures disclosed in the notes to the FIRB Annual Report showed that total approved investment in commercial real estate was double that of residential.
The sale of high-rise apartments has been one of Australia’s thriving export industries of the past half decade, with new developments in the three largest capital cities being fluently marketed via slick multilingual brochures and websites.
<img src="https://2.bp.blogspot.com/-iJsjBMCZ8GQ/VTNSBBQNvhI/AAAAAAAAUq8/jAgAJz3mccA/s1600/chart6.jpg">
Increasingly assured of their ability to peddle apartments offshore, developers have proceeded to commence the construction of record volumes of high-rise supply, and pleasingly this trend is helping to add significantly to the aggregate dwelling stock.
My analysis has shown here previously that this will result in an oversupply of high-rise apartments in a number of capital city hubs around Australia, which will drive vacancy rates higher and place an equivalent downward pressure on rents.
Indeed, unit yields across several tracts of Brisbane have already discernably declined over the past 18 months, a trend which has sometimes been masked in the reported macro level capital city figures by the “newness premium” charged on pristine new rentals.
3 - Record Chinese tourism spend
While there is no direct correlation between the impressively <a href="https://petewargent.blogspot.com.au/2015/04/export-values-decline">rebounding tourism sector</a> observed in our <a href="https://petewargent.blogspot.com.au/2015/04/export-values-decline">international trade data</a> and our real estate markets, record Chinese visitor numbers and tourism expenditure is inextricably linked to other longer term demographic trends, including the increasing popularity of Australia as a destination for Chinese capital.
<img src="https://4.bp.blogspot.com/-9OcqB8oSyN0/VTNRpMN-FzI/AAAAAAAAUq0/kyPRF2T780Y/s1600/chart5.jpg">
The economic impacts of tourism are bothersome to identify and isolate, but the best “control” or bellwether capital city property market is that of Hobart, a relatively small city which has played host to record Chinese tourism spend over the past year.
My analysis has shown that while both employment and population growth has remained muted in Tasmania, the depreciation of the Aussie dollar has seen the local economy improve and Hobart has begun to record moderate housing market growth.
4 - Capital flight from China
I've deliberated long and hard on this point before making claims which can't be substantiated or backed up with corroborative evidence. Look, it's happening, and dwelling price movements over this decade to date indicate where, that being our two most populous cities. While the value of approved foreign real estate purchases may appear immaterial in the context of a $5.4 trillion housing market, it would be naïve to think that Asian capital is not having an impact at the margin, particularly in a market where annual housing finance domestically is measured only in billions.
<img src="https://1.bp.blogspot.com/-Bcl5LJ9mYyc/VTNSp76y2kI/AAAAAAAAUrM/wceuzJOTr2k/s1600/chart8.jpg">
In today’s more fluid financial markets motivated Asian capital can find (and is finding) its way to Australia, and in sentiment-driven markets where perception alone can move prices, incontrovertibly this matters.
Picking winners
Observers should not be fooled into think that one high profile FIRB intervention at a Wolsely Road address is representative of a government desire to repel Asian investment in Australia. It's not.
As the mining investment boom unwinds and the Australian economy faces consequential commodity market headwinds, quite the opposite has been true, as evidenced by the detail of the ChAFTA and the promotion of the Business Innovation and Investment Visa (the subclass number  “888” affirmation enough of the program’s intention).
The sale of Australian assets results in windfall gains for some, but distorts the markets adversely for others.  The government wants and needs Asian investment, and that is what it is getting, and there is evidently minimal capacity or desire to get involved in picking winners.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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Asian capital is impacting our property markets (and here's how): Pete Wargent

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Tomorrow will mark the halfway point of the 90 day divestiture order Treasurer Joe Hockey announced to force the sale of the $39 million Point Piper trophy home, Villa del Mare.
Nothing publicly has occurred, so who knows what face saving options are being considered by the billionaire owner Xu Jiayin (許家印 also known as Hui Ka Yan).
He is estimated by Forbes to be worth about $7 billion, so he can afford the best minds to attend to the outcome. 
Nothing further from the Treasurer either on his crusade to make houses more affordable for first home buyers.
The Point Piper gossip suggests neither past selling agents Bill Malouf and Ken Jacobs have taken through any prospects <a href="/news/point-pipers-villa-del-mare-back-for-sale-as-australian-treasurer-thwarts-chinese-billionaire">since the March 3 Federal Treasury order.</a>
The Sydney property agent Monika Tu didn't help when she volunteered she had three buyers only prepared to pay around $35 million for the Point Piper mansion.
She has a nearby trophy home listing that had been priced on the maintenance of the $39 million figure.
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Nothing to show halfway through Villa del Mare, Point Piper's 90 day FIRB divestiture order

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GUEST OBSERVATION
For a long time now Australia has been a <a href="https://www.dpn.com.au/services/property-investment" style="line-height: 1.3em;">hotspot for investing in property</a> with people all over the world vying for a slice of the Australian real estate market. According to the Reserve Bank of Australia (RBA), foreign investment in residential property has grown from $6 billion a year in the 1990s to more than $17 billion in 2012/13. The year after that, the value of foreign approvals for home purchases was more than 12% of total dwelling turnover.
Of course, overseas investment in Australia's real estate industry need not only come from foreign buyers. In Michael Fullilove's World Wide Webs: Diasporas and the International System, he estimated the Australian diaspora at around 1 million people, scattered mainly throughout Europe, North America and South East Asia.
Many of these will be Australians who are living and working overseas temporarily, for lifestyle, career or even tax purposes. But whether these expats are aiming to stay away for good or someday return, they too may want to purchase a piece of investment real estate in Australia.
If you count yourself among either of these <a href="https://www.dpn.com.au/services/international-buyers">groups of international buyers</a>, you'll want to be armed with as much information as you can going into an investment purchase. Consider this a short guide to buying investment property in Australia. 
Why invest in Australia?
There are four core factors that make Australia a great place to invest:
<ul>
<li>23 years of uninterrupted economic growth, including a forecast GDP of 2.8% between 2013 and 2019 by the International Monetary Fund</li>
<li>One of the most skilled, diverse and educated work forces in the world - 40% hold tertiary qualification or an advanced diploma</li>
<li>Proximity to the quickly growing Asia Pacific export markets, coupled with the third most transparent real estate industry in the world</li>
<li>Total projected infrastructure investment of $125 billion between 2013-14 and 2019-20 across every state and territory</li>
</ul>
The latter is particularly significant - with such a large amount of planned infrastructure projects in the pipeline, it means a widening radius of areas that could experience <a href="https://www.dpn.com.au/news-resources/sydneys-top-growth-suburbs">significant capital growth</a>.
The other significant attraction of Australia as an investment location is its rapidly growing population. The 2015 Intergenerational Report recently revealed that, by 2054-55, Australia's population is expected to grow to nearly 40 million - an increase of almost 17 million. This means more households needing homes, pushing up demand for currently scarce housing stock - according to Master Builders Australia Chief Executive Wilhelm Harnisch, there is currently a shortfall of 9 million homes in regard to this target.
What kind of properties can international buyers purchase?
Australian citizens, whether here or abroad, as well as foreign nationals with permanent resident visas, have no restrictions on what kind of properties they can buy. Everyone else will have to seek prior approval from the Australian Foreign Investment Review Board once they've chosen the property they want to buy. 
Once you've applied, you should receive a decision between 30 days. It's also important to note that there are certain limits on what kinds of property foreign nationals can buy - broadly speaking , foreign buyers can only purchase new homes or vacant land, and only for investment purposes.
The essentials of buying an investment property in Australia
Before making your investment, be sure you're aware of the full cost of investing. You'll need at least 5-10% of the purchase price to make a deposit, as well as enough to cover supplementary expenses, such as:
<ul>
<li>Stamp duty, which varies from state to state</li>
<li>Legal costs</li>
<li>Insurance</li>
<li>Building inspections</li>
</ul>
Most foreign buyers can borrow 80% of the property's value, allowing them to avoid the cost of lenders mortgage insurance. 
In order to successfully invest, you'll also need to get the <a href="https://www.dpn.com.au/services/home-loans-finance">right investment finance</a>. Some lenders now offer the same features and interest rates on mortgages for non-residents as they do for more typical borrowers, including extra repayments, 100% off set accounts and the option of interest only loans. DPN are credited with all of the major banks and lenders, including those who offer non-resident home loans, so we can be instrumental in securing the right loan for you. 
Thanks to the record low interest rate environment currently prevailing in Australia, there's never been a better time to invest. However, you won't want to enter the market without a solid strategy in place first.
This is where DPN come in. Whether you're an Aussie expat living abroad or a foreign national wanting to invest in our property market, we can provide you with a <a href="https://property%20investment%20plan">free property investment plan</a> that matches your goals and circumstances with a specific property-buying strategy. We can then move on to finding you the right loan, and provide you with peace of mind with our rental guarantees.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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Why Australia is a prime target for overseas property investors: DPN's Sam Khalil

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The Foreign Investment Review Board (FIRB) chairman Brian Wilson said a national register for property transactions was needed to help track buying by foreigners who are barred from buying established residential property. 
"There are about 11 million residential dwellings in Australia, and about 600,000 property transfers every year," Wilson told the Australian Securities and Investment Commission's (ASIC) annual conference.
"It is inevitable some of those properties will be exchanged contrary to the law, but our ability to first discover and then prosecute these cases is sorely limited."
It has been mooted that responsibility for managing the register will be undertaken by the Australian Taxation Office (ATO).
"The ATO is better set up for coordinating a big data approach than Treasury, which is a policy body," Wilson said.
Wilson said the register idea has "wide support" but will require the support of state and territory land titles offices. Property Observer has previously written on the challenge of getting all states, <a href="/expert-insights/buying/tony-abbott-suggests-foreigners-pricing-out-young-home-buyers">especially South Australia in agreement</a>.
Queensland is the only state that currently seeks to ascertain if the buyers are foreign.
"This is not a straightforward process but I am confident this will get a place on the Council of Australian Governments agenda," Wilson said.
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FIRB says ATO best placed to catch illegal property acquisitions

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The federal government’s proposed changes to the Significant Investment Visa (SIV) program has the potential to shut the program down, according to the property, finance and immigration firm Ausin Group.
From the 1 July the government is planning to force SIV clients into alternate asset classes, restrict investing in residential property and prohibiting the direct purchase of government bonds.
Joseph Zaja, the managing director of Ausin Group says the proposed changes are seeking allocations of up to 50% in venture capital and micro-cap companies, which are considered high risk investments. 
“The Australian venture capital and micro-cap sectors are very small," Zaja said.
"It would be difficult to find investment opportunities and the expertise to significantly increase this allocation which would be required under the proposed visa guidelines in the short-term.”
“Under the proposed rules Ausin’s immigration consultants expect investors to shun Australia’s SIV program and start to look for more viable alternatives such as business visas or the Investor Stream Visa.
"They also expect interest in Canada and the USA’s comparable visa programs to increase as their programs are more affordable when compared to Australia’s visas.”
Ausin noted that according to Australian Private Equity &amp; Venture Capital Association Limited’s (AVCAL) 2014 Year Book, over the last five years approximately $150 million per year was raised for venture capital funds in Australia by on average three or four managers. 
“The proposed changes to the complying investment visa requirements for SIVs has the potential to significantly impact on foreign investment in this country," said Zaja.
"Limiting the venture capital and mico-cap allocations to 10-20% will deliver a manageable increase in capital for these investment sectors. 
“Eliminating the small cap requirement and allowing clients to balance their remaining portfolio with assets of their choice would ensure SIVs remain a viable alternative in this country.”
The company is one of Australia’s largest privately owned companies providing property, immigration and financial services advice to both Australian and Asia Pacific markets.
Ausin sells properties for Australian Stock Exchange (ASX) listed companies and private property developers in Australia and New Zealand. Its offices are located in Sydney, Melbourne and 11 major capital cities in Asia. It employs over 350 staff across these offices.
Under the proposed rules, investors would also be forced to only invest up to 10% in residential property. 
Zaja says he agrees that the SIV complying investment guidelines should restrict the direct purchase of existing residential property, "however investing in residential real estate projects should be encouraged".
“The additional residential housing investment generated from the SIV program provides significant benefits to the real estate sector and country including creating jobs, increasing housing supply and generating revenue from stamp duty," he said.
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Changes to venture capital SIV rules will turn investors away from Australia: Ausin Group

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Chinese banks have extended US$16 billion (A$21 billion) in credit lines to shore up the Evergrande Real Estate Group, which is controlled by the billionaire Xu Jiayin, the controversial $39 million Point Piper trophy home buyer,The New York Times reports.
Evergrande announced that since February, it had secured new credit lines totaling 100 billion renminbi, or US$16.2 billion (A$21.24 billion).
It included a new, 30 billion renminbi (A$6.3 billion) commitment on Monday from the Bank of China, which regards the developer as "its most important bank-wide long-term partner," Evergrande said in a news release.
<a href="https://www.evergrande.com/en/default.aspx" target="_blank">Evergrande</a> is one of China's biggest developers, with sales last year of more than 130 billion renminbi (A$27.27 billion). But it is also one of the most indebted, borrowing heavily from foreign investors in the United States dollar offshore market — debts that become more expensive to repay as the renminbi weakens.
Evergrande had total borrowings of 151.8 billion renminbi (A$31.83 billion) at the end of June, the most recent figures available. But that figure did not include an additional 44.5 billion renminbi (A$9.33 billion) worth of perpetual bonds, so called because they have no fixed repayment date, which the company carries on its books as equity.
Evergrande was founded in 1996 by Xu, now its chairman and majority shareholder, who the New York Times noted had a run-in with the Australian government when the Australian treasurer, Joe Hockey, <a href="/news/point-pipers-villa-del-mare-back-for-sale-as-australian-treasurer-thwarts-chinese-billionaire">ordered the company to sell his $39 million mansion, Villa del Mare</a> (pictured above).
Property Observer notes the Villa del Mare title, held by Golden Fast Foods, holds no declared borrowings against on title or with its ASIC registered company.
Macquarie Wealth Research recently noted Evergrande had posted weak sales recently.
But the board of directors informed shareholders the group is expected to record an increase in the Group’s net profit in the range of between 25% and 35% for the year ended 31 December 2014, as compared with the previous year.  
Click to open in new window:
<a href="/images/2015/03/18/macq-mar-18-one.jpg" target="_blank"><img src="/images/2015/03/18/macq-mar-18-one.jpg" alt=""></a>
<a href="/images/2015/03/18/macq-mar-18-two.jpg" target="_blank"><img src="/images/2015/03/18/macq-mar-18-two.jpg" alt=""></a>
<a href="/images/2015/03/18/macq-mar-18-three.jpg" target="_blank"><img src="/images/2015/03/18/macq-mar-18-three.jpg" alt=""></a>
Source: Macquarie Wealth
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