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

<main data-perf-region="main">
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]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

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

<html><body>
<div class="story-intro">
The Foreign Investment Review Board (FIRB) has issued just the 17 orders for foreign investors to divest ­illegally acquired property in Australia since 2003, data obtained by Kelly O'Dwyer's parliamentary committee has revealed.
The FIRB had failed to prosecute a single matter since 2006 for illegally acquiring property in Australia.
<a href="/expert-insights/investing/no-divestiture-orders-as-chinese-buyers-top-the-12-025-foreign-investors-firb">The lack of divesture orders</a> has been a cause for criticism of the FIRB to monitor the investment rules.
Some of its divestment orders have related to the failure of the overseas buyer from developing the property within the designated time. There was one known case on the Gold Coast.
<a href="/news/cubbie-station-set-to-sell-to-chinese-led-syndicate-that-must-shed-some-of-its-equity-within-three-years">The Cubbie Station sale was approved with divestiture orders</a> requiring the buyers to seek partners by 2015.
Property Observer has reported two Sydney cases where <a href="/news/chinese-buyers-strathfield-house-purchase-plans-blocked">purchases have been stopped from proceeding</a>, in Strathfield and <a href="/news/nsw/bellevue-hill-secures-7-7-million-house-sale">Bellevue Hill</a>. 
Australia allows foreign investment in new housing to stimulate supply, but prohibits foreigners from buying fixed homes in all but a narrow range of circumstances.
</div>
New rules mean temporary residents must dispose of property they have bought within three months of departing Australia.
The House of Representatives economics committee’s inquiry has heard evidence that the rules are being flouted, with foreigners happy to take the risk of not being caught.
The Australian reports the committee is poised to recommend that foreign investors pay a fee to apply for permission to purchase real estate in Australia.
It is also likely to recommend changes to data-collection policies to ­ensure the nationality of buyers is recorded and<a href="/news/kelly-odwyer-looks-at-fining-estate-agents-lawyers-and-accountants-under-new-firb-rules"> fines for those local agents, lawyers and accountants who assist in illegal purchasing</a>.
O’Dwyer has flagged considering stamp duties to be imposed on foreign buyers to cool the money flow from China into Australian residential property markets.
</body></html>

jchancellor-FAypfDUnLy

FIRB issued just 17 divestment orders to foreign buyers over past decade

<html><body>
GUEST OBSERVATION
Melbourne is one of the top cities chosen in Australia by property investors from overseas, in particular the Chinese investor. 
Last year, nearly $6 billion was spent on Australian real estate by Chinese investors and Credit Suisse predicts that Chinese nationals will spend around $44 billion on Australian residential real estate over the next seven years. 
Therefore, as more and more Chinese investors cast their eyes towards investing in Melbourne, it will pay to ensure that the real estate agent who is selling your property has a good understanding of, and is well networked with this lucrative buyer market.
Helping to attract wealthy Chinese to Australian shores is the Australian government’s new visa system – the significant investor visa.  Over 90% of the people who have <a href="https://www.bbc.com/news/world-australia-29611137" target="_blank">successfully applied for this visa are Chinese</a>. 
Melbourne already has a large Chinese population. In fact, <a href="https://chinatownmelbourne.com.au/about-chinatown/" target="_blank">Melbourne has the oldest Chinatown in the world</a>, outside of China, and its Chinese population continues to grow steadily and gravitate towards specific areas, with one example <a href="/news">Bentleigh</a>, in Melbourne’s south-east. Over the past three years the Chinese population in Bentleigh has flourished and grown exponentially.  
Chinese buyers heading to Australian shores value the cost of our properties (Australia is still relatively cheap compared to a lot of cities around the world), our good education system, quality of life, public security and clean air. Bentleigh’s attraction to the Chinese buyer lies primarily in its good schools, but also in the attractive large and modern houses it has to offer.
The suburb features a number of excellent primary schools, and is in the catchment area for one of the best public schools in the area, McKinnon Secondary College. Additionally, Bentleigh is attractive to the Chinese investor for its proximity to Melbourne’s CBD (just 12 kilometres away), its good transport links and its access to the Bayside beaches.
For real estate agents operating in areas that are culturally diverse, it is important to have a team that understands the local market and therefore has the ability to effectively target prospective buyers.  Hodges works tirelessly to ensure clients get the best possible outcome for the sale of their property and this means targeting all prospective buyer groups in the local area.
Ultimately, getting the best price for a property is about maximising the number of interested buyers, so therefore given we know what we do about the Chinese investor; it would be negligent not to include them as an important stakeholder group.
It is for this reason that every Hodges Bentleigh property listing is translated into Mandarin and listed on the Gifang.com site. This means our clients are able to tap into a huge market of potential Chinese-speaking buyers that we know are actively looking to buy in Melbourne. Hodges also offers a translation service so that we can communicate with Chinese buyers in Chinese.
There is no shortage of Chinese investors in the Melbourne property market and this is great news for those selling properties in areas that are attractive to Chinese investors. As a vendor it pays to select an agent with a sound knowledge of the Chinese investor market. After all, extending the reach of a campaign to include another layer of buyers will only help to ensure the best price come auction day.
Frank Ruffo is director of <a href="https://www.hodges.com.au/hodgesbentleigh" target="_blank">Hodges Bentleigh</a>.
</body></html>

po-LsXgBTHBmX

Tapping into Melbourne's Chinese investor interest

<html><body>
Foreign investment in Australian property is a divisive topic.
The Foreign Investment Review Board (FIRB) <a href="/news/tougher-firb-rules-delayed">is coming under close scrutiny</a>, with many believing the board is neglecting to police the current rules around offshore purchasers. Others suggest that the existing rules are too weak and are pushing for new legislation. 
But what actually are the current rules for foreign buyers looking to purchase Australian residential property? Here are some of the most pertinent rules:
<ol>
<li>An application must be made for each specific property that a foreign buyer intends to purchase. An application must be lodged for that home – it cannot be lodged for a general or in principle approval. This approval then stands for 12 months from the date on the letter. Separate applications can simultaneously be made and granted for multiple properties. 
</li>
<li>The approval letter (which comes as an email) only applies to the individual or group who applied. It is not transferrable, and if another party wants to buy they must re-apply. 
</li>
<li>Temporary residents, and 457 visa holders, are only able to buy one established dwelling, which is to be used as a primary place of residence. There are no restrictions on the number of vacant and new properties (or established properties for redevelopment) that approval can be received for. 
</li>
<li>Temporary residents cannot purchase established dwellings until they actually live in the country. 
</li>
<li>Temporary residents must sell the established property when they leave as it is no longer their PPOR. They cannot rent it out. It must be sold within three months of leaving the country. 
</li>
<li>Foreign non-residents can only purchase vacant land or new property upon application. Established properties for redevelopment can be purchased under certain circumstances. 
</li>
<li>Approval is not required to sell unless the conditions have not been met. For instance, if vacant land was not developed by the purchaser, then approval will be required. 
</li>
<li>Those who no longer wish to purchase the property need to withdraw their approval by notifying the FIRB. 
</li>
<li>If you become a permanent resident then all conditions cease to apply. 
</li>
<li>If the developer has been granted pre-approval to sell new dwellings to foreign buyers, the foreign buyer does not need to submit an approval application. 
</li>
<li>Approval is required for foreign non-residents regardless of the method in which they buy – e.g. through a trust or company structure. 
</li>
<li>Foreign non-residents cannot buy secondhand (established) property, or buy a stake in the property, unless they do so with a spouse. Approval is still required.</li>
</ol>
</body></html>

jduke-EHk3XBmHkn

What are Australia's foreign investment in real estate rules?

<html><body>
Few things make me more cynical than the sound of a politician mouthing concern about housing affordability.
In my lifetime, there have been hordes of politicians and governments claiming to want to solve the problem, but none willing to take any real action.
When it comes to improving affordability, many politicians talk a good fight, but none is capable of delivering a knockout punch.
The latest masquerade in this regard is being led by MP Kelly O'Dwyer.
O'Dwyer has obviously watched a few episodes of Yes Minister before deciding on a course of action: bring on an inquiry, issue lots of press releases, target an unpopular minority and take "strong action" against these alleged perpetrators of the perceived problem – but essentially do nothing meaningful so that the status quo remains intact.
The truth is, 40% of the cost of a new house in Australia comprises government fees, charges and taxes. Remove those and the cost of a $400,000 house-and-land package would drop to $240,000.
In all the froth and bubble coming out of the federal inquiry, we haven't heard O'Dwyer or any other politician confront this reality. Why not? Because if they did, their advancement within the party would suffer a sharp U-turn.
Governments are addicted to the revenue they milk from their favourite cash cow, the real estate industry. That's sacred and the possibility of scraping stamp duty, for example, is not up for discussion.
So what to do? How to create the illusion of doing something while changing nothing?
<blockquote>
Many Australians have a big issue with Chinese investors, although they don't seem to mind American, British, Dutch, Italian or New Zealand investors.
</blockquote>
The answer, as always, is this: target an unpopular minority, talk tough, issue lots of press releases, look strong, do nothing. Works a treat every time.
O'Dwyer has a bee in her bonnet about foreign investors. I'm not sure whether she truly believes that foreign investors are the cause of the perceived affordability problem. I seriously doubt that she does, because someone armed with all the relevant information, as she should be, must know that foreign investors are not impacting the price of suburban houses in Australia.
But foreign investors are a great scapegoat, particularly as this currently means Chinese investors. And many Australians have a big issue with Chinese investors, although they don't seem to mind American, British, Dutch, Italian or New Zealand investors.
So tough-talking Kelly is going a come down hard on Chinese investors. It'll be good for some media sound bytes and it'll help to advance the career of a politician no one had heard of until recently.
But will it make housing more affordable? No, it won't change a thing.
A quote from Shakespeare comes to mind: "It is a tale told by an idiot, full of sound and fury, signifying nothing."
Chinese investors are not impacting the price of houses in first-home buyer markets in Australian cities. Overwhelmingly, they are buying high-rise apartments in the CBDs of Melbourne and Sydney, as well as the Gold Coast, which is a perennial favourite for Asian investors who enjoy losing money.
If they're buying suburban houses, it's primarily top-end homes in the millionaire suburbs.
The Federal Government could pass a law tomorrow banning all foreign investment in Australian residential property – and the price of houses in the suburbs of Sydney and Melbourne would not change.
But if they removed the taxation component of a house-and-land package, that would make a dramatic difference.
Any chance of that happening? Not remotely.
This is a publicity exercise. Meaningful change is not on the agenda.
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</a> him or contact him on <a href="https://twitter.com/hotspotting" target="_blank">twitter</a>.
 
</body></html>

terryryder-YECXbqmri2

Pollies prefer to milk the property cow than to make meaningful change

<html><body>
A petition on Change.org to toughen the regulations for foreign investment in Australia has close to 6,000 signatures.
With supporting information from Today Tonight and The Australian, <a href="https://www.change.org/p/the-executive-members-toughen-the-regulations-for-foreign-investment-in-australia?alert_id=HEtLpxcPaJ_FP7OUYEuxludYFTqMcgLFq%2FQT%2FI%2BGnc6gHRzp7hGsEIfi%2Fl9KeHPyJgeOw2P56ks&amp;utm_campaign=159819&amp;utm_medium=email&amp;utm_source=action_alert" target="_blank">the petition</a>, launched by Simon Hosking, noted that he is unable to purchase property in China, Japan and many emerging economies.
“I am not suggesting no foreign investment, but a more thorough testing of foreign buyers and purchases. Also, a toughening of regulations by the Foreign Investment Review Board,” he writes.
The petition, which will be sent to the executive members of the Foreign Investment Review Board (FIRB), asks for the introduction of more thorough testing of foreign buyers and their purchases, the scrutinising of each purchase for irregularities and the toughening of regulations surrounding foreign investment in Australian properties.
Signed 5,449 times at the time of writing, it is aiming for 10,000 signatures. Update: It is now seeking 25,000 signatures and is just shy of 6,000 in total.
Reaching 5,000 signatures yesterday, Hosking wrote that the demographic in Australia is rapidly changing.
“The Foreign Investment Review Board is either politically unwilling or incapable of defending and protecting the sovereignty of this country. If you observe FIRB's behavior, you definitely notice their stubborn refusal or ineptitude to slow the surge in what “appears” unregulated foreign buying,” he said.
“Clearly, foreign interests are taking advantage of this ineffectual regulatory authority and inadequate policing; leading to gazumping, irregular bidding, laundering cheap offshore funds, fake identities, fraudulent purchasing tactics, etc…Given what we know about the state of the market, and that locals are being priced out, by overseas purchasers. The Foreign Factor is a critical issue. [sic]”
Pointing to limited supply he said that "continue and relentless overseas investment in our market is driving prices higher".
Comments from those signing include fears that future generations will never be able to afford a home, concerns about the sale of arable farming land to offshore buyers and others saying it should be a two way street with the ability to purchase overseas.
</body></html>

Petition to toughen FIRB regulations at almost 6,000 signatures

<html><body>
Stephen Koukoulas, has stirred some readers up on Twitter.
<a href="https://www.propertyobserver.com.au/https://twitter.com/TheKouk/status/522334312637558784" target="_blank">The Kouk asks</a> why there’s so much paranoia around foreigners paying high prices for houses when 99% of iron ore dug up is sold to foreigners as well.
<img src="/images/2014/10/16/Picture%203.png" alt="">
Many were quick to respond to say that the two are not comparable issues.
Bullion Baron said “last time I checked Australians don’t need to live in an iron ore so the price of it is of less consequence to the average family.”
Meanwhile, David Scutt tweeted that the iron ore 2011 supply deficit caused price distortions, massive over-investment and a “supply glut years later”.
However, Shervin D’Aguiar said that supply side fixes the housing problem, noting that foreign buyers, negative gearing and the first home owners grant are all “side distractions”.
</body></html>

99% of ore goes to foreigners, why the housing paranoia?: Tweet of the day 

<html><body>
The Federal Government plans to introduce a new visa program, encouraging more high net worth individuals to make Australia home.
It proposes to create a new Premium Investor Visa (PIV) which offers a faster 12 month pathway to permanent residency for those who invest at least $15 million.
Changes are also being planned to the Significant Investor Visa (SIV) program which was established under the Labor government with the aim of encouraging foreign investment.
The SIV gives a pathway to permanent residency for those who invest at least $5 million in Australia for at least four years.
The PIV criteria for eligible investments are also being change so that they align with "the Government's national investment priorities".
These criteria will be determined by the Federal Government's Austrade agency in consultation with the key economic and industry portfolios.
Austrade will also become a nominating body for the SIV.
The PIV will be introduced from July 1, 2015, while the SIV changes will take place during 2014-15.
The targeted investment eligibility criteria will be determined by Austrade following consultation with key economic and industry portfolios.
It is likely the investors will quickly buy an Australian home, with fund manager Roger Montgomery suggesting property prices, at least at the high-end, could well be supported for some time yet.
"Wealthy foreigners often purchase property in Australia as an investment – a trend which has surely exacerbated house price inflation, particularly in Sydney and Melbourne," <a href="https://rogermontgomery.com/can-house-prices-fall/" target="_blank">he blogged</a>.
</body></html>

Premium Investor Visa takes required offshore injection to $15 million

<html><body>
The $9.6 million Killara mansion sale of Manresa was notched up by a Significant Investment Visa-approved buyer.
There has been an influx of Chinese buyers in Australia last week during the holiday period known as Golden Week.
<a href="https://www.realestate.com.au/property-house-nsw-killara-118016223" target="_blank">The </a><a href="https://www.realestate.com.au/property-house-nsw-killara-118016223" target="_blank">Stanhope Road property</a> last sold for $7.28 million in 2009. Manresa was inspired by 19th-century Queen Anne architecture. Property Observer columnist Margie Blok once wrote that it was reminiscent of the lavish Beverley Hills mansion owned by rock star Rod Stewart.
"The majestic home is embraced by 4,000 square metre of rolling established grounds and is a monument to the Golden Triangle's elite status," the marketing said.
The record remains at Springdale Road's Deepdene, a 5533-square-metre heritage-listed estate with extended 1924 bungalow sold two years ago by former Microsoft pioneer Daniel Petre and his wife Carolyn for $11.5 million. It was purchased by Anita Cunliffe, the wife of Guy Fowler, the managing director of UBS.
Sales in Killara this year have included former Macquarie Bank executive Murray Bleach and his wife Leigh securing $6 million-plus.
Golden Week (黄金周), in the mainland of the People's Republic of China, is the name given to a semi-annual seven day early October national holiday, implemented in 2000.
October 1st, 1949 was the memorial day for the founding of the People’s Republic of China. Ever since 1950, every October 1st has been celebrated by Chinese people.
 
 
</body></html>

China's Golden Week secures $9.6 million Killara sale

<html><body>
Guest observation
Despite valiant efforts by commentators such as <a href="https://www.crikey.com.au/2014/03/10/chinese-real-estate-invasion-not-according-to-the-data-fellas/">Bernard Keane</a> and <a href="https://www.smh.com.au/business/comment-and-analysis/why-we-should-welcome-chinese-housing-investment-20140311-34j00">Michael Pascoe</a> to slay claims that Chinese buyers are making it harder for ordinary Australians to enter the housing market, the notion <a href="https://www.smh.com.au/comment/grey-money-from-china-helps-blow-our-property-bubble-20140928-10n7a8">refuses to die</a>. It is the <a href="https://www.propertyobserver.com.au/https://press.princeton.edu/titles/9702">“zombie idea”</a> afflicting the Australia-China economic relationship.
And there is a danger the zombies will multiply. Last week the <a href="https://www.afr.com/p/business/property/more_chinese_investment_likely_as_hgTpJvcLwJaFVV5MpsX5EL">Australian Financial Review</a> reported that China recently eased restrictions on outbound investment. The implication being “a fresh wave of capital [is] expected to make its way into the Australian property market”.
The <a href="https://www.smh.com.au/business/chinese-investors-are-pushing-into-melbourne-and-sydney-20141010-113q7x">Sydney Morning Herald</a> continued with the same theme listing several recent examples of Chinese-funded projects with values reaching into the billions.
But all these reports lack one critical factor: context.
Even if Chinese investment is rising, it is still a small proportion of the market
All foreign investment in Australian real estate requires approval from the Foreign Investment Review Board (FIRB).
According to <a href="https://www.firb.gov.au/content/publications.asp">FIRB</a>, over the period 2009-10 to 2012-13, approvals for Chinese investment in Australian real estate totalled $16.6 billion.
At first blush this seems an impressively large figure. But it is actually less than 10% of the total value of foreign investment approvals in the sector.
Approvals to Chinese investors have lagged behind those from the United States. They have also not been much more than those from the United Kingdom, which has an economy around one quarter the size of China’s and less than 5% of the population.
The scale of Chinese investment seems again smaller when viewed against the size of the market. In a report earlier this year, the <a href="https://www.rba.gov.au/publications/bulletin/2014/jun/bu-0614-2a">Reserve Bank of Australia</a> (RBA) observed that total foreign investment approvals in residential real estate have historically only been around 5-10% of the value of home sales. Chinese approvals are just a proportion of this percentage.
It is also important to keep in mind we are talking about approvals here, not purchases. This means FIRB data overstate the true value of foreign investment.
For example, a property developer in Australia can apply to the FIRB for approval to sell all new dwellings in a large scale real estate project to foreign buyers. In their <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/foreigninvestment/index.htm">submission</a> to the Inquiry into Foreign Investment in Residential Real Estate, the Commonwealth Treasury noted that based on past experience only around 35%, on average, of such dwellings end up in the hands of foreigners.
Also don’t forget that FIRB data is gross, not net. In any given year some foreign investors will seek FIRB approval for new purchases. Meanwhile others will sell down their existing portfolios. As a result, simply adding the value of FIRB approvals from year to year exaggerates the size of the stock of Australian real estate assets held by foreigners.
What all this means is that Chinese investment can grow strongly and still not come close to flooding the market. Citing preliminary FIRB data from the first three quarters of 2013-2014, the Commonwealth Treasury noted a sharp jump in foreign investment approvals over the previous year, particularly from China. But as the RBA shows, this still only takes the value of total foreign investment approvals to around 12-13% of total sales.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Chinese investment actually increases housing supply
Issues of scale aside, Chinese investment has the effect of increasing housing supply. This acts to restrain price growth.
Regulations also limit Chinese investors to buying new properties. Exceptions are few. For example, a Chinese student may purchase an established property to live in while studying in Australia. But it must be sold once they return home. Building new housing requires a lot of capital. A report earlier this year by the <a href="https://www.ahuri.edu.au/publications/projects/p81009">Australian Housing and Urban Research Institute</a> found a leading cause of the undersupply of housing in Australia is the availability of finance. Banks are the first port of call for most developers. Yet banks generally demand pre-sales, or sales of dwellings before their construction even begins, of between 50-100% of the value of the loan being sort.
<a href="https://www.smh.com.au/business/comment-and-analysis/why-we-should-welcome-chinese-housing-investment-20140311-34j00">Michael Pascoe</a> put it like this, “Without the stimulus of investors to get the country building now, we’ll face demand-induced price pressure all of our own soon enough”.
With a small population and a limited domestic savings pool, Australia has a long tradition of accepting and benefiting from foreign investment in capital-intensive sectors of the economy. The real estate sector is no different: a dollar of Australian savings tied up in housing is a dollar that cannot be productively invested elsewhere.
Other benefits of Chinese investment include the very real jobs created in Australia’s construction industry and associated sectors such as housing appliances.
Are foreign investors breaking the rules?
Recent allegations that some foreign investors have skirted FIRB rules to purchase established housing have attracted much <a href="https://www.smh.com.au/business/punish-foreign-property-cheats-says-coalition-mp-kelly-odwyer-20140916-10hp2r">media attention</a>. This claim does nothing to undercut the benefits brought by foreign investment. Rather, it is a complaint about existing rules not being enforced.
The intensity of enforcement is entirely at the discretion of Australian authorities. The FIRB reviews around <a href="https://www.afr.com/p/national/firb_we_don_have_staff_to_veto_foreign_u7VxVO2Hr9zdQsjkc8NwyK">2.5% of housing transactions</a> to verify compliance. Simple economics says that scrutinising every one of the 600,000 housing transactions each year would not be an efficient use of resources. The FIRB employs the same risk management approach that Australian Customs uses when screening imports for contraband and counterfeit products.
Another factor that troubles commentators about Chinese investment is that some of this money finds its way to Australia via the <a href="https://www.smh.com.au/comment/grey-money-from-china-helps-blow-our-property-bubble-20140928-10n7a8">“grey economy”</a> or the <a href="https://www.theaustralian.com.au/business/banks-admit-to-limited-control-over-foreign-funds-for-housing/story-e6frg8zx-1227021005452">“shadow banking system”</a>.
But there is nothing sinister about it. China has a prominent informal financial system because its formal banking sector functions so poorly. It regularly offers savers negative real returns and supplies a dearth of credit to dynamic private sector firms.
Without an informal financial system to overcome these deficiencies, China’s growth would have been much slower than it has been and Australia would be worse off as a result. Similarly, the flow of Chinese capital to Australia would have been reduced and so too would the benefits received – there would be less housing supply and fewer construction jobs.
Knee-jerk arguments blaming Chinese investors for high Aussie house prices may be refuted with hard evidence. Unfortunately zombie ideas in economics have a habit of rising again.
<img src="https://counter.theconversation.edu.au/content/32455/count.gif" alt="The Conversation" width="1" height="1">James Laurenceson is the deputy director and professor at the Australia-China Relations Institute (ACRI) at the University of Technology, Sydney. He does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/zombie-economics-the-notion-china-is-to-blame-for-australias-property-bubble-refuses-to-die-32455">original article</a>.
</body></html>

jrichardson-uRX5hFdKfN

Zombie economics: the notion China is to blame for Australia's property bubble refuses to die

<html><body>
If one was looking for a single word that is missing from the ongoing property debate, look no further than 'perspective'.
Some are looking at the property market from a perspective that has lead them to a conclusion which is totally and completely wrong.
Investors have got it completely right given (in the case of Sydney) we are suffering from a chronic undersupply which explains why the vacancy rate in a 10 kilometre radius from the CBD has sat below 2% for the best part of a decade.
Never before have we seen a better time to convene an inquiry into the Australian real estate markets because nobody has an accurate perspective as to what is actually happening. Earlier this year I was one of the first to write that something was not right with the influx of overseas buyers.
This brought about an inquiry (that is still going) although it has exposed the Australian Foreign Investment Board (FIRB) to be in total disarray.
Last week, Federal MP Kelly O'Dwyer told ABC Lateline:
"What we've found out though, through the evidence that our committee has received, is that these rules have simply not been enforced through prosecution since 2006 by the FIRB. I think there has been a failure of leadership of the FIRB on this. I think they have dropped the ball. I think if we have rules in place, those rules need to be properly enforced. That is the only way we can give confidence to the Australian people that our foreign investment framework's working as it should. So we would be looking to tighten up exactly what occurs in terms of enforcement penalties that can be applied, but also to make sure that FIRB is doing its job."
Well it's very clear that FIRB have not been doing their job, so in the meantime Ms O'Dwyer should be introducing a temporary ban on all overseas purchases until such time that the government can fully determine how big this matter is.
In my opinion there is no better person qualified to chair the inquiry than Bill Moss who is a former Macquarie Group banker and head of property. Speaking to The Weekend Australian, he said:
"This is the first (property) cycle we've seen where there's a deregulated global market,where capital is free to flow from Asia to Australia. We have a free floating dollar, equity makers are global and now our residential markets are going the same way."
The major concern in Australia is that nobody knows just how many properties have been acquired given nobody has a perspective as to the exact number.
Although, negative gearing presents a much bigger problem in the Australian property markets than overseas investors.
Another person who must be appointed to an inquiry is Saul Eslake, who this week called on Canberra to put an end to negative gearing for new investors as the best way to dampen frothy property markets in Sydney and Melbourne.
It should be noted that he referred to them as 'frothy' not a 'bubble'. He accepts that it is not politically feasible to abolish negative gearing because around 15%of voters are currently taking advantage of negative gearing – which explains why no politician should participate in the inquiry given they have vested interests.
Australian investors are smart and can sense a change to the property tax landscape in Australia, which I pointed out last week.
It is important to note the recommended measures are nothing more than temporary until such time that the government can get a correct perspective on the Australian property markets.
Bill Moss went on to say in his interview that our housing markets were better tackled at a state or local government level, with the federal government or the Reserve Bank of Australia's (RBA) macro prudential tools such as restricting how much banks can lend to investors. "Rather than react to what's happening, what the government needs to do is understand what is going to happen."
The interview keeps getting better, when he commented that "governments should look how to make money from a real estate bubble."
In my opinion, overseas buyers should be paying a much higher Stamp Duty and a Vacancy Tax for all properties where the owners decide to landbank by locking them up. All these taxes should be flowing into new infrastructure strategies.
The problem is that governments have neither perspective nor understanding about real estate machinations. So they need to establish an inquiry to better understand what exactly is going on as against merely flying from the seats of their pants.
 
</body></html>

Foreign Buyers

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Foreign Buyers

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News