IPM Property is progressing plans for its third development in Mona Vale in Sydney's Northern Beaches, and its latest will be the biggest yet.

IPM, led by Steven Sroba and Chris Webster, has filed a State Significant Development Application to the NSW Government's Housing Delivery Authority for 82 apartments on a prime 6,122 sqm site stretching across <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and just under 800m from Mona Vale town centre.

They've had <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> draw up the plans for the three-building development which will offer a mix of 26 two-bedroom units and 56 three-beds with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a>.

According to the Design Report by PBD, the built form "responds to the site’s natural fall, solar orientation, and established vegetation, creating a layered architectural expression that balances scale, materiality, and landscape”.

<img alt="159-167 Darley Street West, Mona Vale" data-entity-type="file" data-entity-uuid="44040ed2-13c6-4f18-8326-a51467cb8532" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Mona%20vale%20pers.png?VersionId=4H1gEiyyCX2yT_fYV6kAdWaaVlCttC6P" />

The proposal aims to maximise passive design outcomes, with the site’s northern orientation supporting solar access and cross-ventilation. Building footprints have been shaped to preserve high-retention trees and accommodate an overland flow path, which runs diagonally through the rear of the site.

The development includes several sustainability initiatives, such as full electrification, EV charging provisions, and generous communal open spaces integrated across the ground and rooftop levels. As outlined in the planning documents, the buildings have been stepped in both plan and elevation to reduce bulk and provide separation to adjacent dwellings, in line with the Apartment Design Guide and local controls.

The project site falls just within the 800-metre radius covered by the NSW Government’s Low and Mid-Rise Housing Reforms, which entered their second stage in February 2025. These reforms introduce specific planning controls that significantly increase the potential for medium-density housing growth within 800 metres of the Mona Vale town centre.

<img alt="159-167 Darley Street West, Mona Vale" data-entity-type="file" data-entity-uuid="5df61e6d-0696-4c1e-81c2-8d3535228878" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_9.png?VersionId=vWjI2oCZhAkCPKv4xMEVLdVNkn.keD6_" />

IPM has been active in the local market for several years. Its recent projects include Maya on Bungan Street near the town centre, a 33-apartment development completed in late 2024, and Iluka on beachfront Golf Avenue, a boutique project of just 14 apartments. Iluka set a local record in 2021 when a full-floor, three-bedroom apartment sold off the plan for $4.775 million.

Nearby in Palm Beach, IPM is also delivering Snappermans, a collection of just five luxury apartments designed by Koichi Takada Architects, located steps from Pittwater. The developer has also recently completed Como Coogee, a 20-apartment development on Carrington Road.

Joel Robinson

First look: IPM plans third Mona Vale project

With demand for high-quality family homes in the inner west continuing to rise, young families are increasingly turning to new forms of multi-generational living.

At <a href="https://www.apartments.com.au/buildings/ashbury-terraces-ashbury-165-171-milton-street-ashbury-nsw-2193">Ashbury Terraces</a>, Nikki Pham and Danny Lai are among the growing number of residents choosing the precinct for its space, design integrity and strong sense of community.

For Nikki and Danny, purchasing a three-storey terrace was about securing a long-term home for their young family. Having spent most of their lives in the inner west, they first discovered the project while it was under construction.

“We walked past and had a look during the build and instantly felt the vibe. It had everything we were looking for,” said Nikki.

A return to green, open spaces was a major drawcard after living closer to the CBD.

“We like going for walks, and here it feels like a mini oasis while still being central to everything we need,” she said.&nbsp;

[smartcode_project:default project_id=112253 project_image_fid=354944]

Inside, the couple were immediately drawn to the craftsmanship.&nbsp;

“I love the Calacatta marble and timber detailing. If I’d designed it myself, these are exactly the fittings and fixtures I would have picked,” Nikki said. “There’s actually very little I’d change.

“We’ve found the craftsmanship has been great and I believe the beautiful arches and curves, including on our stunning staircase, are all made by hand.”

Since moving in with their seven-month-old baby in mid-August, the family has been making the most of the amenities, especially the pool.&nbsp;

“We love using the shallow area with the baby. It’s great for kids, and the sunbeds are perfect when it’s not too hot,” Danny said.

[smartcode_project:default project_id=112253 project_image_fid=354939]

The home features kitchen, living and dining areas on the ground floor with courtyard access to the pool, two bedrooms and a study on the middle level, and a master suite on the top floor. The proximity to local parks, childcare, and schools also made it an easy choice.

Nikki has noticed the project is sparking interest from the extended families of new residents.&nbsp;

“Several of our neighbour’s parents have now bought here too. It’s ideal for multi-generational living because everyone has their own space but you’re still close by.”

<h2>A growing trend in the inner west</h2>

Aras Labutis, Head of Urban Transformations at <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>, said families like Nikki and Danny’s reflect a broader shift.

“Ashbury Terraces was designed for families at different life stages who want to stay connected to the inner west, including multi-generational households," Labutis said.

"Some terraces even include lifts, which make them ideal for older residents who want to remain independent while living close to children or grandchildren."

[smartcode_project:default project_id=112253 project_image_fid=354936]

Recent ABS data shows around one in five Australian households is now multigenerational, following a 22 per cent rise in the five years to 2021.

“The demand we’re seeing aligns with broader national data showing ongoing growth in multi-generational living as families look for practical, long-term solutions in well-connected suburbs.”

<h2>Milton Estate launches as the precinct’s next chapter</h2>

Following this strong response, Coronation is now registering expressions of interest for Milton Estate, the next evolution of the precinct. Strong sales and sustained interest in family-focused inner west homes have underpinned the decision to bring this next stage to market sooner than anticipated.&nbsp;

[smartcode_project:default project_id=112253 project_image_fid=358839]

The new collection continues the same design principles, quality materials, heritage sensitivity and family-focused layouts, and its launch reflects demand from both local buyers and extended families who want to remain part of the growing community at Ashbury Terraces.

<h2>A new neighbourhood taking shape</h2>

Designed by award-winning architects <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, and brought to life with landscaping by <a href="https://www.apartments.com.au/landscape-architect/360-degrees-landscape">360 Degrees</a>, Ashbury Terraces comprises 136 residences across five low-rise buildings, supported by amenities including a pool, gym and landscaped communal spaces.

For Nikki and Danny, it already feels like a place to grow for years to come.

“We’ve found great childcare nearby, and Ashbury Primary and Trinity Grammar are within easy reach. There are other excellent public and private school options too,” Nikki said.

“It’s hard to find something like this in the Inner West,” she added. “It’s certainly unique in <a href="https://www.apartments.com.au/developments/ashbury-nsw-2193">Ashbury</a>. We’ve got everything we need here and it already feels like home.”

[smartcode_project_cta:default project_id=112253]

Staff Writer

Ashbury Terraces proves a perfect fit for growing families and multi-generational living

An exclusive collection of luxury Sky Homes featuring sweeping water views, each with their own private rooftop terrace and marina berth, are part of the latest release at Lewis Land’s visionary <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplanned community.&nbsp;

The Sky Homes, which sit within the Signature Collection, have been designed by&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>&nbsp;and&nbsp;feature contemporary light-filled coastal interiors, accented by natural textures of timber and stone. The homes range from 282 sqm to 367sqm and offer three bedrooms, three bathrooms, multiple living zones, three car parks, large private balconies, and their own rooftop terraces. &nbsp;

[smartcode_project:default project_id=113271 project_image_fid=359204]

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the three double-storey Sky Homes occupying the &nbsp;upper levels of The Waterline apartment building formed part of the masterplan’s Signature Collection of &nbsp;luxury residences. &nbsp;

“The exclusive Sky Homes are more than penthouses, they are double-storey homes featuring expansive living spaces and outdoor terraces,” Mr Long said.&nbsp;

“Located on levels five and six of The Waterline, each Sky Home includes its own private marina berth with direct Broadwater access and carefully curated high-end finishes throughout.”&nbsp;

&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=359206]

The launch of The Signature Collection coincides with the milestone topping out of The Waterline, the first of three residential collections being delivered in the first stage of Harbour Shores.&nbsp;

Residents will also have access to a private pool and other resident-only amenities including a large &nbsp;lagoon pool, social clubhouse, tennis court, gym, yoga and sauna facilities. &nbsp;

Prices for the Sky Homes start from $3.65 million. &nbsp;

&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=290031]

The Signature Collection also features The Residences, an exclusive release of six premium waterfront villas, positioned directly on the 1.2km waterfront boardwalk.&nbsp;

The Residences offer more than 350 sqm of contemporary living with premium finishes throughout and &nbsp;dining spaces that flow seamlessly to the outdoor entertaining area on the ground floor. Each have their own private plunge pool overlooking the water, and a private marina berth.

All villas include two secure car parks and residents have access to the extensive amenities within the broader precinct. Prices start from $3.05 million. &nbsp;

[smartcode_project:default project_id=113271 project_image_fid=290030]

Harbour Shores is a resort-style community focused on lifestyle and wellness where neighbourhoods &nbsp;are connected by extensive landscaping, green spaces and pedestrian networks, including a 1.2- kilometre waterfront boardwalk.&nbsp;

Boasting a 6 Star Green Star Communities V1.1 rating, the highest level of sustainability of any project &nbsp;on the Gold Coast, Harbour Shores will deliver more than 2,000 homes over the next decade.&nbsp;

Colliers is marketing Harbour Shores, and has seen significant demand from local owner-occupiers.

[smartcode_project_cta:default project_id=113271]

Lewis Land unveils Harbour Shores’ double-storey sky homes with private marina berths

PERIFA's Rozelle Village in Sydney's Inner West is the first project to receive funding as part of the&nbsp;Minns Labor Government’s Pre-sale Finance Guarantee program, a programme aimed at fast tracking new homes across the state.

More than 225 new apartments, including 59 affordable homes, will now start construction sooner as part of the $285 million Rozelle Village revamp of the derelict former Balmain Leagues Club site on Victoria Road, which received state significant development approval last year under the Infill Affordable Housing pathway.

The mixed-use precinct also includes retail spaces, community facilities, and a public plaza.

[smartcode_project:default project_id=8142 project_image_fid=335]

The Guarantee is supporting 32 affordable homes off the plan, giving developer PERIFA confidence to secure construction finance and deliver much-needed homes in the Inner West.

This arrangement gives the developer time to lock in a community housing provider to purchase and manage the project’s affordable homes, with a guarantee the Government will buy the 32 units if the level of qualifying pre-sale requirements is not met prior to project completion expected in 2028.

Since the launch of the program in October, 31 expressions of interest have been received from developers across the state, with a third of these already invited to submit full applications.

[smartcode_project:default project_id=8142 project_image_fid=325]

In addition to the <a href="https://www.apartments.com.au/new-apartments/rozelle-village-rozelle-152-victoria-road-rozelle-nsw-2039">Rozelle Village</a> project, over $100 million worth of pre-sale commitment requests have been received and are currently under assessment. If approved, this support will unlock the construction of over 350 new homes across metropolitan Sydney and regional NSW.

Under the Pre-sale Finance Guarantee, the Government may commit to buy, off the plan, up to 50 per cent of homes in approved developments, valued at up to $2 million each. Support can range from $5 million to $50 million per project, the Guarantee then allows developers to achieve commercial construction finance.

Up to $1 billion in pre-sales over the next five years will be supported through the revolving fund, making sure more projects can move from approval to construction.

The challenge of meeting pre-sale requirements is one of the most common issues cited by stakeholders in securing finance, and has been outlined as a key hurdle for industry in the NSW Productivity and Equality Commission’s Review of housing supply challenges and policy options for New South Wales. Only developers and projects that meet strict criteria for credibility, capability, and capacity to deliver are approved and invited to participate in the program.

&nbsp;

Treasurer Daniel Mookhey said the program is a "smart use of the State's balance sheet."

“This is exactly what the $1 billion Pre-sale Finance Guarantee was designed to do - move approved projects from paper to construction," Mookhey said.

“By providing a targeted pre-sale guarantee, we’re giving the market the confidence it needs to secure finance and start construction, without the Government having to spend a dollar upfront."

Minister for Planning and Public Spaces Paul Scully said Rozelle Village is a great example of how Labor's housing reforms and initiatives are working together to deliver great results.

“The Pre-sale Finance Guarantee uses the Government’s strong credit standing to help bring to life prime housing developments, including sites like this one in Rozelle that sat dormant for years. It allows more new homes to be delivered faster, creating jobs, and easing housing pressure for families across NSW.

&nbsp;

“This project was approved under the Infill Affordable Housing Pathway to deliver 59 affordable homes and now, through the Pre-sale Finance Guarantee, we’re making sure those homes are built sooner.

“By removing planning and financial roadblocks, we’re giving developers and lenders certainty, boosting housing supply, and creating vibrant communities where people want to live which means more people in more new homes quicker.”

PERIFA Group Managing Director Fabrizio Perilli said Rozelle Village is set to become the Inner West’s most vibrant, mixed-use precinct catering to the local community and residents.

“The location provides excellent access to local employment and the critical Infrastructure that key workers rely on every day.&nbsp; Strong demand for our development is already evident, with pre-sales for market homes exceeding expectations. As the first developer to be accepted into the NSW Government Pre-Sale Finance Guarantee, we are now able to accelerate construction of these much-needed homes, while working to secure the right Community Housing Provider, ensuring long-term social impact and community benefit.”

[smartcode_project_cta:default project_id=8142]

Are more homes on the way? NSW Gov backs first project in Pre-Sale Finance Guarantee program

Fresh off completing Pienza Neutral Bay, developer <a href="https://www.apartments.com.au/developers/central-element">Central Element</a> is preparing its next move in the coveted Lower North Shore suburb.&nbsp;

Central Element (CE) has lodged plans for an eight-storey apartment building at <a href="https://www.apartments.com.au/new-apartments/54-64-barry-street-neutral-bay-nsw-2089">54–64 Barry Street</a>, a 1,659 sqm site just south of Military Road and the Neutral Bay town centre.

The $52 million development will involve the demolition of four detached homes across four lots to deliver 45 apartments, including eight affordable housing units to be managed by Bridge Housing. The mix will comprise six one-bedroom apartments, 24 two-beds, and 15 three-beds. The apartments will sit above three basement levels with 62 car parking spaces and 50 bicycle spaces.

<a href="https://www.apartments.com.au/architects/mhn-design-union">MHN Design Union</a> (MHNDU) has returned as architect following its work on Pienza, again shaping a mid-rise form with a clear street presence. The design features a lower four-storey podium element that responds to surrounding context, with upper levels recessed to reduce perceived bulk. Communal open space is proposed both at ground level and on the rooftop, the latter including an outdoor kitchen and swimming pool.

“The building has been designed with a lower four-storey element and with building materials commensurate with the character of the area,” Beam Planning noted in its submission to the North Sydney Council.

<img alt="Barry Street, Neutral Bay Nsw 2089" data-entity-type="file" data-entity-uuid="3a28ab3a-b8ba-4476-81cd-e4a8bb84f3a7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Barry-Street-Neutral-Bay-1327x742.png?VersionId=hlgvxszAWXIHgHtdR5HiwIKiSli2lLZV" />

Bridge Housing will manage the affordable units for a period of 15 years, as required under the Housing SEPP’s incentive provisions.

MHNDU’s design report further highlights the site's strategic location just 250 metres from key bus stops and 1.3 kilometres from North Sydney CBD, positioning it for transit-accessible housing supply. In their planning justification, the design team emphasised the site’s compatibility with emerging local character and scale.

Central Element has a solid apartment pipeline spread all over Sydney. They recently completed&nbsp;Pienza, 37 apartments just 500 metres away from the new project, and are currently building Ethos Chatswood, Ballamac House in Coogee, and Bianca on the harbour in Drummoyne.

They have plans for future projects in Mosman, Bondi Beach, Greenwich, Lavender Bay, along with a tower on the edge of Hyde Park.

First look: Central Element unveils second Neutral Bay apartment project

Foreign Investors

The ASX-listed ASF Group have released the final opportunity to buy in their unrepeatable gated Hope Island community, The Peninsula.

Peninsula Collection&nbsp;is the final instalment of apartments in the master-planned development on Harbourview Drive, which is located in the highly sought-after Hope Island Resort.

ASF has already sold out Peninsula Homes, a collection of 17 townhouses, Peninsula Residences, comprising&nbsp;40&nbsp;apartments, and Peninsula Terraces, just 22 terraces, which sit along side the Peninsula Collection.

The Peninsula Collection has 63 apartments, starting from a low $565,000 for the three-bedroom apartments. Since the official launch of Peninsula Collection last month, more than 10 apartments have already been snapped up

[smartcode_project:default project_id=22034 project_image_fid=170599]

They&#39;re likely to be popular with investors, particularly&nbsp;internationally, with Hope Island Resort featuring Foreign Investment Review Board (FIRB) exemption. This gives investors a global re-sale market for future capital returns seldom found in other developments in Australia.

The project is also&nbsp;offering a three-year rental guarantee of five per cent&nbsp;per annum, along with the option for&nbsp;property management services.

Hope Island apartments&nbsp;have seen 3.8&nbsp;per cent price growth per annum over the past 10 years, according to SQM Research. In the last 12 months, apartments have seen&nbsp;16.5 per cent growth.

This can be attributed to a number of factors, not least of which is shortage of supply.&nbsp;According to property consultants Urbis in 2019, The North Shore precinct, which includes Hope Island, was the most undersupplied market on the Gold Coast for apartment buyers. A situation which hasn&#39;t see much improvement until recently with five&nbsp;new apartment developments set for Hope Island.

Rental stock has also remained extremely tight on Hope Island.

The&nbsp;2032 Brisbane Olympics announcement is also backing up this data, ensuring&nbsp;investment from both private and public sectors&nbsp;upwards of hundreds of millions of dollars in infrastructure and more&nbsp;in the near and long term.

[smartcode_project:default project_id=22034 project_image_fid=172301]

Three-bedroom apartments in Peninsula start&nbsp;from $565,000,&nbsp;below the&nbsp;suburb median of $579,000, according to SQM.

Rents have also been on the rise with rental asking prices up 24.8 per cent&nbsp;in the past year and 4.4 per cent per annum for the past 10 years.

&#39;The Peninsula, as an exclusive gated community development on Hope Island Resort&#39;s unique river canal, is located within&nbsp;one kilometre of three golf courses, across the road from the Azzura Greens Resort and&nbsp;Links Hope Island Golf Club.

It&#39;s one of the closest new developments near the Hope Island Shopping Centre, reachable on buggy or foot.

[smartcode_project_cta: project_id=22034]

The Peninsula Collection has 63 apartments, starting from a low $565,000 for the three-bedroom apartments

jordan_55689

Hope Island's Peninsula Collection apartments show great appeal to interstate and international investors

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GUEST OBSERVER
As expected, a range of housing policy measures were introduced in the Budget, including but not limited to:
-National Affordable Housing Agreement providing $1.3 billion of funding per annum to the States to help meet supply targets;
-A $1 billion National Housing Infrastructure Facility;
-A new suburb for Melbourne, with 6,000 homes to be unlocked 10km from the CBD at Maribyrnong (which is not an easy thing to say late at night);
-Managed Investment Trusts to invest in affordable housing, with a 60 per cent capital gains tax discount to invest in this sector;
-Extension of homelessness funding to the States;
-Encouraging downsizing by allowing a non-concessional contribution to made into superannuation for the over 65s up to $300,000;
-First home buyers will be allowed to save for a deposit by salary sacrificing into their superannuation account, though contributions will be capped at just $30,000 per person, and $15,000 per year;
-A Foreign Investment Levy of at least $5,000 on all future foreign investors who fail to either occupy or lease their property for at least six months each year; and
-A reinstated requirement that prevents developers from selling more than 50 per cent of new developments to foreign investors.
There were other measures too, including increasing APRA's powers to control the non-ADI sector, zoning reform, and land release.
Each of these points deserves detailed market analysis in its own right, but today I'll just take a look at the least well understood new policy, which I believe will be significant. 
Negative gearing sideswiped
Instead of quarantining negative gearing deductions to new dwellings as proposed by the Australian Labor Party (ALP), the Treasurer has targeted the following areas of deductions prospectively:
Travel expenses will now be disallowed for investment properties, which is mildly annoying for landlords with plans for investment properties at Port Douglas - there is no longer an incentive for politicians to buy an investment home in their favourite holiday destinations! - but broadly a sensible move which improves the integrity of negative gearing legislation. 
More pertinently, for investment properties bought after 7.30pm yesterday, the Government will also limit previously generous plant and equipment depreciation deductions to only those expenses directly incurred by investors.
<a href="https://www.propertyobserver.com.au/images/2017/05/14/NG.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/14/NG.jpg" alt="">
What this means
Firstly this is a cruel impact for the Quantity Surveyor industry, hundreds or perhaps thousands of whom will wake up today only to discover they have very little to do. These businesses will need to pivot immediately towards new and commercial properties, though competition here will be fierce.
As for investors, going forward landlords purchasing established property will only be able to claim plant and equipment depreciation deductions on assets they have purchased themselves, while buyers of newly constructed dwellings will still be able to make a depreciation claim on plant and equipment. 
Landlords will still be able to claim deductions on the construction component (Division 43, for the building's structure) of the dwelling over 40 years for properties built after September 1987.
The ruling is evidently designed to restrict 'double-dipping' whereby multiple claimants received deductions on the residual value of the existing assets, such as air conditioning, heaters, carpets, televisions, dishwashers, alarm systems, hot water systems, and so on. 
In practical terms, about half of deductions would typically have been claimed for plant and equipment items on established property in the first year of claim, though this really depends upon the age and type of dwelling in question.  
Copied below are just a few examples of Sydney properties bought about a decade ago. As you can see with plant depreciation disallowed on established properties the difference to deductions in the early years of ownership would have been quite substantial, though there is no impact of landlords already in the market.
<a href="https://www.propertyobserver.com.au/images/2017/05/14/DEDUCT2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/14/DEDUCT2.jpg" alt="">
Data compiled by MCG Quantity Surveyors showed that their average claim for depreciation deductions was $9,138, up to half of which was typically for plant and equipment deductions. 
For new individual Mum-and Dad investors - which is most of the landlord market - this is a fairly significant change to tax legislation. 
Market impacts
As always investors will try to find a way around the rules, such as by purchasing chattels off-contract, though presumably the tax office would scope out such a move through an ATO Interpretative Decision (ID) if the practice became widespread.
Overall, it may become more tax-efficient to purchase older style properties in order to renovate them, though for properties built before 1987 the building works component would already be fully depreciated over 40 years. 
Somewhat ironically these changes will may create a divide between the perceived value of new and established properties in the eyes of investors, effectively creating a 'second-hand market' (which is what the Treasurer previously accused the ALP of doing with its own negative gearing proposals). 
Some domestic investors may be inclined to steer clear of new properties for this reason, in turn hurting building approvals and dwelling starts, at least while the dust settles.  
Ultimately what these changes will mean is that rental returns on established property in the lowest-yielding cities of Sydney and Melbourne will have to increase in aggregate, either through higher rents or through lower prices (or, most likely, a combination of the two).
I'll take a look at the wider impact of the Budget next up. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>.
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pwargent-M4siyDbqQY

Budget takes sideswipe at negative gearing: Pete Wargent

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GUEST OBSERVER
Since October 2016, all foreign buyers and developers are subject to a 3% stamp duty surcharge on the acquisition of residential property in Queensland known as Additional Foreign Acquirer Duty (AFAD). The Commissioner has now updated conditions under which ex gratia relief from AFAD can be sought.
This relief is available to foreign persons, as defined in the Duties Act 2001, carrying out ‘significant’ residential development. Relief from AFAD may be granted by the Commissioner on a case-by-case basis. Foreign Persons must also meet regulatory requirements such as complying with the Corporations Act 2001 and complying with Queensland taxation laws. AFAD will only apply to the acquisition of residential land in Queensland by those who are either: 
<ul>
<li>a foreign individual - individuals without Australian citizenship or permanent residents (permanent residents include New Zealanders with either permanent visas or special category visas both defined by the Migration Act 1958 (Cth); </li>
<li>a foreign corporation - companies incorporated outside Australia, or Australian companies where at least 50% interest is with a foreign person/s or related person/s (ie relatives/spouse or partners in a partnership); or </li>
<li>a trust where at least 50% of its interests are held by a foreign person/s. </li>
</ul>
RESIDENTIAL LAND
“Residential land” is land that is or will be solely or primarily used for residential purposes. This includes established houses and apartments, vacant land where a home or apartment will be built, land for development for residential use (ie smaller unit block developments, housing subdivisions, and major developments with a residential component), and/or refurbishment, renovation, or extension of a building for residential use. 
“Residential land” does not include land that will be or is currently used for hotel and motel purposes. 
WHEN EX GRATIA RELIEF CAN APPLY
The Commissioner has announced a number of guidelines and conditions that will be taken into account when determining whether ex gratia relief from AFAD will be granted.
1. The foreign developer undertaking the transaction must be Australia based: 
In order to satisfy the conditions of AFAD relief, a foreign developer will need to use a range of factors to establish that they are ‘Australian based’, including:  
<ul>
<li>whether the foreign entity has a head office or principal place of business situated in Australia; </li>
<li>if the foreign entity has significant management staff and office presence in Australia; </li>
<li>whether its employees are Australian citizens or permanent residents; </li>
<li>any past business dealings within Australia; </li>
<li>the input that the foreign entity’s Australian management staff and employees have toward the operation of the foreign entity in Australia, and; </li>
<li>whether the foreign entity primarily engages with Australian building contractors and suppliers in construction work. </li>
</ul>
2. The foreign developer will need to have complied with any Foreign Investment Review Board (FIRB) requirements in relation to the acquisition of land.
3. The foreign developer must also meet regulatory requirements, such as complying with the Corporations Act 2001 (Cth) and complying with Queensland taxation laws.
4. The development must be significant, or the developer has significant development status.In order for relief from AFAD to apply, the development being carried out must be established as ‘significant development’. This condition will automatically be met if the foreign developer is commencing development or re-development of 50 or more residential lots.
In instances where fewer than 50 lots are being developed, such as in regional areas, the status of ‘significant development’ can still be established if the foreign developer is able to demonstrate that the development makes a significant contribution to the economy, population and social development of that region.
‘Significant developer’ status will also be satisfied if the developer will undertake development or redevelopment of 50 or more residential lots in a 12-month period or, alternatively, the developer averages 50 or more residential lots per year taken on average over a period of up to five years.
5. The foreign developer must primarily employ or contract Australian building contractors and suppliers to engage in the development. This requires that over 50% of the value paid by the developer for goods and services must be paid to Australian contractors and suppliers, or over 50% of the foreign developer’s employees for the development are Australian.
WHAT DO YOU NEED TO DO?
Foreign investors or developers looking to undertake significant development in Australia are able to apply for ex gratia relief from AFAD through the Commissioner. A statutory declaration must be lodged to the Office of State Revenue detailing the basis on which the foreign developer satisfies conditions for relief along with any supporting evidence.
By submitting a request for relief, a foreign developer will also be acknowledging their obligation to inform the Office of State Revenue within 28 days if it no longer satisfies the conditions for relief.
Paul O'Dea is a partner with ClarkeKann, Brisbane.
You can contact him <a href="mailto:p.odea@clarkekann.com.au" target="_blank">via email</a>.
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Where foreign buyers can seek relief from Queensland's added stamp duty surcharge: Paul O'Dea

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GUEST OBSERVER
An estimated 300,000 vacant dwellings across Australia will be unaffected by the Budget’s new ‘ghost house’ tax on foreign investors which will do nothing to increase housing affordability.
QUT property economist Dr Andrea Blake said Australia’s empty housing stock was an overlooked resource in an era of high demand for affordable housing.
Some inner city apartment developments have more foreign investors (20 percent) than domestic owner occupiers (19 percent).
While I welcome a vacant house levy being applied to foreign investors as a mechanism to support other affordable housing initiatives, this new tax will do nothing to help the current issues.
This levy will affect only applications for foreign investment made after 7.30pm on 9 May 2017 rather than the more than quarter of a million dwellings we have going empty.
The $5k per annum tax is unlikely to deter an overseas investor. The only thing it could do is put more money into the pot for other housing initiatives.
Another issue could be determining that an apartment is vacant and ensuring compliance.
“Foreign investment in inner and near city markets has driven supply and pushed real estate prices up while much-needed rental and housing stock from the market goes empty when we have a severe affordable housing shortage.”
Dr Blake said the impact of foreign investment on property values in the inner Brisbane apartment markets had caused much debate.
 “In markets such as Hamilton and West End we have seen a price drop of up to 30 per cent on apartments bought in 2011," she said.
This is because strong foreign investment has created a two-tier market - prices for off-the-plan sales are undoubtedly linked to foreign investment and would not be sustainable at the volume or prices for the domestic market alone.
Consequently the impact has been felt by the second tier of the two-tier market - domestic buyers.
The reasons foreign investors buy in Australia are varied. For some purchasers it is part of a future lifestyle plan and so the apartments are left unoccupied, and, in many cases, not even furnished.
“These apartments still deteriorate and bring down the value of the other apartments in the complex, causing owner occupiers and those who do rent out their properties some distress.”
Andrea Blake is senior lecturer at Queensland University of Technology [QUT] and can be contacted <a href="https://staff.qut.edu.au/staff/blakea/" target="_blank">here</a>.
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'Ghost house' tax won't solve housing affordability: Andrea Blake

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Developers who aim projects at foreign investors are facing bleak times under the Budget package.
New developments will be subject to a 50 percent cap on foreign investment off the plan sale approvals to “safeguard the opportunity for Australian buyers to purchase”.
The new regulation applies only to developments with at least 50 units. 
The current level is 100 percent after the Rudd government lifted it from 50 percent during the global financial crisis.
"We will restore the requirement that prevents developers from selling more than 50 percent of new developments to foreign investor," the Treasurer said. 
Meanwhile, foreign investors in residential real estate will be slapped with a “ghost tax” if they leave their properties empty or not available for rent for at least six months of the year.
The annual charge will be equivalent to the foreign investment application fee which was paid at the time of application and will work out to at $5000 plus annually.
The measure is expected to net $20 million in revenue over the next four years.
Earlier in February Property Observer published an article by Robert Simeon where the agent suggested the need to reverse the off-the-plan ratio back to 50 percent from 100 percent to overseas buyers. 
"We are now going into the ninth year of 100 percent and the only clear impact we are seeing is that foreign investors have become a most dominant player," he wrote.
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Reins tightened for developers aiming projects at foreign investors in 2017 Budget

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Citigroup has announced measures targeting overseas investors, including a ban on interest-only loans.
Following recent regulatory guidance, Citigroup has become the first major lender to take the step, according to The Australian Financial Review.
The Australian Prudential Regulatory Authority (APRA) recently announced a 30% cap on interest-only loans as it said the category, which represents nearly 40% of the stock of residential mortgage lending by banks, was "quite high" by international and historical standards. 
The major changes, which were notified to mortgage brokers last week, will be a ban on interest-only loans for:
<ul>
<li>All non-resident loans;</li>
<li>Loans reliant on foreign income;</li>
<li>Loans requiring Foreign Investment Review Board approval; and,</li>
<li>Loans solely with owner-occupied security.</li>
</ul>
"That means, interest-only repayments will only be allowed for resident loans secured by an investment property," Matt Wood, head of mortgages distribution, told mortgage brokers.
Citigroup has only 1% of Australian property market share, but has a high profile across Asia.
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Citi restricts loans to foreign investors in response to regulatory nudge

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The federal Treasury has proposed to streamline the buying of new property by foreign investors.
It says the current set of rules had unintentionally encouraged non-compliance due to its complicated structure.
It also proposes to encourage investment in sectors like retirement living, aged-care and student accommodation.
The consultation paper by the Treasury's Foreign Investment Policy Unit said the December 2015 overhaul of the foreign investment framework – the biggest in 40 years – had unintentionally “incentivised non-compliance" of the rules when it came to buying new residential property, according to a report in the Australian Financial Review.
Under current rules, foreign investors who want to purchase a new dwelling or block of vacant residential land need to apply individually for each property they are considering and pay multiple fees starting from $5000 per application.
To avoid through this cumbersome process, some foreign buyers were choosing to pay a fine and notify after they had purchased the property, rather than apply multiple times in advance, the paper said.
It suggested the introduction of an "new exemption certificate" giving foreign persons "broad pre-approval to purchase one new dwelling or vacant residential block".
Foreign buyers would then be required to notify Australian authorities when an actual purchase was made. 
The report also seeks to amend the treatment of residential land that is used for an aged-care facility, retirement village or student accommodation so that it is considered "non-vacant commercial land" thus lifting the FIRB screening threshold from zero to more than $55 million.
Some in the industry, like Julius Wei, co-founder of BMY Group, which connects Chinese high-net worth investors with opportunities in Australia, said the country was short of supply in these sectors and foreign investment into them "should be welcomed".
But he said the rules needed to incentivise foreign investors to invest for yield rather than capital gain, otherwise there could be a "huge jump in prices".
"Capital gains [in these sectors] should be taxed heavily," he said.
Wei also backed the proposed exemption certificate for individual buyers as according to him it was unfair to pay multiple fees if a buyer only intended to buy one property.
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Treasury plans to simplify rules for foreign property buyers

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GUEST OBSERVER
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Federal government plans to restrict foreigners from buying more than half the homes or apartments in any new development will only discourage offshore developers from doing business in Australia.
The proposal pitched as one of a raft of possible measures in the May budget to help young Australians enter the property market would be a waste of taxpayers’ money and potentially disastrous for the economy.
Foreign buyers already faced a wide range of restrictions and fees when it comes to investing in property in Australia.
Enough is enough.
The roll-on effect if this latest proposal is included in the May budget could be an economic disaster for Australia. 
This is just a ploy from the Government to make it look like they are doing something for first home buyers but it will just discourage offshore developers from investing in Australia.
The foreign buyer restriction could be the last straw and could result in driving away foreign buyers investing in Australian property. Excessive surcharges and further restrictions on foreign buyers could also lead to fewer international students coming to Australia as well as a slower population growth and a rise in unemployment.
Most buildings developed by onshore developers rely on local funding which typically limits their sales to foreign investors at 15-20 percent of the total sales.
This was not the first-time foreign buyers have faced a limit on the dwellings they can buy in Australia.
Before 2009, there was a regulation that meant developers could only sell half of their new dwellings in any development to foreign buyers.
But this all changed when the Global Financial Crisis (GFC) hit and the then Labor government decided to abolish the foreign limit for off the plan properties. This meant foreign buyers could buy whole developments if they were marketed both locally and overseas.
 
Mark Mendel, is founder and chief executive officer of iBuyNew.com.au and can be contacted <a href="https://www.ibuynew.com.au/" target="_blank">here.</a>
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Foreign investor restrictions could be disastrous: Mark Mendel

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The Queensland government will impose a 3 percent charge on foreign purchases of houses and apartments.
The extra tax follows Victoria's foreign investor surcharge which was recently increased to 7 percent.
The Baird government is preparing to introduce additional property taxes on foreign investors in its budget on June 21.
The Queensland treasurer Curtis Pitt said foreign investors would now have to pay an additional $10,962 on top of the existing $11,214 in transfer duty for a $365,000 house or apartment.
"This will ensure foreign purchasers of residential property, who benefit from government services and infrastructure, make a contribution to their delivery – as local buyers do," Mr Pitt told the Queensland Media Club in Brisbane on Thursday.
"We welcome mutually beneficial foreign investment. We are confident this surcharge – that does not affect Queenslanders – will also not affect the interest foreign investors have in sharing our state's economic strengths."
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