A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Home Ownership

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Australia's home ownership and affordability issue is likely to escalate unless governments at all levels start working in a coordinated manner, according to the Housing Industry Association.
In the submission to the House of Representatives Standing Committee on Economics, HIA observed that reforms in tax, planning, construction infrastructure and land supply could improve the home ownership difficulty that Australia is facing.
"A number of the taxes imposed on the housing sector, and on new housing in particular, are inefficient. The Australia’s Future Tax System report, commonly referred to as the ‘Henry Tax Review’ found that among the vast array of taxes paid by the housing sector, about half of them were highly inefficient. In particular, the Henry Tax Review highlighted: 
<ul>
<li>stamp duties; the existing land taxes; </li>
<li>the effects of zoning on raw land prices; </li>
<li>excessive requirements in the building code; </li>
<li>the effects of planning delays and uncertainties in planning on risk premiums and finance charges of developers; and, </li>
<li>inefficient and excessive costs within infrastructure charges. </li>
</ul>
"One prominent example is stamp duty on property conveyances. Stamp duty on residential property conveyances generated an estimated $9 billion in revenue in 2013/14. Research undertaken for the HIA by Independent Economicsdemonstrates that stamp duty is the most inefficient tax in Australia’s entire taxation system. 
"As a tax on moving, stamp duty on conveyances discourages households from moving home when this decision may better suit their needs in terms of size, location or other amenities. Thus, households do not get the best use out of the available housing stock." 
HIA argued that governments should support infrastructure funding and delivery, including access roads, sewerage systems, water pipes, electricity lines, telecommunications links and community facilities to provide a better environment for new developments.
"Currently, much of the infrastructure for new housing is paid for upfront by developers, with the costs being passed on to builders and ultimately new home buyers. This results in very detrimental effects on the affordability of both new and existing homes. 
"Many infrastructure charges are set by local government, often with little transparency around how the charges are calculated and a lack of clarity from local government in terms of what they deliver in return for the charges.
"The development assessment (planning approval) process in Australia is not harmonised and remains fragmented across the states and territories. 
"Whilst there is a degree of consistency in approach, there is a vast difference between jurisdictions, and more crucially between more than 500 local governments, with respect to which residential buildings require detailed assessments and which may be authorised using a single technical building approval. 
"Significant variations also exist in the administrative processes which support the regulatory requirements for planning assessments. These variations see builders managing layers of red tape and costs to prepare applications and the associated time delays that go with preparing this information."
It is important government maintain land supplies in order to improve housing affordability. HIA has called on governments to create a body responsible for collecting and reporting on land information in an efficient timely manner.
"Australian continues to fail to develop a national reporting scheme for land supply which allows direct comparison of the pipeline for new housing. 
"While some jurisdictions currently report information on land that has been ‘zoned’, land that has approval for subdivision and land that has been completed and is ready for sale, there is no holistic data collection, analysis and reporting mechanism to track and advise our nation’s land supply pipeline. 
"Further, there are six key stages in the land supply pipeline and these should all be collected, analysed and reported. 
"Rezoning of land within areas identified for urban development under metropolitan or regional strategies needs to be more streamlined, including significantly improved coordination of external agencies such as environmental approvals, bushfire management restrictions and the like, which local governments are not well resourced to manage."
Australia supports a national building code, with all state and territory jurisdictions adopting this through their respective regulations. But the way in which this code is adopted provides scope for local government to intervene through their planning approval processes.
"The Australian Building Codes Board has been seeking reforms in this area. However, there appears to be limited appetite by state jurisdictions to make significant changes that would effectively prohibit this conduct by local government."
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jchancellor-FAypfDUnLy

Reform needed to curb home ownership difficulty: HIA

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We’re now seeing home sales trend below $400,000 which is making it much harder for price-sensitive buyers to purchase into capital city markets.
37.4% of all home sales nationally were at less than $400,000 compared to 52.0% between $400,000 and $1 million and 10.6% over $1 million over the 12 months to June 2015. 
Sales below $400,000 were at a record low over the past year and sales above $1 million were at a record high.
<a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.35.28%20AM.png" target="_blank">Click to enlarge</a>
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Across capital cities, 25.1% of home sales were under $400,000, 60.1% were between $400,000 and $1 million and 14.8% were in excess of $1 million. 
Twenty years ago 95.2% of all capital city houses and 96.7% of units sold for less than $400,000. Meanwhile, only 0.4% of all houses and 0.3% of all units sold transacted for more than $1 million.
<a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.37.04%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.37.04%20AM.png" alt="">
 
 
Ten years ago, the proportion of sales under $400,000 had fallen sharply relative to 10 years earlier. At this time, 66.2% of houses and 73.8% of units had sold over the year for less than $400,000. In comparison, 4.0% of houses and 2.3% of units across the capital cities sold for more than $1 million. 
Five years ago, around one third of all capital city house sales (34.1%) and 46.4% of units sold for less than $400,000. At the same time, 10.1% of capital city houses and 3.8% of units sold for more than $1 million.
<a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.38.05%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.38.05%20AM.png" alt="">
 
Looking at the activity over the past year: 
Canberra (7.4%) and Sydney (7.8%) recorded the lowest proportion of house sales under $400,000. 
Hobart (61.2%) was the only city to have more than half of all house sales below $400,000. 
Currently, the unit market offers more opportunity to purchase below $400,000 however, each of Sydney (16.3%), Melbourne (35.9%), Perth (38.5%), Darwin (29.7%) and Canberra (43.3%) recorded a majority of unit sales above this price point. 
CoreLogic RP Data reported a record high proportion of houses and units sold for more than $1 million over the past 12 months. In Sydney, more than a third of all houses (36.8%) sold for more than $1 million. Melbourne had the second highest proportion of sales over $1 million (17.7%). 
Although Melbourne had a record high proportion of houses sold over $1 million it was less than half the proportion of sales in excess of $1 million recorded in Sydney. 
For units, Sydney had the highest proportion of sales over $1 million (11.6%) and was the only capital city in which more than 10% of unit sales were in excess of $1 million. In fact, Sydney had a higher proportion of unit sales over $1 million than each of Brisbane, Adelaide, Hobart, Darwin and Canberra had for houses. 
Although we anticipate that the rate of capital growth will slow over the coming year we still expect values to generally rise. As a result we would expect a further decline in the proportion of homes selling below $400,000. 
 
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Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.
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ckusher-ujnxiKuFQs

Home sales trend below $400,000: Cameron Kusher

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To achieve the Commonwealth Government's priorities of getting children into school, adults into jobs, and making communities safer, the Department of the Prime Minister and Cabinet (PM&amp;C) supports Indigenous housing and home ownership.
Living in a stable environment has proven an efficient way of achieving these priorities.
In the submission to House of Representatives, Standing Committee on Economics Inquiry into Home Ownership, the PM&amp;C named a few topics that affects Indigenous Australians more than others like the administration and use of Indigenous land, availability of finance, employment opportunities and limited financial understanding and exposure to home ownership.
"The Government’s priorities include getting Indigenous Australians into jobs to encourage economic development and advancement for Indigenous people. Regular and increasing incomes will enable more Indigenous people to afford to buy their own homes and enjoy the benefits home ownership can bring. 
"The national rate of Indigenous home ownership is 36%, compared to 68% for the Australian population generally. In order for the rates of Indigenous and non-Indigenous home ownership to reach parity, approximately 65,000 new Indigenous households would need to enter home ownership."
More information can be found in the IBA submission article <a href="/news/home-ownership-barriers-greater-for-aboriginals-torres-strait-islanders">here</a>.
"The rate of remote and very remote Indigenous home ownership is lower than the national rate of Indigenous home ownership, at 18% in 2011. According to the 2011 Census, the rate of Indigenous home ownership slightly increased between the 2006 and 2011 Census. 
"Lower median incomes and higher rates of unemployment than other Australians are key factors affecting Indigenous Australians’ ability to own their own home. In 2011, the average disposable income for an Indigenous Australian was 70 per cent of the income earned by a non-Indigenous Australian.
"The proportion of Indigenous Australians aged 15-64 years who are employed fell from 53.8% in 2008 to 47.5% in 2012-13. At the same time, the proportion of employed non-Indigenous Australians rose, leading to the employment gap between Indigenous and non- Indigenous working age people widening from 21.2 to 28.1 percentage points. 
"Under the National Partnership on Remote Indigenous Housing (NPARIH), signed in 2008, the Commonwealth committed $5.5 billion to the construction and refurbishment of social housing in remote Indigenous communities. 
"Across Australia, 2,698 new houses and 7,071 refurbishments and rebuilds were completed as at 30 April 2015. Under the NPARIH, the Commonwealth’s investment in remote Indigenous housing has been used to leverage home ownership, for example by: 
<ul>
<li>jurisdictions agreeing to progress resolution of land tenure for remote Indigenous land to facilitate home ownership and economic development opportunities; </li>
<li>encouraging states to implement and support sale of social housing policies for existing tenants. A carefully-planned sale of social housing stock can boost the supply of properties in communities, help create a market and diversify housing options; </li>
<li>funding elements which support home ownership, such as cadastral surveys to define lots; and </li>
<li>focusing on regularising tenancy arrangements for remote community residents, which helps develop tenants’ readiness to maintain their own houses if they become home owners. </li>
</ul>
"The Government announced in the 2015-16 Budget its intention to replace the NPARIH with a new Remote Indigenous Housing Strategy (the Strategy) over three years totalling $1.1 billion. Home ownership objectives will form part of the new Strategy. Details of the new Strategy are currently being negotiated. 
"Current administration and use of Indigenous land can be a barrier to Indigenous home ownership. Only certain tenure types offer sufficient security of title and transferability for a lender (generally, IBA) to provide a loan. For example, in the NT, where approximately 50% of land is Indigenous-owned,six communities have agreed 99-year township leases (under section 19A of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) (ALRA)) which offer sufficient transferability for home ownership. 
"In these communities, the head lease is held by the Executive Director of Township Leasing and there can be long-term residential subleases. As an alternative to township leases, individuals can take out leases under section 19 of the ALRA in order to pursue home ownership. 
"However, unless these leases are taken out in communities where other factors are suitable for home ownership, such as where a real estate market exists, it is unlikely lending secured by this land will be possible. In Queensland, anecdotal evidence from some communities suggests while people are interested and apply to purchase social housing, the complex process means many people drop out before becoming home owners." 
According to the 2011 Census, 70% of people rely on social housing in remote communities. Because in most of these communities social housing is the only form of housing available, there are few or no houses to buy building a market gap in these areas. Lending and borrowing becomes a higher risk, which discourages commercial banks from lending in these areas.
"The recently released White Paper on Developing Northern Australia (which can be downloaded <a href="https://northernaustralia.infrastructure.gov.au/white-paper/" target="_blank">here</a>) sets out the Commonwealth’s vision for developing the potential of the north. The White Paper reflects the importance of Indigenous people and Indigenous land to this development and announced directions for reform which could support more home ownership opportunities on Indigenous land in the future."
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Indigenous home ownership highlighted in PM Abbott's housing affordability inquiry submission

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GUEST OBSERVER
As housing prices steadily grow in value, first time property investors are looking beyond first home ownership and are instead purchasing with a view to grow their portfolio.  
The ‘Australian dream’ as we know it is evolving. Coming of age for many young people now means looking to investments and finding security in future personal wealth, rather than short term experiences.
According to a study from Mortgage Choice, first homebuyers are now purchasing their first home as an investment property, with close to a third of investments being first time property purchases.
For the younger market, there are a few reasons that these buyers are looking to investing in property, instead of occupying property.
You can’t have your cake and eat it too
Lifestyle factors motivate young buyers to invest instead of buy. If they are renting in a desirable, trendy location, it is likely they cannot afford to purchase a property there.  
Savvy first homebuyers are looking to invest in a suburb further out and use the rental income of an investment property to boost their pocket and pay off a relatively smaller mortgage.
Sacrificing a ‘live in CBD lifestyle’ is now a consideration as outer suburbs such as Noble Park and Box Hill bring viable rental yields, making investment feasible, as well as encouraging younger buyers into the market. 
All bets down
Educated young investors look to purchase properties in suburbs that are speculated to be growing and eventually more valuable. 
Remembering that this demographic has grown up with anecdotes from older relatives – where property prices have tripled in their lifetime – these young investors are looking for a low-entry point before prices extend beyond their reach.
Young buyers also look to areas that are rapidly gentrifying, eventually evolving into highly desirable areas. Suburbs such as Brunswick, Yarraville and Sunshine are fast being held in high demand for first homebuyers.
Buyers in this demographic are putting their bets on up and coming areas, with an expectation that the either the property will gather mass capital gains, or the area will improve on lifestyle factors through gentrification and be desirable to occupy in future.
Generational shift
Studies demonstrate Gen X’s and Y’s are more comfortable with living with their parents for longer, and as the Australian demographic diversifies, so too do purchasing behaviours. 
The lure of a financial boost from an investment, combined with cultural influences makes living at home more feasible for this generation.
In fact, more than half of Australians aged 18-24 still live with their parents. Rather than key this up to generational apathy, it is about understanding the influences behind and financial motivations that drive changes in the market.
For instance, the influx of refugees to Australia’s shores in the late 1970s through to the early 1990s has now produced a generation of first homebuyers that have been ingrained with the value of fiscal security for the future. Faced with the insecurity of their parents’ past experiences, first to second generation Australians are now in the life-stage of purchasing their own home. 
Julian Augustini is director of Hodges Real Estate and can be contacted <a href="https://www.hodges.com.au/julianaugustini/" target="_blank">here</a>.
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The rise of the junior investor: Julian Augustini

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GUEST OBSERVATION
The current parliamentary inquiry into home ownership is in the midst of public hearings, questioning, among other things, the decline in home ownership among younger Australians.
This, however, is not a recent issue. For a long time young people have found it difficult to purchase their first home. Home ownership rates for households aged 25-34 began to decline close to 40 years ago; declines for those aged 35-44 followed a decade later.
Declines have been most dramatic among low to moderate income households; only younger households in the top quintile of the household income distribution have been (relatively) protected.
<a href="/images/2015/08/12/Screen%20Shot%202015-08-12%20at%209.15.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/12/Screen%20Shot%202015-08-12%20at%209.15.03%20AM.png" alt="" width="850" height="506">
Declines have been most dramatic among low to moderate income households; only younger households in the top quintile of the household income distribution have been (relatively) protected.
<a href="/images/2015/08/12/Screen%20Shot%202015-08-12%20at%209.18.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/12/Screen%20Shot%202015-08-12%20at%209.18.29%20AM.png" alt=""> 
 
<h2>A 40-year problem</h2>
These declines date back to social, demographic and economic changes that began up to 40 years ago. Social change in the 1970s saw the number of both single adult and dual income households increase. This resulted in increasing disparities in household incomes. The increasing numbers of high income households increased housing demand and triggered pressures on the housing market that began to squeeze out lower income households.
These pressures have been maintained by ongoing household income inequality, which has been <a href="https://theconversation.com/senate-report-shows-why-australia-needs-to-talk-about-inequality-36121">increasing in Australia since the mid-1980s</a>, compounded by growing earnings inequality and the impacts of uneven economic growth.
The squeeze on lower income households was intensified during the 1980s by high inflation and high nominal interest rates that limited borrowing capacity and created significant deposit gaps for those already facing income constraints.
From the 1990s, younger households were additionally constrained by the burden of education debt and deterred from home ownership by the implementation of compulsory superannuation which slowed down earnings growth.
As inflation and nominal interest rates fell throughout the 1990s, financial liberalisation contributed to an increase in the availability and reduction in the cost of housing finance. This, along with associated changes in lending criteria, disproportionately benefited high income households, most of whom were already established home owners.
The willingness of established households to invest in both owner-occupied housing and investor housing was fuelled by changes in our tax system that made housing an extremely attractive investment. Tax benefits for owner-occupiers increased in 1985 when owner-occupied housing was exempted from the newly introduced capital gains tax. For housing investors (whether negatively or positively geared), benefits arose from the asymmetric treatment of income and expense. These tax benefits increased in 1999 for debt financed investors prepared to speculate on rising real house prices.
Demand pressures from established households in the past two decades (readily seen in <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0">housing finance data</a>) have reinforced ongoing pressures on urban land markets from population growth.
Declines in agriculture and manufacturing and the rise of the services sector have led to an increasingly urbanised population with jobs being concentrated in the centres of our capital cities. Increased demand has contributed to an increase in, and a steepening of, land price gradients in these cities. This is partly a result of the innate shortage of centrally located land in areas where job concentration is greatest, partly in response to state government strategic policies encouraging infill development, and partly in response to the inadequate investment in, and cost of, transport infrastructure.
In other words, increasing land values in urban locations are an inevitable outcome of the combined impact of:
<ul>
<li>the pressure of income and population growth;</li>
<li>structural change which results in increasing urbanisation and concentration of (knowledge-based) employment in its central locations</li>
<li>a failure to invest in rapid-transit transport infrastructure that facilitates cost-effective access to employment and essential services.</li>
</ul>
Quick fix solutions to the housing affordability problems that have led to declining home ownership rates often look to land release and urban planning policies. These might ease supply shortages driven by a growing population, but they are less likely to work when price growth is coming from increasing demand for bigger and better located dwellings. This demand is driven both by economic growth and by increasing inequality.
Higher housing prices arising from demand and supply pressures have had a number of effects. They have increased the wealth of established home owners and provided a platform for further increases in demand for housing, reflected in upgrading of existing homes, and in demand for second homes and investment dwellings. In so doing, they have excluded a growing proportion of younger households, and particularly low to moderate income households, from home-ownership. Some of this group can’t afford to buy, others would rather rent in a higher cost location closer to job opportunities than live on the outskirts of our metropolitan regions where housing may be more affordable.
<h2>The underlying issues</h2>
Short term cyclical factors are not enough to explain declining rates of home ownership amongst younger households. Underlying structural factors and changing institutional arrangements have been critical.
These include:
<ul>
<li>our system of housing finance that makes it relatively easier for better-off households to accumulate housing assets through debt finance;</li>
<li>our income taxation system that provides these households with an incentive to treat property as a means of accumulating wealth ahead of its more essential role as providing shelter; and</li>
<li>our system of property rights that ensures those who do own land are able to act as rent-seekers by expropriating for their own the increase in land values not of their own making.</li>
</ul>
These institutional arrangements reinforce existing housing and wealth inequalities.
If the decline in home ownership among younger households is not reversed, then ultimately Australia’s aggregate home ownership rate will fall. Whether this matters is an entirely different question. But it does suggest it’s time policy makers recognise the underlying structural drivers of current housing outcomes and consider which households will benefit from new policies that support property ownership.
Judith Yates is honorary associate professor at the University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/judith-yates-148000" target="_blank">here</a>.
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What’s really keeping young and first home buyers out of the housing market? Judith Yates

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Compass Housing Services, a community-housing group currently managing 3,500 properties housing 5,700 tenants in NSW, as well as another 850 properties in Queensland, stated in its submission to the House of Representatives Standing Committee on Economics Inquiry into Home Ownership in Australia, that home ownership will soon only be available for those in the top tax bracket. 
"In the case of Sydney, where already stretched prices have increased by 33% in the last three years alone and the median house prices is fast approaching the million dollar mark, it would be fair to say we are already there. 
"The percentage of Australians aged 25-34 who own their homes (either outright or with a mortgage) has dropped by 17% over the last 25 years. The 35-44 year age bracket has also seen a big fall with just 62% now counting themselves as home owners compared with more than 75% in the early 1980s."
Another change has been the amount of debt households are taking on in order to buy a property. 
"Between 1987 and 2013, Australia’s household debt per person has increased from under $20,000 per person to almost $80,000 per person with more than three quarters of that debt tied up in the domestic property market, an increase of 50% since 1990. 
"A lack of affordability for first home buyers can place additional strain on the rental market which in turn can increase demand on social housing or homelessness services. 
"To plug the affordability gap between social housing and the private rental market, most states offer alternative, less intensive forms of housing assistance. In most states, low-income households struggling to pull together the bond for a rental property can access interest free loans from the state government. 
"It is estimated around 20% of all households in Queensland’s rental market rely one of these loans in order to secure their tenancy."
Tax Policy Impact
"The Australian Council of Social Service has reported more than half of geared investors are in the top 10% of the income scale and 30% earn more than half a million dollars a year. 
"Similarly, the Australia Institute has reported that 55% of the benefits from capital gains tax (CGT) discounts and negative gearing flow to the top 10% of income earners while households in the lower half of the income range receive only about 20 per cent of negative gearing benefits and less than 8% of capital gains benefits.
"If this data is correct, it would seem that while advantageous to certain sections of the community, the current tax treatments have played a major role in concentrating home ownership in the hands of fewer Australians."
Compass Housing Services believes that the lack of affordability is partially a consequence of "well- intentioned tax concessions" and the current tax policies favour investors over first home buyers.
"Data from the Australian Bureau of Statistics indicates less than 10 per cent of home loans to investors are used to construct new housing with the overwhelming majority simply used to purchase established dwellings. 
"Compass urges that a due and proper independent assessment of the current tax system that enables access to benefits to more younger Australians, while boosting supply of new dwellings should be conducted and the government respond accordingly. 
"Compass recommends the reintroduction of a revamped National Rental Affordability Scheme with more stringent controls on eligibility to ensure the benefits flow to those for whom they’re intended. 
"Compass recommends the committee consider legislative options to encourage greater superannuation industry investment in new residential property or affordable housing schemes. 
Compass Housing Services named three key benefits of greater outsourcing of social housing provision.
Additional human services and tenant development opportunities 
"Would allow community housing providers like Compass to help the movement of some social housing tenants into the private rental sector and home ownership, thereby releasing old social housing stock for redevelopment or sale with monies raised reinvested in the provision of greater numbers of new and more appropriate dwellings."
Stock transfer 
"Secondly, following UK experience, we know that significant stock transfer creates the opportunity for organisations to become major agents in housing supply. As capacity and confidence develops, a wider range of human and support services emerge to support tenants. 
"Additionally, favourable borrowing conditions for social housing, not-for-profit organisations encourage entry into direct building of social housing as well as the supply of local infrastructure including schools and medical facilities." 
Innovative funding arrangements for community-housing providers 
"Finally, community-housing providers are able to enter innovative funding arrangements with private sector partners, often through the creation of special purpose vehicles (SPVs). 
"SPVs can bring important capital sources to the social housing market and involve major home building agents within a framework in which the community provider manages tenancies and provides human services and tenant support systems."
 
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Home ownership may be limited to the top tax bracket: Compass Housing Services

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GUEST OBSERVATION
The Submission to the Standing Committee on Economics Inquiry into Home Ownership by Judith Yates Honorary Associate Professor in Economics, University of Sydney, has documented the current rates of, and widespread declines in, home ownership by age and by household income. 
It explains the long-term decline in home ownership amongst younger households in terms of underlying structural trends in the Australian economy, arising from arise from social and demographic factors and from economic and institutional factors. 
In relation to the latter, it highlights the impact of demand from established households both as owner-occupiers and as investors in light of growing income inequality. 
It points, in particular, to the role of the system of housing finance that makes it relatively easier for better-off households to accumulate housing assets through debt finance; the income taxation system that provides them with an incentive to treat property as a means of accumulating wealth ahead of its more essential role as providing shelter; and the system of property rights in Australia that ensures that those who do own land are able to act as rent-seekers by expropriate for their own the increase in land values not of their own making. 
It suggests that increasing land values in urban locations are an inevitable outcome of the combined impact of the pressure of income and population growth; structural change which results in increasing urbanization and concentration of (knowledgebased) employment in its central locations a failure to invest in a rapid-transit transport infrastructure that facilitates cost-effective access to employment and essential services. 
It concludes that that attention needs to be paid to the underlying structural factors that have contributed to declining home ownership if trends over the past 50 years or so are to be reversed. Land-release and urban planning policies might ameliorate supply shortages when pressures on dwelling prices arise from increasing demand driven by population (or, more specifically, household) growth. 
They are less likely to be effective when pressures on dwelling prices arise from increasing demand for bigger and better located dwellings driven by economic growth and/or increasing inequality. In this instance, policies are needed to reduce demand from existing households. 
Although Australia’s home ownership rate has remained relatively stable at around 70% for half a century, much of this stability has arisen because of demographic change with an increase in the proportion of older households with a high incidence of home ownership offsetting a decline in the incidence of home ownership among households who have a reference person less than 45 years old. 
That this decline was already being observed in the late 1980s and has continued at a relatively steady rate since then suggests structural rather than cyclical drivers are critical.
This submission focuses on these trends and on the factors that explain declining rates amongst younger households. 
Home ownership in Australia expanded rapidly in the 1950s from a post-war level of 47% to reach its current level of around 70% by 1961, with much of its post war growth to economic and demographic drivers of the time.3 Home ownership was promoted as a means of solving housing shortages and substandard rental accommodation prior to the Second World War and has been underpinned by both explicit and implicit government policies in the post war period. 
These have included direct subsidies (such as grants to first time home purchasers and subsidized mortgage interest rates) and indirect subsidies (such as exemptions from federal income taxes and state land taxes and concessions on stamp duties). A long standing ideological commitment to home ownership added to these drivers.
Aggregate home ownership in Australia has been relatively stable for the past 50 years since reaching its current level of around 70 per cent in the 1960s. 
Home ownership rates for those in the 25-34 year old group peaked in the mid-1970s and have declined more or less steadily since then, falling by 9 percentage points from 60 per cent to 51 per cent between 1976 and 2001 and by a further 4 percentage points to 47 per cent to 2011 – in other words, by 13 percentage points in 35 years.
The decline for those in the 35-44 year old group followed in the mid-1980s as the earlier cohort aged, falling from 74 per cent in 1986 to 64 per cent in 2011. 
Many studies have shown that age, marital status and family composition are key demographic determinants of home ownership.6 They also have shown that home ownership is significantly constrained by economic factors, such as household income (both current and permanent) and wealth and affected by economic factors (such as housing subsidies and taxation) that affect the relative cost of owning vis a vis renting.
In broad terms, these tenure choice studies show that, for the past 50 years or so, home ownership rates in Australia have been higher for older than for younger households, higher for couples than for single person households and, for each of these household types in each age group, higher for households with children than without children. On an age specific basis, home ownership rates are higher for higher income and higher wealth households. At least since the 1990s, the declines in home ownership rates for younger households have been greatest for lower income households. 
Changes in these socio-demographic and economic drivers over time explain the relative stability of the aggregate home ownership rate in light of declining rates for younger households. In other words, it is the ageing of the population that has been the dominant factor that has kept Australia’s aggregate home ownership rate stable at around 70%.
More complex explanations are required to explain the declining rates for younger households. 
Explaining the decline in home ownership rates amongst younger households in Australia can be broadly categorised into demand factors driven by social and demographic or institutional and economic factors and supply factors that affect the structure of Australia’s urban housing markets.
Socio-demographic factors appear to be the primary drivers of decline from the mid-1970s through to the 1980s with economic and market structure factors and being the primary reasons for this decline being sustained through the 1990s and 2000s. 
Key socio-economic drivers that affected the home ownership rates of younger households from the 1970s arise through changes in household composition of these households and to a growth in single person and single parent households.
These include: An increase in the proportion of two income households 
A decline in marriage rates and an increase in divorce and separation 
A decline in fertility rates
An increasing share of migrants in population growth 
The combined effect of these changes contributed to a relative increase in the proportion of single person and childless couple households amongst those in the 25-44 year age group with lower home ownership propensities than other household types. 
These social changes had two significant but offsetting economic impacts. An increase in the number of two earner households resulted in a move away from the traditional model of a single (male) breadwinner family household and increased the number of potential first home buyers who were higher income households. 
Changes in social attitudes, however, also meant many younger people deferred partnering, and many who had been partnered, divorced or separated which increased the number of single adult households, many of whom had relatively low incomes. 
The combined effect of these changes contributed to changes in income distribution and to market pressures that impeded access for lower income households. Because of the social changes that were occurring, there was some disagreement over whether the decline in home ownership observed from the mid-1970s until the 1990s was simply a temporary deferral or whether it was a result of economic changes that increasingly constrained access so that the decline would more likely be permanent.
This is an edited transcript.
Judith Yates is honorary associate professor in economics, University of Sydney.
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Judith Yates' submission to the Standing Committee on Economics Inquiry into Home Ownership

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The Urban Taskforce, a non-profit organisation representing Australia's property developers and equity financiers, supports a diverse housing type to meet the needs of a multicultural society in its submission to the House of Representatives Standing Committee on Economics Inquiry into Home Ownership in Australia.
"A century ago, there were 4.5 people per household in Australia, currently there are 2.6 persons per household. The Australian Bureau of Statistics forecasts a drop to 2.5 people per household in the next 20 years. 
"The smaller household size and increasing mobility of the population means that there are an increasing number of families and households choosing to rent an apartment over buying a home. 
"Sydney has a lower proportion of households renting when compared to similar global cities around the world. In Berlin, 88% of households are renting, in London it is 41%, while in Sydney at the time of the 2011 Australian Bureau of Statistics Census, had 31% of households renting. 
"Sydney is becoming more like other cities in the world with a move from home ownership to rental housing. Clearly this needs an investor market to develop and build rental housing, which is mainly in the form of urban apartments. 
In the Urban Taskforce study 'Who lives in apartments?' 68% of the renters surveyed attribute affordability to the main reasons why they continue renting, followed by location convenience with 60%, and proximity to public transport links with 56%.
"Already more than 50% of residents of strata units in NSW are renting their home. This reflects the growing sentiment that it is actually desirable to live in an apartment or townhouses over a freestanding home. 
"Townhouses, apartments and other higher-density housing types should be encouraged in residential areas would help create a more diverse range of homes as well as increase general housing supply. Smaller lot sizes and less regulation to encourage innovative housing forms such as ‘Fonzie flats’ would also increase housing diversity. 
"The current Sydney Metropolitan Strategy ‘A Plan for Growing Sydney’ anticipates that Sydney will need an additional 664,000 new homes by 2031. This is approximately 33,200 homes per year. 
"According to the NSW Department of Planning &amp; Environment’s Housing Completion and Housing Approval Monitors, in 2012-2013 only 20,339 homes were completed in the Sydney area, and in 2013-2014 only 22,750. This undersupply is resulting in escalating housing prices and financial difficult for the proportion of the population interested in purchasing their own homes. 
"The Urban Taskforce has encouraged the development of more apartments and around railway stations as a way to house the increasing population of Sydney." 
 
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Urban Taskforce make House of Reps submission

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HomeStart Finance, the home ownership assistance program established by the SA government in 1989, urges the House of Representatives Standing Committee on Economics Inquiry into Home Ownership in Australia to consider the impact of access to affordable, sustainable home finance as an essential component of ensuring home ownership remains within the reach of Australians on low to moderate incomes.
"The demand for home ownership has remained constant for many years, particularly amongst would-be first home buyers. Our research has found that the majority of this segment think home ownership is ‘very important’ (60%), primarily for financial security, however an even greater majority think it is harder to buy a home now than 12 months ago (69%)." Numbers are according to HomeStart’s ‘Home Truths’ research of 499 South Australian first homebuyers in 2015.
"The primary reasons hindering these aspiring home owners are both financial (deposit, start-up costs), and inability to borrow enough to buy a home in their price range – which can be attributed to both supply of housing priced in the low-moderate range, and securing enough funds to make a purchase. 
"Would-be homebuyers facing such issues represent a growing proportion of the potential buying market. While supply issues certainly prevent some from purchase, another sizable portion could become sustainable, wealth-building homeowners if they could find suitable home finance."
When comparing home ownership in Greater Adelaide to Playford between 1991 and 2011, data from ABS Census shows that in 1991 home ownership in Playford was at 53.8% compared to 68.4% for Greater Adelaide households. "By 2011 the gap had narrowed with Playford reporting home ownership of 58.7% (+4.9 pp) and Greater Adelaide 66.1% (-2.3pp)."
"HomeStart’s experience and results demonstrate there is a role of government to play in providing a stepping stone for customers to move from private rental or other accommodation into assisted home ownership. 
"The success of KeyStart in Western Australia provides further evidence of a need for such assistance. Both programs are constrained to operating within their respective states, and not unreasonably so given the states provide capital and ongoing funding. The consequence of this limitation is that the vast majority of Australia’s population is unable to access a valuable pathway to home ownership. 
"We believe offering this bridge from rental to buying in the private market represents a sound policy instrument by which government can help bring the Australian dream of home ownership to fruition, along with the myriad of associated benefits such as increased wellbeing, stability, community connection and financial security."
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HomeStart Finance calls for affordable home finance

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The ANZ submission to the House of Representatives Inquiry into Home Ownership suggests that achieving balance between government and private sector "can assist with managing demand uncertainty and responding to changes in consumer needs". 
"State governments and local councils have been slow to release land in response to the surge in migration from 2004. Natural geographic constraints to expanding the city fringe complicate this process in cities such as Sydney. 
"Adding to this bottleneck, the process for converting rural land to new dwellings can take six or more years in some cities.
"For suburban and inner-urban redevelopments, planning approvals from State government and local council are frequently subject to lengthy delays and policy changes are commonplace. This makes developing inner city properties more expensive and drives apartment prices up."
In the financial institution's view, in order to achieve higher funding availability, lower funding costs and earlier funding of projects, consumers should carry more of the risk.
"At present, buyers in all States except Queensland can pay a 10% deposit for an off-the- plan purchase with the remaining 90% paid on practical completion. ANZ’s experience is that this deposit has proven to be an inadequate pre-estimate of the loss that a developer suffers if a buyer does not complete a contract. 
"When a buyer fails to complete the purchase, a seller is exposed to: 
<ul>
<li>  Loss on sale price if the market has fallen; </li>
<li>  Additional legal expenses associated with the resale; </li>
<li>  Holding costs (including interest on debt, greater levels of land tax and local council rates, and higher insurance premiums); </li>
<li>  Marketing and agent commissions; and </li>
<li>  Costs of enforcement against a defaulting buyer or in claiming a disputed deposit. </li>
</ul>
"Housing demand has been driven over the last decade by rapid population growth, largely resulting from immigration. The acceleration in population growth was most concentrated in Sydney and Melbourne and was not matched by increasing construction of new residential dwellings. Demand is also affected by general economic conditions, including interest rates and labor market conditions. 
"ANZ expects subdued economic conditions in coming years and a higher unemployment rate will impact consumer confidence and the financial capacity of households (ie household income growth), despite an extended period of low interest rates. 
"In recent years, investors have been increasingly attracted to residential property as an asset class due to solid long-term risk-adjusted returns (including low downside volatility), the low cost of borrowing, and solid underlying market fundamentals. Investor's lending now accounts for 50% of total housing finance, slightly higher than peak in 2003-04. 
"We estimate that ‘realised’ foreign investment added around AUD12-18 billion to dwelling investment in 2013-14, and contributed to the increased supply of housing available for rent. 
The top 40% income earners accounts for four-fifths of investor housing debt. The increase in years to save for a deposit contributes to the decline in home deposit affordability.
"An ageing population will depend less on income and more on financial wealth to support home ownership choices. Figure 1 shows the most recent data on households by dwelling type, from 2011. It reveals a strong bias towards detached housing, particularly amongst age groups over 35 years. Higher-density housing is more common among under 35s (37%) and over 65s (23%). 
<a href="/images/2015/08/05/Screen%20Shot%202015-08-05%20at%205.19.16%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/05/Screen%20Shot%202015-08-05%20at%205.19.16%20PM.png" alt="">
"ANZ supports the supervision and measures now in place to monitor risks to financial stability posed by housing.  
"In net terms and absent the policy changes and other recommendations made here, we expect increasing home prices, weak household income growth, stable interest rates and increasing underlying pressure on the existing housing stock will continue to reduce housing affordability across all measures in coming years."
 
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