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


Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


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

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


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

<p><strong>IN BRIEF</strong></p>

<ul>
	<li>
	<p>Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.</p>
	</li>
	<li>
	<p>Construction on The Waterline is complete, with the first residents expected to move in from mid-October.</p>
	</li>
	<li>
	<p>Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.</p>
	</li>
</ul>

<hr />
<p>Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.</p>

<p>Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366708]</p>

<p>Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.</p>

<p>“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.</p>

<p>“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.</p>

<p>“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366709]</p>

<p>The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.</p>

<p>The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.</p>

<p>Each residence also has three secure basement car spaces and additional storage.</p>

<p>“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.</p>

<p>“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”</p>

<p><img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" /></p>

<p>Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.</p>

<p>Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.</p>

<p>Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.</p>

<p>“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.</p>

<p>“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.</p>

<p>“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”</p>

<p>Sky Homes are priced from $3.65 million.</p>

<p>Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.</p>

<p>Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.</p>

<p>Harbour Shores is being marketed by Colliers International.</p>

<p data-end="555" data-start="341">[smartcode_project_cta:default project_id=113271]</p>


Lewis Land opens sky home display as The Waterline completes at Harbour Shores

<p data-end="387" data-start="97">St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.</p>

<p data-end="697" data-start="389">The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.</p>

<p data-end="925" data-start="699">Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.</p>

<p data-end="1217" data-start="927">It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.</p>

<p data-end="1217" data-start="927"><img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" /></p>

<p data-end="1538" data-start="1219">The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.</p>

<p data-end="1723" data-start="1540">The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.</p>

<p data-end="2063" data-start="1725">The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.</p>

<p data-end="2063" data-start="1725"><img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" /></p>

<p data-end="2205" data-start="2065">Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.</p>

<p data-end="4244" data-start="4087">The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.</p>

<p data-end="4598" data-start="4246">The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.</p>

<p data-end="4798" data-start="4600">Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.</p>

<p data-end="4798" data-start="4600">The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.</p>

<p data-end="5032" data-start="4800"><img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" /></p>

<p data-end="5486" data-start="5211">&nbsp;</p>

<p data-end="2205" data-start="2065">The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.</p>

<p data-end="2375" data-start="2207">Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.</p>

<p data-end="2712" data-start="2377">Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.</p>

<p data-end="2751" data-start="2714"><em><a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a></em></p>

<p data-end="2865" data-start="2753">Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.</p>

<p data-end="3067" data-start="2867">Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.</p>

<p data-end="3379" data-start="3069">Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.</p>

<p data-end="3379" data-start="3069"><a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station"><em>First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</em></a></p>

<p data-end="3883" data-start="3659">&nbsp;</p>


First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

Housing

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<p><span>Rental rates for houses fell 0.8% across the combined capital cities over the three months to September, according to CoreLogic RP Data.</span></p>
<p><span>CoreLogic RP Data's September Rental Index Results found over the past year house rents have increased 0.3% with units rising 15% year-on-year. </span></p>
<p><span>The review said annual rental growth is currently at its slowest pace on record and is also well below its 10 year average levels.</span></p>
<p><span>"The 10 year annual rate of rental growth is currently higher than growth over the past year across each capital city," it said.</span></p>
<p><span>"Combined capital city house rents were recorded at $487 per week in September 2015 and unit rents were $462 per week, with the gap in the rental cost remains significantly lower than the actual purchase cost of a house relative to a unit."</span></p>
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jonathanchancellor-7SQnKwU6yx

Rental rates for houses down 0.8%: CoreLogic RP Data 

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<p>The Australian Bureau of Statistics (ABS) released demographic data for the March 2015 quarter earlier today. The data showed that despite a quarterly bounce in population growth, the rate of growth continues to trend lower.</p>
<p>The national population increased by 1.35% over the 12 months to March 2015 which was the lowest annual rate of growth in nine years. Although growth slowed it should still be noted that Australia’s population increased by 315,952 persons over the past year. Although population growth has slowed it remains well above the long term average of 256,801 per annum.</p>
<p><a href="/images/2015/09/25/Chart-13.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/25/Chart-13.jpg" alt=""></p>
<p><span>Over the March 2015 quarter, the national population increased by 93,942 persons, substantially higher than what was recorded over the December 2014 quarter when the nationally population recorded an increase of 64,010 persons.  Over the 12 months to March 2015, the national population increased by 315,952 persons which is the lowest annual increase in population since the 12 month period ending June 2011 when the nation recorded population growth of 308,274 persons.</span></p>
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<p><span><img src="/images/2015/09/25/Chart-23.jpg" alt=""></span></p>
<p><span>At a national level there are two components of population growth, natural increase (births minus deaths) and net overseas migration. Each of these measures recorded a bounce over the past quarter however, both components continue to trend lower on an annual basis. Over the 12 months to March 2015 natural increase was recorded at 142,898 persons and net overseas migration was recorded at 173,054. Natural increase was -9.7% lower over the year while net overseas migration was -16.0% lower, its largest annual fall since March 2011.  </span></p>
<p><span>While the decrease in the rate of natural increase implies a sharp rise in deaths or slowdown in births, it is important that the ABS has noted that there are problems with the preliminary natural increase estimates due to a lag in registering births in both NSW and Vic.  We are likely to an upwards correction to this data over the coming quarters which will lift the rate of population growth.</span></p>
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<p>Across the states and territories the rate of annual population growth is lower compared to the same time a year ago across the board. Although population growth is slowing, the sharpest slowdown in population growth is being felt in WA and NT. In WA the rate of population growth has slowed to 1.4% over the year to March 2015 from 3.5% two years earlier.  Similarly, annual population growth in the NT was 3.0% two years ago and the latest data shows it at just 0.2% over the past year.</p>
<p>Looking at the components of population growth we will ignore natural increase at this juncture because the ABS have highlighted some issues with the data for NSW and Vic. The two other drivers of population growth at a state and territory level are overseas migration and interstate migration.  NSW and Vic are the major benefactors of net overseas migration to Australia while Vic and Qld are the only benefactors of interstate migration.</p>
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<p><span>Over the 12 months to March 2015, net overseas migration to Australia was recorded at 173,054 persons. More than two thirds of net overseas migration flowed to NSW (38.9%) and Vic (31.6%). If you add in Qld (12.1%), the three most populous states accounted for 82.6% of net overseas migration. Although net overseas migration is trending lower, the impact of the end of the mining boom is very clear. In March 2013, annual net overseas migration was recorded at 41,745 persons in Qld, 53,834 persons in WA and 5,173 persons in NT. Over the past year, annual net overseas migration had slowed to 20,857 persons in Qld, 15,383 persons in WA and 1,041 persons in NT.  </span></p>
<p><span>Conversely in NSW where mining is a smaller part of the overall economy, net overseas migration has actually increased from 63,661 persons in March 2013 to 67,272 persons in March 2015. Similarly in Vic net overseas migration has been much stronger over the past 2 years, falling slightly from 55,562 persons to 54,745 persons. Of course while most of the overseas migration is coming to NSW and Vic, most of that is flowing into Sydney and Melbourne fuelling more demand for housing and helping to explain why home value growth in those two cities has been so strong.</span></p>
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<p><img src="/images/2015/09/25/Chart-5.jpg" alt=""></p>
<p>At a national level net interstate migration cancels itself out and does not add to population growth however, at a state level it can greatly impact on population growth. Over the past 12 months, only Vic (9,774 persons) and Qld (6,195 persons) have seen a positive inflow of residents from other states. In fact, net interstate migration into Vic is currently at its strongest level on record. Qld has recorded a slight rebound in net interstate migration however, it continues to hover around its lowest level on record. For the length of this data series (since 1981) NSW has consistently lost residents to other states and that remains the case losing 6,195 residents over the year. </p>
<p>The outflow of residents from NSW is hovering at around record low levels. WA has typically been a benefactor of interstate migration however, it lost a net -1,269 residents last year; its greatest loss since June 2003. Again we can see the impact of the slowing of the resources sector. In March 2013, net interstate migration was recorded at a higher 9,026 persons in Qld and 9,691 persons in WA. Conversely, net interstate migration at that time was recorded at -15,513 persons in NSW and 3,454 persons in Vic.</p>
<p>The trends in overseas and interstate migration in particular show that the population growth tide has turned away from the mining states and is now firmly focussed on NSW and Vic which have relatively little mining sector exposure. These states are also creating more employment opportunities and are subsequently attracting both people migrating from overseas and interstate. Higher population growth means more demand for housing, which is one of the drivers pushing dwelling values higher in Sydney and Melbourne.</p>
<p>The more up-to-date overseas arrivals and departures data from the ABS indicates that permanent and long-term arrivals into Australia have continued to trend lower since March 2015. This indicates that net overseas migration is expected to continue to trend lower over the coming quarters. It is also likely to result in more of these migrants wanting to move to NSW and Vic due to the fact that these are the states where more jobs are being created.</p>
<p>This is of course despite the fact that the two capital cities in these two states recording home value growth which is well in excess of growth elsewhere.</p>
<p><em>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>.</em></p>
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Population growth slumps to its slowest rate in nine years: Cameron Kusher

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<p><span>Australia's four most populous states accounted for a thumping 93.4% of Australia's </span>population growth<span> over the year to Q1 2015, with New South Wales (its total population increasing to 7,597,000), Victoria (5,915,000), Queensland (4,767,000) and Western Australia (2,587,000) being the four states in question.</span><br><br><span>You could more or less chuck a soggy beach towel over the rest. </span></p>
<p><a href="/images/2015/09/25/B1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/25/B1.jpg" alt=""></span></p>
<p> </p>
<p><span>The greatest gains in headcount across the most recent 12 month reporting period were seen in New South Wales (+101,200), Victoria (+97,500) and Queensland (+61,100), and as we've already seen that the recent "births" figures are almost certainly materially </span><a href="https://petewargent.blogspot.co.uk/2015/09/population-growth-surprise" target="_blank">understated</a><span> for the two most populous states. </span></p>
<p><a href="/images/2015/09/25/b2.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/25/b2.jpg" alt=""></span></p>
<p> </p>
<div>Population growth rates have slowed dramatically in the resources states and territories, including in Queensland (+1.3 per cent), and particularly in Western Australia (+1.4 per cent).<br><br>Meanwhile population growth in the Northern Territory has dried up almost completely (+0.2 per cent), and with net interstate migration away from the Top End reaching its most rapid level on record (-3,400) population 'growth' is set to turn negative in due course. </div>
<div> </div>
<div>Population growth has also slowed in another state which is suffering from a "brain drain" - South Australia - where net interstate migration of negative -3,000 has helped to pull the rate of population growth down to just +0.8 per cent, though it still needs to slow further.<br><br>The 'Festival State' has not created a single full time job on a net basis since 2007 and the result has been a horribly increasing rate of unemployment.</div>
<div> </div>
<div><a href="/images/2015/09/25/b2-1.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/25/b2-1.jpg" alt=""></div>
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<div>
<div><strong><span style="text-decoration: underline;">Components of growth</span></strong></div>
<div> </div>
<div>Net overseas migration remains very strong in New South Wales (+67,000) and Victoria (+55,000), but has clearly slowed in the resources states as the mining construction boom begins to fade into the rear view mirror.</div>
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<div><a href="/images/2015/09/25/B5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/25/B5.jpg" alt=""></div>
<div> </div>
<div>
<div>The most interesting trend for me over the last few years has been to note just how few people have been choosing to leave Sydney and Melbourne for cheaper or warmer climes (refer to the net interstate migration chart below), instead opting to stay put for the relative security of their capital city employment.</div>
<div> </div>
<div>That said, I do know more than a few people - including myself, in fact - who have recently decided to relocate from Sydney to Brisbane.</div>
<div> </div>
<div>Brisbane is not only comparatively inexpensive, it also has a warmer climate and is considerably less crowded - and thus if the jobs market is creating the requisite employment it should be a no-brainer from my perspective!</div>
<div> </div>
<div>The data below shows that the trickle of Sydneysiders moving to Queensland <em>has </em>only been a trickle through this cycle to date, and most certainly not a flood.</div>
<div> </div>
<div>That said, net interstate migration for the March quarter into Queensland (+1,300) was plenty stronger than we saw in the prior corresponding period (+700) taking annual net interstate migration into the Sunshine State back up to +6,200 from its recent nadir.</div>
<div> </div>
<div><a href="/images/2015/09/25/B4.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/25/B4.jpg" alt=""></div>
<div> </div>
<div><span>Totting that little lot up we can see in the chart below that population growth has slowed significantly in Western Australia (+35,300) and Queensland (+61,100), and has slowed further in South Australia (+13,900).</span></div>
<div><span> </span></div>
<div><a href="/images/2015/09/25/B3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/25/B3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>On the other hand annual population growth remains supremely strong in New South Wales (+101,200) and Victoria (+97,500) despite the under-reporting of births over the past six months.<br><br><strong><span style="text-decoration: underline;">Housing supply</span></strong>
</div>
<div> </div>
<div>On an obliquely related note, although I can't remember exactly where I read it, somewhere this week was a piece which suggested that the construction of 10,000 apartments over four years at Sydney's Green Square would form part of a "tsunami" of oversupply in Sydney.</div>
<div> </div>
<div>I'm not sure if this was some kind of gee-up, but as you can see the in the figures above with the state population having increased by close to +400,000 over the past four years alone...I dunno, but I reckon someone's having a giraffe.</div>
<div> </div>
<div>Whatever the case, New South Wales has an existing stock of close to <a href="https://petewargent.blogspot.co.uk/2015/09/nsw-dwelling-stock-value-explodes" target="_blank">3 million dwellings</a>, and to my knowledge there has not been any recorded example of such a tiny fraction of additional construction having a material impact on a capital city property market.<br><br>Like London, Sydney is a city which is increasingly constrained in terms of its land supply in desirable locations, and is a city which is more or less permanently in a position of requiring new supply.<br><br>Now granted we're presently constructing proportionately far too many of those "shoebox" type developments - no arguments there - but as the Greater Sydney population continues to mushroom over time any such localised examples of oversupply will only ever be temporary in nature. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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State population trends: Pete Wargent

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<p><span>A Minister for Cities and the Built Environment will help Australia make the most of its productivity powerhouses, says the Green Building Council of Australia (GBCA).</span></p>
<p><span>The Prime Minister Malcolm Turnbull has appointed South Australian Jamie Briggs as Australia’s first Minister for Cities and the Built Environment.</span></p>
<p><span>“This appointment recognises not only the importance of our cities as the engine room of the nation’s productivity and prosperity, but also the central role the built environment plays in tackling many of Australia’s greatest challenges," the GBCA’s chief executive officer, Romilly Madew said.</span></p>
<p><span>“Minister Briggs’ long-awaited appointment will enable us to better tackle the challenges we face – challenges such as climate change, population growth, ageing demographics, congestion, housing affordability, liveability and social inclusion."</span></p>
<p><span>The Property Council of Australia chief executive Ken Morrison warmly welcomed Malcolm Turnbull as "perhaps our most urbanist Prime Minister ever."</span></p>
<p><span>"He has lost no time in placing cities firmly on the federal agenda," Mr Morrison said.</span></p>
<p><span>"Make no mistake about it, this is a key economic appointment.</span></p>
<p><span>"The move recognises that in the most urbanised country in the world Australia's productivity challenges are going to be need to be met in our cities.</span></p>
<p><span>"With the property industry accounting for one ninth of Australia's GDP and employing 1.1 million people - more than mining and manufacturing combined - there is an increasing urban dimension to the economy.</span></p>
<p><span>"Jamie Briggs is a smart appointment as the new Cities Minister given his record in securing the government's $50 billion infrastructure commitment in last year's budget.</span></p>
<p><span>"The move mirrors one already made by the Opposition last year in appointing Anthony Albanese as shadow cities minister, and it is very pleasing to now see a bipartisan approach to the importance of this issue."</span></p>
<p><span>The Property Council also congratulated Scott Morrison - a former head of research for the organisation in the 1990s - on his appointment as federal Treasurer.</span></p>
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Jamie Briggs appointed Australia's first minister for Cities and Built Environment

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<p>For years now I have contemplated how an investment banker would run the Australian economy and now we are about to find out with Malcolm Turnbull taking over the reigns as prime minister.</p>
<p>Straight after the news broke I posted a message on Mr Turnbull’s Facebook page – “Congratulations on becoming Prime Minister of Australia.If I can ask you to do one thing – could you please appoint Kelly O’Dwyer as Housing minister. It’s rather embarrassing that the Australian government does not have a Minister for this important portfolio.”</p>
<p>There are major dark clouds forming and what we might expect is being discussed by a few, and if we are proven correct this will be a major storm that will reverberate across Australia. The problem started back in 2008 when the then prime minister Kevin Rudd and his treasurer Wayne Swan changed the ratio permitting foreign buyers to purchase off the plan in Australia. The ratio was adjusted from 50 per cent to 100 per cent (which is where it currently sits) at that time I wrote that such a move was fraught with danger.</p>
<p>Take Sydney for example, where tens of thousands of new apartments have been sold off – the – plan, there now are grave concerns that the foreign buyers will walk away from the deposits and won’t settle. With interest we should be watching the stock market in China which has lost approximately 40 per cent in the last three months, where when we see stock market corrections money is then diverted into real estate – this time around this may not be the case. Then we see that volatility on the global equity markets in August was the highest since 2011.</p>
<p>The first signs of cracking in the residential market will be, when these new developments are completed, how many apartments that were sold off the plan are immediately placed back on the market. BIS Shrapnel recently reported that NSW is set to become Australia’s top home builder in 2016, having overtaken Victoria which has held this position since early 2000.</p>
<p>Should the foreign buyers spook then the new construction will in all probability come to a grinding halt where history shows prices start falling significantly due to an oversupply on the markets. Thanks to the overseas buyer ratio being doubled this spells double trouble, given what we have seen with the real estate investment markets has been unprecedented. Historically we have absolutely no measures on what may happen aside from expecting the worst.</p>
<p>We also see that APRA’s policy initiatives are now cooling the markets which may need some urgent critiquing given that if the property markets cool too quickly this will spook the foreign buyers in to a frenzy of defaults.</p>
<p>On the flip side we have the Australian government via the Australian Taxation Office (ATO) forensically examining all property transactions for existing homes that may have been illegally acquired – I predict this will be huge. There is approximately another 6 weeks left of the amnesty period before the ATO starts prosecuting.</p>
<p>Thus far this crackdown on illegal purchases has more than doubled to over 500 investigations and that’s before the amnesty period ends – predominately at this stage the ATO is relying on public tip offs. Treasurer Joe Hockey let the cat out of the bag this week when he commented “So we are getting on with the job of enforcing the laws. There has been no enforcement and no successful order for at least the last 20 years. But we have taken this decision to ensure that there is integrity in the foreign investment regime and that those people who unlawfully hold Australian residential real estate are caught.”</p>
<p>Going by that one must be thinking that this investigation is so huge that they are now looking back 20 years – which would lead to an unprecedented number of divestment orders in 2016. Should we see the off – the – plan investors defaulting it would not be smart for the integrity of Australian property prices to also run divestment orders on existing dwellings.</p>
<p>Another point that needs raising is that NSW is doing the major lifting in terms of the Australian economy as this is the hub for economic momentum. The Reserve Bank of Australia, APRA, ATO, lenders and elected politicians need to immediately start consulting property developers and industry specialists and start drawing up a battle plan.</p>
<p>Until a clearer picture is presented foreign ownership rates from 100 per cent need to be cut hard. So that’s why Malcolm Turnbull needs to appoint a Housing minister next Monday as he/she will have plenty of work to do given I see the property markets now on a “High Alert”.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 64</p>
<p>• Number of houses on the market last week – 56</p>
<p>• Number of houses on the market this week – 52</p>
<p>• Number of apartments on the market this time last year – 44</p>
<p>• Number of apartments on the market last week – 49</p>
<p>• Number of apartments on the market this week – 51</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year –10</p>
<p>• Number of houses on the market last week – 6</p>
<p>• Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year – 16</p>
<p>• Number of apartments on the market last week – 20</p>
<p>• Number of apartments on the market this week – 22</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 2</p>
<p>•Number of houses on the market this week – 3</p>
<p>• Number of apartments on the market this time last year– 33</p>
<p>• Number of apartments on the market last week – 37</p>
<p>• Number of apartments on the market this week – 29</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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Are foreign buyers about to ‘short’ our residential markets? Robert Simeon

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<div class="column"><span style="line-height: 1.3em;">GUEST OBSERVER</span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">The latest economic data highlights the balancing acts being played out in the Australian economy. Mining is in transition from booming investment activity to the production phase of the cycle. As a result mining profits and sales fell in the latest quarter. But while mining profits are retreating, profits in other parts of the economy are rising, in fact hitting record highs.</span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">There is also the balancing act in the housing sector. Financial authorities want to see less frothy growth in investor housing lending, but at the same time want to maintain lending growth in business and owner-occupier home lending. The good news is that this is also happening.</span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">So from the Reserve Bank’s standpoint there is nothing to do but to monitor the transitions to ensure that the process moves as smoothly as possible. </span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%202.40.33%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
<div class="column"><span style="line-height: 1.3em;"><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%202.40.33%20PM.png" alt=""></span></div>
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<p style="line-height: 1.3em;"><strong><span style="line-height: 1.3em;">What do the figures show?</span></strong></p>
<p style="line-height: 1.3em;"><strong><span style="line-height: 1.3em;">B</span><span style="line-height: 1.3em;">usiness indicators</span></strong></p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">Company operating profits </span><span style="line-height: 1.3em;">fell for the fifth straight quarter, dropping by 1.9 per cent in the June quarter. Profits fell in 10 of the 15 industry groups. Profits fell by 9.9 per cent in </span><span style="line-height: 1.3em;">Mining, </span><span style="line-height: 1.3em;">fell by 0.8 per cent in </span><span style="line-height: 1.3em;">Manufacturing </span><span style="line-height: 1.3em;">and fell by 4.7 per cent in </span><span style="line-height: 1.3em;">Construction. </span><span style="line-height: 1.3em;">But profits rose by 3.3 per cent in </span><span style="line-height: 1.3em;">Retail Trade.</span></p>
<span style="line-height: 1.3em;">In the year to June (2014/15 year)</span><span style="line-height: 1.3em;">, profits totalled $255.8 billion, down 5.4 per cent over the year and the biggest annual decline in just over two years. Non-mining profits rose by 2.2 per cent to a record $184.7 billion in 2014/15.</span>
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<span style="line-height: 1.3em;">Unincorporated gross operating profits </span><span style="line-height: 1.3em;">actually rose by 5.1 per cent in the June quarter after rising by 6.8 per cent in the March quarter. </span><span style="line-height: 1.3em;"><span style="line-height: 1.3em;">Business gross operating profits  </span></span><span style="line-height: 1.3em;">fell by 0.9 per cent in the June quarter after rising 0.6 per cent in the March quarter. </span><span style="line-height: 1.3em;">Company profits before tax </span><span style="line-height: 1.3em;">fell by 11.3 per cent in the June quarter after rising 13.7 per cent in the March quarter.</span>
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<span style="line-height: 1.3em;">Inventories </span><span style="line-height: 1.3em;">rose by less than 0.1 per cent in the June quarter after rising by 0.6 per cent in the March quarter. Inventories rose in </span><span style="line-height: 1.3em;">Manufacturing </span><span style="line-height: 1.3em;">(up 0.9 per cent) and in </span><span style="line-height: 1.3em;">Electricity, gas, water and waste services </span><span style="line-height: 1.3em;">(up by 2.6 per cent). Inventories fell in </span><span style="line-height: 1.3em;">Mining </span><span style="line-height: 1.3em;">(down by 0.3 per cent), </span><span style="line-height: 1.3em;">Wholesale Trade </span><span style="line-height: 1.3em;">(down 0.4 per cent) and in both </span><span style="line-height: 1.3em;">Accommodation &amp; food services </span><span style="line-height: 1.3em;">and </span><span style="line-height: 1.3em;">Retail Trade </span><span style="line-height: 1.3em;">(both down by 0.2 per cent).</span>
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<div class="column">
<span style="line-height: 1.3em;">Sales rose in 8 of the 15 industry sectors in the June quarter</span><span style="line-height: 1.3em;">. Sales rose the most in </span><span style="line-height: 1.3em;">Transport, postal and warehousing </span><span style="line-height: 1.3em;">(up 3.1 per cent) followed by </span><span style="line-height: 1.3em;">Rental, hiring and real estate services </span><span style="line-height: 1.3em;">(up 2.6 per cent). Sales fell most in </span><span style="line-height: 1.3em;">Mining </span><span style="line-height: 1.3em;">(down 2.5 per cent) and </span><span style="line-height: 1.3em;">Construction </span><span style="line-height: 1.3em;">(down 0.8 per cent).</span>
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<br><span style="line-height: 1.3em;">The value of all sales by industry </span><span style="line-height: 1.3em;">fell for only the first time in nine quarters, down by 0.2 per cent in real terms in the June quarter to be 1.4 per cent higher than a year ago. In the March quarter sales were growing at the fastest pace in 31⁄2 years.</span>
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<div class="column">
<br><span style="line-height: 1.3em;">In current prices, sales </span><span style="line-height: 1.3em;">rose in five states and territories in the June quarter: NSW &amp; Queensland (both up 1.5 per cent), Tasmania (up 1.1 per cent) and Victoria &amp; South Australia (both up 1.0 per cent).</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Sales fell </span><span style="line-height: 1.3em;">in Western Australia (down by 3.7 per cent), ACT (down by 1.1 per cent) and Northern Territory (down 0.4 per cent).</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Wages &amp; salaries </span><span style="line-height: 1.3em;">rose by 1.1 per cent in the June quarter to be up 1.6 per cent over the year, weaker than the 2.3 per cent annual growth in the Wage Price Index.</span>
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<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><strong><span style="line-height: 1.3em;">Private sector credit</span></strong></div>
<div class="column">
<br><span style="line-height: 1.3em;">Private sector credit (lending) </span><span style="line-height: 1.3em;">rose by 0.6 per cent in July after a 0.4 per cent gain in June. Annual credit growth</span><br><span style="line-height: 1.3em;">rose from 5.9 per cent to 6.1 per cent.</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Housing credit </span><span style="line-height: 1.3em;">grew by 0.6 per cent in July after a similar rise in June. Housing credit is up 7.4 per cent on a year ago – the strongest annual growth since October 2010.</span>
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<br><span style="line-height: 1.3em;">Owner occupier housing </span><span style="line-height: 1.3em;">credit rose by 0.5 per cent in July to stand 5.3 per cent higher than a year ago – the fastest annual growth since April 2012. </span><span style="line-height: 1.3em;">Investor housing </span><span style="line-height: 1.3em;">finance lifted 0.6 per cent in July – the slowest growth in almost two years (equal the rate in October 2013). Investor housing credit was up by 10.8 per cent over the year, down from 11.1 per cent annual growth in June.</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Personal credit </span><span style="line-height: 1.3em;">was unchanged in July after rising 0.3 per cent in June. Personal credit was up 0.9 per cent over the year.</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Business credit </span><span style="line-height: 1.3em;">rose by 0.7 per cent in July – the biggest rise in six months. Business credit is 4.8 per cent higher than a year ago.</span>
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<div class="column">
<br><span style="line-height: 1.3em;">Term deposits </span><span style="line-height: 1.3em;">held with banks rose for the first time in six months, up by $4.7 billion in July to $511.3 billion. But term deposits are down 5.0 per cent on a year ago – the sharpest decline in 12 years. Term deposits have been regularly falling in annual terms for 20 months – the longest period in records going back almost 30 years.</span><br><p style="line-height: 1.3em;"><strong>What is the importance of the economic data?</strong></p>
<p><span>The quarterly </span><span>Business Indicators </span><span>publication by the Bureau of Statistics contains measures such as inventories, company profits and income from sales. Higher inventory (stock) levels can be either intentional or unintentional. If stocks are low and sales are expected to rise in the future, businesses will seek to build up stocks. However an unintentional build-up in stocks is where sales fall short of expectations, leaving more goods on the shelves than desired. If profits are increasing then this may point to increased capital spending and employment in the future. Rising profits are also a sign of favourable business conditions. </span></p>
<p><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%202.47.59%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<span style="line-height: 1.3em;">Private sector credit </span><span style="line-height: 1.3em;">figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.</span>
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<br><span style="line-height: 1.3em;">The </span><span style="line-height: 1.3em;">Housing Industry Association </span><span style="line-height: 1.3em;">releases data on the </span><span style="line-height: 1.3em;">sales of new homes </span><span style="line-height: 1.3em;">each month. The HIA collects the data each month from a sample of Australia's largest 100 home builders. The survey covers around 14 per cent of the home building industry.</span>
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<br><strong><span style="line-height: 1.3em;">New home sales</span></strong>
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<br><span style="line-height: 1.3em;">New home sales fell by 0.4 per cent in July. Sales of multi-units fell by 4.2 per cent while detached house sales rose by 0.7 per cent.</span>
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<br><span style="line-height: 1.3em;">The Housing Industry Association reported: </span><span style="line-height: 1.3em;">“In the month of July 2015 detached house sales increased by 4.2 per cent in New South Wales. Detached house sales fell by 2.3 per cent in Victoria and by 4.9 per cent in Western Australia. Sales were close to flat for the month in Queensland (-0.6 per cent) and South Australia (-0.2 per cent).</span>
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<br><span style="line-height: 1.3em;">The annual peak for detached house sales has passed. Over the three months to July this year detached house sales fell by 2.8 per cent to be 3.4 per cent lower when compared to the three months to July 2014.</span>
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<div class="column">'<span style="line-height: 1.3em;">Multi-unit’ sales peaked in May this year and fell by 4.2 per cent in July following a decline of 2.9 per cent in June. Over the three months to July this year multi-unit sales increased by 8.3 per cent, but it was the strength of the May result that drove the quarterly outcome.</span>
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<div class="column"><strong><span style="line-height: 1.3em;">What are the implications for interest rates and investors?</span></strong></div>
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<br><span style="line-height: 1.3em;">The Australian economy is evolving as best as can be expected. There is no need for the Reserve Bank to either lift rates or cut rates in the current environment.</span>
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<div class="column"><span style="line-height: 1.3em;">Our review of the profit-reporting season showed that Corporate Australia remains in good shape. While profits are understandably down in mining and engineering sectors, they are up in consumer and housing-dependent areas. Bottom-line earnings are generally improving despite the fact that a large number of companies have taken the opportunity of favourable financials to write down the value of assets such as intangibles.</span></div>
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<br><span style="line-height: 1.3em;">Over the last seven years the Australian economy has experienced the biggest structural swings in a century. Mining investment and prices soared; resource prices retreated; mining investment was completed; mining production has ramped up to record highs; interest rates fell to record lows; and home building approvals hit record highs. Major swings and transitions have already occurred and the process is a long way from over.</span>
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<br><span style="line-height: 1.3em;">The Reserve Bank can feel justifiably happy about how the process has gone so far. </span>
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<div class="column"><span style="line-height: 1.3em;"><span><em>Craig James</em></span><em> is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em></span></div>
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Investor home lending slows: Craig James

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<p>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.</p>
<p>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.</p>
<p>"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: </p>
<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>
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<p>"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. </p>
<p>"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." </p>
<p>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.</p>
<p>"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. </p>
<p>"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.</p>
<p>"The development assessment (planning approval) process in Australia is not harmonised and remains fragmented across the states and territories. </p>
<p>"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. </p>
<p>"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."</p>
<p>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.</p>
<p>"Australian continues to fail to develop a national reporting scheme for land supply which allows direct comparison of the pipeline for new housing. </p>
<p>"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. </p>
<p>"Further, there are six key stages in the land supply pipeline and these should all be collected, analysed and reported. </p>
<p>"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."</p>
<p>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.</p>
<p>"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."</p>
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Reform needed to curb home ownership difficulty: HIA

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<p>The Property Council of Australia is driving the development of retirement villages due to the level of Australians aged over 65 expecting to double in the next ten years.</p>
<p><span>A new report released by the Property Council in conjunction with research firm RPS, titled The Five A's of Retirement Living, </span><span style="line-height: 1.3em;">recommends a suite of actions to promote retirement villages investment that includes setting retirement living housing targets, fast-tracked approvals and making retirement living a permissible development in all residential zones.</span></p>
<p><span>Mary Wood, executive director of Retirement Living said by 2025, the demand for retirement living accommodation for people aged over 65 years is expected to double. But at the current rate of development, there simply will not be enough supply of retirement communities to meet demand.</span></p>
<p><span style="line-height: 1.3em;">“The rapid increase in the number of older Australians needs to be matched by an increased determination by politicians and town planners to support the development of more seniors housing,” she said.</span></p>
<p><span style="line-height: 1.3em;">“Purpose-built homes in retirement communities that are well located and expressly designed to support older Australians to be happy, independent and socially engaged is an important goal – but not one that our planning systems are well placed to achieve."</span></p>
<p><span>The report contains a suite of recommendations for state and local governments, including:</span></p>
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<li><span>Policies that incentivise the integration of villages with the general community; </span></li>
<li><span>Development yield improvements including car parking flexibility, landscape area reductions and lower open space infrastructure charges; and</span></li>
<li><span>Rate rebates for retirement village dwellings. </span></li>
</ul>
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Seniors housing crisis threat looming: Property Council of Australia

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<p><span style="line-height: 1.3em;">Capital gains for the detached housing market continue to outperform the unit market, according to new figures released by CoreLogic RP Data.</span></p>
<p><span style="line-height: 1.3em;">Capital gains for the house market over the past 12 months are at 1.3%, with units at -0.6% </span></p>
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Canberra unit capital gains down 0.6%: CoreLogic RP Data  

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<p><span>Home values are still falling in Darwin, with the latest figures from CoreLogic RP Data showing the largest annual decline since early 2012. </span></p>
<p>The median house price is $570,000 and the median price for units $441,500.</p>
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