ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Lagoon Main Beach approaches sell-out as local buyers drive $75m in sales

Land Tax

Removing stamp duty would increase housing mobility, and lead to more efficient use of the nation’s housing stock, according to research by the National Housing Finance and Investment Corporation (NHFIC).

Families across all states and territories, except the ACT, are paying substantially more stamp duty when they move currently than they were 20 years ago, it noted.

Victoria now has Australia’s largest effective rate of transfer duty on a median property at around 5.4% (around $45,000), compared to 4.2% (around $12,000) back in 2002.

The report dubbed stamp duty an inefficient tax that impacts housing market mobility.

A household that bought a Sydney median priced house four times over the past 20 years would have paid more than 10 times the amount of duty than a household making only one purchase at the start of this period, it pointed out.

“Households that are considering downsizing and upsizing, or just seeking more space when they are working at home during COVID-19 wouldn't be penalised under a broad-based land tax compared with the current stamp duty arrangements across most states,” NHFIC CEO Nathan Dal Bon said .

“Encouraging more household mobility through reductions in stamp duty leads to more efficient use of the housing stock which means people can better ‘right-size’ their own housing arrangements in line with their individual preferences,” Dal Bon added.

The aim of transitioning from stamp duty to land tax is not to increase revenue per se, and the paper demonstrates that the transition can be achieved in a revenue neutral way.

"The typical household across all states (except the ACT) would be better off paying land tax on a median property than transfer duty," it suggested, noting a household in NSW would have to pay a broad-based land tax for more than 14 years to be worse off, which is greater than the 12 year average holding period of a property.

It noted the challenge of a revenue neutral swap between transfer duty and a broad-based land tax, under a slow house price growth scenario, would require approximately three times the amount of revenue as a faster transition ($94bn over a 20-year transition, compared with $32bn under a 5-year transition).

The National Housing Finance and Investment Corporation (NHFIC) commenced operations in 2018,  a corporate Commonwealth entity, part of the Treasury portfolio of agencies. 

The responsible Minister is the Minister for Housing, Michael Sukkar.


Removing stamp duty will have the benefit of reducing barriers to home ownership, according to the report of the National Housing Finance and Investment Corporation

jchancellor-FAypfDUnLy

Federal Treasury entity gets behind push to scrap state government stamp duty

<h2 class="legacy">EXPERT INSIGHT</h2>

Victorian treasurer Tim Pallas&rsquo;s three-pronged strategy to raise an extra <a href="https://www.premier.vic.gov.au/contributing-fair-share-stronger-victoria">A$2.7 billion in property taxes</a> over the next four years is a case of two out of three ain&rsquo;t bad.

<h2>Land tax ✅</h2>

First, Pallas will raise $1.5 billion over four years by lifting land taxes on landholdings worth between $1.8 and $3 million by 0.25%, and by 0.3 percentage points on landholdings worth more than $3 million.

This is a good move. Taxes levied on the value of landholdings are among the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">most efficient states can impose</a>. And land taxes offer a more sustainable and less-volatile tax base than stamp duties on property transactions.

<h2>Windfall gains levy ✅</h2>

Second, developers and landowners who reap windfall gains when their property is rezoned will be hit with a 50% levy if the gain is $500,000 or more, with the tax phasing in from windfalls above $100,000. The new levy will not apply to growth-zone land where developers already pay the <a href="https://www.sro.vic.gov.au/growth-areas-infrastructure-contribution">Growth Areas Infrastructure Contribution </a>charge.

Again, this is a good move. It should reduce incentives for <a href="https://www.theage.com.au/politics/victoria/how-money-talks-in-victorian-politics-five-lessons-from-the-casey-corruption-scandal-20201218-p56oo3.html">corruption</a> when planning applications are decided.

As a tax, collecting unearned windfall gains is extraordinarily efficient, so efficient it shouldn&rsquo;t even be called a tax but a charge for a change in allowable land use, which is <a href="https://theconversation.com/our-states-are-crying-poor-they-wouldnt-if-they-charged-for-rezoning-142838">what it is</a>.

[smartcode_project:default project_id=95340 project_image_fid=160800]

The new re-zoning charge won&rsquo;t raise much in the short term: just $124 million over four years.

But the next time there is a major rezoning &mdash; think of the bonanzas that have flowed to land holders from previous rezonings in <a href="https://www.theage.com.au/national/victoria/report-slams-matthew-guy-on-rezoning-of-fishermans-bend-20151019-gkcyrv.html">Melbourne&rsquo;s Fisherman&rsquo;s Bend</a> and the Docklands &mdash; it will deliver taxpayers hundreds of millions if not billions.

The property lobby <a href="https://www.afr.com/property/commercial/victorian-windfall-tax-will-hit-urban-infill-developers-say-20210516-p57sbh">has been quick to claim</a> that charging for rezoning windfalls will deter higher-density development in Melbourne, or increase prices. Both claims should be ignored.

Capturing a share of rezoning windfalls won&rsquo;t deter developers. Instead it could make it easier to solve Melbourne&rsquo;s housing crisis while reducing incentives for corruption in planning decisions.

Planning rules make it hard to build more housing in inner suburbs. Zoning for higher density is necessary, but unpopular. Local residents partly object because they think developers are getting a free kick.

The Victorian treasurer&rsquo;s decision to make the winners pay for some of their winnings will make the process fairer and less divisive.

It&rsquo;s a myth that charges for changes in land use raise home prices. Australian evidence suggests those lucky enough to own land before it is rezoned <a href="https://www.sciencedirect.com/science/article/abs/pii/S0264275117301051">pay the charges</a> rather than pass them on to eventual homebuyers, which might be why they object.

And future developers will pay less for their land, because the expectation of windfall gains won&rsquo;t be built into the price.

The ACT Government has charged <a href="https://www.planning.act.gov.au/leasing-and-titles/varying-crown-leases/lease-variation-charge">75%</a> for land value uplift for three decades without scaring away developers.

But the third prong of the Pallas plan &mdash; lifting stamp duty from 5.5% to 6.5% on properties that sell for more than $2 million &mdash; is a step in the wrong direction.

<h2>More stamp duty ❌</h2>

Stamp duties are among the most <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">inefficient</a> and inequitable taxes Australia has.

They discourage people from moving to housing and cities that better suit their needs, and they are inequitable discourage people from moving to better jobs.

And the revenue they provide is volatile: any slowdown in property sales &mdash; as happened during COVID took hold &ndash; punches a big hole in state budgets.

Few Victorians will be affected by this tax hike: less than 5% of all Melbourne homes (and just 0.5% of regional Victorian homes) went for $2 million or more last year, according to <a href="https://twitter.com/timlawless/status/1394500338846081026">Corelogic</a>.

Someone buying a $2.5 million home will pay just an extra $5,000 in stamp duty.

But Pallas should be looking to replace stamp duty with broad-based land taxes, as <a href="https://www.treasury.nsw.gov.au/property-tax-proposal">NSW</a> is planning to do.

Tax hikes are rarely popular. But they will become increasingly necessary as states try to repair their budgets after the COVID crisis.

In the quest for a better tax system, Pallas has just taken two steps forward, and one step back.

<img alt="The Conversation" f="" height="1" j="" m8tkrlktj="" src="https://counter.theconversation.com/content/161353/count.gif?distributor=republish-lightbox-basic" width="1" />

<hr />
<a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Household Finances, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-lesson-for-australia-out-of-victorias-property-tax-hikes-two-out-of-three-aint-bad-161353">original article</a>.

Victorian treasurer Tim Pallas’s three-pronged strategy to raise an extra A$2.7 billion in property taxes over the next four years is a case of two out of three ain’t bad

jordan_55689

The lesson for Australia out of Victoria’s 3 property tax hikes

It was announced over the weekend that the Victorian Government will seek to increase stamp duty and land tax from July 1.

Stamp duty will rise from 5.5 per cent to 6.5 per cent for those purchasing any property over $2 million and a land tax increase from 2.25 per cent to 2.55 per cent for properties valued over $3 million.

There will be a larger increase in land tax on properties valued between $1.8 million and $3 million. There will be a 19 per cent from the current 1.3 per cent, up&nbsp;to 1.55 per cent.

Urban.com.au CEO Mike Bird says the proposal will have the greatest effect on downsizers and younger families.

&quot;The policy feels inconsistent with the recent federal government budget focusing on encouraging older generations to down size from the family home into something more suitable (down sizers are now able to contribute to $300k from their home sale into their superannuation at a more favourable tax rate), freeing up that housing stock for younger growing families,&quot; Mr Bird said.

&quot;We want to see barriers removed to enable home owners to &quot;rightsize&quot; into something that makes sense for their living requirements and this policy isn&#39;t helping achieve that.&quot;

One of Melbourne&#39;s most recognised developer,&nbsp;Tim Gurner, says it is not the time to kill one part of the economy that is providing strength and jobs for Australia.

&quot;These&nbsp;draconian style tax regimes need much deeper and thorough conversation and thought!!&quot; Gurner says.

[smartcode_project:default project_id=2484 project_image_fid=40832]

Gurner says the introduction can only lead to a&nbsp;big jump in house prices, as everyone just adds the additional cost to prices and supply drops, which will in turn make&nbsp;it harder for families to enter the home market with stamp duty hike.

Gurner adds that it will also&nbsp;de-incentivise developers to be active which reduces supply and will increase cost of living and homes. He says that all of these factor&nbsp;will lead to huge job losses when they filter through.

Illan Samuel, head of&nbsp;Samuel Property who specialise in luxury projects, says the proposed stamp duty increase will only lead&nbsp;to the additional cost being passed onto buyers, again putting pressure on affordability of property in Victoria.

&quot;Developers work to commercial&nbsp;returns,&quot; Samuel says.

&quot;If the cost of doing business increases, this will be passed onto the consumer - like any other business.

[smartcode_project:default project_id=13991 project_image_fid=36399]

&quot;However, if the consumer will not absorb the cost - then no transaction will occur, and ultimately the economy suffers.&quot;

Samuel says, in his opinion, that this is the&nbsp;complete opposite of what the Labour government should be proposing.

&quot;A property lead recovery out of Covid-19 market conditions, which saw Melbourne hit the hardest with long and harsh lockdowns impacting on the ability to transact is vital.

&quot;Increasing stamp duty after initial market runs will only stimy activity and create negative association to property, particularly off the plan (high density) property which, unlike the house and land sector did not benefit from the Home Builder stimulus. I

&quot;I would expect fewer transactions, leading to less stamp duty collected by the government - whereas a reduction in stamp duty would have lead to more transactions, and likely more stamp duty collected in dollar terms. It is&nbsp;a short-sighted move.&quot;

Kris Daff, the managing director at Assemble, who are pioneering affordable housing across Melbourne, says 2021 is a time when Government should be generating tailwinds for the real estate and construction sectors, sectors who are significant employers and generators of economic recovery and growth.

&quot;The introduction of foreign buyer surcharges is an example of the unintended consequences of ill-considered policy, which has contributed to new apartment sales falling off a cliff and commercial builders in the state facing huge reductions in work in hand as a result.&quot;

[smartcode_project:default project_id=94542 project_image_fid=160739]

<h2>What the experts are saying</h2>

REIV president Leah Canlan

&quot;The&nbsp;tax hikes will make Victoria a less desirable place to invest, ultimately harming jobs and the economy. 
 
&ldquo;The government continues to burden Victorians with increases to property taxes. Property already accounts for more than 40 per cent of government revenue. There is not much more capacity any one sector to absorb further tax burden. 
 
&ldquo;If the Victorian Government is serious about jobs and housing it needs to invest in real estate, not attack it.&quot;

AMP Capital chief economist Shane Oliver

&quot;While I can understand the desire to reduce the deficit, stamp duty is a bad tax that distorts economic decision making and should really be phased out in favour of land tax as NSW is considering.

&quot;So relying even more on it runs counter to this and will further distort economic decision making in Victoria as well as make housing even less affordable.&quot;

Victorian Executive Director of the Property Council&nbsp;Danni Hunter

&quot;This is a sucker punch to the industry that is building Victoria&rsquo;s recovery. One in four Victorians work in property and the Victorian Government is raising taxes at a time when it should be creating jobs.

&ldquo;This is a tax hike on the home ownership dreams of Victorians. We are heading toward a housing affordability crisis and the Victorian Government has fast tracked our way there by slugging homebuyers and businesses in this short-sighted move.

&ldquo;The Government knows the price for these tax changes will be paid by every single Victorian.&quot;

Hotspotting founder Terry Ryder

&quot;The decision by the Victorian Government to hike land tax and stamp duty on investor owners continues the age-old problem of politicians using the housing industry as a cash cow - and thereby making housing affordability worse. 
 
&quot;The problem of affordability can be summarised like this: it&#39;s caused by politicians at all three levels of government milking the housing industry for revenue. Local government does it and the Federal Government does it, but by far the worst are state governments. Every time a state government needs some extra revenue, they slug developers and investors.

&quot;They believe there&#39;s little electoral damage in doing that, but ultimately it&#39;s the home-buyers who pay, including first-home buyers. Developers can&#39;t sell a house and land package for $400,000 if it costs $500,000 to create - and a huge proportion of the cost is taxes, fees and charges from the three levels of government, but especially state governments. 
 
&quot;Right now, Australia has a rental shortage crisis and politicians should be encouraging investors to buy properties and make them available for rental. Our politicians, however, continue to discourage investors - hence the ultra low vacancies and rising rentals in most locations across Australia. With this move by the State Government in Victoria, the situation just got worse.&quot;

One of Melbourne's most recognised developer, Tim Gurner, says it is not the time to kill one part of the economy that is providing strength and jobs for Australia.

VIC stamp duty changes: What the developers and experts are saying

The Victorian Government has revealed there will be stamp duty and land tax increases in its 2021-22 State Budget which the industry fears will worsen housing affordability.

The new measures see an estimated $2.65 billion increase in property taxes over the next four years.

Treasurer Tim Pallas revealed a series of new taxes, including increases in stamp duty for high-end residential property buyers.

Some landlords will be hit with higher land tax in Thursday&#39;s state budget.

The new &#39;premium stamp duty rate&#39; will apply to all sales contracts signed after June 30, 2021, which will ensure many buyers will bring forward their purchasing to within the next six weeks.

The stamp duty measure will raise $761 million by adding a premium in stamp duty payments for property sold at more than $2 million.

[smartcode_project:default project_id=2772 project_image_fid=31753]

Sales over $2 million will be taxed with a stamp duty rate of 6.5 per cent for the value in excess of $2 million, up from the exisiting 5.5 per cent rate, ie a $3 million home purchaser will pay $175,000 up from $167,000, according to The Age who were given the pre-budget drop.

Premium landlords will contribute to the state&#39;s land tax revenue which is forecast to rise by more than 10 per cent, or $1.5 billion over four years.

Land tax will increase for all land holdings worth more than $1.8 million from next year, rising by 0.25 percentage points for land worth between $1.8 million and $3 million, and by 0.3 percentage points in excess of $3 million.&nbsp;

Apartment developers have slammed the increase in property taxes as likely to put the sector&rsquo;s fragile recovery in peril.

But developers face being hit with a new windfall gain tax on some land where rezoning had lifted property values, which could lead to longer term higher apartment and house and land prices in major projects.

[smartcode_project:default project_id=5234 project_image_fid=159015]

Rezoned land will be taxed from next year, netting a forecast $125 million over four years.&nbsp;

Any gains of more than $100,000 will be hit with developers and land speculators who reap windfall gains facing a 50 per cent tax if the gain is worth $500,000 or more.

&ldquo;These increases show a fundamental lack of understanding,&rdquo; Urban Development Institute of Australia, Victorian division, chief executive Matthew Kandelaars said.

&ldquo;With property taxes representing nearly 50c in every dollar of state government revenue, we&rsquo;d hoped that the days of the government turning out the pockets of homeowners were over,&rdquo; Mr Kandelaars said.

HIA executive director Fiona Nield said Victoria already had the highest stamp duty rates in the country.&nbsp;

&ldquo;The activity generated from residential development supports jobs and economic activity and is key to supporting all Victorians as the state recovers from the economic shock of COVID-19,&rdquo; she said.

There has been the suggestion the impact will be greater in regional Victoria, as some urban growth land in Melbourne may be exempted.

The windfall gain tax could hit landowners helping to grow housing supply.

Nield said &quot;new taxes like these are passed on in higher land prices for all and stamp duty inhibits people from selling properties to allow for new homes to be built - it has direct impact on new housing affordability.&quot;

REIV President, Leah Calnan said the tax hikes will make Victoria a less desirable place to invest, ultimately harming jobs and the economy.

&ldquo;The government continues to burden Victorians with increases to property taxes. Property already accounts for more than 40 per cent of government revenue. There is not much more capacity any one sector to absorb further tax burden,&rdquo; Ms Calnan said.

&ldquo;These sledgehammer taxes could cause a flight from property,&rdquo; she said.

The Victorian Government has revealed plans for stamp duty and land tax increases in its 2021-22 State Budget which the industry suggests will worsen housing affordability

jchancellor

Busy six weeks for premium apartment buyers to beat Victoria's stamp duty rise from June 30, 2021

<html><body>
No one needs to do more about housing affordability than the NSW State Government. Sadly, no one is doing less.
The Victoria State Government has made an encouraging start to tackling some of the issues in Melbourne. The Northern Territory Government is doing plenty to help first-home buyers in Darwin.
Even in Tasmania, where Hobart prices are so low relative to other cities you wonder why they feel the need, the State Government is taking decisive action to help young buyers and the housing industry generally.
But in Sydney, the location with the biggest problems, the NSW Government has to date done nothing.
It has contributed mightily to the problems by ripping obscene amounts of revenue out of the housing industry and imposing major regulatory burdens on the development industry. But despite the rhetoric of Premier Gladys Berejiklian (who, as a former state treasurer should have some understanding of the issues and the numbers), the State Government has done nothing to assist.
In NSW stamp duty receipts have reached a record high. Official figures show that $1.98 billion in stamp duty poured into government coffers in the March Quarter alone – a $315 million increase on the first quarter of last financial year.
Stamp duty from all property transfers has risen $859 million so far this financial year, compared with the same period in 2015-16. This represents a 10 percent increase in stamp duty on residential property, outpacing the Treasury forecast of a 4.8 percent rise for 2016-17.
That’s a major part of the problem. The State Government has built a Budget surplus on the back of revenue from real estate, thereby adding to the costs that burden buyers, while claiming to care about affordability issues.
In considering what it can do ease price pressures, the NSW Government might ponder this question: why does residential land in Sydney cost twice what it does in Melbourne? The median price for a home site in Sydney in 2016 was double that of Melbourne’s, according to the recent State of the Land report.
One possible explanation is that Melbourne brought far more residential land to the market last year than Sydney did. Indeed, 40 percent of the new land marketed in capital city Australia in 2016 was in Melbourne.
Increasing supply is regarded by some as the silver bullet solution. It’s not, but it’s certainly part of range of measures that jointly might create improvement.
And certainly the Property Council has “turbo-charging housing supply through increased land supply and planning reform” at the top of its five-point plan to address affordability issues in Sydney. If Melbourne can create so much new housing land for sale, what’s holding Sydney back?
Increasing the supply of housing won’t help affordability if the new dwellings are expensive, because it costs so much to create them.
Which is why next on the Property Council wish list comes “reforming state property taxes and reducing fees, charges and red tape”.
It’s been reported many times but it’s worth repeating: research indicates that 40 percent of the cost of creating the average house-and-land package comprises government fees, charges and taxes.
That reinforces my view that the politicians who rage against foreign investors and negative-geared Australian investors are themselves the problem. Every time a state government in Australia announces its annual Budget, affordability in that state gets worse.
Some of the most vocal critics of the affordability problem in Sydney have been NSW state politicians, when they themselves are the people best placed to create remedies. They can start by reducing the cost burdens they place on the process of building and buying new homes.
Meanwhile, their populist scapegoating of foreign investors, and multiple measures by federal and state governments to nobble offshore buyers, are making the affordability problems worse.
The most effective way to cause property prices to fall – indeed, in my experience, the only way – is to create an oversupply. Some of our major cities have been heading unwittingly down that path recently, notably in the inner-city apartment markets in Melbourne, Perth and Brisbane.
But major projects made viable by the prospect of selling some of the product to foreign buyers will not proceed because of a range of measures by federal and state governments to make investment by offshore buyers unattractive, if not unviable.
They’ve made matters worse for young buyers while claiming to be improving their chances.
Don’t be surprised if one of the few measures the NSW State Government will introduce in its next Budget will be extra taxes and charges on foreign buyers. It will be another cash grab, dressed up as policy to “level the playing field for young Australians”.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
</body></html>

terryryder-YECXbqmri2

Why does residential land in Sydney cost twice what it does in Melbourne?

<html><body>
EXPERT OBSERVER
<h3 class="post-title entry-title">
<a href="https://petewargent.blogspot.com/2019/01/hows-act-land-tax-going"></a>Canberra rents surge </h3>
<div id="post-body-7598088234210480051" class="post-body entry-content">
<div>I've been consistent on this point (often wrong, but never in doubt!): taxes in the Australian Capital Territory (ACT) are far too high for landlords to invest there en masse, which will lead to a rental shortage as the population steadily grows. </div>
<div> </div>
<div>There are a lot of 'well, in theory...' type comments made about this point, however, including by me, so let's stick to the hard data for today.</div>
<div> </div>
<div>Rental vacancy rates fell from 2½ per cent in 2014 when rate rises were first introduced to 0.6 per cent in October 2018. </div>
<div> </div>
<div>Rental markets are seasonal in the ACT and often tighten through the early months of the calendar year, and in turn Canberra could take out Hobart in Tasmania for title of most undersupplied capital city rental market in 2019, which is is some feat (click to expand): </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s1600/SQM2.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s640/SQM2.jpg" width="640" height="350" data-original-height="797" data-original-width="1453"></a></div>
<div> </div>
<div>Asking rents for houses in Canberra are now up by more than 26 per cent over the past three years alone. </div>
<div> </div>
<div>A major issue is that rates are often far too high on units as well, despite the relatively low land value content of this property type. </div>
<div> </div>
<div>The asking rent for 2-bedroom units in Canberra is also up by more than 23 per cent over the same time period!</div>
<div> </div>
<div>In Canberra! </div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s1600/sqm1.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s640/sqm1.jpg" width="640" height="188" data-original-height="229" data-original-width="777"></a></div>
 <div>Source: SQM Research</div>
<div> </div>
<div>
If you don't like asking rents - and you may not - then Domain's actual rental report figures this week were similar. Domain reported that Canberra is now a more expensive city in which to rent a home than even Sydney, with rents spiralling as high as the Black Mountain Tower. 
</div>
<div> </div>
<div>Dr. Nicola Powell:</div>
<div> </div>
<div>"With investors slugged with higher rates and land taxes, it is likely landlords are passing on the additional costs to tenants, or opting for high yielding short-term leases in order to recover costs."</div>
<div> </div>
<div>On the plus side there have been some significant apartment projects approved for construction, but one questions which landlords are going to buy them and rent them out. </div>
<div> </div>
<div>Politicians seeking tax deductions, perhaps. Foreign investors won't supply the rentals any longer, having already been taxed out of the market. <div class="separator"><a href="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s1600/China.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s640/China.jpg" width="640" height="128" data-original-height="146" data-original-width="729"></a></div>
</div>
<div>Some people are even campaigning for high land taxes, and the ALP negative gearing reforms, and a doubling of capital gains tax (all of this on top of the changes made to foreign investment, interest-only lending, restrictions on Division 40 depreciation, disallowance of travel expenses etc etc.). </div>
<div> </div>
<div>There's nothing much to say but best of luck with that!</div>
<div>
 It's a small city, which grows in population by less than 10,000 per annum. Way to go!</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
</div>
</body></html>

pwargent-M4siyDbqQY

How's the ACT land tax going? And what it means for property investor supply: Pete Wargent

<html><body>
The New South Wales budget surplus forecast has increased by $600 million.
The NSW Treasurer Dominic Perrottet advised the projection for the 2017/18 year was revised up to $3.3 billion, from $2.7 billion.
The state government’s half-yearly budget review also revealed the first home buyers assistance scheme would cost $461 million this financial year.
“A significant reduction in transfer duty is derived from our first home owners grants and the concessions and tax cuts that form part of that.”
However, an increase in land tax will help offset the loss the government makes from the first home buyer concessions.
Higher than expected property values has pushed up the land tax revenue forecast by more than $100 million.
Land tax receipts from owners of investment properties and holiday homes in NSW are forecast to be $867 million higher than expected over the next three years.
Mr Perrottet said he was confident the Sydney housing market would remain healthy.
“We see the property market remaining strong, we see completions continuing at record levels,” Mr Perrottet said.
Fairfax Media noted the forecast assumes that the average price of residential properties sold in 2017-18 will be around 1.8 per cent above the average price the previous year. 
Stamp duty revenue in the three years to 2020-21 has been revised down by $657 million, largely due to the take up of stamp duty concessions for first home buyers in a housing affordability package announced in the June budget.
Between June and November, 13,672 people have received stamp duty concessions, compared with 3970 people in the same five month period last year.
</body></html>

j.ballantyne1990-6AQqhLzZaK

NSW property investors to pay $100 million more in land tax as values rise

<html><body>
EXPERT OBSERVATION
The new approach to build-to-rent, announced by Treasurer Dominic Perrottet and Planning Minister Rob Stokes, will deliver increased investment into purpose built rental housing and drive prices down. 
The number 1 reason why property prices in Sydney are so high is the of a lack of supply.  This applies to the rental market as well as the sales market for houses and apartments. Today’s announcement will result in greater investment and more supply.
The Urban Taskforce has been at the forefront of calling for taxation concessions to encourage more investment into Build to Rent.  Today’s announcement does just that and is very welcome news for renters and for jobs.
Urban Taskforce has been calling for the NSW Government to scrap the foreign investor surcharges on residential developments, saying that these taxes are punitive and act to prevent investment in a market that is desperately in need of stimulus and funding.
Today’s announcement demonstrates that on tax matters, the NSW Government has been listening. Foreign investor surcharges will be exempt for the ‘build-to-rent’ market provided construction begins after July 1 this year.
Urban Taskforce calls on all political parties to pass this legislation through the Parliament as soon as possible, in the interests of investment, jobs and lower prices for renters across NSW.
‘Build-to-rent’ means that the entire building is owned by one entity.  It is not split into individual units and sold to buyers through a strata plan. 
The building is designed from the start to the owned and managed for the life of that structure as be available for rental accommodation. 
This is attractive for institutional investors including superannuation funds and is a form of investment in housing that is widely used in England and in North America. 
It also enables renters to access long term rent al leases and generates a genuine choice for consumers who choose not to buy a home. 
Tom Forrest is the CEO of Urban Taskforce.
</body></html>

Tax cut for Build-to-Rent projects will attract investment: Tom Forrest

<html><body>
A land tax discount for new build-to-rent housing projects will be introduced by the NSW government.
A new Housing Diversity State Environmental Planning Policy (SEPP) will also be introduced.
NSW Treasurer Dominic Perrottet and Planning and Public Spaces Minister Rob Stokes said the tax cut would encourage build-to-rent developments by ensuring they were subject to similar overall amounts of State tax as comparable build-to-sell developments.
"Build-to-rent is popular overseas but still in its infancy in Australia, and we want to remove barriers and allow this segment of the market to grow," Mr Perrottet said.
"Renters benefit through greater choice and because the focus is placed on them, rather than just geared towards property owners, it has an added benefit of encouraging better quality rental properties and much longer-term leases."
The discount will reportedly be equivalent to at least a 50 per cent reduction in land tax, dependent on the unimproved land value.
It will be applicable until 2040.
To be eligible for the discount, a build‑to‑rent development in metropolitan areas must be at least 50 units, with a different threshold for regional areas to be considered.
Construction must have commenced on or after 1 July 2020 and the projects must provide purpose built rental units, be managed under unified ownership, and include options for longer leases.
An exemption from foreign investor surcharges will also be provided until 2040 for Build‑to‑Rent developers, and integrity measures will be included to ensure that these discounts are not used for tax avoidance.
The new SEPP includes proposed development standards for build-to-rent housing across the state and design guidance on built form, context and character, sustainability and amenity to ensure good outcomes for surrounding communities and future residents.
Planning and Public Spaces Minister Rob Stokes said the proposed changes will simplify planning controls to support investment in diverse and affordable housing types including built-to-rent, co-living, social housing, and student housing.
"Not only do we need different types of housing – such as detached, high-rise and missing-middle types, we need different tenures of housing – such as affordable and social housing, short and long-term rentals and owner-occupiers," Mr Stokes said.
"These proposed changes will help support the State's future housing needs while contributing to NSW's economic recovery from COVID-19 by boosting residential construction and supporting jobs."
The new SEPP also includes new statewide definitions and provisions to support co-living developments and student housing, and new measures to assist the NSW Land and Housing Corporation to deliver more social housing on government owned land.
Full eligibility criteria for build-to-rent project tax cuts will be set-out in guidelines for the industry in coming weeks.
The Housing Diversity SEPP is on exhibition for feedback until 9 September 2020.
 
</body></html>

Land tax discount announced by NSW government

<html><body>
The REIV has written to the State Treasurer, requesting an urgent change to the process that is currently in place for a commercial landlord to receive the Coronavirus land tax relief.
REIV President Leah Calnan said the current method is overly bureaucratic and greatly disadvantages commercial property owners who have negotiated a rent relief in good faith.
Currently, once commercial rent relief negotiations are completed, the tenant must complete an online form to enable the landlord to apply for land tax relief. Only the tenant can complete this form for the landlord.
Our primary concern is that there are no incentives or consequences for the tenant if they fail or refuse to do this.
The commercial property owner is at the mercy of their tenant to apply for the tax relief promised by the government.
The process is not fair for the landlord and their agent who have, in good faith, negotiated rent reduction for the tenant as per government guidelines but are unable to claim the promised land tax relief because their tenant fails to complete the form.
Ms Calnan emphasised that all stakeholders must be equally supported during this time. It is important to remember that the majority of landlords are mum and dad investors who are doing their best to support tenants impacted by the coronavirus.
 An illustration of the bureaucracy around the process is evidenced by this extract from the State Revenue Office’s website: 
Once you have completed the form online, you need to send it to your landlord. You can download a copy, or email a copy to yourself, which you can then email to your landlord, or send it to them directly by entering their email address on the final page, titled ‘Form Complete’.
The Real Estate Institute of Victoria urgently requests that an alternative process be enabled to ensure landlords are not unduly disadvantaged.
In order to manage the financial impact for both the landlord and the tenant, the rent relief could be only initiated after the form has been submitted or even better, the process scrapped.
Similar process issues are also present in residential rent negotiations. A rent “agreement” should only be submitted when all impacted parties – landlord, tenant and agent have agreed.
The CAV website permits submission by one party where a true agreement may not be in place.
LEAH CALNAN is the REIV President 
</body></html>

Land Tax

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Land Tax

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.