<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Land Tax

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The NSW Land Tax system is crippling investors as tenants struggle to pay rent and must be completely overhauled, according to Urban Taskforce CEO Tom Forrest.
“Land Tax relief is critical for the survival on many companies that are being forced to pay taxes on land which is delivering little or no return at all”, Mr Forrest said.
“When land is re-zoned, land tax is levied on the new `higher use’ potential of that re-zoned land. However, the NSW Planning system, the slowest in Australia for every category of development application, levies land tax on the highest and best use related to the new zoning while investors and property developers wait, in some cases years, for development approvals.
“Worse – with COVID 19 having resulted in the shut-down of many businesses, no relief has been offered to land-lords”, Mr Forrest said.
Land Tax is being charged based on the highest and best use for the land, assuming the full economic potential of the land zoning is being realised.
“Where land has been re-zoned, but a new DA approval is stuck in the planning system, Land tax should be based on the old (lower value) zoning or waived altogether.
“If deferrals are contemplated by the NSW Government, interest must not be charged on the unpaid land tax”, Mr Forrest said.
Mr Forrest called on the NSW Government to waive land tax where land-owners can show they have been impacted by COVID 19.
“These simple changes would give much needed relief to property owners who rely on rental income for the viability of their business.”
TOM FORREST is the CEO of Urban Taskforce
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Land tax overhaul needed during shutdown; Urban Taskforce CEO Tom Forrest

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EXPERT OBSERVER 
Queensland’s property industry is calling on the State Government to scrap significant increases to land tax, following the Commonwealth Government decision to bring forward $650 million in major project funding for Queensland, and deliver $680 million in new funding. 
The land tax increases announced in June’s State Budget were an attempt to plug a Budget hole that will now no longer exist. 
This is a very welcome announcement by the Federal Government and comes at a critical time for the local economy.
The Queensland Government should use this opportunity to scrap its economically damaging land tax increases in order to further support local jobs growth.
June’s Queensland State Budget introduced a sizeable increase to the general business rate of land tax, and introduced a new surcharge for overseas companies and trusts that will effectively double their land tax liability.
In her Budget speech and subsequent media comments, the Treasurer outlined that the land tax measures were a reluctant result of “Canberra’s cuts” and committed to repeal them if Canberra restored “Queensland’s fair share.
The Federal Government’s new commitment will be a big boost to the State’s balance sheet, and affords Queensland the opportunity to avoid imposing these harmful new taxes.
The Office of State Revenue has been devising an exemption framework from the overseas surcharge for economically significant investments since June’s Budget. While the Government has been working to finalise this framework,<a name="_GoBack" href=""></a> no land tax has been collected from overseas entities. 
The Treasurer could make the decision today to repeal the overseas land tax surcharge and issue these entities with their normal land tax assessments.
If this tax is imposed, Queensland will face a substantial competitive disadvantage against southern jurisdictions for the retention and attraction of investment.
We will also see many Australian investors liable to pay the new foreign surcharge, and rents increasing for many Queensland businesses.
Chris Mountford is the Executive Director of Property Council Queensland.
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j.ballantyne1990-6AQqhLzZaK

Canberra cash should spell the end of Queensland’s land tax grab:  Chris Mountford 

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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>
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pwargent-M4siyDbqQY

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

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To paraphrase former prime minister Paul Keating, walk into <a href="https://www.smh.com.au/politics/federal/plenty-of-bark-any-bite-20101028-175mv" target="_blank">any pet shop in the country</a> and you’ll find the resident galah saying we should swap stamp duty for a land value tax.
Just about every economic think tank in the land thinks it’s about the best value tax change there is, among them the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378" target="_blank">Grattan Institute</a>, <a href="https://percapita.org.au/our_media/replacing-stamp-duty-with-broad-based-land-tax-could-increase-revenue-to-11-2-billion-by-2047-new-report-shows/" target="_blank">Per Capita</a>, the <a href="http://www.tai.org.au/sites/defualt/files/P149_Tax%20the%20need%20for%20change.pdf" target="_blank">Australia Institute</a>, and the <a href="https://www.cis.org.au/commentary/articles/dominic-perrottets-reforms-are-welcome-but-the-government-must-break-its-addiction-to-this-bad-tax/" target="_blank">Centre for Independent Studies</a> as well as <a href="https://www.thepolicyspace.com.au/2015/25/58-five-ways-to-reform-state-taxes" target="_blank">a swag of academics</a>, the Treasury in its work on the <a href="http://bettertax.gov.au/files/2015/03/08_GST-and-State-Taxes.pdf" target="_blank">draft white paper for tax reform</a> and the <a href="http://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_g2-2.htm" target="_blank">Henry Tax Review</a>.
Among the benefits of what I will call SD4LVT are said to be greater ease in upsizing and downsizing, a more mobile population (less reluctant to buy and sell houses) and a more reliable source of revenue for state governments.
One state, the Australian Capital Territory, has already begun a <a href="https://www.revenue.act.gov.au/tax-reform" target="_blank">20-year</a> phase out of stamp duty and a 20-year build up of land tax.
But beneath the near universal enthusiasm for SD4LVT are layers of bad economics.
It is extremely frustrating to me that the leading minds in Australian policy have put their heads together and decided that the best reform they can think of is to replace a good tax on property with another good one that would be even less popular.
The more thoughtful among them don’t even bother to claim that SD4LVT will make housing more affordable, yet still put it forward as the “holy grail” of tax reform.
It is bad economics because of four key points its proponents miss or overlook.
<h2>Price effects</h2>
Stamp duty comes out of what the buyer is prepared to pay. This means that if you remove it, all other things equal, prices will rise by exactly the amount of the duty removed.
If the average home price is A$500,000, and buyers pay a 5% stamp duty, taking the total to A$525,000, then when stamp duty is removed the price will immediately increase to $525,000 being what the buyer was prepared to pay.
If you replace the stamp duty revenue with revenue from land value taxes, the effects on price are less clear. The change could push them up (enriching sellers) or it could push them down.
Imagine an example economy with:
<ul>
<li>20 houses</li>
<li>Turnover of one house each year (a turnover rate of 5%)</li>
<li>An average home price of A$500,000</li>
<li>Total stamp duty revenue of A$25,000 per year</li>
</ul>
Replacing the A$25,000 stamp duty revenue with a land value tax requires taxing all 20 homes at A$1,250 per year each.
Whether the market price of homes rises or falls depends on whether buyers think the cost to them of A$1,250 per year is lower or higher than the A$25,000 upfront stamp duty they avoided. If they thought it was about the same, SD4LVT wouldn’t much affect prices.
But what if turnover was half that, say 2.5%, which in this example would be where one house was sold every two years? In that case, the total stamp duty to be replaced would be A$12,500, which would be only A$625 per house in land tax.
The new buyer could pay A$512,500 for the house plus A$625 per year in land tax and be equally as well off as paying A$500,000 for the house plus A$25,000 in stamp duty.
The net effect would be a 5% price increase from A$250,000 to A$262,500.
If that happened nationally it would mean a transfer of almost A$200 billion to existing owners.
Whether or not that did happen would depend on the turnover and buyer’s views about the future value of money. In short, the price effects of a SD4LVT are ambiguous.
<h2>Mobility</h2>
While it is said that stamp duties deter Australians from changing addresses and switching jobs, there is little evidence that they are not changing enough.
Most people who relocate for work <a href="https://www.rba.gov.au/publications/bulletin/2017/mar/pdf/bu-0317-3-housing-market-turnover.pdf" target="_blank">don’t buy and sell homes in order to do it</a>.
They rent first, becoming both a renter and a landlord for a while, perhaps selling their first home later, but not quickly.
When they do sell, often for a healthy profit, stamp duty ensures they pocket less than would have, grabbing back some of what might otherwise be an untaxed capital gain.
Lower housing turnover from stamp duties mainly falls on the nearly half of sales involving investors who buy speculatively to capitalise on short bursts of capital growth before selling, in the process fuelling the boom and bust price cycle.
To me, anything that slows down real estate turnover and captures capital gains seems like a good idea.
<h2>Revenue stability</h2>
It is claimed that stamp duty revenues are much more volatile than other taxes. During a boom, they climb more than proportionally to prices since they also depend on turnover. During a bust, they fall more quickly than prices.
If I was to think in the abstract about what sort of taxes are good for the economy, I would say it is those that are pro-cyclical, meaning they automatically increase takings during a boom, and wind them back during a bust.
On this measure, stamp duty is a good tax for stabilising the economy, something important given how much our economic cycles are tied to housing markets.
The land value tax that SD4LVT proponents would replace stamp duty with would make the tax system as a whole less stabilising.
<h2>Odd modelling</h2>
You might have seen a chart like the Treasury graph below, with stamp duties presented as having enormous flow-on economy-wide costs compared to other taxes. In this example, land tax which is presented as having an economic benefit.
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The problem with the graph is that modelling used to prepare it (computational general equilibrium modelling) can’t directly account for transaction taxes because it doesn’t model transactions.
Instead of using a better tool for the job, the modellers assume that stamp duties increase cost of housing to all buyers and renters. It’s this assumption that drives a conclusion they describe as merely “<a href="http://www.policypartners.com.au/assets/treasury---economic-incidence-of-taxes-(2015).pdf">illustrative</a>”.
<h2>To sum up</h2>
Stamp duties don’t push up the cost of housing. The claim that they impede household mobility is overblown. They do reduce asset churn, and as a result they help maintain price stability.
Their “revenue instability” is actually a huge positive for the economy as a whole. And the modelling that has underpinned the talk of high economy-wide costs is as good as made up.
Yet SD4LVT remains the apparent holy grail of Australian tax policy.
Our best policy wonks continue to push our politicians to use up the precious capital to swap one very good property tax for another, for no obvious economic gain.<img src="https://counter.theconversation.com/content/106841/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/cameron-murray-172480" target="_blank">Cameron Murray</a>, Lecturer in Economics, <a href="http://theconversation.com/institutions/the-university-of-queensland-805" target="_blank">The University of Queensland</a>.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stamp-duty-fever-the-bad-economics-behind-swapping-stamp-duty-for-land-tax-106841" target="_blank">original article</a>.
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Swapping stamp duty for land tax is bad economics: Cameron Murray

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The first Liberal government state budget in 16 years will see South Australian treasurer Rob Lucas cut land tax rates.
The cuts will apply to higher-end residential and commercial property investors.
Rob Lucas, who was the treasurer when the last Liberal Government was in power in SA 17 years ago, told The Australian Financial Review he wanted to attract more investors to the state through the land tax reform measures to compete with Sydney and Melbourne.
The first step of the land tax reform is set to see land tax drop from 3.7 percent to 2.9 percent on properties over $1.2 million.
There will also be incentives at the lower end of property investing. The threshold, where land tax applies on properties, will rise from $369,000 to $450,000.
Land tax isn't paid by people on their principal place of residence in South Australia, but does apply to property investors.
 
 
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jonathanchancellor-7SQnKwU6yx

Property investors to benefit in SA land tax cuts

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The Santa Barbara, United States based former 1956 Olympian Jon Henricks - who was 100 metre freestyle swimming world record holder - has sold his Balmoral slopes house after 48 years for about $5.2 million.
The dual Melbourne Olympic gold medallist was recently outspoken about how the state government’s recently introduced land tax surcharge for foreigners forced him to list the <a href="https://www.realestate.com.au/sold/property-house-nsw-mosman-128255974" target="_blank">Mosman home</a> he and his American wife Bonnie purchased in 1969.
The non-resident land tax rate was raised this year from 0.75% to 2%, with the changes meaning the couple would have to pay up to $60,000 a year.
Following the hike, Henricks listed through McGrath’s Michael Coombs with a $5 million to $5.5 million guide ahead of Saturday’s scheduled auction.
The Plunkett Road home sold inside the guide pre-auction on Thursday.
“Little by little the land tax has grown and up until to last year we were able to keep the home afloat with money from renting it out when we’re not around,” he said.
“This is absolutely devastating to deal with, there has been so many memories at the home and it has been good to us, it is all very bittersweet and devastating for us,” Henricks said.
The home has been the Henricks Australian home for nearly 50 years.
This article first appeared in The Sunday Telegraph.
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firstname1-iYD4UYzvBa

Olympic gold medal winner and world record holder Jon Henricks sells Mosman home

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Stamp duty is a tax that discourages the buying and sale of homes. 
It provides the NSW State Government with a fairly reliable income.
There are two debates running ahead of the upcoming state budget. One is on the rate of the tax, the other on whether it should be phased out and replaced with another tax.
This week the Real Estate Institute of New South Wales (REINSW) really lashed out having long failed in their lobbying efforts to persuade the government to respond to the stamp duty bracket creep that has been in place for more than three decades.
It was time for the NSW government to amend the 1986 stamp duty brackets, according to the REINSW president Leanne Pilkington, who said the Government’s conduct was "nothing less than unconscionable”.
Pilkington noted the second reading to the 1986 Bill noted the increased rates for conveyances only affected properties worth more than $300,000 "and thus will not affect the average home purchaser”. 
The median house price in Sydney is now at $1.1 million, costing $46,000 in stamp duty.
Last financial year more than $7.3 billion was collected in stamp duty.
Up until February this year the government has raised $4.7 billion, so is on par with last financial year.
That's despite first home buyers being able to buy property up to $650,000 without having to pay stamp duty, and homes up to $800,000 seeing a discounted stamp duty.
Any adjustment to the standard stamp duty threshold rate would be simple, though likely at cost to overall revenues.
However the revenue could potentially go higher, and certainly be more stable, if the NSW government took the braver decision to phase in a broad based land tax that spreads the income across all land owners rather than only on those buying homes.
Many economists, and Ken Henry, author of the 2010 Henry Tax Review, have long argued that a broad based land tax is the most equitable way to tax property owners.
Earlier this month CEDA, the Committee for Economic Development of Australia, raised the issue in its report on inequality, How unequal? Insights on inequality. 
Unlike stamp duty which imposes a huge up-front financial burden upon only home buyers, a broad-based land tax, paid annually and spread over a wider base of people, provides a steady income stream to government to fund infrastructure.
It also would not stymie listings because many more homes would be listed by elderly downsizers if they weren't facing the repurchasing stamp duty burden.
John Daley, the chief executive of independent think tank the Grattan Institute, calculates an annual tax of $1 per every $1000 of a home's value would cost the median Sydney household $845 a year in tax.
I would however question the estimate due to the low reliability of NSW land valuations, which remain a flawed system. Any shift would require a fresh equitable modern revaluation of the state.
This article first appeared in The Daily Telegraph.
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jchancellor-FAypfDUnLy

Is it time to consider a wider land tax?

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

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The NSW foreign investor land surcharge will increase to 2 percent per annum (from 0.75 percent per annum) with effect from 31 December 2017 for the 2018 land tax year.
The land tax surcharge was introduced in NSW with effect from 1 January 2017 to be imposed on owners of residential land who are 'foreign persons'.
The surcharge also extends to trusts that own residential land which have beneficiaries that are 'foreign persons'.
The land tax surcharge provisions are very broad and will catch discretionary trusts if the trust deed has a broad definition of beneficiaries, which is typical of most discretionary trust deeds.
Lawyers Meyer Vandenberg have warned "in this global age, given the wide class of beneficiaries," there is a high chance that a family member includes someone of international origins who is not an Australian or New Zealand citizen.
If any of these potential family members themselves meet the definition of 'foreign person' or invest in a company that meets the definition of a 'foreign person', and the trust owns residential land in NSW, then the trustee is liable for the land tax surcharge.
"Our federal politicians are having to re-look at their family origins (though to confirm their eligibility for holding office!)," Meyer Vandenberg told its clients.
"It is a timely reminder to also consider reviewing your discretionary trust deed and your family situation.
"If the trust owns residential land in NSW or is considering owning residential land in NSW in the near future, it is worthwhile getting advice."
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NSW foreign investor surcharge increased from December 31, 2017

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Last financial year NSW property buyers paid $9.8 billion in stamp duty after a record 228,000 sales. Close to $3 billion has been paid by buyers since July.
This stamp duty is paid by the already stretched Sydney property buyer to the NSW state government based on the price of their land and the building acquisition.
The tax has been stuck at current 4.5% level since the 1986 Unsworth government, a time when the median stamp duty paid was $1500.
Given the rise in the median Sydney property price over the 31 years, the typical buyer now pays $36,000 duty for a $905,000 median dwelling price acquisition.
Stamp duty affects affordability by making buying a home dearer, especially for first home buyers.
It has emerged over recent times that stamp duty also leads to the inefficient use of housing by constraining the capacity of many to move towards downsizing into a more appropriately sized home or for workers to take advantage of new employment opportunities elsewhere.
Many tax reviews, including the Productivity Commission’s recently completed five year productivity review, have proposed that the one-off stamp duty be removed and replaced by a universal land tax paid annually on all properties. At the moment only some investor pay land tax.
This universal land tax differs from the current situation in that it would apply to all properties, residential and commercial, whether they are owned as an investment or by an owner-occupier.
The Henry Tax Review in 2010 proposed such a land tax.
More recent AHURI research modelling of a universally applied land tax forecast 46% of the land tax revenue would be raised from land plots within 10 kilometres of CBDs where land is most expensive, while only 4% of land tax revenue would come from the urban fringe 30 to 50 kilometres out.
AHURI went further suggesting as a consequence of introducing the tax, overall land values would decline leading to more affordable housing. 
Political reality dictates that changes to stamp duty and land tax would be implemented over a long timeframe. This is happening in the ACT where stamp duty is being abolished progressively over 20 years having started from 2012.
Any move in NSW from stamp duty to land tax would involve transitional arrangements so that landowners would only begin paying land tax if they have not already had to pay stamp duty, i.e. as each property is sold it would move onto the new land tax arrangements.
It has been concluded that during this transitional phase the revenue shortfall experienced by state and territory governments would require bridging finance from the Commonwealth Government, although this revenue shortfall will quickly recede as more and more owner-occupied housing joins the universal land tax base.
Our politicians have yet to bite the bullet, and perhaps never will.
This article first appeared in The Daily Telegraph.
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