S&amp;S Projects is boosting its investment at Rainbow Bay to more than $1 billion after the prolific Gold Coast developer acquired a new site for $20.25 million and immediately laid plans for a new luxury apartment project in the sought-after precinct.

The site, which is the company’s fifth acquisition at Rainbow Bay in the past four years, will be home to the company’s largest project to date after delivering 3 sold-out projects and construction progresses on Radia worth a combined $215m. 
S&amp;S Projects is currently finalising plans for its latest strategic acquisition, a 1,518 sqm site located 209-213 Boundary Street in Coolangatta, with a development application expected to be lodged within weeks.

The luxury residential development will build on the company’s highly successful projects at Rainbow Bay, comprising Flow, Awaken, Esprit and Radia, with Radia currently under construction by Hutchinson Builders.

“We have been unflinching in our commitment to Rainbow Bay and the transformation we have helped drive in this incredible part of the Gold Coast, which is among the city’s most desirable residential locations,” said S&amp;S Projects founder and director Paul Gedoun.

“Our fifth project will reflect the best of what we have done so far to create a lifestyle precinct that is second to none.”

The latest development, which has yet to be named, is proposed to accommodate 88 luxury apartments in a design that will immerse residents in a unique wellness lifestyle that expands on the legacy of S&amp;S Project’s earlier developments at Rainbow Bay.

The development will feature an expansive rooftop garden and wellness centre with a resort- style pool, among a host of lifestyle amenities planned for residents.

“Rainbow Bay, with its beautiful, protected beach and alongside one of the world’s best surf breaks at Snapper Rocks, is the natural wellness heartland of the Gold Coast,” said Gedoun.

“We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden.”

The latest acquisition comes as S&amp;S Projects is at the completion of Esprit and construction continues on Radia, which are part of their significant portfolio undertaken by the company at Rainbow Bay since 2022.

The $215 million Radia, which comprises 38 apartments, is currently the flagship development by S&amp;S Projects at Rainbow Bay which is expected to be completed in 2027.

Jayde Pezet, of Pezet Matheson, which has managed sales and marketing for S&amp;S Projects across their Gold Coast portfolio, emphasised the developer’s commitment to continuous improvement and excellence.

“S&amp;S Projects continue to elevate the benchmark of luxury with each development," Pezet said.

“We have worked with S&amp;amp;S on their 4 other projects in Rainbow Bay and their approach reflects a team that is constantly learning, refining, and pushing the standard higher.

“Their hyper-local knowledge and deep expertise within the luxury property sector are what truly set them apart, allowing them to deliver projects that feel both globally sophisticated and authentically connected to their coastal environment”

S&amp;S Projects plans to officially launch its latest project at Rainbow Bay in the second half of this year.

“As we embark on our largest project yet, we have pulled out all stops to create another landmark development that truly reflects the relaxed southern Gold Coast lifestyle,” Gedoun added.

Joel Robinson

S&S buys $20m Rainbow Bay site for fifth beachside apartment project

Japandi, an emerging design trend that combines Scandinavian functionality with Japanese rustic minimalism, remains relatively untested in Australia’s residential development market.

As developers look to differentiate their projects and offer something distinct to buyers, Brisbane-based developer Lantona has embraced the hybrid style for its recently launched Toowong apartment project, <a href="https://www.apartments.com.au/new-apartments/koya-residences-6-josling-street-toowong-qld-4066">Koya Residences</a>, with early response to the design proving positive.

Lantona entrusted Red Door Architecture and interiors practice Luma Design Co with delivering the Japandi brief. The approach blends Japanese minimalism with Scandinavian functionality, emphasising warm, restrained interiors, natural materials and clean lines. Drawing on the Japanese concept of wabi-sabi (beauty in imperfection) and the Scandinavian principle of hygge (comfort and cosiness), it creates serene, uncluttered and sustainable living environments.

These design principles are expressed throughout the Josling Street development, both in its exterior form and across the 40 one-, two- and three-bedroom residences within.

[smartcode_project:default project_id=150787 project_image_fid=366229]

Koya reflects a deliberately scaled approach, with the five-storey form designed to align with the surrounding residential streetscape rather than dominate it.

“Koya is conceived as a building that sits comfortably within its surroundings. Every decision, from material selection to spatial planning, has been guided by long-term liveability and enduring relevance,” the developer said.

[smartcode_project:default project_id=150787 project_image_fid=366243]

Positioned within an established inner-west neighbourhood, the development sits near riverfront parklands and the Bicentennial Bikeway, while remaining within walking distance of Toowong Village and multiple public transport options connecting to the CBD, St Lucia and West End.

Lantona said the location was central to the project’s conception, pointing to Toowong’s balance of green space, transport access and proximity to major education institutions.

“<a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> combines river access, walkability, immediate CBD connection and a strong educational presence. That balance made it the obvious setting for Koya.”

[smartcode_project:default project_id=150787 project_image_fid=366230]

Communal amenity is concentrated on the rooftop, where a shared retreat will include a pool, dining areas and outdoor spaces oriented towards neighbourhood and city views. The design allows for both private use and small gatherings, extending the living environment beyond individual apartments.

Koya enters the market at a time when smaller-scale developments are becoming less common in established suburbs, with many recent projects in the suburb shooting for the sky.

In a nod of confidence,&nbsp;<a href="https://www.apartments.com.au/builders/brisbane-builders">Brisbane Builders</a>&nbsp;has already commenced construction on the building, which is slated for completion in early 2027. Keenan &amp; Byrne is marketing Koya.

[smartcode_project_cta:default project_id=150787]

Japandi-inspired Koya Residences launch in Toowong

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:ca872054-bfe3-4cc5-a2c8-b373d4dfeafb-2" dir="auto">
A completed Castle Hill apartment development is returning to market with an uncommon level of financial backing, positioning it as one of the more secure options for buyers in Sydney’s north-west.

Skyview in Castle Hill, originally developed by Top Place and now overseen by capital partner <a href="https://www.apartments.com.au/developers/equitifund-group">Equitifund</a>, is being relaunched following a full remediation process. Central to its repositioning is a substantial financial reserve designed to provide ongoing protection and reduce uncertainty for incoming purchasers.

At the core of this offering is an $11 million bond secured during the project’s remediation phase, negotiated by former NSW Building Commissioner David Chandler. With less than $4 million required to complete the works, approximately $7.2 million remains in reserve, with around 15 years left on the term.

[smartcode_project:default project_id=147685 project_image_fid=359134]

Rather than a typical insurance-backed structure, the remaining funds are held as cash, creating a readily accessible financial buffer should any future building issues arise. The structure is intended to provide buyers with an added layer of certainty, differentiating the development from more conventional apartment offerings.

Equitifund Executive Chairman Greg Huxley said the structure provides a level of security not typically seen in apartment developments.

“The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers,” Huxley said.

“Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind.”

[smartcode_project:default project_id=147685 project_image_fid=359135]

The remediation process has now been completed in full, with no active rectification orders or outstanding directives linked to the project on NSW Government registers. This outcome reflects the broader tightening of building oversight across the state, while also highlighting the project’s transition into a completed, compliant asset.

In a market where many buyers remain cautious about apartment quality, initiatives like this are designed to restore confidence, giving purchasers greater certainty and a stronger sense of security in their investment.

Equitifund has since acquired the remaining apartments and is managing their reintroduction to the market. With the works finalised and a significant financial reserve in place, the project now presents with a markedly different risk profile compared to its initial release.

[smartcode_project:default project_id=147685 project_image_fid=359137]

Beyond the added security, the development is positioned in one of Castle Hill’s more established pockets. The Gay Street address places it within close proximity to Castle Towers, one of the country’s largest retail centres, as well as Castle Hill Metro Station, which now connects directly to the broader Sydney Metro network.

Equitifund National Sales Director Ben Hamblett said buyer demand in the area continues to be driven by access to transport and amenity.

“Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre,” Hamblett said.

“There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living.”

[smartcode_project:default project_id=147685 project_image_fid=359145]

The apartments also enter the market at a relatively accessible price point for the area, with two-bedroom configurations starting from $995,000 and rental demand for similar stock reaching around $900 per week. This combination of pricing, connectivity, and completed status is expected to appeal to both owner-occupiers and investors seeking lower-risk entry into the Hills District apartment market.

For eligible buyers, a limited 3.50 per cent p.a. two-year fixed interest rate is currently available through Equitifund’s lending partners, providing an additional layer of affordability.

EquitiCredit Pty Ltd ACN 676 363 769 holds ACL 559289 and provides credit assistance. Finance is arranged through EquitiCredit and funded by its lending partners. Interest rates are subject to change and eligibility criteria apply. Terms, conditions, fees and charges may apply. This is not financial advice and should not be relied upon as such. Prospective buyers should seek independent financial advice.

[smartcode_project_cta:default project_id=147685]
</section>

Castle Hill apartments offering unmatched buyer protection through dedicated fund

A State-Assessed Rezoning Proposal for the Kurnell Peninsula is now on public exhibition, setting out a plan to deliver up to 4,300 homes alongside new retail, tourism and public open space on a 210-hectare coastal site.

The proposal, backed by the Minns Labor Government, would transform a former sand mining area along Captain Cook Drive into a mixed-use precinct delivered over approximately 20 years.

In addition to housing, the plan includes more than 7,000 sqm of retail and commercial space, new community facilities and approximately 116 hectares of open space, equating to more than half the site.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="ce1c6567-1df0-4de0-9fe5-a76be0367834" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.51%E2%80%AFAM_0.png?VersionId=dbbTmYaJvROA5fkQbgaxis8cmFwtpB5_" />

<hr data-end="849" data-start="846" />
<h2 data-end="902" data-section-id="ony3l3" data-start="851">Rezoning framework enables mixed-use development</h2>

The rezoning application seeks to amend planning controls under the State Environmental Planning Policy (Precincts—Central River City) and the Sutherland Shire Local Environmental Plan 2015.

Its primary objective is to enable a broader range of land uses across the site, including residential, employment, tourism and community uses, while also formalising environmental protections and land management outcomes .

The proposal has progressed through the state-led rezoning pathway after being identified as a project of regional significance, supported by several years of technical studies and agency consultation .

Development would occur in stages, aligned with the progressive closure and remediation of the existing sand mine.

<hr data-end="1718" data-start="1715" />
<h2 data-end="1768" data-section-id="krwii9" data-start="1720">Master plan structured around three precincts</h2>

The accompanying urban design report outlines an indicative master plan that divides the site into three primary precincts, anchored by a town centre in the western portion of the site.

The town centre is planned as the first stage of development, located on land that has already been remediated. It is intended to accommodate higher-density housing, retail, and community uses.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="4bfd5873-4847-4105-b220-0a30c96f5573" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.20.09%E2%80%AFAM.png?VersionId=7aVaSsZLAc6mElSH4g6Ct5bGsNxZcnPL" />

Additional precincts extend toward Bate Bay and Boat Harbour, with built form responding to environmental conditions and proximity to the coastline.

The design framework identifies distinct local character areas, with the master plan structured to reflect “unique natural qualities” across the site.

<hr data-end="2495" data-start="2492" />
<h2 data-end="2544" data-section-id="1vitwqn" data-start="2497">Open space forms core of the design approach</h2>

A key component of the proposal is the allocation of approximately 116 hectares to open space and ecological land.

This includes:

<ul data-end="2846" data-start="2678">
	<li data-end="2702" data-section-id="d96caj" data-start="2678">Three district parks</li>
	<li data-end="2723" data-section-id="17y6uz6" data-start="2703">Nine local parks</li>
	<li data-end="2741" data-section-id="14hui00" data-start="2724">Sports fields</li>
	<li data-end="2778" data-section-id="ts7psx" data-start="2742">Coastal and ecological corridors</li>
	<li data-end="2846" data-section-id="agduax" data-start="2779">Two kilometres of publicly accessible beachfront along Bate Bay</li>
</ul>

The urban design report positions this open space network as central to the structure of the development, rather than ancillary to it.

It is intended to support ecological regeneration, provide recreational amenity and create a connected network across the peninsula.

The plan includes north–south ecological corridors, expanded wetland systems and pedestrian and cycling links designed to connect residential areas to the coastline and open space areas .

<hr data-end="3347" data-start="3344" />
<h2 data-end="3381" data-section-id="ql66rt" data-start="3349">Housing mix and affordability</h2>

The proposal includes approximately 4,300 dwellings across a range of housing types.

This includes high-density apartments, medium-density housing, townhouses and seniors housing.

Affordable housing provision is identified at approximately 240 dwellings, alongside a smaller component of social housing.

The master plan emphasises housing diversity, with the intent of accommodating a range of household types and age groups within the development.

<img alt="Kurnell" data-entity-type="file" data-entity-uuid="d4baba4d-b5b0-4a86-bcad-5d319b036184" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-13%20at%209.11.59%E2%80%AFAM.png?VersionId=udYFz0q8tjEPR3pmKLHRSFRJN4dKakPO" />

<hr data-end="3877" data-start="3874" />
<h2 data-end="3919" data-section-id="rgckdv" data-start="3879">Built form controls and height limits</h2>

Proposed building heights across the site range from three to 12 storeys.

These controls are set out within the rezoning application and are intended to manage visual impact, maintain view corridors and ensure compatibility with the coastal landscape.

Floor space ratios and height limits are applied across different parts of the site to reflect varying environmental conditions and proximity to open space and the coastline .

Higher density is generally concentrated within the town centre, with lower-scale development toward the coastal edge and environmentally sensitive areas.

<hr data-end="4548" data-start="4545" />
<h2 data-end="4588" data-section-id="1minlda" data-start="4550">Retail, tourism and employment uses</h2>

In addition to residential development, the proposal includes retail, commercial and tourism uses.

This includes:

<ul data-end="4896" data-start="4706">
	<li data-end="4775" data-section-id="1jrun76" data-start="4706">Approximately 7,000–9,800sqm of retail and commercial floor space</li>
	<li data-end="4803" data-section-id="10kyifw" data-start="4776">A full-line supermarket</li>
	<li data-end="4830" data-section-id="fz1hdg" data-start="4804">Food and beverage uses</li>
	<li data-end="4896" data-section-id="1aqg2fj" data-start="4831">Tourism accommodation, including hotel and short-stay options</li>
</ul>

The proposal also identifies employment outcomes, with the development expected to support jobs both during construction and in ongoing operations.

These uses are concentrated within the town centre and key activity areas across the site.

<hr data-end="5142" data-start="5139" />
<h2 data-end="5172" data-section-id="162x2kt" data-start="5144">Infrastructure and access</h2>

The proposal includes upgrades to Captain Cook Drive, which provides the primary access to the peninsula.

These upgrades are intended to improve traffic flow and support emergency access.

The transport strategy also incorporates:

<ul data-end="5529" data-start="5407">
	<li data-end="5433" data-section-id="fanquy" data-start="5407">Internal road networks</li>
	<li data-end="5469" data-section-id="o6y80y" data-start="5434">Walking and cycling connections</li>
	<li data-end="5529" data-section-id="jgraft" data-start="5470">Proposed public transport routes and bus stop locations</li>
</ul>

The rezoning report includes detailed analysis of transport, flooding, and infrastructure requirements to support the staged development of the site .

<hr data-end="5723" data-start="5720" />
<h2 data-end="5769" data-section-id="14urh3" data-start="5725">Environmental and cultural considerations</h2>

The site is identified as having environmental and cultural significance, including areas of ecological value and Aboriginal archaeological sensitivity.

The proposal includes measures to protect and enhance these areas, including:

<ul data-end="6230" data-start="6004">
	<li data-end="6056" data-section-id="1pzyouo" data-start="6004">Retention and regeneration of coastal vegetation</li>
	<li data-end="6100" data-section-id="bjn2vz" data-start="6057">Strengthening of biodiversity corridors</li>
	<li data-end="6148" data-section-id="1bpeyoj" data-start="6101">Protection of riparian systems and wetlands</li>
	<li data-end="6230" data-section-id="lg0cka" data-start="6149">Integration of cultural interpretation and recognition of Indigenous heritage</li>
</ul>

The urban design report also outlines opportunities for incorporating Indigenous cultural elements into public spaces and landscape design.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">Next steps</h2>

The proposal is currently on public exhibition, with submissions open to the community. Feedback received during this period will inform the Department of Planning’s assessment of the rezoning.

If approved, the rezoning would establish the planning framework for future development applications across the site.

<hr data-end="6893" data-start="6890" />
<h2 data-end="6908" data-section-id="w7rk5f" data-start="6895">What the NSW Government says</h2>

Minister for Planning and Public Spaces Paul Scully said the planned closure of the sand mine and remediation of the Kurnell Peninsula presents an exciting opportunity to transform the area.

“This proposal envisions a vibrant new beachfront community with thousands of new homes, jobs and great open space in the Sutherland Shire. I encourage the community to have their say during the public exhibition period. Feedback from the community will play an important role in the assessment of the proposal.”

Sydney's newest beachfront city: NSW Gov to unlock 4,300 new homes on Kurnell peninsula

A long-awaited transformation of a former industrial site in Holroyd has been given the green light, with the NSW Government approving the $1.2 billion Crescent Parklands masterplan that will deliver more than 1,200 new homes just south of Parramatta.

The State Significant Development approval clears the way for a large-scale mixed-use precinct at <a href="https://www.apartments.com.au/new-apartments/1-crescent-street-holroyd-nsw-2142">1 Crescent Street</a>, replacing an underutilised site with a coordinated residential community anchored by new open space, retail, and commercial uses.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> for WA-based developer Tiberius, the approved scheme comprises seven buildings arranged across two precincts. In total, the development will deliver 1,227 apartments, including 201 allocated as affordable housing, alongside approximately 2,500 sqm of retail and 5,000 sqm of commercial space within a mixed-use podium.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="1cc82dd2-8184-4b86-8665-90653147820d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20buildings.png?VersionId=2ZmVDc_Rfc4AzQ6ShzZJlvdZnACLerVM" />

The project is structured as a masterplanned precinct rather than a standalone tower. Buildings 1 to 4 will rise from a shared podium with shop-top housing, while Buildings 5 to 7 are positioned closer to the northern park interface as residential flat buildings. The built form has been carefully modulated to balance density with amenity, with the design resolving building separation, solar access, and wind impacts at a precinct scale.

A significant focus of the design is the activation of Crescent Street and the integration of public domain. The submission notes that “individual townhouses [were] removed for community based functions to Crescent Street to increase activation and surveillance,” reinforcing a more urban and publicly engaged street edge. Retail, commercial tenancies, and resident amenity spaces are concentrated along this frontage and within the podium to support day-to-day activity.

The landscape strategy underpins the project’s identity, with a network of pedestrian connections, landscaped corridors, and open spaces linking the site internally and to its surroundings. The design prioritises permeability, delivering “increased uninterrupted flow between spaces for pedestrian access” and improved connections through to the adjoining parklands.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="19282454-ab2f-4e2c-866f-4b35cf4283d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20masterplan.png?VersionId=JQdWGYI5B5R1lzmK4omYOp_8KLPkT4Bv" />

Buildings within the western precinct are oriented toward the park, shaping a residential offering defined by proximity to open space. The design describes this approach as creating apartments “immersed in nature with apartments facing the park,” positioning the landscape as a central organising element of the masterplan.

The broader architectural response addresses both infrastructure and context, with taller elements capturing long-range views toward Parramatta while setbacks and separation distances mitigate impacts on surrounding residential areas. Sustainability initiatives, including solar optimisation, cross-ventilation, and integrated landscape systems, are embedded across the scheme.

Located approximately one kilometre south of Parramatta CBD, the 3.6-hectare site is bounded by Crescent Street, Woodville Road, and Holroyd Sportsground. It benefits from strong access to public transport, including nearby bus routes and train stations, and sits within a rapidly evolving corridor earmarked for increased residential density. The design also strengthens connections between surrounding green spaces, including Holroyd Sportsground and Parramatta Parklands.

The approval follows several years of planning, including a rezoning process that enabled significant uplift in height and density across the site. With determination now secured, Crescent Parklands is positioned to play a major role in delivering new housing supply within Greater Parramatta’s growth area.

Tiberius’ Crescent Parklands to deliver over 1,200 homes in major Holroyd transformation

Landlords

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Property investors in Victoria are facing a substantial increase in the cost and time invested in managing their assets, following new Victorian Government’s residential tenancies regulations. 

More than 120 new landlord obligations come into effect on March 29.  

The Real Estate Institute of Victoria CEO Gil King said the new standards will trigger an unbalanced regulatory burden on the rental market.

“Increasing ownership costs and making maintenance and management of property more complex is a deterrent for investment,” Mr. King said.

King says the new costs were “likely to result in higher rents.”

‘Or Victoria could see Mum and Dad investors exit this asset class, putting further pressure on rental availability and affordability for Victorians.”

The REIV noted investment property owners were now referred to as “rental providers” by the Andrews government.

King said the new standards will, in many cases, require substantial changes to processes, documents and systems, meaning a fresh round of education is needed for the sector. The Regulations will affect rental providers (landlords) and the 1.5 million Victorians living in rental housing. This includes private rental housing; public and social housing; rooming houses; caravan parks and residential parks.

The new regulations include what rental minimum standards will look like; modifications renters can make to rental properties along with updates to some forms for renters and rental providers given the terms used in the regulations that apply from 29 March 2021 will need to be changed to renters – currently called tenants; rental providers – currently called landlords; rental agreements – currently called tenancy agreements and rooming house operators – currently called rooming house owners.
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The Real Estate Institute of Victoria CEO Gil King said the new standards will trigger an unbalanced regulatory burden on the rental market

jchancellor

Victorian property investors face cost increases with 100+ new landlord obligations

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EXPERT INSIGHT

The data on rents published by Domain illustrates that this is a great time to be a landlord – in most locations across Australia. You might have a different view if you own an investment property in the inner-city areas of our biggest cities, but elsewhere we have a landlord’s market like never before.

Vacancy rates below 1% have become the norm in Australia. That’s a remarkable situation and it deserves repeating: vacancies under 1% are the norm.

Five of our capital cities – Perth, Adelaide, Canberra, Hobart and Darwin – have vacancy rates under 1%. Brisbane is only marginally higher. And many of our regional centres have vacancies closer to zero than to 1%.

You would be hard-pressed to find a significant regional city or town with a vacancy rate above 2%. I’ve been researching and writing about Australian real estate for almost 40 years and I’ve never seen a rental market situation like this.

Research entities confirm that many locations have the tightest rental markets ever recorded. Every day I’m having conversations with real estate professionals across the nation. And when the topic is the rental market, the story is always the same: when a dwelling becomes available for rental there are queues of people - 30, 40 or 50 applicants – competing for the property.

It’s common for prospective tenants to make offers well above the asking rent and/or to offer to pay six or 12 months in advance to beat the competition. That is why the Domain figures show rents rising sharply in locations across Australia, especially outside the big cities – despite pandemic-related restrictions from state governments.

Multiple regional centres in NSW, Queensland and Victoria have had rents growing10% or more, sometimes 15-20%, in the past year. Among the capital cities, there have been double- digit rises in Perth and Darwin – and significant increases also in Adelaide, Canberra and Brisbane. In Sydney, houses are up 5% although apartments have dropped.

There are many reasons why there is a dire shortage of rentals in most locations:

<ul>
<li> We haven’t been building sufficient new dwellings for the past three years or so.</li>
	<li> Vacancies are primarily an outcome of investor activity and investors have been sitting on the sidelines lately – owner-occupiers have been driving markets.</li>
	<li> The Exodus to Affordable Lifestyle, with large numbers of Australians leaving the big cities and moving to the fringes and to the regions, has further diminished the supply of rental properties.</li>
</ul>
This is a national crisis but it receives very little attention from media and even less from politicians. The various federal and state governments have been so busy dealing with the pandemic, they haven’t noticed the chronic shortage of properties and the dramatic impact of that on rentals.

One shudders to think what the situation would be if Labor had won the last Federal Election and scrapped negative gearing. Right now, we need the opposite kind of action – we need governments to provide direct incentives to Australians to become property investors and add to the rental pool. In the meantime, rents will keep going up. Propertyology’s head of research Simon Pressley is forecasting record increases and I think he’s right.

Terry Ryder is the founder of hotspotting.com.au 

ryder@hotspotting.com.au
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terryryder

It's a great time to be an Australian landlord: Hotspotting's Terry Ryder

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The Australian Taxation Office assistant commissioner Karen Foat predicts there will be a significant rise in negatively geared investors who claim a bigger tax deduction when their COVID-19 rental income does not cover the expense of owning the property.
Despite low interest rates, Australia's 2 million landlords have also missed out on millions of dollars in rental income.
<p data-gtm-vis-recent-on-screen-6236702_632="1593308659117" data-gtm-vis-first-on-screen-6236702_632="1593308659117" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">Landlords collectively typically declare about $43 billion in total rent and $47 billion in deductions, Ms Foat told Nine Entertainment, with around 60 per cent of rental properties negatively geared.
"But we also know that this year, there's a lot of landlords who are receiving a reduced amount of rent, whether that's because their tenants are paying less, or unable to pay at all, or if their property is sitting vacant," she said.
"We would anticipate that there is going to be a greater number of people whose properties end up negatively geared because they still claim the expenses but they are likely to have some level of reduced rent."
SQM Research managing director Louis Christopher anticipates a national 2.5 per cent decline in aggregate rents for the 2020 financial year, and a 2.5 per cent decline for the following year, bringing total rental income down to $40.9 billion.
This could lead to an extra $2 billion worth of losses claimed at tax time.
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j.ballantyne1990-6AQqhLzZaK

ATO expects bigger landlord tax deduction claims given COVID-19 rental income drop

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Investors are offloading properties in the weakened rental market, with apartment listings surging across capital cities.
It has been led by Sydney where there has been a 39 per cent jump in new stock during the past four weeks.
The apartments are often recently vacated.
Domain data also showed that between the four weeks to May 17 and the four weeks to June 14, apartment listings rose by 27 per cent in Melbourne.
They were up by 15 per cent in Brisbane.
Listings were up 37 per cent in Perth.
Soaring vacancies and widespread rental discounting have squeezed investors' cash flows to the extent that almost two in every five landlords are in a position of financial stress, particularly in the Sydney and Brisbane CBDs, during April and May.
Residential vacancy rates for the Sydney and Brisbane CBDs climbed see almost one in six apartments sitting vacant.
Competition for tenants has further intensified as short-stay landlords switched properties into the long-term rental market, leading to the owners of 820,000 rental properties being stressed, analysis by Digital Finance Analytics for The Australian Financial Review shows. Another 120,000 plus are under severe stress.
A property is considered to be in stress for its landlord when it has been vacant for more than two months and rental incomes are insufficient to cover running costs.
Units and apartments were 1½ times more likely to be stressed than houses, while rentals bought within the past three years were twice as likely to be stressed.
Digital Finance Analytics principal Martin North said the high degree of stress was surprising given the current low borrowing costs.
"I've never seen this level of investor stress in the past," Mr North said.
"It's a perfect storm thanks to COVID-19, the previous massive run-up in investment properties, fall in rental income, collapse of Airbnb demand and no inward migration."
The areas with the highest proportion of stressed investors were all in the apartment-dominated Sydney and Melbourne CBDs.More than eight in 10 investors in Sydney's Rushcutters Bay and Ultimo were stressed, with 1377 severely stressed.
In the Melbourne CBD and western Melbourne, more than three out of four landlords were stressed with 1918 investors under severe stress.
While apartment rentals were weak, a total investor wipeout was unlikely, AMP Capital chief economist Shane Oliver said.
"Investors are unlikely to default en masse as they can opt to freeze their mortgage repayments," Dr Oliver said.
"But the risks are still there."
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Investors head to the exits amid weakened COVID-19 rental market

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EXPERT OBSERVER 
As the public health response to supress the COVID-19 virus ramps up, so to does the economic fallout. Shutdowns and enforced spatial distancing are necessary to try to prevent hospital intensive care units becoming overwhelmed.
But businesses on the economic frontline – those shut or soon to be shut down by the public health restrictions – need immediate help to get through.
The necessary temporary hit to business incomes need not become a permanent hit to productive capacity. We should not risk a large swathe of shops, cafes, pubs, hotels, gyms, and hairdressers going to the wall.
Most of these frontline businesses have seen their income dry up overnight. Some have temporarily closed, others are <a href="https://www.goodfood.com.au/eat-out/news/what-melbournes-restaurants-are-doing-in-response-to-the-coronavirus-pandemic-20200320-h1moz4" target="_blank">finding creative ways to make some money</a> in online retail or takeaway services, for example, but most will replace only a fraction of their pre-crisis income.
<h2>Rent is the biggest barrier to survival</h2>
Staff layoffs, or more <a href="https://www.natlawreview.com/article/covid-19-australia-stand-down-what-does-it-all-mean" target="_blank">hopefully stand downs</a>, are the only option for most of these business. Even substantial wage subsidies won’t entice business owners to keep staff on when the business has shut its doors.
For businesses on the economic frontline, most of their variable costs such as wages and stock can be suspended during the shutdown. But their fixed costs – particularly rent – are substantial.
The average retailer pays almost A$12,000 in rent a month; the average gym, $10,000. Cafes and hairdressers are losing $3,000 to $4,000 each month in rent. 
For most exposed businesses, rent sits at less than 20% of operating costs under normal conditions, but while they hibernate through coronavirus, that figure will reach somewhere between 80% and 95%.
Some schemes have already been announced to help these businesses. The Commonwealth’s is the largest, and will pay small and medium businesses 100% of salary and wages withheld for tax purposes up to $100,000. For businesses to qualify for the full amount, they will need to withhold the same amount, so will need to be paying staff.
<a href="https://images.theconversation.com/files/323472/original/file-20200327-132965-1bqrk6j.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/323472/original/file-20200327-132965-1bqrk6j.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
 2019 data. Grattan Institute analysis of IBISWorld industry reports
State governments have announced partial relief of tax, rates and fees, and access to loans. This will help, but rent is the big unavoidable cost for most of the frontline businesses.
Exposed businesses will be losing thousands of dollars, or more, each month. Many will have some cash reserves, but for most a shutdown of three months or more will be very difficult to absorb.
A rent holiday, or at least a significant rent discount, would give these businesses a fighting chance at preventing a temporary shutdown becoming a permanent closure.
<h2>Market rates are close to zero</h2>
Most shopfronts can’t be put to other uses. That means the market price for retail, food, and accommodation services, and personal services shopfronts will be very close to zero during the shutdown.
Some landlords have done the right thing and given their tenants a rent holiday while these restrictions are in place.
This is smart: keeping their tenants in business will give these landlords the best chance of having a rented property when restrictions are lifted.
In normal circumstances, the market would work this through. But the danger here is it will happen too slowly. Some landlords refuse to accept renting out their premises for nothing.
In Melbourne, Chadstone retailers just wrote to Chadstone management asking for a rent holiday to “save our businesses”.
The response from management was <a href="https://www.smh.com.au/business/the-economy/chadstone-retailers-push-for-three-months-rent-free-citing-bankruptcy-fears-20200325-p54dnu">no.</a>
That mindset could send many thousands of shops, cafes, pubs, restaurants, hairdressers, gyms, cinemas, and tourism operators to the wall.
As of last week, more than 70% of businesses in these industries had already been hit by the COVID-19 crisis. That figure is expected to rise beyond 90% in the coming weeks.
“Closures” was the most common word used by business owners surveyed by the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/5676.0.55.003?OpenDocument" target="_blank">Bureau of Statistics</a> about the future effect of COVID-19.
<a href="https://images.theconversation.com/files/323434/original/file-20200326-133007-uaqa55.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/323434/original/file-20200326-133007-uaqa55.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/5676.0.55.003" target="_blank">Source: ABS cat no. 5676.0.55.003 - Business Indicators, Business Impacts of COVID-19, March 2020</a>
Preventing landlords from evicting commercial tenants, or requiring landlords to defer the rents, won’t help – businesses will still liquidate if they know they will be lumbered with many months of rent to pay back down the track.
While a short-term income hit for landlords isn’t insignificant, the damage to the economy will be much greater if a swathe of small and medium-sized businesses are lost.
<h2>Acting now will reduce the damage</h2>
The owners of some properties that need rental holidays still have to make monthly mortgage payments to banks. But the banks are offering loan holidays they might be able to take advantage of.
If there are gaps in the loan holiday arrangements, governments should work with the banks to ensure landlords are covered. Alternatively, governments themselves could offer partial compensation for lost rent.
Prosper Australia has suggested a uniform <a href="https://www.prosper.org.au/wp-content/uploads/2020/03/Memo-to-state-Governments_-Commercial-tennancy-intervention-for-Covid19-resilience.pdf" target="_blank">subsidy</a> that replaces 50% of lost commercial tenancy mortgage payments.
Right now, hundreds of thousands of businesses are crunching the numbers to see whether than can stay solvent. With rent on the expense side, those numbers won’t add up for long.
Every state and territory government ought to enact a rental holiday for the types of businesses on the frontline of this crisis. As the economic shockwave reverberates, state and territory ministers should have the power to add other vulnerable industries to that list.
The key is speed. For every day they wait, hundreds of businesses will fold.<img src="https://counter.theconversation.com/content/134890/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/danielle-wood-147710" target="_blank">Danielle Wood</a>, Program Director, Budget Policy and Institutional Reform, <a href="https://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>; <a href="https://theconversation.com/profiles/kate-griffiths-94706" target="_blank">Kate Griffiths</a>, Fellow, <a href="https://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/nathan-blane-934089" target="_blank">Nathan Blane</a>, Analyst, <a href="https://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-case-for-a-rent-holiday-for-businesses-on-the-coronavirus-economic-frontline-134890" target="_blank">original article</a>.
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The case for a rent holiday for businesses on the coronavirus economic frontline

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New regulations published in NSW will give immediate effect to the NSW Government’s COVID-19 rental relief measures, reflecting the National Cabinet’s Code of Conduct agreed to by all states.
Minister for Finance and Small Business Damien Tudehope and Treasurer Dominic Perrottet said the changes will support and guide tenants and landlords in negotiating agreements.
They are part of the NSW Government’s package of support for tenants and landlords which includes up to $440 million in land tax relief announced on April 13, to be split approximately 50-50 between the commercial and residential sectors.
“This is about adopting a national framework in NSW so agreements can be reached between parties and more businesses stay in business and people stay in jobs,” Mr Tudehope said.
“These new regulations require landlords to negotiate rent relief agreements with tenants in financial distress due to COVID-19 by applying the leasing principles in the National Code of Conduct.”
Mr Tudehope said the regulations - which also apply to commercial leases - would provide a clear way forward for tenants and landlords to reach agreements.
To facilitate these changes, and deliver increased mediation and advisory services to commercial parties, the NSW Small Business Commission will be bolstered with extra staff and an injection of $10 million from the $1 billion Working for NSW Fund.
Regulations relating to commercial leases were expedited under amendments passed by the NSW Parliament in March, which allow the Government to make laws that are reasonable to protect the health, safety and welfare of lessees or tenants during COVID-19.
New regulations to assist landlords and tenants in the residential sector were also published last week by the Minister for Better Regulation and Innovation.
Mr Perrottet said land tax relief would be available within weeks, with landlords also able to access a further land tax deferral for any outstanding amounts for a three-month period if they’ve claimed the land tax concession.
“Eligible landlords will be able to apply for a land tax concession of up to 25 per cent of their 2020 land tax liability on relevant properties so long as they pass on the full savings in the form of a rent reduction to their tenants,” Mr Perrottet said.
The commercial lease policy will apply to business tenants with a turnover of less than $50 million that experience a 30 per cent (or more) reduction in revenue as a result of the COVID-19 pandemic. 
For residential tenancies, households must show they have suffered a loss of income equal to or greater than 25 per cent due to COVID-19 and are struggling to make rental payments.
It is expected eligible landlords will be able to apply for land tax rebates from Service NSW from Monday, 4 May 2020.
More information is available via <a href="http://www.service.nsw.gov.au" target="_blank">Service NSW</a>.
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NSW Government acts to support commercial tenants and landlords

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Landlord insurance during the current rental crisis during the pandemic has emerged as complicated.
Agents and landlords have rejected rent decreases by saying it could invalidate the agent’s insurance policy.
It is the case but not for every policy.
Most policies do require proof of eviction or intention to re-let a home to claim for loss of rent, which some landlords might be considering if their tenants can’t pay.
Most insurers have stopped issuing new products until they receive certainty about evictions and non-payment of rent for tenants in hardship.
Existing policies will continue to be honoured, but landlords will need to find out if their insurer has waived the need to evict or show intention to re-let to claim for loss of rent.
IAG insurers NRMA, CGU, WFI, SGIO and SGIC have waived this requirement, Domain reported.
Suburbanite CEO Anna Porter, acknowledges insurance was a "grey area." 
"Many are relying on landlord insurance to cover the lost rent if their tenant applies for a payment pause but every policy is different.   “I urge you to absolutely speak with your insurance broker or insurance company directly and refer to your PDS,” she says.   “On the ground, we’re seeing that many policies state a claim will only be paid if the tenant is evicted or terminated by the tribunal or they leave without notice and default on payments after vacating with no warning.”   Generally, landlords will also need to be in a fixed lease period and follow the correct processes to be successful in a claim of this nature.   “Like me, you’re probably thinking that the current COVID-19 economy doesn’t allow for eviction,” says Porter.   “This issue is that if tenants can’t be evicted for falling into arrears then many landlords won’t be able to lean on the rental default provisions in their policies, assuming they even have a rental default in the policy.”  
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Landlord insurance claim doubts not assisting COVID-19 eviction avoidance 

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Landlords and real estate agents could face court, and prison or penalties up to $1.3 million, if they advice renters to use their superannuation to cover their rental payment during the coronavirus crisis.
In a note sent by ASIC's financial services enforcement group director Tim Mullally to the Real Estate Institute of Australia, Mullally said it could breach financial advice laws.
“ASIC is aware that some real estate agents are advising tenants who are unable to pay their rent, or who may find themselves in such a situation in future, to consider applying for early release of their superannuation," the letter read.
“Recent media reports and social media commentary outlining this conduct by some real estate agents is of significant concern to ASIC and, we would hope, you."
“ASIC intends to monitor this situation closely, and if contraventions of the licensing requirements of the Corporations Act are found, ASIC will not hesitate to act swiftly to protect vulnerable consumers,” Mullaly said.
The letter comes after workers who have been laid off due to COVID-19 were given permission to access up to $20,000 worth of superannuation over the next two years.
Mullaly continued stating that financial advice must only be provided by qualified and licensed financial advisers, not by real estate agents.
Individuals can be fined up to $126,000 and up to five years in jail for providing unlicensed financial advice. Corporations can be slapped with fines up to $1.26 million.
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“Tenants facing financial difficulty need sound financial guidance and potentially debt counselling. Specifically pointing them to and recommending them to consider the specific possibility of accessing superannuation is, again, likely to amount to a breach of the Act,” Mullaly said.
 
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jrobinson-rf4aSBido9

Landlords and real estate agents could face five years in prison by telling tenants to pay rent with their superannuation

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The minister for housing Michael Sukkar's has clarified what the six month moratorium on evictions means .
The ABC's Patricia Karvelas asked if people can stop paying rent if there's a moratorium.
"The short answer to your question is of course not", Sukkar said.
"There is a moratorium on evictions, but there's not a moratorium on the requirement to pay rents", Sukkar added.
The housing minister said it's useful to separate commercial and residential.
"From a commercial perspective, I know that our national cabinet will have more to say further to their principles that were outlined last week on how, particularly states and territories, are going to deal with it.
"As the PM has said, we need landlords and tenants to come together, and there must be an element of sharing the pain."
Sukkar said it's not in any landlords interest to lose a great tenant who may be going through short term difficulty.
"We are seeing a lot of landlords and tenants working closely together but we need to put in some minimum standards and that's what I'm confident the national cabinet will do."
Sukkar's clarification has been welcomed by the Real Estate Institute of Australia.
“A moratorium on evictions doesn’t mean rent is not payable, it is", REIA president Adrian Kelly said.
"If circumstances mean that payment in full is not possible it is a holding off from payments, not a cancellation.
“It is for people who cannot pay at this time not for those that can.
“If you can pay your rent now, you pay it.
“If you can’t pay your rent now, you have been given grace for six months, but will have to catch up when you are able to pay it again.”
 
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Tenants in rental moratorium will have to pay rents: Housing Minister

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Tenancy groups are seeking a six month ban on evictions and no rent increases for months.
But landlords are in a bind, as their mortgage repayments to the banks are likely due, although some lenders have offered mortgage payment relief without lodging a bad credit notice.
The PM Scott Morrison indicated the resolution was "complicated."
It is an issue that goes back to Friday's national cabinet meeting.
More and more workers are losing shifts, or losing jobs so the prime minister announced that states would work on model rules to provide relief to tenants in “hardship conditions”. 
On Sunday, the federal government moved to replace some of the income households have lost, temporarily doubling some social security payments and making grants to businesses.
It is not known how quickly these funds are adequately getting through given overloaded website systems.
Landlords who have insurance for loss of income have been told they to make a claim they would have to take the requisite steps for eviction.
Sydney academics have urged governments to implement a moratorium on evictions as long as the crisis lasts. 
Similar changes have already been made overseas as a sudden loss of wages puts renters at risk of arrears.
Renters who miss a payment can face termination orders in about eight weeks.
A government-imposed moratorium on evictions for the duration of the crisis could be done through legislation, or through an emergency executive direction to authorised officers to stop evictions.
In the United States, many states and cities have suspended eviction proceedings against tenants.
Ireland has suspended evictions and temporarily frozen rent increases.
In the United Kingdom, renters in the private or social sector are to be protected from eviction.
 
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