There’s a quiet patch of <a href="https://www.apartments.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, between the bustle of Glenferrie Road and the curve of the Yarra, that rarely sees change, and even more rarely, new apartments. But that’s exactly where <a href="https://www.apartments.com.au/developers/pomeroy-pacific-quattro-corp">PQD</a> is planting Kooyongkoot: a deliberate, 18-residence answer to the question of what downsizers actually want.

“This is something this pocket of Hawthorn has never seen before,” says Fil Gacesa, head of sales at PQD. “<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a> will deliver just 18 large-scale apartments in the heart of Hawthorn. It is the true definition of resort-style living.”

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/59D7VxzltmM?si=1iCzRD7FRneKryfv" title="YouTube video player" width="560"></iframe>

That scale is central to the story. It’s what allows for two dedicated lift cores, short corridors, and a generous lightcourt that draws natural ventilation and sunlight into every residence. It’s also what makes room for the sort of amenity usually confined to high-density towers: a fully equipped wellness centre with infrared and traditional saunas, yoga and pilates studio, cold therapy shower, and treatment room. There’s a golf simulator, car and dog wash stations, and extensive storage too, not bolted on, but baked in from the start.

But more than the checklist, it’s the design intent that carries weight. “This project has been many years in the making,” says Mark Pomeroy, Director of PQD. “Not just in planning, but in listening, to what our buyers and the local community are looking for”.

[smartcode_project:default project_id=102717 project_image_fid=355289]

That listening shows up in the materials, oak floors, natural stone, V-ZUG appliances, and in how space is handled. Penthouses feature private rooftop terraces with pools. Terraces and garden residences embrace outdoor connection. Inside, the layouts skew large and open, geared for hosting, not just housing.

Architecturally, <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>’s approach is grounded. There’s no reaching for spectacle here. Instead, the building offers a sculptural calm, anchored by landscaping from Eckersley Garden Architecture.&nbsp;

“We wanted to create spaces that feel expansive, serene, and meaningfully connected to daily life,” said founding partner Chris Stribley elsewhere.

[smartcode_project:default project_id=102717 project_image_fid=355304]

That sentiment, calm, connection, echoes in the location itself. Kooyongkoot sits just a short stroll from Central Gardens, Fairview Park, and the Rivoli Cinema. Tram lines and schools are close, but the street is tucked, quiet, and leaf-lined.&nbsp;

“Residents of Kooyongkoot will be a short stroll from Fairview Park, Central Gardens, and the Glenferrie Road retail strip," Gacesa notes, "but you're also cocooned in this peaceful pocket behind extensive landscaping by Eckersley Garden Architecture.”

Kooyongkoot is set for completion in late 2026.

[smartcode_project_cta:default project_id=102717]

Staff Writer

The project that said no to compromise: Inside Kooyongkoot, Hawthorn

When long-time Ivanhoe locals Graeme and Catherine, decided it was time to downsize, they weren’t necessarily in a rush.&nbsp;

Like many in their stage of life, they had started thinking about apartment living, but anticipated making the shift in two to three years.

That timeline changed when they visited <a href="https://www.urban.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe">Candela</a>, a new boutique development by <a href="https://www.urban.com.au/developers/salter-brothers">Salter Brothers</a>. The project ticked all the boxes they were looking for: location, quality design, and long-term lifestyle benefits, which prompted them to bring their decision forward.

“It was the right place at the right time,” they said. “We knew immediately it ticked all the boxes, and we didn’t want to wait.”

[smartcode_project:default project_id=342 project_image_fid=358855]

Their decision to downsize was driven by a combination of practical needs and lifestyle considerations. Their existing home, while much loved, had become increasingly difficult to maintain. It spanned multiple levels, included extensive front and back gardens, and was starting to show the wear that comes with age.&nbsp;

They were looking for a more manageable lifestyle, one with less upkeep and more freedom. A brand-new apartment with no maintenance requirements and the ability to simply “lock up and leave” gave them peace of mind and a greater sense of control over their future.

Financially, the purchase made sense as well. The available stamp duty savings, strong price-to-value offering, and timing of the settlement suited their plans, making the transition smoother and more cost-effective. The apartment's design and inclusions further supported their choice.

[smartcode_project:default project_id=342 project_image_fid=357493]

The layout was both functional and flexible: three bedrooms, a butler’s pantry, a separate laundry, and a large open-plan living area. It gave them the freedom to host a family, accommodate guests, or set up a home office. The expansive balcony and elevated views added to the appeal, providing a sense of openness and connection to the outdoors.

“It just had a really good flow,” Catherine noted, something they found lacking in many other apartments they’d considered, particularly in the established market.

Candela’s boutique scale was another deciding factor. With a smaller number of residences and a top-floor penthouse position, the couple felt the development offered the privacy and space they were looking for, without feeling isolated.

“We liked that it wasn’t a huge development. It felt well-balanced, modern but still with a sense of community, not overwhelming,” they said.

[smartcode_project:default project_id=342 project_image_fid=357508]

Equally important was the ability to remain in Ivanhoe, a suburb they know well and have deep roots in. After 46 years in the area, proximity to local parks, shops, and familiar faces mattered just as much as the apartment itself.

“We didn’t want to give up the community we’ve known for decades. Candela allowed us to upgrade our lifestyle while staying in the place we call home.”

With a Walk Score of 90, the village location supports a convenient, connected lifestyle. <a href="https://www.apartments.com.au/developments/ivanhoe-vic-3079">Ivanhoe</a> Station is just a eight-minute walk away, and the neighbourhood offers access to parks, cafes, restaurants, and schools along Upper Heidelberg Road, all within easy reach.

Beyond the apartment, the couple also saw value in the broader vision for Candela, one that integrates residential living with public spaces and local amenities.&nbsp;

The development introduces 58 new apartments as well as a mix of commercial and social spaces that integrate contemporary architecture with the suburb’s existing character.&nbsp;

At ground level, residents will find a charming café and a lifestyle wellness centre, perfect for unwinding and rejuvenating. Meanwhile, the rooftop garden offers a stunning vantage point for residents to enjoy breathtaking sunsets, host gatherings, or enjoy barbecues with family and friends. It's not just a place to live; it's a vibrant community where every moment is an opportunity to connect and create lasting memories.

[smartcode_project_cta:default project_id=342]

Why Ivanhoe locals are choosing to downsize to Candela

Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.

Project management and construction management firm Creative Vision filed the plans for the&nbsp;multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.

According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="34797362-f3dc-4d84-8235-2657fc5f3bde" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan.png?VersionId=Uzckrz9tUpDQl5lX1_WMhjnv16bsr8wG" />

The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.

The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.

The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="369d7b54-1279-4cde-88ec-dcb215594414" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Podium_1.png?VersionId=QArL7B2kkLt63vl5xvL0FNV_ardAlez4" />

The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.

Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.

Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.

First look: 900-home mixed-use precinct planned for Leppington

Leading Australian integrated property development group, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>, has released the signature penthouses crowning its landmark AURA by Aqualand precinct at 168 Walker Street in North Sydney, unveiling Il Magnate and La Divina as the largest and most luxurious penthouses in the suburb.

With prices anticipated to commence from $15 million, and each accompanied by a new Porsche Carrera 911 valued at over $500K, the residences mark the culmination of <a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA by Aqualand</a>’s decade-long journey and the beginning of its final sales chapter. 
&nbsp; 
Their release follows more than $850 million in record-breaking residential sales and the building’s completion and occupation.

[smartcode_project:default project_id=30959 project_image_fid=358868]

The Richards Stanisich-designed 284 sqm Il Magnate and 224 sqm La Divina penthouses, collectively known as The Icons of AURA, are conceived as grand luxury homes rather than apartments, with expansive proportions, elevated materiality and curated identities that reflect their status as one-off residences.&nbsp;

Il Magnate features a grande master suite, complete with substantial walk-in dressing area and ensuite, three other bedrooms, second ensuite and another bathroom, powder room, open plan kitchen, scullery, substantial dining area and generous living room divided by a feature fireplace, and a multifunction wintergarden, which is ideal for a study and adjoining office breakout space. &nbsp;

Meanwhile, the La Divina residence offers the same amenities, sans the powder room, on a slightly smaller alternate floor plan configuration.

[smartcode_project:default project_id=30959 project_image_fid=358863]

Each occupies half of AURA by Aqualand’s topmost 28th level, comes with four secure car spaces and pairs sweeping Sydney Harbour panoramas with large-scale living spaces, refined detailing and a level of craftsmanship and amenity rarely offered in the North Shore market.&nbsp;

Penthouse residents will also receive Etymon’s ‘Black Key’ private concierge and lifestyle management service, an invitation only offering providing the ultimate in bespoke personalisation, including a range of everyday discrete services, from dinner party management, grocery deliveries, pet feeding or plants watered, dinners, snacks and coffee deliveries, event ticket sourcing, right up to organising travel visas and international airfares. Rarely seen in Australian properties, the service provides residents the benefits of living in a world-class luxury hotel-style home, akin to The Ritz, or the Waldorf Astoria.

[smartcode_project:default project_id=30959 project_image_fid=358862]

<a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>’s Director, Kirsten Stanisich, said the studio set out to craft residences that feel profoundly considered, contemporary and deeply connected to their setting.

“From the outset, we approached these penthouses with the sensibility of a grand Parisian residence - generous in scale, elegant in proportion and designed to feel more like a handcrafted home than an apartment," Stanisich said.

“Their elevated position and sweeping harbour outlook informed every decision, creating a rare connection between urban sophistication and natural calm. We shaped each space with expressive materiality, sculptural forms and bespoke detailing that invite touch and interaction.&nbsp;

“The result is a pair of residences defined by volume, light and an inherent softness - refined, flexible and deeply personal. These penthouses are unlike anything else in North Sydney, offering a sanctuary of true luxury framed by some of the city’s most remarkable views.”

For Aqualand’s Head of Sales &amp; Marketing, Alex Adams, the collaboration with Porsche underscores the shared ethos behind the residences.

“Aqualand’s collaboration with Porsche underpins both brand’s sharing an obsession with craftsmanship, design excellence, and enduring value," Adams said.

“Our penthouses are created for those who appreciate the finer details and expect the extraordinary at every touchpoint. Including a Porsche simply extends that experience beyond the residence - it’s a continuation of the lifestyle our buyers already live.”&nbsp;

[smartcode_project:default project_id=30959 project_image_fid=292862]

Aqualand’s Managing Director, Jin Lin, said the penthouses represent both the pinnacle of AURA by Aqualand and an important design benchmark for the company’s future pipeline.&nbsp;

“These stunning penthouses reflect the purest expression of Aqualand’s design ambition," Lin said.

“The unparalleled design intent makes them not only the glistening crown of AURA by Aqualand, but the crown of North Sydney itself. They’re essentially a thank you gift to a burgeoning community that deserves this level of quality and architectural consideration.&nbsp;

“We’re leveraging the unrivalled standard set here as the foundation for what comes next, including our upcoming Anderson Street, Chatswood; 15 Blue Street, North Sydney and Central Barangaroo projects. Purchasers of these penthouses will essentially be living inside the blueprint of Aqualand’s future.

“These landmark residences demonstrate how far North Sydney has evolved and the strength of demand for highly curated, bespoke luxury homes. They’re more than penthouses, they’re legacy residences.&nbsp;

“With AURA by Aqualand now a thriving new precinct with residents well and truly settled, and our in-house world-class lifestyle amenity activated, Il Magnate and La Divina represent a once-in-a-lifetime opportunity to secure an extraordinary piece of North Sydney’s future.”

[smartcode_project_cta:default project_id=30959]

Joel Robinson

Aqualand launches North Sydney penthouses with free Porsche Carrera 911

<a href="https://www.apartments.com.au/developments/bokarina-qld-4575">Bokarina</a> Beach has quietly evolved into one of the Sunshine Coast’s most complete coastal lifestyle precincts, defined not just by proximity to the ocean, but by how residential living, local retail and everyday amenity are stitched together.&nbsp;

Gardner Vaughan Group’s <a href="https://www.apartments.com.au/new-apartments/bask-bokarina-38-bokarina-boulevard-bokarina-qld-4575">Bask Bokarina</a> now represents the final residential chapter in that transformation.

[smartcode_project:default project_id=141609 project_image_fid=333360]

Over recent years, the Bokarina Beach precinct has taken shape as a walkable, community-oriented neighbourhood, anchored by beachfront access, Lake Kawana to the west, and a growing mix of cafés, specialty retail and public open space.&nbsp;

With Zinc Bokarina already delivered next door by <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG), Bask is the last opportunity to buy a brand new apartment within the precinct, effectively rounding out a fully formed coastal village.

GVG has positioned Bask to strengthen that lifestyle framework. Ten ground-floor retail spaces are planned beneath the residences, extending Bokarina Boulevard’s existing activity and reinforcing the area’s everyday convenience, from casual dining and coffee to local services, within a short walk of the beach.

[smartcode_project:default project_id=141609 project_image_fid=333359]

The residential component comprises 135 apartments across two buildings, Mydas and Caretta, with a clear shift toward larger three- and four-bedroom layouts and penthouses. That mix reflects a maturing buyer profile in Bokarina, where demand is increasingly led by owner-occupiers and active downsizers seeking space, permanence, and connection to place rather than short-term coastal accommodation.

Design and amenity have followed the same logic. Residents will have access to a heated plunge pool, gym, private dining room with a full kitchen, landscaped communal gardens with barbecues and a firepit, and a shared herb and vegetable garden, facilities intended to support daily use rather than resort-style turnover. Pet-friendly features, including a dog wash bay, acknowledge both buyer expectations and the area’s dog-friendly beach, located around 250 metres from the site.

[smartcode_project:default project_id=141609 project_image_fid=333366]

“Bokarina has become one of the Sunshine Coast’s most desirable beachside communities, and Bask represents the very last chance to buy new in this location,” GVG Director Sam Gardner said.&nbsp;

“Our focus has been to create spacious, functional apartments that meet the needs of locals who want to downsize without compromise, as well as those seeking a full-time coastal retreat.”

Positioned between the Pacific Ocean and Lake Kawana, Bask apartments have been oriented to capture outlooks toward the water or the Glass House Mountains, reinforcing the project’s connection to its natural surroundings. With parks, beachfront paths, hospitals, retail and public transport already in place, Bask arrives at a point where the broader precinct is no longer emerging, but established.

Construction is expected to complete in Q3 this year, with apartments ready to move into this Spring.

[smartcode_project_cta:default project_id=141609]

Bask to complete Bokarina’s Sunshine Coast lifestyle precinct as final apartments are released

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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