<p>A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.</p>

<p>The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=364156]</p>

<p>Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.</p>

<p>“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.</p>

<p>That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.</p>

<p>The absence of holiday letting within the building has also resonated strongly with purchasers.</p>

<p>“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366491]</p>

<p>The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.</p>

<p>“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.</p>

<p>“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366486]</p>

<p>Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.</p>

<p>Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.</p>

<p>A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.</p>

<p>The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.</p>

<p>&nbsp;</p>

<p>To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.</p>

<p>[smartcode_project_cta:default project_id=150454]</p>


Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

<p>Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.</p>

<p>The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.</p>

<p>The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371009]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.</p>

<p>The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.</p>

<p>Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371016]</p>

<p>Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.</p>

<p>Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371017]</p>

<p>Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.</p>

<p>The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371025]</p>

<p>Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.</p>

<p>The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.</p>

<p><sup>*Conditions apply in relation to the deposit match offer.</sup></p>

<p>[smartcode_project_cta:default project_id=139552]</p>


Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

<p data-end="181" data-start="0">Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.</p>

<p data-end="484" data-start="183">From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.</p>

<p data-end="657" data-start="486">Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.</p>

<p data-end="806" data-start="659">Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.</p>

<p data-end="871" data-start="808">“We know the buyer profile exceptionally well,” Abolakian says.</p>

<p data-end="1097" data-start="873">“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”</p>

<p data-end="1169" data-start="1099">That buyer has historically been overwhelmingly owner-occupier driven.</p>

<p data-end="1434" data-start="1171">Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.</p>

<p data-end="1533" data-start="1436">“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.</p>

<p data-end="1665" data-start="1535">“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”</p>

<p data-end="1721" data-start="1667">That philosophy extends well beyond apartment layouts.</p>

<p data-end="1966" data-start="1723">From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.</p>

<p data-end="2051" data-start="1968">“There was probably a period where having an approved project in market was enough,” he says.</p>

<p data-end="2154" data-start="2053">“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”</p>

<p data-end="2386" data-start="2156">“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”</p>

<p data-end="2386" data-start="2156">[smartcode_project:default project_id=110379 project_image_fid=311393]</p>

<p data-end="2549" data-start="2388">The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.</p>

<p data-end="2678" data-start="2551">For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.</p>

<p data-end="2757" data-start="2680">“People buying now often aren’t moving in for several years,” Abolakian says.</p>

<p data-end="2949" data-start="2759">“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”</p>

<p data-end="3219" data-start="3163">That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.</p>

<p data-end="3219" data-start="3163">[smartcode_project:default project_id=149594 project_image_fid=362634]</p>

<p data-end="3454" data-start="3221">While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.</p>

<p data-end="3546" data-start="3456">“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”</p>

<p data-end="3919" data-start="3669">That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.</p>

<p data-end="4005" data-start="3921">“It’s about creating something that feels special without being excessive,” he says.</p>

<p data-end="4112" data-start="4007">“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”</p>

<p data-end="4112" data-start="4007"><img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" /></p>

<p data-end="4243" data-start="4114">The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.</p>

<p data-end="5230" data-start="5149">“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.</p>

<p data-end="5392" data-start="5232">“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”</p>

<p data-end="5674" data-start="5394">Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.</p>

<p data-end="5723" data-start="5676">“There are definitely people waiting,” he says.</p>

<p data-end="5902" data-start="5725">“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”</p>

<p style="text-align:start">Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.</p>

<p style="text-align:start">Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.</p>


Why Hyecorp continues to back Sydney's Lower North Shore apartment market

<p>South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.</p>

<p>The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.</p>

<p>RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=356540]</p>

<p>Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.</p>

<p>RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.</p>

<p>The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.</p>

<p>“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.</p>

<p>[smartcode_project:default project_id=150787 project_image_fid=366230]</p>

<p>While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.</p>

<p>Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.</p>

<p>Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.</p>

<p>However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.</p>

<p>[smartcode_project:default project_id=143932 project_image_fid=367515]</p>

<p>The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.</p>

<p>Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.</p>

<p>The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370960]</p>

<p>ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.</p>

<p>“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.</p>

<p>RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.</p>

<p>Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.</p>

<p>The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.</p>

<p>Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.</p>

<p>Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.</p>

<p>Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.</p>

<p>“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.</p>


SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

<p data-end="231" data-start="139">Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.</p>

<p data-end="597" data-start="233">For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.</p>

<p data-end="699" data-start="599">Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.</p>

<p data-end="1041" data-start="701">In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.</p>

<p data-end="1173" data-start="1043">Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.</p>

<p data-end="1173" data-start="1043">[smartcode_project:default project_id=4896 project_image_fid=368543]</p>

<p data-end="1566" data-start="1175">The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.</p>

<p data-end="1629" data-start="1568">That process has culminated in approval for Camberwell House.</p>

<p data-end="1845" data-start="1631">The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.</p>

<p data-end="2162" data-start="1847">It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.</p>

<p data-end="2162" data-start="1847">[smartcode_project:default project_id=4896 project_image_fid=368544]</p>

<p data-end="2438" data-start="2164">Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.</p>

<p data-end="2496" data-start="2440">The building’s vertical presence will also set it apart.</p>

<p data-end="2868" data-start="2498">Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.</p>

<p data-end="2868" data-start="2498">[smartcode_project:default project_id=4896 project_image_fid=368568]</p>

<p data-end="3133" data-start="2870">Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.</p>

<p data-end="3317" data-start="3135">Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.</p>

<p data-end="3413" data-start="3319">Beyond the private residences, a significant component of the project is its amenity offering.</p>

<p data-end="3710" data-start="3415">Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.</p>

<p data-end="3852" data-start="3712">This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.</p>

<p data-end="3852" data-start="3712">[smartcode_project:default project_id=4896 project_image_fid=368588]</p>

<p data-end="4137" data-start="3854">Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.</p>

<p data-end="4220" data-start="4139">The inclusion of these facilities reflects a broader shift in buyer expectations.</p>

<p data-end="4590" data-start="4222">As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.</p>

<p data-end="4644" data-start="4592">Camberwell House is positioned to benefit from both.</p>

<p data-end="4919" data-start="4646">Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.</p>

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
<p data-end="271" data-start="88">Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.</p>

<p style="text-align:start">“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.</p>

<p>“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.</p>

<p>“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.</p>

<p>“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”</p>
</section>

<p data-end="5000" data-start="4921">[smartcode_project_cta:default project_id=4896]</p>


Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

New Housing

<html><body>
<h3 class="post-title entry-title"> </h3>
<p>We traded in a car this week for about a twentieth of what it was bought for when new.</p>
<h3 class="post-title entry-title"> </h3>
<p>Not so keen so reproduce this underwhelming result, in its stead I bought a 2012 Ford with 36,000 clicks on the clock, for around half of its 'as new' price. A bit more palatable.  </p>
<h3 class="post-title entry-title"> </h3>
<p>Being no spring chicken any longer, I could obviously afford to buy new, but it's only a runabout and buying second hand simply offers far superior value. </p>
<h3 class="post-title entry-title"> </h3>
<p>Besides, I feel I should practice what I preach: when compounded over a couple of decades, $20,000 could be worth quite a lot in the future. </p>
<h3 class="post-title entry-title"> </h3>
<p>Of course, someone must buy all the new vehicles, else they'd never be sold. But who?</p>
<h3 class="post-title entry-title"> </h3>
<p>Well, some people just like the 'feel' of driving something brand new. And it sometimes makes sense for some company car drivers. </p>
<h3 class="post-title entry-title"> </h3>
<p>Other people just have money burning a hole in their pocket, I guess, and more power to them...</p>
<h3 class="post-title entry-title"> </h3>
<p>Who buys new dwellings?</p>
<h3 class="post-title entry-title"> </h3>
<p>In a similar vein, buying new property tends to incur quite a hefty price premium, and for those buying 'off the plan' there is always that nagging risk that the final product doesn't much resemble what was breezily sketched in the brochure (those busy main roads just never seem to feature, hey!). </p>
<h3 class="post-title entry-title"> </h3>
<p>Some speculators go down this path anyway, hoping to make a fast capital gain before the property is even constructed. I've seen this work very well (e.g. Barangaroo), but have seen it go wrong more often (too may places to mention).  </p>
<h3 class="post-title entry-title"> </h3>
<p>I must confess I've bought new property in Sydney before, and I'm even considering doing so elsewhere again right now, though I wouldn't necessarily recommend it to anyone looking for a bargain.</p>
<h3 class="post-title entry-title"> </h3>
<p>Why?</p>
<h3 class="post-title entry-title"> </h3>
<p>In fact, why would anyone buy new property? It's a bit like buying a new car in many ways. </p>
<h3 class="post-title entry-title"> </h3>
<p>Well, firstly, some people just like the undeniably fresh feel of an unused dwelling. </p>
<h3 class="post-title entry-title"> </h3>
<p>Secondly, downsizing Baby Boomers can comfortably afford to buy new for cash using the proceeds from their home sale - so they may elect to buy new, as indeed they have earned the right to. </p>
<h3 class="post-title entry-title"> </h3>
<p>Thirdly, and unfortunately, some would-be investors attend 'educational' courses which convince them that there are great benefits to buying new, often not realising that the apparent white knights doing the educating are actually salesmen (sometimes egregiously posing as psuedo-financial advisors).  </p>
<h3 class="post-title entry-title"> </h3>
<p>The middlemen/salesmen may secure up to a 6 percent or greater commission from the developer, unbeknownst to the unsuspecting buyer. Goodness knows how this is still allowed to happen, but nevertheless it does. </p>
<h3 class="post-title entry-title"> </h3>
<p>Nascent self-managed super-funds (SMSFs) and inexperienced investors are key target groups for this type of salesman. </p>
<h3 class="post-title entry-title"> </h3>
<p>In truth, there actually are tempting depreciation and other deductions available to investors in new properties, since policy makers know that they must attempt to incentivise investors to buy new dwellings in order to stimulate construction. </p>
<h3 class="post-title entry-title"> </h3>
<p>Strangely these generous benefits are rarely mentioned in the now-traditional annual negative gearing debate.</p>
<h3 class="post-title entry-title"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;"> </span></h3>
<h3 class="post-title entry-title"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;"><a href="/images/2016/10/20/ATO.jpg" target="_blank">Click to enlarge</a></span></h3>
<div id="post-body-4869361016050785926" class="post-body entry-content">
<div>
<div class="separator">
<img src="/images/2016/10/20/ATO.jpg" alt=""> </div>
<div class="separator"> </div>
</div>
<div>That said, if anyone ever throws you this sales pitch in order to flog you a new property, tell them you're considering buying a one-year-old dwelling for the same benefits and gauge their reaction (if they're dead set against the idea, you'll know why: obviously they are angling for a sales commission from the developer). </div>
<div> </div>
<div>Fourthly, a high percentage share of the new dwelling stock in Australia is bought by non-residents, a cohort typically restricted from buying established stock (except in certain circumstances, such as for development purposes). </div>
<div> </div>
<div>The Foreign Investment Review Board (FIRB) typically restricts non-residents to new properties or development projects in order to encourage construction, and by and large this policy works. </div>
<div> </div>
<div>For this reason - especially with lenders less than keen to extend finance to offshore buyers of late - non-settlements on new apartments will be one of the most keenly observed market metrics over the next two years. </div>
<div> </div>
<div>And fifthly, purchasing new just suits some buying demographics. It is frequently said that Chinese buyers like unused property to the extent that some don't even let out their new dwellings, in order to keep them in a pristine condition.</div>
<div> </div>
<div>
<div><strong><span>Incentives for first homebuyers</span></strong></div>
<div> </div>
<div>For first homebuyers, there are typically incentives available to buy or construct new homes.<br><br>These tend to vary over time, and by state and territory. The available incentives as at September 2016 are summarised in the table below. </div>
<div> </div>
<div><a href="/images/2016/10/20/INCENTIVES2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/20/INCENTIVES2.jpg" alt=""></div>
<br><div>In the same way that I wouldn't buy a new investment property for the depreciation benefits due to the purchase price premium, first homebuyers should be wary of buying new solely to get their hands on cash grants. </div>
<div> </div>
<div>Fortunately, most young people are quite wise to this, and a larger cash grant doesn't necessarily equate to more buyers. </div>
<div> </div>
<div>In August, for example, the housing finance figures recorded only 6 (six!) owner-occupier commitments for the purchase of new dwellings in the Northern Territory, despite a lavish cash grant of $26,000 being available for first-timers!</div>
<div> </div>
<div>That said, well-targeted grants do tend to be effective, as the recently revised first homebuyer statistics showed. </div>
<div> </div>
<div><a href="/images/2016/10/20/FHB.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/20/FHB.jpg" alt=""></div>
<div> </div>
<div><strong><span>New dwelling purchases</span></strong></div>
</div>
<div> </div>
<div> </div>
<div>With such a high share of new dwellings being bought by offshore buyers, particularly from mainland China these days, the domestic housing finance figures only show a part of the story. </div>
<div> </div>
<div>Overall, the August housing finance commitments figures showed domestic transaction volumes for new builds holding up well, which is good news for the economy given that there is a record number of completions due over the next two years. </div>
<div> </div>
<div><a href="/images/2016/10/20/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/20/A1.jpg" alt=""></div>
<br><div>At the state level, when the original data is plotted in rolling annual terms, it appears that volumes began to increase steadily in each of the most populous states from around 2012 when the interest rate easing cycle commenced in earnest.</div>
<div> </div>
<div><a href="/images/2016/10/20/A2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/20/A2.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">Stay and renovate</span></strong><br><div> </div>
<div>Finally for today, various forecasters have long predicted a boom in major renovations.</div>
<div> </div>
<div>Generally this makes sense as a concept, for the stamp duty thresholds for the two largest cities were originally designed with much lower purchase prices in mind.</div>
<div> </div>
<div>As such, from the sublime to the ridiculous, stamp duty collection in Sydney has risen to what would previously have been thought of as absurd heights - the state's coffers are literally overflowing!</div>
<div> </div>
<div>Homeowners should therefore be incentivised to stay put and renovate rather than incur the punitive transaction costs of moving. </div>
<div> </div>
<div>In the event there has indeed been a decent boom in major renovations activity in Sydney, but to date this has not been replicated elsewhere, and the anticipated contribution to GDP has not yet materialised.</div>
<div> </div>
<div><a href="/images/2016/10/20/A3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/20/A3.jpg" alt=""></div>
<br><p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<br><div> </div>
</div>
</body></html>

pwargent-M4siyDbqQY

Five reasons buyers seek new dwellings: Pete Wargent

<html><body>
<p>GUEST OBSERVATION</p>
<p>This month, yet another policy agreement on housing between the Commonwealth and state and territory governments came into effect. The National Housing and Homelessness Agreement is the latest version of a 73-year-long series of such intergovernmental pacts to ensure affordable housing for lower-income Australians and to fund services for the homeless.</p>
<p>It replaces the ten-year National Affordable Housing Agreement and a series of partnerships since 2008 to tackle homelessness – the National Partnership Agreement on Homelessness. The latest agreement has more achievable performance indicators than its predecessors. It also requires the states to report on their annual financial contributions – a worthy step up for transparency.</p>
<p>But, at a time of growing population and enduring housing stress, the Commonwealth’s latest budget promise to maintain its current funding contribution of A$1.3 billion for the housing agreement means there has been no increase in real funding. Keeping it at what it has been isn’t enough to cover the costs of current services, let alone increase them.</p>
<p>So, there is a disconnect between the lofty goal of improving access to affordable, safe and sustainable housing and the funding capable of supporting it. Until this funding shortfall is addressed, any new national housing and homelessness agreements will continue to be essentially different in name only.</p>
<p><strong>What’s new this time?</strong></p>
<p>Compared to recent former agreements, three matters stand out as new or refreshed.</p>
<p>First is the policy breadth. Unlike its predecessors, the new agreement aspires to improve access to housing “across the housing spectrum”. This refers to the full suite of housing tenures – from crisis housing to home ownership. Within this spectrum the Commonwealth has set several immediate priorities:</p>
<ul>
<li>achieving an efficient, responsive and well-managed social housing system</li>
<li>support for community housing and affordable housing models that can viably increase housing supply</li>
<li>tenancy reform that encourages security of tenure in the private rental market</li>
<li>strategies to promote market supply and efficiency, including planning system reforms, land-release initiatives and support for home ownership.</li>
</ul>
<p>This broadened coverage is generally welcome, but it falls short of satisfying the calls for a national housing strategy. This means many national policies with major impacts on housing demand and cost – such as taxes on housing investment, immigration levels and income support for renters – remain outside the influence of the agreement. Such policies also strongly influence the prospects of reducing housing stress.</p>
<p>The second, and arguably biggest, set of changes concerns accountability. This includes an expanded list of performance measures, the Commonwealth leading a standardised approach to data measures, and a formal independent Productivity Commission review of the agreement to be conducted within four years.</p>
<p>The new performance indicators replace the targets from 2008, which were never achieved. The failed measures were quantitative in nature, while the new ones simply adopt a requirement for progress (an increase or a decrease, as appropriate), which can be more readily achieved.</p>
<p>For example, the Rudd government’s pledge to halve the rate of homelessness by 2020 has shifted to “decreases in people experiencing homelessness and repeat homelessness”. Similarly, the 2008 commitment to reduce the proportion of low-income renter households experiencing rental stress by 10% has been replaced by a commitment to simply reduce the proportion of such households.</p>
<p>A third feature is a requirement for states and territories to annually publish housing strategies. Stakeholders will be able to judge and compare the merit of these published blueprints. These will come after a new set of high-level bilateral agreements negotiated between each state and territory and the Commonwealth.</p>
<p>This highlights differences in housing conditions between jurisdictions and incorporates state-level priorities in addition to those of the Commonwealth. Those published so far vary considerably in ambition and specificity.</p>
<p><strong>The elephant in the room</strong></p>
<p>While there are positive directions in the new agreement, the funding deficit remains an issue. Despite not increasing its funding, the Commonwealth hopes the states and territories will increase theirs.</p>
<p>The Commonwealth, however, has failed to extend or replace other large housing programs that operated in the past decade. These included the now closed National Rental Affordability Scheme, which resulted in over 36,000 new affordable rental houses, and a A$5 billion national partnership to improve housing supply and conditions in remote (largely Indigenous) communities.</p>
<p>As a result there is now less federal funding for new social and affordable housing than at any time over the last decade.</p>
<p><img src="https://counter.theconversation.com/content/99936/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">With so much detailed by so many about the manifest inadequacy in funding required to meet housing need in Australia, we can regrettably predict that the new agreement will not contribute much at all to an increased supply of social and affordable housing. Indeed, this is tacitly acknowledged – the agreement’s carefully crafted performance indicators include no such measure.</p>
<p><em><strong>Vivienne Milligan</strong>, Visiting Senior Fellow - City Futures Research Centre, Housing Policy and Practice, UNSW</em></p>
<p><em>This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/the-new-national-housing-agreement-wont-achieve-its-goals-without-enough-funding-99936" target="_blank">original article</a>.</em></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

The new national housing agreement won't achieve its goals without enough funding

<html><body>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p>Buyers of new residential property after 1 July 2018 need to be aware they will be responsible for making sure the GST on their purchase is paid to the ATO as part of the purchase settlement process. The laws are aimed at reducing tax evasion in the property development sector, that require buyers to pay the GST at settlement.</p>
<p>The GST will not be an additional cost to buyers as it’s already part of any contracted purchase.</p>
<p>The chief executive of the Property Council of Australia, Ken Morrison, said this was one of the biggest changes to the way GST was collected on property since its introduction almost two decades ago.</p>
<p>“Under this change, buyers of new residential properties or subdivision of potential residential land will be responsible for remitting the GST amount to the ATO on or before settlement,” Mr Morrison said.</p>
<p>“Previously, this was done by the developer. The overwhelming majority did the right thing and passed the GST they collected through to the ATO, but this measure has been introduced to deal with the minority who didn’t through so-called 'phoenixing'.”</p>
<p>The new process will mean additional steps in the settlement process for residential property buyers, including submitting forms to the ATO and separating the GST from the purchase price of the property.</p>
<p>This could affect up to 70,000 property transactions a year.</p>
<p>“People buying property after 1 July should talk to their solicitor or settlement agent to ensure they have the right arrangements in place to meet this new requirement and ensure a smooth settlement process,” Mr Morrison said.</p>
<p>There are transitional arrangements in place for contracts entered into before 1 July 2018 and which settle before 1 July 2020.</p>
<p>Mr Morrison said Property Council members had been investing in systems and staff training to support the introduction of the new process and to mimimise disruption or inconvenience to their customers.</p>
<p>“We’ll closely monitor the implementation of the change and continue to consult with Government on issues that may arise during the transition.”</p>
<p>The change to GST payment is the biggest of a number of federal and state property- related changes that come into effect on 1 July.</p>
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Other measures include:</span></p>
<p><span>Federal</span></p>
<p><span>People aged 65 and over will be able to contribute $300,000 from the sale of their family home into superannuation</span></p>
<p><span>Queensland</span></p>
</div>
</div>
</div>
<div class="section">
<div class="layoutArea">
<div class="column">
<ul>
<li>
<p><span>Additional Foreign Acquirer Duty (residential) to increase from 3% to 7%.</span></p>
</li>
<li>
<p><span>New land tax category for holdings over $10m – 2.25% for individuals and 2.5%</span></p>
<p><span>for trusts, companies or absentee landholders.</span></p>
</li>
<li>
<p><span>Waste disposal levy $70 per tonne.</span></p>
</li>
</ul>
</div>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p><span>New South Wales</span></p>
<ul>
<li>
<p><span>Local Infrastructure Levy caps will be increased in areas not funded by the Local Infrastructure Growth Scheme:</span></p>
<p><span>o </span><span>$40,000 for greenfield areas</span><span>o </span><span>$30,000 for infill areas</span></p>
</li>
<li>
<p><span>From 1 July,</span></p>
<p><span>South Australia</span></p>
<p><span>ACT</span></p>
</li>
</ul>
</div>
</div>
<img src="blob:https://www.urban.com.au/1bb22a79-4780-4658-89ea-656f7047f32f" alt="page2image9448" width="311.520000" height="14.880000"><div class="layoutArea">
<div class="column">
<p><span>eConveyancing will replace many of the paper and manual</span></p>
</div>
</div>
<img src="blob:https://www.urban.com.au/80e4a9b4-e8bc-422a-be59-22a0431fc3d7" alt="page2image10376" width="393.600000" height="13.920000"><div class="layoutArea">
<div class="column">
<p><span>processes traditionally involved in property transactions with secure online</span></p>
</div>
</div>
<img src="blob:https://www.urban.com.au/3edb595d-a49b-4437-9a0d-343251c98e22" alt="page2image11304" width="413.040000" height="13.920000"><div class="layoutArea">
<div class="column">
<p><span>processes. All standalone transfers and caveats must be lodged electronically</span></p>
</div>
</div>
<img src="blob:https://www.urban.com.au/5891ddef-2987-4406-9a39-cf64fde767d7" alt="page2image12272" width="76.080000" height="13.920000"><div class="layoutArea">
<div class="column">
<p><span>from this date.</span></p>
</div>
</div>
<div class="section">
<div class="layoutArea">
<div class="column">
<ul>
<li>
<p><span>Final phase of the full abolition of commercial stamp duty.</span></p>
</li>
<li>
<p><span>Off-the-plan stamp duty concession measure ends on 30 June 2018.</span></p>
</li>
</ul>
</div>
</div>
</div>
<div class="section">
<div class="layoutArea">
<div class="column">
<ul>
<li>
<p><span>Stamp duty abolished for first home buyers who earn less than $160,000 for new or existing homes</span></p>
</li>
<li>
<p><span>Abolition of first home buyers grant</span></p>
</li>
</ul>
</div>
</div>
</div>
</div>
</body></html>

July 1 sees different GST rules for new residential property buyers

<html><body>
<p>Australia has an oversupply of up to 164,000 dwellings, including parts of the major cities, countering industry and government suggestions that Australia is suffering a housing shortage, a new study by The Australian National University (ANU) has found.</p>
<p>The <em>Regional Housing Supply and Demand in Australia Working Paper</em>, by Associate Professor Ben Phillips and researcher Cukkoo Joseph of the ANU Centre for Social Research and Methods analysed 15 years' worth of Census data and building approvals.</p>
<p>It also found Australia had an oversupply in some markets such as parts of inner city Sydney, Melbourne and Brisbane.</p>
<p>"The surplus is not particularly substantial, but certainly suggest that housing supply in and of itself is probably not the primary driver of house-price growth in Australia. There are other factors that are going on," Phillips said.</p>
<p>"We've looked at factors like changes in household types and dwelling types and unoccupied dwellings which we don't think have been taken into account in other studies in any substantial way in the past, and certainly not at the regional level.</p>
<p>"The standard line of governments and industry seems to be that housing supply is a big problem in Australia. No doubt there are some areas where it is. But overall we don't see the housing shortage that's often talked about - in fact we see that there is a surplus."</p>
<p>In addition to analysing data from the 2001 and 2016 Census, the ANU researchers looked at Australian Bureau of Statistics building approvals and survey of income and housing.</p>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="3" nowrap>
<p>TOP 5 SHORTAGE AND SURPLUS REGIONS BY MAJOR STATE</p>
</td>
<td nowrap> </td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Shortage Regions NSW</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>NSW</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Shortage Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Wyong</p>
</td>
<td nowrap>
<p align="right">2,574</p>
</td>
<td nowrap>
<p align="right">3.8%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Fairfield</p>
</td>
<td nowrap>
<p align="right">1,808</p>
</td>
<td nowrap>
<p align="right">3.1%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Shoalhaven</p>
</td>
<td nowrap>
<p align="right">1,700</p>
</td>
<td nowrap>
<p align="right">3.1%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4</p>
</td>
<td nowrap>
<p>Hurstville</p>
</td>
<td nowrap>
<p align="right">1,612</p>
</td>
<td nowrap>
<p align="right">3.4%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Strathfield - Burwood - As</p>
</td>
<td nowrap>
<p align="right">1,596</p>
</td>
<td nowrap>
<p align="right">2.7%</p>
</td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Surplus Regions NSW</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>NSW</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Surplus Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Sydney Inner City</p>
</td>
<td nowrap>
<p align="right">5,878</p>
</td>
<td nowrap>
<p align="right">5.2%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Richmond Valley - Coastal</p>
</td>
<td nowrap>
<p align="right">2,056</p>
</td>
<td nowrap>
<p align="right">5.5%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Newcastle</p>
</td>
<td nowrap>
<p align="right">1,988</p>
</td>
<td nowrap>
<p align="right">2.7%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4*</p>
</td>
<td nowrap>
<p>Snowy Mountains</p>
</td>
<td nowrap>
<p align="right">1,869</p>
</td>
<td nowrap>
<p align="right">16.6%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Tweed Valley</p>
</td>
<td nowrap>
<p align="right">1,573</p>
</td>
<td nowrap>
<p align="right">3.7%</p>
</td>
</tr>
<tr>
<td colspan="3" nowrap>
<p>* Subject to non-private dwelling fluctuations eg hotels</p>
</td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Shortage Regions VIC</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>VIC</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Shortage Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Mornington Peninsula</p>
</td>
<td nowrap>
<p align="right">1,193</p>
</td>
<td nowrap>
<p align="right">1.3%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Casey - South</p>
</td>
<td nowrap>
<p align="right">1,180</p>
</td>
<td nowrap>
<p align="right">2.1%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Surf Coast - Bellarine Pen</p>
</td>
<td nowrap>
<p align="right">679</p>
</td>
<td nowrap>
<p align="right">1.6%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4</p>
</td>
<td nowrap>
<p>Casey - North</p>
</td>
<td nowrap>
<p align="right">664</p>
</td>
<td nowrap>
<p align="right">1.4%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Cardinia</p>
</td>
<td nowrap>
<p align="right">380</p>
</td>
<td nowrap>
<p align="right">1.1%</p>
</td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Surplus Regions VIC</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>VIC</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Surplus Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Melbourne City</p>
</td>
<td nowrap>
<p align="right">3,994</p>
</td>
<td nowrap>
<p align="right">5.3%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Whittlesea - Wallan</p>
</td>
<td nowrap>
<p align="right">2,637</p>
</td>
<td nowrap>
<p align="right">3.4%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Banyule</p>
</td>
<td nowrap>
<p align="right">2,297</p>
</td>
<td nowrap>
<p align="right">4.6%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4</p>
</td>
<td nowrap>
<p>Port Phillip</p>
</td>
<td nowrap>
<p align="right">2,127</p>
</td>
<td nowrap>
<p align="right">3.7%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Monash</p>
</td>
<td nowrap>
<p align="right">2,092</p>
</td>
<td nowrap>
<p align="right">3.1%</p>
</td>
</tr>
<tr>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Shortage Regions QLD</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>QLD</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Shortage Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Sunnybank</p>
</td>
<td nowrap>
<p align="right">702</p>
</td>
<td nowrap>
<p align="right">4.1%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Buderim</p>
</td>
<td nowrap>
<p align="right">538</p>
</td>
<td nowrap>
<p align="right">2.5%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Ipswich Hinterland</p>
</td>
<td nowrap>
<p align="right">515</p>
</td>
<td nowrap>
<p align="right">2.0%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4</p>
</td>
<td nowrap>
<p>Bribie - Beachmere</p>
</td>
<td nowrap>
<p align="right">290</p>
</td>
<td nowrap>
<p align="right">1.7%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Sunshine Coast Hinterland</p>
</td>
<td nowrap>
<p align="right">262</p>
</td>
<td nowrap>
<p align="right">1.3%</p>
</td>
</tr>
<tr>
<td colspan="2" nowrap>
<p>Housing Surplus Regions QLD</p>
</td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>
<p>QLD</p>
</td>
<td nowrap>
<p>Region</p>
</td>
<td nowrap>
<p>Surplus Dwellings</p>
</td>
<td nowrap>
<p>% Stock</p>
</td>
</tr>
<tr>
<td nowrap>
<p>1</p>
</td>
<td nowrap>
<p>Brisbane Inner</p>
</td>
<td nowrap>
<p align="right">4,537</p>
</td>
<td nowrap>
<p align="right">12.7%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>2</p>
</td>
<td nowrap>
<p>Townsville</p>
</td>
<td nowrap>
<p align="right">4,259</p>
</td>
<td nowrap>
<p align="right">5.3%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>3</p>
</td>
<td nowrap>
<p>Cairns - South</p>
</td>
<td nowrap>
<p align="right">3,516</p>
</td>
<td nowrap>
<p align="right">8.1%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>4</p>
</td>
<td nowrap>
<p>Gladstone - Biloela</p>
</td>
<td nowrap>
<p align="right">3,384</p>
</td>
<td nowrap>
<p align="right">9.4%</p>
</td>
</tr>
<tr>
<td nowrap>
<p>5</p>
</td>
<td nowrap>
<p>Surfers Paradise</p>
</td>
<td nowrap>
<p align="right">2,878</p>
</td>
<td nowrap>
<p align="right">12.3%</p>
</td>
</tr>
</tbody></table>
<p>"We appear to have built enough dwellings, and there's an oversupply in some markets such as some parts of inner city Sydney, Melbourne and Brisbane, which could have interesting implications for the economy,"  Phillips said.</p>
<p>"If this research is right, it suggests we've built enough dwellings, and there's not likely to be any great gain in building more houses in addition to what's required."</p>
<p>In the regions, many homes were built in mining centres over the past 15 years before the mining boom ended.</p>
<p>"Particularly in outback Western Australia, regional WA and north Queensland, many of these areas have a housing surplus," Phillips said.</p>
<p>"We also find Canberra has a housing surplus, especially among higher-density dwellings in the town centres.</p>
<p>"We've found that we've built more than what population growth would require.</p>
<p>"It doesn't mean that it won't get soaked up in coming years, but it does suggest there won't be as much need for new home building in the near future, which could have knock-on to the broader economy."</p>
<p>The <em>Regional Housing Supply and Demand in Australia Working Paper</em> is <a href="http://csrm.cass.anu.edu.au/research/publications/regional-housing-supply-and-demand-australia" target="_blank">available online</a><a href="https://www.propertyobserver.com.au/Australia%20has%20an%20oversupply%20of%20up%20to%20164,000%20dwellings,%20including%20parts%20of%20the%20major%20cities,%20countering%20industry%20and%20government%20suggestions%20that%20Australia%20is%20suffering%20a%20housing%20shortage,%20a%20new%20study%20by%20The%20Australian%20National%20University%20(ANU)%20has%20found.%20%20The%20Regional%20Housing%20Supply%20and%20Demand%20in%20Australia%20Working%20Paper,%20by%20Associate%20Professor%20Ben%20Phillips%20and%20researcher%20Cukkoo%20Joseph%20of%20the%20ANU%20Centre%20for%20Social%20Research%20and%20Methods%20analysed%2015%20years'%20worth%20of%20Census%20data%20and%20building%20approvals.%20%20It%20found%20Australia%20had%20an%20oversupply%20in%20some%20markets%20such%20as%20parts%20of%20inner%20city%20Sydney,%20Melbourne%20and%20Brisbane.%20%20%22The%20surplus%20is%20not%20particularly%20substantial,%20but%20certainly%20suggest%20that%20housing%20supply%20in%20and%20of%20itself%20is%20probably%20not%20the%20primary%20driver%20of%20house-price%20growth%20in%20Australia.%20There%20are%20other%20factors%20that%20are%20going%20on,%22%20Dr%20Phillips%20said.%20%20%22We've%20looked%20at%20factors%20like%20changes%20in%20household%20types%20and%20dwelling%20types%20and%20unoccupied%20dwellings%20which%20we%20don't%20think%20have%20been%20taken%20into%20account%20in%20other%20studies%20in%20any%20substantial%20way%20in%20the%20past,%20and%20certainly%20not%20at%20the%20regional%20level.%20%20%22The%20standard%20line%20of%20governments%20and%20industry%20seems%20to%20be%20that%20housing%20supply%20is%20a%20big%20problem%20in%20Australia.%20No%20doubt%20there%20are%20some%20areas%20where%20it%20is.%20But%20overall%20we%20don't%20see%20the%20housing%20shortage%20that's%20often%20talked%20about%20-%20in%20fact%20we%20see%20that%20there%20is%20a%20surplus.%22%20%20In%20addition%20to%20analysing%20data%20from%20the%202001%20and%202016%20Census,%20the%20ANU%20researchers%20looked%20at%20Australian%20Bureau%20of%20Statistics%20building%20approvals%20and%20survey%20of%20income%20and%20housing.%20%20%22We%20appear%20to%20have%20built%20enough%20dwellings,%20and%20there's%20an%20oversupply%20in%20some%20markets%20such%20as%20some%20parts%20of%20inner%20city%20Sydney,%20Melbourne%20and%20Brisbane,%20which%20could%20have%20interesting%20implications%20for%20the%20economy,%22%20Dr%20Phillips%20said.%20%20%22If%20this%20research%20is%20right,%20it%20suggests%20we've%20built%20enough%20dwellings,%20and%20there's%20not%20likely%20to%20be%20any%20great%20gain%20in%20building%20more%20houses%20in%20addition%20to%20what's%20required.%22%20%20In%20the%20regions,%20many%20homes%20were%20built%20in%20mining%20centres%20over%20the%20past%2015%20years%20before%20the%20mining%20boom%20ended.%20%20%22Particularly%20in%20outback%20Western%20Australia,%20regional%20WA%20and%20north%20Queensland,%20many%20of%20these%20areas%20have%20a%20housing%20surplus,%22%20Dr%20Phillips%20said.%20%20%22We%20also%20find%20Canberra%20has%20a%20housing%20surplus,%20especially%20among%20higher-density%20dwellings%20in%20the%20town%20centres.%20%20%22We've%20found%20that%20we've%20built%20more%20than%20what%20population%20growth%20would%20require.%20%20%22It%20doesn't%20mean%20that%20it%20won't%20get%20soaked%20up%20in%20coming%20years,%20but%20it%20does%20suggest%20there%20won't%20be%20as%20much%20need%20for%20new%20home%20building%20in%20the%20near%20future,%20which%20could%20have%20knock-on%20to%20the%20broader%20economy.%22%20%20The%20Regional%20Housing%20Supply%20and%20Demand%20in%20Australia%20Working%20Paper%20is%20available%20at%20http:/csrm.cass.anu.edu.au/research/publications/regional-housing-supply-and-demand-australia." target="_blank">.</a></p>
</body></html>

Fresh housing supply won't necessarily lead to affordability: ANU study

<html><body>
<p><span style="line-height: 1.3em;">New dwelling approvals for February are up from January according to the ABS, with new home building approvals up by 3.1 percent.</span></p>
<p><span style="line-height: 1.3em;">Senior Housing Industry Association economist Shane Garrett said the monthly lift in approvals activity during February is welcome but it seems increasingly likely that approvals peaked late last year and that the volume of new home building activity is set to ease as 2016 progresses.</span></p>
<p><span style="line-height: 1.3em;">“Our latest forecasts indicate that the about 200,000 new dwelling starts will take place during 2016, a reduction of 9.2 percent from last year," he said.</span></p>
<p><span style="line-height: 1.3em;">"This would still represent a very high level of output by historic standards. However, the risk remains that new home building output will fall below the levels required to meet long term demand. The onus remains on policy makers to tackle this problem, and confront issues like planning delays, land supply shortfalls and heavily inefficient taxes like conveyance stamp duty. </span></p>
<p>"During February 2016, new home building approvals rose by 3.1 percent. <span style="line-height: 1.3em;">This comprised a 1.0 percent decline in detached house approvals but the more volatile multi-unit segment achieved growth of some 7.7 percent in approvals during the month. Over the year to February, new dwelling approvals totalled 232,194. The flow of data over recent months indicates that approvals may have hit their high point in the year to October 2015, with a record 239,250 approvals registered over that 12 month period."</span></p>
<p> </p>
<p> </p>
<p>During February 2016, total seasonally adjusted new home building approvals saw the largest increase in Tasmania (+24.5 percent) with growth also occurring in New South Wales (+14.3 percent) and Queensland (+9.5 percent). Approvals declined in Victoria (-12.8 percent), South Australia (-10.9 percent) and Western Australia (-7.6 percent). In trend terms, approvals saw a 9.2 percent <span style="line-height: 1.3em;">decline in the Northern Territory but rose by 5.0 percent in the Australian Capital Territory.</span></p>
<p><a href="/images/2016/04/4/Screen%20Shot%202016-04-04%20at%201.32.37%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/4/Screen%20Shot%202016-04-04%20at%201.32.37%20PM.png" alt=""></p>
</body></html>

po-LsXgBTHBmX

February boost for new dwelling approvals: HIA

<html><body>
<p>In proposing reforms to negative gearing structures, any government should take a long-term view and classify ‘new’ stock as any property up to 10 years old and not pull the rug from under the feet of investors abruptly because of economic implications, according to property research and investment firm Aviate Group. </p>
<p>“Those looking to abolish negative gearing, as well as those whom support this, need to perhaps be reminded as to what it is that investors bring to the table. Not just in terms of providing rental stock to areas that may really need it, but also for the economy at large,” said Aviate managing director Neil Smoli.</p>
<p>Investors’ focus on wealth creation through property stimulates the economy, creates jobs and fosters a more self-sufficient population which has the knock-on effect of alleviating the burden of social housing and dependence on aged care facilities by an ageing population, added Smoli.</p>
<p>“Investors make a strong and undeniable contribution to housing options by way of rental stock. This provides direct housing options for those that do not have the means or have not yet sought the right advice that would allow them to enter the property market.”</p>
<p>There also hasn’t been near enough debate, or thought, says Smoli, of the definition of ‘new’ property stock when it comes to the proposed reforms, which are being weighted not just by the Opposition, but also by the Nationals, albeit under a varied model.</p>
<p> “Applying negative gearing reforms that apply to all newly built properties in terms of their physical construction and occupation could have a knock-on effect whereby investors may ‘short-sell’ or ‘flip’ these properties in order to maximise their financial benefits,” he said.</p>
<p>“If it is to be successful, any well considered policy surrounding negative gearing should also take into account how long a property is, or has been, held by an investor.</p>
<p>“There has to be some kind of incentive for investors to take the universally respected view that property investment is most optimal when a long term view is held, rather than a short term hold to turn a quick profit by selling when a market is at its cyclical peak.”</p>
<p>In addition to rewarding investors that hold onto their new properties for longer, Smoli says, there should also be a period of at least a year before any successful changes to negative gearing policy are implemented.</p>
<p>A property should be viewed as ‘new’ when it is up to 10 years old to minimise any potential fallout or exodus from the marketplace. </p>
<p>“It typically takes five to six years for an investment property to become neutral, that is, for the rent received to balance the interest payable. This is influenced by the interest rate of the day, the net rental income received after costs such as management fees, letting fees, body corporate fees and outgoings are taken into account, the investor’s marginal tax rate as well as depreciation allowances,” he said.</p>
<p>“A timeline of this duration for the investor to be able to use negative gearing seems logical and fair.”</p>
<p>Additionally, whatever changes are implemented in the context of property and associated negative gearing, the same should apply to shares and the equities market to ensure all asset classes are on an even playing field. </p>
<p><strong>Stamp duty: another opportunity for reform</strong></p>
<p>In addition to possible negative gearing policy reform, Smoli also believes there are other opportunities for reform that could create a fairer balance for the property industry’s many stakeholders, particularly as the rampant transactional activity of recent years has softened in recent months.</p>
<p>At the top of the list is stamp duty, according to him.</p>
<p>“Most industry professionals seem to be in agreement that stamp duty should be phased out without delay. However in the absence of its complete abolition, the market should at least be able to rely on some national consistency when it comes to the application of this tax,” Smoli said.</p>
<p>“Let’s not forget we were promised an end to stamp duty when the GST was introduced. It’s clear that state governments are addicted to the revenue, but the economic benefits of abolishing stamp duty in terms of transactional activity, not to mention the fact it would relieve a significant burden for first home buyers, warrants genuine consideration at the Federal level.</p>
<p>“Failing this, perhaps it is time to look at more effective stamp duty models and, more importantly, introduce some national consistency as to how the tax is applied,” Smoli said.</p>
<p>He pointed to the implementation of a sliding scale, whereby the stamp duty payable depends on the phase in the construction cycle that the dwelling is at when the purchase is made, could be considered as the basis for a national model. </p>
<p>“A fairer system, which has been used in some states including Victoria and South Australia, could be based on the principle that the earlier in the construction phase a dwelling is, the less stamp duty should be payable by the purchaser on that property,” Smoli said..</p>
<p>“In this way, those who purchase a property off-the-plan or early in the construction phase are rewarded for that early purchase, creating heightened demand for new supply and supporting the broader market.</p>
<p>“It makes sense to lessen the burden on buyers of off-the-plan properties, as these buyers are directly contributing to demand for new housing construction.</p>
<p>“A nationally consistent approach to stamp duty would also make it easier for investors to purchase properties outside their own state, fuelling demand on a broader scale. </p>
<p>“Like the conversation happening around negative gearing at the moment, so should the industry seek to elevate the issue of stamp duty. Until its abolition comes to fruition, and the promise of many years ago is finally upheld, the more alternatives we consider as an industry the better,” he said.</p>
</body></html>

prateek24-ezbwHMbNAk

Negative gearing changes need long-term approach: Aviate Group MD

<html><body>
<p>Research from Queensland University of Technology has discovered a little-known infrastructure tax that, when the cost is passed on by developers, can potentially add more than $130,00 to the price of a new home.</p>
<p>QUT property economics lecturer Dr Lyndall Bryant said house prices in Brisbane increased an average of $3.95 for every $1 of infrastructure charges levied to property developers.</p>
<p>He said in fast-growing areas governments don't have the funds to build all the infrastructure new housing estates need and existing communities refuse to pay for it by way of higher rates and taxes. The <span style="line-height: 1.3em;">infrastructure charges are levied at the time of developmental approval. </span></p>
<p><span style="line-height: 1.3em;">"Property developers claim it is uneconomical for them to pay these charges and pass them on to homebuyers, making new houses unaffordable for many," he said.</span></p>
<p><span style="line-height: 1.3em;">"In Queensland the maximum infrastructure charge for a new three or more bedroom house was set at $28,000 in 2011. </span><span style="line-height: 1.3em;">My research found that the 'over-passing' ratio for new house prices is 469%, and 356% for existing houses.</span></p>
<p>"Applying the 2011 maximum infrastructure charge, this suggests the price of a new house increases by as much as $131,320 and the price of an existing house by $99,680. <span style="line-height: 1.3em;">This means that this one government charge could add nearly $1,000 a month to the average 30 year mortgage."</span></p>
<p><span style="line-height: 1.3em;">The study covered infrastructure charges on 27,752 house and 13,739 lot prices in Brisbane from 2005 - 2011.</span></p>
<p>"This study suggests the current policy of infrastructure charges is an inefficient tax that adversely affects housing affordability, with homeowners ultimately paying many times the actual cost of the urban infrastructure, with the banks being the winners, benefitting from the increases to mortgage payments," he said.</p>
<p>"The rate of over-passing of the charges, which were effectively a tax, was far higher in Australia than had been observed in the United States."</p>
</body></html>

mick.cee-iDmgDDAmu8

Little-known infrastructure tax sending Brisbane property prices soaring

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The Winter 2015 </span><span style="line-height: 1.3em;">National Outlook </span><span style="line-height: 1.3em;">has been released today by the Housing Industry Association. The </span><span style="line-height: 1.3em;">report is the most comprehensive quarterly review of Australia’s residential building industry, and </span><span style="line-height: 1.3em;">includes forecasts for new home building and renovations activity.</span></p>
<p><span>During 2014/15, we estimate that a total of 214,450 new dwelling commencements occurred across Australia. This is easily the highest yearly total on record</span><span>. </span></p>
<p><span>HIA's recent </span><span>National Outlook </span><span>identifies the role of the low interest rate environment in supporting higher levels of new home building, as well as strong, migration-driven population growth over the past decade</span><span>.</span></p>
<p><span>However, other elements are serving to frustrate the delivery of new housing supply. We are faced with an excessive taxation burden on new housing, land release which is simply too slow and a raft of planning restrictions. All of these make it difficult for our industry to meet the housing needs of Australians.</span></p>
<p><span>The effect of these supply bottlenecks will become apparent over the next 12 months, with the volume of new home building projected to decline by 7% during 2015/16</span><span>. </span></p>
<p><span>During the upturn, multi</span><span>-units accounted for an increasing proportion of new home building. Consequently, the multi-unit segment will see larger rates of decline over the coming years compared </span><span>with the detached house segment. </span></p>
<p><span>HIA projects that new home building will bottom out at around 175,000 per year towards the end o</span><span>f the decade. Critically, this falls short of </span><span>Australia’s long term requirements and </span><span>emphasises the importance </span><span>of reform around taxation and housing supply policy. </span></p>
<p><em><span style="line-height: 1.3em;">Shane Garrett is senior economist for HIA and can be contacted <a href="https://hia.com.au/en/BusinessInfo/economicInfo/EcoGroup.aspx" target="_blank">here</a>.</span></em></p>
</div>
</div>
</div></body></html>

New Housing

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

New Housing

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News