After inspecting the a mixture of new apartment developments in Sydney's thriving north west corridor, Rouse Hill downsizers Lynne and Dale Kennedy were set to buy a two-bedroom apartment in <a href="https://www.apartments.com.au/developers/ellipse-property-group">Ellipse Property</a>’s Carrington Place development, until they saw the penthouse floorplans.

The retired police officer and her builder husband, aged in their mid-60’s, quickly upsized to a three-bedroom penthouse within the Atrium building, the first stage of the Castle Hill masterplan.

Their luxury apartment is one of eight in Atrium’s exclusive Penthouse Collection and features striking interior design. The penthouses offer flexible open-plan layouts with abundant space and tranquillity. With two living spaces, walk-in wardrobes and butlers’ pantries, Atrium’s penthouses feature large balconies with sweeping views to Cattai Creek and the wider Hills District.&nbsp;

“As soon as we saw the floorplan for this penthouse, we knew it was the one for us," Lynne said.

"It is oversized with abundant storage, so we know we are not going to feel cramped, even though we are downsizing from a large, five-bedroom family home. The open-plan design spills out to a large deck, perfect for entertaining and when the grandchildren visit. The finishes are top-quality and I love the butler’s pantry and integrated appliances in the kitchen – with the steam oven, pyrolytic oven and coffee machine all built in.”

High-quality material finishes and premium appliances are used throughout Atrium’s penthouse collection. Miele appliances in the newly-released Pearl Beige finish, Vintec wine fridges, Parisi tapware and fireplaces are set within luxe finishes including pure wool carpets and statement Caesarstone benchtops. Built-in barbecues, and in some cases bars and skylights, are further signature features of the penthouse design.

Dale Kennedy owns Inspect It FIRST, a building inspection company he has operated for over 25 years. With stringent views on design and build integrity, he was quick to recognise the quality behind the architectural design and iCIRT-rated builder, <a href="https://www.apartments.com.au/builders/decode">Decode Group</a>.

“This penthouse sets a new benchmark in terms of quality and attention to detail. The floorplan is well-considered - special features like the skylight are a stand-out and not typical in new builds. The iCIRT-rated builder adds a further level of comfort buying off-the-plan, and we are confident that the finished apartment will be high-quality with no nasty surprises,” said Dale.

The Kennedy’s are excited at the freedom that apartment living will unlock for them.

[smartcode_project:default project_id=151821 project_image_fid=360287]

“We won’t have to maintain a house, swimming pool and gardens anymore, and are looking forward to having more leisure time," Lynne added.

"The low maintenance apartment lifestyle and security of the building means we can travel more and take extended trips. We can simply ‘lock and leave’, something we can’t do with a big house. We also love the location so close to Showground Metro Station and retail precinct, but without being in the thick of it. Everything is literally on our doorstep, just a few minutes’ walk. It will be so convenient being able to access the city so easily and not having to drive to the shops.”

After 11 years in their home on Morrisey Way, Rouse Hill, the couple will sell it before moving into their new penthouse. The expansive five-bedroom family home features a cinema, swimming pool and six-car garage.

There are just six penthouses left in Atrium’s Penthouse Collection in a mix of three- and four-bedroom configurations, ranging from 160 to 334 sqm in size and priced from $3.025 million to $5.4 million.&nbsp;

[smartcode_project:default project_id=151821 project_image_fid=360286]

According to <a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a>, exclusive sales agents at Carrington Place, Atrium’s Penthouse Collection is meeting a groundswell of demand from local downsizers – aligned with broader trends in Metro-connected suburbs across Sydney.

“The Penthouse Collection sets a new standard for apartments in Castle Hill,"&nbsp;said Blake Schulze, National Director – Residential at Colliers.

"There is simply nothing else like these penthouses. Downsizers are drawn to their house-like scale and premium finishes. With sought-after views plus access to outstanding new local amenities, the Penthouse Collection unlocks a new lifestyle for buyers.

Schulze says buyers are drawn to Carrington Place’s lifestyle with close proximity to the Showground precinct’s vibrant mix of retail and dining options.

"Being able to walk to the Metro and this rapidly emerging lifestyle hub is of huge appeal to this demographic.”

According to Puja Khanna, Associate Director at Ellipse Property, the carefully curated interiors are proving to be a point of difference.&nbsp;

“Our floorplans have been thoughtfully considered, knowing that many buyers will be downsizing from large homes," Khanna says.

"Smart and abundant storage was an absolute must. And for many of our buyers, entertaining is a priority – with adult children, grandchildren and family visiting and sometimes staying over. We made sure bedrooms are spacious and living spaces are oversized, and kitchens incorporate butler’s pantries alongside the latest appliances."

Atrium is under construction by award-winning iCIRT-rated builder Decode Group, with completion scheduled for Q3 2026.&nbsp;

[smartcode_project:default project_id=151821 project_image_fid=360285]

<a href="https://www.apartments.com.au/new-apartments/lily-lane-at-carrington-place-castle-hill-32-carrington-road-castle-hill-nsw-2154">Lily Lane</a>, the second stage&nbsp;of Carrington Place, is set to commence construction later this month on the back of Atrium’s significant sales success, with 85 per cent of all apartments now sold.

Carrington Place will be constructed across multiple stages and deliver more than 800 new homes, with the entire precinct set for completion in 2032. It will feature abundant open space with over 20,000 sqm of outdoor recreational area, including a one-kilometre boardwalk to the nearby Fred Caterson Reserve.&nbsp;

The project is also integrated with the surrounding bushland, with a site boundary that stretches to the edge of Cattai Creek, immersing residents in the beauty of Sydney’s ‘Garden Shire’.

The Hills Showground Metro Station is just a two-minute walk away, offering fast connectivity to Sydney’s CBD, North Sydney, Chatswood, Macquarie Park and Norwest Business Park.

[smartcode_project_cta:default project_id=151821]

Joel Robinson

Local downsizers set sights on Carrington Place, Castle Hill penthouses

Lifestyle, residential and wellness developer <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a>, and joint venture development partner lNT.RE (formerly Icon Developments) have announced the popular SOAK Bathhouse brand will anchor the ground floor of their $160m luxury <a href="https://www.apartments.com.au/new-apartments/emerald-place-by-lowe-living-200-clarendon-street-south-melbourne-vic-3205">Emerald Place</a> development at 182-200 Clarendon St, South Melbourne, which is set to open in August 2026.&nbsp;

This will be the second Melbourne outpost for the SOAK Bathhouse brand, after its inaugural Victorian location in South Yarra launched in 2025, which has quickly become a staple in Melbourne’s bathing and wellness scene.&nbsp;

SOAK Bathhouse has signed a 10-year partnership to take out the 459sqm prime corner ground-floor tenancy, which will join the other two retail tenancies, high-end commercial space and 38 ultra-luxury residential apartments and penthouses above.&nbsp;

[smartcode_project:default project_id=135816 project_image_fid=365847]

SOAK Bathhouse is renowned for its luxurious and socially-focused mineral pools, cold plunge, sauna, steam room, infrared LED therapies, and massage services. Its arrival at Emerald Place, South Melbourne marks a significant milestone for both brands and for South Melbourne.&nbsp;

While the specific inclusions of the venue are still under wraps, SOAK Bathhouse has confirmed the space will be equipped with a signature SOAK Bathhouse mineral pool, cold plunge, saunas and steam room, alongside a lush dedication to verdant greenery and ferns throughout the tranquil bathing spaces.&nbsp;

SOAK Bathhouse will serve both Emerald Place residents and the broader South Melbourne business community, creating a wellness destination that bridges the gap between work and home. For residents, it's a daily ritual on their doorstep. For the surrounding office workers, it's a place to decompress, recharge and transition between professional and personal life.&nbsp;

[smartcode_project:default project_id=135816 project_image_fid=365850]

The partnership has underpinned Lowe Living’s commitment to delivering wellness-led amenities that not only embed physical spaces within the projects but integrate established, renowned wellness brands to anchor and operate these spaces.&nbsp;

Through the partnership with SOAK Bathhouse, penthouse buyers will be granted complimentary memberships, while all other residents of the Emerald Place development will benefit from exclusive discounted access. Together, these privileges deliver a compelling lifestyle enhancement and a lasting investment in wellbeing.&nbsp;

Lowe Living has been steadily carving out a niche in the luxury property market as a wellness-led developer, having a partnership with the Sorrento-based Aurora Spa &amp; Bathhouse to offer a private, residents-only wellness spaces at its upcoming Camberwell and Brighton projects.&nbsp;

These partnerships with Aurora Spa &amp; Bathhouse and now SOAK Bathhouse, reinforce a broader shift across Lowe Living’s portfolio towards a meaningful commitment to health-focused amenity and wellness offerings.&nbsp;

[smartcode_project:default project_id=135816 project_image_fid=231195]

Since its inaugural offering in Mermaid Beach, which has since expanded nationally across Queensland, Sydney and Melbourne, SOAK Bathhouse has grown into a leading contemporary bathhouse brand, attracting a dedicated following thanks to its unique social-focused approach to bathing.&nbsp;

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said the Lowe Living team "view our partnerships as an extension of our design philosophy."

"We align with brands that genuinely elevate the everyday experience of our residents and deliver tangible value for our purchasers that enrich their lives.&nbsp;SOAK Bathhouse was a natural fit for Lowe Living and specifically Emerald Place. Their approach to contemporary bathing and social wellness strongly aligns with our vision of creating homes that prioritise long-term health, connection and lifestyle.”&nbsp;

Tim Lowe, Co-Founder and Managing Director of Lowe Living, said securing Melbourne’s second SOAK Bathhouse for Emerald Place is a significant milestone for Lowe Living, INT.RE and South Melbourne.&nbsp;

“This partnership reflects the continued evolution of luxury residential development," Lowe says.

"Today’s buyers are looking beyond finishes and floorplans and investing in holistic living environments, not just inside their apartments but in the communal and wider local amenity offerings, too."

[smartcode_project_cta:default project_id=135816]

Lowe Living secures SOAK Bathhouse on 10-year lease at Emerald Place, South Melbourne development

While the Gold Coast continues to densify around key transport and lifestyle nodes, <a href="https://www.apartments.com.au/developments/mermaid-beach-qld-4218">Mermaid Beach</a> has retained its village-like charm even as demand intensifies for walkable beachside living. It’s a suburb that holds firm to its community feel, while sitting within one of Australia’s fastest-growing urban corridors.

Developer DANKAV put the neighbourhood and its residents first when drawing up the plans for <a href="https://www.apartments.com.au/new-apartments/the-alfred-residences-mermaid-beach-2375-gold-coast-highway-mermaid-beach-qld-4218">The Alfred Residences</a>, which will replace the former Mermaid Beach Shopping Village near Nobby Beach. The project marks a rare example of precinct renewal at a truly local scale.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/the-alfred-residences-mermaid-beach-2375-gold-coast-highway-mermaid-beach-qld-4218">The Alfred Residences</a>&nbsp;comprises a wide variety of one- and two-bedroom apartments, set above a new ground plane of curated hospitality and boutique retailers, all framed by generous laneways, shaded plazas, and garden paths designed to enhance pedestrian flow and public interaction.&nbsp;

[smartcode_project:default project_id=149942 project_image_fid=355148]

The site’s configuration reflects both a respect for the area's established rhythm and a recognition of its future trajectory, particularly with the planned Mermaid Beach South light rail station directly across the road.

Residents will find immediate access to both everyday needs and broader connectivity. A Woolworths Metro and local cafés are already operating nearby, while the beach sits just 100 metres from The Alfred’s front door. Pacific Fair, the region’s flagship retail centre, is also close by, with an extensive mix of dining, fashion and entertainment.&nbsp;

For those commuting or exploring beyond Mermaid Beach, the upcoming light rail link promises seamless movement north through Broadbeach, Surfers Paradise and into Southport, expanding access without the need for a car.

[smartcode_project:default project_id=149942 project_image_fid=355150]

Neighbouring locales such as Miami and Nobby Beach further enrich the lifestyle offering. These established precincts contribute everything from surf clubs and oceanfront parks to laid-back dining venues and independent retailers, all within a short walk or bike ride.&nbsp;

The Alfred effectively places residents within one of the Gold Coast’s most liveable pockets, where the essentials of daily life converge with long-term infrastructure planning and timeless natural appeal.

Predominantly local buyers jumped at the first release at The Alfred Residences, transacting the majority of the release in a matter of weeks. Demolition of the former shopping village is now underway, and Dankav expects completion of the first collection of residences in 2027.

[smartcode_project_cta:default project_id=149942]

The Alfred Residences brings village-style living to the heart of Mermaid Beach

<a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a> is better known for bus interchanges and Westfield than for high-end apartment towers. Kabbalah, on Playfield Street, is a deliberate push against that reputation.

Developed by <a href="https://www.apartments.com.au/developers/playfield-developments">Playfield Developments</a>, the building holds 64 apartments, all three and four bedrooms, across its 13 storeys. The apartments are generous by any measure: lower-floor three-bedrooms start at 164 sqm, each with a multi-purpose room and private balcony, while the north-facing penthouse stretches to 382 sqm. Every residence comes with two car spaces.

<a href="https://www.apartments.com.au/architects/ana-architects">ANA Architects</a>, the Brisbane firm behind the 25-storey Willahra Tower on Queen Street and the 45-storey Mantra on Mary in the CBD, shaped the building around curved forms drawn from the natural landscape. Balcony gardens run throughout, with planter boxes worked into the private outdoor spaces of each apartment, giving residents greenery at the threshold rather than just at the rooftop.

[smartcode_project:default project_id=149578 project_image_fid=354319]

That rooftop carries its own weight: a pool, landscaped gardens, and outdoor entertaining areas sit above the city, designed as much for quiet evenings as for hosting. The wellness offering continues at ground level, where a centre with pool, sauna, and communal lounge zones anchors the building's other end. Together they give the building a rhythm, somewhere to arrive at the top and somewhere to retreat to below.

The site itself is part of the pitch. "One of the last available sites to develop in an established precinct," is how Playfield Developments describes the Playfield Street address, and the surrounding context backs that up. Westfield Chermside, the second largest Westfield in Australia, is within a few minutes on foot, along with its dining precinct and cinema complex.&nbsp;

The Chermside bus interchange connects directly to the Brisbane CBD and across the northern suburbs via more than 20 Translink routes, with the CBD roughly 15 minutes away by road. The Prince Charles Hospital, one of Queensland's major teaching hospitals and the state's leading cardiac centre, is roughly a kilometre up the road on Rode Road.

[smartcode_project:default project_id=149578 project_image_fid=354321]

Place Projects is handling sales, bringing a track record across some of Queensland's largest residential developments. Early buyer response has centred on the finishes and scale, "buyers consistently comment on the high-quality finishes throughout the apartments," the sales team notes, pointing to craftsmanship and considered design as the recurring draw.&nbsp;

"They're looking for generously sized apartments that offer both space and functionality, combined with a strong lifestyle offering," Place Projects says.

Construction has been awarded to Clearcon, with completion slated for late 2027. Pricing runs from $1.5 million for a lower-floor three-bedroom up to $3.65 million for the penthouse.

[smartcode_project_cta:default project_id=149578]

Playfield Developments brings 64 apartments to Chermside with Kabbalah

More than 3,000 dwellings are currently selling or gearing up to launch across Surfers Paradise, the suburb’s most concentrated apartment pipeline in years. At least eight projects are already in market, with more moving through registration and presale, creating a meaningful wave of new supply.

This isn’t happening in a vacuum. Strong interstate migration into Queensland, particularly the Gold Coast, continues to underpin demand, with the local population expected to push past 800,000 in the early 2030s.

We’re also seeing solid early-stage buyer activity. As usual, the earliest phases tend to offer the best mix of pricing and choice, before the more popular layouts get snapped up.

Comparing Surfers Paradise projects? Browse all listings → <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">View all Surfers Paradise apartments</a>

<hr data-end="1189" data-start="1186" />
<h2 data-end="1218" data-section-id="tdhbfr" data-start="1191">How to Read the Pipeline</h2>

Apartment projects in Surfers Paradise are at various stages of their project lifecycle, from pre-launch, selling now, construction commenced, or construction complete.

Where you buy in that cycle matters.

<ul data-end="1674" data-start="1409">
	<li data-end="1542" data-section-id="d5c11p" data-start="1409">Registration and&nbsp;presale: Typically the lowest price points and best choice, but with longer wait times to completion</li>
	<li data-end="1608" data-section-id="plnjqp" data-start="1543">Under construction: Greater certainty, shorter timelines.</li>
	<li data-end="1674" data-section-id="13k7yl8" data-start="1609">Completed: No construction risk, but pricing reflects that.</li>
</ul>

The projects below are grouped by stage to help buyers understand where they sit in the buying window.

<hr data-end="1942" data-start="1939" />
<h2 data-end="1967" data-section-id="zj5dj7" data-start="1944">Projects Now Selling</h2>

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a> is the newest apartment development to launch in Surfers Paradise.

Exhale, being developed by SIERA, comprises just 54 apartments, a density not often seen in Surfers. It sits on the corner of Enderley Avenue and Garfield Terrace, just off Northcliffe Beach. SIERA Founder and Managing Director Brent Thompson spent over a year trying to secure the rare beachside site.

[smartcode_project:default project_id=112661 project_image_fid=359603]

SIERA engaged BDA Architecture to design the building, with a striking glass curtain wall&nbsp;façade.

Offering two-, three-, and four-bedroom apartments, Exhale will also offer its residents a two-level wellness podium with a heated magnesium pool, spa, sauna, Nordic&nbsp;cold shower, and biophilic designed landscaped gardens.

There's also a dedicated Pilates and yoga studio, library and reading retreat, cinema lounge, and private dining room with a private bar and wine cellar.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about Exhale →</a>

<hr data-end="2500" data-start="2497" />
Paradiso Place is the largest project currently in market in Surfers Paradise. Developer SPG Land recently begun construction on its 845-unit development they are bringing to 103 Ferny Avenue.

[smartcode_project:default project_id=106566 project_image_fid=185858]

At this scale, it’s effectively its own sub-market, offering a wide mix of configurations across multiple price points, from entry-level investor stock through to larger owner-occupier product. Amenities include a pool, gym, and outdoor spaces.

With projects of this size, early buyers typically benefit most from the broader selection before key layouts are taken up.

<a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about Paradiso Place →</a>

<hr data-end="2500" data-start="2497" />
Jewel Residences is the only completed development on this list. The three towers, which drastically altered the Surfers Paradise skyline when they were complete in 2020 from their dress circle position&nbsp;at 36 Old Burleigh Road, home 512 apartments.

[smartcode_project:default project_id=8843 project_image_fid=264503]

With the six-star The Langham within the middle tower, Jewel offers&nbsp;​​​​​​significant hospitality venues including&nbsp;signature restaurants, a bar, cafe, and a resort pool with a swim-up bar

<a href="https://www.apartments.com.au/buildings/jewel-residences-surfers-paradise-36-old-burleigh-road-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about Jewel Residences </a>

<hr data-end="2938" data-start="2935" />
Andrews Projects recently commenced construction at South Beach, just shy of 400 apartments at 3006–3016 Surfers Paradise Boulevard. Prices start from $1.08 million for the one-bedroom apartments.

[smartcode_project:default project_id=8887 project_image_fid=358399]

Central to the South Beach offering is a 5,500m sqm wellness and lifestyle precinct designed around the concept of renewal as a daily ritual.

The wellness facilities include sunrise and sunset pools, an indoor hydrotherapy pool, plunge baths, a Hammam, traditional and infrared saunas, red-light therapy and dedicated treatment rooms. A Technogym gym,&nbsp;cinema, co-working lounge and a range of indoor and outdoor dining and entertaining spaces, including BBQ terraces, complete the amenity.

<a href="https://www.apartments.com.au/new-apartments/south-beach-surfers-paradise-3006-3016-surfers-paradise-boulevard-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about South Beach →</a>

<hr data-end="3316" data-start="3313" />
Another new entry to the market is Palmera Residences, developed by Central Equity at 18 Garfield Terrace. That majority of the 347 residences are large three-bedroom apartments, priced from just shy of $3 million.

[smartcode_project:default project_id=108274 project_image_fid=361247]

<a href="https://www.apartments.com.au/new-apartments/palmera-residences-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>&nbsp;is being constructed in the prestigious Northcliffe residential neighbourhood on an expansive 3,239 sqm site. It is located at 18 Garfield Terrace near the Northcliffe Surf Life Saving Club and the patrolled Northcliffe surf beach, situated between&nbsp;<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a>&nbsp;and&nbsp;<a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a>.

Residents will have private access to extensive, state-of-the-art amenities, featuring two large pools including a generously scaled, family-friendly pool with safe shallow zones, and a 25-metre lap pool facing the western side, ensuring maximum sunlight all day.

<a href="https://www.apartments.com.au/new-apartments/palmera-residences-surfers-paradise-18-garfield-terrace-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about Palmera Residences →</a>

<hr data-end="3711" data-start="3708" />
26 Vista has benefitted from the boom in Surfers Paradise over the last few years. Over 70 per cent of the 280 apartments have sold, with the remaining priced from $1.86 million.

[smartcode_project:default project_id=112730 project_image_fid=365605]

26 Vista, being developed by MRCB, is scheduled to complete in late 2030 and has attracted strong interest from locals and interstate buyers, Matt George, from project marketer Urban Activation, says.

“The diverse mix of buyers we’ve seen investing in this development stands as a testament to the superior product that is being offered. 26 Vista is truly the gold standard for coastal living, with its thoughtfully considered design and its commitment to providing residents with five-star luxury in sub-tropical surrounds.”

<a href="https://www.apartments.com.au/new-apartments/palmera-residences-surfers-paradise-18-garfield-terrace-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about 26 Vista →</a>

<hr data-end="3711" data-start="3708" />
Away from the beach and closer to the Budds Beach area of Surfers Paradise is Homecorp's new tower, Florence Residences.

[smartcode_project:default project_id=150414 project_image_fid=357950]

The Monte Carlo building has 116 apartments amid a suite of wellness spaces including&nbsp;a private residents’ only wellness club including a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium and a spacious yoga and Pilates studio.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217" style="text-decoration:none">Enquire about Florence Residences →</a>

<hr data-end="4321" data-start="4318" />
<h2 data-end="4364" data-section-id="1bj0450" data-start="4323">The Broader Pipeline</h2>

There's a lot more to come in Surfers Paradise in the coming years. The most interest is likely the two-tower beachfront project proposed by Winx billionaire John Camilleri. The two towers, which will comprise 275 apartments, are to be connected by a 45-storey skybridge.

On the more boutique end, Cavella, by SEYAH, will have <a href="https://www.apartments.com.au/news/qld/first-look-seyah-to-launch-cavella-in-emerging-sunrise-boulevard-surfers-paradise-pocket-following-density-rethink">just 18 residences</a> across a more modestly-sized 12-level building, also nearer the river than the beach.

For a broader view, see our breakdown of the top 10 new apartment projects launching on the Gold Coast in 2026, covering key opportunities suburb by suburb.

<hr data-end="5185" data-start="5182" />
<h2 data-end="5234" data-section-id="1kp72fk" data-start="5187">What Buyers Should Weigh Up Before Enquiring</h2>

Where a project sits in the development cycle matters just as much, if not more than, the price.

An off-the-plan apartment at registration stage may offer the lowest entry point, but it typically comes with a 24–36 month settlement timeline.

Later-stage projects trade some of that upside for greater certainty, so the right choice ultimately depends on your timeframe, risk appetite, and what you’re prioritising: price, selection, or delivery.

The 3,000 apartments to reshape Surfers Paradise skyline

Rental Affordability

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Hobart remains the least affordable city to rent in Australia, followed by Adelaide which has overtaken Sydney as the second least affordable capital city, the latest release of the Rental Affordability Index (RAI) has found.
The RAI is an indicator of the price of rents relative to household incomes based on new rental agreements. It is released annually by National Shelter, Community Sector Banking, SGS Economics &amp; Planning and the Brotherhood of St Laurence.  
Rental affordability in some Australian cities, including Sydney, has improved marginally. However, the situation is untenable for people on Newstart, with rent costing at least 77% of their income in every capital city. 
Adrian Pisarski, Executive Officer, National Shelter, said: “There is not one place in Australia where a Newstart recipient can rent affordably.  
“Newstart renters in metro Sydney require 4.5 times their current income to achieve affordability. The most affordable places we have are in regional SA and even there someone on Newstart needs to pay 47% of their income to rent.  
“The RAI evidence is conclusive: all Newstart recipients who are renting are living in poverty. The situation is only marginally better for single and dual pensioners who also face unaffordable rents everywhere in Australia. 
“The implications for retirement incomes policy are dire with more people retiring without owning and facing a completely unaffordable rental market. We know older women are the fastest growing cohort experiencing homelessness and we’d expect increased rates of homelessness among older people based on these findings.”
Ellen Witte, Partner at SGS Economics and Planning said: “People on Newstart are the most vulnerable cohort in the country as they experience the worst levels of housing stress. 
“After paying the rent there are not enough resources left, and people may not even be able to fork out money to go to a job interview. There is an urgent need to raise the Newstart allowance and provide these households a pathway out of the poverty trap.”
James Barron, Head of Relations at Community Sector Banking, said: “Looking beneath the headline figures, rental stress is affecting the majority of very low-income households in Australia. People on Newstart are being hit particularly hard, being pushed to the outer fringes of our cities and away from opportunities for training and employment.
“Even in cities with higher than average incomes and better than average rental affordability, the plight of low-income renters continues to deteriorate.”
Conny Lenneberg, Executive Director of the Brotherhood of St Laurence, said that Newstart is the second-lowest unemployment payment in the OECD group of wealthy nations. When rent assistance is included, compared to other nations’ housing benefits, Newstart plunges to the lowest payment.
“Our social security safety net is letting down fellow citizens. There is an urgent need to raise Newstart and its very modest rental supplement and to increase subsidised social housing. 
“The evidence is utterly compelling: the deeply inadequate Newstart rate is a driver of homelessness. This is not the ‘fair-go’ society we cherish. 
“With high rents, single older job seekers and families with young children are in the eye of the affordable housing storm across the country. We are seeing increasing disparities, and the crisis end of this challenge is visible on our streets.” 
No relief for low-income households 
Rental stress has become so entrenched and severe for low-income households that the recent improvement in some cities has brought little relief – with the situation for most low-income households in these metropolitan areas remaining untenable.
More than a million households need some form of housing assistance, while 43% of low-income households experience rental stress. 
“Many working families and all non-working groups on benefits face severe rental affordability issues,” Pisarski said. 
“Renting households on incomes below $60,000 per annum have no affordable rentals in our cities, including all capitals and nearly every centre on the east coast. In the WA mining regions, even those earning up to $85,000 face unaffordable rents.”
A vision needed for Hobart 
A score of 100 and below on the RAI shows that households on average incomes would be required to spend at least 30% of their income on rent. A score of 100-120 indicates households are facing moderately unaffordable rents.  
Greater Hobart is the only capital city where rental affordability has dropped below the critical threshold of 100, falling to a RAI score of 93 in June 2019 and putting the city’s rent’s in the unaffordable category. This means that average income households are paying 30% of their income or more on rent.
The second least affordable capital city is Greater Adelaide, with a score of 113, surpassing Sydney, with a score of 119. Rents in both cities are considered moderately unaffordable.  
“Hobart is in the midst of a rental crisis, the worst in the country,” Witte, said. 
“The rents have been increasing by 10% per annum over the last three years. No matter how hard you work, you won’t be able to keep up with price rises like this. The market is failing and there is an urgent need for the government to intervene.
“There is a lack of new supply, while stock is being lost to the short-term holiday accommodation market. The rights of renters are weak, and the Tasmanian Residential Tenancy Act needs to be reviewed like Victoria has done.”
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j.ballantyne1990-6AQqhLzZaK

Hobart is Australia’s most unaffordable city for renters: RAI

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Rental affordability has improved in Western Australia, according to the Real Estate Institute of Australia (REIWA).
The group's Housing Affordability Report reveals the proportion of family income required to meet the median rent has improved to 16.4% – a decrease 0.1% from three months ago. 
REIWA President Damian Collins said the state is currently the most affordable place to rent in Australia.
“With coastal suburbs in high demand leading into warmer months, it is pleasing to see that it is now even more affordable to live in these desired locations, especially compared to the east coast which is unheard of for tenants to be able to rent a house in a coastal suburb for less than $450 per week,” Collins said. 
reiwa.com data revealed that the top 10 most affordable coastal suburbs were all under $300 per week with Shoalwater, Mandurah, Falcon, Butler and Eglinton leading the top five.  
“Topping the list is Shoalwater which has a median rent price of only $250 per week and is $24 less than a year ago,” Collins said. 
“Located just metres away from the Shoalwater Marine Park, it is no wonder why August reiwa.com data saw rental properties being snapped up on an average of only 17 days.”
Of the 10 suburbs that made the reiwa.com list, six were located in the south of Perth, within a few kilometres from one another. 
Collins said the south metropolitan area held a lot of opportunity for renters who wanted to live close to the coast, yet only a train ride away from the city.  
“The median price in suburbs like Rockingham, Safety Bay and Silver Sands is hovering around the $300 mark, which is notably lower than the Perth median price per week of $360,” Collins said.  
While Cottesloe and Fremantle do not fall into the most affordable suburbs in the Perth coastal area, their median rent of $578 and $420 per week is still more affordable than St Kilda or Bondi Beach which has a median of $650 and $1,325 per week. 
“It won’t always be this way, so I advise those looking for their next rental property to act sooner rather than later if they are wanting to secure an affordable home close to an iconic WA coastal suburb.”
<table border="1" cellspacing="1" cellpadding="1"><tbody>
<tr>
<td>Suburb</td>
<td>Median rent price</td>
<td>Change over 12 months</td>
</tr>
<tr>
<td>1. Shoalwater</td>
<td>$250 </td>
<td>- $24</td>
</tr>
<tr>
<td>2. Mandurah</td>
<td>$270</td>
<td>+ $11</td>
</tr>
<tr>
<td>3. Falcon</td>
<td>$290</td>
<td>- $5</td>
</tr>
<tr>
<td>4. Butler</td>
<td>$300</td>
<td>+ $5</td>
</tr>
<tr>
<td>5. Eglinton</td>
<td>$300</td>
<td>+ $0</td>
</tr>
<tr>
<td>6. Merriwa</td>
<td>$300</td>
<td>+ $5</td>
</tr>
<tr>
<td>7. Ridgewood</td>
<td>$300</td>
<td>+ $0</td>
</tr>
<tr>
<td>8. Rockingham</td>
<td>$300</td>
<td>+ $17</td>
</tr>
<tr>
<td>9. Safety Bay</td>
<td>$300</td>
<td>+ $5</td>
</tr>
<tr>
<td>10. Silver Sands</td>
<td>$300</td>
<td>+ $0</td>
</tr>
<tr>
<td>Greater Perth</td>
<td>$360</td>
<td>+ $10</td>
</tr>
</tbody></table>
A current listing is a Shoalwater three bedroom pet friendly house priced at $250 per week (pictured below). 
Positioned between Lake Richmond and the beach, the home at <a href="https://www.realestate.com.au/property-house-wa-shoalwater-427410202" target="_blank">10 Ninda Road</a> comprises three bedrooms, main living, kitchen and sunroom off laundry.
Other features include paved backyard, large shed, patio and four carport spaces. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/16/shoalwater.jpg" alt="">
A new two bedroom apartment in Mandurah has been listed for $270 per week (pictured below). 
The apartment at <a href="https://www.realestate.com.au/property-house-wa-mandurah-427305302" target="_blank">1/6 Forward Street</a> comes with two bedrooms, open plan living, kitchen and private courtyard.
It's situated within walking distance to shops, Mandurah foreshore and cafes. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/16/mandurah.jpg" alt="">
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Perth's top 10 most affordable coastal suburbs to rent: REIWA 

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Rental affordability improved during the June 2019 quarter to the lowest proportion of income required to meet rent payments since June 2008, according to research from the Real Estate Institute of Australia.
REIA President Adrian Kelly said the June quarter 2019 edition of the REIA Housing Affordability Report found the proportion of income required to meet rent payments decreased to 23.8%, a fall of 1.2 percentage points over the quarter and a decrease of 0.3 percentage points compared to the same quarter 2018. 
Kelly said housing affordability declined marginally across the country in the June quarter 2019.
“This is due to the rise in the average loan amounts after the lower levels of the March quarter – which appears to be an annual pattern,” Kelly said.  “With the exception of Western Australia, housing affordability declined in all states and territories. Although average loan amounts increased in all states and territories between 0.2% and 6.2% only Western Australia’s family income surpassed their increase in the loan amount.” 
Kelly said the total number of loans increased over the June quarter by 6.6%.  “The number of loans to owner occupier first home buyers has recorded increases in five of the six months of 2019. However, compared to the previous twelve months there was 16,521 less new housing loans - a decrease of 15.1%.  “This upward trend in first home buyer loans is expected to continue as over the past few years there has been an increase in the final quarter of the year.”
REIA's State by State review:
<ul>
<li>New South Wales</li>
</ul>
Over the June quarter, housing affordability in New South Wales declined with the proportion of income required to meet loan repayments increasing to 37.1%, an increase of 1.7 percentage points over the quarter but a decrease of 1.0 percentage points compared with the corresponding quarter 2018. With the proportion of income required to meet loan repayments 6.0 percentage points higher than the nation’s average, New South Wales remained the least affordable state or territory in which to buy a home. The number of loans to first home buyers increased to 6,822, an increase of 17.7% over the quarter but a decrease of 5.9% compared to the June quarter 2018.  Rental affordability improved in New South Wales over the June quarter with the proportion of income required to meet median rent payments decreasing to 28.0%, a decrease of 0.2 percentage points over the June quarter and a decrease of 0.8 percentage points compared to the same quarter last year. 
<ul>
<li>Victoria</li>
</ul>
Over the June quarter, housing affordability remained steady in Victoria with the proportion of family income devoted to meeting average loan repayments at 32.5%. However, when compared to the previous year, housing affordability increased, with the proportion of family income required to meeting average loan repayments decreasing 1.8 percentage points.  The number of loans to first home buyers in Victoria increased to 8,500, an increase of 18.0% over the quarter but a decrease of 5.7% compared to the June quarter 2018. 
Rental affordability in Victoria improved over the quarter with the proportion of income required to meet median rent decreasing to 23.0%, a decrease of 0.1 percentage points over the quarter and a decrease of 0.3% over the previous year. 
<ul>
<li>Queensland</li>
</ul>
Housing affordability declined in Queensland over the June quarter with the proportion of income required to meet home loan repayments increasing to 28.2%, an increase of 0.7 percentage points over the quarter and an increase of 0.1 percentage points compared to the same quarter last year. 
Over the June quarter, the number of loans to first home buyers in Queensland increased to 4,755, an increase of 1.6% over the quarter but a decrease of 17.8% compared to the same quarter of 2018. 
Rental affordability in Queensland improved over the quarter with the proportion of the median family income required to meet the median rent decreasing to 21.9%, a decrease of 0.1 percentage points over the quarter and a decrease of 0.3 percentage points compared to the same quarter 2018.
<ul>
<li>South Australia</li>
</ul>
Housing affordability in South Australia declined with the proportion of income required to meet monthly loan repayments increasing to 27.1%, an increase of 0.2 percentage points over the quarter and an increase of 0.1 percentage points compared to the June quarter 2018. 
Over the June quarter, the number of loans to first home buyers in South Australia increased to 1,588, an increase of 15.9% over the quarter and an increase of 10.2% compared to the June quarter 2018
Rental affordability in South Australia, improved over the quarter with the proportion of income required to meet rent payments decreasing to 22.0%, a decrease of 0.8 percentage points over the quarter but remaining stable compared to the June quarter 2018.  
<ul>
<li>Western Australia</li>
</ul>
Housing affordability in Western Australia improved with the proportion of income required to meet loan repayments decreasing to 22.4%, a decrease of 0.2 percentage points over the quarter and a decrease of 1.5 percentage points compared to the June quarter 2018. 
The number of first home buyers in Western Australia increased to 3,473 in the June quarter, an increase of 4.8% over the quarter but a decrease of 7.5 percentage points compared to the same time last year.
Rental affordability in Western Australia also improved during the June quarter with the proportion of family income required to meet the median rent decreasing marginally to 16.4%, a decrease of 0.1 percentage points over the quarter but an increase of 0.1 percentage points compared to the year before. 
<ul>
<li>Tasmania</li>
</ul>
Housing affordability in Tasmania declined over the June quarter with the proportion of income required to meet home loan repayments increasing to 25.8%, an increase of 0.4 percentage points over the quarter and an increase of 0.4 percentage points from the June quarter 2018. 
The number of first home buyers in Tasmania decreased to 430, a decrease of 9.7% over the quarter and a decrease of 6.1% compared to the same quarter of the previous year. 
Rental affordability in Tasmania also declined over the quarter with the proportion of income required to meet median rents increasing to 29.9%, an increase of 0.6 percentage points over the quarter and an increase of 2.3 percentage points compared with the June quarter 2018. 
<ul>
<li>Northern Territory</li>
</ul>
Housing affordability in the Northern Territory declined with the proportion of income required to meet loan repayments increasing to 20.6% in the June quarter, an increase of 0.4 percentage points over the quarter but a decrease of 0.9 percentage points when compared to the June quarter 2018. 
The number of loans to first home buyers in the Northern Territory increased to 274, an increase of 46.5% over the June quarter and an increase of 54.8% compared to the June quarter 2018. 
Rental affordability in the Northern Territory however, improved over the quarter with the proportion of income required to meet the median rent decreasing to 20.2%, a decrease of 0.7 percentage points over the quarter and a decrease of 2.4 percentage points compared to the June quarter 2018.
<ul>
<li>Australian Capital Territory</li>
</ul>
Housing affordability in the Australian Capital Territory declined over the June quarter with the proportion of income required to meet home loan repayments increasing to 20.6%, an increase of 0.3 percentage points over the quarter but a decrease of 0.3 percentage points compared to the same quarter last year. 
The number of loans to first home buyers in the Australian Capital Territory increased to 408, an increase of 4.1% over the quarter but a decrease of 24.2% compared to the June quarter 2018.
Rental affordability in the Australian Capital Territory, improved marginally over the June quarter with the proportion of income required to meet the median rent decreasing to 18.9%, a decrease of 0.1 percentage points over the quarter but an increase of 0.3 percentage points compared to the June quarter 2018. 
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Rental affordability hits 11-year high: REIA 

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It has been increasingly obvious Sydney housing affordability was deteriorating based on the number of years’ worth of income required to purchase a home.
The significant gap also exists between incomes and the cost of renting.
The situation is particularly dire for single income households.
Professor David Adamson, from the University of South Wales, noted in the recent Housing Affordability Income Gap report, that the geography of housing unaffordability was increasingly hurting middle-income families.
Historically rents have been more closely pegged to incomes than property prices, but this link appears to be weakening.
Adamson suggests we have a broken housing system as between 2006 and 2016, Sydney median rents have increased by 76% while incomes have increased by 51%.
"The analysis tells us that this isn’t simply an experience of the few but that occupations often seen as middle-class and well paid are increasingly experiencing housing stress in order to live close to their place of work."
The report concluded typical households face the choice between living a considerable distance from the city, or living in a one-bedroom apartment.
If neither option was practical, these households are effectively forced to accept living in housing stress.
Avoiding stress on a two-bedroom apartment in Sydney’s inner suburbs required a $121,000 income.
The report notes the median rent in Sydney is $530 per week which would be enough to secure a three-bedroom house in Blacktown, but not enough for a two-bedroom unit in Burwood.
The report found two-bedroom units in Sydney’s middle ring are affordable, however affordability income gaps exist in the Canada Bay, Hunters Hill, Ku-ring-gai and Willoughby LGAs. 
Sydney’s outer ring is affordable for renting, although income gaps exist for detached dwellings in Hornsby, Northern Beaches, Sutherland, and The Hills Shire.
Since June 2000, regions in Sydney’s west such as Blacktown and Fairfield have experienced rent increases of 125% and 145% respectively, compared to 87% in Mosman, and 94% in Woollahra.
The effect is even more pronounced in satellite cities on the outskirts of Sydney such as Newcastle, where rents are up 150%, and Wollongong with rents up by 168%. 
With relatively lower incomes, renters of detached dwellings in the outlying locations and regional NSW face housing stress too.
The report acknowledges the 30-year boom in house prices has made a lot of people extremely wealthy, "at least on paper".
It then suggests the wealth effect was "perhaps why so many have been willing to turn a blind eye to the economic and social fallout for so long".
It slammed policy makers for "aiding this wilful blindness by using cheap credit and immigration to create the illusion of an economy running on all cylinders".
The AHIG report noted dwelling prices have experienced modest declines over the year with Sydney leading the way, down 4.5%.
"It would be a mistake however for policy makers to take this as a sign that no action is required," the report concluded, noting for Australian housing to meet any accepted definition of affordability, prices would have to fall by 60% from the 2017 peak.
It conceded any major fall in prices could spark a deep and painful recession.
However a recession "sparked by a housing bust should be viewed as an opportunity to address the systemic problems that enabled the emergence of the crisis in the first place,' it ill-advisedly countenances.
This article first appeared in The Daily Telegraph. 
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jchancellor-FAypfDUnLy

Sydney's rental affordability is hurting middle-income families 

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Hospitality workers, pensioners and minimum wage earners are being crippled by rental stress in metropolitan areas across Australia, according to the May Rental Affordability Index (RAI).
The RAI is a price index for housing rental markets released biannually by National Shelter, Community Sector Banking and SGS Economics &amp; Planning. It’s an indicator of rental affordability relative to household incomes.
The latest RAI found Hobart has overtaken Sydney to become the least affordable capital city in Australia, followed by Adelaide, Brisbane, Melbourne, Canberra and Perth.
Unaffordability for very low-income households is most severe in Sydney and Canberra, where median incomes are well above the national average.
“The latest Rental Affordability Index shows the rental crisis continues. Financial stress, overcrowding and insecurity are the everyday reality of working families,” Ellen Witte, Partner at SGS Economics and Planning said.
Adrian Pisarski, Executive Officer at National Shelter said that while there has been some slight improvement in some capitals, the situation has not improved at all for low income households. “For households below the median income rental affordability remains a real problem while for households on moderate and low wages and benefits we have a genuine crisis in rental affordability,” Pisarski said.
“The latest RAI shows the serious need for a national housing plan – without action, lower income earners will be forced from our cities and capitals like Sydney will lose vital workers, like those in hospitality,” said Andrew Cairns, CEO of Community Sector Banking.
Conny Lenneberg, Executive Director of the Brotherhood of St. Laurence, said the data reflected the struggles of low income renters the Brotherhood worked with in outer suburbs of major cities and regional areas.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%201.jpg" target="_blank">to enlarge.</a>
<a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%201.jpg" target="_blank"> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%201.jpg" alt=""></a>
This is the first release of the Rental Affordability Index since the Brotherhood of St. Laurence joined SGS Economics &amp; Planning, National Shelter and Community Sector Banking as a sponsor.
“This study shows the depths of the housing crisis facing Australian renters on low incomes,” Lenneberg said. “People are facing deep challenges securing affordable housing in the private rental market, pushed further and further away from the areas from where the jobs are located.’’
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%202.jpg" target="_blank">to enlarge.</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%202.jpg" alt="">
“For some vulnerable people who are unemployed, the combination of very low rates of Newstart -  as little as $38.98 a day for a single unemployed person - and rising rents for even modest accommodation, is proving unbearable. The consequence is that people are being pushed into homelessness.” 
Speaking on what could be done to address the crisis, Witte said, “there are opportunities to further streamline development planning processes, but more importantly to invest in social and affordable housing for workers. The use of instruments like the density bonus and inclusionary zoning needs to be maximised.”
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%203.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%203.jpg" alt="">
 
National Shelter are also calling for change.
“The data demonstrates the need for national leadership and a national housing strategy. We need to bring the threads of tax reform, incentives to encourage greater investment by institutional finance and states, planning reforms and urban and regional development together to tackle this problem,” Pisarski said. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%205.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%205.jpg" alt="">
Tasmania 
With a RAI of 102 in the December quarter, greater Hobart is now the least affordable capital city in Australia. Rents in Hobart are now unaffordable to even average income households.
The average household in Hobart faces rents at 29% of total income, putting it on the verge of housing stress – when it becomes difficult to afford essentials, like food and healthcare.
And the problem is spreading –  areas such as Margate and Sorell are also now unaffordable to median households.
The situation is most dire for those on lower incomes. A single pensioner faces severely unaffordable rents at 44% of income, while pensioner couples faces rents at 32% of income, which is deemed unaffordable.
With a RAI of 121, the average household in regional Tasmania faces rent at around 25% of income.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%204.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%204.jpg" alt="">
New South Wales
With a RAI of 113 in the December quarter of 2017, rents remain moderately unaffordable on average in Sydney. It’s performing marginally better than estimated, thanks to increased income levels from Census data.
A single pensioner household faces spending 94% of income on rent. This extreme level of housing stress is exacerbated by other pressures such as increased healthcare costs and reduced mobility.
Regional NSW remains the least affordable regional area studied in Australia, with a RAI of 112 median households face rents at 27% of income.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/23/TABLE%206.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/23/TABLE%206.jpg" alt="">
Victoria
With a RAI of 126 in the December quarter of 2017, the median household in Greater Melbourne faces rents at around 24% of total income, which is considered acceptable.
However, unaffordable rents are spreading from the city centre. Areas in the west, north, east and south of Melbourne, such Altona, Coburg, Heidelberg, and Oakleigh, became moderately unaffordable in the last quarter. They previously had acceptable rents.
“Australia’s food capital is unaffordable for hospitality workers and minimum wage households,” Witte said. “Full-time hospitality workers may pay 34% of their income on rent, forcing them into housing stress.
With a RAI of 123, regional Victoria is the only regional area studied in Australia, alongside regional NSW, that is even less affordable than its metropolitan counterpart.
Queensland
With a RAI of 121 in the December quarter, the average household in Brisbane faces rents at 25% of total income – rents are considered acceptable for the first time since the inception of the Index in 2012.
However, rents remain unaffordable to lower income households. A single pensioner faces severely unaffordable rents at 65% of income. It’s just as dire for pensioner couples, who face rents at 41% of income, also deemed severely unaffordable.
Regional Queensland recorded a RAI of 122, with the average household facing rents at 25% of total income.
Australian Capital Territory
The ACT recorded a RAI of 128 in the December quarter of 2017, with median households facing rents at 23% of income, which is deemed acceptable.
With the level of affordability driven by relatively high incomes in the ACT, those on lower incomes face particularly unaffordable rents. A single person on benefits faces extremely unaffordable rents at 109% of income, while a single part-time worker parent on benefits faces rents at 58% of income, which is severely unaffordable.
South Australia 
With a RAI of 117 in the December quarter, there has been very little fluctuation in rental affordability in Adelaide in recent months – the score has not changed for six quarters. 
However, unaffordable rents have spread to more suburbs north of the city – Wingfield, Parafield Gardens and Para Hills declined from acceptable to moderately unaffordable.
Across the Adelaide foothills rents range from moderately unaffordable to unaffordable. 
A single person on benefits faces rents at 70% of income, which are extremely unaffordable, while a single part-time worker parent on benefits faces severely unaffordable rents at 40% of income.
Regional South Australia continues to see improving rental affordability. With a RAI of 137, regional SA is at its most affordable since at least mid-2012 when the Index began.
Western Australia
With a RAI of 145 in the December quarter, the latest report shows a continued record improving trend in rental affordability in Perth – the median household faces rents at 21% of total income, which is considered acceptable. 
Despite the continued improvement, rents remain unaffordable for lower income households. A single part-time worker parent on benefits faces rents at 46% of income, which is severely unaffordable.
Rental affordability has declined in regional Western Australia, which recorded a RAI of 153 in the December quarter of 2017.
 
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Australian city rental stress becoming too much for minimum wage earners

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<h1>
<a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;">Hal Pawson</a>, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
</h1>
As everyone supposedly knows, fixing housing unaffordability is simply a matter of <a href="https://thekouk.com/item/413-house-prices-are-surging-because-of-low-supply-it-s-economics-101" target="_blank">boosting housing supply</a>. But wait! With their <a href="http://csrm.cass.anu.edu.au/research/publications/regional-housing-supply-and-demand-australia" target="_blank">just-published report</a> on house-building and population growth, ANU academics Ben Phillips and Cukkoo Joseph have blown yet another hole in <a href="https://www.ahuri.edu.au/evidence-in-action/news/transcript-of-treasurers-address-on-housing-affordability-now-available" target="_blank">that sacred claim</a>.
By comparing housing demand and supply at a sub-regional level, their analysis highlights evidence that <a href="http://www.smh.com.au/business/the-economy/housing-supply-alone-wont-fix-the-affordability-crisis-modelling-shows-20171119-gzobxa" target="_blank">in many parts of Australia</a> – not least inner Sydney, Melbourne and Brisbane – house-building has been running well ahead of local household growth for the past few years. Yet these are hardly areas where prices have dived.
In the City of Sydney, for example, <a href="http://www.housing.nsw.gov.au/about-us/reports-plans-and-papers/rent-and-sales-reports/issue-120" target="_blank">overall median apartment prices rose by 52%</a> in the five years to March 2017. On the ANU analysis, this area has recently been oversupplied relative to population. Yet apartment prices here still rose at the same rate as across Greater Sydney, a region with some areas of undersupply.
<hr>
Further reading: <a href="https://theconversation.com/australias-almost-a-world-leader-in-home-building-so-that-isnt-a-fix-for-affordability-73514" target="_blank">Australia’s almost a world leader in home building, so that isn’t a fix for affordability</a>
<hr>
<h2>Politicians’ worn-out excuse</h2>
Previous commentaries have highlighted <a href="http://www.smh.com.au/business/the-economy/the-government-says-it-has-a-plan-to-fix-the-housing-affordability-crisis-this-chart-suggests-it-doesnt-20160902-gr7sbz" target="_blank">the recently strong positive correlation</a> between rapidly expanding housing supply and property inflation. But these correctives to the popular wisdom have failed to gain traction.
This is partly because of the continuing seductive appeal of the common sense claim that rising prices reflect gross shortage. So, it’s reasoned, expanding house building will moderate the market.
As my Sydney University colleague Peter Phibbs <a href="http://www.huffingtonpost.com.au/peter-phibbs/our-politicians-need-to-read-chapter-1-of-an-economics-textbook_a_21876676/" target="_blank">recently observed</a>, this “supply mantra” works for politicians seeking to connect with voters because “everyone is an economist now and more supply will bring down prices”.
Heaven forbid that anyone might draw attention to the <a href="https://theconversation.com/tackling-housing-unaffordability-a-10-point-national-plan-43628" target="_blank">special features of housing</a> as a commodity. As noted by Ben Phillips, these mean such supply “rules” do not apply; at least not in the simple form applicable to <a href="https://www.propertyobserver.com.au/http://www.smh.com.au/news/National/Aspectacularbackflipwithnotaredfacetobeseen/2005/05/24/1116700714172" target="_blank">bananas</a>.
<hr>
Further reading: <a href="https://theconversation.com/why-housing-supply-shouldnt-be-the-only-policy-tool-politicians-cling-to-72586" target="_blank">Why housing supply shouldn’t be the only policy tool politicians cling to</a>
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More importantly, though, governments use their unqualified faith in equitable housing market solutions to get off the hook. It absolves them of the responsibility for playing an active role in managing and shaping these markets to deliver housing that meets everyone’s need for shelter. Instead, they facilitate development for speculation.
<h2>Calls for a policy rethink</h2>
This critique is not exclusive to academics and affordable housing campaigners. It is increasingly coming from other stakeholders, including in the finance industry.
In a <a href="http://www.industrysuperaustralia.com/publications/reports/assisting-housing-affordability-discussion-paper/" target="_blank">recent report</a>, Industry Super Australia (ISA) lamented the “haphazard approach [to housing policy] … across all levels of Australian government … What was a serious problem a decade ago is becoming a crisis after a further ten years of policy gridlock”.
We <a href="https://theconversation.com/mounting-housing-stress-underscores-need-for-expert-council-to-guide-wayward-policymaking-84196" target="_blank">recently advocated</a> for a re-established National Housing Supply Council (NHSC). Echoing this, ISA calls for government to set up “a co-ordinating body to identify the extent of regional shortfalls in [affordable] housing”. This would require “reinstatement of a rigorous housing supply forecasting capacity to underpin effective city and municipal level planning”.
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Further reading: <a href="https://theconversation.com/mounting-housing-stress-underscores-need-for-expert-council-to-guide-wayward-policymaking-84196" target="_blank">Mounting housing stress underscores need for expert council to guide wayward policymaking</a>
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As advocated by ISA, the body’s membership and functions would closely mirror those of the NHSC. However, again consistent with our proposals, there would be greater emphasis on the position of renters on low to moderate incomes.
No-one disputes that, with continued population growth nationally and especially in our capital cities, maximising new house-building must be part of the policy mix. But the idea that this can be any kind of silver bullet for unaffordable housing – especially for the lower-income renters who are really doing it tough – is fundamentally flawed. <a href="http://www.industrysuperaustralia.com/publications/reports/assisting-housing-affordability-discussion-paper/" target="_blank">As ISA puts it</a>:
<blockquote>
Simply increasing overall housing stock will not ensure that more assisted [affordable] housing becomes available. Instead, increasing the supply of assisted [affordable] housing specifically is required.
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What is needed above all is “a comprehensive, long-term commitment to addressing the supply of affordable rentals for low to moderate earners”.
Australia sailed directly away from this essential goal with the Abbott government’s 2014 <a href="https://cityfutures.be.unsw.edu.au/news-event/news/defining-action-to-secure-institutionally-financed-affordable-housing/" target="_blank">scrapping of the National Rental Affordability Scheme</a>.
<h2>Moves to repair the damage</h2>
Recent policy moves in Canberra just may have set a course towards repairing the damage.
Treasurer Scott Morrison has backed a <a href="http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_18.htm" target="_blank">new mechanism</a> to channel low-cost construction finance to community housing providers. The Commonwealth is also starting to pressure the states and territories to develop “<a href="https://www.legislation.gov.au/Details/C2017B00238/Download" target="_blank">credible housing strategies</a>”. This would be in return for ongoing national funding for public housing and homelessness services.
Crucially, such strategies should include state and territory commitments to the robust use of land-use planning systems to hard-wire affordable rental housing supply into the normal private house-building process. This would emulate and build on <a href="http://blogs.unsw.edu.au/cityfutures/blog/2016/11/sydney-needs-higher-affordable-housing-targets/" target="_blank">recent proposals by the Greater Sydney Commission</a>, which the New South Wales government is considering.
<img src="https://counter.theconversation.com/content/87757/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">For the states and territories, this model could be a major element of “their side of the bargain” in a serious push to secure an enduring affordable housing supply. Only with some form of matching federal “development subsidy”, however, do such strategies stand a chance of making a real difference.
<a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank">Hal Pawson</a>, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/facts-sink-glib-housing-supply-mantra-the-focus-must-be-on-affordable-rental-87757" target="_blank">original article</a>.
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Facts sink glib housing supply mantra – the focus must be on affordable rental

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Sydney continues to be Australia’s least affordable city for rental accommodation but, of all cities, Melbourne has seen the greatest decline in affordability since 2013, according to the latest Rental Affordability Index (RAI), released November, 2016.
“The latest Rental Affordability Index shows housing stress is a common reality for people in the rental market, especially those on low incomes, who have little left to spend on essentials like food, electricity, fuel and education, after paying rent,” said Andrew Cairns, CEO Community Sector Banking. “People in the lowest income households are being pushed out of the rental market, and into poverty and homelessness - this situation is most dire in Sydney.”
Produced by National Shelter, Community Sector Banking and SGS Economics &amp; Planning, the RAI is an easy to understand indicator of rental affordability relative to household incomes across Australia.
Released biannually, the RAI is intended to complement the Housing Affordability Index (HAI), which is a price index for the purchase of houses.
Adrian Pisarski, Executive Officer of National Shelter, said the index shows “low income households continue to face unaffordable rents and high levels of housing stress despite some improvements in the rental market - additional supply in capitals has not eased rental affordability for low income households”.
“We are most concerned that there is no national strategy to tackle housing affordability, especially when we see that additional supply is not reaching low income households, and increases in homelessness are being reported,” Pisarski said.
Ellen Witte, an Associate at SGS Economics and Planning, said it was also a great concern that “although low and single income households are worst off, even average households would struggle if rents become less affordable”.
“With home ownership falling further out of reach for many households, rental unaffordability is a key issue to address in Australia’s housing equation.
The index shows rental affordability is dividing Australia, with service rich areas tending to be very unaffordable, while service poor areas are more affordable, particularly in Sydney, Melbourne and Perth,” said Witte.
Cairns calls for the nation to wake up to the rental crisis. “There is a dire need for innovative financial models to support more affordable housing and we’re calling on governments, companies and philanthropists to collectively use their power to create sustainable solutions now,” he said.
Greater Sydney continues to be at crisis levels in terms of rental affordability, with an RAI of 108 in the June quarter of 2016.
The average renting household spends near 28 percent of its total income to pay the median rent of $480 per week.
Most inner city areas remain extremely unaffordable and regional NSW also remains the least affordable regional area, despite having improved slightly over past quarters.
Despite seeing the most significant fall in affordability since 2013, Greater Melbourne is Australia’s second most affordable metropolitan area, with a RAI of 126 in the June quarter.
The average renting household spends around 24 percent of total income on rent. However, affordability varies greatly across income groups and areas.
The lowest income households face one of the worst rental affordability situations of all metro areas in Australia.
It’s most dire for non-family, mostly single person, households, which would pay near 110 percent of total income on rent, even after discounting average rents for this group by 25 percent for access to social housing.
Witte notes: “Obviously, this group is pushed beyond the margins of the market. Not surprisingly, we have seen a doubling of people sleeping rough in the streets of Melbourne over the last two years. More affordable areas are likely to have poor access to employment and services, while those close to jobs and services are unaffordable for average income households”.
While rental affordability has continued to improve at a substantial rate in Perth since the end of the mining boom, this trend may not continue in future quarters due to a decline in incomes.
Greater Perth recorded an RAI of 131 in the June quarter, up from 109 two years ago.
The average household would pay 23 percent of total income on rent.
The first two quarters of 2016 recorded the first decline in average household income in the metropolitan area since late 2013, in line with the economic slowdown.
Hobart continues to score poorly in the RAI due to lower incomes and high rental yields, which generate high levels of rental stress.
In particular, rents remain extremely unaffordable for low income households in Greater Hobart, which would spend 50 percent or more of total income on rent.
The average household pays around 27 percent of total income on rent.
While both Brisbane and Adelaide scored reasonably overall in the latest index, there was some volatility.
Median rents fluctuated most significantly in Brisbane, from a high of $409 in March to a low of $397 in June 2016.
The average household renting in Greater Brisbane would pay around 25 percent of total income, while those in Greater Adelaide spend near 27 percent of total income on rent.
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Australia’s rental affordability crisis pushing people into homelessness

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Housing affordability (and rental affordability) in Queensland is not the same issue that it is in the southern states, and so when national media and national organisations talk about “our affordability problems” they are generally referring to Sydney and Melbourne.   
However, this week Anglicare released its snapshot research into rental affordability, looking at more than 7400 properties listed on realestate.com.au on one weekend to create a picture of the city’s affordability.
The snapshot found (among other things) that around 11 percent of advertised rentals (796 listings) would be affordable for a family where two adults worked minimum wage jobs and had two young children.
The snapshot also found that there were very few options for adults, either couples or singles, who were on welfare payments to rent their accommodation without being in financial distress (where more than 30 percent of income was allocated to accommodation).
The REIQ’s concern about this snapshot is that it might not present the most accurate picture, which then affects the conclusions drawn. It is important also to be aware that not all rentals are advertised on realestate.com.au. A significant level of rentals is listed on other prominent portals, and there is also a significant number advertised privately. So the realestate.com.au snapshot is not necessarily the most precise source of information about all rentals in the market at any one time.
Having said that, the REIQ does believe that housing should be affordable for all members of our community and we work closely with a range of organisations in an effort to ensure housing affordability does not fall through the cracks and get neglected as a social issue.
The REIQ forms part of the Housing Affordability Expert Panel, formed by the Minister for Housing and Public Works, Mick de Brenni, and we meet regularly with other similar organisations to offer feedback and information that helps the Minister manage housing affordability in Queensland.
We also work with RentConnect, a Queensland Government department that helps those in lower socioeconomic brackets secure affordable housing. We teach real estate agents how to fairly and properly assess those who apply for rental accommodation and how to help them find the services that will help them finance their rentals.
One of the things we regularly teach consumers is that the listing price, with both rentals and property sales, is always negotiable.  This is the wish-list price and should always be regarded as a starting point only.
The negotiability of these wish-list prices will grow over the next 18 months as the much-written about supply of apartments comes to market. We expect landlords to become more flexible as rents soften and supply continues to grow. This will definitely improve affordability in Brisbane’s rental market.
For more information from the REIQ, <a href="https://www.reiq.com" target="_blank">click here</a>.
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