<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Residential Market

jchancellor-FAypfDUnLy

How are Australia’s states and territories performing? CommSec's Craig James

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Queensland’s Toowoomba sits on the list of most-searched suburbs list for 2015 by rent.com.au.
The median rent for all rental properties advertised in Toowoomba earlier this year was $267 per week, a fall of 5.31 percent from the last previous quarter. 
Toowoomba’s median price was also well below the median of $290 per week for surrounding suburbs which include East Toowoomba, Harristown, Newtown, North Toowoomba and South Toowoomba. 
The average days on market for all rental properties advertised in Toowoomba within the last 90 days improved by 15 days to 27 from the last quarter. Toowoomba also did better than the 40 days on market for surrounding suburbs.
Out of a total of 10 rental properties advertised in Toowoomba within the 30 days, six were houses and four were apartments. 
The price range of advertised properties was from $180 for a two-bedroom dwelling to $380 for four bedrooms.
As an illustration, Property Observer came across a couple of dwellings up for rent around the median price on <a href="https://rent.com.au/" target="_blank">rent.com.au</a>:
<img src="/images/2016/04/29/rent_1apartment.jpg" alt="" width="475" height="356"> A two-bedroom apartment at <a href="https://www.rent.com.au/property-apartment-toowoomba-4350-1711428" target="_blank">1/115 South Street, </a><a href="https://www.rent.com.au/property-apartment-toowoomba-4350-1711428" target="_blank">Toowoomba</a>, is up for rent at $270 per week. 
<img src="/images/2016/04/29/700_woomba2.jpg" alt="" width="532" height="326">
A three-bedroom house at <a href="https://www.rent.com.au/property-house-toowoomba-4350-1759878" target="_blank">8 Hamwood Street</a>, is up for rent at $300 per week.
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prateek24-ezbwHMbNAk

QLD's Toowoomba has median rent lower than neighbours: rent.com.au

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Yes, I know everyone hates elections but the more I look at this election the more I like it simply because real estate is front and centre.
History will judge whether the government and opposition erred by allowing negative gearing into the debate, although what they have done is to finally open that can of worms which previously had been removed from all discussions.
When you take the time to contemplate the direction that property prices are headed (thanks mainly to all these new developments) there are plenty of dark clouds building. For mine; the smartest solution is to simply limit the number of investment properties to a single tax file number. Opinions vary that negative gearing is driving the values of property although investors account for just one third (approximately) of purchases, so that in itself can’t be the major contributor.
The problem why Australia’s property prices are so high sees the blame at failed political policies where prices have increased two to three times than that when the Baby Boomers were buying property – which by the way were single income families. Governments have failed miserably when it comes to infrastructure where we only ever hear of Very Fast Trains in an election year – come July 2, we in all probability won’t hear it mentioned for another three years.
Opinions when it comes to real estate are always interesting where today we see many property markets starting to ease and nobody comes out and states that this is actually a good thing. Many of Australia’s property markets are actually self-medicating and correcting which is great news given the damage a crash can cause. Naturally we should not also forget that property markets historically slow when an election is announced although many parts of Australia had already started to re-calibrate their prices downwards – we have passed the peak.
This week we saw that for the first time in seven years Australia was now recording deflation – which immediately called for the Reserve Bank of Australia (RBA) to cut the cash rate when they meet next week. Even if it were to cut the cash rate say – 0.25 you can rest assured that the banks won’t be passing this on.
I’ve been on the public record as being opposed to federal government policy in December 2008 when off – the – plan – purchases by foreigners were raised from 50 to 100 per cent – the governments have not addressed nor even discussed this. With interest I have noted that this month the ANZ, Commonwealth Bank and this week Westpac are no longer lending money to foreign buyers wanting to buy residential property in Australia.
The major lenders have already implemented black – spot areas where they will no longer finance new apartment developments. Interestingly nobody has even bothered to raise this with any politicians given this is a significant stance by the major lenders that relates directly to government policy. Now we can expect this to remain the case for quite a few years to come with Sydney and Melbourne embarking on massive new development construction – the major lenders have massive exposure here.
Now should the ALP be elected what does this do to their new policy regarding negative gearing? I can tell you what it will do to off – the – plan acquisitions (new property) – it will shut it down almost immediately. Investors are not permitted to buy existing properties, only new – despite 93 per cent of investors preferring to buy existing.
One would think that there should be much more debate about the repercussions to the economy with the major lenders now not lending to foreign buyers. Then of course one can’t rule out a significant price correction given these new developments are massively over valued due mainly to foreign buyers driving these prices. Investors aren’t going to be buying into these new developments for negative gearing purposes when they know full well that these properties are facing a significant value correction.
One only has to look at the body language of the major banks to see quite clearly they have already commenced direct action to minimise their exposure to this newly created property market.
The problem as I see it is that politicians are making some huge mistakes in judgement when it comes to our property markets but sadly nobody is asking them the right questions. A classic example of this the banks deciding to restrict all loans to foreign buyers which is in direct contradiction to the federal governments policy – which we all know is dumb. Even funnier is that the government did not bat an eyelid when the major lenders announced this policy review.
<h5>MOSMAN – 2088</h5>
Number of houses on the market this time last year – 61
Number of houses on the market last week – 43
Number of houses on the market this week – 45
Number of apartments on the market this time last year – 52
Number of apartments on the market last week – 50
Number of apartments on the market this week – 55
<h5>CREMORNE – 2090</h5>
Number of houses on the market this time last year – 1
Number of houses on the market last week – 7
Number of houses on the market this week – 9
Number of apartments on the market this time last year – 15
Number of apartments on the market last week – 26
Number of apartments on the market this week – 26
<h5>NEUTRAL BAY – 2089</h5>
Number of houses on the market this time last year – 2
Number of houses on the market last week – 11
Number of houses on the market this week – 11
Number of apartments on the market this time last year – 30
Number of apartments on the market last week – 27
Number of apartments on the market this week – 23
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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robertsimeon-hRNTwJyXkQ

Why I am liking this election: Robert Simeon

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Will this budget mark the inception of a new deal for Australian cities? And will it herald a new dawn for Australian local democracy?
Addressing the Australian Public Service in the Great Hall of Parliament on April 20, Prime Minister Malcolm Turnbull chose to emphasise that “smart cities” would be the engine room of innovation and growth in Australia’s new economy to be delivered through the concept of “City Deals”.
Turnbull said:
The “City Deal” approach used in the United Kingdom has been instrumental in the renaissance of Manchester and Glasgow, and we believe there are many elements that can be applied in Australia.
<h4>Turnbull’s address to the Australian Public Service.</h4>
But what is the value proposition underpinning the “City Deal”? And can it be applied here in Australia?
<h2>The value proposition</h2>
The value proposition has historical, democratic and economic foundations.
Historically, it builds on the role of iconic cities in the advance of civilisations. For example, the following quotation from Mel Sirotkin’s evocative work perfectly captures the central role of Manchester as the engine room of the Industrial Revolution:
During the Industrial Revolution Greater Manchester seized the initiative to become the world’s ﬁrst modern industrial metropolis. It is home to the nation’s ﬁrst public library, the birthplace of modern chemistry, and the professional football league. It is where Dalton developed atomic theory and Rutherford split the atom. Inevitably it is also where the rainproof mackintosh was invented.
Democratically, it forms the next logical stage in the UK’s constitutional reform program, which began under Tony Blair in 1997. Blair delivered Scotland’s parliament and assemblies for Northern Ireland and Wales, but the English voted “no” to English assemblies on the basis that this would be too much government to bear.
The argument for delivering devolution through existing rather than new institutions – in this case city regions – has proved far more palatable.
However, it is the economic credentials of the “City Deal” that prove most powerful. The Cameron government believes that larger local government units such as city regions led by elected mayors with new powers will help spread prosperity. This is based on evidence – such as from the independent RSA City Growth Commission – that the areas with the fastest growth and innovation around the world tend to have:
<ul>
<li>
large populations;
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<li>
good connectivity;
</li>
<li>
high skill levels;
</li>
<li>
good infrastructure (including housing);
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<li>
strong higher education institutions; and
</li>
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empowered local leadership.
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The powers that the UK government is devolving to city regions are therefore focused mainly in areas such as transport, business support, infrastructure development and training.
A further economic argument for devolution to cities is that they provide a concentration of population and need. These in turn provide a potential focal point for innovation to foster economic development and improve service delivery and effectiveness.
In part, the argument is that necessity will be the mother of innovation. But there are also arguments that the greater scale of a city region provides fertile conditions for economic development. There is likely to be a greater pool of talent, experience and resources to draw upon.
Working across a larger area can promote more effective services. In many cases outcomes are likely to be better if several services are connected together. That applies, for example, to health and social care, to the various educational, health and social services that engage with families in trouble, and to the various bodies that can help prevent re-offending.
The argument for devolution to cities in England is mostly not about democracy, and more about economic competitiveness and service effectiveness.
<h2>What’s been achieved so far?</h2>
The way the deals have been negotiated reinforces the sense that this is about efficiency more than democracy. Deals have been cut within Whitehall in a top-down approach with various city regions according to their ambition and political clarity.
In most cases, an elected mayor has been added to the mix to provide a fig leaf of democratic legitimacy. But many of the deals have been criticised as a stitch-up between city and national elites with little input from citizens and little prospect of citizen control.
On the other hand, the ad-hoc approach of doing the deals city by city, region by region, means that progress has been rapid. Substantial devolution is occurring.
Although some worry about creating an unequal governance framework, others argue it’s about doing what works for different cities. The pragmatic patchwork program has been deliberately designed such that no two city regions must necessarily have the same deal and level of devolution.
The Greater Manchester City Deal is by far the most advanced but only started this month. So, in truth, it’s too early to say how the deals will work in practice.
<h2>How do City Deals translate to Australia?</h2>
It is easy to see why the “City Deal” concept resonates with the Turnbull agenda. The image of the Australian city region as a centripetal catalyst to economic growth is both in keeping with the gravity of international evidence and the demographic changes articulated in the 2015 Intergenerational Report. This forecast a range of significant productivity problems arising from shifts in demography, workforce and participation.
It also provides a living laboratory for Turnbull’s National Innovation and Science Agenda and, in particular, the work of Data 61 and the Digital Transformation Office.
Most tangibly, it provides an opportunity for Turnbull to connect the government’s agenda to the everyday lives of Australians. This is something the polls suggest he has been unable to achieve so far.
<h2>What would need to change make it happen?</h2>
There are maximalist and minimalist versions of the “City Deal”. The minimalist version would be simply to negotiate a series of Commonwealth-funded programs with states and territories to lubricate the innovation agenda in Australian cities. The maximalist version, required to emulate the UK “City Deal”, would require constitutional change.
Devolution UK-style involves the transfer of power to a lower level, in this case to a local city or city region administration. However, unlike its European and North American counterparts, Australia’s political elite still has a strange, unfathomable disdain for local government – which is not shared by its citizenry.
Most significantly, devolution is not in the gift of Commonwealth government, as local government is a creature of state and (to a lesser extent) territory government. Changing federal powers requires constitutional change.
As Turnbull himself admits:
"It requires a firm commitment to collaboration. Success is dependent on federal, state and local governments agreeing on a set of long‐term goals for cities and the investments, policies and regulatory settings to achieve them."
Is it likely that state governments would cede authority over the jewel in their crown – the state capital? It would be like turkeys voting for Christmas.
The smart money is on the minimalist version even though Australia’s future economic prospects require the courage and ambition of the maximalist version.
Mark Evans is professor of Governance and Director of the Institute for Governance and Policy Analysis and NATSEM, University of Canberra and can be contacted <a href="https://theconversation.com/profiles/mark-evans-97204" target="_blank">here</a>.
Gerry Stoker is fellow and Centenary Professor, Institute for Governance and Policy Analysis, University of Canberra and can be contacted <a href="https://theconversation.com/profiles/gerry-stoker-155351" target="_blank">here</a>.
Both are authors for The Conversation.
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Will Budget 2016 deliver a new deal for Australian cities?

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There’s a chasm-sized gap between perception and reality in Australian real estate.
A recent survey of consumers by MLC found there’s a widespread belief that homes are beyond the grasp of first-time buyers and that future generations won’t be able to afford to buy. That’s the common perception and it comes as no surprise, given that mainstream media keeps banging on about an affordability crisis, amid claims that the dream is dead.
The reality is quite different. As I wrote last week, the latest Affordability Index from the HIA has found that affordability nationally is the best it’s been in over five years and that some parts of Australia have the best level of affordability since 2003. Clearly, Sydney is an exception, although there was improvement in the March Quarter.
Reinforcing that point is the actual activity of first-time buyers. The latest NAB Quarterly Australian Residential Property Survey indicates that 33.5% of sales of new dwellings in the March Quarter were to first-time buyers.
That suggests first-time buyers are the dominant buying force in new properties, having a greater market share than owner-occupiers (other than first-home buyers), Australian investors and foreign investors.
In addition, the NAB survey finds that 26 percent of established dwellings were sold to first-time buyers – also a strong market share, though less than owner-occupiers (other than first-home buyers), who make up 43 percent of the market for established homes.
There’s a stark contrast there is the results of two surveys. The MLC survey found most people think young buyers are being priced out of the market and that 58% believe the next generation will be forced to rent all their lives. But the NAB survey found first-time buyers are out there in force and, in the new-home sector, are dominating the market.
Why so different? It’s because the NAB report was based on a survey of property professionals who are at the coalface daily and know what’s going on. The MLC survey was based on consumers, whose perceptions about what’s going on are influenced by media sound bytes.
Media reportage of real estate is overwhelmingly negative and that’s reflected in the MLC survey results – which are interesting but ultimately worthless because they contradict reality.
Generally, the NAB survey found that industry sentiment improved in the March Quarter, after having fallen for the previous three quarters.
Sentiment was strongest in Victoria. This makes sense, because while the Sydney boom is over, Melbourne still has momentum.
Expectations for price growth are strongest in Victoria. Melbourne and Brisbane are expected to be the best price performers in 2016, while Perth (also not surprising) has the weakest expectations for prices among the capital cities.
The findings for the apartment markets also make sense. Unit prices are expected to fall in Perth (because of a weak economy) and Melbourne (because of oversupply).
The survey found foreign buyers were less of a force in the market – and have switched their focus from NSW and Victoria to Queensland, where foreigners account for 20 percent of sales of new properties.
This reflects the ramping up of marketing of high-rise units in Brisbane and on the Gold Coast, two markets that smart investors will avoid.
 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
 
 
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Sydney boom over, Melbourne has momentum and avoid Brisbane: Terry Ryder

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Adelaide is a rising market for houses, while for units the recovery is only starting, according to valuation firm Herron Todd White's property clock for April 2016. But HTW focuses more on the fringe suburbs of this South Australian city.
Fringe suburbs are those where buyers have usually traded off a central location for price. Examples of fringe suburbs for detached housing in Adelaide are Woodcroft and Happy Valley to the south, Gulfview Heights to the north and Athelstone to the north- east.
Woodcroft
Woodcroft is situated approximately 20 kilometres south of the Adelaide CBD adjacent to the suburbs of Morphett Vale and Reynella East. Accessibility to the suburb has been enhanced since the duplication of the Southern Expressway. There are courtyard style dwellings (circa 1990s) and older style dwellings available in the low $300,000 range which provide a good entry level point for first home buyers. Newer housing and detached housing on larger allotments typically sell in the $450,000 to $600,000 range.
Weekly rents typically range between $300 and $480 depending on overall property features with an average yield of 4.8% (source: realestate.com.au).
<a href="https://www.realestate.com.au/property-house-sa-woodcroft-121248970" target="_blank">9 Tuscany Way, Woodcroft</a> is a 3-bedroom, 1-bathroom courtyard style dwelling on a 352 square metre allotment which recently sold for $307,500. This property is currently listed for rent at a weekly rental of $320 which reflects an initial yield of 5.4%.
<a href="https://www.realestate.com.au/property-house-sa-woodcroft-120619693" target="_blank">8 Topaz Close, Woodcroft</a> is a 3-bedroom, 2-bathroom dwelling on a 556 square metre allotment which recently sold for $360,000. This property is currently listed at $390 per week which reflects an initial yield of 5.6%.
Happy Valley
Happy Valley is situated adjacent to the suburbs of Aberfoyle Park and Reynella East and is approximately 20 kilometres from the Adelaide CBD. There are 1970s and 1980s style detached dwellings available in the low to mid $300,000 range which are entry level properties for first home buyers. Newer housing and renovated housing on larger allotments generally ranges between $450,000 and $650,000.
Weekly rents typically range between $300 and $480 depending on overall property features with an average yield of 4.9% (source: realestate.com.au). There are currently limited dwellings recently sold listed for rent which indicates reasonable demand from owner-occupiers.
Gulfview Heights
Gulfview Heights is 20 kilometres north of the Adelaide CBD and is adjacent to Salisbury East, Wynn Vale and Para Hills. Development comprises 1970s and 1980s dwellings with a section of larger, more modern housing constructed in the late 1990s and early 2000s. Older style housing within the high $200,000 to low $400,000 range is attractive to first home buyers. Newer and more modern housing generally sells in excess of $500,000.
Weekly rents typically range between $300 and $500 depending on overall property features with an average yield of 4.9% (source: realestate.com. au). There are currently limited dwellings in Gulfview Heights which have recently sold that are listed for rent. This indicates reasonable demand from owner- occupiers.
Athelstone
Athelstone is an established north-eastern suburb situated 12 kilometres from the Adelaide CBD. Development comprises predominantly 1970s and 1980s dwellings with sections of increasing infill development. Older style dwellings typically sell within a range of $400,000 to $500,000 with newer dwellings selling in excess of $600,000.
Weekly rents typically range between $300 and $550 depending on overall property features with an average yield of 4.0% (source: realestate.com. au).
4 Kurrajong Avenue is a 3-bedroom, 2-bathroom 1970s Spanish style dwelling on a 715 square metre allotment which recently sold for $520,000. This property is currently listed for rent at a weekly rental of $380 which reflects an initial yield of 3.8%.
Sale example:
The following sales illustrate the difference in price for similar dwellings in Woodcroft compared with the suburb of Unley, a highly regarded area within three kilometres of the Adelaide CBD. 
11 Mildara Close, Woodcroft, sold 4 March 2016 for $337,500
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This property comprises a circa 1993 3-bedroom, 1-bathroom dwelling situated on a 315 square metre allotment with an equivalent area of 138 square metres. The property includes an updated kitchen, single garage (under the main roof) and a rear verandah (source: RP Data). 
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10 Boothby Court, Unley, sold 19 January 2016 for $615,000
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This property comprises a circa 1994 3-bedroom, 1-bathroom semi-detached dwelling situated on a 300 square metre allotment with an equivalent area of 150 square metres. The property includes a single garage (under the main roof) and a rear verandah (source: RP Data). 
A potential purchaser in Woodcroft would be 17 kilometres further from the CBD which is the trade- off for the large reduction in price ($277,500 or 45% difference) compared to the Unley property.
Quality housing in suburbs within 10 kilometres of the CBD continues to experience good demand. Given this, there are more residents moving further from the CBD to seek housing within an affordable price bracket. There is increasing infill development within Athelstone and Happy Valley as well as new development in Woodcroft which is improving the overall appeal of these suburbs. Although further from the CBD, these locations are well serviced with local shopping facilities in good proximity.
These suburbs provide good opportunities for first home buyers seeking detached housing within the $300,000 to $400,000 price bracket. These opportunities are few and far between within close proximity to the CBD with the exception of smaller unit style accommodation. These areas have fairly consistent levels of demand from buyers and tenants alike. The outer northern suburbs (Playford Council area) comprising areas close to Elizabeth and the Holden Manufacturing plant continue to experience negative sentiment with the effects of the imminent closure of the plant in 2017 yet to transpire. 
 
 
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Adelaide fringes are a good buy for FHBs: HTW

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The Bondi hoarder’s house has returned to the market once again with the potential to sell for more than $2 million.
More than 14 months after Mary Bobolas and her daughters Elena and Liana came up with the $180,000 to pay Waverly Council’s cleaning and legal bills, the home is once again being forcibly sold.
A statement from Waverley Council said the family now owes $160,000.
The sad case of <a href="https://www.realestate.com.au/property-house-nsw-bondi-118903099" target="_blank">19 Boonara Ave</a> sees the NSW Sheriff’s Office commissioning Raine &amp; Horne Double Bay agent Ric Serrao to sell the property so that clean-up costs can be recovered on behalf of the council.
The 550 sqm property offers proximity to the beach, cafes, restaurants, shops and public transport.
No inspections of the home are scheduled.
When it was listed in 2015, around 63 contracts were issued, but the Bobolas family managed to come up with the money just hours before last year’s auction.
The property is listed for a May 19 auction.
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Bondi hoarders home back for sale

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The Hobart housing market has been the nation’s weakest performing capital city housing market for more than a decade.
There are now signs that the Hobart (and Tasmania’s) housing market may be in line for a steady improvement.
<a href="/images/2016/04/27/Chart-1-2-580x208.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-1-2-580x208.jpg" alt="">
Over the 12 months to March 2016, home values in Hobart have increased by 4.8 percent while over the past two years values are only 4.5 percent higher highlighting that the value growth performance has been much stronger over the past year relative to the previous year.
The above chart shows the annual change in home values across all capital cities, with Hobart and the combined capital cities highlighted and the other cities in grey.  Although Hobart values have increased over the past year, the recent rise must be put in context, over the past decade home values in Hobart have increased at an annual rate of 1.5 percent with values falling at an annual rate of -0.7 percent over the past five years.  Hobart’s decade growth performance is well behind Perth which has recorded the second lowest annual rate of growth over the period at 3.1 percent.
<a href="/images/2016/04/27/Chart-2-2-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-2-2-580x207.jpg" alt="">
It is interesting to look at the performance of the Hobart housing market in context with the performance of the Melbourne market. The previous chart shows that in 2003 and 2004 home value growth in Hobart surged. The rate of growth reached a peak of 57.9 percent annual growth in November 2003 and very shortly thereafter the growth performance in Hobart stalled and has been limited ever since.
The surge in Hobart dwellings came following a surge in Melbourne home values and at a similar time to which the rate of growth in Melbourne values began to slow.  Ever since the end of the last surge in home values in Hobart, Melbourne has recorded strong rises in home values while growth in Hobart has been minimal.
Melbourne has obviously recently seen a large surge in home values meaning that many home owners have substantial levels of equity in their property. Investment in the Tasmanian housing market which offers much lower home values and superior yields may be looking attractive for those in Melbourne looking for a lifestyle investment.
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While value growth in Hobart is picking up, transaction volumes are relatively steady from where they were at the end of last year and virtually unchanged from a year ago.  In comparison, most other capital city housing markets are actually recording fewer property transactions than they were a year ago.
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Looking at the current market, listings provides one of the best guides about the balance between buyers and sellers.  As listings move lower, buyers have less choice and vendors can be less flexible on their price expectations which can push values higher.  Over the 28 days to 17 April 2016 there were 376 newly advertised properties added to the Hobart housing market and 2,189 total property listings. 
New listings are 1.3 percent higher than they were a year ago and fairly flat over recent weeks.  Meanwhile, total listings are -26.2 percent lower than they were a year ago and as the table shows they are trending lower.  In fact, the number of listings is at its lowest level since October 2010.  With new listings slightly higher than a year ago and total listing much lower it suggests that there is limited new supply coming to the market with increasing demand which is causing total listing volumes to trend much lower.
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One of the main drivers of the surge in Hobart home values in 2003 and 2004 was the positive migration trends for Tasmania.  The above table shows that in 2003 and early 2004 both net overseas and net interstate migration were positive.  The chart also shows that typically there is an outflow of residents of Tasmania to other states and territories while net overseas migration is usually positive.  Over the past few quarters, for the first time in a number of years, net interstate migration to Tasmania has been positive.  It is still early days but should this trend continue over the coming quarters it could be a positive for the Tasmania housing market.
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People will generally only move to a new region if they are reasonably comfortable that they can find employment.  The unemployment rate in Tasmania has ticked up over recent months and job creation has slowed which may act as a deterrent to make the move to a market like Hobart.  However, if we look at 2003 and 2004 when home values were surging and migration to Tasmania was quite strong, job creation was stronger although the unemployment rate was in the high 6% to low 7% range compared to a similar 6.9% currently.  Keep in mind that some people will move to Tasmania and Hobart as a lifestyle choice so they may be able to do their current job remotely or may commute back to the mainland a few days a week / each month.  Furthermore, a proportion of people that move interstate would be retirees and therefore their decision is not reliant upon securing employment.
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Tourism is likely to be a growing source of employment for those living in Tasmania.  According to data from Tourism Research Australia, international visitor numbers to Tasmania increased by 19.6 percent in 2015 and have increased by 53 percent over the past five years. Meanwhile, domestic overnight trips to Tasmania increased by 17.3 percent in 2015 and have increased by 40 percent over the past five years.  Should the ramp-up in tourism continue it will create even more employment opportunities in the local economy.
When you look at the housing and economic indicators for Hobart it looks like the market is well positioned to see an increase in the rate of housing demand and subsequently home values over the coming year.  Of course Hobart also has the advantage of being a substantially more affordable housing market than all of the other capital cities.  Any of these indicators could change and most importantly if job creation picked up pace and the unemployment rate fell it would provide further positives for the local market.  Nevertheless, it looks as if the fundamentals are in place for a long-awaited improvement in value growth for the Hobart housing market.
 Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

Hobart's time to shine: Cameron Kusher

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Other than renting, the most common way to get a roof over your head is to buy a home and live in it. Another way is to buy a home and rent it out, and then rent a similar home (buy, rent, rent). Thanks to the perverse nature of negative gearing, the buy, rent, rent strategy can be cheaper than the most obvious path of home ownership. How?
Consider a first home buyer considering a modest two bedroom, two bathroom unit in Ashfield in Sydney’s inner west for A$600,000.
Assuming the buyer has enough to afford a 20% deposit and initial transaction costs (legal fees and stamp duty, etc.), she may consider buying and living in it, or buying and investing and then renting a similar unit. She is able to borrow 80% of the unit’s value paying interest of 5% p.a (A$24,000 a year). The annual maintenance costs are A$6,000 (or 1%), deductible depreciation expenses are also A$6,000. A similar unit rents for A$450 per week. Her marginal tax rate is 34.5%. What is the cost to buy and live compared with buy, rent, rent?
The first home buyer’s housing cost is A$30,000 per year if she buys and lives in the unit, and A$25,653 per year for buy, rent, rent. This means she saves A$4,347 or 0.72% of the unit price with buy, rent, rent.
The saving is solely due to the negative gearing tax savings effect. The mortgage interest, maintenance and depreciation deductions are tax deductible when investing, but cannot be deducted when living in the unit. Without negative gearing there would be no tax savings and the first home buyer would not consider such a convoluted strategy.
From the calculations, we can also see that the bigger the negative gearing tax savings, the better it is to buy, rent, rent. Buying homes with lower rent, higher maintenance costs and higher depreciation allowances (eg. new developments) and being at a higher marginal tax rate increases the incentives to do so. There is also little incentive to pay off principal in the unit as the negative gearing strategy may be done almost perpetually and any savings invested (or spent) elsewhere.
On the other hand, once the property is positively geared (when net rent exceeds cost of ownership) it no longer becomes cheaper than to buy and live. This can happen if the buyer chooses to pay off the mortgage, earns increased rent or reduces maintenance and depreciation deductions.
When it comes to selling, there may be capital gains tax on the rental property although your own home is capital gains tax exempt. Non-financial factors are that the home buyer may have a preference to live in their own home rather than to rent, despite the buy, rent, rent savings. This may be from the greater flexibility to customise your own home or not having to deal with real estate agents.
Of course, in the example renting still remains the cheapest option, though if home ownership is the goal then with the perversion of negative gearing, buy, rent, rent remains a cost effective choice.
The above scenario is just one of the many ways that negative gearing distorts housing decisions. Those on high marginal tax rates (i.e. high income earners) have incentive to invest in multiple homes. This leads to incentives to borrow excessively to invest as the negative gearing tax savings effectively reduces the ownership costs to investors compared with home owners.
Furthermore this pushes housing prices up due to the increased demand from negative gearing. Compare this to a home owner who requires only one home and is restricted in the amount that they may borrow as they do not earn rent on the home as income.
Another effect is that new homes which tend to be of higher quality are more desirable to investors as they tend to have higher maintenance costs and depreciation deductions which increases tax savings. Home owners on the other other hand are unable to deduct such costs thereby making ownership of new homes more costly than to investors.
The sooner that negative gearing is removed, the quicker simple buying and living can be the norm.
This article is for educational purposes only and does not constitute financial or taxation advice.
Adrian Lee is senior lecturer in Finance, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/adrian-lee-94688" target="_blank">here</a>.
 
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Buy, rent, or do both: the perversion of negative gearing

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GUEST OBSERVER
Contrary to what’s been broadly reported over the last few years, Melbourne’s over-supply concerns are not contained to its well documented CBD apartment market. Our supply heat map illustrates that almost the entire fifteen kilometre Melbourne ring has excess supply in the pipeline.
For the ten (10) year period to the end of 2011, there were 35,226 new dwellings approved in Greater-Melbourne each year. Greater-Melbourne building approvals (housing supply) for the last two financial years is averaging 53,690 dwellings per annum.
Greater-Melbourne’s population has grown by 182,538 people over the last two years [ABS]. This equates to underlining housing demand of 70,207 dwellings, or 35,103 per annum. Basic mathematics suggests that the current housing supply-demand pipeline has a surplus of 37,174 dwellings. If every approved dwelling was constructed this is a big enough surplus to accommodate an entire city the size of Ballarat.
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<img src="/images/2016/04/20/A_Melbourne_Supply_HeatMap-watermark.jpg" alt="">
There has been a distinct trend towards more apartments, with attached dwellings representing fifty-six per cent (56 percent) of all building approvals over the last four (4) years, up from the thirty-five per cent (35 percent) ten year average. 
Melbourne City is on track to approving 19,000 CBD apartments over the last three years; this is an increase of 158 percent on the annual average from the previous five years. The Melbourne LGA population growth is just shy of 6,000 people per annum and equates to demand for 3,000 extra dwellings compared to the recent average annual supply of 6,300 CBD dwellings. Houston, we have a (big) problem!
Sixteen (16) out of Greater-Melbourne’s thirty-one (31) LGA’s have approved more than fifty percent more dwellings than normal, even though Melbourne’s population growth rate has remained relatively the same.
Recent average annual rates of supply have more than doubled the long-term average in the LGA’s of Darebin, Glen Eira, Manningham, Maribyrnong, Stonnington and Yarra. And, between 50 percent and 100 percent increases in building approvals are unfolding in the LGA’s of Banyule, Bayside, Boroondara, Greater-Dandenong, Hume, Knox, Maroondah, Moonee Valley, Moreland and Port Phillip.
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<img src="/images/2016/04/27/Screen%20Shot%202016-04-27%20at%209.29.26%20AM.png" alt="">
Simon Pressley is Managing Director of Propertyology, a REIA Hall Of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. <a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank">Propertyology works exclusively with property investors</a> to purchase properties in strategically chosen locations all over Australia.
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