Sydney developer <a href="https://www.apartments.com.au/new-apartments/31-41-o-hara-street-marrickville-nsw-2204">Third.i</a>&nbsp;has announced a new transport-oriented development in one of Sydney Inner West’s most sought-after metropolitan locations, delivering much needed housing within steps of world-class public transport and vibrant village life.

Located at&nbsp;31-41 O’Hara St,&nbsp;Marrickville, the proposed mixed-use development will include around 300 apartments, with up to 17 per cent dedicated to affordable housing, reinforcing Third.i’s commitment to creating inclusive, well-connected communities that support a diverse mix of residents who keep Sydney’s neighbourhoods thriving.

Located just 100 metres from the new Metro station, the development places residents within minutes of the CBD while offering seamless access to the Inner West’s cafés, retail, and local services. Anchored within a thriving local centre, the project supports everyday living without reliance on cars, while also delivering new public open space for the local community, including a new park and landscaped green areas, alongside high-quality private resident amenities.

Florian Caillon, Head of Acquisitions for Third.i Group, said the project builds on the company’s ongoing work alongside the NSW Government to deliver housing and amenity alongside major transport infrastructure. Amenity includes an activated pedestrianise retail strip that connects Illawarra Road down to the pocket park, and health and wellness facilities.&nbsp;

“Delivering housing of this scale within an established village is a rare opportunity, and few companies have achieved residential outcomes of this size at a village centre," Caillon said.

"We are excited to set a new standard for urban living in the heart of Marrickville,” he said.&nbsp;

The inclusion of affordable housing has been welcomed by frontline workers.

“We are supportive of developments which will allow essential workers like nurses, midwives and carers, the opportunity to live in the communities they care for," said&nbsp;Michael Whaites, General Secretary of the NSW Nurses and Midwives’ Association..

“Many healthcare workers tell us they would like to live closer to where they work, but are being priced out of the market, forcing them to move further away.&nbsp;

“Dedicated apartments for essential workers will support recruitment and retention in local hospitals and aged care facilities, helping to strengthen our health system.”

The project has been declared State Significant Development (SSD) by the Housing Delivery Authority (HDA).

Joel Robinson

Third.i to deliver 300 apartments in Marrickville TOD precinct

A luxury half floor penthouse intended to be retained by Queensland developer <a href="https://www.apartments.com.au/developers/qm-properties">QM Properties</a> has hit the market as the final residence within <a href="https://www.apartments.com.au/buildings/160-macquarie-160-macquarie-street-st-lucia-qld-4067">160 Macquarie</a> apartment development, an exclusive enclave of just 33 premium apartments located on St Lucia’s riverfront.&nbsp;

The 14-storey building, <a href="https://www.apartments.com.au/developments/st-lucia-qld-4067">St Lucia</a>’s first riverfront development to be completed in over a decade, smashed the suburb record in 2024 with a 12th storey, half-floor residence selling for $6.29 million, nearly $1.5 million higher than the previous highest sale of $4.8 million in 2020. &nbsp;

[smartcode_project:default project_id=25721 project_image_fid=299769]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Residential Director, Andrew Roubicek sold three apartments within the recently completed development in 2025 and 2026 realising increases in value averaging 65 per cent compared to the original prices of the apartments sold off-the-plan.

Andrew said these sales underscored the unparalleled desirability of 160 Macquarie, located on the riverfront in one of Brisbane’s most sought after suburbs, to the local downsizer market. &nbsp;

“Most of the residents in 160 Macquarie are like-minded western suburbs people, downsizing from large homes and attracted to the design, size and expansive aspects across the river and northeast views towards the Brisbane city skyline," Roubicek said.

“Residents of 160 Macquarie also enjoy exclusive access to a rooftop sanctuary that features a range &nbsp;of lounge and dining areas with uninterrupted panoramic views. The state-of-the-art private pool, nestled beside the Brisbane River, further enhances the luxurious lifestyle on offer."

[smartcode_project:default project_id=25721 project_image_fid=299764]

This demand for high quality, riverside residences has prompted QM Properties to release the final &nbsp;half floor penthouse, previously intended to be retained by the company, which has never been occupied. &nbsp;

The brand-new luxury 246 sqm sub-penthouse, designed by&nbsp;<a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>,&nbsp;has three bedrooms, 3.5 bathrooms, a master with walk-in robe including make-up bench and ensuite with freestanding bath, open plan living and dining, built in bar and wine display, three side-by-side carparks, and an entertainers balcony with uninterrupted, never to be built out views of both the Brisbane CBD &amp; Mount Cootha.&nbsp;

[smartcode_project_cta:default project_id=25721]

QM Properties have released the final half floor penthouse at 160 Macquarie, St Lucia’s first riverfront development in over a decade  

Final luxury penthouse released following 65% uplift in values at 160 Macquarie, St Lucia

<a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> may sit just south of Melbourne’s officially designated Bayside suburbs, but this small coastal pocket offers all the hallmarks of its neighbouring areas, at a considerably lower entry point to the property market.

Trains, beaches, dog parks and retail, the pillars of any Bayside lifestyle, are all thriving in Parkdale. It was these four factors, combined with a clear undersupply of new apartment developments, that drew boutique Bayside developer Lowe Living to the suburb around five years ago.

The group secured a site on Como Parade East, where it launched, and has now almost sold out, <a href="https://www.apartments.com.au/new-apartments/kallara-house-parkdale-by-lowe-living-129-137-como-parade-east-parkdale-vic-3195">Kallara House</a>.

Now, Lowe Living has returned to Parkdale, this time with <a href="https://www.apartments.com.au/new-apartments/elanora-place-parkdale-152-como-parade-west-parkdale-vic-3195">Elanora Place</a> on Como Parade West, just a few minutes’ walk from the water.

[smartcode_project:default project_id=148731 project_image_fid=364174]

Designed by Jackson Clements Burrows, Elanora Place will comprise 40 two- and three-bedroom apartments.

While “large-scale” is a term often overused in project marketing, the residences at Elanora Place genuinely live up to the label. Entry-level two-bedroom apartments, priced from $1.15 million, span nearly 115 sqm. Larger two-bedroom configurations, including ground-floor residences with courtyards, exceed 150 sqm, while three-bedroom homes range from 180 sqm to more than 220 sqm. These are priced between $1.75 million and $1.815 million.

A select number of residences also feature EV charging stations within private two-car garages.

[smartcode_project:default project_id=148731 project_image_fid=364176]

The design of Elanora—translated as “a home by the sea”—draws on Parkdale’s architectural legacy and bayside charm, with careful consideration given to scale, materiality and local character, according to Jackson Clements Burrows.

Resident amenity has been curated to foster a sense of community, with a rooftop terrace offering sweeping bay views, built-in barbecue areas, and tranquil garden retreats designed to bring neighbours together in a relaxed coastal setting.

Construction of the low-rise development is already underway, led by Lowe Living’s in-house arm, Lowe Construction, with completion anticipated in early 2027.

[smartcode_project_cta:default project_id=148731]

Lowe Living continues Parkdale preference with Elanora Place apartments

<a href="https://www.apartments.com.au/developers/bpg-developments">BPG Developments</a>’ Palm Beach project Liérre has raced to 35 per cent sold within its first two months on the market, as the Queensland builder-developer prepares to start construction in the coming two months.&nbsp;

The momentum adds to a strong early response for the Jefferson Lane address, which recently secured development approval for the $165 million beachfront-adjacent scheme.

[smartcode_project:default project_id=149551 project_image_fid=364569]

Planned for a 1,733 sqm amalgamated site on the beach side of Gold Coast Highway,&nbsp;<a href="https://www.apartments.com.au/developers/bpg-developments">Liérre</a> will deliver 58 apartments, three townhouses and eight penthouses, bringing a scaled residential offering to one of the Gold Coast’s most in-demand coastal suburbs. The project is one block back from the beach, a position that has helped shape both its design approach and buyer appeal.

BPG Developments Co-founder Nick Parr said the project reflects the next stage of Palm Beach’s evolution. “<a href="https://www.apartments.com.au/developers/bpg-developments">Liérre</a> reflects the next phase in Palm Beach’s evolution as one of the Gold Coast’s most sought-after residential markets,” Parr said.&nbsp;

“Our vision was to deliver a project of enduring quality, one that responds to its beachfront location through thoughtful design and functionality.” He said BPG’s integrated builder-developer model gives the team greater control over quality, timelines and outcomes.

&nbsp;

[smartcode_project:default project_id=149551 project_image_fid=364572]

Designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, <a href="https://www.apartments.com.au/developers/bpg-developments">Liérre</a> draws on Palm Beach’s coastal character through what the architect describes as a calm, finely detailed response to the shoreline setting. The palette leans into raw, earthy tones such as blush and rust, paired with travertine finishes, soft curves and organic forms.&nbsp;

Plus Studio Principal Chrisney Formosa said the building was “sculpted from the rhythm of the coast,” with a shell-inspired form and sand-hued facade intended to support Palm Beach’s emergence as a design-led beachfront neighbourhood.

Residents will also have access to a substantial wellness offering, including a gym, sauna, spa, outdoor shower, and an amenities deck with pool, cabanas, sunbeds and landscaping throughout.

&nbsp;

[smartcode_project:default project_id=149551 project_image_fid=364581]

<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> has continued to attract attention from both developers and buyers as the southern Gold Coast tightens in supply.

MOTIV Founder Carly Cottam said the suburb was the fourth most searched on the Gold Coast for property, citing its community feel and proximity to beaches and dining. She said Lierre would appeal to buyers seeking a luxury address at a relatively attainable price point, particularly given the rarity of a site just one block back from the beach.

[smartcode_project:default project_id=149551 project_image_fid=364576]

For BPG, <a href="https://www.apartments.com.au/developers/bpg-developments">Liérre</a> is also part of a broader period of growth. The approval followed another recent green light for the developer’s $250 million Newstead project, taking its pipeline to around $500 million across Brisbane and the Gold Coast.

Co-founder Glen Williams said Palm Beach embodied the company’s focus on refined design, craftsmanship and long-term value over volume.

[smartcode_project_cta:default project_id=149551]

BPG’s Palm Beach project Liérre races to 35 per cent sold as construction commencement nears

Melbourne developer <a href="https://www.apartments.com.au/developers/pdg-corporation">PDG</a>&nbsp;has commenced early works on its $1.5 billion One Queens Bridge development, reviving a Southbank site that has remained dormant for more than a decade.

Located on one of Melbourne’s most significant riverfront sites, the project, to be known as No.1 Queens Bridge, will deliver a 71-level mixed-use tower comprising 588 residences and a hotel, complemented by dining and wellness offerings overlooking the Yarra River.

Originally constructed in the mid-1800s, the Queens Bridge Hotel will form a central part of the development, with PDG embracing and elevating the historic pub as a key arrival point into the precinct. The landmark building will anchor a new hospitality and dining offering, including a rooftop bar, a grand atrium entry, and a proposed global luxury boutique hotel integrated into the podium levels.

Crafted by internationally renowned design studio <a href="https://www.apartments.com.au/architects/cox-architecture">COX</a>, in collaboration with ODO and PDG, the project draws inspiration from its riverfront setting. The architecture explores the movement and fluidity of the Yarra River, expressed through a sculptural facade composed of six vertical pleats extending the full height of the 71-storey tower.

The pleated form creates a distinctive three-dimensional expression that captures and reflects Melbourne’s changing light throughout the day, adding a dynamic presence to the city skyline.

Residents will have access to more than 5,500 sqm of amenities across multiple levels, creating an “urban village in the sky” that redefines how people live across generations.

PDG Founder and Managing Director Vince Giuliano said the project represents a major milestone for both the site and Melbourne’s next wave of city-shaping developments.

“This project marks the revival of one of Melbourne’s most prominent riverfront sites and the beginning of a new chapter for Southbank," Giuliano said.

"For more than 15 years, the site has remained dormant, and the recent commencement of demolition on site is a powerful signal of our confidence in Melbourne’s future and in PDG’s ability to deliver a project of this scale and quality."

Giuliano says&nbsp;No.1 Queens Bridge has been designed to deliver something truly exceptional for Melbourne, an address that brings together heritage, architecture, hospitality and residential living in a way the city hasn’t experienced for many years."

PDG purchased the 5,059 sqm site at 1–29 Queens Bridge Street in December 2024. Plans for No.1 Queens Bridge are currently before the Department of Transport and Planning, with sales due to launch in the coming months.

PDG kicks off early works on $1.5 billion Southbank tower No.1 Queens Bridge

Treasurer

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The Assistant Federal Treasurer Josh Frydenberg says he has been troubled by stories of property spruikers pushing people to set up an SMSF so they could borrow against their retirement savings to make speculative property investments. 
However he said such events were the exception rather than the rule so he has given the strongest signal yet that the Abbott Government will not implement a recommendation to ban do-it-yourself super funds from borrowing to invest in property.
"In the final report of the financial system inquiry, which the government commissioned David Murray to prepare, he recommended a complete ban on limited recourse borrowing arrangements in SMSFs," Assistant Treasurer Josh Frydenberg said on Friday as reported by Fairfax Media from the Tax Institute annual superannuation conference in Sydney.  
"I want to emphasise that we have been considering this recommendation very carefully but flag that we want to make sure the approach we take is proportionate to the risks that have been identified."
"To put it in context only 0.07%, perhaps 6,500 properties, were held in an SMSF through a limited recourse borrowing arrangement in 2013," he said.
"David Murray highlighted the risks associated with increased leverage in the financial system. Increased leverage always represents a risk and we recognise that. The government also recognises that most SMSFs do the right thing". 
Tightening the rules around how SMSFs can borrow to invest, instead of placing an outright ban on the practice, remained "under consideration", he said.
Asked whether he thought targeting action against property spruikers was a better solution than limiting the SMSF borrowing rules Josh Frydenberg said that was certainly an option.
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jchancellor-FAypfDUnLy

No borrowing ban likely for SMSF: Josh Frydenberg suggestion

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EXPERT OBSERVATION
In the months following the election I have given careful consideration to the current Statement on the Conduct of Monetary Policy. The Statement records the common understanding of the Government and the Governor of the Reserve Bank on the key aspects of Australia’s monetary policy framework.
The Statement has been issued seven times since 1996 and was last issued in September 2016 with the commencement of Philip Lowe as RBA Governor. During that time, changes to the Statement have typically coincided with either a change of Government or the appointment of a new RBA Governor.
Following careful consideration and consultation between Treasury and the RBA I have concluded that the existing statement is consistent with the Government’s and the RBA’s shared understanding of our monetary policy framework. Not changing the statement provides continuity and consistency at this time of global economic uncertainty. Domestic and global markets can be reassured that Australia remains a stable and predictable place to invest and do business with a proven and effective monetary policy framework.
As I have said on a number of occasions, the current inflation targeting approach has served Australia well, helping underpin our record 28 consecutive years of economic growth.
While inflation has been below the 2-3 per cent band for some time, I recognise that Australia is not alone in experiencing an extended period of low inflation, low unemployment and low interest rates. Over the medium term, inflation is expected to return to the band, consistent with the Statement.
JOSH FRYDENBERG is the Austrlian Treasurer
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j.ballantyne1990-6AQqhLzZaK

Inflation target kept intact in statement on the conduct of monetary policy: Josh Frydenberg

13 economists backed the RBA governor over the treasurer to fix things: Peter Martin

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Treasurer Josh Frydenberg has expressed a fear that "hard-working families" trying to get a housing loan have been hit by regulators being too stringent in enforcing responsible lending rules.
Frydenberg has welcomed the small rise in capital city housing prices, citing Treasury research that a 10 per cent increase in house prices could boost GDP by 0.5 per cent.
Treasurer Josh Frydenberg has pushed back against regulators being too stringent in enforcing responsible lending rules, warning that this could penalise "hard-working families" trying to get a housing loan and hurt the economy.
"It's vitally important that the housing market remains strong," he said.
"To date, ASIC  has adopted a principles-based and scalable approach. This has allowed flexibility for lenders to appropriately take into account the facts and circumstances of each case and vary the degree of inquiry and verification depending on the customer risk involved."
"Common sense dictates that a sensible balance needs to be struck because an unduly restrictive application of these obligations can do as much harm as an overly lax one. Clearly, the risk that the provision of credit may cause substantial hardship to some should not result in a significantly reduced ability to access credit by the vast majority of borrowers," the Treasurer added. 
After his speech to The Australian Financial Review's Property Summit in Sydney on Thursday, Frydenberg said he expects any further rate cuts to be passed on.
The banking industry has also warned that the flow of credit to key sectors like first-home buyers and small and medium-sized businesses could be disrupted if APRA proceeds with capital reforms that are more stringent than international standards.
The Australian Banking Association says any additional capital required that was in excess of the Basel III requirements would be “detrimental” to the domestic economy.
The so-called Basel III rules are part of a package of measures introduced after the global financial crisis aimed at making banks stronger. 
“At present, Australian economic growth is weak and any further impediments to lending such as increased capital requirements, combined with disadvantages in international markets, will have a further negative impact on economic growth when they come into effect,” the ABA says in a submission to the prudential regulator’s review of the capital framework for banks.
 
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Responsible home loan lending rules don't need to be overly stringent: Treasurer Josh Frydenberg

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Prime Minister Morrison and Treasurer Frydenberg will do their best to leave the cupboard bare next Tuesday while still delivering a budget surplus in 2019-20. 
It has been just over three months since the <a href="https://theconversation.com/myefo-reveals-billions-more-in-revenue-9-billion-in-fresh-election-tax-cuts-108889" target="_blank">December budget update</a> but once again the government has been gifted a windfall of unexpected revenues, despite a raft of economic data suggesting the economy has slowed its rate of growth.
This is because the things that really matter to the budget have all done better than was expected by the Treasury just months ago. Strong conditions in commodity markets and lower unemployment mean that in the current financial year the budget bottom line will be about A$3 billion better than had been expected in December, and about A$12 billion better next financial year.
Since the last budget only last May, the outlook for 2018-19 has improved by A$12.3 billion and the outlook for 2019-20 by $13.8 billion.
<h2>Going up</h2>
Rising commodity prices and export volumes have pushed up the profits and tax bills of mining companies.
Iron ore is the standout. Prices have exceeded the Treasury’s December forecast on the back of lower international supply (a result of the tragic dam wall collapse in Brazil) and continued growth in demand from China.
In December, Treasury expected iron ore prices to average US$55 a tonne. But in fact they have averaged about US$75 a tonne. That alone will add about A$2 billion to government revenues in 2018-19 and, if maintained, A$6 billion in 2019-20.
Add in a weaker Australian dollar and the combined effect will account for almost half of the net improvement in the overall budget position this financial year and the next.
Iron ore is only one of our exports.
Coal prices have also exceeded expectations, which should add another A$1 billion to A$1.5 billion to revenue over the next two years.
And there’s more to it than mining. Corporate profits have generally been strong despite some storm clouds forming around the banking industry and the economy more generally.
Another thing driving the better budget starting point is strong jobs growth and a lower than expected unemployment rate, boosting the government’s financial position through lower unemployment benefits and a higher personal tax take. The February employment statistics showed an unemployment rate of 4.9%.
The Treasury had expected the rate to fall more slowly, only getting to 5% by June and then staying there for several years.
If the budget cupboard was untouched, which it won’t be, the budget would have a deficit of next to nothing this financial year and an impressive surplus as high as 1% of gross domestic product next year, a year ahead of the government’s schedule.
<h2>But it mightn’t last</h2>
These upside surprises from the corporate tax take can just as quickly go the other way.
Assuming they will last, as budgets often do, would be to make the same mistake as the Howard-Costello government, which made permanent changes to tax rates and commitments on the back of revenue that prove to be temporary. So did the Gillard-Swan government some years later with its “spreading the benefits of the boom” package.
Corporate profits might struggle to improve in future years in an increasingly difficult economic environment. No one knows what will happen with commodity prices. Right now China is using infrastructure spending to stimulate its economy, but it won’t always do that. Eventually its growth will be less metal-intensive.
But with the government well behind in the polls, I doubt these considerations are getting much attention.
<h2>China drives budgets, the US drives rates</h2>
The US economy sets the global price of money, which in turn determines the environment in which our Reserve Bank sets Australian interest rates and works out how to deal with the bursting of the housing bubble, which was itself in no small part the result of an easy US monetary policy in the wake of the global financial crisis.
China, on the other hand, determines the global price of commodities and trade flows and so helps determine corporate profitability in Australia.
This contrast between the two has never been greater, with the government flush with unexpected revenues while the Reserve Bank walks a knife-edge of low real economic growth, financial stability risks, and already easy monetary policy.
It is best summed up in this chart of real and nominal gross domestic product, which shows annual growth in real GDP (which affects the economy) slowing to 2.3% while growth in nominal GDP (which drives the dollars flowing into the Treasury) growth climbing to more than 5%.
<hr>
<a href="https://images.theconversation.com/files/265512/original/file-20190325-36276-1r5rog7.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/265512/original/file-20190325-36276-1r5rog7.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""> </a>SOURCE: <a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0" target="_blank">ABS National Accounts</a>
Looking beyond this budget, the major risk for the Australian economy is a retrenchment of consumer spending on the back of falling house prices and tighter credit conditions.
The national accounts suggest it has already started.
The worry is that domestic spending, which is dominated by consumer spending, will weaken to the point at which it forces businesses to shelve hiring and investment plans, pushing unemployment back up.
A vicious cycle could result in some type of recession.
How can the government and the Reserve Bank try to control these risks?
One way would be to do what they have always done and cut interest rates in an attempt to boost household and business cash flows.
Another would be to take some of the free cash being generated by China and use it to boost domestic demand through temporary arrangements that help the economy ride out the adjustment to lower house prices.
It could be done in many forms including tax cuts and targeted cash injections into low and middle income households.
<h2>Expect extra and earlier tax cuts</h2>
The government has known about the much better revenue position for months.
To date it has displayed incredible restraint in spending it.
New policy announcements since the December update have been limited to about A$500 billion a year, which isn’t bad for a government facing an election wipeout before winter.
But it would be wise not to get too glowing about its restraint.
Instead we should expect a cascade of policy announcements culminating in a major tax cut to be revealed on budget night next Tuesday.
The government has a A$12 billion war chest.
It is most likely to spend it in the form of tax cuts, most likely by bringing forward the second stage of the already announced cuts due to take effect in July 2022.
That would mean lifting the ceiling for the 32.5% tax rate from A$90,000 to A$120,000 and lifting the ceiling for the 19% rate from A$37,000 to A$41,000.
Bringing forward those already legislated tax cuts by three years to July 2019 would cost the budget less than A$10 billion a year and still leave room for a surplus in 2019-20 and room for targeted election pork barrelling.
With the government so far behind in the polls there is virtually zero chance this extra income will be saved for a rainy day. Although the Coalition’s chances of re-election are remote, Prime Minister Scott Morrison is an optimist who might think a surge of generosity and a few lucky breaks could get him over the line.
The more likely possibility of an election loss means Morrison will want to keep the incoming government’s cupboard as bare as he can. This means keeping the budget surpluses small so that if the Labor Party wants to go on a spending spree, it will have to renege on his promised tax cuts.
The good news is that whatever the government does in the budget and no matter what party forms the next government, the budget position is all but back in balance.
It will hold us in good stead should the global economy run into trouble.
It will be all the more needed if the Reserve Bank pushes interest rates below 1% over the coming year, leaving it little room to cut further.<img src="https://counter.theconversation.com/content/113727/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/warren-hogan-530397" target="_blank">Warren Hogan</a>, Industry Professor, <a href="http://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/expect-tax-cuts-and-an-emptying-of-the-cupboards-in-a-budget-cleanout-as-the-billions-roll-in-113727" target="_blank">original article</a>.
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jrobinson-rf4aSBido9

Expect tax cuts and an emptying of the cupboards in a budget cleanout as the billions roll in

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In its submission to the House of Representatives Standing Committee on Economics Inquiry into Home Ownership in Australia, the Department of the Treasury reminds that state and territory governments have the primarily responsibility in housing supply. Removing regulatory impediments, land use and housing infrastructure policies is what improving housing supply is about.
"Reform addressing states and territories’ planning and land supply policies is not a new area of work. The Productivity Commission Inquiry into First Home Ownership in 2004 noted the need for state and territory governments to have appropriate land release strategies in place and to improve the efficiency and effectiveness of planning and development policies. 
"Reform in this area has also been attempted previously. In July 2012, the Council of Australian Governments committed to the recommendations of the Housing Supply and Affordability Report (HSAR), which included improving planning, development and rezoning processes, and the release of land."
The demand for housing has increased along with the population. On the other hand, dwellings completion have not followed the population growth and remained constant over the past 15 years. The insufficient housing supply appears to have driven the increase in the dwelling prices.
"Housing is the largest asset class owned by Australian households, and is therefore a key driver of saving decisions. 
"Home ownership rates are relatively uniform across Australia with the exception of the Northern Territory. South Australia recorded the highest home ownership rate in Australia at 72.3%, with Northern Territory recording the lowest rate at 53.2%. 
"Home ownership rates in Australia are higher than comparable countries like the United States, United Kingdom, and New Zealand and a little below Canada. Rates of home ownership in some countries, such as Germany, are considerably lower."
"Dwelling investment accounts for around 5.5% of GDP in Australia. However, it has been highly cyclical in the past and has had significant impacts on GDP growth. 
"Between 2002 and 2012 there were two periods of strong increases in dwelling prices with price growth peaking in late 2007 and early 2010, but the supply response was muted compared with past cycles. 
"The number of building approvals for dwellings rose 17.6 per cent through the year to May 2015, implying a large stock of work yet to be completed. Reflecting the pipeline of work pending, the 2015-16 Budget forecasts dwelling investment to grow by 6 1⁄2% in 2015-16 and 41⁄2% in 2016-17. Dwelling construction is expected to directly contribute 0.3 percentage points to growth in both 2014-15 and 2015-16. 
"While construction is growing more rapidly in New South Wales than Victoria, Victorian construction is starting from a higher level, so the supply of new dwellings has been higher in that state over the past decade 
"Data suggest that there is still significant scope to increase the total supply of housing. National rental vacancy rates have been rising slowly since 2007 but remain low at 2.7% in the March quarter of 2015, well below the previous peak of 4.7% in 2002 
"Despite this, rental yields are low by historical standards. Net rental yields for three bedroom homes have fluctuated between 3.2% and 3.5% since late 2009 and are currently 3.3%. Low rental yields are a consequence of house price growth, which has outstripped growth in rents for most of the past two decades. 
"Rental yield is the average across Australian capital cities and is calculated by dividing net annual rental income by the median price. It does not take capital growth into account.
"National dwelling prices rose by 9.8% over the year to June 2015, a little below the peak reached in the middle of 2014.
"Price growth has been concentrated in Sydney and to a lesser extent, Melbourne. Dwelling prices in Sydney grew 16.2% in the year to June 2015, and by 10.2% in Melbourne." 
"In Sydney, price growth in the year to May 2015 varies between 9.3% in the Eastern Suburbs and 20.7% in Outer South Western Sydney. Of the 14 subdivisions that cover Sydney, price growth is stable or moderating in 10. 
"Melbourne price growth in the year to May 2015 varies between -0.2 per cent in Melton-Wyndham and 17.7% in Eastern Middle Melbourne, but 11 of the 16 subdivisions are experiencing growth between 3.3% and 6.8%. The majority of subdivisions in Melbourne have had steady price growth at current levels for the past year." 
Distribution of Home Ownership 
"The home ownership rate among households headed by a person aged 25 to 34 has fallen from 52.2% in 1995-96 to 42.0% in 2011-12, while for households led by a person aged 35 to 44, the rate has fallen from 72.9% to 62.1% over the same period. Ownership rates have been steadier for older age cohorts.  
"The proportion of loans being approved to first home buyers' is currently around 15%.This is slightly below the average over the past five years of 17.0%, and below the average of 21.6% in the second half of the 1990s. 
"The number of Australians buying a home for the first time has averaged around 4 per 1,000 people over the past five years, compared with around 5 per 1,000 people in the second half of the 1990s. 
"The two key factors influencing the purchase of a first home are savings for a deposit and having sufficient income to service a mortgage. 
"Since 2000, investors have generally accounted for between 30 and 40% of all housing finance approvals. However, during periods of strong price growth, investors tend to represent a larger proportion of financing, particularly in New South Wales."
Long-term macroeconomic drivers 
"Over the past 20 years annual net overseas migration has contributed between 0.3% and 1.5% to annual population growth. Net overseas migration grew strongly between 2006 and 2008 with the contribution of net arrivals peaking at 1.5% in 2008. 
"Net migration contributed 0.8% to annual population growth in the year to the December quarter 2014. Annual population growth rose above 1.3% for the first time since 1991 in 2006 and has remained above this level. 
"During the 1980s and 1990s migration flowed out of New South Wales and Victoria and into Queensland. The outflow from Victoria reversed in the mid-1990s, while the outflow from New South Wales intensified around 2001. Net interstate migration to Queensland has fallen from around 37,000 in 2002 to 6,000 in the most recent year (up to the December quarter 2014). 
"Net interstate migration to South Australia has been negative for most of the past 30 years. Western Australia has generally experienced inward interstate migration, although this flow fell sharply over the past two years and has been negative over the 3 quarters to December 2014, reflecting developments in the resources sector. 
"Overall, the rate of interstate migration in Australia has typically had a smaller influence on state populations than either natural increase or overseas migration. 
"Since 2001 the average size of households has remained steady at 2.6 people indicating a slowdown in the rate of household formation. 
"The long-term supply of dwellings in Australia is determined by the availability of land and redevelopment opportunities and the underlying capacity of the construction sector. 
"Data on the availability of land suggest that residential land releases have been declining over the past 15 years. This is consistent with a greater focus on the redevelopment of land closer to city centres, but also highlights the lack of growth centres outside of capital cities, with land release declining faster in regional areas."
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Treasury's submission to Aussie home ownership

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Sydney property prices have attracted the attention of the BBC, the British broadcaster, given their reaching the A$1m mark for the house median according to the Domain Group.
The article loses weight in conversion of course, €$736,000,and £471,000.
Melbourne - the next most-expensive city in the June conversion - was noted for being at A$668,030 (€$492,000, £315,000).
The occurance was referenced to <a href="/news/sydneys-1-million-house-median-arrives-326-days-early">international city price comparisons by the local Sydney press</a>.
They reported the Australian Treasurer Joe Hockey said the Federal government was willing to work with the New South Wales government to address what he described as a housing "supply logjam".
"The demand is extraordinary for Sydney so the response has to be to increase the supply of housing," Mr Hockey told reporters on Thursday.
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Sydney's $1 million median becomes international point of interest

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The former federal treasurer Peter Costello has said negative gearing isn’t causing property prices to go up; "what is causing that is interest rates,” he told a Women in Banking and ­Finance luncheon in Melbourne last week.
“When interest rates fall, property prices have to go up ... The quickest way to bring down property prices is to double the interest rate. I don’t think we should change the rule that allows you to deduct borrowing costs for any business, including the business of rentals if you want to go into that business.
“And I don’t think that is the answer to property ­prices if you think there is a ­problem.’’
Mr Costello also said he remained comfortable with the local banks’ exposure to the property market, The Australian reported.
“The default rate in Australia is very low by international standards,” he said.
“The one thing your little Aussie battler will do is hold onto their house. Sell the dog, the kids, but hold onto the house, which means the banks have not been the subject of big defaults.
“Do I see waves of household defaults? No I don’t actually. The banks are probably going to be asked to put in more capital and their risk weighting will be increased. That won’t turn the banks from being big profit-makers to loss-makers.’’
Mr Costello said he continued to support a broadening of the base of the GST. 
“The bigger question to me is: don’t ask me about broadening the base, tell me where you are going to spend the money."
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