Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Western Australia

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The stamp duty exemption threshold for West Australian first home buyers has been cut from $500,000 to $430,000 in the state’s 2014 budget.
From July 1, those purchasing established properties priced under $430,000 will receive a full stamp duty exemption. Concessions will phase out progressively for purchases between $430,000 and $530,000. Previously, first home buyers still received some stamp duty concession for properties priced up to $600,000.
No changes have been made to stamp duty concessions for first home buyers of new house and land packages. If the vacant land is valued under $300,000, the first home buyer will not be required to pay any stamp duty. Purchasers of land priced up to $400,000 will be eligible for some form of stamp duty concession.
The Barnett government’s 2014 budget papers claim that stamp duty concessions for West Australian first home buyers are still relatively generous, with only Queensland first home buyers paying less duty on the purchase of a $450,000 established home.
The government has also announced a 10% increase in land tax across the board.
The lowered stamp duty concessions are forecast to save the government $222 million in the four years to 2017-18.
In last year’s budget, the West Australian government cut the First Home Owners Grant for established properties from $7000 to $3000. The grant has remained unchanged in this year’s budget. First home buyers of properties valued up to $750,000 are eligible for the $3000 grant for established properties and $10,000 grant for new properties. The $750,000 threshold is pushed up to $1,000,000 for those purchasing properties above the 26th parallel (around Shark Bay).
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Western Australia’s 2014 budget: First home buyer stamp duty concessions cut

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The Barnett government has increased land tax by 10% across the board amidst slowing revenue growth.
As the state’s property market softens along with its labour market, the government has turned to land tax to offset the state’s declining revenues. The increase in land taxes is forecast to raise an additional $72 million in 2014-15 and $334 million over the four years to 2017-18. Land tax is expected to bring in a total of $752 million for the state this year, and is estimated to bring $1.01 billion in revenue in 2017-18.
In West Australia, land tax is payable on properties with unimproved land values over $300,000. According to the government, the majority of West Australian property owners will be unaffected by the land tax changes due to a range of exemptions. Approximately 80% of those affected, who hold land with an unimproved value of up to $1 million, will experience a tax increase of up to $70 per year.
After the tax increase, West Australian property owners who are ineligible for exemptions will pay annual land tax ranging from $110 for properties with an unimproved land value of $400,000 to $263,000 for unimproved land value of $15 million. Land tax increased by 12.5% in the 2013 budget.
The 2014 budget saw a big infrastructure spend in Perth's north, with $3 billion to go towards the area. Treasurer Mike Nahan, who said the region was one of Perth's fastest growing areas, committed $641.3 million in public transport and road infrastructure spending to the region.
Over four years, $320 million will be spent on extending the Mitchell Freeway from Burns Beach Road to Hester Avenue. The extension is intended to relieve traffic from Clarkson, Butler and Jindalee, which are cited by the government as growth areas. With residential developments planned for the northern region, a further $32.9 million over the next two years will go towards extending the northern suburbs rail line to Butler. A section of the Reid Highway will be turned into dual carriageways, costing $43 million.
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Western Australia’s 2014 budget: 10% land tax hike

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Only a few days ago <a href="/news/western-australia-building-company-to-pay-10-000-penalty-after-misleading-city-of-geraldton">Property Observer reported about a builder misleading the City of Geraldton</a>, copping a total of $10,000 in fines. This time, it's the City of Stirling who claim to have been misled.
The West Perth builder John Joseph Dryka will pay $10,000 in fines and $2,000 of costs for misleading conduct under the Building Services (Registration) Act 2011, according to the State Administrative Tribunal.
The proceedings, initiated by the Building Services Board, were finalised at the end of March. Essentially, the builder was found to have misled the council, as well as an insurer, as to the estimated value of a Scarborough property's building work, that would involve constructing a three-storey dwelling.
The building licence and home indemnity insurance, that he applied for in December 2007 and November 2007 respectively, were to the value of $850,000. The contract he entered into, however, was $1,799,996.
He then failed to update the local government and insurers of the true value.
Building Commissioner Peter Gow said that being a registered builder is a statement that you have qualifications and experience enough to provide an acceptable service. It also means that the builder is accountable for compliance with building laws and standards.
“Providing building services is an important job – if it’s not done correctly it can put public safety, consumers’ wellbeing and the reputation of the building industry at risk," said Gow.
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Another WA builder fined for misleading council

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In 2007, as the WA's extraordinary property boom reached its peak, then Treasurer Eric Ripper lifted the stamp duty threshold for first home buyers to $500,000.
As the median house price jumped, housing affordability became more difficult and the entry costs to first home buyers in particular became a real impediment. Chief among those costs was several thousand dollars in stamp duty, given that first time buyers were then typically purchasing dwellings at around $300,000.
That policy move by the Carpenter government to effectively abolish stamp duty for the majority of first home buyers has proved over intervening years to be a tremendous success. They have flourished in WA, helped along by low interest rates, the first home buyers grant, plenty of jobs and a robust state economy. In recent years first time buyers often reached more than 30% of the overall market, dwarfing the experience on the east coast.
First home buyer activity in particular has been very strong but is now trending downwards at a worrying rate. Changing policy settings at this time would be very unhelpful and a false economy.
Governments tend to underestimate the importance of first home buyers to the property market and economy in general. Not only do first home buyers take stock out of the market, they facilitate the property seller to trade-up, generating additional revenue from stamp duty as well as other business activity.
The new-home building markets also benefit as economic activity is increased through growth in supply chain business. WA ought not make the same mistake as NSW, which axed the first home buyer duty concession, or Victoria where first home buyer grants were greatly reduced. The clear evidence from these states is that first home buyer activity subsequently collapsed and has not recovered.
While REIWA understands the need for government to fund services and supply infrastructure, my concern is for the overall health and sustainability of the WA housing market at a precarious time. Current REIWA data supported by Landgate figures indicates a market downturn is likely for the second half of 2014.
Evidence from the March quarter shows a drop in sales numbers of around 6% compared to the same quarter in 2013. Listings for sale have risen to the highest level since December 2012 and rental listings are at a seven year high, with the vacancy rate now over 4% for the first time since 2010. Investors are scarce and first home buyers are dropping away. It’s time to recognise that stamp duty on property as a means to raise revenue is clumsy, inefficient and outdated.
Typical stamp duty on a median priced home in Perth is now $20,000. Bracket creep alone has pushed this up by $4,280 over the last five years.
REIWA calls on the government to have a serious look at broadening the land tax base to all property owners with the view to abolishing stamp duty altogether.
The benefit to government is steady, predictable revenue income based on land ownership, rather than unpredictable and volatile revenue income based on sales activity. The benefit to property owners is the simplicity of a modest, annual land tax as opposed to ‘bill shock’, when hit with a huge stamp duty tax in the tens of thousands when they transact.
In some cases stamp duty is so prohibitive to potential buyers that they stay put, jamming the market and not allowing established homes to flow into the first home buyer pool. A broad-based land tax was proposed by the Henry Tax Review and has merit. It has since been adopted by the ACT, which will phase it in over 20 years so it does not disrupt the market and will effectively be revenue neutral.
It’s time for a mature discussion around this proposal with the aim of creating a long-term plan for a better system of property taxes. One that’s not at the mercy of an anxious treasurer every financial year.
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Land tax for all should replace stamp duty for some

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A new state government initiative, and an Australian-first, will see a Heritage Revolving Fund rejuvenate heritage properties that are currently “languishing”.
The $4 million fund will reactivate disused buildings, including the 1850s Fremantle Warders’ Cottages, which have been given priority status as the first to receive funding. When the Fremantle Prison was closed in 1991, these properties were used by the Department of Housing for public housing tenancies. In 2011, they were deemed unsuitable for tenants.
The properties, on Henderson Street, cover 3,544 square metres of ground, and consist of three sets of terrace housing.
Heritage Minister Albert Jacob said that this first major project would receive $2 million of the fund.
“The row of 18 cottages is a priority because it presents a unique challenge to conserve, modernise and return them to active use in central Fremantle,” he said.
Proceeds from the sale or lease of reactivated properties are then fuelled into future projects.
The state government currently owns a third of the properties listed on the State Heritage Register.
To be allocated in the 2014/2015 state budget, the funds will be provided over two years under the program and used in consultation with the State Heritage Office, Premier Colin Barnett explained in a pre-budget announcement.
Barnett noted that this is based on a model widely practised overseas, and that it would be a first in the country.
“The fund will allow disused state and local government-owned heritage properties to be prepared for sale or lease in a way that optimises the heritage, financial and community benefits,” he said. Fremantle CBD is said to have one of the most important concentrations of heritage of properties in Western Australia.
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Australia's first revolving heritage fund announced in WA

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A recent announcement from planning minister John Day has noted that new building standards are going to be put on homes being built in bushfire areas, under new construction standards.
The Building Code of Australia and the Australian Standards AS3959 will identify mandatory provisions for properties being built in bushfire-prone areas under new planning schemes across Western Australia.
The new guidelines are open for public comment, however the plan is for the standards to apply from May 2015, and will apply to all properties in areas mapped by the government as bushfire-prone or within 100 metres of one hectare or more of bushland.
“If land intended for development is located on a bushfire map or close to a large area of bushland a bushfire hazard assessment will be required,” Day announced.
“The assessment will identify the bushfire risk level and the Australian Standards to be applied when the new home is constructed.  These standards are used in many jurisdictions across Australia and include requirements such as the placement of ember screens over evaporative air-conditioner units, window screens and appropriate construction methods."
The measures look to reduce the severity of the effect of a fire on a home.
Part of this will be the introduction of uniform state-wide maps, explained Emergency Services Minister Joe Francies, led by the Fire and Emergency Services commissioner, based on the Keelty Report into the Perth Hills bushfires.
These will be available to the public.
The WA Planning Commission, at the same time, released the State Planning Policy and Planning Guidelines on Bushfire Risk Management. These are all available for public comment, and look to provide both government and developers guidance when planning developments in these areas.
This may cause an extra hoop for developers to jump through, with the current draft suggesting that some developers will be required to supply a Bushfire Management Plan prepared by a fire consultant, jointly endorsed by a local government and authority responsible for emergency services.
It also notes that: "Any planning proposal or development application that will result in the introduction, or intensification, of development in an area that has an extreme bushfire hazard level and/or requires construction standards of BAL-40 or BAL-FZ shall only be supported if it is unavoidable development."
New developments will be required to provide the highest achievable protection, and where earlier strategic planning has not been seen to address bushfire risk, "assessing greenfield or infill development will require the exercising of statutory planning discretions."
It notes that this may include situations where new risks are identified, requiring planning measures to be taken where they have previously been unexpected.
Subdivisions may also be implicated.
The public consultation period on the State Planning Policy closes on 4 July, while the guidelines' commenting period closes on 1 August.
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New construction requirements coming for houses in WA bushfire areas

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A Western Australia building company in Geraldton, Will-Construct Pty Ltd, and director Peter William Willoughby, of Wandina, have been ordered to pay $5,000 each to the Building Commissioner by the Building Services Board for misleading conduct in relation to commercial buildings.
The small company of general contractors worked only on non-residential buildings, not including industrial buildings and warehouses.
The company admitted that they misled the City of Geraldton as to the identity of the builder on the building licence applications, in relation to commercial sheds on three sites. This was from 8 February 2012 to 19 November 2012.
Building Commissioner Peter Gow said that all the information requested on an application for a building licence is required for “good reason”, and that providing misleading or incorrect details can have serious consequences. Gow said that this was the case even if the incorrect information was inadvertently provided.
“It is particularly crucial that the builder’s true details are known because, at the end of the day, they are responsible for the work carried out,” he said.
“Consumers also have a right to know who the person they have engaged to carry out building work is and should be able to check the person has the necessary skills, qualifications and registration, if required, to perform work to a sufficient standard.”
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Western Australia building company to pay $10,000 penalty after misleading City of Geraldton

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A continuining drop in first home buyer numbers has chief executive of the Real Estate Instute of Western Australia (REIWA), Neville Pozzi, warning the government not to introduced any stamp duty increases for first timers.
He said that this drop should come as a budget warning to the state government.
“Given that first home buyers are dropping in numbers, it’s critical that the Treasurer doesn’t bring back stamp duty for this segment of the market,” Pozzi said.
Currently, first home buyers in Western Australia are exempt from stamp duty payments for homes under $500,000.
“It’s very concerning, however, that Premier Barnett has indicated that the current tax break for first home buyers is under review and might be changed,” he said.
“The housing market is very susceptible to cost pressures and making first homes more expensive would be a terrible blow to the market just as it’s starting to stabilise,” he said.
FHOG applications for the March quarter, as recorded by the Office of State Revenue, recorded a 9% drop. This is 21% below the June 2013 peak.
This drop is across both the established and new-build sectors, with established homes dropping by 14%.
“This means that grants being paid out have now fallen below the average since the FHOG was first introduced 14 years ago,” he said.
He noted that the "last thing" the market needs at present is any added cost pressure on first time buyers.
The median purchase by first home buyers in March was $470,000 in Perth, and $350,000 in regional Western Australia.
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REIWA chief executive warns against FHB stamp duty introduction

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There is a lot of pressure on the Barnett government to cut costs and raise revenue in the state budget this May.
Those of us who work in the property sector are particularly concerned that property taxes might again be targeted. In last year’s budget the government increased land tax by 12.5%.
This year it might be very tempting for the Treasurer to cast his net more widely by increasing stamp duty across the board for all buyers as well as scrapping the stamp duty exemption for first home buyers.
The Real Estate Institute of Western Australia has cautioned the state Treasurer against considering such moves. The property market in WA is only just stabilizing after several volatile years and current REIWA data indicates a market downturn for the second half of this year.
It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
Typical stamp duty on a median priced home in Perth is now $20,000. Bracket creep alone has pushed this up by $4,280 over the last five years.
The stamp duty exemption for first home buyers was raised to homes under $500,000 by the Labor government in 2007 and along with the first home owners grant has been extraordinary successful at nurturing the market.
Cost of living and housing affordability is much tougher in WA than other states, but removing the stamp duty impost from first home buyers saves most of them around $14,000 and helps them into a home of their own.
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It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
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In combination with low interest rates, first home buyers have flourished in WA but the signs are that they are now trending downwards and it would be devastating if they soon get hit with stamp duty.
Getting rid of first home buyer relief or increasing stamp duty across the board would also hit the housing construction sector through the increased cost of land.
The clear evidence from NSW, which recently scrapped its tax concessions for first home buyers, is that first home buyer activity collapsed and hasn’t recovered.
It has been a similar experience in Victoria where other concessions for first home buyers were removed or diminished.
First home buyers are critical to the overall health of the property market because they help nurture construction and facilitate the trade-up market.
Data from the Office of State Revenue show activity by first home buyers has been falling for several months, slipping from 1,974 applications in July last year to 1,540 in March.
For a sustainable, affordable housing market, it’s terribly important there is no rise in stamp duty for all buyers or that tax relief for first time buyers is abolished.
This article was originally published on <a href="https://reiwa.com/" target="_blank">reiwa.com</a>.
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The WA budget's threat to first home buyers

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A West Australian building company, Kalamunda’s Heritage Homes (WA) Pty Ltd (registration number 9081) and company director Paul Vincent Monkhouse, have been ordered by the Building Services Board to pay $3,500 for negligent conduct.
Heritage Homes was found to have failed to reduce to writing a total of 41 variations to home building contract working, according to an ASIC release. This is an action required under the Home Building Contracts Act 1991.
These offences were recorded as occurring between April 2009 and June 2011. They were in relation to a contract, that had been entered in to in April 2009, for a Nedlands house. The house was to have renovations and extensions, and it was valued at $458,700.
Routine checks were carried out by the Building Commission. Building Commissioner Peter Gow explained that the Home Building Contracts Act sets out the minimum requirements for contracts. It applies to home building, and associated work, costing between $7,500 and $500,000.
As a result of non-compliance, the company was fined $2,500. Monkhouse, as director and nominated supervisor, copped a $1,000 fine.
“The act is in place for a good reason; it protects both the home owner and persons undertaking home building and associated work,” said Gow.
“One of the requirements of the act is that any variation to the contract must be reduced to writing and signed by both the builder and the owner.”
This is a requirement that ensures property owners are given to accept or reject any variation to a contract before it occurs, and are not hit by additional fees at the end of the building process that they were not aware they had consented to.
“The Building Commission will continue to name those who put consumer interests and the reputation of the building industry at risk,” Gow concluded.
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