Election

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<p>EXPERT OBSERVER</p>
<p>There has been a turnaround in housing sentiment post-election.<br><br></p>
<div><a href="https://1.bp.blogspot.com/-2O6ydv5d_yc/XVni9mLphDI/AAAAAAAAxY4/Wqb10jHOMQ8QStGBIlxAYxOTafNm1xwugCLcBGAs/s1600/C8117FDD-B268-4C8B-A681-0065B5FC871E%2B%25282%2529.jpeg"><img src="https://1.bp.blogspot.com/-2O6ydv5d_yc/XVni9mLphDI/AAAAAAAAxY4/Wqb10jHOMQ8QStGBIlxAYxOTafNm1xwugCLcBGAs/s640/C8117FDD-B268-4C8B-A681-0065B5FC871E%2B%25282%2529.jpeg" width="640" height="468" data-original-height="607" data-original-width="828"></a></div>
<p>Source: CoreLogic</p>
<div>There have been other factors, of course, including two rate cuts.</div>
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<div>The second rate cut was only delivered six weeks or so ago, and there can be a long lag effect - the full impacts many not be felt for up to 18 months</div>
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<div>In addition, there were very strong auction results reported for the inner suburbs of Sydney and Melbourne by agents and media alike this weekend, especially for properties located within 15 minutes commute of the Central Business District.<br><br>CoreLogic found that every single apartment in Sydney's city or inner south taken to auction this weekend sold under the hammer, which is remarkable.<br><br>For freestanding inner-suburban houses, it was a bit of a frenzy. </div>
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<em><strong>PETE WARGENT</strong> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em><span> </span>
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The post-election housing sentiment bounce: Pete Wargent

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<p><span style="line-height: 1.3em;">If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. </span></p>
<p><span style="line-height: 1.3em;">No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.</span></p>
<p>From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2 million will be deemed as an overseas investor unless they can attain a special tax clearance. Failure to attain the special tax clearance certificate means the seller must deduct ten (10) percent from the purchase price which is immediately paid to the ATO.</p>
<p>No doubt lawyers, accountants and conveyancers would be rejoicing at these newly discovered revenue streams although what has not been announced is when a seller receives their compliant special tax clearance are the associated costs in receiving the compliance tax deductible?</p>
<p>This is all aimed at closing loopholes solely aimed at the leakage of tax revenues. Australian residents will get their tax clearance so long as they are up to date with tax returns, proving that they acquired the property within their declared earnings – which I see as a very good move.</p>
<p>When the ATO took over the property reins they quickly started extrapolating all property transactions back to 1985, so it will take a while to complete the register. This new legislation is simply closing the door on those who acquired property illegally either from proceeds of crime or as non – residents.</p>
<p>For the last five years foreign investors have been running amok buying Australian real estate. The federal governments have laid out the welcome mat when they raised off – the – plan purchase restrictions in 2008 from 50 percent to 100 percent.</p>
<p>This week Fitch Ratings warned that Australia clearly has a significant ‘hidden’ offshore property buyers risk. Andrea Jaehne, a director at Fitch Ratings, stated that she was shocked by the increase of foreign buyers since 2010, where the Foreign Investment Review Board experienced an eightfold increase in approvals up to 2015. She said that it was difficult to know the true number of properties being sold offshore because foreign investment rules did not require an approval for foreigners buying apartments off the plan.</p>
<p>The question that needs to now be asked is (with the recent property frenzy which conveniently replaced the mining boom) with all these new measures what will happen to property prices? Well foreign buyers will almost certainly now hold back and watch what happens to the Australian markets particularly Melbourne and Sydney – we can expect some big corrections in these investment markets.</p>
<p>With a further 250,000 apartments to hit the domestic markets within the next two years it is very difficult to see a happy outcome for these markets – more particularly as we have more evidence that these markets are significantly slowing. Then throw in the latest Australian Bureau of Statistics data which shows that Australian wages are growing at the slowest rate for at least 18 years.</p>
<p>Furthermore, we are now hearing that market analysts are now coming to the conclusion that low interest rates actually cause more damage to the economy. As one commentator said this week “very low interest rates around the world are inhibiting economic recovery rather than encouraging it.”</p>
<p>Australia is now just 44 days away from getting a clearer indication of what will happen to the markets more particularly with negative gearing. Now is not the time to start tinkering with investors clearly preferring existing properties. Agents will tell you that when an existing apartment comes onto the market the ratio of home buyers to investors inspecting is generally 50/50. Take away half the market and of course prices will come down – which in turn will drive rents up.</p>
<p>Of course the opposition treasurer could produce his modelling to show otherwise, however this has not been forthcoming so one can then conclude that no modelling is in existence.</p>
<p>With all that’s happening on the Australian property landscape the timing is a potential disaster. In the meantime, watch how many vendors try and offload their properties before the new ATO legislation comes into effect. No doubt the ATO will be watching too.</p>
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<p>MOSMAN – 2088</p>
<p>Number of houses on the market this time last year – 65</p>
<p>Number of houses on the market last week – 55<span style="line-height: 1.3em;"> </span></p>
<p>Number of houses on the market this week – 55<span style="line-height: 1.3em;"> </span></p>
<p>Number of apartments on the market this time last year – 47</p>
<p>Number of apartments on the market last week – 50</p>
<p>Number of apartments on the market this week – 50</p>
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<p>CREMORNE – 2090</p>
<p>Number of houses on the market this time last year – 5</p>
<p>Number of houses on the market last week – 7<span style="line-height: 1.3em;"> </span></p>
<p>Number of houses on the market this week – 11<span style="line-height: 1.3em;"> </span></p>
<p>Number of apartments on the market this time last year – 10</p>
<p>Number of apartments on the market last week – 23<span style="line-height: 1.3em;"> </span></p>
<p>Number of apartments on the market this week – 22</p>
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<p>NEUTRAL BAY – 2089<span style="line-height: 1.3em;"> </span></p>
<p>Number of houses on the market this time last year – 6</p>
<p>Number of houses on the market last week – 8</p>
<p>Number of houses on the market this week – 8<span style="line-height: 1.3em;"> </span></p>
<p>Number of apartments on the market this time last year – 29<span style="line-height: 1.3em;"> </span></p>
<p>Number of apartments on the market last week – 21</p>
<p>Number of apartments on the market this week – 22</p>
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<p><em>ROBERT SIMEON is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000.</em></p>
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ATO quickly wields its big new property tax

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<p>GUEST OBSERVATION</p>
<p>In the weeks after the 2019 federal election, the Sydney Morning Herald <a href="https://www.smh.com.au/federal-election-2019/voter-turnout-at-record-low-after-young-people-disengage-20190530-p51sol" target="_blank">reported</a> that the turn-out of voters was the lowest since the introduction of compulsory voting in 1925.</p>
<p>It also reported there had been high rates of absenteeism of young voters who, while willing to participate in the recent marriage equality survey, had “turned their back on democracy” in the federal election.</p>
<p>The article continues a narrative about a decline in voter participation, which the federal parliamentary Joint Standing Committee on Electoral Matters (JSCEM) review of the the 2016 election <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">described</a> it as a “concerning trend”.</p>
<p>But it turns out the SMH report – which was based on the actual vote count undertaken by the Australian Electoral Commission – got it wrong, because it reported on the 2019 result before the count had been completed. In fact, voter participation in 2019 was actually 0.88% <a href="https://tallyroom.aec.gov.au/HouseTurnoutByState-24310.htm" target="_blank">higher</a> than in 2016.</p>
<p>Despite this, the national participation rate hasn’t returned to the 95% rate achieved in 2007. So what’s behind the apparent decline in civic duty?</p>
<p>Political disengagement is one factor, but data show that low turn-out also happens in seats with a high proportion of Indigenous people, and seats with a high proportion of renters.</p>
<h2><strong>Electorates with the lowest participation</strong></h2>
<p>Looking at the participation performance of individual federal electorates can show what might be happening.</p>
<p><iframe style="border: none;" src="https://datawrapper.dwcdn.net/TlxVN/1/" frameborder="0" width="100%" height="400"></iframe></p>
<p>Among the litany of divisions with the lowest participation rates, two distinct electorate clusters emerge of what might be thought of as under-performing seats.</p>
<p>By far the most consistent under-performing seats are remote regional districts including Lingiari and Solomon (Northern Territory), Durack (Western Australia and previously known as Kalgoorlie) and Leichhardt (Queensland).</p>
<p>These are also the four federal seats with the highest proportion of voters who identify as Indigenous, according to the <a href="https://www.propertyobserver.com.au/https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036" target="_blank">2016 Australian census</a>. In the case of Lingiari, 44.5% of residents identified as being Aboriginal or Torres Strait Islanders, 17.9% in Durack, 9% in Solomon and 6% in Leichhardt.</p>
<p>The next cluster of persistent under-performing seats are inner urban divisions whose residents are among the best educated and most affluent in the nation. This includes Sydney, Wentworth, Melbourne and Melbourne Ports (these days known as Macnamara).</p>
<p>They are also characterised by their comparative youthfulness. These are seats that have significantly larger proportions of citizens in the 19 to 39 year age groups than the national age distribution and, indeed, seats like Lingiari and Durack.</p>
<p><a href="https://images.theconversation.com/files/286557/original/file-20190801-169676-ojlks.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/286557/original/file-20190801-169676-ojlks.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><em><span class="caption">Based on data from the Australian Electoral Commission.</span> <span class="attribution"><span class="license">Author provided</span></span></em></p>
<p>The relatively low turn-out rate and youthfulness of these inner urban electorates supports the argument that young people are enrolling, but not voting.</p>
<p>While this might be the case, it’s also true that the rate of participation in the inner urban cluster of seats is much stronger than for the remote rural cluster.</p>
<p>In short, lower election turn-out rates tend to be associated more with seats with comparatively higher proportions of Aboriginal and Torres Strait Islander voters than with youthful electoral districts.</p>
<p>This is an interesting aspect to electoral behaviour, especially when there is so much debate about how Aboriginal and Torres Strait Islanders could be given greater input to the political process by way of reforming the Australian constitution.</p>
<h2><strong>The role of renting</strong></h2>
<p>These two clusters of seats could not be more different from each other. And yet they do share a significant socioeconomic characteristic.</p>
<p>Both the inner urban and remote seat clusters are characterised by the comparatively large number of citizens with rented, rather than purchased, accommodation.</p>
<p>The 2016 census found that slightly more than 30% of Australians were renters. In contrast, 60% of residents in the seat of Sydney and 52.9% of residents in Lingiari were renting.</p>
<p>With renting comes the possibility of citizens changing their residential address and this, in turn, can make it difficult to maintain the electoral roll.</p>
<p><iframe style="border: none;" src="https://datawrapper.dwcdn.net/oOJ8N/1/" frameborder="0" width="100%" height="400"></iframe></p>
<h2><strong>A political crisis?</strong></h2>
<p>Are these trends a sign of a political crisis, or are they simply “concerning” (to borrow from the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">JSCEM report</a>)?</p>
<p>If the data indicates disengagement, it’s doing so at a fairly minimal rate. And at the last election, attendance rates improved compared with the previous election.</p>
<p>What’s more, the correlation of renters to under-performing electoral districts might even indicate that the problem is administrative rather than the product of civil disobedience.</p>
<p>Having said that, if the government feels the need to address the turn-out rate, they can use coercive powers to reinforce compulsory voting. This would involve imposing bigger fines for those who do not turn up to vote.</p>
<p>The existing legislation allows for a significant fine to apply (one penalty unit) when a voter hasn’t turned up. But the law as it currently stands does allow a wide range of excuses to permit a much less <a href="http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/cea1918233/s245">onerous sanction</a> of a A$20 fine.</p>
<p>Were the parliament to be truly concerned about participation it could seek to alter the act and strengthen the hand of the AEC.<img src="https://counter.theconversation.com/content/120494/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;"></p>
<p><em><strong>Nick Economou,</strong> Senior Lecturer, School of Political and Social Inquiry, Monash University</em></p>
<p><em>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/renters-hold-the-key-to-low-voter-turn-out-at-federal-elections-120494" target="_blank">original article</a>.</em></p>
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Renters hold the key to low voter turn-out at federal elections

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<p>GUEST OBSERVATION</p>
<p>The Coalition has put forward a scheme to help first home buyers get into homes, under which the government will <a href="https://www.liberal.org.au/our-plan-support-first-home-buyers" target="_blank">underwrite a loan of 15% of the value of the home</a>, to be treated as part of their deposit, taking a deposit of 5% up to 20%. Labor adopted it within hours of the announcement on Sunday, meaning that in one form or another it seems likely to become part of housing policy.</p>
<p>Home ownership benefits from significant tax advantages, which are at their strongest when owners have built up their equity. Partly for that reason, it has always been a major pillar of savings for Australians. But the benefits tend to be priced into the cost of housing, which helps explain why it is so expensive. Yes, it is not only those pesky investors.</p>
<p><strong>Home prices are high because of tax breaks…</strong></p>
<p>Blaming investors for this situation can be politically acceptable, but blaming homeowners more broadly or even hinting that tax advantages are to blame is political poison.</p>
<p>Blaming an insufficient supply of new houses is also unacceptable as it can be portrayed as a cop out, even though it is probably the biggest factor explaining the high cost of housing in Australian cities and cities in other countries and states such as Canada and California. In any event it is seen as a “states issue”.</p>
<p>This means the first point to make is that efforts to assist first home buyers are second-best options. Given that we are not tackling the problems we’ve got, whatever things we do do won’t be perfect.</p>
<p><strong>…and an insufficient supply of homes</strong></p>
<p>The latest proposal isn’t the first or only measure directed at first home buyers. The first home buyers grant introduced in 2000 as part of the goods and services tax package was similar but, at <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview200910/Housing" target="_blank">A$7,000</a>, on a smaller scale. State government concessions on conveyancing tax have also helped.</p>
<p>These measures have been criticised as simply putting upward pressure on prices, and as a result not benefitting first home buyers. This criticism is not correct. They benefit first home buyers by much more than they push up prices. They would only harm first home buyers if all buyers got the concession and it didn’t result in extra houses being built.</p>
<p>Neither is the case.</p>
<p><strong>It is possible to help first home buyers…</strong></p>
<p>In recent years we have seen a substantial supply response which should have put to rest notions that the market does not respond to shifts in demand. And first homes don’t make up that much of the market; <a href="https://to.ly/1yXXK" target="_blank">less than 20% of buyers overall</a>, although more in some sectors.</p>
<p>Measures to help first home buyers do have an upward impact on prices, but nothing like to the extent that they help first home buyers.</p>
<p>They hurt people swapping homes. They have to pay marginally more, as do investors, meaning renters have to pay more.</p>
<p>The major concern with the proposal is the risk that buyers might enter the market and then get into trouble.</p>
<p><strong>…but they’ll need to be careful</strong></p>
<p>One of the big problems in the US in the lead-up to the global financial crisis (GFC) were policies designed to get low-income households into the market.</p>
<p>When the GFC hit, they were the biggest losers. So policymakers will need to be very wary in designing the policy.</p>
<p>First home buyers will win, but they will need to be cautious.</p>
<p>Housing is not risk free. House prices can fall as well as rise, as recent history has confirmed only too well.</p>
<p><em><strong>Nigel Stapledon</strong>, Research Fellow in Real Estate, Centre for Applied Economic Research, UNSW</em></p>
<p><em>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/that-election-promise-it-will-help-first-home-buyers-but-they-better-be-cautious-116993" target="_blank">original article</a>.</em></p>
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The Coalition's election promise will help first home buyers, but they better be cautious

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<p>New data from the rental property website Rent.com.au has revealed what’s on the minds of renters ahead of the 2019 Federal Election. </p>
<p>Results from the March election survey indicated that a significant group of Australia’s renters are generally undecided voters, indicating the opportunity available to the various parties if they can clearly articulate their policies.</p>
<p>“Having nearly 70% of our renting population unsure of who to vote for was a surprise to me,” said Rent.com.au CEO Greg Bader (pictured above).</p>
<p>“Maybe it shouldn’t have been, given the recent, relatively unstable nature of federal politics. </p>
<p>“We have all major parties talking about their potential changes (or lack of changes) to some of the core elements that promote investment in properties such as capital gains tax and negative gearing, yet they do not seem to be able to articulate clearly how this will affect renters: will there be more choice; will prices go up or down? These are the things that the renting (and wider) population would like to know”.</p>
<p><img src="https://www.urban.com.au/images/2019/4/3/renter%201%20.png" alt=""></p>
<p><em>Source: rent.com.au</em></p>
<p><span>“Given that one-third of the population rents, the responses to this question go broader than renting issues and show that the various political parties still have an opportunity to make a significant difference in the upcoming election. Especially given the number of marginal seats and the rise of independent candidates in our political system,” said Bader.</span></p>
<p>“To me the message is very clear, renting voters want politicians to be more open and honest with them by explaining their policies (and the reasons) clearly. Renters know that both State and Federal Governments have the power to change policies and legislation that will have significant and lasting impacts on their lifestyle, so for our Federal politicians – speak clearly please. </p>
<p>“One of the real structural issues in our market (and somewhat unique in the world) is that most of our renting stock is held by private investors with one or two properties – i.e. ‘mums and dads’ whereas other markets have managed to create environments with a diversity of stock. So we would encourage the Federal government, from whichever side of politics, to keep pushing through changes to encourage the ‘build to rent’ industry.”</p>
<p><strong>The perception is that things aren’t getting better for renters </strong></p>
<p>Asked about change in the political climate for renters since the last election back in 2016, responses were concrete; 83% reported that they felt no improvement in the renters’ lot. </p>
<p>“We (as an industry and as a community) need to understand that one in three of us rents and that proportion is growing,” Bader said. “What tenants want is a place to live – a home – and the ability to treat that property as their home. Lease security and flexible lease durations are all major issues that renters face.”</p>
<p><img src="https://www.urban.com.au/images/2019/4/3/renter%202.png" alt=""></p>
<p><em>Source: rent.com.au</em></p>
<p>“Our research shows that 80% of renters feel they have not been acknowledged by major political parties in the lead-up to the 2019 Federal Election. This is an opportunity for our Federal politicians to secure renters votes through policies that can be simply explained including what expected impacts they will have. </p>
<p>“We also know that State Governments play a significant role with renting legislation. In fact, most states have passed (or are in the process of passing) changes to the Residential Tenancies Act which have been designed to strengthen renters’ rights, better protect vulnerable tenants and enable people to turn the house they rent into a home, for example. Surprisingly, some 70% of respondents were not actually aware of the changes happening in their states so there is also an opportunity to communicate some of the excellent work underway.”</p>
<p><strong>Affordability still an issue, but a growing market wants to rent </strong></p>
<p>Bader said: “While we’ve recently seen an increase in the amount of people choosing to rent for lifestyle purposes (the ‘practical renter’), our survey found that affordability was still a significant driver.” </p>
<p>“The renting demographic in this country is on the rise and pretty consistent with global trends. Australia’s 7 million renters make up a significant proportion – around 30% of the total population and this number is steadily increasing. It’s a growing market, and one in need of advocacy and recognition.”</p>
<p><a href="https://www.propertyobserver.com.au/images/2019/4/3/renter%203.png" target="_blank">Click here </a>to enlarge: </p>
<p><img src="https://www.urban.com.au/images/2019/4/3/renter%203.png" alt=""></p>
<p>“We know from our research and work with our customer base that yes, affordability is still an important factor for many (especially the last few years in Sydney and Melbourne, and more recently in Hobart). We are also seeing that people enjoy the flexibility (lifestyle, location) that renting can offer – in fact, about 25% of our customers indicate they currently own an investment property but live elsewhere (rentvestors) or are currently saving to purchase a property they don’t intend to live in.</p>
<p>“In Australia, we’re starting to see increased momentum in the vocalisation of renters’ needs. This has undoubtedly been caused by factors like housing affordability issues, job mobility, lifestyle and investment preferences.</p>
<p>“In our own business, we’ve seen huge growth in the number of renters (more than half a million) who have gone to great lengths to stand out by creating a Renter Resume on rent.com.au, so there’s a real need there to ensure this important demographic is heard. Political parties ignore renters at their peril.”</p>
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Who Aussie renters are voting for this election

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<p><span>EXPERT OBSERVER</span></p>
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<p><span>Julian Anderson, director of architecture and interior design practice, Bates Smart, shares his thoughts on the outcome of the 2018 Victorian Election and how the Andrews Government’s policies are likely to affect planning and design outcomes, and the potential design opportunities for Melbourne:</span></p>
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<p>With the re-election of the Andrews Government, we anticipate a relaxation in the planning controls in central Melbourne, particularly as they relate to commercial developments. This should be achieved through an increase in incentives for good design that delivers better urban design and public realm outcomes.</p>
<p><span>During his time as the Minister for Planning, Richard Wynne put a halt to the sort of residential towers that sprang up in the north western corner of the city. Many of these developments had little regard for the public realm. However, with only four planning applications approved since the introduction of the C270 planning controls two years ago, there needs to be a relaxation and a more granular approach to the controls. </span></p>
<p><span>For instance, if we assess the potential of a building 200m in height on a 3,000sqm site it could reasonably deliver about 75,000sqm of GFA. The relaxation of the controls such that either the side or rear setbacks were reduced from 6% of height to 5m could lead to a potential increase in area of about 20%. </span></p>
<p><span>This additional area could be incentivised via the delivery of additional public space or public benefit. Whilst the current controls do contemplate additional area for public benefit, they are silent on the benefits associated with street activation. For example, if a loading bay or services are removed from the ground floor and relocated to a basement, where they are replaced with commercial space or retail or cafes, there should be an uplift in allowable area. This should provide an opportunity for an improvement in dialogue and greater collaboration between designers, developers, the Department of Environment, Land, Water and Planning (DELWP), the City of Melbourne and other key stakeholders. </span></p>
<p><span>The Labor government should take the learnings from the past four years and adopt a greater relaxation of planning controls for mixed use developments, such as residential/ commercial, or commercial/ hotel developments. Greater rewards could be gained for those projects that are offering more interesting architectural and urban design outcomes. </span></p>
<p><span>Currently, commercial development opportunities are encouraged in the Docklands, Southbank and western half of the CBD by allowing additional area for commercial floorspace. Further investigation should be undertaken into stimulating commercial opportunities in other parts of Melbourne’s CBD particularly the eastern half. This is important in the context of the stagnating CBD residential market. </span></p>
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<p>Focus on creating polycentric cities that support communities and population growth.</p>
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<p><span> There needs to be stronger government support for the creation of polycentric cities. That is, those cities that have clusters of density located outside the CBD. London, New York and Hong Kong are all examples of successful cities of over 10 million people that have a series of clusters of density located outside of the CBD. </span></p>
<p><span>A polycentric approach allows for the more even distribution of resources and takes pressure from the roads and rail networks leading into the CBD. It also has the potential to allow for the wider distribution of capital, with the current lack of capital flowing into the CBD as a result of residential development opportunities slowing and commercial projects being constrained by planning controls. </span></p>
<p><span>The Andrews Government’s ring rail plan must be embraced as an opportunity for increased density around those new train stations which includes new public space as well as built form. </span></p>
<p><span>Sydney has leapt ahead of Melbourne as a polycentric city with greater clusters of higher density around Parramatta and North Sydney. </span></p>
<p><span>The Docklands has outstripped the CBD in terms of growth on commercial floorspace and population in the last ten years, yet it lacks a focal point for its community. </span></p>
<p><span>Community space needs to be provided within proximity to Spencer Street, such as public parks and recreational facilities to activate the area. </span></p>
<p><span>The redevelopment of Central Pier is a perfect opportunity with its proximity to Southern Cross Station and Marvel Stadium. There should be consideration given to providing new open spaces that have a connection to the water, with aquatic based recreation including new pools, food and beverage outlets and a market to be introduced. </span></p>
<p><span>Multiple examples of similarly scaled successful water-front urban regeneration projects exist around the world including along New York’s waterfront at Pier 17, in Copenhagen at Paper Island and at San Francisco’s Ferry building marketplace.</span></p>
<p><span>Julian Anderson is the director of architecture and interior design practice at Bates Smart.</span></p>
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jrobinson-rf4aSBido9

2018 Victorian election outcome: An architect's perspective

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<p><span>EXPERT OBSERVATION</span></p>
<p><span>T</span>he Victorian election victory by Labor demonstrates that championing growth with infrastructure provision succeeds over scare tactics on immigration.</p>
<p><span>In the lead up to last weekend’s Victorian </span><span>election the state opposition proposed immigration cuts to </span><span>relieve overcrowding in a similar approach to that promoted by the NSW Premier Gladys Berejiklian.</span></p>
<p><span>But the voters rejected the negative spin put on g</span><span>rowth and preferred the more positive approach of Premier Daniel Andrews to build more infrastructure to manage </span><span>the growth.</span></p>
<p><span>There is clearly an important lesson for political parties in New South Wales from the Victorian election </span><span>results.</span></p>
<p><span> It appears that voters prefer the positive approach to managing growth to build a better future city with new infrastructure rather than an approach that halves immigration and slows down growth. </span></p>
<p><span>Many voters are positive about the booming economy that comes with growth and the swing to a more urban </span><span>city that is occurring in Melbourne and Sydney.</span></p>
<p><span>The Urban Taskforce believes that NSW politicians need to champion positive ways to manage growth </span><span>rather than the recent examples of the government backing down on its own plans in Ryde, the </span><span>Sydenham to Bankstown corridor and the back down on the code for terrace houses.</span></p>
<p><span>It is also important that the NSW Opposition does not exploit fears about the changing nature of Sydney </span><span>and focus on development as being a problem when it </span><span>is clearly responding to community needs.</span></p>
<p><span>The anti</span>-development rhetoric that many politicians are using in the lead up to the state election next March is generating a negative environment in the planning system at state government and council levels which is reducing confidence in the development sector.</p>
<p>The result is a big slow-down in housing approvals which will inevitably lead to less new homes being built over future years and therefore housing prices going up.</p>
<p>Both the NSW government and the opposition need to develop better messaging about the benefits to the economy of growth and immigration and how this can lead to an even better built environment<span>.</span></p>
<p><span>Sydney is going through its biggest restructure in a hundred years as it swings from a low ris</span><span>e suburban city to a city that becomes much more urban with more apartment dwellers. </span></p>
<p><span>The 2016 census demonstrated </span><span>that 30 percent of Sydney’s homes are now apartments located in more urban areas. </span></p>
<p><span>The politicians must </span><span>take this 30 percent of voters into account in their messaging as they are likely to become half of all voters </span><span>within the next 40 years.</span></p>
<p><span><em>CHRIS JOHNSON is the CEO of Urban Taskforce Australia</em></span></p>
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cjohnson-8xfqfuuCSq

Victorian election result demonstrates championing growth can be a winner: Urban Taskforce's Chris Johnson

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<div dir="ltr">Lady Mary Fairfax, the last owner of the Fairwater harbourfront estate at Double Bay once boasted she was enrolled at Harrington Park, her country estate on the outskirts of Sydney, because her vote mattered more there.</div>
<div dir="ltr">
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The longtime society doyenne died last year, with her executors recently securing a <a href="https://www.urban.com.au/news/90023-fairwater-snapped-up-by-billionaire-mike-cannon-brookes" target="_blank">record setting $100 million.</a>
</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The property had cost £5,350 when bought by her media dynasty forebears in 1901, when the Federation saw the first conservative party local member.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The electoral pendulum has swung from the ruling Liberal Party representation, but its pricey property has been near endlessly on the rise.</div>
<p>With Sydney house prices having a $980,000 median price, there are almost no opportunities to buy houses at this level across the electorate.</p>
<div dir="ltr">It has the highest valued residential property in the country, given its proximity to the harbour and the coast.</div>
<div dir="ltr"> </div>
<div dir="ltr">
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The residential land value alone - before improvements - of the Woollahra municipality sits at $37 billion.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">It is $29 billion in the Waverley municipality.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The Wentworth electorate has more haves than have nots among its 103,810 electors.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Indeed the AFR columnist Christopher Joye speculated before the poll that the affluent Wentworth voters "might inflict massive financial losses on themselves in what is one of Australia's most investment-orientated electorates."</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">
<div dir="ltr">Celebrities aplenty, longtime society page doyennes and newbie A-listers, plus even a few rogues call the eastern Sydney suburbs home.</div>
<p>The local estate agents who get around in flash cars, are constantly setting record prices, albeit amid rising homelessness. </p>
<p>The famed Bondi Pavilion on the iconic beach has provided shelter for rough sleepers under its arches.</p>
</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Just across the water, the retailer Mark McInnes recently sold his uninhabitable <a href="https://www.urban.com.au/news/89166-mark-mcinnes-secures-12-million-north-bondi-penthouse-sale" target="_blank">North Bondi penthouse for $11.5 million</a> to aged care provider Mark Moran who intends a Tobias Architects fit out.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">TV star Larry Emdur sold last year on the cliff at Dover Heights for a<a href="https://www.urban.com.au/news/77663-larry-emdur-secures-dover-heights-record" target="_blank"> record $11.5 million</a> to accountant Anthony Bell.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The Lowy family picked up a <a href="https://www.urban.com.au/news/77585-14-2-million-watsons-bay-beachfront-sale-through-bradfield" target="_blank">neighbouring beachfront at Camp Cove</a> for $14.2 million taking their holding to three blocks.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Coastal Tamarama has seen prices hit $13 million when DJ Annie Conley bought the home of pioneering fashion retailer Robbie Ingham.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The local Tama Surf Living Saving Club president was the Labor candidate Tim Murray.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">At nearby Bronte, which got the $2 million Federal Government grant during the campaign, a record $16.5 million was paid several years ago by a former Keating Government staffer, Seamus Dawes who is now a merchant banker.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Former state and federal Labor politicians had something of an inland retirement village around Woollahra with the likes of Paul Keating, Graham Richardson and Neville Wran, all owning there at times.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The departing local member Malcolm Turnbull, with wife Lucy, bought their house, once known as Le Gai Soliel for $5.4 million in 1994, and its likely to be worth $60 million, being on the electorate’s priciest peninsular where prices have hit $61.8 million.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Centennial Park saw a recent record $16.5 million when tech billionaire Mike Cannon-Brookes and wife Kim sold Braelin, their renovated 1918 home to art gallery owner Gene Sherman and her husband Brian.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">The Atlassian co-founder went on to buy Fairwater, topping the national price record by nearly $30 million on the <a href="https://www.urban.com.au/expert-insights/buying/69461-double-bay-harbourfront-elaine-sold-for-70-million" target="_blank">$71 million just next door</a> on Seven Shillings Beach, which has now been nicknamed Atlassian Cove.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">An active climate change advocate, Cannon-Brookes tweeted Saturday night that he'd happily fund the mooted independent, Jane Caro's challenge against former Prime Minister Tony Abbott in Warringah.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Double Bay was one of the 12 booth's won by Liberal candidate Dave Sharma among the electorate's 35 booths.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">Kerryn Phelps is the local doctor, who resides not far away in Potts Point. Her large medical practice has seen patients through the years including former Channel Nine boss Eddie McGuire. Liberal senator Trent Zimmerman declared he ranked among the practice's current clients.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">High profile publicist Roxy Jacenko and husband Oliver Curtis <a href="https://www.urban.com.au/news/61486-pr-dynamo-roxy-jacenko-buys-in-vaucluse" target="_blank">recently spent $6.5 million on a Vaucluse home</a> having previously been renting a luxury Bondi Beach apartment block developed by film maker Rebel Penfold Russell, where Hugh Jackman stays in his trips down under.</div>
</div>
</div>
</div>
</div>
<div dir="ltr"> </div>
<div dir="ltr">Bar baron Justin Hemmes lives in The Hermitage at Vaucluse which the hotelier family have owned since paying $500,000 in the 1970s recession.</div>
<div dir="ltr"> </div>
<div dir="ltr">Tycoon James Packer has sold out completely, though his mum, Ros, who attended a Dave Sharma fundraiser, remains at Cairnton, the longheld 2,450 sqm family estate at Bellevue Hill while his ex wife, Jodee Meares, owns at Watsons Bay.</div>
<div dir="ltr"> </div>
<div>John Ibrahim has owned for over two decades at Dover Heights having paid $1,165,000 in 1997.</div>
<div> </div>
<div>There was a brief stay at Vaucluse by Salim Mehajer who rented a mansion overlooking Diamond Bay, before he was forced to vacate last year after owing $18,000 in rent.</div>
<div> </div>
<div><span>Of occupied private dwellings in Wentworth around 17 percent are freestanding houses, with 20 percent semi-detached, row or terrace houses, and ortownhouses.</span></div>
<div><span> </span></div>
<div>
<span><span>Some 61 percent of the dwellings are apartments, making </span></span>Wentworth the most densely populated electorate in the country.</div>
<div><span style="color: #333333;"><span> </span></span></div>
<div><span><span style="color: #333333;">All up some 70,000 privately owned dwellings.</span></span></div>
<div><span><span style="color: #333333;"> </span></span></div>
<div><span><span style="color: #333333;">Around 44 percent of the dwellings are rented, at a $610 a week median, well </span>up on the $380 NSW median, according to the 2016 Census.</span></div>
<div><span style="color: #333333;"><span> </span></span></div>
<div><span style="color: #333333;"><span>For owners, the median monthly $3000 mortgage payments is well up on the $2000 NSW median mortgage. </span></span></div>
<div> </div>
<div>The are declining numbers of boarding houses along with not enough crisis refuges. </div>
<div> </div>
<div>Social housing is available, but sparsely so in the east. <span>Anglicare recently estimated less than one per cent of private rental properties in Wentworth's are affordable for low-income earners.</span>
</div>
<div> </div>
<div>There are NSW Housing Department flats on Neild Avenue, Paddington in the cosmopolitan heartland of the electorate, plus pricey Ramsgate Avenue, North Bondi.</div>
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<p><span>Bridge Housing, an organisation that owns properties and manages properties owned by the NSW Land and Housing Corporation (LAHC), the public housing authority within the NSW Department of Family and Community Services (FACS), has 213 dwellings available in the Waverley municipality and 16 in the Woollahra municipality.</span></p>
<div>The cheapest recent sales have include a $491,700 Bondi Beach studio apartment, a $607,000 one bedder in Bellevue Hill and a $640,000 one bedroom apartment in Vaucluse.</div>
<div>  </div>
<div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">A one bedroom with views of iconic Bondi Beach might set you back $2.8 million.</div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p"> </div>
<div class="m_-1140009158435937648gmail-m_-5445150200022835211gmail-p">And a car space needs an extra $300,000, but good luck finding one. </div>
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jchancellor-FAypfDUnLy

Baton change in political outlook from Fairwater, on Double Bay's Seven Shillings Beach, aka Atlassian Cove

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<p>GUEST OBSERVER</p>
<p>While the weekend’s election was tight, if nothing else, it’s clear that Labor needs to rethink some of their policies if they’re to win a majority government in the future. </p>
<p>After a bruising loss in the 2013 federal election, when Kevin Rudd fell to Tony Abbott in a landslide defeat, the Labor party has made up significant ground on the Liberals – the weekend’s election is clear proof of this.</p>
<p>However, it would seem that Labor’s ability to regain support isn’t necessarily because the Australian voter base is highly attracted to its policies, but rather has come from the party’s so called “mediscare” campaign. </p>
<p>This was evident in the final weeks of the election campaign, when Labor strategically switched its focus from promoting its own policies to a sustained attack on the Liberal party over claims that it wanted to privatise Medicare – a claim that the Liberal’s unequivocally denied. </p>
<p>The tactic clearly worked, though, and as soon as the polls closed, Labor was immediately espousing that it had won the campaign, if not the election.</p>
<p>Nevertheless, if Labor wants to form a majority government in future elections it will have to seriously rethink some of their policies, because they’ve failed to convince many middle-class voters of their plan for Australia’s future. Even though they’ve already won more seats than the 2013 election, Labor’s primary vote is currently the second lowest on record.</p>
<p>Labor’s approach to negative gearing is a prime example of a policy they need to rethink.</p>
<p>Being one of the party’s key policies, and one that is distinctly at odds with the Liberal party, it’s clear Labor’s stance on the matter hasn’t been accepted by ordinary Australians.</p>
<p>If Labor hasn’t already got the message, then maybe the results from a recent survey will show exactly how out of touch their negative gearing policy is with the Australian public.                 </p>
<p>The Real Estate Institute of WA conducted a survey in the weeks leading up to the election.</p>
<p>Asked if negative gearing should be restricted to only newly-built properties, just 3 percent of respondents answered, yes.</p>
<p>That is a resounding rejection of Labor’s negative gearing policy, which if implemented will cause major disruption to Australia’s housing markets.</p>
<p>With more than 9 million houses in Australia owned by owner-occupiers and investors, this is a significant portion of the voter base that will be effected.</p>
<p>These voters would be very hesitant to back a Labor party with their current negative gearing policy for fear they’d see the value of their properties decline.</p>
<p>That’s not even taking into account the huge number of renters that would be negatively affected as well.</p>
<p>Given this, Labor will have to seriously rethink their stance on negative gearing, and other policies, if they’re to have any chance of forming a majority government in future elections.</p>
<p><em>Damian Collins is the founder and managing director of Momentum Wealth and can be contacted <a href="https://www.momentumwealth.com.au/damian-collins/" target="_blank">here</a>.</em></p>
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