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Perceptions about Australian property being overvalued are significantly higher among first-home buyers then owner-occupiers, the latest QBE LMI Mortgage Barometer shows.
This was one of the key findings of the report, which found an overall improvement in sentiment about the property market with more than a quarter (26%) of Australians looking to buy property in the next 12 months despite nearly one in two believing it to be overvalued.
More than three quarters (76%) of first-home buyers believe property is overvalued with nearly half (48%) believing prices are overvalued by more than 10%.
Click to enlarge
<a href="/images/stories/2013/06/qbejune19one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/06/qbejune19onethumb.gif"></a>
In comparison just 41% of owner-occupiers and 48% of Australians believe property prices are overvalued, according to the online survey of 1,107 adult Australians responses of which 763 have a mortgage, 680 considering buying property and 399 qualifed as both.
This finding combined with concerns about changes to first-home buyer grants favouring new homes only and another finding from the survey - 69% of FHB respondents worry they’ll never be able to afford their own home – provide insights into why the segment of the market has shrunken in recent times.
Other findings from the report suggest a frustrated first-home buyers market despite recent improvements in affordability.
The report quotes ABS figures showing that since February 2013, the number of FHBs as a percentage of total owner-occupied housing commitments has fallen by more than 5% since September 2012 and now sits at 14% nationally, an eight year low. .
This is due to record low FHB commitments in NSW and QLD (both less than 10%) – a plunge of more than 10% since the grants were replaced, while other states saw FHB commitments rise.
"There are concerns that Victoria will follow suit as it replaces its First Home Owner Grant with a $10,000 newhome owner grant as of 30 June 2013," says the report.
Figures compiled the<a href="/news"> Real Estate Institute of Australia (REIA)</a> found the number of home loans to NSW first-home buyer in the March quarter totalled 2,647 - 57% lower than a year ago and a 40.6% fall in the March quarter alone.
This was the largest annual decline recorded across the country but in line with a national trend of dwindling first-home buyer demand.
In Queensland, a state which has also cancelled its first-home owner grant in favour of a $15,000 handout for new homes in September last year, home loans to first-home buyer decreased by 43.7% over the March quarter  to 2,557 - the largest quarterly decline across the nation the REIA found.
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Overvalued, unaffordable property keeping first-home buyers on the sidelines: QBE LMI survey

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The number of suburbs where you could be financially better of buying rather than renting has risen from 494 suburbs in December to 692 as of July, according to the latest RP Data Buy vs Rent Report.
The theoretical report lists suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
The latest list is dominated by Queensland suburbs which make up more than third (242 suburbs) out of the 692 suburbs.
Greater Brisbane accounts for 71 suburbs while the remaining 171 can be found in the regional areas of the state.
There are 193 suburbs in NSW (73 are in Sydney), 75 in WA, 54 in Tasmania and 45 each in Victoria and South Australia.
Just two out of the 45 Victoria suburbs are in Melbourne.
Reflecting their relative unaffordability, there are just 29 Northern Territory suburbs on the list and six in Canberra.
A discounted variable mortgage rate of 5.4% and a three-year fixed mortgage rate of 5.15% have been assumed as part of the analysis.
Additionally, RP Data has assumed buyers hold a 10% deposit.
The full report is available to download for free at <a href="https://www.rpdata.com.au/buyorrent" target="_blank">rpdata.com.au/buyorrent</a>
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Queensland dominates list of 692 suburbs where you could be better off buying than renting: RP Data

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Borrowers who don’t have a 20% deposit will be forced to pay higher lenders mortgage insurance (LMI) premiums following the two dominant providers – Genworth and QBE LMI – both increasing their premiums in the last 12 months. 
This is despite Australia having among the lowest mortgage default rates in the world. 
Fitch reported that mortgage delinquencies rose from 1.57% in the December 2011 quarter to 1.6% in the first quarter of 2012 – equating to about $35 million worth of loans turning bad. 
LMI is a one-off premium that protects lenders if a borrower defaults on their home loan - if the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall. 
LMI can added thousands of dollars to the cost of buying a home and is particularly an issue for first-home buyers given the 20% deposit requirement. 
Calculations using the Genworth LMI premium estimator show that a first-home buyer borrowing 95% on a house valued at $500,000 (so a $25,000 deposit) would be required to pay an LMI premium of close to $16,000 on a 30 year variable-rate loan. 
A 10% deposit would reduce the premium to just under $8,000. 
A further issue is a lack of portability – if borrowers refinance with a new lenders and they still don’t have a 20% deposit, LMI must be paid again. 
Mortgage broker and director of Investors Choice Mortgages, Jane Slack-Smith, says she would expect LMI premiums to increase if there was an increase in delinquent loans “however it is not something I have seen in my business and not something that I have heard either LMI provider discuss in their updates”. 
Slack-Smith suggests that with interest rates so low, potentially the LMI providers are expecting issues for today’s buyer in the future when rates return to the long term norm of around 7.5% - “a way of hedging the future risk”. 
QBE LMI chief executive Jenny Boddington told Property Observer it increased base premiums on its core LMI products as of July 1 this year.
"We regularly review our pricing to ensure stable and reliable provision of our lenders’ mortgage insurance across the economic cycles,” she says.
Boddington says changes to premiums in recent years have mainly been driven by increased regulatory capital requirements, continuing subdued returns on our investment portfolio and slight increases in claims.
A spokesperson for Genworth confirmed that premiums have increased in the Australian market over the past twelve months.
“As a prudent insurance business, Genworth regularly reviews all elements associated with our product offering.
“This review takes into consideration the current market environment and the costs associated with providing our product and service delivery, including the cost of capital, portfolio performance and changing investment yields.
“Each individual LMI premium is calculated on the basis of a wide range of factors related to the size of the borrower’s deposit, the loan purpose, and the property. As such, pricing changes are based on a detailed analysis of each risk factor.”
Updates sent to brokers by lenders confirm the increases as well as changes to some products and offerings. 
An email sent to mortgage brokers by the Commonwealth Bank’ in June tells them that LMI will increase for “home/investment home loan and line of credit applications created from Sunday 2 June 2013”. 
“We are making these changes in line with pricing changes from our preferred LMI provider, Genworth,” says the Commonwealth Bank’s head of third party banking Kathy Cummings. 
An email sent to brokers by Suncorp says QBE LMI will increase base premium on three of its products - “lmiHOME™, lmiINVEST™ and lmiFIRST HOME™”. 
It’s not all bad news.
The Suncorp note also says QBE has of July 1 extended the eligibility criteria for its lmiFIRST HOME product - a discounted lenders mortgage insurance offering designed for first home buyers - to individuals who are purchasing or building a residential property for owner-occupation and who also qualify for the first-home owners grant and FHB stamp duty concessions.
The move is presumably to take in those FHBs who have qualified for the bigger state grants now available for new home purchases.
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More pain for first-home buyers as Genworth and QBE LMI push up mortgage insurance premiums

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First-home buyers have deserted the NSW property market in droves with improved housing affordability and significantly reduced interest rates not having any impact on the willingness of this key market segment to climb onto the property ladder.
The number of home loans to NSW first-home buyer in the March quarter totalled 2,647 - 57% lower than a year ago and a 40.6% fall in the March quarter alone, the latest Real Estate Institute of Australia (REIA) figures reveal.
This was the largest annual decline recorded across the country but in line with a national trend of dwindling first-home buyer demand.
According to the REIA, first-home buyers made up 14.5% of the national owner-occupier market in the March quarter compared to 16.5% in the December quarter 2012 - the lowest level since the June quarter of 2004.
The number of new finance commitments to first home buyers decreased 22.5% to 18,348 in the March quarter.
Compared to the first quarter of 2012, new finance commitments to first home buyers decreased 21.3%.
Some of the blame for the  steep slide in NSW first-home buyer numbers will be attributed to the state government’s decision to axe the $7,000 first-home owner grant on September 31 in favour of a $15,000 grant for new homes only.
In Queensland, a state which has also cancelled its first-home owner grant in favour of a $15,000 handout for new homes in September last year, home loans to first-home buyer decreased by 43.7% over the March quarter  to 2,557 - the largest quarterly decline across the nation.
Victoria, the ACT, South Australia and Tasmania all plan similar changes to first-home buyer grants in the coming months.
Both <a href="/news">Property Observer</a> editor Jonathan Chancellor and <a href="/news">hotspotting.com.au’s Terry Ryder</a> have highlighted the ill-directed nature of such schemes (Ryder called Queensland’s grant “a new definition of insanity”) which attempt to dangle a financial carrot in front of the noses of first-home buyers to sway them towards new homes over existing ones.
The REIA is also campaigning for a re-commitment by these states to a universal grant available for both new and existing homes.
It should be borne in mind that first-home buyer numbers have declined despite housing affordability as measured by the REIA improving for seven consecutive quarters following the RBA cutting cash rate by 200 basis points since November 2011 and much of this (around 80%) being passed on by lenders to variable rate mortgage holders.
Over the same period, dwelling prices have risen by a moderate 2.4%, according to RP Data figures.
Clearly other forces are also at play including relatively low consumer confidence, concerns about job prospects and the high cost of home ownership in key markets like Sydney and Melbourne, despite recent incremental improvements.
Victoria, which has yet to implement its new homes only $10,000 first-home buyer grant, recorded a more modest 15.4% drop in the number of loans to first home buyers over the quarter to 6,053. However, the figure is unchanged compared with the same quarter of the previous year.
South Australia was the only state or territory to record a rise in the number of loans to first home buyers, up by 1.8%.
For the year, Western Australia recorded the largest increase in loans to first home buyers, up by 19.2%.
The number of first home buyers in Tasmania dropped by 3.9% over the quarter but increased 15.9% compared to the March quarter of the previous year, to 349. During the quarter, first home buyers made up 16.8% of owner-occupier market in Tasmania.
The number of first buyers’ loan commitments in the Northern Territory dropped 23.8% to 231 over the quarter but increased 0.9% compared to the March quarter of 2012. Of all owner-occupier housing finance commitments in the territory, first home buyers made up 21.9% during the first quarter 2013.
The number of first home buyers in the Australian Capital Territory fell 0.5% to 367 during the quarter. This is 9.9% higher than the figure recorded during the March quarter 2012.
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With existing homes ineligible for state grants, NSW suffers 57% annual drop in first-home buyers: REIA

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The decision by the ACT government to withdraw the $7,000 first-home owner grant on August 31 and replace it with a $12,500 grant for new homes only from September 1, means six states and territories have shifted their incentives in favour of what Ray White boss Brian White says is effectively a “builders’ grant”.
NSW, Victoria, Queensland, South Australia. Tasmania and the ACT have all withdrawn (or will withdraw in the coming months) their handouts for first-home buyers who buy an established home.
The Real Estate Institute of Australia's (REIA) campaign for these states and territories to honour the “uniform” nature of the original InterGovernmental Agreement struck in 2000 that “an eligible home will be new or established” is unlikely to succeed.
For first-home buyers, these are the grant handouts available in their state and territory markets currently as well as what’s about to change in the coming months:
(Click on the state names for links to the relevant state revenue office pages).
<a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW</a>
The NSW state government offers a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant was available until December 31, 2013, reducing to $10,000 from January 1, 2014, but the 2013 State Budget<a target="_blank" href="/news"> extended the availability of the $15,000 </a>until January 2016.
<a target="_blank" href="https://www.sro.vic.gov.au/sro/sronav.nsf/alltitle/First%20Home%20Owners?open">Victoria</a>
The Victorian government offers a $7,000 first-home owner grant for both new and existing homes until from June 30. The grant is available if the price of the property or construction of the home does not exceed $750,000. From July 1 a new $10,000 grant for newly constructed homes under $750,000 begins.
<a target="_blank" href="https://www.osr.qld.gov.au/first-home-owner-grant/index.shtml">Queensland</a>
The Queensland government offers a $15,000 great start grant for first-home buyers buying or building a new home valued under $750,000.
<a target="_parent" href="https://www.finance.wa.gov.au/cms/content.aspx?id=344">Western Australia</a>
The WA government offers the $7,000 first-home owner grant for both existing homes and new homes. A cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.
<a target="_blank" href="https://www.revenuesa.sa.gov.au/fhog/index">South Australia</a>
The South Australian government offers a FHOG of $15,000 for new homes. It also offers a maximum Housing Construction Grant (HCG) of $8,500  to all home buyers (FHBs and non-FHBs) who are purchasing or building a new home with a market value of under $400 000. Above $400,000 to a maximum of $445,000 the grant decreases in increments of $5,000.
For first home buyers buying an existing home there is a First Home Owner Grant (FHOG) of $5,000.
The Housing Construction Grant expires on June 30 2013. The $5,000 FHOG grant for existing homes expires on June 30 2014.
<a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT</a>
The ACT government offers a $7,000 grant to first home buyers buying both existing and new homes capped at the total value of home and land of $750,000 or less. This expires on August 31. From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
<a target="_blank" href="https://www.sro.tas.gov.au/fhog">Tasmania</a>
The Tasmanian government currently offers a one-off FHOG payment of up to $7,000. The grant is not means tested and there is no cap on the value an eligible home.
There is also a First Home Builder Boost (FHBB), a payment, in addition to the FHOG, of up to $8 000. It is available for eligible applicants, purchasing a newly built home or who are owner-builders between 1 January 2013 and 30 June 2014 and who meet the required time frames for commencement and completion of the house.
Both these grants will end on June 30, 2014.
From July 1 2014, Tasmanian first-home buyers who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG.
<a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default%20220213.aspx">Northern Territory</a>
The Northern Territory offers a first-home owner grant for both new and established homes that remains ongoing.
FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than the transaction eligibility threshold (see table below). This includes the unencumbered value of the land on which a home is to be built. The amount of the transaction eligibility threshold is determined based on the commencement date of the eligible transaction.
The commencement date of an eligible transaction is:
for a contract to purchase or construct a home, the date when the contract is made; or
for an owner builder, the date the laying of the foundations commenced.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="318" valign="top">
Commencement date of eligible transaction?
</td>
<td valign="top">
Transaction eligibility threshold?
</td>
</tr>
<tr>
<td width="318" valign="top">
On or after 4 December 2012?
</td>
<td valign="top">
$600 000?
</td>
</tr>
<tr>
<td width="318" valign="top">
From 1 January 2010 - 3 December 2012?
</td>
<td valign="top">
$750 000?
</td>
</tr>
<tr>
<td width="318" valign="top">
Prior to 1 January 2010?
</td>
<td valign="top">
No threshold applied?
</td>
</tr>
</tbody></table>
The amount of the grant increased on 4 December 2012 in relation to eligible transactions that commenced on or after that date. From that date, the amount of the grant also varies depending on the type of transaction and location of the property.
If the commencement date of the eligible transaction is on or after 4 December 2012, the amount of the grant is the lesser of the consideration actually paid for the eligible transaction, or:
a) $12 000 if the home is an established home in the urban area;
b) otherwise - $25 000
If the commencement date of the eligible transaction is before 4 December 2012, the amount of the grant is the lesser of the following:
a) the amount of consideration actually paid for the eligible transaction;
b) $7000
An established home is one that has been previously sold or occupied, and is lawfully fit for occupation.
An urban area means all land located wholly within the boundaries of:
<ul>
<li>the Darwin, Palmerston or Litchfield municipalities;</li>
<li>Wagait Shire;</li>
<li>the Darwin Waterfront Precinct;</li>
<li>the “prescribed area” for the Darwin Rates Act.</li>
<li>any other area prescribed by regulation.</li>
</ul>
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First-home owner grants: a state-by-state guide

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This week the NSW government <a href="https://www.propertyobserver.com.au/news/everything-you-need-to-know-about-the-nsw-first-home-buyer-%2415000-grant-scheme/2013061762349?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus" target="_blank">extended its $15,000 first-home buyer grant scheme</a> for new homes only through to January 2016 as part of its June 2013 state budget.
The grant amount was originally scheduled to reduce to $10,000 from January 1 2014. Instead it will now only reduce from January 1 2016.
Following the release of other state and territory 2013-14 budgets over the past few months, the following pages contain the key dates and information first-home buyers (FHBs) and non-first-home buyers need to know in their state and territory as they consider property purchases:
(All information current up to June 20 2013)
NSW
No current expiry date - New Home Grant Scheme
Under the NSW New Home Grant Scheme, a $5,000 grant will be available to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000. This is grant is not available to investors and owner occupiers, not FHBs.
No current expire date - First Home - New Home stamp duty concessions and exemptions
The First Home—New Home scheme provides exemptions or concessions on transfer duty for people who are buying their first home in NSW. This includes buying vacant land on which they intend to build their first home. It provides eligible purchasers with exemptions on transfer duty on new homes valued up to $550,000 and concessions on transfer duty for new homes valued between $550,000 and $650,000.
Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000 and will receive a concession on duty for vacant land valued between $3550,000 and $450,000.
Duties can be calculated using  the <a target="_blank" href="https://www.apps05.osr.nsw.gov.au/erevenue/calculators/fhnh.php">First Home—New Home calculator</a>
January 1 2016 - FHOG
From this date the NSW $15,000 First Home Owner Grant (New Home) to help eligible FHBs purchase or build a new home, will be reduced to $10,000 with no end date set.
More information: <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW Office of State Revenue</a>
 
<hr class="system-pagebreak">
VICTORIA
June 30, 2013
The date the Victorian government ends its $7,000 first-home owner grant. The grant is available if the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
July 1, 2013
From this date eligibility for the First Home Owner Grant will be limited to FHB of new homes and will be increased from $7,000 to $10,000. To qualify for the Grant, the price of the property or construction of the home must not exceed $750,000.
July 1 2013
The land transfer duty discount for eligible first home buyers purchasing a principal place of residence (PPR) valued at not more than $600,000 increases from 30% to 40%. To be eligible for the duty reduction, the FHB must have received or be entitled to receive the FHOG and must also reside in the property for a continuous period of 12 months commencing within 12 months of settlement.
September 1 2014
The land transfer duty discount for eligible FHBs purchasing a principal place of residence (PPR) valued at not more than $600,000 increases from 40% to 50%.
 
More information: <a target="_blank" href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/B82157FB72EC77C8CA2575CA00826CDD6BF180369BCB3975CA2575A1004420CF">Victoria State Revenue Office website</a>.
QUEENSLAND
No current expiry date - Great Start Grant
The $15,000 grant is available for first-home buyers buying or building a new home valued under $750,000.
No current expiry date – stamp duty concessions
The Queensland government offers stamp duty concessions for both first-home buyers and non-first-home buyers. A scaled first-home concession is available up to $550,000, no duty is paid on vacant land up to $250,000 with scaled concessions up to $400,000. For no-FHBs, the concessional transfer duty rate of $1 for each $100 or part of $100 applies to the first $350,000 of the consideration or value of the home.
<a target="_blank" href="https://www.osr.qld.gov.au/duties/transfer-duty/exemptions-and-concessions/concessions-for-homes.shtml">Full details on concession rates can be found here.</a>
 
<hr class="system-pagebreak">
WA
No current expiry date - FHOG
The WA government offers the $7,000 first-home owner grant for both existing homes and new homes. A cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.
No current expiry date - stamp duty concessions for FHBs
When a home buyer is eligible for the FHOG, a concessional rate of transfer duty will apply if the value of the dutiable property is below certain thresholds.
The First Home Owner Rate of Duty applies to a dutiable transaction with a dutiable value of up to $600,000 for a house and land, or $400,000 for vacant land.
If the property includes a home
<table style="width: 470px;" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="top" width="211">
Dutiable Value
</td>
<td valign="top" width="357">
Rate of Duty
</td>
</tr>
<tr>
<td valign="top" width="211">
$0 - $500,000
</td>
<td valign="top" width="357">
Nil
</td>
</tr>
<tr>
<td valign="top" width="211">
$500,000 - $600,000
</td>
<td valign="top" width="357">
$22.51 per $100 or part of $100 above $500,000
</td>
</tr>
</tbody></table>
For vacant land
<table style="width: 470px;" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="top" width="211">
Dutiable Value
</td>
<td valign="top" width="357">
Rate of Duty
</td>
</tr>
<tr>
<td valign="top" width="211">
$0 - $300,000
</td>
<td valign="top" width="357">
Nil
</td>
</tr>
<tr>
<td valign="top" width="211">
$300,000 - $400,000
</td>
<td valign="top" width="357">
$13.01 per $100 or part of $100 above $300,000
</td>
</tr>
</tbody></table>
No current expiry date - stamp duty concessions for principle place of residence
This concessional rate of duty applies to a purchase of a residential property valued at less than $200,000, which will be the primary place of residence for the purchaser.
<ol></ol>
The rates of duty are as follows:
<table style="color: #000000; font-family: Arial, Helvetica, sans-serif; font-size: 12px; width: 470px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td width="235" valign="top">
Dutiable Value
</td>
<td width="333" valign="top">
Rate of Duty
</td>
</tr>
<tr>
<td width="235" valign="top">
$0 - $100,000
</td>
<td width="333" valign="top">
$1.50 per $100.00 or part of $100.00
</td>
</tr>
<tr>
<td width="235" valign="top">
$100,000 - $200,000
</td>
<td width="333" valign="top">
$1,500 + $4.39 per $100.00 or part of $100.00
</td>
</tr>
</tbody></table>
 More information <a target="_blank" href="https://www.finance.wa.gov.au/cms/content.aspx?id=344">available here</a>
SOUTH AUSTRALIA
No current expiry date
The South Australian government offers a FHOG of $15,000 for new homes.  The property value must not exceed $575 000.
June 30 2013
The $8,000 Housing Construction Grant (HCG) will expire on this date. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
June 30 2014
The $5,000 FHOG grant for existing homes expires on this date. The property value must not exceed $575 000.
June 30 2014
Up until this date first home buyers are eligible for an off-the-plan stamp duty concession of up to $21,330 (capped at stamp duty payable on a $500 000 apartment).
The concession is available if you purchase a new or substantially refurbished apartment:
<ul>
<li>within the area of the Corporation of the City of Adelaide;</li>
<li>on any land within the area where the Bowden Redevelopment project (Bowden Village); or</li>
<li>on any land located within the area known as 45 Park, Gilberton;</li>
</ul>
This concession is in addition to the FHOG.
FHBs can work out their entitlements under this scheme on a dedicated <a target="_blank" href="https://www.revenuesa.sa.gov.au/stamps/sdofftheplan">OTP Concession</a> page.
June 30 2016
A partial off-the-plan stamp duty concession will be available for contracts entered into between 1 July 2014 and 30 June 2016.
FHB can work out their entitlements under this scheme on a dedicated <a target="_blank" href="https://www.revenuesa.sa.gov.au/stamps/sdofftheplan">OTP Concession</a> page.
More information on the <a target="_blank" href="https://www.revenuesa.sa.gov.au/IamaFHB">Revenue SA website</a>.
 
<hr class="system-pagebreak">
ACT
August 31 2013
The existing $7,000 FHOG will end on this date. The cap limits the total value of eligible properties (i.e. total value of home and land) to $750,000 or less.
September 1 2013
FHBs in the ACT will receive $12,500 if they buy or build a new home or one that has been substantially renovated. 
August 31 2013
On this date the Home Buyer Concession Scheme (HBCS) to assist persons in purchasing a new residential home or residential vacant land by charging duty at a concessional rate ceases. The HBCS applies to new or substantially renovated properties for transactions dated 5 June 2013 to 31 August 2013.
The property thresholds and concessional duty rates are worked out in accordance with the following table.
<table style="width: 470px;" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="255">
If the Dutiable Value of an Eligible Property or Eligible Vacant Block is… 
</td>
<td valign="top" width="274">
the Concessional Duty Payable… 
</td>
</tr>
<tr>
<td valign="top" width="255">
equal to or less than the lower threshold
</td>
<td valign="top" width="274">
is $20
</td>
</tr>
<tr>
<td valign="top" width="255">
more than the lower threshold, but less than the upper threshold
</td>
<td valign="top" width="274">
is the concessional duty rate for each $100 (or part thereof) by which the dutiable value exceeds the lower threshold (with a minimum of $20 payable)
</td>
</tr>
<tr>
<td valign="top" width="255">
equal to the upper threshold or more
</td>
<td valign="top" width="274">
does not apply (i.e. there is no concession and full duty is payable)
</td>
</tr>
</tbody></table>
 
1 July 2012 – pensioner duty concession
The Pensioner Duty Concession Scheme (PDCS) is to assist eligible pensioners to move to accommodation more suited to their needs (e.g. from a house to a townhouse) but who may find the duty involved to be a significant impediment.  Such persons are assisted to purchase a residential home or residential vacant land by paying duty at a concessional rate.  The PDCS has been extended for a further three years from 1 July 2012. The latest upper and lower value thresholds, which are updated every six months for eligible property and vacant land (usually 1 January and 1 July) to ensure that they remain current, <a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance/pensioner_duty_concession/1_January_2013_-_30_June_2013">can be found here</a>.
More information on the <a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT Revenue website</a>.
Tasmania
June 30, 2014
Up until this date, Tasmanian FHBs of established homes are entitled to a $7,000 grant. The grant is not means tested and there is no cap on the value an eligible home.
June 30, 2014
Up until this date the $8,000 First Home Builder Boost Scheme grant available to Tasmanians building a new home (including off-the-plan) if the qualify for theFHOG will end on this date.
July 1, 2014
From July 1, 2014, the FHOG is only available to those who buy or building a new home, including off the plan and house and land packages.
More information can be <a target="_blank" href="https://www.sro.tas.gov.au/domino/dtf/SROWebsite.nsf/v-all/1D7587F444344511CA2575C10011ACBE?OpenDocument&amp;menuitem=First%20Home%20Buyers">found here.</a>
 
<hr class="system-pagebreak">
Northern Territory
No current expiry date - FHOG
The Northern Territory offers a FHOG for both new and established homes that remains ongoing. FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than $600,000. The amount of the grant increased on 4 December 2012 in relation to eligible transactions that commenced on or after that date. From that date, the amount of the grant also varies depending on the type of transaction and location of the property.
The amount of the grant is the lesser of the consideration actually paid for the eligible transaction, or:
<ul>
<li>$12,000 if the home is an established home in the urban area;</li>
<li>otherwise - $25,000</li>
</ul>
An urban area means all land located wholly within the boundaries of: the Darwin, Palmerston or Litchfield municipalities; Wagait Shire; the Darwin Waterfront Precinct; the “prescribed area” for the Darwin Rates Act, any other area prescribed by regulation.
No current expiry date – stamp duty concession
The Northern Territory Government provides a stamp duty Principal Place of Residence Rebate (PPRR) to persons purchasing a new home or land on which to build a home.  A new home is a home that has never been previously lived in or sold as a place or residence. Substantially renovated homes may be considered as a new home for the purpose of the PPRR. The PPRR is an amount up to $7000 off the duty payable.
A calculator is available on the NT government website to work out the <a href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/StampDuty/StampDutyCalculators/Pages/PPRR-Calculator.aspx">amount of duty payable</a>.
No current expiry date – Senior, pensioner and carer concession
The Senior, Pensioner and Carer Concession (SPCC) aims to assist eligible senior citizens, pensioners and carers that are not first home owners acquire a home or land on which to build a home by reducing the stamp duty that would otherwise be payable. The SPCC is an amount up to $8,500 off the stamp duty payable which represents the stamp duty on approximately the first $263,200 of the value of the property acquired.
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State by state government property grants and stamp duty concessions: The expiry dates you need to know

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Kevin Rudd’s first-home buyer housing initiative – the first-home saver account (FHSA) incentive – has topped 40,000 savings accounts with a surge in new accounts over the first three months of the year.
In total $416.8 million is held in 40,200 accounts equating to average savings per account of around $10,300.
The scheme, which was slow to gain traction when launched is still no where near the planned 750,000 savings accounts the government hoped would be opened by 2012.
There were 1,200 new savings accounts opened over the first three months of the year, more than double the 500 opened in the final quarter of 2012, according to APRA figures.
First home saver accounts
<img src="/images/stories/2013/larry_uploads/fhs_accounts.png" width="470" height="84" alt="fhs_accounts">
Source: APRA
The scheme aims to help first-time buyers save for a deposit for their first homes. 
Under the FHSA, the government contributes 17% on the first $5,500 of individual contributions made each year. Account holders are required to keep savings in the FHSA for four financial years before they can use the funds to buy a home.
The government amended the scheme last May to allow savings in an account to be paid into an approved mortgage at the end of the minimum four-year qualifying period, if they saver bought a home earlier, rather than require that the money be paid into a superannuation account.
However, should a saver decide not to buy a home (for example they may decide to head overseas), the money must still be transferred into the saver's super fund and can only be accessed when they retire.
<a href="/news">In February last year </a>Property Observer noted the scheme was gaining traction among first-home buyers, despite the abandonment of the scheme by the Commonwealth and ANZ banks.
According to APRA, the savings accounts are offered through 17 institutions the bulk of which are credit unions and building societies, but also the Commonwealth Bank and AMP.
ANZ pulled out of the scheme in October last year.
A spokesperson for the Commonwealth Bank said it was no longer offering new accounts.
The main features of these accounts are:
<ul>
<li>The interest you earn on the account is only taxed at a rate of 15%.</li>
<li>You have to save at least $1,000 each year over at least 4 financial years before you can withdraw the money. These 4 years do not need to be consecutive.</li>
<li>The maximum account balance is capped at $90,000 but this cap will be indexed in future years. After your savings reach this level, only interest and earnings can be added to the balance.</li>
<li>The money has to be used for your first home. If it is not, it is added to your super and you can't access it until you are retired or can meet another <a target="_blank" title="condition of release" href="https://www.moneysmart.gov.au/glossary/c/condition-of-release">condition of release</a>.</li>
<li>If you buy your first home before the 4 year period is up, you can withdraw the money in your account at the end of the 4 year period to put towards your mortgage. You will not be able to make any more deposits once you have built or bought a property.</li>
</ul>
Source: ASIC
<ul></ul>
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Kevin Rudd’s first-home saver account scheme gathers pace with $417 million set aside for future home purchases

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The government’s proposed changes to superannuation are likely to impact on the most satisfied account holders, the latest Roy Morgan Research Superannuation Satisfaction report suggests.
The government proposes a <a target="_blank" href="/news">tax of 15% on super income above $100,000 per annum</a> from July 1 2014, which is expected to impact on around 16,000 super funds with income-earning assets (such as property) of around $ 2 million or more – assuming a return of 5%.
Many of these 16,000 super funds are likely to be self-managed super funds.
According to Roy Morgan, over the six months to January, self-managed super funds, which have a growing proportion of their assets in direct property, remain the clear leader with a 72.2% financial performance satisfaction rating.
And satisfaction with the performance of SMSFS has been rising since about September last year.
In comparison, satisfaction with other fund types, where members have less control, has been declining since the GFC and continues fall.
Industry funds are a distant second with a satisfaction rating of 48.7% with retail funds further back (41.9%).
The results of the survey suggest on overall high-level of dissatisfaction with super fund performance with the satisfaction rating for financial performance of superannuation across all types of funds in the six months to January 2013 of just 46.6%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/roymorganapril15one.gif"><img src="/images/stories/2013/04/roymorganapril15onethumb.gif"></a>
The survey also found that satisfaction with financial performance of superannuation increases the bigger the super balance.
The highest satisfaction rating (65.7%) was for funds with balances higher than $500,000 with the satisfaction decline to 56.9% for funds with balances from $250,000 to $499,999; to 48.7% for fund with balances from $100,000 to $249,999 and to just 43.7% for funds with balances under $100,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/roymorganapril15two.gif"><img src="/images/stories/2013/04/roymorganapril15twothumb.gif"></a>
The findings are based on over 30,000 interviews with people with superannuation.
“Our research shows that although there is a strong correlation between satisfaction with superannuation financial performance and the amount in super, the issue regarding who manages the super also has a major impact,” says Norman Morris, industry communications director at Roy Morgan Research.
“It appears that satisfaction with superannuation has a lot to do with the level of engagement, which is higher among self-managed funds and higher balances. “The poor satisfaction levels of Retail Funds across all balance levels obviously are of concern, considering that financial planners are more likely to direct their clients to them,” he says.
Photo by Martin Howard, courtesy of Flickr.
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SMSF satisfaction rates soar above disgruntled retail and industry fund members: Roy Morgan 

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First-home buyers in Victoria wanting to buy an existing home have just two months to make their purchases and still receive the existing $7,000 first-home owner grant.
The Victorian state government has announced, ahead of its May 7 state budget, that on June 30, it will join NSW and Queensland by ending the long-running handout instead in favour of a bigger $10,000 grant – launching on July 1 - but only for newly constructed houses and apartments under $750,000.
The grant is available to homes and apartments built under a home building contract, built by an owner-builder, purchased off the plan or sold for the first time as a residential premise.
All first-home buyers will benefit from fast-tracked stamp duty savings, which will increase from 30% to 40% on homes valued up to $600,000, beginning on July 1.
The changes to the Victorian first-home owner grant, aimed to assist first home buyers and create jobs in the struggling housing construction industry comes at as the Real Estate Institute of NSW (REINSW) campaigns for the reinstatement of the $7,000 first-home owner grant for existing homes in NSW.
In September last year, Queensland ended its $7,000 first-home owner grant in favour of $15,000 construction grant to buy or build a new home, since renamed the ‘Great Start Grant’.
In October, NSW ended its $7,000 first-home owner grant in favour of a $15,000 grant to buy or build a new home.
With other changes set to occur to different state incentive schemes for first-home buyers over the next six to 18 months, these are the key dates that prospective FHBs need to put into their calendars:
All dates correct as of April 29 2013 and may change with the release of state budgets later in the year.
June 30, 2013 - Victoria
The date the Victorian government ends its $7,000 first-home owner grant. The grant is available if the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
June 30 2013 - South Australia
The $8,000 Housing Construction Grant (HCG) will expire on June 30. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
June 30 2013 - ACT
The Home Buyer Concession Scheme (HBCS), offering stamp duty concession to first-home buyers and anyone else purchasing a new home or residential vacant land under certain thresholds (<a href="https://www.revenue.act.gov.au/home_buyer_assistance">details on the ACT government website</a>), is due to expire on June 30. 
July 1, 2013 – Victoria
The start of the $10,000 grant in Victoria for newly constructed homes. In addition, the state government will also increase stamp duty cuts of 40% for all first home owners (including those buying existing homes) for homes valued up to $600,000. The combination of a $10,000 first-home owner grant and 40% stamp duty cut means that Victorians buying a newly constructed first home for $400,000 will save over $16,500.
January 1, 2014 - NSW
The $15,000 grant for first-home owners who purchase or build a new home in NSW valued at up to $650,000 will reduce to $10,000 from this date.
June 30, 2014 – South Australia
Up until this date, South Australian first-home buyers of established homes are entitled to a $5,000 grant. From July 1, 2014, no first-home owner grant is available to purchasers of established homes.
June 30, 2014 – South Australia
Stamp duty concessions for first-time buyers who purchase an apartment off the plan in the Adelaide CBD will end on this date. The scheme is available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment of $21,330.
June 30, 2014 – Tasmania
The $8,000 First Home Builder Boost Scheme grant available to Tasmanians building a new home (including off-the-plan) if the qualify for the first-home owner grant will end on this date.
September 1, 2014 - Victoria
All first home buyers (whether purchasing newly constructed or established homes) will benefit from a 50% stamp duty concession for homes valued up to $600,000.
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Victorian government to end $7,000 FHOG: the state-by-state deadlines you need to know

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Melbourne postcode 3029 comprising the outlying south-westerly suburbs of Hoppers Crossing and Tarneit received the highest number of applications for the soon-to-be-cancelled $7,000 first-home owner grant over the nine months to March 2013, the Victorian government’s state revenue office has revealed.
The figures come as the Victorian Government announced plans to scrap the $7,000 first-home owner grant on June 30 for existing homes and apartments, replacing it with a $10,000 grant for new homes and apartments only.
These are the Top 10 postcodes for applications the $7,000  first-home owner grant for the nine months from July 1 2012 to March 31 2013:
<img src="/images/stories/2013/04/fhogtop10april29one.jpg" width="470" height="174" alt="fhogtop10april29one">
Source: State Revenue Office
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Hoppers Crossing and Tarneit leads Victorian top 10 FHB grant application locations

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

Larry Schlesinger

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