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Real-estate agents will need to ensure that they fully understand the rules governing work-related expense claims when they file their 2011 tax returns.
The ATO says it will “pay close attention” to claims made by real-estate employees along with a number of other professions including carpenters, joiners and apprentices and trainees.
Estate agents will be among 116,000 taxpayers the ATO will write to in the countdown to the June 30 end-of-financial-year mark.
“We have found people in these industries are at higher risk of getting their work-related expense claims wrong due to the type of deductions they are entitled to claim, such as motor vehicle and travel expenses,” a spokesperson for the ATO says.
Among the errors targeted are failing to keep a log book or receipts for car expenses, and wrongly claiming for mobile phones.
“It is important you keep records for claims totalling $300 or more as, if you cannot prove your claim, you will not be entitled to the deduction and you may have to pay a penalty,” the spokesperson says.
Institute of Chartered Accountants tax counsel Yasser El-Ansary says work-related deductions are sometimes incorrectly claimed because the laws in this area are complex and often “a shade of grey”.
“It is important to think carefully about your circumstances… If you’re self-preparing your return, make the decision on whether or not you’re eligible for a deduction on the basis of all the different guides and products available through the Tax Office’s website,” El-Ansary says.
“They do prepare a lot of written material and, for self-preparers, that written material is invaluable in assisting them to understand whether or not they are able to claim something.”
In most situations, estate agents can claim deductions for work-related expenses as long as the expense is incurred in doing their job, the expense is not private and evidence of the expense being incurred can be shown by producing receipts or other written evidence.
Evidence is required to show the full amount of a claim has been incurred, not just the amount over the first $300.
For claims under $300 or less, receipts are not required, but agents must be able to show how they worked out their claims.
The ATO recommends that when storing written documentary evidence, agents photocopy the original since receipts can fade when exposed to heat and sunlight.
It provides the following example:
 
Marco claims his car expenses through the logbook method, and does not need to keep the receipts for fuel and oil but he does need to keep receipts for repairs and maintenance. 
 
He photocopies the thermal paper receipts to protect the information. The photocopies contain the required information and are a true and clear reproduction of the original. This copy would be sufficient evidence to support his claims.
Estate agents should also be aware that if they are claiming a deduction for an expense incurred for something used partly for work and partly for personal purposes (such as mobile phone costs), they can only claim that portion of the expense that relates to business use.
Written evidence of work-related expenses must be retained for five years from the due date for lodging a tax return. If you lodge your return after the due date, the five years start from this later date.
For depreciating assets, records must be kept for a further five years from the date of the last claim for decline in value.
Every year, about 8 million people claim about $16 billion in work-related expenses.
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lschlesinger-FZcF9M3vE6

ATO warns estate agents to be vigilant with tax claims

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Name: Scott Staniforth Company/organisation: Otan Property Funds Management Position: Business development City of residence: Perth Number of years in the industry: On and off over six years
During a stellar career, Scott Staniforth played 106 Super rugby games and made 12 appearances for the Wallabies. He’s since swapped his rugby jersey for business attire, making his mark in property investment. He tells Property Observer how he’d spend $500,000 and who he tips to win this year’s Rugby World Cup.
 
 
 
 
What sparked your initial interest in property? 
Coming from a farm, it was a natural fit. I remember vividly a career night at school where I spoke with a real-estate agent most of the night. I promptly went back to the boarding house and looked up property courses then investigated enrolling in a bachelor of commerce degree, majoring in property economics at the University of Western Sydney.
 
What was the first property you bought? 
A two-bedroom unit in North Sydney.
Are you a trader or holder of property?
A bit of both, but generally I prefer to hold.
So far, who or what has been your biggest influence in your life or career?
My beautiful wife – she has been my sounding board throughout my rugby and property careers.
What are the ingredients you need to be successful in the property market?
A good work ethic and persistence. People who are honest, fair and think outside the square make the best investors.
Are you bullish or bearish about house prices? Why?
I think the market has bottomed out, so buying at today’s prices will put you in a good position. In WA, the resources boom is putting a lot of pressure on rental prices and supply is pretty limited. Prices won’t boom like they did before the global financial crisis, but there will be a smaller one that will bring steady increases in sales and prices.
If you had a $500,000 to invest right now, where would you invest it?
I would spread it out across the different projects in our fund, from Subiaco to Karratha, as this would provide diversity and they would mature at different times.
What skills learnt on the rugby field have you found useful in the property industry or in your current role?
I find a lot of similarities including team work, respecting people’s differences, patience, and doing the little things that others aren’t prepared to do.
Who was the toughest opponent you ever faced on the playing field?
I had a few. On his day, Jonah Lomu was very tough, but through consistency of performance, I would say Tana Umaga.
Who are you tipping to win the World Cup?
Wallabies to win, with Ireland the dark horse.
Do you have a favourite iPhone application?
LinkedIn.
What are you reading at the moment? 
 
The Social Network by Ben Mezrich
What are you listening to at the moment?
Spice Girls, thanks to my 8-year-old daughter!
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Scott Staniforth: On the ball

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Property investors and buyers should be bracing themselves for an August rate rise, according to Katie Dean, head of Australian economics at ANZ.
Dean made the prediction on the back of a “hawkish” speech by RBA governor Glenn Stevens on economic conditions and prospects on June 15.
Stevens said that if RBA current economic forecasts were correct, “further tightening of monetary policy is likely to be required at some point for inflation to remain consistent with the 2% to3% medium-term target”.
According to Dean, the next quarterly inflation figures will be key to the RBA decision. These figures are to be released at the end of July, just ahead of the August 2 RBA board meeting. Should inflation rise by 0.7% or more, and barring any increase in the unemployment rate between now and then, ANZ expects this will trigger a move on rates.
Dean says if the forecasts are right “and assuming there is no big divergence between the governor and the RBA board, then it not a matter of if the bank tightens, but when”.
“We continue to expect August as the next window.  We suspect a core inflation read of at least 0.7% quarter to quarter (which would be in line with the RBA’s latest forecasts) would, barring another notable downswing in the activity data, likely be enough to get the board over the line,” she says.
Similar to the minutes from the May board meeting, Dean says the June 15 speech effectively played down some of the current major arguments against a further monetary policy tightening.
The RBA will next decide on further interest rate rises on July 5.
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Rate rise likely: ANZ

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More evidence is emerging that investors should steer clear of the Darwin market.
Darwin’s stock of properties on the market has risen by 3.6% in April, the biggest increase of all the capital cities, according to the latest research by property analysts SQM Research. About 1,128 houses in Darwin are up for sale in May, compared with 1,070 a month ago. The number of units has increased more moderately, from 664 to 659.
The stock of properties up for sale in Darwin has been building steadily over the past year. Since May 2010, stock levels have risen by 59.3%. This compares with the national trend of 0.3% decline in stock on market from April 2011 to May 2011 and a 29.7% increase since May 2010.
SQM managing director Louis Christopher, told Property Observer although Darwin is more affected by seasonal factors than other capital cities, the latest data indicates a “cyclical trend of rising and rising stock levels”.
“It is evidence of a slower housing market in Darwin and less buyer demand. Things are looking quite dicey in Darwin,” he says.
Data released by the Real Estate Institute of Australia shows the stock of available rental properties in Darwin has jumped by 2.3% during the March 2011 quarter, pushing the overall vacancy rate in Darwin to 4.6%.
Darwin is not alone when it comes to rising stock levels – no capital cities recorded declines year-on-year in stock on market.
Sydney has recorded the largest decline month-on-month, falling by 3.5% since April 2011, and also the least yearly growth, rising by 25.5% since May 2010.
 Brisbane (-1.3%) and Perth (-0.6%) are the only other capital cities to record decreases in stock levels over April 2011.
 
Melbourne stock increased by 0.2% for the month and by 49.2% for the year.
 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="102">
City
</td>
<td valign="top" width="57">
May 2010 Houses
 
</td>
<td valign="top" width="59">
May 2010 Units
 
</td>
<td valign="top" width="69">
Apr 2011 Houses
 
</td>
<td valign="top" width="61">
Apr 2011 Units
</td>
<td valign="top" width="70">
May 2011 Houses
</td>
<td valign="top" width="62">
May 2011 Units
 
</td>
<td valign="top" width="67">
YOY% Change
 
</td>
<td valign="top" width="69">
MOM% Change
</td>
</tr>
<tr>
<td valign="top" width="102">
Melbourne
</td>
<td valign="top" width="57">
20,831
 
</td>
<td valign="top" width="59">
8,324
 
</td>
<td valign="top" width="69">
32,572
</td>
<td valign="top" width="61">
10,979
</td>
<td valign="top" width="70">
32,753
</td>
<td valign="top" width="62">
10,867
</td>
<td valign="top" width="67">
49.6%
</td>
<td valign="top" width="69">
0.2%
</td>
</tr>
<tr>
<td valign="top" width="102">
Canberra
</td>
<td valign="top" width="57">
959
 
</td>
<td valign="top" width="59">
323
 
</td>
<td valign="top" width="69">
1313
 
</td>
<td valign="top" width="61">
541
 
</td>
<td valign="top" width="70">
1306
 
</td>
<td valign="top" width="62">
548
 
</td>
<td valign="top" width="67">
44.6%
 
</td>
<td valign="top" width="69">
0.0%
 
</td>
</tr>
<tr>
<td valign="top" width="102">
Adelaide
</td>
<td valign="top" width="57">
10,124
 
</td>
<td valign="top" width="59">
1,710
 
</td>
<td valign="top" width="69">
14,244
</td>
<td valign="top" width="61">
2,355
</td>
<td valign="top" width="70">
14,385
 
</td>
<td valign="top" width="62">
2,469
 
</td>
<td valign="top" width="67">
42.4%
</td>
<td valign="top" width="69">
1.5%
</td>
</tr>
<tr>
<td valign="top" width="102">
Darwin
</td>
<td valign="top" width="57">
707
 
</td>
<td valign="top" width="59">
418
</td>
<td valign="top" width="69">
1070
 
</td>
<td valign="top" width="61">
659
 
</td>
<td valign="top" width="70">
1128
</td>
<td valign="top" width="62">
664
</td>
<td valign="top" width="67">
59.3%
 
</td>
<td valign="top" width="69">
3.6%
</td>
</tr>
<tr>
<td valign="top" width="102">
Brisbane
</td>
<td valign="top" width="57">
18,877
 
</td>
<td valign="top" width="59">
4,374
</td>
<td valign="top" width="69">
24,944
</td>
<td valign="top" width="61">
5,761
</td>
<td valign="top" width="70">
24,520
 
</td>
<td valign="top" width="62">
5,791
 
</td>
<td valign="top" width="67">
30.4%
</td>
<td valign="top" width="69">
-1.3%
</td>
</tr>
<tr>
<td valign="top" width="102">
Sydney
</td>
<td valign="top" width="57">
15,495
 
</td>
<td valign="top" width="59">
10,172
</td>
<td valign="top" width="69">
20,393
</td>
<td valign="top" width="61">
12,985
 
</td>
<td valign="top" width="70">
19,705
 
</td>
<td valign="top" width="62">
12,498
</td>
<td valign="top" width="67">
25.5%
</td>
<td valign="top" width="69">
-3.5%
</td>
</tr>
<tr>
<td valign="top" width="102">
Hobart
</td>
<td valign="top" width="57">
2364
 
</td>
<td valign="top" width="59">
340
 
</td>
<td valign="top" width="69">
3032
 
</td>
<td valign="top" width="61">
514
 
</td>
<td valign="top" width="70">
3140
 
</td>
<td valign="top" width="62">
530
 
</td>
<td valign="top" width="67">
35.7%
 
</td>
<td valign="top" width="69">
3.5%
 
</td>
</tr>
<tr>
<td valign="top" width="102">
Perth
 
</td>
<td valign="top" width="57">
12,783
</td>
<td valign="top" width="59">
3,081
</td>
<td valign="top" width="69">
17,586
</td>
<td valign="top" width="61">
4,292
</td>
<td valign="top" width="70">
17,586
</td>
<td valign="top" width="62">
4,226
</td>
<td valign="top" width="67">
37.1%
</td>
<td valign="top" width="69">
-0.6%
</td>
</tr>
<tr>
<td valign="top" width="102">
National
</td>
<td valign="top" width="57">
231575
 
</td>
<td valign="top" width="59">
53249
 
</td>
<td valign="top" width="69">
300456
 
</td>
<td valign="top" width="61">
70182
 
</td>
<td valign="top" width="70">
300044
</td>
<td valign="top" width="62">
69445
</td>
<td valign="top" width="67">
29.7%
</td>
<td valign="top" width="69">
-0.3%
</td>
</tr>
</tbody></table>
Source: SQM Research
 
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Darwin stock levels rise, evidence of 'dicey' market

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Housing starts have risen 3.1% for the March quarter of 2011, according to the latest ABS data. On an annualised basis, the number of home starts has risen from 154,000 to 158,000.
The increase has surprised economists at investment bank UBS, which had forecast a 4% decline in starts on the back of continued weakness due to natural disasters.
Another positive surprise noted by UBS is “medium density” commencements – apartments and townhouses – which have jumped 14.6% for the quarter, and are up 36.0% year on year.
Queensland (up 12.8%, after a fall of 4.5% in the December 2010 quarter) and New South Wales (up 7.7% after falling 0.7%) were the main contributors of what UBS has called an overall solid result.
“Looking ahead, floods repair work and reconstruction in Queensland could boost second quarter housing starts,” UBS economist Alvin Pontoh says.
Pontoh says the announcement in the Queensland state budget of a new $10,000 grant in Queensland for purchases for new homes should also help encourage housing starts.
“Key to the outlook from here will be the extent to which residential building approvals stay resilient in the face of lending for construction data that have been much weaker,” he says.
But HIA chief economist Harley Dale, while noting some positives in the latest results (particurlarly a 11.5% rise in “other dwelling” starts), says the “overall downward trend persists and has now extended into a second year”.
“Leading indicators point to further weakness ahead for housing starts, and the 2010-11 financial year is set to fall nearly 20,000 dwellings short of what was achieved last year,” Dale says.
“When underlying demographic demand is running at around 175,000 dwellings per annum and the number of homes started is heading in the wrong direction towards 150,000 in 2010-11 and then lower still, that’s hardly a recipe for cheer,” he says.
Aaron Gadiel, CEO of the Urban Taskforce, also highlights the overall downward trend – despite the strong quarterly performance.
“New home starts overall were 11.5% down on figures for the 2010 March quarter,”
Gadiel says. “Even when you factor out the declining government activity on public housing, the private sector was down by 2.5% when compared to the March quarter last year.”
A modest rise in housing starts was recorded in Victoria (1.8%).
The level of building activity in South Australia (down 2.9%), WA (down 4.5%) and Tasmania (down 9.3%) continues to decrease.
Private house commencements continue to fall, down 1.8% (down 19.5% year on year), the fifth consecutive quarterly fall, for a cumulative 21% drop since the peak in the fourth quarter of 2009.
Public sector commencements (which accounts for only 4% of the total) have fallen a further 12%, down 74% from its GFC fiscal stimulus peak.
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Jump in housing start figures unexpected but welcome

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Property investors should be wary of investing in the Darwin property market, based on the latest Real Estate Institute of Australia’s Real Estate Market Facts report.
The stock of available rental properties has jumped by 2.3% over the March 2011 quarter, pushing the overall vacancy rate in Darwin to 4.6%.
This represents about double what the vacancy rate was at the start of the year.
According to the REIA, vacancy rates above 3% generally reflect an oversupply of rental accommodation while those under 3% indicate strong demand for rental accommodation.
Hobart is the only other capital city where vacancy rates have risen over the quarter, up by a comparatively modest 0.3% to 2.3%.
The troubled Brisbane market has experienced the biggest quarterly drop in vacancies, down 1.6% over the quarter to 1.8%.
Sydney, which maintains its position as the tightest rental market, has fallen a further 0.3% t0 just 1.1%.
<img src="/images/stories/reiajune15.gif">
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Darwin rental vacancy rate doubles in three months

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The Adelaide Hills region has emerged as one of the most resilient top-end property markets in Australia, with property prices increasing by more than 10% over the past 12 months.
The region has defied the current national trend, as 20% of the most expensive capital city suburbs recorded a fall in values of 5.4% during the 12 months to April 2011.
It compares with a 0.5% fall at the most affordable end and 0.9% decline across the broad middle 60% of the market, according to the latest RP Data Weekly Property Pulse.
Houses in the Adelaide Hills continue to change hands with the median price a historic high of $600,000, with 63 sales recorded during the March quarter.
Adelaide Hills’ attraction for home buyers is its relatively close proximity to the Adelaide CBD (a 30- to 40-minute commute), but it is still outside the “rough and tumble of city life”, according to RP Data research analyst Cameron Kusher.
“The Adelaide Hills has done a good job attracting people to the market who are willing pay higher prices,” Kusher tells Property Observer.
Kusher says the town of Gawler, 40 kilometres north of Adelaide, has also benefited from a growing population as well as its close proximity to the Barossa Valley wine region.
House prices in Gawler remain at their historic median highs at $344,500, up 9% on the year. Ninety-six homes were sold in Gawker during the first three months of the 2011, according to RP Data.
<a href="https://www.propertyobserver.com.au/images/stories/rpjune15large.jpg" title="Click to enlarge" rel="shadowbox"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/rpdatajune15.jpg"></a>
Gawler, Adelaide Hills and the northern Adelaide suburb of Salisbury (median house price of $317,000, prices up 2.3%) have all outperformed the overall Adelaide market, where median prices are down 2.1% over the year.
“In these regions, the Government has provided decent level of amenities, the populations are growing and they have lifestyle appeal,” Kusher says.
These three Adelaide growth spots are joined by the greater western Sydney municipalities of Blacktown, Campbelltown and Liverpool, which have not experienced price declines over the quarter and where prices remain at or near-historic highs.
Kusher says affordability is the issue driving the strength of these traditionally unfashionable markets: “People have realised if you want to get into the market, you need to move out to these regions.”
At the other end of the scale, some of the country’s most prestigious markets have experienced the biggest declines, with Mosman Park in Perth down 43% from its median peak price and down 3.8% for the year. Houses in Mosman Park at their peak were valued at just under $2.2 million. The current median price is $1.25 million based on a very limited turnover of just 14 sales for the period.
Other prestigious markets where house prices have declined significantly from historic highs include the Perth beachside suburb of Cottesloe (down 21.6% to $2.05 million), Woollahara in Sydney’s eastern suburbs (down 18.5% to $1.84 million) and Mosman on the Sydney north shore (down 21.8% to $2.2 million)
Houses in the Melbourne local government area are currently down 27.6% from their peak, trading at $742,500 from a peak of $1.03 million in December 2010.
Kusher says the premium sector is being impacted by a “perfect storm of forces such as consumer conservatism, higher interest rates, poorly performing equities markets (both in Australia and nationally), unstable global economic conditions and lower levels of business and consumer confidence”.
Lower-than-normal turnover has contributed to the decline in medians in prestige suburbs across the country.
The most expensive local market where house prices have remained at historic highs is Botany Bay in Sydney. Median house prices stand at $850,000, but just 27 homes changed hands over the quarter.
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Adelaide Hills are alive with the sound of money

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Though currently there is little interest in the Perth suburb of Mirrabooka from investors, close proximity to the CBD and the beach, investment in infrastructure and low prices relative to more fashionable neighbours suggest it could be a good long-term investment opportunity.
The St George National Property Hotspots Report has identified Mirrabooka as one of 24 suburbs across Australia that are likely to provide a strong value proposition when buying a home
The suburb is located just 11 kilometres north of the Perth CBD and an equal distance from the nearest beach. Built on an elevation, it offers views of the CBD and surrounding suburbs.
House prices in Mirrabooka are well below those of suburban neighbours in the city of Stirling. According to RP Data, the median house price is $362,500, up 4.3% on a year ago and 42.3% over five years.
Ninety percent of houses in Mirrabooka are detached, providing scope for both internal and external renovation. According to the St George report, land parcels are often quite large, suggesting there is potential for some subdivision of blocks.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="92" valign="top">
 
</td>
<td width="104" valign="top">
Mirrabooka
</td>
<td width="76" valign="top">
Balcatta
</td>
<td width="88" valign="top">
Nollamara
</td>
<td width="88" valign="top">
Balga
</td>
</tr>
<tr>
<td width="92" valign="top">
Driving time to CBD
</td>
<td width="104" valign="top">
30 minutes
</td>
<td width="76" valign="top">
20 minutes
</td>
<td width="88" valign="top">
20 minutes
</td>
<td width="88" valign="top">
22 minutes
</td>
</tr>
<tr>
<td width="92" valign="top">
Median sales price
</td>
<td width="104" valign="top">
$362,500
</td>
<td width="76" valign="top">
$500,000
</td>
<td width="88" valign="top">
$415,000
</td>
<td width="88" valign="top">
$370,000
</td>
</tr>
<tr>
<td width="92" valign="top">
% change in price in last year
</td>
<td width="104" valign="top">
4.3%
</td>
<td width="76" valign="top">
0.6%
</td>
<td width="88" valign="top">
1.5%
</td>
<td width="88" valign="top">
4.2%
</td>
</tr>
<tr>
<td width="92" valign="top">
Average time on market
</td>
<td width="104" valign="top">
71.2 days
</td>
<td width="76" valign="top">
47.2 days
</td>
<td width="88" valign="top">
50.1 days
</td>
<td width="88" valign="top">
82.3 days
</td>
</tr>
<tr>
<td width="92" valign="top">
Median weekly rent
</td>
<td width="104" valign="top">
$350
</td>
<td width="76" valign="top">
$380
</td>
<td width="88" valign="top">
$350
</td>
<td width="88" valign="top">
$320
</td>
</tr>
<tr>
<td width="92" valign="top">
Indicative gross rental yield 
</td>
<td width="104" valign="top">
5%
</td>
<td width="76" valign="top">
4%
</td>
<td width="88" valign="top">
4.4%
</td>
<td width="88" valign="top">
4.5%
</td>
</tr>
</tbody></table>
Source: All RP Data, except driving time to CBD, sourced from Google Maps
 
Mirrabooka’s rental market is greater than the Perth average, with 32.5% of all dwellings detailed as rentals. The median house rent for Mirrabooka is currently $350 per week, with indicative gross rental yields sit at 5%.
 
A difficult market: Agents
The sentiment from agents operating in Mirrabooka is that it is currently a buyers’ market, with vendors having to reduce their prices to attract buyers.
When Property Observer spoke to Michael Grogan, an agent from Carter Giorgi Real Estate, he had just sold a property in Mirrabooka at a “huge price” reduction.
Grogan says prices have to be priced right or they just won’t sell.
Currently, cheap rentals and low prices have made Mirrabooka popular with recent migrants and low-income earners.
But Grogan says that its proximity to the CBD means the suburb has the potential to change in the same way that Balgowlah West has done and become a sought-after suburb.
Suzana Angeleska, from Power Realty Alexander Heights, is marketing Mirrabooka houses that started off being listed for $350,000 but are now being offered for $330,000.
Even with the reduced prices, she says offers are coming in for $310,000. “There are not many buyers, but lots of properties available, it’s a buyers’ market,” she says.
“There are no investors coming into the market and no new developments.”
But she also sees potential for the suburb: “It’s very close to the city and central.
“It has good facilities and is close to the freeway. It is close to suburbs like St. Andrew and Northwood, which are very expensive,” she says.
According to the St George report, Mirrabooka “enjoys good quality public transport, with a number of bus routes servicing the suburb. Access to the suburb by private vehicle is relatively easy along the Reid Highway”.
Infrastructrure
 The City of Stirling has started investing in the infrastructure of Mirrabooka. This year, the suburb will benefit from a $13 million urban renewal project designed to enhance public infrastructure, public transport and development opportunities.
The project includes another road connection and the creation of two mixed-use sites to cater for residential and commercial developments in and around the town centre. In 2011 projects including a new community town square designed to accommodate community events, expansion of the Mirrabooka shopping centre and the refurbishment of the bus station were completed.
Currently, Mirrabooka Village providing smaller shopping conveniences, and the Mirrabooka Square Shopping Centre is a major shopping centre and includes a medical centre and public library. The Malaga Markets, in the neighbouring suburb of Malaga, also offers retail amenities.
Long-term view 
The Mirrabooka housing market appears to have solid prospects for future capital growth. The suburb shows relative affordability compared with most of the surrounding suburbs. Mirrabooka enjoys a plethora of local shopping amenities and has quality public transport. Many of the houses show considerable renovation potential, which is an excellent way to boost their value. 
Last year houses took on average, 56 days to sell, suggesting there may be some scope for negotiation. However, they recorded relatively low vendor discounting of -5.6%.
According to current RP Data information, the average number of days Mirrabooka houses are on market has risen to just over 71.
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Hotspot: Mirrabooka one to watch

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The Real Estate Institute of Queensland has slammed a decision by the Queensland Government to remove stamp duty concessions for non-first home buyers.
From August 1, 2011 non-first home buyers will no longer receive stamp duty deductions when buying a new or established home as their principal place of residence, state treasurer Andrew Fraser announced in the June 14 state budget.
Home duty concession rates came into force on July 1, 2008, providing relief on a sliding scale.
Non-first home buyers purchasing properties costing between $350,001 and $540,000 are currently entitled to a concession of $3,500 plus $3.50 for every $100 or part of $100 over $350,000.
The removal of the concession means from August 1 non-first home buyers will have to pay an extra $8,000 on a median-priced house in Brisbane – currently $430,000 according to RP Data figures.
The extra costs are likely to hurt the wallets of majority of home buyers – last year about 60% of all dwellings financed in Queensland in April were to non-first home buyers.
First-home buyer stamp duty concessions will remain for homes up to $500,000.
REIQ chairwoman Pamela Bennett says the removal of the concession for non-first home buyers will “wreak havoc on the Queensland property market”.
“The market is already the lowest it has been in many years, and this announcement will just make it worse,” she says. “The Government is obviously trying to fill the financial void that has been left by the weak property market and the subsequent lower stamp duty receipts, given the marked reduction in property sales over the past 18 months.”
According to Bennett, a better way to stimulate the economy would have been to “provide financial incentives for all buyers of all types of properties, which in turn would have increased activity and therefore helped the Government’s bottom line”.
Removal of the concession is expected to save the Government an extra $161 million in the coming financial year and $247 million the following year.
Other housing measures announced in the budget include $10,000 building boost grant, which will be available for all people building or buying a new-build home or unit priced up to $600,000 between August 1, 2011 and January 31, 2012.
The REIQ says the grant’s value will be greatly diminished by the increased rates of stamp duty, and it is also unlikely to assist more first home buyers into the market. “There has been a huge reduction in first-home buyer activity over the past year, and this grant is unlikely to change that state of affairs to any significant degree,” Bennett says. The grant means first-timers will be able to access $17,000 as well as stamp duty concessions when purchasing a new-build home or unit.
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REIQ slams Queensland's withdrawal of stamp duty discounts for non-first home buyers

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Landlords who incorrectly claim deductions in their tax returns are likely to face an inquiry from the Australian Tax Office.
The ATO has announced that it will contact 100,000 rental property owners this year who might have incorrectly claimed tax deductions.
About 1.7 million property owners use negative gearing – where the income generated by rental payments does not cover the interest on the home loan – to claim the losses as a tax offset.
This generated a net rental loss of $6.5 billion for the financial year, according to Tax Office figures.
Economists claim negative gearing has pushed up house prices and exacerbated housing affordability problems.
Landlords are entitled to claim a number of deductions immediately, such as interest paid on a loan to purchase a rental property or to purchase land to build a rental property.
They can also claim other expenses during the course of owning a property, including the cost of depreciating assets, structural improvements and most borrowing costs.
However, landlords are not entitled to make the following deductions:
<ul>
<li>deductions for rental properties not genuinely available for rent; </li>
<li>interest on a loan used to buy a home that does not produce income or on a private home;</li>
<li>borrowing expenses or interest on the portion of the loan used for private purposes, like buying a new car; </li>
<li>travel expenses when the main purpose of the trip is a personal holiday;</li>
<li>stamp duty charged by a state/territory government on the transfer of the property title or leasehold interest; </li>
<li>insurance premiums for policies that will pay off the loan in the case of death, disability or unemployment; and </li>
<li>solicitor fees for the purchase of the property and the preparation of loan documents.</li>
</ul>
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Landlords under investigation as ATO cracks down

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year. The developer also plans to redevelop the 13,088 sqm WIN Grand megasite into a new $500 million precinct with nearly 600 apartments and has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

Joel Robinson

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada files for trio of apartment towers in Campsie town centre</a>

Arada entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

Larry Schlesinger

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