<html><body>
A growing number of self-managed super fund investors are using related-party loans to buy property, but they should tread carefully, according to Heather Gray, a partner at DLA Piper and chairwoman of the Superannuation Committee of the Law Council of Australia.
Related-party loans are those provided by a member of the fund or by a family member and can seem an attractive option SMSF investors providing funding at a higher loan-to-value ratio (LVR) and lower interest rates than those provided by a bank.
But Gray says the issue of related-party loans came up very often for advisors in relation to “compliance issues”.
Her warning comes as Australian National Audit Office (ANAO) reports of the continuing growth of the SMSF sector, with 32,875 new funds registered in 2010-11 compared with 29,578 in the previous financial year, taking the total number of SMSFs as of June 2011 to 442,528 with 841,283 members.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/06/anao.gif" rel="shadowbox"><img src="/images/stories/2012/06/anaothumb.gif"></a>
Gray says the ATO views related-party loans in the same way it views investments made into the fund that are not at arm’s length.
“If the interest rate is too low the ATO may look at the deal and say, ‘This is a sham’ – it’s not really a loan but a contribution and just a way of getting money into the fund without breaching the contribution cap,” Gray told delegates at the 2012 Institute of Chartered Accountants in Australia’s Business Forum.
“You would then be taxed unfavourably because you exceeding the contribution cap and all the advantages of borrowing through your SMSF [to acquire property] would be lost.”
Conversely, if the interest rate is too high the ATO may rule that it breaches the sole purpose test through providing a “non-retirement” benefit to the members.
In nearly all cases, Gray says when the ATO has targeted a fund it has due to the fund not satisfying the sole-purpose test.
The sole-purpose test requires that an SMSF be maintained to provide benefits to members upon their retirement, or their dependants if the member dies before retirement.
According to the ANAO, since 2004–05, the number of SMSFs has increased by 64%.
SMSF sector is the largest superannuation sector by number of funds, and in 2011 held 30% of all superannuation assets ($407.6 billion).
</body></html>

lschlesinger-FZcF9M3vE6

More SMSFs borrowing from trust fund members to acquire property creating compliance issues

<html><body>
First-home buyers can still take advantage of significant financial incentives and savings as state and territory governments prepare their 2013-14 budgets.
Victoria will be the first to announce its state budget on May 7 with Queensland to release its state budget on June 4 and NSW on June 18.
However, time is running out for some first-home buyer grants, which are due to expire at the end of the financial year.
In 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.
And in the 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, is due to expire on June 30.
Nothing has yet been leaked about possible changes to first-home owner grants and stamp duty savings, but the Real Estate Institute of NSW (REINSW) is already campaigning for the reinstatement of first home buyer incentives in NSW for purchasers of existing properties as demand from this key sector continues to fall.
First-home buyer as a proportion of the mortgage market fell to just 14.4% in February, down from 15% in January, according to ABS figures - their lowest share of the market in more than eight years.
“We are calling on the Treasurer to not only reinstate first home buyer incentives that were removed in 2012, but to also explore additional opportunities to assist first home buyers to take their first step onto the property ladder,” says REINSW president Christian Payne. “It is not too late for the NSW Government to reverse its decision to abolish from 1 January 2012, the stamp duty exemption/concession and from 1 October 2012, the $7000 grant, for those buying existing properties.
A similar campaign could be on the cards in Queensland, which also abolished the $7,000 first-home owner grant for those buying existing properties last year in favour of a $15,000 incentive for those buying or building a new home.
<a target="_blank" href="/news">Changing the name of the scheme</a> from the first home owner construction grant (FHOCG) to the 'great start grant’ in March is unlikely to have made any difference to sentiment.
This is what is currently on offer across states and territories: 
Victoria
On January 1 this year, the state raised its stamp duty discount for homes priced under $600,000 from 20% to 30%.
The higher discount kicked in on January 1, 2013, and applies to both existing homes and new homes, delivering first-home buyers additional savings starting from $600 to a maximum of just over $3,000 on a house price at $600,000.
First-home buyers can work out their stamp duty savings using this table provided the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7" target="_blank">Victorian government’s State Revenue Office.</a>
Maximum stamp duty savings are now over $9,000. Combined with the existing first-home owners' grant of $7,000 there is nearly $16,000 in savings for those first-home buyers who are willing to venture into the property market in 2013.
The stamp duty discount will rise to 40% on January 1, 2014, and to 50% on September 1, 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the $7,000 first-home owners’ grant.
All added up it means Victorian first-home buyers purchasing an existing home receive the highest amount of financial support from their state government.
Further information can be found on the <a target="_blank" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/alltitle/First%20Home%20Owners?open">Victorian government first-home owner website</a>.
 
<hr class="system-pagebreak">
NSW
A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance.
This includes a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014.
Non-first-home buyers who buy a new home are eligible for $5,000 whether the new home is off the plan or newly built with a value up to $650,000, The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000, with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.
Further information can be found on the <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW first home benefits</a> website.
Queensland
A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000.
First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000.
For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.
Further information can be found the <a target="_blank" href="https://www.osr.qld.gov.au/first-home-owner-grant/fhog-fhocg-landing-page.shtml">Queensland first home owner grant</a> website
South Australia
South Australian first-home buyers have the chance to secure $23,500 from the state government, provided they build a new home.
The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into on or after October 15 and up to a value of $575,000, plus a further $8,500 housing construction grant (HCG). The housing construction grant replaces the $8,000 first-home bonus grant.
The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.
Concessions could rise to $39,830 if first-tome buyers buy an apartment off the plan in the Adelaide CBD under $400,000, where a stamp duty concession of $16,330 applies.
This part of a new stamp duty concession scheme 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.
An example where a $39,830 saving would be available to a first-home buyer is <a href="https://www.realestate.com.au/project-aria+on+gouger-sa-adelaide-600000551" target="_blank">Aria on Gouger Street </a>being developed by Brock Urban Projects, where two-bedroom apartments are priced from $335,750.
Up until June 30 2014, 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.
Further information can be found on the <a target="_blank" href="https://www.revenuesa.sa.gov.au/IamaFHB">South Australia first-home buyer</a> website.
 
<hr class="system-pagebreak">
WA
A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land. There is also The Home Buyers Assistance Account, which provides a grant of up to $2 000 for the incidental expenses of first home buyers when they purchase an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
Further information can be found on the <a target="_blank" href="https://www.finance.wa.gov.au/cms/content.aspx?id=3868">WA’s Department of Finance</a> website. 
ACT
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000. The territory government also offers a Home Buyer Concession Scheme (HBCS) to assist persons in purchasing a residential home or residential vacant land by charging stamp duty at a concessional rate. This scheme ends on June 30 and applies to homes valued less than $450,000 and land valued at less than $263,000.
Further information can be found on the <a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT Revenue website</a>.
Tasmania
A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value. Tasmanian first-home buyers buying or building a new home (including off-the-plan) are eligible for an additional $8,000 under the First Home Builder Boost Scheme, which applies from January 1 2013 to June 30 2014 if the qualify for the first-home owner grant.
Further information can be found on the <a target="_blank" href="https://www.sro.tas.gov.au/fhog">Tasmania first home buyer website.</a>
Northern Territory
For transaction after December 4 2012, a $12 000 first-home owner grant is available for an established home in the urban area or $25,000 outside of urban areas where the price of the property or construction of the home does not exceed $600,000. An urban area is 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.
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 calculator is provided to work out <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/StampDuty/StampDutyCalculators/Pages/PPRR-Calculator.aspx">stamp duty payable on a home eligible for the rebate</a>
Further information can be found on the <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default.aspx">NT treasury page.</a>
 
 
</body></html>

Still plenty to tempt awol first-home buyers as REINSW campaigns for reinstatement of $7,000 grant in state budget

<html><body>
Analysis of the latest Victorian first-home owner grant (FHOG) application statistics suggest first-home buyers (FHB) will not be easily corralled into buying  a new property over an existing one with individual market dynamics dictating buying preferences.
From July 1 a new $10,000 first-home owner grant will only be available to build or buy a new home in Victoria, but those who buy an existing home will <a href="/news">lose the existing $7,000 incentive.</a>
Property Observer analysis of $7,000 FHOG applications in the top 10 Victorian postcodes suggests FHBs are primarily making purchase decisions based on what type of property predominates and makes sense within any given market.
For example in postcode 3754, which incorporates the City of Whittlesea suburbs of Doreen and Mernda, where new housing estates are planned, nearly nine out of 10 grant applications are for new homes.
Similarly, in the Melbourne CBD (postcode 3000), where new apartment projects prevail, nearly two-thirds (61%) of FHOG applications are for new homes.
However, in contrast, postcode 3350, which incorporates established suburbs close to the Ballarat CBD, grant applications for existing homes outnumber those for new homes by a healthy margin.
Similarly in a suburb like Croydon, where most of the new housing blocks were sold and developed in the 1990s and early 2000s, FHOGs for existing home dominate making up 81% of applications.
In the top FHOG application postcode of 3029, comprising the suburbs of Hoppers Crossing and Tarneit, there is a fairly even split of grants for new and existing homes, reflecting both the prevalence of new master-planned housing estates such as Tarneit Gardens being developed by Peet and Williams Landing near Hoppers Crossing, being developed by Cedar Woods as well as a fair supply of existing homes.
Analysis of the figures suggest that a one-size fits all approach to incentivising FHBs is unlikely to be very successful as an overall strategy, though it may succeed in suburbs where new house sales predominates such as in the inner city or those on the outskirts.
Developers in some of the outlying suburbs, where grants for new homes predominate, may see a rise in demand for homes in their communities.
However, any artificial rise in demand may only encourage developers to push up their prices – as has been argued by many analysts (from BIS Shrapnel to Steve Keen) which would hardly be to the advantage of FHBs – though perhaps the housing construction industry would be in a better state.
Paul O’Regan, head of home loans at LJ Hooker, expects the new grant will benefit the housing construction industry and hopefully employment but highlights that the majority of FHBs of late have been for established homes “so there is a possibility that this will be impacted given grant has been taken away for established homes”.
He says the ending of previous FHOGs has resulted in kids staying at home longer as they try to save enough deposit monies to qualify for a home loan or getting greater assistance from their parents.
Some FHBs, he says are choosing to buy an investment property initially to enter the home loan market (foregoing any government benefits) and then moving in when they can afford to.
“First home ownership is now very much all about affordability and blue collar workers need to look at the house and land packages available in outer suburbs and weigh up transport / schools / shopping as well as sustainability such as the costs to run the house.
“The obvious preference is an established house close to work and the city but this may not practical or possible in a lot of cases,” he says.
Top 10 postcodes for Victoria $7,000 FHB grant applications (July 2012 to March 2013)
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="132">
Postcode
</td>
<td valign="top" width="132">
Total number of FHB applications received
</td>
<td valign="top" width="108">
Distance from CBD
</td>
<td valign="top" width="121">
For new homes
</td>
<td valign="top" width="123">
For existing homes
</td>
</tr>
<tr>
<td valign="top" width="132">
3029 - Hoppers Crossing, Tarneit
</td>
<td valign="top" width="132">
816
</td>
<td valign="top" width="108">
26kms
</td>
<td valign="top" width="121">
433
</td>
<td valign="top" width="123">
383
</td>
</tr>
<tr>
<td valign="top" width="132">
3977 - Cranbourne, Devon Meadows, Skye
</td>
<td valign="top" width="132">
792
</td>
<td valign="top" width="108">
43kms
</td>
<td valign="top" width="121">
506
</td>
<td valign="top" width="123">
286
</td>
</tr>
<tr>
<td valign="top" width="132">
3030 - Point Cook, Werribee, Derrimut
</td>
<td valign="top" width="132">
639
</td>
<td valign="top" width="108">
25kms
</td>
<td valign="top" width="121">
284
</td>
<td valign="top" width="123">
355
</td>
</tr>
<tr>
<td valign="top" width="132">
3064 - Craigieburn, Donnybrook, Roxburgh Park, Mickleham
</td>
<td valign="top" width="132">
610
</td>
<td valign="top" width="108">
26kms
</td>
<td valign="top" width="121">
401
</td>
<td valign="top" width="123">
209
</td>
</tr>
<tr>
<td valign="top" width="132">
3754 -Doreen, Mernda
</td>
<td valign="top" width="132">
435
</td>
<td valign="top" width="108">
26kms
</td>
<td valign="top" width="121">
384
</td>
<td valign="top" width="123">
51
</td>
</tr>
<tr>
<td valign="top" width="132">
3810 - Pakenham, Rythdale
</td>
<td valign="top" width="132">
394
</td>
<td valign="top" width="108">
56kms
</td>
<td valign="top" width="121">
247
</td>
<td valign="top" width="123">
147
</td>
</tr>
<tr>
<td valign="top" width="132">
3350 - Alfredton, Ballarat, Canadian, Invermay Park, Mt Clear, Mt Helen
</td>
<td valign="top" width="132">
298
</td>
<td valign="top" width="108">
0-10 kms from CBD
</td>
<td valign="top" width="121">
133
</td>
<td valign="top" width="123">
165
</td>
</tr>
<tr>
<td valign="top" width="132">
3136 - Croydon, Croydon Hills, Croydon North, Croydon South
</td>
<td valign="top" width="132">
272
</td>
<td valign="top" width="108">
27kms
</td>
<td valign="top" width="121">
67
</td>
<td valign="top" width="123">
205
</td>
</tr>
<tr>
<td valign="top" width="132">
3000 - Melbourne
</td>
<td valign="top" width="132">
256
</td>
<td valign="top" width="108">
0kms
</td>
<td valign="top" width="121">
156
</td>
<td valign="top" width="123">
100
</td>
</tr>
<tr>
<td valign="top" width="132">
3805 - Fountain Gate, Narre Warren, Narre Warren South
</td>
<td valign="top" width="132">
261
</td>
<td valign="top" width="108">
42kms
</td>
<td valign="top" width="121">
39
</td>
<td valign="top" width="123">
212
</td>
</tr>
</tbody></table>
Source: Victorian goverment State Revenue Office figures. 
</body></html>

Victorian FHB property choices unlikely to be dictated just by government incentives

<html><body>
The NSW government’s decision to only incentivise first-home buyers who purchase new homes from October last year appears to be gaining traction, the Reserve Bank has noted in its May monthly statement on monetary policy.
"For the state as a whole, there has been an increase in demand from first home buyers, which is likely to reflect the increase in government incentives to first-home buyers purchasing new homes relative to the incentives available for purchases of established homes," says the RBA.
The following graph prepared by the RBA shows the trend of rising first-home owner grants (FHOGs) in NSW for new dwellings and also a small uptick in Queensland, where a similar incentive scheme is in place.
In Victoria the trend is heading in the other direction, but this is ahead of the introduction of a <a target="_blank" href="/news">$10,000 FHB grant for new homes only from July 1</a>, with an expected rush among some FHBs to finalise purchases of existing dwellings.
<img alt="fhb_in_nsw" src="/images/stories/2013/fhb_in_nsw.jpg" width="470" height="402">
The <a href="https://www.propertyobserver.com.au/residential/everything-you-need-to-know-about-the-new-nsw-first-home-buyer-%2415000-grant/2012092756828/Page-1" target="_blank">NSW government provides $15,000 to first-home buyers</a> purchasing a new home up to $650,000 but has removed the previous $7,000 grant available for both new and existing FHBs.
A first-home buyer maximum stamp duty exemption of $20,240 is also available for new homes worth up to $550,000.
From January 1 2014 the $15,000 grant will reduce to $10,000.
</body></html>

FHB demand for new homes rising in NSW: RBA

<html><body>
Tasmania has joined NSW, Queensland and South Australia by announcing plans to axe the $7,000 first-home owner grant (FHOG) for established homes on June 30, 2014.
It will coincide with the end of Tasmania's First Home Builder Boost (FHBB) - a payment of $8,000 - on June 30.
From July 1, Tasmanian first-home buyers who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG. Those buying an existing home will receive no grant.
The withdrawal of the FHOG for existing homes was announced by Tasmanian premier Lara Giddins as part of her recent 2013-14 state budget announcement.
Giddins said the $7,000 grant for new homes only would provide "an ongoing stimulus to the building industry and creating jobs in the process".
"This change will bring Tasmania into line with other States such as Victoria, NSW and South Australia while saving an estimated $11 million per annum, which will be used to fund job-creating changes to the payroll tax," Giddins said.
South Australian Premier Jay Weatherill will deliver his state budget on June 6, but the state's revenue office website reveals that the already reduced $5,000 FHOG will end on June 30. The state's $15,000 FHOG for new homes is ongoing.
These are the key dates first-home buyers need to diarise:
All dates correct as of May 27 2013.
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" target="_blank" rel="nofollow">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 – Tasmania
Up until this date, Tasmanian first-home buyers of established homes are entitled to a $7,000 grant. From July 1, 2014, the grant is only available to those who buy or building a new home, including off the plan and house and land packages.
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.
June 30, 2016 - South Australia
Partial stamp duty concessions for first-time buyers who purchase an apartment off the plan in the Adelaide CBD will end on this date.
</body></html>

Tasmania and South Australia to axe first-home owner grants from June 30 2014: key dates to diarise

<html><body>
ASIC is considering increasing its powers to include oversight of property investments schemes recommended to self-managed super funds ahead of its report out on property spruikers targeting this sector due out in April.
The corporate watchdog currently has no responsibility for the oversight of direct property investments, a sector that is entirely unregulated.
In November ASIC said it was <a target="_blank" href="/news">undertaking limited surveillance” of financial advisers and accountants </a>over concerns that property spruikers are encouraging investors to set up self-managed super funds purely as vehicles for "dodgy" property investments.
Speaking before a Senate estimates hearing in Canberra last week, ASIC chairman Greg Medcraft, said it was warning investors at the moment “about some of the more aggressive spruikers we are seeing in this area”.
“It would cause us a lot of concern if this became a preferred vehicle for dodgy property spruikers to get back in the market.
“We do have concerns that less reputable property spruikers [are] targeting SMSFs to encourage them to invest, perhaps inappropriately, in direct property,” he added.
The estimates hearing was attended by the Australian Financial Review, which noted that property spruikers targeting self-managed super funds operate with the least amount of oversight and take as much as a 7% commission – around $35,000 – per property sold.
Around 85% of licensed financial advisers operate under the control of bank or a regulated entity like AMP and are not allowed to advice on direct property investments, but a small but significant minority do not operate under any form of bank oversight.
According to Property Investment Professionals of Australia (PIPA) a not-for-profit group lobbying the federal government to bring property investment advice into a regulatory framework, there are more than 80,000 professionals, employed either directly or indirectly within the property investment industry, giving opinions and advice to consumers.
ASIC, in speeches and submissions in the last 12 months, has signalled that it will at the very least look to improve the information available to consumers about setting up a self-managed fund and the risks associated with different investments.
Speaking before a parliamentary committee in September ASIC, Medcraft remarked that ASIC was limited in its oversight of financial advisors and restricts regular checks to the top 20 financial advisory firms to once ever 1.7 years with much wider gaps for smaller firms.
“We are not resourced to be looking at everybody, and that is a very important message. That is why education is really important. Australians are proactive in getting educated and understanding what they should be doing,” he said.
In July last year, ASIC commissioner Peter Kell told the Association of Financial Advisers National Roadshow the key message ASIC wanted to emphasise is that SMSF structures are not suitable for all investors including the need to formulate an appropriate investment strategy and consider alternatives to setting up a self-managed super fund.
</body></html>

ASIC may expand powers to cover SMSF property investment

<html><body>
Mortgage Choice CEO Michael Russell says he is certain state governments are re-assessing their first-home buyer grant schemes following dramatic falls in their share of the mortgage market.
Russell quoted ABS figures showing that from July to December, the proportion of first-home buyers taking out home loans fell from 18.6% to 14.2%.
A year ago (December 2011) their share of the market 20.2%.
Russell told Property Observer this was a "significant deterioration" and an area of "genuine concern.
He says changes to first-home owner grant schemes are not having a "particularly favourable effect".
Last year the Queensland and NSW governments withdrew the $7,000 first-home owner grant and replaced it with a $15,000 grant but only for those who buy or build a new home.
Russell says Mortgage Choice believes that all first-home buyers should be entitled to the first-home buyer grant.
"The notion of not indexing it it does not make sense.
"It needs to be indexed.
"I am sure it is being assessed at the moment, there will need to be action," says Russell.
He added that he does not subscribe to the notion that the grant has an inflationary effect - the theory that the grant pushes up house prices so first-home buyer don't actually get any benefit.
In his presentation to media <a href="/news">following strong interim results</a>, Russell noted that there had also been a declining in those refinancing, despite "incredibly attractive competitive interest rate and removal of exit fees" with the percentage of mortgage holders refinancing falling from 19.3% to 17.7%.
The good news for the market, he said was a rise in the number of homeowners looking to upgrade, with loans from this sector rising from 35 to 38.5% and the return of investors coming with their share of the market rising in both percentage of loans  and value, up from 31.4% to 33%.
</body></html>

State governments need to look at first-home buyer handouts: Mortgage Choice

<html><body>
Superannuation fund bosses have warned that funds could flow out of superannuation accounts following <a target="_blank" href="/news">government changes announced last week</a> that will see income streams above $100,000 taxed at a rate of 15% from July next year.
Alex Hutchison, chief executive at Energy Industry Super chief executive, said people with higher superannuation balances might consider other options outside of super such as property.
"More people will change their affairs to negatively gear and go into property," he said as part of a Money Management roundtable.
John Livanas, chief executive of public sector fund State Super warned of a “huge risk of outflows” from super as happened when the superannuation surcharge was introduced in 1996.
“The moment confidence reduces [in the super], the question as to whether to commute pensions come into question,” Livanas.
Also participating in the Money Management roundtable, Tom Garcia, chief executive of the Australian Institute of Superannuation Trustees, held similar concerns.
The most recent APRA figures show that total estimated superannuation assets increased to $1.51 trillion in the December 2012 quarter, a 14.6% increase over the 12 months to December 2012.
As of December 31 2012, self-managed superannuation funds held the largest proportion of superannuation assets accounting for 31.5% of assets with $474 billion compared with $410 billion at the start of 2012.
There were 496,000 SMSF funds at the end of the December 2012 quarter up from 460,000 at the start of the year.
Retail funds account for 26.4% of total super assets. Industry funds account for 19.5% of total assets, public sector funds 15.7% and corporate funds 3.8%.
</body></html>

Funds could flow out of super and into property following government changes: super bosses

<html><body>
The cautious approach adopted by self-managed super funds (SMSFs) considering investing in residential property is the right one, according to Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors.
Oliver, one of the more cautious economists commenting on the housing market, says most investors have sensed that the property market’s has already done its 20-year dash of solid growth.
Oliver says the last time property was a smart investment was in the early to mid-1990s, when investors would have probably seen a three- to four-fold increases in the value of their property investments.
He says it is possible for SMSFs to find an investment property worth buying, but it requires them doing a lot of homework and research.
In a recent investment report looking at which investments offered a decent yield in the current market of declining interest rates, Oliver was not upbeat about returns from residential property investments. He says the boom over the last 20 years has resulted in yields of just 3.7% on houses and 4.7% on apartments, before taking into account the costs of investing. Net yields, once costs have been taken into account, are just 1% for houses and 2.3% for apartments, says Oliver.
Oliver's gloomy outlook comes as figures from SMSF advisory firm Dixon Advisory show that only about 5% the firm’s 4,500 DIY super clients have used limited recourse borrowing rules to include property in their portfolio, reported the Australian Financial Review.
However, Oliver has toned down his sentiments about the degree to which residential property in Australia is overvalued.
In a video update on the housing market in July, Oliver said that a few years back AMP was saying that houses were overvalued by as much as 30% but “the degree of overvaluation has come down, particularly over the last couple of years”.
Now he says they are 10% to 15% overvalued.
“We have very expensive housing in Australia relative to the US and UK, which have seen sharp adjustments in recent years."
However, Oliver says a key difference between Australia and the US is that the US had a housing boom at the same time as a supply boom so as prices started to fall it was made worse by the new supply stream.
“Australia has not seen that – for the last decade we have been under-building, which shows up in our very low rental vacancy rates and the upward pressure on rents."
This, he says, will put a floor under prices.
Oliver says that over the very long term property and shares have offered similar returns to investors – around 11% per annum – which suggests investors should hold both in their portfolios.
According to Tim Coates,  property investment adviser with Dixon Advisory, in addition to requiring special borrowing arrangements, SMSFs need a  plan to pay off their investment property.
Coates says such decisions to invest in property could be affected by the government reducing the tax concessional contribution limits from $50,000 to $25,000.
</body></html>

SMSFs are right to be cautious on investing in property: AMP’s Shane Oliver

<html><body>
There are 23 suburbs in Melbourne where first-home buyers can purchase a one-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.
The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a target="_blank" href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide">first-home buyer guide.</a>
The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.40%, receipt of the $7,000 First Home Owners Grant, a loan term of 30 years, a 10% deposit, and benchmark Lenders Mortgage Insurance (LMI) and conveyance fees.
First-home buyers may be surprised to learn that the list includes inner city, café-lined suburbs like Carlton and Moonee Ponds, the bayside suburb of Williamstown and up-and-coming suburbs like Preston and Reservoir.
The full list starting from the cheapest is:
<ol>
<li>
<a href="/news">Noble Park</a>, $202 per week, median price of $155,000</li>
<li>
<a href="/news">Albion </a>- $232 per week, median price $177,000</li>
<li>
<a href="/news">Box Hill</a> - $257 per week, median price of $194,750</li>
<li>
<a href="/news">Carlton </a>- $257 per week, median price of $195,000</li>
<li>
<a href="/news">Frankston </a>- $260 per week, median price of $197,500</li>
<li>
<a href="/news">Footscray </a>- $325 per week, median price of $245,000</li>
<li>
<a href="/news">Ormond</a> - $339 per week, median price of $255,000</li>
<li>
<a href="/news">West Footscray</a> - $346 per week, median price of $260,250</li>
<li>
<a href="/news">Epping </a>- $347 per week, median price of $261,000</li>
<li>
<a href="/news">Brunswick West </a>- $365 per week, median price of $274,000</li>
<li>
<a href="/news">Moonee Ponds</a> - $366 per week, median of $275,000</li>
<li>
<a href="/news">Mentone </a>- $370 per week, median price of $277,750</li>
<li>
<a href="/news">Reservoir </a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Preston </a>- $381 per week, median price of $285,500</li>
<li>
<a href="/news">Williamstown </a>- $387 per week, median price of $290,000</li>
<li>
<a href="/news">Coburg </a>- $388 per week, median price of $291,000</li>
<li>
<a href="/news">Murrumbeena </a>- $391 per week, median price of $293,000</li>
<li>
<a href="/news">Flemington </a>- $392 per week, median price of $294,000</li>
<li>
<a href="/news">Bundoora </a>- $394 per week, median price of $294,000</li>
<li>
<a target="_blank" href="/news">Glen Huntly</a> - $401 per week, median price of $300,500</li>
<li>
<a target="_blank" href="/news">Thornbury</a> - $401 per week, median price of $300,000</li>
<li>
<a target="_blank" href="/news">Essendon </a>- $414 per week, median price of $310,000</li>
<li>
<a target="_blank" href="/news">Carnegie </a>- $414 per week, median price of $310,000</li>
</ol>
</body></html>

From Noble Park to Essendon: 23 Melbourne suburbs with one-bedroom apartments priced below the first-home buyer mortgage median

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News