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

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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.
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ASIC may expand powers to cover SMSF property investment

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

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

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

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

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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.
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FHB demand for new homes rising in NSW: RBA

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

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

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

Joel Robinson

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

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

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

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

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

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

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

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

Larry Schlesinger

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