<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Australia Post is one of the country’s most trusted institutions, powering one of the largest delivery networks in Australia. As online shopping continues to scale, Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online.

That scale of eCommerce activity has fundamentally changed expectations around how and when parcels arrive, and what happens when someone isn't home.

<h3>Problem solved with Parcel Lockers</h3>

The traditional alternatives to home delivery are far from ideal. Buildings can rely on reception teams to manage deliveries, which introduces ongoing staffing costs and liability concerns. Parcels can be left in common areas, which creates security and aesthetic issues. Or residents are redirected to nearby Post Offices for collection, which shifts the inconvenience rather than solving it.

<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/dVG5ChLHf7E?si=D9hQRGCBuzlSQBqK" title="YouTube video player" width="560"></iframe>

The data behind that frustration is significant. Nationally, around 9 per cent of deliveries are carded, meaning the recipient was not home and must collect the parcel from a Post Office. That figure reflects the national average reported between November 2025 and January 2026. In Melbourne, that figure rises to 20 per cent. In high-density living, it climbs again to 28 per cent. In other words, more than one in four deliveries in Melbourne apartment buildings results in a failed first attempt.

<h3>How Parcel Lockers work</h3>

The mechanics are simple. When a parcel arrives, the resident receives a notification either through the Australia Post app or via SMS. They scan a QR code, use their one-time PIN and the compartment opens. The parcel is secure, accessible and removed from the lobby floor.

Located in thoughtfully chosen, easily accessible areas, including external building interfaces, mixed-use precincts or shared communal zones, Parcel Lockers enhance convenience without requiring internal building access or additional operational oversight.

<h3>The scale of the network</h3>

This expansion represents Australia Post's largest investment in parcel infrastructure to date, building on momentum that began in 2011 when the first 24 Parcel Locker sites were introduced.

Today the Australia Post Parcel Locker network spans over 1,400 locations and more than 105,000 individual compartments, with major investment already underway to significantly expand the network further.

<h3>What it means for developers and building operators</h3>

A Parcel Locker bank is free to install and free for residents to use. That removes one of the primary barriers to adoption and shifts the conversation from cost to integration.

Australia Post's preference is to engage with developers during the design phase. That allows Parcel Lockers to be located in a considered, publicly accessible space that works for residents and the broader community. Retrofit is possible, and existing buildings can be assessed, but the strongest results occur when Parcel Lockers are treated as part of the core services plan rather than a bolt-on solution.

While the iconic Australia Post red is widely recognised, Parcel Lockers can also be delivered in more muted palettes such as beige or green to align with architectural intent.

For developers, they offer a tech-forward amenity that meets modern expectations, a reduction in courier congestion and building-management load supporting lower emissions and better ESG outcomes, and a meaningful marketability advantage in high-density, eCommerce-active areas, all at no cost for installation and maintenance, with Australia Post funding the program aside from power access.

<h3>Who's using them</h3>

Generational shopping behaviours show strong, sustained growth across all cohorts. Millennials (27–43) led online spend in 2024, contributing nearly $25 billion. Baby Boomers (60–78) increased their online spend by 17.6 per cent, becoming the fastest-growing adopters. Gen Z (13–26) and Gen X (44–59) continue to lean on delivery services as part of their everyday shopping habits.

Internationally, uptake is even more pronounced. Overseas markets are seeing rapid adoption by both developers and consumers, positioning Parcel Lockers as standard infrastructure in many new residential projects. For Melbourne's development community, this signals a shift in baseline expectations. Just as secure bike storage and dedicated parcel rooms have become more common, integrated Parcel Locker networks may soon be viewed as part of the essential service mix.

<h3>The bigger picture</h3>

Parcel Lockers aren't just a logistics fix. Developers invest heavily in lobby design, materials, lighting and landscaping to shape first impressions. Yet a stack of unattended parcels can undo that effort in an instant. Embedding parcel infrastructure early allows projects to respond to how people actually live today, supporting resident satisfaction, reducing operational strain and aligning with broader community and ESG outcomes.

As Belinda Quinn, Senior Transaction Manager – Retail &amp; Out of Home at Australia Post, puts it, residents increasingly expect delivery solutions that align with real life, are flexible, secure and available whenever they need them.

How Australia Post is solving the parcel problem for apartment living

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The Peninsula residential development site at Monterey Keys on the northern Gold Coast has been listed for receivership sale.
The current listing is 32,994 square metres of waterfront land in a gated community, which potentially consists of up to 62 individual titled lots.
CBRE Gold Coast managing director Mark Witheriff said the sale campaign is expected to generate interest from domestic house and land developers.
“The sale could provide an opportunity for the incoming owner to either sell down the individual waterfront lots or develop a themed waterfront community on the remaining land and super lot,” Witheriff says.
The Peninsula is located on the natural waterway of Saltwater Creek, offering views to Hope Island Resort from its Helensvale location.
Offers close on December 1.
Stefan Dopking and Quentin J. Olde of Taylor Woodings were appointed as receivers and managers of Kabale, the site’s owner, in June 2011.
The Monterey Keys residential estate was launched in 1992, initially comprising 1,100 lots on a 182-hectare riverfront site on the northern Gold Coast.
The site was purchased in a vacant state in 1998 for $12 million by Kabale Holdings, a company associated with the Dalley family, with a view to the development of an integrated residential resort.
It was a canal housing project with an estimated $300 million completion value.
In 1989 when Kabale went through a period of reconstruction the estate lay dormant, with sales beginning in late 1992 averaging 10 to 15 blocks a month for the first two years. The dry lots were fetching around $70,000 and the wet lost $130,000.
Most recently the developer was selling wet blocks from $495,000, which were re-priced over recent times down to $395,000.
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Last plot of Gold Coast's Monterey Keys up for receivership sale

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Lachlan Murdoch, the Channel Ten boss, has not yet confirmed the 2012 return of The Renovators series after its ratings failure. 
He has noted some of the sponsors of the $25 million series were keen for its return, “with reset expectations”.
“If we bring it back it will be in a different format and with different expectations,” Murdoch says.
Ratings for Channel Ten's The Renovators did not come close to the similar Channel 9 show The Block.
The ratings of The Renovators finale topped 1.26 million across the five cities, its best result since its 1.25 million August debut.
Some 56% of the $725,000 average nightly audience over the past three months were women.
The series was created by the television production house Shine Australia. The Renovators finale was October 12.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a>
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The Renovators will not return in same format, and possibly not at all: Lachlan Murdoch

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We are often asked about the impact of maintenance and capital improvements on direct residential property returns. More specifically, what are the annual performance leakages attributable to these costs? Today’s column will try and shed some analytical light on this murky subject. 
As an aside, I will not examine how the same issues afflict the far smaller “commercial property” sector – there is less than $300 billion of commercial, industrial and retail real estate compared with circa $3.6 trillion of housing – which nevertheless assumes far higher weights in institutional investor portfolios to the latter’s detriment. 
The very poor performance reported by Australian super funds in recent years has been in part driven by unnecessarily high exposures to risky listed property trusts (or REITs) and unlisted commercial property. As but one illustration, my first chart below compares the performance of Australian houses (capital growth plus 50% of gross rents to control for costs), which is the red line, with the ASX/LPT Accumulation Index, which captures all REITs and is denoted by the blue line.
Click to enlarge
<a href="/images/stories/oct251.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct251thumb.gif"></a>
For some reason, Australian super funds have loaded up on the blue line but completely overlooked the red one. Go figure. And which of these two lines gives more pause in relation to the perennially emotive “bubble trouble” question? We read so much crap about “house price bubbles”, but almost never hear about the far bigger bubbles that one finds in commercial property prices. The hard data suggests that the real “irrational exuberance” was attributable to institutional investors, like super funds, chasing too much commercial, as opposed to residential, property. 
Commercial property advocates try to dismiss the highly liquid “market pricing” afforded by the ASX LPT index and point to the much lower volatility (risk) numbers that derive from indices that purport to track “unlisted” portfolios of commercial real estate. The problem with these measures is that they are heavily influenced by “non-market” human valuations that typically ignore distressed sales (i.e., those properties selling at discounts during times of crisis) and thus artificially smooth returns. That’s akin to saying, “We are going to remove all the really badly performing companies listed on the ASX because they are distressed.” 
But enough venting. Let’s return to my central task today: quantifying the impact of capex and maintenance on residential property returns (the results are similar for commercial property). Some house price proxies, such as “median price” or “stratified median price” indices – of the kind reported by APM and the ABS – make no attempt to control for the bias induced by capital improvements (viz., renovations) and the other maintenance required to preserve the value of the underlying assets included in the index to mitigate depreciation. 
The repeat-sales indices reported by Residex are probably hampered by similar problems: rather than plucking the median or middle sales observation every quarter, Residex only looks at homes for which it can find both a purchase and sale, and then measures buy-and-hold returns via a regression-based index. This approach has the obvious drawback of excluding all newly built homes. Another problem is that over the average owner’s holding period of seven to eight years, many will carry out some structural improvements in order to boost the value they extract from that asset, and/or to offset the effects of the inexorable depreciation of the dwelling. 
Standard repeat-sales indices do not directly deal with this problem, and are therefore biased measures of house price changes over time. In the academic research literature, there are a number of modifications one can make to the basic repeat-sales methods used by the likes of Case-Shiller in the <country-region><place>US</place></country-region> to statistically control for non-linear changes in a dwelling’s value, which, it is assumed, arise as a function of capex (or depreciation in the absence of capex). But these are inherently imperfect. 
Unfortunately, we cannot know exactly what Residex does because, unusually for a supplier of house price indices, it has historically refused to provide specific details on the methodology it uses. 
Within Rismark’s library of house price index products, we privately produce all of the known techniques, including adjusted repeat-sales models that control for the abovementioned biases. 
By far the best, and most direct, way to address the problems induced by capex on time-series measures of housing costs is through the use of “hedonic” indices. These benchmarks are RP Data-Rismark’s preferred tools for evaluating changes in housing costs over time, and have become the gold standard for the RBA and most banks. 
Critically, a hedonic index explicitly controls for the exact attributes of all the homes included in the index, ranging from their precise location, number of bedrooms, number of bathrooms, the property’s type and land size, whether it has a garage or pool, and its view, among other things. 
As a filter in RP Data and Rismark’s data processing method, we also insist on being able to confirm the specific attributes of all homes within six months of the sales data that is used in the index. In this way, we know that the characteristics that the index relies upon – such as number of bedrooms, bathrooms, land size, etc – are up-to-date. 
Hedonic indices are designed to very explicitly compare like with like. They effectively take the highly heterogeneous “apples and oranges” that are the homes that transact over time, and normalise them such that we can identify the true underlying rates of capital growth attributable to regions, cities and the national market. 
This brings me back to my original question about the return leakages deriving from both high-value structural capital investments (i.e., development application-approved renovations), and other lower value, or non-DA approved, maintenance. 
 
<hr class="system-pagebreak">
 
In what follows, I will try and quantify these for you. It is important to bear in mind that these costs need to be weighed against the asset’s total returns: that is, both capital growth and normal or imputed rental incomes. They should not be deducted exclusively from one or the other. 
The ABS reports two measures of the value of alterations and additions (A and A) on a quarterly basis. The first is the Construction Work Done Series and leverages off the ABS’s Building Activity Survey. The Building Activity Survey (BAS) supplies estimates of the value of work done on alterations and additions with an approval value of $10,000 or more as collected via DAs submitted to Australian councils. 
In the ABS National Accounts a second, far broader measure of residential A and A is published. In particular, the National Accounts upwardly adjusts the BAS estimates to reflect the fact that a substantial amount of alterations and additions activity is not covered in the BAS survey (eg, work under $10,000, and work not done with permits). The National Accounts also boost the BAS A and A by an “undercoverage adjustment” to control for some reporting biases (eg, DAs tend to be undervalued). 
Our previous correspondence with the ABS suggested that the overall National Accounts adjustment factor, which varies on a state-by-state basis, is between four and five times. 
In the chart below we show the <personname>sma</personname>ller BAS estimate of A and A as a share of the value of the total private residential housing stock since 1986. This is calculated by multiplying the number of private dwellings each quarter with RP Data-Rimark’s measure of the all regions, all property types median dwelling price. Since 1986 the average BAS A and A has been 0.26% per annum. Click to enlarge
 
<a href="/images/stories/oct252.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct252thumb.gif"></a>
In the next figure we move to the more comprehensive A and A proxy reported in the National Accounts. Consistent with our prior correspondence, this total A and A estimate is on average 4.95 times larger than the BAS result (see the penultimate figure below). That is, the ABS believes that all forms of dwelling maintenance and capital investments, excluding the construction of new buildings, amount to about 1.26% per annum. Click to enlarge
<a href="/images/stories/oct253.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct253thumb.gif"></a>
<a href="/images/stories/oct254.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct254thumb.gif"></a>
A useful sanity test of these A and A estimates is to look at the value of depreciation as a share of the housing stock. In its National Accounts, the ABS spends considerable time computing the annual value of the depreciation of the private residential dwelling stock owned by individuals. In the final figure we have taken this depreciation proxy and divided it by the same estimate of the total housing stock value used above.
<a href="/images/stories/oct255.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct255thumb.gif"></a>
Unsurprisingly, depreciation, which averaged 1.2% per annum between 1986 and 2011, is almost exactly the same as average capital expenditure. In fact, it also tapers off during the 2000s, just as capex appeared to do. And it reconciles almost perfectly with the ABS’s estimate of the average dwelling life of 88 years. 
To summarise, this analysis suggests that the total value of maintenance and A and A as a share of the value of the dwelling stock is around 1.2% per annum (rounded down), all else being equal.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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How much value renovating adds to your home

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Kevin McCloud, the star of the increasingly popular TV series Grand Designs, fronted the decor home show Grand Designs Australia Live in Sydney today.
Crowds hovered as the cult television star cashed in on his international acclaim.
"I'm just a whinging Pom," he suggested, then spoke on what made great, rather than grand designs.
Judging unusual housing projects, Grand Designs first screened in Britain in 1999, airing in Australia on the LifeStyle Channel six years later, then on ABC1 a year later.
Earlier this month its 11th season premiered in the UK. Naturally the couple involved in the transformation of a derelict mill cottage in Northumberland, Stefan Lepkowski and Annia Shabowska, who began work in 2006, had a £250,000 budget, which was completely inadequate.
The series reportedly rates better in Australia than on Channel 4 in Britain.
McCloud told an Australian audience earlier this week that the biggest mistake people made renovating or building a home was "not planning enough" and "failure to work with good professionals."
McCloud said technology was making the home simpler, not more complicated.
McCloud admits his own house is typicall messy and says the kitchen is the centre of the home.
The exhibition space is filled with stalls highlighting interiors and home decor ideas for non-televised home grand designs.
It follows recent exhibitions that take place annually in London and Birmingham.
Grand Designs Australia Live will take place in Melbourne in September 2012.
While in Australia McCloud will catch up with one of his two brothers, who lives in northern NSW.
The show continues until Sunday. 
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Kevin McCloud talks grand designs in Sydney

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.Mistake #1 – Getting emotionally involved
Many homeowners undertake a home renovation for emotional reasons. Very often they fall ‘in love’ with the property. This emotional issue applies to both home owners and investors. One of the biggest mistakes homeowners make when undertaking a home renovation is to overcapitalise their property. 
Mistake #2 – Failing to understand the meaning of overcapitalisation
According to the Royal Australian Institute of Architects; many homeowners are paying thousands of dollars only to devalue their homes. One of the ways they do this is by overcapitalising which means to improve a property beyond its resale value. Overcapitalisation means you spend too much money on the property and are not be able to recoup these monies if you decide to sell it. A simple example would be if a homeowner spends $150,000 on home renovations and then decides to sell the property. The homeowner may find that the value of the property has only increased by $75,000 meaning that they have effectively lost $75,000 through the renovations. In effect, they have over-capitalised the property by $75,000. 
Mistake #3 – Not doing your homework on comparable market pricing
Unfortunately, it is important to recognise that most suburbs have a median sale price and an upper sale threshold specific to your suburb. Even different streets in your suburb have different price thresholds; that’s because your neighbour’s houses and the general streetscape have considerable influence on the value of homes in your street. Before renovating it is important to consider the housing styles, demographics of your suburb, and sale prices achieved of other homes in the area that have recently sold.
Mistake #4 – Under-estimating all of the costs involved in building
This is one of the biggest mistakes that homeowners make when renovating their homes. Homeowners typically under-estimate the costs involved in building. Such as; demolition costs, professional fees, contingencies for variations, foundation changes due to soil conditions, fit-out and landscaping, kitchens and bathrooms, escalation of building costs and delay and acceleration costs to finish the project on time. 
Mistake #5 – Poor selection of a builder
Property owners who decide to employ a builder to undertake home extensions also encounter problems because they have not undertaken sufficient research on the experience of the builder, and their past record in undertaking renovations. Especially their “variation claims” history, often Builders locks unsuspecting homeowners into building contracts which cost homeowners thousands in variation costs. Another common mistake is to let the Builder provide the design, and therefore restrict the homeowner from getting competitive quotations upon the Builders design. 
 
Mistake #6 – Doing it DIY to save money
Some people also make the mistake of trying to undertake home renovations themselves. This can prove costly in time and is financially unwise because a poor standard of work will only devalue the property. Character homes, in particular, require a higher standard of renovation work and you may need to carefully select tradesmen with past experience in this area to ensure that the work is properly completed. If you decide on a major renovation don’t cut corners doing it yourself. There is no such thing as a cheap renovation. Ultimately, it will impact on the resale value of the property or you will spend more funds at a later date to fix the original faulty work. Always seek competent, professional advice and trades people before undertaking a major renovation.
 
 
Mistake #7 – Failing to stick to a budget
A common problem is that home renovators do not operate with a strict budget and are unable to complete planned renovations because of a lack of money. This mistake results in homeowners financially overextending themselves through a lack of financial planning. The “Catch 22” is that renovators often can’t then sell their ‘half completed’ renovation and end up in severe financial hardship. 
Mistake #8 – Poor functional design layout and design
A very common problem is that home renovators end up spending too much on a poor functional layout because of the limitations of the existing building. In many cases the homeowner would have been better off, to have demolished the existing house and start all over again. Another common problem is where the style of the renovation is inconsistent with the rest of the house; you’ll often see houses for sale with a modern extension that clash with the rest of the house which is still stuck in the 1970’s. These properties are “lemons” on the market and typically homeowners lose money on these renovations.  
Mistake #9 – Spending money on the wrong things
If you are living in $100,000 house you will not get a good return on an investment in a $35,000 bathroom. Swimming pools are a good example of additions to a property that often doesn’t add value. Many buyers do not want the work, expense, and potential for accidents that come with a pool. The general rule is that you should not spend more than 25 per cent of the value of your home on home improvement renovations. 
Mistake #10 – Underestimating the disruption to your lifestyle
Undergoing a major renovation and living through it, is often overlooked by most home owners. The disruption to your lifestyle, the mess, the noise and restrictions is something that should not be discounted. If you are having major renovation (especially if you are a family with young children) consider moving out and renting elsewhere during the construction phase. 
Before you make the decision to renovate or buy a new house, carefully ask yourself the following questions: 
1. Decide what it is you are looking for in a final result and ask yourself if it will be cheaper to buy a different home or to renovate your old one. 
2. What is the average selling price of homes in your area? 
3. Will renovations alter the appearance of your home so that it appears out of place in the neighbourhood? Check the styles of other homes in the area. Keep in mind it might be a better idea to match or keep in step with the styles of other homes in the area. A poor design could devalue your home by thousands of dollars. 
4. How much will renovations cost compared to what you paid for your home. What is the expected increase in value as a result of the renovations? Will the renovations actually cause your home to lose value?
The decision to buy a new home or to renovate is not one to be taken lightly. It is recommended that you think through every aspect of the project prior to getting started. Seek the advice of a local professional architect/building designer as well as a real estate professional if necessary to determine how the proposed renovations will affect the value of your home. 
Gary Pemmelaar is a co-principal of <a href="https://www.rhglenelg.com.au/" target="_blank">Raine &amp; Horne Glenelg</a>. Gary is a civil engineer and hold a builder's licence in SA. He has considerable experience in both property develoment and renovations.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a> 
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Top 10 mistakes home renovators make

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With all the renovation shows on television there’s currently a lot of interest in buy, renovate and sell projects.  Here’s a real example of why would-be renovators should consider a buy, renovate and hold strategy rather than choosing to sell off their asset.
 
Property summary:
 
Location: <a href="/news">Cremorne</a>, Sydney
Property type: Three-bedroom, two-bathroom apartment 
A three bedroom apartment was purchased in <city><place>Sydney</place></city>’s <place><placename>North</placename><placetype>Shore</placetype></place> in original condition. The property boasted <place><placename>Sydney</placename><placename>Harbour</placename></place> views from the kitchen, lounge and dining rooms. 
The apartment was gutted with walls removed between the kitchen and dining and lounge rooms. This opened up the living space and increased the natural light in the apartment. A false ceiling and down lighting were added to the kitchen to define the space. 
Both bathrooms were gutted and redone from scratch. A brand new kitchen was installed complete with a washer/dryer in a cupboard, allowing the tenants to do their laundry without leaving the apartment. The renovation was completed with new paint, blinds and light fittings over a six week period. 
The numbers:
<ul>
<li>Purchase price: $805,000</li>
<li>Post renovation value: $1,025,000</li>
<li>Total added equity: $220,000</li>
<li>Renovation costs: $101,500 (includes project management fees and holding costs)</li>
<li>Manufactured equity: $118,500</li>
<li>Pre renovation rent: Estimated $675 per week (owner-occupied at time of purchase)</li>
<li>Post renovation rent: $850 per week</li>
</ul>
After renovation the owner had the option to hold onto the property as an investment or sell the property and pocket any profit.  Both options are examined below using the figures from this real example.
 
Renovate and hold:
The benefits of holding onto this property after renovation are twofold.  Firstly, the increased equity of $118,500 can be used as security to borrow against to buy another property or invest elsewhere. 
Secondly this renovate and hold strategy example resulted in an increased rental rate of $175 per week.  This rental increase ($9,100 per annum) more than covers the interest cost of the funds required to undertake the renovation ($101,500 x 7% = $7,105 per annum). In this example the renovation increased the return on investment both in capital value and cashflow. 
It’s important to note that under a buy and hold strategy the purchasing costs are apportioned over the period the property is held and are only realised upon the sale of the property.
 
Renovate and sell:
Most people who undertake a buy, renovate and sell project complete the transaction within a 12-month period.  Therefore they receive no tax concessions on the profit unlike the owner who chooses to hold the property for more than 12 months. 
Under this strategy, the owner must account for the buying and selling costs as the asset is being realised with the major expenses in this example totalling $65,971 as outlined below:
<ul>
<li>Marketing - $1,500 (web, signboard, floor plan, brochures) </li>
<li>Selling fees - $22,550 (2.2%)</li>
<li>Stamp duty - $41,921 </li>
</ul>
After costs the owner is left with a profit of $52,529 which is then taxed at their marginal tax rate resulting in a modest return for the work invested.
 
The final word:
The example above illustrates the difficulty in making a reasonable profit when undertaking a buy, renovate and sell project in comparison to the financial gain and flexibility provided under a buy, renovate and hold strategy. 
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a href="https://%20www.epspropertysearch.com.au" target="_blank">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing.  
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a> 
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After you renovate, sell or hold? A case study

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
<a href="https://www.propertyobserver.com.au/developments/fender-katsilidis-ever-changing-place-in-melbourne-s-skyline/2011101351927?source=flicker4" target="_blank">With the success of the Melbourne Terrace Apartments</a>, a newly established firm and several landmark buildings under its belt, the big-ticket commissions began rolling in for Fender Katsalidis.
<img src="/images/stories/richmondsilos.jpg">
There was the Richmond Silos (pictured above), converted from old grain silos and built in 1996, the Ian Potter centre (1998), the Republic Tower, HM@S Tower (pictured below) and Bendigo Art Gallery (1999), and New Quay at Docklands (2004).
<img src="/images/stories/hmas.jpg">
But one building would say more about the ambition of Fender Katsalidis than any other – a gleaming, gold-tipped pillar called the Eureka Tower, which at 92 storeys Nonda Katsalidis insists is “still the tallest building in the country”, despite that title officially belonging to Q1 on the Gold Coast. (To set the record straight, Katsalidis says the roof height of Q1 is 275 metres, Eureka’s is 297, he reckons Q1 cheated by adding a 45-metre spire on top, “but let’s not start that argument again!”.)
<img src="/images/stories/eurekafka.jpg">
Katsalidis says designing the Eureka Tower (pictured above), which turns five years old this month, was always about creating “an iconic, huge thing”, and the firm certainly achieved that.
When awarding Eureka Tower the Royal Australian Institute of Architects Harry Seidler Award for Commercial Architecture in 2007, the jury said it “clearly demonstrates that commercial architecture can be about more than the ‘bottom line’ – it can contribute a broader value to the life and character of the city”.
And Eureka Tower’s bottom line is still doing just fine. According to end-of-financial-year reports for 2010 compiled by Harcourts City Residential, the average selling price for apartments in the Eureka Tower in 2010 was just under $1.047 million, up from $707,685 the previous year. The median sale price for Southbank apartments in 2010 was $602,900.
Katsalidis is coy about Eureka’s financial success. “It’s still the slickest-looking building in Melbourne,” he says. “It’s a very striking building; it’s used as the backdrop in the news and is a symbol for <city><place>Melbourne</place></city>.”
With Eureka under its belt and its stamp firmly placed on Melbourne, Fender Katsalidis set about looking for opportunities outside the city where the firm made their name.
<img src="/images/stories/monafka.jpg">
Katsalidis says his most recent highlight was designing entrepreneur David Walsh’s “adult <place>Disneyland</place>” MONA (the <place><placetype>Museum</placetype> of <placename>Old</placename></place> and New Art) in <city><place>Hobart (pictured above)</place></city>, carved into the sandstone cliffs of the <place><placename>Berriedale</placename><placetype>Peninsula</placetype></place>. Some have called it Katsalidis’ masterwork and it’s even been labelled the “Bilbao of the South” a reference to Frank Gehry’s Guggenheim.
MONA aside, the majority of Fender Katsalidis’ work is still focused on creating new residential possibilities, with much of its work being on large planning projects, even designing entire cities.
<img src="/images/stories/fkakl.jpg">
In <city><place>Kuala Lumpur</place></city> the firm has designed luxury apartments near the <place><placename>Petronas</placename><placetype>Towers</placetype></place> and in the millionaire’s precinct of Taman Duta (pictured above). In Thailand the firm designed several luxury resorts in Phuket and on the east coast of Gibraltar, an entire residential estate on the waterfront.
In Dubai, the firm consulted on the much talked-about Palm Jebel Ali, a reclaimed island designed to resemble the fronds of a palm tree, which developer Nakheel still hopes will house more than 250,000 people by 2020 although construction on the development has stalled. The firm was involved in some of <city><place>Dubai</place></city>’s most ambitious projects, but most stalled or were abandoned when in the 2008 property crash, when house prices plummeted 64%.
Karl Fender, quoted in a 2009 article about the Dubai crash in The Age, said “Dubai was a place in a hurry. It was based on a hard-to-define marketplace, and built on a frenzy of speculation.”
Despite Dubai’s well-documented property crash, its initial boom gave Fender Katsalidis architects the chance to push their design skills and imagination to a new level.
Today, the firm hires nearly 100 staff, but Katsalidis says he and Fender are still personally involved in every project and they are still as ambitious as ever. Their reach is now global, but they still call Melbourne home and aren’t done there yet.
<img src="/images/stories/phoenix.jpg">
Not just happy to build the tallest skyscraper in Melbourne, now the pair want to design the slimmest. <city><place>Phoenix</place></city> 82 (pictured above)looks set to make quite an impact on <street><address>Flinders Street</address></street>, with a unique trail of blue light “snaking” down its side. The site is only 6.7 metres wide and 24.3 metres deep. The 28-storey building will rise 88.5 metres, with one apartment on each floor.
Maxx Apartments in St Kilda has just begun construction and will be a mixed-use development incorporating two commercial storeys and 11 residential. Apartment prices range from $387,000 to $640,000.
<img src="/images/stories/bendigoart.jpg">
Fender has also been invited back to the Bendigo Art Gallery (pictured above) to assist with a $7.55 million expansion it hopes will give it more room to host big-name exhibitions.
Fender, who over the years has called the Melbourne Terrace Apartments, the <place><placetype>Republic</placetype><placetype>Tower</placetype></place> and <city><place>Eureka</place></city> home, says he had no trouble believing high-rise living would take off in <city><place>Melbourne</place></city>. As an expat from 1975 to 1995 he lived in high-rise apartments in London, Hong Kong and Rome and his many years as a happy apartment dweller would help shape his strong belief that high-density living is not only the answer to burgeoning population growth, but that it can provide the same sense of community, even more, than the long sprawl of the outer suburbs, which he calls “anonymous” and a place where “every man is an island”.
Fender Katsalidis’ most ambitious, or at least tallest, building is still to come. Katsalidis is tight-lipped on details, but confirms the firm has been commissioned to design a 100-storey, 500-metre skyscraper in Kuala Lumpur in mid-2012. It will be the firm’s tallest yet and just scrape through to be the second tallest building in the world. Further proof perhaps that Fender Katsalidis’ rising ambition is far from satisfied.
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Onwards and upwards in Kuala Lumpur for Fender Katsalidis after Eureka moment

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Stand anywhere in the Melbourne <stockticker>CBD</stockticker> and it’s almost impossible for an upwards-glancing eye not to catch one of Fender Katsalidis Architects’ distinctive residential towers.
<img src="/images/stories/eurekafka.jpg">
There’s the gold-capped peak of Southbank’s Eureka Tower (pictured above), the rocket-like Republic Tower (pictured above) on the corner of Queen and La Trobe streets, the revolutionary Little Hero building and its Lego-style construction method in Russell Place, and just about all of New Quay in the Docklands, to name just a few.
<img src="/images/stories/republic.jpg">
Fender Katsalidis buildings are typically low-impact, high-density designs that aim to create a “vertical neighbourhood” for <stockticker>CBD</stockticker> dwellers.
Both Karl Fender and Nonda Katsalidis are public proponents of high-density living as opposed to the flat urban sprawl embraced by the baby boomers.
“You have to keep your mind open to new housing typologies that use less land, and in so doing give greater community facility,’’ Fender says. ‘‘Because the idea of just building houses cheek-by-jowl and going on forever is just not sustainable”. Although he does add: “You don’t have to go building Eurekas all over town”.
Most of FKA‘s apartments are designed to be relatively affordable, which ties in with the firm’s outspoken intention to convince the average buyer to embrace high-density living. Affordability, Fender says, is the key to encouraging buyers to choose an apartment over traditional house and land.
Apartments in the upcoming <street><address>Fulton Lane</address></street> development for example are being offered at a starting price of $365,000. The development is the first in Australia for Malaysian group SP Setia, which reported in June that 70% of Fulton Lane’s apartments had sold off the plan in just three days.
At <street><address>108 Flinders Street</address></street>, where construction has just commenced on a 12-storey development tucked in behind AC/DC Lane, a one-bedroom can be snapped up for $390,000. Developer Riverlea announced in August that 85% of 108’s apartments were sold before construction began in September.
While FKA’s main focus is on affordable high-density living, the firm does have its trophies. At time of writing, the Eureka Tower’s penthouse, which occupies the entire 84th floor of the building is on the market. It’s expected to fetch upwards of $13 million.
<img src="/images/stories/melbourneterrace.jpg">
Karl Fender and Nonda Katsalidis’ <city><place>Melbourne</place></city> footprint began with the Katsalidis solo project Melbourne Terrace Apartments (pictured above), just near the Queen Victoria Markets on <street><address>Franklin Street</address></street>. Opened in 1994, it was one of the first residential developments to come out of Jeff Kennett’s Postcode 3000 planning policy in the early ’90s, aimed at encouraging Melburnians to live in the <stockticker>CBD</stockticker>. The plan had its critics, – ‘‘where will people buy milk, Myer?’’ was a running joke – but they were ultimately proven wrong as Melbourne was put on a pedestal as an example of how to reinvigorate a city centre so it becomes not only a place of work, but also of entertainment, and for many, a place to live.
Considered an early test case for the ambitious Postcode 3000 strategy, Katsalidis’ Melbourne Terrace Apartments were lauded as a new model for medium- and high-rise living in the <stockticker>CBD</stockticker>. Its success would convince architects and planners that <stockticker>CBD</stockticker> living was not only possible, it had the potential to move <city><place>Melbourne</place></city> towards gaining the ‘‘most liveable city’’ badge it proudly wears now.
It also established Nonda Katsalidis as an architect to watch in <country-region><place>Australia</place></country-region>. In 1996, he would merge with Bob Nation and Karl Fender to create Nation Fender Katsalidis, which would go on to build some of Melbourne’s most recognisable landmarks.
On Monday we will look at the next step for Fender Katsilidis and its projects outside Victoria. 
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Fender Katsalidis' ever-changing place in Melbourne's skyline

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Whenever I have watched reality shows what resonates most with me is an obvious lack of due diligence. How can you have an advertising campaign that any other vendor in Australia would dream of only to see failure and disappointment on auction day?
The other problem is that in the vast majority of cases that I’ve seen the contestants have little to no experience with renovation yet by the end of the series they give the impression that they are master builders.
On top of that the general public gets the impression that they have cut corners given the shows focus on a tight renovation budget. This creates a no-win situation, which has been reflected in the sales evidence.
The contestants keep running down to the local hardware store (which is usually a sponsor) to buy appliances, where they would be paying full retail as against sourcing the products far more cheaply over the internet. With better planning in advance these appliances could be purchased much cheaper – although that does not fit in with the strict timing schedules of the shows.
The problems facing these shows are sourcing the right properties in the right locations. This is nearly impossible, especially given that they have to find multiple properties the fit the criteria. When they find a compromise more often than not they have paid too much acquiring the properties and the cost of renovations combine to deliver over-capitalised properties. It is then very difficult to make the money back at auction.
I don’t see a great future with these reality realty shows given they are not financially viable. It’s an expensive gamble if you are not an owner-builder who is developing the property to live in.
It is well-documented around the country that punting on real estate using that formula is a recipe for disaster – and they keep delivering this conclusive evidence, don’t they?
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a> 
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robertsimeon-hRNTwJyXkQ

Lack of experience, research and planning a problem with reno TV

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
We recently looked at the new draft <a href="https://www.propertyobserver.com.au/news/tips-for-borrowing-through-your-diy-super-for-property-investment/2011101151890" target="_blank">ATO ruling surrounding borrowing via your self-managed super fund and property</a>. The rules are more lenient, but investors still need to be careful.
Understand the difference between repairs and improvements of geared property
 
Detail: Under last year’s amendments, superannuation law specifies that money borrowed by a SMSF under a limited recourse loan arrangement must only be used to buy and maintain an asset – not to improve it.
Draft ruling: An improvement of an asset, in contrast to a repair, will improve its efficiency and/or substantially increase its value. 
Crucially, a fund can use its own money to improve a property – provided those improvements are not so extensive so as create a new asset, according to the ruling. 
The draft ruling stresses that what the ATO regards as the difference between repairs and improvements for tax deductibility is not necessarily the same as its interpretation in relation to SMSF gearing. Meg Heffron, co-principal of specialist SMSF administrator Heffron and a former member of the Cooper superannuation review, says the draft ruling shows the ATO will take a “fairly liberal view” about the difference between a repair and an improvement. 
The draft ruling states that a repair may include restoration to an asset’s former appearance or condition – without changing its character. 
“These issues will always be a matter of degree,” comments Heffron, “but the ATO clearly envisages quite a wide range of activities which might incidentally add to the value of the property falling into the repairs category. 
“This is obviously highly beneficial to funds that have borrowed to acquire real property.” 
Case studies from draft ruling: A SMSF borrows to buy a house with broken windows. Not surprisingly, the ATO would treat the replacement of the windows as a repair, not an improvement. Therefore, the new windows could be financed under a borrowing arrangement.
SMSF trustees renovate a rundown house immediately following its purchase. Under the draft ruling, the ATO would treat renovations that improve the efficiency of the asset and substantially increase its value as an improvement. This means that the renovations could not be financed under the loan arrangement. 
A SMSF renovates a property and adds a bathroom. Property investors, of course, commonly undertake such projects. The ATO would regard the addition of the bathroom as an improvement.
A kitchen is restored following a fire that damages the stove, benches and walls. Under the draft ruling, the ATO would regard the kitchen’s restoration as a repair. But if the kitchen is extended at the same time, the extension would be treated as an improvement. 
A SMSF adds a swimming pool or garage to a geared property. The ATO would view the changes as improvements, which could not be financed under a borrowing arrangement. 
Understand what improvements create a new asset 
 
Detail: A basic challenge for property investors is whether proposed improvements to a geared property are so extensive as to effectively create a new asset. 
Under superannuation law, a fund cannot even use its own cash, let alone borrowed money, to finance improvements to a geared asset that lead to the creation of a new asset. The fund would have to wait until the gearing expired before using its own money to pay for such improvements. 
Drafting ruling: “The ATO has previously taken the view that improving a property will necessarily trigger the replacement of one asset, the unimproved one, with a new asset,” says Heffron. 
“The ruling takes a far more liberal position,” she says, “and indicates that in the ATO’s view, not all improvements will necessarily result in a replacement asset.” 
The draft ruling gives the ATO’s opinion that an improvement that fundamentally changes the character of an asset amounts to the creation of a new asset. 
Case studies from draft ruling: A SMSF owns a geared house and land. The house is then demolished and replaced with three strata units. New assets would be created. 
A SMSF owns a geared house and land. The land is rezoned and the house converted into commercial premises. Again, a new asset would be created. 
A fire destroys a fund-owned, four-bedroom house. The fund uses the insurance payout to build a replacement four-bedroom house. The fundamental character of the property has not changed. The proceeds of an insurance payout could finance the replacement.
For more on self-managed super and property, download our e-book.
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