The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

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?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

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Demand from Sydney and Melbourne residents looking for a sea change is one of the major impacts on the Sunshine Coast market, according to Herron Todd White’s (HTW) recent report.
The property valuation firm says that a leading indicator for interstate migration to the region is sentiment in the two largest capital city markets, particularly the higher end beachside and prestige hinterland properties.
These are attractive to retirees and sea change buyers making the move north, the firm says.
“Prestige beachside areas such as Noosa and Sunshine Beach are influenced by demand from southern buyers as are some prestige hinterland areas including Maleny and Doonan,” the report states.
“Employment levels also influence demand for local property and, generally speaking, when the tourism and construction industries are strong, the local residential market follows.”
 “The Sunshine Coast has always been a popular investment location for both dwelling and units alike, with many holiday let units owned by intra and interstate investors.
“Like most areas, any significant interest rate rises will likely impact many investors and we may see an increase in the supply of investor stock hit the market, which is what has happened in the past.
“This may also be a similar issue for some of the newer affordable estates which have a higher proportion of investment properties as opposed to owner-occupied stock.”
HTW also pinpoints the University Hospital as a primary influence on demand for property in the sub-$700,000 region.
“Land prices, as well as established housing, are continuing to increase with demand remaining strong.
“Currently, stock levels across the coast are low and we are seeing multiple offers becoming more common again.
“Units are also improving although not to the same extent as traditional housing.
“With a number of local infrastructure projects still to be delivered, we’re expecting another good year for the residential property market on the Sunshine Coast.”
Examples of recent sales in the area include a Parrearra two bedroom unit that sold for $395,000 (pictured below).
It was sold by Tanya Murphy from Stewart Property - Mooloolaba.
Located at 32/57 Grand Parade, the unit comes with two bedrooms, modern kitchen with stone benches, open plan living and two car parking.
The complex facilities include a large lagoon pool, outdoor spa, gym and BBQ areas.
It is 5.2 kilometre from the Sunshine Coast University Private Hospital and Sunshine Coast University Hospital, medical development and University of the Sunshine Coast.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/6/parrearra.jpg" alt="">
Another new offering currently on the market is a Bli Bli three bedroom house with a price guide of $399,000 (pictured below). 
<a href="https://www.realestate.com.au/property-house-qld-bli+bli-127930126" target="_blank">The 23 Conway Court house</a> features open plan living and dining zone, three generous sized bedrooms, and kitchen with island bench.
It is conveniently located home offers an easy-care layout for effortless family living.
Set on a 731 square metre parcel, it's an easy stroll to Bli Bli school and moments to local shops.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/6/Bli%20Bli%202.jpg" alt="">
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j.ballantyne1990-6AQqhLzZaK

Sea change seekers setting sights on Sunshine Coast: HTW 

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Moe, a suburb in Latrobe Valley in the Gippsland region of Victoria, ranks among the cheapest locations in Australia, according to Investar.
Investar suggests the suburb's median unit price sits on $60,000.
It is followed by Queensland's Woree and Tasmania locality, Queenstown.
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A Moe single bedroom unit current on the market is priced at $60,000 (pictured top).
Located in the centre of the town, the<a href="https://www.realestate.com.au/property-unit-vic-moe-124324898" target="_blank"> 45/48 Haigh Street unit </a>comes with one bedroom, laminate kitchen with electric cooking, and combined bathroom and laundry.
It is marketed as being close to schools, shops and transports. 
Another two bedroom unit has been recently sold for $118,500 by Graeme Yalden from Stockdale &amp; Leggo Moe (pictured below).
Located within an easy walking distance from town centre,<a href="https://www.realestate.com.au/sold/property-unit-vic-moe-127191086" target="_blank"> the 4/25 May Street</a> home comes two bedrooms, one bathroom and one parking space.
Additional features include quality blinds, drapes and floor coverings, and R/C split system.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/3/425%20may%20st.jpg" alt="">
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Moe, Victoria offers Australia's cheapest units

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A two bedroom apartment in Port Douglas has sold at auction for $241,000.
<a href="https://www.realestate.com.au/sold/property-apartment-qld-port+douglas-127709430" target="_blank">Positioned at 8/1 Osprey Close</a>, the ground level apartment offers two bedrooms, open plan kitchen/dining/living, and a private patio with garden views.
Other features include secure parking, shared pool and BBQ pavilion.
It is close to shops, parks, the primary school and beach on St Crispins Avenue.
It was presented by Mardi Rae from Ray White.
The suburb's median unit price sits on $260,000 according to CoreLogic. 
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Port Douglas mortgagee apartment sold for $241,000

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Sydney's Northern Beaches edged out the Eastern Suburbs as the weekends top performer. 
Parramatta was the worst performer by a big margin, clearing just 36 percent of its stock on the weekend.
One of the priciest Northern Beaches homes to sell was near waterfront at <a href="https://www.realestate.com.au/sold/property-house-nsw-newport-127917054" target="_blank">77 Prince Alfred Parade at Newport</a> (above), which fetched $2.77 million.
The four bedroom, two bathroom home which last traded for $1.65 million in 2014 had a price guide of $2.5 million.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/sydney_regions.jpg" target="_blank">to enlarge.</a>
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Sydney's clearance rate sat at a steady 66 percent, the second strongest in the country behind Tasmania.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/auctions.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/auctions.jpg" alt="">
 
 
 
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jrobinson-rf4aSBido9

Northern Beaches Sydney's strongest auction performer

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Tasmania topped the nation's highest clearance rate, but Sydney returned to hold the mantle of the best performing mainland auction market.
Melbourne slipped below Sydney.
Tasmania did only see the five auctions, in comparison to the 551 in Sydney and 905 in Melbourne.
Last week Sydney out-cleared Melbourne by just 0.6 percent, but the margin this weekend was closer to three percent
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/auctions.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/auctions.jpg" alt="">
Both were well down on their clearance rates from last year. 
With similar stock numbers from this time last year, Sydney were six percent off what they cleared, while Melbourne were well over 10 percent down.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/sydney_clearance.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/sydney_clearance.jpg" alt="">
Melbourne's recent clearance rates have been tracking lower than they were in mid 2016, with results only marginally different than they were three years ago after the spike in recent years. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/melbourne_clearance.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/melbourne_clearance.jpg" alt="">
 
Auction activity remained relatively steady across the combined capital cities this week, with a total of 1,746 homes taken to market, returning a success rate of 63.1 percent.
That was up from last week’s final clearance rate which saw the lowest weighted average result so far this year at 61.7 per cent (1,915 auctions).
 
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Sydney and Melbourne continue dual as auction activity remains steady

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It was time for the NSW government to correct the stamp duty brackets, according to the Real Estate Institute of New South Wales.  
The REINSW President Leanne Pilkington said REINSW has continuously failed in lobbying the NSW Government in an effort to persuade them to address the punishing effects of Stamp Duty bracket creep. 
“However, to date, Government has chosen to ignore the damage these outdated tax rates are causing.
“The Government’s conduct in regard to this issue is nothing less than unconscionable”, Ms Pilkington said.  
The NSW budget is due in two months.
“The current NSW Transfer Duty brackets (other than the top bracket for residential land over $3 million) have been in place for more than 30 years.  
“The Second Reading to the 1986 Bill which on enactment increased NSW Transfer Duty rates and introduced the current base thresholds included the following statement: 
"The increased rates for conveyances only affect properties worth more than $300,000 and thus will not affect the average home purchaser”.  “The median house price in Sydney is now at $1,179,519," she noted.
This clearly shows that the government is ignoring the market in which the current stamp duty rates were to apply. 
“Last financial year more than $7.3 billion was collected in stamp duty and to February 2018 the government has raised in excess of $4.7 billion, on par with the same amount collected in the first 8 months of that financial year.
Meanwhile Mirvac has introduced a marketing campaign aimed at first home buyers by matching the NSW Government’s $10,000 First Home Owner Grant on all apartments above the $600,000 cap.
Mirvac says its wants to sell to first home buyers who are currently missing out because their housing needs push them into a higher $600,000 price bracket, by matching the NSW Government’s $10,000 grant.
They will be permitted to exchange on a reduced deposit, paying the remainder in instalments and with priority to purchase ahead of other buyers.
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NSW stamp duty rate needs updating by unconscionable state Government after 32 years: REINSW 

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R&amp;F Property Australia has today turned the sod on what will become one of Footscray’s most significant and largest urban regeneration projects – Live City.
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The site represents a new era for the Kinnears Ropeworks factory. 
The site is centrally positioned between the Victoria University, Western Hospital and Highpoint Shopping Centre.
The sit is being repurposed into a residential and mixed-use precinct of up to 1,450 dwellings. 
Built in 1908, the former Kinnears Ropeworks will require econservation works to be undertaken and R&amp;F Property Australia has told River and Yarraville Ward councillors it is committed to honouring the factory’s industrial past.
It is R&amp;F Property Australia’s first development in Victoria after purchasing the site in August 2016. 
Its experienced development team have been working with Heritage Victoria over the past 18 months to design and deliver an exciting new precinct which carefully balances the site’s State Heritage listing.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/live3.jpg" alt="">
R&amp;F Property Australia vice president Thomas Chiu said the project will create a lively community.
“Live City will set the tone for Footscray’s newest precinct with conservation of three heritage buildings, approximately 1,450 apartments, specialty retail, commercial offices and public spaces to bring this vibrant new community to life,” he said.
“The development comes with a vision to create a sustainable hub that integrates seamlessly with the surrounding local neighbourhood, along with increased housing and amenity for Melbourne’s inner- west. 
“We want to create lively communities that have good transport connections, shops, cafes and access to employment and education facilities,” Mr Chiu said. 
Development will be staged over the next 6-8 years, to incorporate six precincts with a project total end value estimated at $750 million. 
The first stage of Live City is located on the site’s western edge between Ballarat Road and Kinnears Street and will feature 208 residential apartments within three buildings.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/livecity3.jpg" alt="">
Heights will vary between eight and eighteen storeys and will comprise a mix of retail, residential and carparking facilities on the ground level.
R&amp;F Property Australia is part of R&amp;F Properties, a global property development group.
Its offices in Melbourne and Brisbane, R&amp;F Property Australia works closely with all levels of government, industry partners, local contractors and communities to create high-quality, high-demand mixed-use, residential, commercial, and urban development projects.
For more information <a href="http://ppmga.com.au/project/r-f-property-australia-l-v-e-project/" target="_blank">click here.</a>
 
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jchancellor-FAypfDUnLy

Construction begins at Live City, the $750 million Footscray regeneration project

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The Reserve Bank of Australian has again noted its concern about the borrowers who have have taken interest-only loans.
There are around 1.46 million interest-only (IO) mortgages.
Some commentators reckon these loans are the making of a localised crisis the equivalent not seen since the 2008 United States subprime disaster which triggered the global financial crisis. 
There's no doubting IO loans are potentially toxic or otherwise our regulators would not have hastened their recent crackdown.
The borrowers were initially tax minimising investors but a troubling number were then home buyers who took the cheapest borrowing route to upsize to the priciest home they could be calculated by their lenders to afford.
The RBA figures show around 30 per cent of mortgage debt as subject to the upcoming IO reset, with its peak in 2020.
The RBA estimates around $120 billion in IO mortgages will convert to back to the traditional principal and interest loans (P&amp;I) every year between now and 2021.
The sting in the tail of these lower-repayments IO loans is that they apply for typically five years.
At the end of that period, the repayments step up as instead of paying the principal off over 30 years, borrowers will be repaying it back over 25 years.
When IO loans reset it is estimated repayments will leap for the borrower by between 30 to 40 per cent.
The Reserve Bank admits these resets are an "area of potential concern".
They anticipate most borrowers "should be able to afford the step-up in mortgage repayments" because they have accumulated substantial prepayments.
But I'm not as optimistic given the landscape has changed in regard to lending capacity rules along with the deterioration in price growth.
Given lenders have already increased the rate of the interest for exisiting IO loans, the RBA had noted switching out was underway voluntarily.
And already some banks have spotted a small increase in arrears among borrowers switching to P&amp;I loans 
"Partly, this was borrowers taking time to adjust to the higher required repayments, but most subsequently returned to meeting their payments in full," the RBA acknowledged.
Because of the recent slowing in price growth, I'd suggest the prospect of negative equity could rear its ugly head just as borrowers wish to refinance, rather than cop the higher repayments.
Borrowers who bought before the tightening of lending criteria by the Australian Prudential Regulation Authority will no longer qualify for the same loan amount, due to serviceability issues.
So home owners and investors investors will face challenges rolling over or renegotiating their loans and holding onto their property, or property portfolio. 
Treasurer Scott Morrison anticipates APRA's restrictions have reduced high risk activity in his desire for a "soft landing" for the housing market and Australian economy.
For borrowers the time for reviewing, planning and managing household budgets starts now.
This article was first published in the Saturday Daily Telegraph.
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Interest only loans are a toxic ticking bomb for Australian economy

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A beachfront Elwood townhouse, has been sold by its mortgagee sale have been listed with hopes over $2.5 million.
The home at <a href="https://www.realestate.com.au/property-townhouse-vic-elwood-127571338" target="_blank">1/87 Marine Parade </a>spans over 3 levels, featuring three bedrooms (fitted BIRs, one with library, main with custom WIR &amp; luxe ensuite), a bathroom with stone bath &amp; basins and a marble kitchen featuring an island bar.
It has around 210 sqm of space.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/elwood5.jpg" alt="">
Other features include a double auto garage via automatic security gates. 
The townhouse was set on the corner of Shelley Street and neighbouring the canal bridge and Robinson Reserve.
It last traded in 2001 at $911,000.
The suburb's median unit price is $610,000 according to CoreLogic. 
 
 
 
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Luxury Elwood townhouse sold by mortgagee

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<div>Auction activity remained relatively steady across the capital cities this weekend, with a total of 1,746 homes taken to market.</div>
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<div>Though estate agents report that prices are turning lukewarm.</div>
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<div>With school holidays recently underway, many of the weekend offerings were in seaside localities before the onset of the winter hibernation.</div>
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<div>At Blairgrowrie (above), there was a $550,000 sale of one of the Mornington Peninsula’s original holiday homes.</div>
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<div>Set among tea trees, the one bedroom weatherboard at <a id="LPlnk378485" href="https://www.realestate.com.au/property-house-vic-blairgowrie-127984398" target="_blank">424 Melbourne Road</a> had been listed with a $545,000 to $599,500 price guidance.</div>
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<div>It last sold at $49,000 in 1998.</div>
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<div>At Ettalong Beach on the NSW Central Coast, <a id="LPlnk162968" href="https://www.realestate.com.au/sold/property-house-nsw-ettalong+beach-127952406" target="_blank" rel="noopener noreferrer">a three bedroom brick house at 96 The Esplanade offered</a> for the first time in four decades was snapped up pre-auction for $1.65 million.</div>
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<div>A three bedroom Main Beach apartment was sold for $580,000. Set in The Meriton, the apartment at <a id="LPlnk122373" href="https://www.realestate.com.au/property-apartment-qld-main+beach-127875822" target="_blank" rel="noopener noreferrer">7/29 Woodroffe Avenue</a> last traded in 1998 at $240,000.</div>
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<div>Ray White Queensland conducted 50 auctions on the Gold Coast to leverage off the Commonwealth Games hype. </div>
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<div>Around a quarter were sold.</div>
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<div>The sales included a $3.93 million five-bedroom home at <a id="LPlnk611392" href="https://www.realestate.com.au/property-house-qld-sovereign+islands-127845274" target="_blank">15 Queen Anne Court, Sovereign Islands</a> which is under offer (below).</div>
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<div> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/sov.jpg" alt="">
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<div>The national success rate of 63 per cent increased from last week’s final clearance rate which saw the lowest result so far this year at 61.7 per cent from 1,915 auctions.</div>
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<div>CoreLogic noted units outperformed houses, with 65 per cent of units finding buyers compared to a cooling 62 per cent success rate for houses.</div>
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<div>Click here to enlarge.</div>
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<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/auctions.jpg" alt=""></div>
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<div>Melbourne saw a total of 905 auctions take place this weekend, returning a 63 per cent preliminary clearance rate, with the inner east again the weakest region with just 48 percent finding buyers.</div>
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<div>Parramatta's 38 percent was Sydney's weakest region, well below the improved overall 66 per cent success rate from the reduced 551 auctions held.</div>
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<div>Sydney's top sale was at Strathfield. The <a id="LPlnk273019" href="https://www.realestate.com.au/property-house-nsw-strathfield-127950374" target="_blank" rel="noopener noreferrer">5 Firth Avenue property </a>sold at $5,715,000. The six-bedroom designer residence on 920 square metres came with basement parking for six cars.</div>
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<div>The top Melbourne sale was in Albert Park, where a knockdown at <a id="LPlnk734369" href="https://www.realestate.com.au/property-house-vic-albert+park-127936178" target="_blank" rel="noopener noreferrer">42 Draper Street</a> sold for $3.85 million.</div>
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<div>The three bedroom brick house sits on a 333 sqm block, a deceased estate held in the same family for half a century. The indicative price guide had been $2.9 million to $3.19 million, with three bidders pushing it $650,000 over reserve.</div>
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<div>An Elwood home, with balcony and garage door designed resplendent with leaf ornamentation, was among the weekend offerings.</div>
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<div>The leafy panorama featured on the front facade of the home at <a id="LPlnk208043" href="https://www.realestate.com.au/property-house-vic-elwood-127904294" target="_blank" rel="noopener noreferrer">5 Ruskin Street</a> (below) which was listed with $2.8 million to $3 million hopes. </div>
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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/elwood.jpg" alt=""> </div>
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This distinctive four-bedroom residence boasts four bathrooms, a study retreat, open-plan living-dining zone and pool. 
James Meldrum, of RT Edgar advised it was under contract, though without price disclosure.
A Cheltenham house that dates back to the early 1900s was passed in at $1.4 million.
It had been tipped to have seen a battle between renovators and developers. 
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The three-bedroom house on 750sq m at <a id="LPlnk530451" href="https://www.realestate.com.au/property-house-vic-cheltenham-127953114" target="_blank" rel="noopener noreferrer">12 Coape Street</a> had a price guide of $1.375 million to $1.475 million after its quote was increased.
Buxton agent Matthew Gray said the property was among the oldest in the suburb, but does not have any heritage protection. The historic Cheltenham home features a hipped roof, front veranda, double-hung windows and four fireplaces.
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The nation's cheapest auction sale was $271,000 in Adelaide, a three bedroom, one bathroom 1970s home at <a id="LPlnk504643" href="https://www.realestate.com.au/property/16-tolley-cl-paralowie-sa-5108" target="_blank" rel="noopener noreferrer">16 Tolley Close, Paralowie</a>.</div>
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