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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The lowest price paid at big weekend auction, The Event was $136,000 for a one-bedroom furnished hotel room at Surfers Paradise.
The <a href="https://www.realestate.com.au/property-unit-qld-surfers+paradise-127261054" target="_blank">1417 Mantra on View unit</a> is holiday let though on-site managers with owners allowed to stay for 28 days per year.
It last sold in 2009 at $219,500 to a WA investors.
“The strong contingent of local buyers was the big surprise of the day,” said Andrew Bell, the CEO of Ray White Surfers Paradise Group. 
Among the properties passed in was a grand three-storey historic home at Warwick known as The Abbey. The property boasts 50 rooms, a chapel, grand dining room and function rooms.
A five-bedroom waterfront home with Florida-style architectural elements at 80 Admiralty Drive, Paradise Waters, was passed in at $4 million. It had been on and off the market for two years without success.
“We’re expecting to secure sales for a number of properties passed in over the weekend over the coming weeks,” Mr Bell said.
Strong interest from interstate buyers didn’t translate to strong bidder numbers at Ray White Surfers Paradise’s The Event on Sunday.  </div>
<div> </div>
<div>Some 41 properties worth $35.4 million sold at the auction where 170 registered bidders, mainly from the Gold Coast and Brisbane, registered to bid.</div>
<div>Ten properties sold prior to auction among the 80 plus offerings.</div>
</div>
RWSP Group CEO Andrew Bell said they had over 2000 inspections on properties over the last four weeks," Mr Bell said.
Bell had tipped interest from southern buyers to lead sales.
Mantra's resales have been loss making for some time. A sale last November was at $148,000 having sold at $320,000 in 2006, according to CoreLogic. 
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j.ballantyne1990-6AQqhLzZaK

Surfers Paradise Mantra unit liquidation sale cheapest weekend result

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The White Shells penthouse apartment in Marcoola on Queensland's Sunshine Coast has been sold by mortgagees.
It fetched $700,000 when sold by Jay Pashley and Liz Hope from North Shore Reality. 
It was last sold at $1,115,000 by the developer, Twaddle Developments in 2007.
The <a href="https://www.realestate.com.au/sold/property-unit-qld-marcoola-126541826" target="_blank">east facing beachfront apartment</a> with views had been on the market since September.
The penthouse has the direct access to its exclusive roof deck. 
The apartment came with two bedrooms, two bathrooms and office nook. 
<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/2018/1/29/sunshine2.jpg" alt="">
According to CoreLogic, the median price for units in Marcoola sits at $380,000.
Another White Sheels apartment sold last year at $698,000 to a Netherlands couple who work at their Chinese embassy. Apartment 42 was a three bedroom luxury apartment on the first floor in the South East corner.
The marketing advised it had "previously been valued at just under one million dollars."
It had been sold off the plan in 2007 at $985,000.
The CoreLogic Pain &amp; Gain report highlights the Sunshine Coast loss-making locality (below).
Click here <a href="https://www.propertyobserver.com.au/images/2018/1/29/painandgain.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/2018/1/29/painandgain.jpg" alt="">
All 48 apartments have either a north or east-facing aspect. White Shells has four residential levels with lift access to every level and there are three separate entrances into the apartments, making living at White Shells much lower density than most apartments.
On completion there had been very little in the way of brand new beachfront apartments on the coastal side of the David Low Way.
It sits at the corner of Merchants Parade and Seashore Street, Marcoola. 
 
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White Shells, Marcoola Sunshine Coast penthouse sold by mortgagee

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The West Melbourne, Festival Hall, owned by the family of the legendary sports impresario John Wren since 1915, is set to be listed for sale with redevelopment plans.
<div>
Cousins Chris and John Wren – directors of the business that operates Festival Hall – have lodged plans with the City of Melbourne for a two-tower $65 million redevelopment.
The Wren family plan to sell it with a permit for the mixed-used scheme designed by architects Rothelowman.
"We're not developers," Chris Wren, a planning lawyer and director of the family owned Stadiums Pty Ltd, told The Australian Financial Review. 
The premises opened with a boxing match on Cup Eve 1913 under the stars. During Wren's ownership there was boxing on Friday nights, wrestling on Saturday, with Wenesday's a mix of vaudeville or light boxing matches.
</div>
<div><img src="http://www.afr.com/content/dam/images/h/0/n/4/m/l/image.imgtype.afrArticleInline.620x0.png/1516690901987.jpg" alt="A two-tower development with 1400 square metres of commercial space and 179 apartments is planned." width="620" data-src="http://www.afr.com/content/dam/images/h/0/n/4/m/l/image.imgtype.afrArticleInline.620x0.png/1516690901987.jpg"></div>
<div> </div>
<div>A two-tower development has been proposed with 1400 square metres of commercial space and 179 apartments.</div>
<div>
At a time when many moralists regarded gambling as a racket, John Wren obtained great power and wealth over the decades until his death in 1953.
He was the thinly disguised subject of author Frank Hardy's 1950 novel Power Without Glory.
His 2004 biographer James Griffin wrote that Wren's defamations were still current - and even this week one national newspaper described Wren inappropriately as a "crime boss." 
Chris Wren said John Wren (top and below) would not have been sentimental about the site.
</div>
<div>"He would have told us to sell the place ages ago," he said.</div>
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<div>The City of Melbourne has placed an interim heritage order on the site, which they hope to have overturned.</div>
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<div>The building on the site was rebuilt to host boxing events in 1955 after fire destroyed the original structure.</div>
<div> </div>
<div>It has since hosted bands including the Beatles, The Seekers and the Rolling Stones.</div>
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<div> </div>
<div>Music guru Molly Meldrum said it would be a shame to lose the 5400-person hall which had lost business since the completion of a retractable roof on the Margaret Court Arena in 2014 drew acts and promoters away.
Festival Hall is the last of a string of event venues the family business once owned in the east coast capitals including premises at Rushcutters Bay in Sydney and Brisbane.
The Collingwood based John Wren bought the three boxing stadiums in 1915 from silver medial Olympian boxer, R L "Snowy" Baker and undertook the Festival Hall roofing at a 230,000 pounds cost.
Sydney held 11,000, Melbourne 7,000 and Brisbane held 5,000.
Laid off work during the 1890s depression, Wren launched his Johnston Street totalizator with a stake bolstered by his 1890 Carbine Melbourne Cup victory gambling coup.
In Victoria his probate was valued at £1,003,946.
 
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jchancellor-FAypfDUnLy

John Wren's family up for fight with Festival Hall redevelopment proposal

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Caydon's $1 billion redevelopment of Melbourne’s landmark 1960s Nylex clock site is a step closer after the developer secured Victorian Civil and Administrative Tribunal approval for its second stage.
It includes a revised plan for a 15-storey apartment building to be erected at the Gough Street Cremorne mini-suburb site.
A 14-storey building will also be built, with the total redevelopment to consist of three significant buildings.
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Nine of the site’s original 16 silos will be retained as part of the redevelopment, including adaptation for use as a hotel, art gallery, wellness centre and a visitor centre.
The iconic Nylex clock will tell the time once again after it is restored and reinstated over the new development with what has been dubbed the Malt District.
Caydon's Joe Russo has welcomed the decision.
The VCAT decision referred to the proposal as a “seductive, sophisticated and subtle design."
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It was 2014 when the set was purchased by Caydon for $38 million.
Caydon owned next door, once occupied by Beaver Plastics, taking their holding to around 1.6 hectares.
The site has been part of Melbourne’s brewing history since the late 1800s.
The 11,340 square metre site had previously attracted interest from developers when restoration projects were proposed in 2002 and 2004. 
The Nylex Clock featured in Paul Kelly’s late 1980s song 'Leaps and Bounds', with the band filmed performing on top of the tower.
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This week the City of Yarra Mayor Daniel Nguyen said it was disappointing that Council’s concerns about the scale of the Nylex site development were not reflected in VCAT’s final decision.
Stage one is progressing with prices in the <a href="http://maltdistrict.caydon.com.au/coppins-corner/" target="_blank">Coppins Corner</a> building starting from $496,000 for its one bedroom apartments; two bedroom apartments from $660,000, three bedroom apartments from $1,242,000 and SOHO apartments from $1,570,500.
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Nylex site finally gets chance to proceed in leaps and bounds

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Melbourne's inner-city unit market has been pinpointed in Terry Ryder's latest Hotspotting’s No Go Zones 2018 report.
Ryder warns investors to steer clear of apartments in the CBD, Southbank and Docklands in particular, citing concerns around oversupply and high rental vacancy rates.
Ryder said the impact of oversupply was frequently underestimated.
“Over-supply causes rents to fall and that drags down property values,’’ he warned.
It was the first time for several years that no regional, resource town in Queensland had been on the list.
Hotspotting founder Terry Ryder said in the report that the “single biggest danger” for investors this year was “buying apartments in some of our major cities”.
“Given that Melbourne, Brisbane, Perth and Darwin already have, or are heading towards major surpluses of inner-city apartments, and Sydney, Adelaide and the Gold Coast are trending in that direction, a good strategy for property investors is to simply avoid high-rise unit markets altogether,” he wrote.
Ryder warned while “the optimists” had suggested Melbourne’s population growth was strong enough to absorb its substantial unit development, many of the apartments being built were unlikely to appeal to local renters.
<div id="celtra_holder_news">“Many of the new high-rise projects have been specifically targeted at foreign investors. The size and layout of the properties don’t necessarily suit Australian residents,” he said.</div>
“This lessens the appeal of the apartments and reduces the size of the target market, thus causing downward pressure on rents and prices.”
The report advised that 4.2 per cent of properties available for rent in Southbank were vacant in November 2017, along with 3.4 per cent in Docklands and 2.8 per cent in the CBD.
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While down from November 2016, they sat well above greater Melbourne’s November 2017 vacancy rate of 1.8 per cent, according to SQM Research.
Ryder’s report said State Government figures showed 20,000 residential properties across inner and middle Melbourne sat vacant.
Some 93,000 units were in the pipeline for construction across the city over the next two years — although it was unlikely they would all be built.
An <a href="https://www.realestate.com.au/sold/property-apartment-vic-southbank-126881530" target="_blank">18th level, two bedroom apartment</a> in Southbank's The Guilfoyle complex (top and above), sold has just sold for $475,000, having last traded for $530,000 in 2010. 
Ryder’s “no go” zones also included three Queensland markets — inner-city and northside Brisbane, and high-rise Gold Coast — along with the WA localities, Kalgoorlie-Boulder, Perth inner-city, and Port Hedland and Karratha.
SA’s Whyalla and units in Parramatta, NSW, rounded out the 10. 
The No Go Zones report said the Olympic Park area, which includes Homebush, Breakfast Point and the suburb of Olympic Park itself, was becoming “prominent for all the wrong reasons”.
Sharp increases in the number of homes available have coincided with a decline in sales, while the number of rental properties currently vacant recently climbed to 4 per cent — double the Sydney average.
Other nearby suburbs such as Wentworth Point and Rhodes also “entered the danger zone”, according to the report.
Ryder urged investors to examine a market’s vacancy rates and building approvals to gauge potential oversupply before taking the purchase.
He also advised speaking to local “real estate professionals”, namely valuers and buyer’s agents.
In Hotspotting’s Top 5 Melbourne Hotspots 2018, Mr Ryder named the Hume, Wyndham, Melton, Epping and Casey precincts as the city’s best bets for buyers this year, each offering affordability, solid infrastructure and closeness to major employment networks.
 
 
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jonathanchancellor-7SQnKwU6yx

Why inner city Melbourne tops Terry Ryder's 2018 No Go Zones report 

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Sydney has 600,000 bedrooms not being used according to data compiled by EY from 2016 Census estimates.
Unlocking the additional capacity within 30 minutes of the Sydney CBD could boost New South Wales’ GDP by $750 million annually, it suggests.
<div>The greatest numbers of unused bedrooms are North Sydney/Hornsby, Outer West/Blue Mountains and the Inner South West.</div>
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The Eastern Suburbs, the Inner West, the Inner South West and Parramatta have a high number of available rooms that could meet accommodation needs between one and five times over.
The most acute shortage – where the number of surplus bedrooms is insufficient to meet demand – is in the City/Inner South.
</div>
The number of spare bedrooms equates to 190,000 unused dwellings, EY said in its report Sydney housing conversations: moving from affordability to accessibility.
The EY Sydney managing partner Andrew Price suggested better questions needed to be asked about solving affordability problems in housing.
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"There is a need for an additional 135,000 bedrooms in the greater Sydney area, with the biggest demand in the belt stretching from the CBD to Parramatta; to comfortably house all residents in Parramatta an additional 22,000 rooms are required, while for the Inner South West this gure rises to 25,000. 
"While the largest untapped supply is in the outer ring and northern suburbs, there are nevertheless plenty of rooms in the population belt described: 40,000 in Parramatta, 60,000 in the Inner South West and 16,000 in the CBD/ Inner South." 
Click here <a href="https://www.propertyobserver.com.au/images/2018/1/23/PAGE%207%20BEDROOM.jpg" target="_blank">to enlarge.</a>
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He suggests the existing underutilised supply of housing stock could hypothetically meet the forecast demand for new stock for the next five years. 
It estimated if all unused bedrooms within 30 minutes of Sydney's CBD were to house a working adult, that the boost to productivity would equate to an additional $750 million injected each year into the NSW economy.
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The report noted Sydney actually had an estimated 1.5 million unused bedrooms spread across 900,000 dwellings, but for the purpose of EY's analysis under-utilised properties are defined as those properties which had two or more vacant bedrooms on census night in 2016 because a single vacant bedroom is often used for other purposes.
Click here <a href="https://www.propertyobserver.com.au/images/2018/1/23/PAGE%208%20BEDROOM.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/2018/1/23/PAGE%208%20BEDROOM.jpg" alt="">
"Of course in reality, the housing problem is not just about bedrooms," Price acknowledges.
"Households want to live in a self-contained way, and not share utilities such as kitchens and bathrooms.
"However if a small number of households with spare room capacity were prepared to move to more appropriate sized accommodation, this could make a signifcant contribution to addressing the problem.
"A redistribution of housing stock that saw surplus bedroom capacity in key hotspots utilised more fully would go a long way to easing housing pressures," he says.
Sydney vacancy rates have hit a four year high.
 
</div>
<div class="cq-article-content-media section"> </div>
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Using Sydney's 600,000 vacant bedrooms could boost productivity: EY

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Sydney house renters are targeting the beach.
Sydney vacancy rates have edged to a four year high, according to the REINSW.
The three most in demand suburbs for house renters on realestate.com.au in the second half of 2017 were North Narrabeen, Freshwater and Caringbah.
The median rental price for a three bedroom house in North Narrabeen is $800. The median for a two bedder would cost $650 a week.
A three bedroom home on <a href="https://www.realestate.com.au/property-house-nsw-north+narrabeen-422899202" target="_blank">The Crescent</a> (above and below) recently leased at $750 a week. 
<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/2018/1/23/narra.jpg" alt="">
As for apartments, renters were seeking affordability in Sydney's west.
The most popular suburbs were Padstow, Concord and Lilyfield. 
Padstow's median rental price for a two bedroom apartment is $450.
A two bedroom <a href="https://www.realestate.com.au/property-unit-nsw-padstow-422705270" target="_blank">Padstow Parade apartment</a> is available for $400 a week.
 
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jrobinson-rf4aSBido9

Where renters are looking in Sydney

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Real Estate Institute of NSW figures showed residential vacancies rose to their highest level in four years in Sydney.
The residential vacancy rate in greater Sydney picked up to 2.2 per cent in December from 2.1 per cent in November.
The increase came from the middle and outer-ring suburbs.
The normally slow holiday period tally took it to a level it last seen in July 2013.
Sydney's vacancy rate was higher in September 2012, when it was 2.5 per cent, REINSW figures showed.
The December 2017 REINSW Vacancy Rate Survey saw availability in the Sydney metropolitan area up 0.1 percentage points at 2.2 per cent. 
During 2017 there was a slight decline in rental availability in Sydney which bottomed out in March and April before rising again as the year progressed to see supply meeting demand. 
Vacancy rates in Inner Sydney were down 0.1 percentage points in December at 2.0 per cent, while Outer Sydney rose 0.2 percentage points at 2.3 per cent and Middle Sydney was up 0.4 percentage points at 2.6 per cent. 
The Hunter fell 0.3 percentage points at 1.7 per cent with Newcastle down 0.6 percentage points at 1.7 per cent, while in the Illawarra, vacancy rates fell 0.1 percentage points to 1.7 per cent. Wollongong was up 0.1 percentage points at 1.7 per cent. 
Across regional areas, Albury fell 0.7 percentage points at 2.3 per cent, Coffs Harbour was down 0.2 percentage points at 1.8 per cent, Northern Rivers rose 0.1 percentage points at 0.9 per cent and New England added 0.2 percentage points to 2.5 per cent.
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Sydney vacancy rates edge to four year high

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After five years of strong house price gains in Sydney and Melbourne, the market is cooling, particularly in Sydney (Chart 14).
 In both cities, housing price growth has run at double-digit annual rates over the past five years. However, in the past six months, Sydney house prices have declined 3% and Melbourne price growth has slowed to a 5% annual rate. The rest of the country has had low single-digit house price growth over the whole period.
Click <a href="https://www.propertyobserver.com.au/images/2018/1/22/blox4.jpg" target="_blank">here to enlarge.</a>
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The slowdown in Sydney and Melbourne has been driven by a number of factors. 
First, housing supply has ramped up, as an apartment building boom has delivered new dwellings to market.
 Second, prudential settings have been tightened, which has also included an increase in lending rates for investors. 
Third, foreign demand has pulled back, reflecting restrictions on Chinese capital outflows, constraints on lending to foreign buyers by domestic banks and increased local taxes on foreign buyers. 
We expect these factors to continue to weigh on housing price growth in the coming quarters and forecast national housing price growth to slow from the near double-digit rates of recent years to 3-6% in 2018 (Table 16). 
Click here <a href="https://www.propertyobserver.com.au/images/2018/1/19/FORECAST.jpg" target="_blank">to enlarge.</a>
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We expect housing construction to remain at a high level over the next 6-9 months – given a large pipeline of apartment construction that is already underway – and expect it to be a drag on GDP growth from H2 2018 and in 2019 (Chart 15). 
However, we do not expect a sharp decline in housing prices and expect only a modest decline in construction activity, as both are likely to be supported by strong population growth and low interest rates. Although we see the RBA beginning to lift its policy rate in 2018, we expect only a slow pace of cash rate tightening and some relaxation of current tight prudential settings as the housing market cools. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/1/19/debt.jpg" target="_blank">to enlarge.</a>
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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/2018/1/19/debt.jpg" alt="">
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A hard landing is possible, but we believe this would require a negative shock from abroad and a sharp rise in the unemployment rate. In short, we do not see a significant local housing imbalance and view Australia as having had a housing boom rather than a bubble (for more on this see Downunder Digest: Australian housing: Cooling not crashing, 12 December 2017). 
Household debt concerns may be overdone 
A key concern that has been flagged by the RBA, amongst other observers, is that household debt levels have risen in recent years (Chart 17). 
This concern has a number of dimensions. 
First, if new household debt has been misallocated, then falling housing prices or a rising unemployment rate could threaten financial stability. 
While this could be a concern, we see the recent household debt as having been reasonably well allocated, given tightened prudential settings. We also expect the unemployment rate to fall, rather than rise in the coming quarters. 
Second, slower growth in credit, as the housing boom cools, could crimp consumer spending. However, we see little evidence that the ramp up in household debt in recent years has supported much consumer spending. Unlike the housing price and debt boom of the early 2000s, households have been injecting equity into their houses in recent years, rather than withdrawing it (see Downunder Digest: Australia’s shifting consumer, 27 June 2017). 
In addition, although the national household savings rate has fallen, which could be a sign of a wealth effect, it has not fallen in the states that have had housing booms – New South Wales and Victoria (Chart 18). Instead saving rates have fallen in the mining states, which is likely to reflect the end of the mining boom weighing on incomes, rather than a positive wealth effect. 
Finally, it is also worth keeping in mind that although household debt has risen, driven by a rise in new borrowing, on average, existing mortgage holders have been paying down their mortgages faster than required and thereby building up a buffer against negative income shocks. 
One way to measure this buffer is to look at how much funding households have in their mortgage offset accounts.
 As Chart 17 shows, when these account balances are netted out, the climb in household debt has been much shallower. 
In our view, the key to the outlook for consumption growth is the forecast for household incomes. Strong jobs growth is already supporting a pick-up in household income growth and our central case suggests the tightening labour market will also see wages growth lift in 2018, further supporting household income growth and consumer spending.
 There are already signs that consumer sentiment is lifting (Chart 19). 
Click here<a href="https://www.propertyobserver.com.au/images/2018/1/19/sneitment.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/2018/1/19/sneitment.jpg" alt="">
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We see the RBA lifting its cash rate in 2018
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Given the expected pick-up in growth, tightening labour market and expected rise in wages growth this year, we expect the RBA to begin to normalise its cash rate setting in 2018. 
The cash rate has been at its record low of 1.50% since August 2016 and the RBA has stated that it estimates Australia’s neutral rate to be around 3.5%, suggesting that monetary policy is currently very stimulatory. As the policy rate setting is well below neutral, we see the RBA as likely to want to start lifting its cash rate as soon as it is confident that wages growth is past its trough. 
Keep in mind that wages growth is usually a lagging indicator of the economy. 
Our central case is that the RBA will lift its cash rate in Q2 2018 although the risk is that it takes a little longer for the central bank to be convinced that wages growth is past its trough and underlying inflation is headed back to target. 
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Any 2018 property market hard landing requires a shock from abroad and sharp rise in unemployment: HSBC's Paul Bloxham

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A record number of sales under the hammer has delivered Melbourne’s strongest property market in seven years, despite modest growth in median prices in the last three months of 2017.  
New REIV data shows house prices in metropolitan Melbourne rose for the seventh consecutive quarter in December, up 1.1 per cent to a median of $821,000. This increase boosted the city’s annual price growth to 13.2 per cent for 2017 – the highest since 2010.  
REIV President Richard Simpson said price growth in 2017 was undoubtedly bolstered by a buoyant auction market with more than 25 auction records broken.
“While price growth slowed in the December quarter due to increased supply and reduced investor activity, 2017 was a record-breaking year for Melbourne’s property market,” he said. 
“High levels of interstate and overseas migration, new Government initiatives for first homebuyers and record low interest rates have contributed to significant double-digit price growth last year.” 
TOP GROWTH SUBURBS – DECEMBER QUARTER
<table class="t1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td class="td1" valign="bottom">
 
</td>
<td class="td2" valign="middle">
Suburb
</td>
<td class="td3" valign="middle">
Dec-17 Median
</td>
<td class="td4" valign="middle">
Sep-17 Median
</td>
<td class="td5" valign="middle">
Quarterly Change
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
1
</td>
<td class="td7" valign="bottom">
TOORAK
</td>
<td class="td8" valign="middle">
$4,600,000
</td>
<td class="td9" valign="middle">
$3,210,000
</td>
<td class="td10" valign="middle">
43.3%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
2
</td>
<td class="td12" valign="bottom">
SOUTH YARRA
</td>
<td class="td13" valign="middle">
$2,280,500
</td>
<td class="td14" valign="middle">
$1,799,500
</td>
<td class="td15" valign="middle">
26.7%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
3
</td>
<td class="td12" valign="bottom">
MENTONE
</td>
<td class="td13" valign="middle">
$1,200,000
</td>
<td class="td14" valign="middle">
$1,002,500
</td>
<td class="td15" valign="middle">
19.7%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
4
</td>
<td class="td7" valign="bottom">
SURREY HILLS
</td>
<td class="td8" valign="middle">
$2,285,000
</td>
<td class="td9" valign="middle">
$1,930,000
</td>
<td class="td10" valign="middle">
18.4%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
5
</td>
<td class="td12" valign="bottom">
ESSENDON
</td>
<td class="td13" valign="middle">
$1,715,000
</td>
<td class="td14" valign="middle">
$1,450,000
</td>
<td class="td15" valign="middle">
18.3%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
6
</td>
<td class="td12" valign="bottom">
HAWTHORN
</td>
<td class="td13" valign="middle">
$2,718,000
</td>
<td class="td14" valign="middle">
$2,300,000
</td>
<td class="td15" valign="middle">
18.2%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
7
</td>
<td class="td7" valign="bottom">
MALVERN
</td>
<td class="td8" valign="middle">
$2,370,000
</td>
<td class="td9" valign="middle">
$2,014,000
</td>
<td class="td10" valign="middle">
17.7%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
8
</td>
<td class="td12" valign="bottom">
KEYSBOROUGH
</td>
<td class="td13" valign="middle">
$885,000
</td>
<td class="td14" valign="middle">
$760,500
</td>
<td class="td15" valign="middle">
16.4%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
9
</td>
<td class="td12" valign="bottom">
CANTERBURY
</td>
<td class="td13" valign="middle">
$3,300,000
</td>
<td class="td14" valign="middle">
$2,875,000
</td>
<td class="td15" valign="middle">
14.8%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
10
</td>
<td class="td7" valign="bottom">
 ROSEBUD
</td>
<td class="td8" valign="middle">
$624,000
</td>
<td class="td9" valign="middle">
$552,000
</td>
<td class="td10" valign="middle">
13.0%
</td>
</tr>
</tbody></table>
Top performing suburbs in the December quarter were almost exclusively located at the premium end of the market and included Toorak, South Yarra, Surrey Hills and Canterbury.  
“Demand for houses in the city’s most exclusive suburbs continues to outstrip supply, with increased competition delivering exceptional results for vendors in these areas.”    
The affordable end of the market also performed well in December with the median house price in the outer suburbs increasing 2.4 per cent over the quarter to $666,500.
“Increased participation from owner-occupiers is driving values in the city’s outer suburbs, with these areas offering buyers the ideal combination of affordability and space.”
“Strong price growth over the past year has meant that houses within 20km of the CBD are almost out of reach for many first homebuyers. These buyers are now looking for new entry points to the market, especially in established suburbs with infrastructure, amenities and services.”
Melbourne’s apartment market rebounded in December with the citywide median price increasing 1.2 per cent to $594,500.
Simpson added that regional Victoria had also experienced its strongest property market in recent years with house prices up 2.6 per cent in the December quarter to a record high $396,500 – an annual increase of 10 per cent on the same period last year. 
“Regional cities and towns within commuting distance of the CBD have certainly benefitted from strong price growth in Melbourne with a number of these areas now recording median house prices higher than those in the outer ring.” 
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