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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Echuca investors are looking for yields supplemented by capital growth, according to Herron Todd White’s latest report.
The property data firm says that centrally located residential areas are reporting superior returns.
“Typically investors in anything but central Echuca are looking for yield supplemented by capital growth rather than the other way around in our local markets.
“Changes to tax laws around depreciation have also slightly reduced the amount of items that can be claimed for dwellings in the mortgage belt.
“Nevertheless many centrally located residences are being successfully operated as short term accommodation (AirBnB and established holiday rental management companies along with privately owned and managed residences) with most reporting superior returns above and beyond permanent accommodation,” the report stated.
A two bedroom unit at <a href="https://www.realestate.com.au/property-unit-vic-echuca-421763594" target="_blank">1/319 High Street</a>, Echuca (above) is available for $230 per week.
A four bedroom house at <a href="https://www.realestate.com.au/property-house-vic-echuca-421761754" target="_blank">23 Cochrane Street</a>, Echuca (below) is available for $460 per 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/2017/08/14/23%20Cochrane%20Street.jpg" alt="">
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j.ballantyne1990-6AQqhLzZaK

Echuca sees higher rental returns: HTW

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Billionaire Brett Blundy has sold his luxury Hawkesbury River property, Sweven.
Ending a four-year on-off sales campaign, property data website Pricefinder has an $18.75 million notification on the sale.
A $7.3 million sale at Cattai set a year ago by Gendy and Hugh Parry-Okeden ranks as the highest sale at Cattai.
The Timothy Moon-designed property took three years at a $8 million cost on its 57 hectare estate which was bought in 2001 for $2.05 million.
The Timothy Moon design was completed in 2009.
Neville Rava, of Cutcliffe Property, declined to comment.
Brett Blundy listed his Rose Bay harbourfront at $45 million in February 2016.
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Brett Blundy sells Sweven at Cattai for $18.75 million

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Melbourne’s North East scored the highest weekend auction clearance rate, according to CoreLogic’s latest report.
The property data firm says that out of the 112 auctions in the area 78.6 percent resulted in a successful outcome.
This was followed by the Outer East with 78.3 percent and the North West with 72.7 percent.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Screen%20Shot%202017-08-15%20at%2010.50.12%20am.jpg" target="_blank">Click 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/2017/08/15/Screen%20Shot%202017-08-15%20at%2010.50.12%20am.jpg" alt="">
The Mornington Peninsula had the lowest weekend clearance rate with only 62.1% of the 29 auctions cleared.
A two bedroom townhouse at <a href="https://www.realestate.com.au/sold/property-townhouse-vic-thornbury-125981914" target="_blank">189A Miller Street</a>, Thornbury (above) was sold for $675,000.
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-preston-125968426" target="_blank">210 Gower Street</a>, Preston (below) was sold for $980,000.
<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/2017/08/15/210%20Gower%20Street.jpg" alt="">
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Melbourne's North East region scores highest weekend auction clearance rate: CoreLogic

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The Hunter region had scored the highest regional weekend auction clearance rate, according to CoreLogic’s latest report.
The property data firm says that 90 percent of the 20 auctions in the region were cleared.
This was followed by Wollongong with 75 percent and Geelong with 71.9 percent.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Screen%20Shot%202017-08-15%20at%2010.50.21%20am.jpg" target="_blank">Click 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/2017/08/15/Screen%20Shot%202017-08-15%20at%2010.50.21%20am.jpg" alt="">
Gold Coast had the lowest clearance rate with only 30% of its auctions cleared.
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-raymond+terrace-122661038" target="_blank">1 Dean Avenue</a>, Raymond Terrace (above) was sold for $315,000.
Built in 1970 it last sold for $262,000 in 2015.
Another three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-hamilton-125935562" target="_blank">169 Beaumont Street</a>, Hamilton (below) was sold for $925,000.
It last sold in 2003 for $450,000.
<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/2017/08/15/169%20Beaumont%20Street.jpg" alt="">
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Hunter region scores weekend auction clearance rate of 90 percent: CoreLogic

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Australia is experiencing a long-running residential construction upturn, beginning around mid-2012.
Residential construction tends to be very sensitive to interest rates.
So falling interest rates from late 2011, combined with strong population growth, increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable.
This building boom came at a very beneficial time and helped to offset some of the negative effects from the decline in business investment as the mining construction boom wound down.
The leading indicators of building activity suggest that the current residential construction boom has peaked.
So in this note we take a look at how the economy has benefited from the latest construction cycle and how it’s likely to fair as activity slows.
A typical residential construction upturn has both direct and second-round benefits.
The direct benefits include the additional building activity as well as the jobs created to undertake the additional building work.
Second-round benefits include additional spending elsewhere in the economy as a result of this new construction employment.
For example, spending on furnishings and household appliances for use in the new dwellings.
And then the additional employment as a result of this spending.
In terms of the direct benefits, residential construction upturns since the late 1970’s have on average contributed 2.2 ppts to GDP (chart 1).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-1.jpg" target="_blank">Click 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/2017/08/15/Chart-1.jpg" alt="">
The latest cycle has added 1.6 ppts.
Upturns also contribute to jobs growth. Employment in residential construction, has expanded by 38%, or by 31.2k jobs since 2012 (chart 2).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-2.jpg" target="_blank">Click 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/2017/08/15/Chart-2.jpg" alt="">
This is well above the 6.4% growth rate for total employment over the same time frame.
These jobs have been concentrated in NSW, Victoria and Queensland where the bulk of the residential construction has taken place (chart 3).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-3.jpg" target="_blank">Click 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/2017/08/15/Chart-3.jpg" alt="">
Other building construction jobs, which may include some workers employed in residential construction, have also expanded strongly over the latest residential construction upturn, with 38k extra jobs.
Jobs in construction services have also grown a little faster than total employment growth. Although this includes jobs related to all types of construction activity.
This expansion (and likely contraction) in residential construction jobs is much smaller than the rise in mining sector jobs during the mining boom.
We discuss this more in the next section.
The ABS has estimated that every $1m spent on residential construction generates 17 jobs on a full-time equivalent basis.
This includes jobs in the construction industry as well as the additional jobs outside the industry created as a result of flow on spending.
Spending on dwelling construction has risen by $6.2bn over the cycle so far.
So according to these multiplier effects approximately 105k jobs in total have been added to the economy.
The ABS has also estimated other second round benefits.
For instance, for every $1 spent on residential construction, $1.31 worth of spending is generated elsewhere in the economy.
One area where we have seen this extra spending show up is in the category of household furnishing and fittings including household equipment, floor coverings, household appliances and tools.
Since the latest residential construction boom began, spending in these categories has lifted by 17.5% compared to 10.7% for total household consumption spending (chart 4).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-4.jpg" target="_blank">Click 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/2017/08/15/Chart-4.jpg" alt="">
This has been a positive for the retail sector which has faced many headwinds in recent years.
Other beneficiaries of residential construction booms are the State governments who collect stamp duty revenues.
The NSW, Victorian and Queensland State governments have all had solid growth in stamp duty revenues from the sale of residential properties.
Large house prices gains, particularly in Sydney and Melbourne, and decent turnover has also boosted stamp duty revenues.
In NSW, for example, stamp duty revenues have more than doubled over the past six years and now make up 32% of tax revenues compared to 22% in 2010/11.
We think the latest residential construction cycle has peaked. Residential building approvals peaked in August last year and have fallen by around 10% since then (chart 5).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-5.jpg" target="_blank">Click 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/2017/08/15/Chart-5.jpg" alt="">
However the pipeline of activity remains at record highs which means we are likely to see another quarter or two of growth in construction work done (chart 6).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-6.jpg" target="_blank">Click 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/2017/08/15/Chart-6.jpg" alt="">
We also saw a weather-related fall in residential construction activity in Q1.
This means that we are also due some payback in Q2.
However we think the downturn in the latest residential construction cycle will be gradual, and we expect an extended plateau where residential construction activity remains at a high level over 2017 and into 2018.
This is because a much larger share of approvals have been for multi-units than in previous booms (chart 7).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-7.jpg" target="_blank">Click 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/2017/08/15/Chart-7.jpg" alt="">
Multi-units have a much longer build time, averaging 6 quarters, compared to 2-3 quarters for detached houses.
Indeed some high rise apartments can take 2-3 years or more to build.
This prolongs the construction cycle.
On average, residential construction downturns have subtracted 1.5 ppts from growth.
Our forecasts running to the June quarter 2019 have dwelling construction subtracting just 0.5 ppts from growth.
The smaller subtraction from growth than average reflects the fact the upturn was a little smaller.
Also, strong population growth has lifted underlying housing demand.
We estimate that underlying demand now sits at 185k compared to 155k in mid-2012 at the start of the boom.
This means that the “normal” level of construction activity necessary to meet demand is higher than it was a start of the upturn.
We also expect renovation activity to pick up.
The fact that interest rate are likely to remain low for quite some time is also a factor behind our forecasts for a relatively shallow downturn.
We expect the RBA will leave the cash rate on hold until late 2018.
And that the tightening cycle from there on will be fairly cautious.
In terms of the number of dwelling commencements we expect a slowing to 200k in 2017/18 down from 217k in 2016/17.
And then a further decline to 185k in 2018/19.
For employment, we expect that job losses will occur fairly gradually alongside the gradual decline in activity.
This will help the labour market better absorb these workers.
There are a number of other reasons to expect that the disruption from the downturn in residential construction jobs to be minimal.
Firstly, the jobs downturn will be largest in NSW, Victoria and Queensland, the States where the lion’s share of building activity and gains in residential construction jobs have taken place.
These States all have decent population growth.
And two out of three of these States, NSW and Victoria have strong jobs markets. In NSW the unemployment rate is under 5%, and at a level consistent with full employment.
In Victoria, employment has been growing a solid pace and well above the national average.
Employment growth has also picked up in Queensland in recent months.
Secondly, both NSW and Victoria have also seen a lift in non-residential building approvals (chart 8).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-8.jpg" target="_blank">Click 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/2017/08/15/Chart-8.jpg" alt="">
So additional employment in the non-residential sector may provide a partial offset to some of the jobs losses in residential construction.
In fact the ABS estimates show that the multiplier effects from non-residential construction activity are even larger than for residential construction.
They estimate that $1m spent on non-residential construction generates 24 jobs on a full-time equivalent basis.
And for every $1 spent on non-residential construction, $1.47 worth of spending is generated elsewhere in the economy.
Thirdly, all three of these States have a large pipeline of infrastructure spending still to come from their respective State governments which should also add to jobs growth, especially construction.
The Federal government is also planning a large amount of infrastructure spending over the next 10 years which will also boost employment across the country.
Renovation activity should also provide an offset to lower new residential construction activity.
Renovations usually account for a little above 40% of residential construction activity.
However the share is now very low by historical standards (chart 9).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-9.jpg" target="_blank">Click 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/2017/08/15/Chart-9.jpg" alt="">
Current rates of spending on renovation activity also look low relative to house price growth (chart 10).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-10.jpg" target="_blank">Click 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/2017/08/15/Chart-10.jpg" alt="">
Strong house price growth usually encourages more spending on renovations.
There should be some catch up in renovation spending over the next few years.
Comparing to the recent ramp up and then decline in mining sector jobs, the decline in residential construction jobs will be much smaller.
Mining employment trended higher over a nine year period, rising from around 80k in 2003 to reach a peak of around 275k in mid-2012.
Since the peak of the mining boom around 50k jobs have been lost.
Although more jobs losses are likely as the construction of LNG facilities wind down.
These jobs losses have been concentrated in WA and Queensland. Queensland has had a construction boom and growing tourism sector to help offset lost mining jobs and activity.
But for WA there has been little in the way of other growth drivers to take the place of mining.
As a result economic conditions have been very soft for a number of years in WA.
In terms of the retail sector, a return to more normal growth rates for spending on household furnishings, furniture, appliances and other goods, would be another headwind for the retail sector to contend with.
Kristina Clifton is an economist with the <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.
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Residential construction: will boom lead to bust? CBA's Kristina Clifton

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Just half the apartments on offer in Castle Residence, a $380 million residential project in Sydney’s CBD, sold at its weekend launch.
Located at 203 Castlereagh Street, Castle Residence is the flagship Australian project for international property developer, Shanghai United.
The sales were topped by the 300 sqm penthouse at the project which sold for $18 million ahead of the launch. 
The residential development will incorporate a redevelopment of the heritage listed Porter House into a luxury 121-room boutique hotel in partnership with AccorHotels.
Built in 1876, the original sandstone arches of the five-storeys high, heritage-listed Porter House – long considered “an ornament” to this part of the city – will be extended into a modern structure that floats overhead.
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The premium hotel services will also be available to residents. 
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The building has been designed by architectural firm Candalepas Associates.
The project is being marketed by CBRE.
At the Saturday launch, the highest priced apartment sold was a three-bedroom apartment on the upper floor for $5.8 million while a number of two-bedroom apartments with views also sold for between $3.5 million and $4 million.
CBRE managing director David Milton said there was a broad mix of buyers at the launch, ranging from owner-occupiers to investors.
“We found buyers were eager to secure themselves a piece of real estate in the highly sought after Hyde Park precinct due to the unbeatable proximity to all Sydney CBD has to offer,” Milton said.
He added that many buyers were interested in the dual key apartments, which allow for flexible living with the buyer residing in one side of the apartment looking to rent out the adjoining unit.
Shanghai United is a $19 billion company based out of Shanghai.
Proximity to the CBD makes the Hyde Park precinct one of Sydney’s most sought-after addresses with a recent CBRE report suggesting there was increasing demand for residential apartments in the CBD.
The report said the popularity of two-bedroom CBD apartments showed no signs of abating, comprising 49% of sales.  There was also continuing strong demand for 3+ bedroom luxury apartments in the city from downsizers and empty nesters.
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jonathanchancellor-7SQnKwU6yx

Castle Residences in Sydney CBD secure 50 percent initial sales

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Auction volumes rose to their highest level in three months, according to CoreLogic, with Canberra taking the mantle of best selling capital city as cracks emerged in the traditional auction powerhouse, Melbourne.
The number of homes taken nationally to auction rose to 2,000, compared with 1,850 over the prior week.
The preliminary auction clearance rate of 70.5 per cent was up on last week’s final 68.2 percent clearance rate.
Over the corresponding weekend last year, the clearance rate was higher at 75 per cent but on less stock, as just 1,471 auctions were held.
Canberra was the weekend's strongest auction market with an 87 percent success rate.
Its top sale was a five bedroom Forrest house sold for $2.875 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-act-forrest-125971866" target="_blank">27 Tasmania Circle</a>, the home was built in 2012 on its 1367 sqm block opposite historic Collins Park.
Luton Properties also sold the nation capital's cheapest offering, a two bedroom MacGregor townhouse for $345,000.
Located at <a href="https://www.realestate.com.au/sold/property-townhouse-act-macgregor-125979282" target="_blank">13/204 Macfarlane Burnet Avenue</a>, the property is currently tenanted at $360 per week.
Across Canberra a total of 57 auctions were held, compared to 69 last weekend.
Canberra’s preliminary clearance rate was well up on the 70 percent of the previous weekend.
First home buyers have surged into the ACT market in strong numbers, according to Domain's chief economist, Dr Andrew Wilson.
Adelaide had the next best success rate, with 72.9 per cent of the 59 reported results sold.
It was a big improvement over the previous week’s 63 percent clearance rate and the 68.8 per cent one year ago.
Adelaide's offering ranged between an uninhabitable four bedroom house at <a href="https://www.realestate.com.au/property-house-sa-ingle+farm-123655150" target="_blank">29 Aranga Avenue</a>, Ingle Farm sold for $297,000 by the mortgagee and a $1.37 million sale of a four bedroom <a href="https://www.realestate.com.au/property-house-sa-campbelltown-125928814" target="_blank">Maynard Avenue</a>, Campbelltown house sold for $1.37 million.
With a 72 percent success rate, Sydney was next strongest narrowing pipping Melbourne’s preliminary clearance rate of 71 per cent.
"Melbourne has remained the stronger performer for many weeks, but it was possible that Melbourne’s final clearance rate could drop below the 70 per cent mark for the first time since July last year," CoreLogic's auction analyst Kevin Brogan suggested.
Domain's chief economist, Dr Andrew Wilson noted Melbourne was being "weighed down" by a surge in pre-spring listings after an unusually hot winter market.
The Melbourne clearance rate was down from last week’s final clearance rate of 73.9 per cent and lower the clearance rate for the city one year ago (78.9 per cent).
Melbourne was host to 948 auctions, higher than the 911 held last week, and substantially higher than a year ago when there were 605 Melbourne auctions held over the week.
Of the nine Melbourne sub-regions, the strongest performer, in terms of clearance rate was the North East with a 78.6 per cent success rate.
Sydney’s preliminary clearance rate this week was 72 per cent across 625 notified auction results from a total of 782 auctions held across the city.
"Looking back at this weekend last year, 635 auctions were held across Sydney and a clearance rate of 78.3 per cent was recorded," Brogan noted. 
An $8 harbour front at Longueville was the nation's most expensive weekend auction sale.
Built in 1970, the five bedroom property was last sold in 2006 for $5 million.
It features a split level design on its 1277 sq m block at <a href="https://www.realestate.com.au/property-house-nsw-longueville-125980638" target="_blank">40A Mary Street</a>.
The offering through McGrath Estate Agents came with pool, jetty, boatshed and deep mooring.
Melbourne's top two sales were development sites including a Camberwell site sold at $5.01 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-vic-camberwell-125960974" target="_blank">5-7 Braeside Avenue</a>, the 1550 sqm site came with townhouse plans by Alta Architecture.
The property, approved for eight homes, sold through Marshall White.
The next top price was at Port Melbourne with a site fetching $4.75 million.
The Chapman Memorial Hall sits on a <a href="https://www.realestate.com.au/sold/property-other-vic-port+melbourne-126067106" target="_blank">711 sqm Ross Street site</a>.
An art deco Prahran house sold for $4.2 million. <a href="https://www.realestate.com.au/sold/property-house-vic-prahran-125959154" target="_blank">The Linden Court</a> home sold at $2,535,000 in 2011. 
A 1933 six bedroom Toorak home at <a href="https://www.realestate.com.au/property-house-vic-toorak-125941454" target="_blank">3 Myrnong Crescent</a> was passed in on a vendor bid of $7 million.   
Brisbane was host to 100 auctions with the 63 results reported, recording a preliminary clearance rate of 54 per cent.
Last week, auction volumes across the city were higher with 156 auctions held across the city and a 48.7 per cent clearance rate.
Brisbane cheapest result was a three bedroom Darra townhouse at $316,000.
Located at <a href="https://www.realestate.com.au/property-townhouse-qld-darra-125972834" target="_blank">102/35 Ashridge Road</a>, the property was marketed by Ray White as ideal for savvy investors with its likely rent estimated to be $370 to $390 per week.
In Perth, 32 auctions took place with 10 results reported so far.
Perth’s preliminary clearance rate was 40 per cent.
 
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Cracks emerge in oversupplied Melbourne August auction market

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The Chinese property apartment developer SJD, which recently acquired two adjoining sites in Double Bay, has unveiled its plans for the first luxury apartment complex.
The off-the-plan development, at 20-26 Cross Street, is being marketed with the Chinese development company giving it a rather bizarre name, 1788.
SJD recently secured the development site from veteran property developer Bill Roche for $54.6 million, reflecting around $1,750,000 per apartment based solely on its residential component. 
The bespoke residences are being marketed as an elegant sculptural architectural building drawing on the cultured European ambience of Double Bay with gentle concave and convex curves.
There will be 31 luxury residences.
Last month SJD snapped up the neighbouring commercial property paying a reputed $45 million.
The property, Bay Village at 28-32 Cross Street has a site area of around 1,030 sqm through father son team, Craig Pontey of Ray White Double Bay and Matt Pontey of Colliers International.
Double Bay, having been crippled by the opening of the Westfield Shopping Centre in Bondi Junction, is regaining its momentum after newly built prestige residential complexes, the reopening of the major hotel, a new library and the Kiora shopping space.
CBRE’s Ben Stewart, who is marketing the 1788 development, was having an each way bet on the direction Double Bay's demographic direction.
He noted he'd seen a change in the type of people living in and visiting Double Bay.
“Traditionally it was an older market – and it still is a downsizer market – but there is also a younger demographic coming in,” he says.
“However, empty nesters are a big part of the area as they like the village lifestyle.”
With architecture and interiors by Bates Smart, Stewart says 1788 was designed to attract the older demographic with the best finishes he'd ever seen, he said.
“The majority of units are facing north so the aspect is really good, and it’s a low-maintenance development so it’s low cost to maintain.”
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SJD launches luxury 1788 apartment project in Sydney's Double Bay

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Some 55 homeowners in Sydney’s Macquarie Park have become instant millionaires in one of the biggest amalgamations in the country, with a private developer paying $80 million.
The 5,130sqm site situated at <a href="https://www.savills.com.au/_news/article/109976/153819-0/6/2017/macquarie-park-home-owners-to-follow-successful-merger-trend" target="_blank">15-21 Cottonwood Crescent</a> has potential for a new mixed use landmark tower of 270 apartments plus ground floor commercial suites (STCA) extending up to 65 metres, circa 21 storeys.
Providing approximately 23,085sq m of Gross Floor Area, the site was sold in two stages, with the purchaser first securing 15-19 Cottonwood Crescent, and later 21 Cottonwood Crescent, resulting in the strongest sales rate per square metre of proposed GFA achieved to date for a collective sale.
Stuart Cox and Neil Cooke of Savills Australia conducted a five week campaign that resulted in over 220 enquiries being received.
There were over 50 requests for the due diligence material, resulting in 13 offers received at the close of the EOI.
According to Stuart Cox, Director of Residential Site Sales at Savills Australia, this site was considered one of the most premium sites offered to the market within Macquarie Park given its elevated nature perched high upon the intersection of Waterloo Road and Cottonwood Crescent, its close proximity to Macquarie Centre, Macquarie University Railway Station and Macquarie University.
“Given the strong demand for the site, we undertook a second round EOI that resulted in a record sale price being achieved for the site.
“Of the 13 EOI’s received, 12 were from offshore large scale Asian developers drawn to the area by the vast array of amenities on offer within this suburb, namely retail, education and excellent transport” he said.
The site benefits from an amazing northerly aspect overlooking Macquarie Centre as well as over Elouera Reserve to the north-western elevation.
All future redevelopment in this area will be constructed to the south of the site.
The lawyer acting for the owners, Mr Ian McKnight of ClarkeKann Lawyers, said that he was able to devise a legally innovative and effective means to enable the owners to collectively sell their properties which provided a lot of certainty for both sides during the sale campaign.
According to Neil Cooke, Director of Residential Site Sales at Savills Australia, 91 per cent of the neighbours agreed to combine their properties in a bid to further evolve the master planned community of Macquarie Park.
“The new Strata Law reform legislation, particularly in well located areas, gives owners whom join together in a collective sale offering of over 75 per cent, substantial uplift benefit at a time when their existing capital works programs are becoming cost prohibitive."
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55 millionaires in Macquarie Park site consolidation

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A local buyer has offered around $18 million for a penthouse at Shanghai United's luxury apartment project, Castle Residences ahead of its launch this Saturday.
It is understood the buyer has offered to pay more than $60,000 a square metre for the 300 sqm penthouse.
Its price will almost mirror AMP Capital's recent Circular Quay Loftus Lane penthouse sale at $67,000 a square metre in June.
<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/2017/08/10/Castle-2.jpg" alt="">
Shanghai United has more than 100 buyers have registered to buy the first 80 luxury apartments at Castle Residences project, including 21 Melbourne private buyers who flew up to Sydney on Monday to personally register for the apartments after seeing an advertisement for the apartments in a Chinese newspaper.
CBRE is marketing the project.
"Interests have exceeded our expectations," Shanghai United chief executive Yangdong Xu said.
<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/2017/08/10/Castle-3.jpg" alt="">
"Potential buyers have said the combination of a five-star hotel in a mixed-use apartment project in a good location was key."
The $380 million project at 110-118 Bathurst and 203 Castlereagh Streets is a mixed-use tower incorporating the 121-room Porter House Hotel, MGallery by Sofitel and 131 apartments known as Castle Residence Apartments.
The hotel, by Accorhotels will be on levels one to nine and the apartments will be located above it.
One of the Melbourne buyers, Raymond Wang, said the inclusion of the hotel in an apartment tower especially in a top location like Sydney CBD would raise its value.
<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/2017/08/10/Castle-4.jpg" alt="">
"In Melbourne there are so many apartments but Sydney's supply shortage and stable rents are more attractive to an investor," he told Shanghai United.
Shanghai United, which is backed by 10 mainland developers, has gone from strength to strength since arriving on the Australian property scene just over a year ago.
Its latest acquisition is Sydney Double Bay's Intercontinental Hotel for $140 million.
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