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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Melbourne-based development company R.Corporation has acquired a 7,620 square metre former textiles factory site in West Brunswick.
The site, at 8 Olive York Way, West Brunswick, has been vacant since 2000 and is six kilometres from the CBD.
The amenity, direct aspect to transport and Citylink, and the characteristics of the neighbourhood, were noted as reasons for the acquisition, particularly as the latest Census 2011 notes that 30% of Brunswick West residents catch public transport, primarily the tram system.
R.Corp, who developed Clara South Yarra, are expected to imitate their previous project.
This new site is adjacent to 1.4 acres of parkland, which are subject to a $300,000 upgrade by council.
At present they are in development planning stage for what is <a href="https://www.rcorporation.com.au/apartment/the-york-west-brunswick/%20" target="_blank" style="line-height: 1.3em;">expected to be called The York</a>, and include one and two bedroom apartments.
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jduke-EHk3XBmHkn

R.Corp makes West Brunswick acquisition, with residential plans

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A commercial office building at 2-6 Bowes Street (pictured above) in Canberra's Phillip was recently launched after undergoing a significant refurbishment to improve its energy efficiency.
The building, owned by boutique property fund manager Quintessential Equity, is targeting a 5-star National Australian Built Environment Rating System (NABERS) energy rating. The company recently acquired two other commercial properties in Canberra, 14 Moore Street and the Optus Centre in Civic.
We spoke to Russell Bullen, head of Property at Quintessential Equity, about energy efficiency in the commercial property space.
How has the demand for "green" office spaces changed over the past ten years?
It's certainly evolved significantly in that time. I think the whole "green movement" gained a lot of momentum, and it was certainly assisted by the government's changes to legislation around disclosure.
If you sell or lease a building, you now have to disclose your NABERS  energy rating.
Up until the changes, it was really dependent on market forces. It was up to tenants to really demand energy efficient buildings, or really up to the landlords, off their own backs, to disclose. So once the legislation came in, it provided more accountability around energy efficiency - if you had a building with poor energy efficiency, but didn't have to disclose it, there wasn't much of an incentive to improve that.
I think that's probably been the biggest change in that time period.
What are some elements that make commercial office buildings "green"?
Probably one of the things that gets forgotten is management.
And one of the biggest improvements in energy efficiency, and reducing our carbon footprint, is good management. We have a national engineering manager whose main focus is just that. That is probably one of the biggest impacts that you can make to a building - making it operate efficiently.
Apart from that, you can introduce things that are very costly, in terms of plant and equipment. You can improve heating and chilling and make that more energy efficient, and also use computer building management systems to improve efficiency.
What are the benefits of energy efficient office buildings to investors and tenants?
From a tenant's perspective, the operating costs are less.
We've got a project in Parramatta, where we were awarded Best Commercial Building Energy Efficiency Project by the Energy Efficiency Council. We've seen the electricity costs in that building fall by more than a third from work that we did. We were able also to achieve a four and a half star NABERS energy rating there.
The reduction of cost is a real and tangible benefit, and you also of course have an environmental benefit.
But also buildings that have a higher NABERS rating have a greater level of comfort and reliability, which is better for landlords because it improves tenant retention. From a landlord or investor's perspective, if you can make a building run efficiently, reliably and comfortably, you're going to retain tenants for longer.
Outside of Canberra, are there places where energy efficient office spaces are in greater demand than others?
If you had to say one location where energy efficient buildings were more in demand, it probably is Canberra. In Canberra, over two thirds of tenant demand is from the government (either Commonwealth or ACT). They actually have requirements within their leases that buildings have to achieve certain levels of energy efficiency.
Outside the ACT, in general, CBDs where there are large corporations who also have efficiency targets also show strong demand.
What role do you predict "green" innovation and energy efficiency will play in the commercial property market in 10 years time?
It's a difficult question, because there was certainly a strong impetus for energy efficiency, but when the GFC [global financial crisis] happened, there was a focus on cutting costs. And that's the thing with achieving energy efficiency - there is an upfront capital cost.
But if you take a 30,000 foot view, it's inevitable that it will continue to grow and get more traction. Disclosure obligations aren't going to go away. Companies are more and more focussed on their costs, and that's only going to continue in terms of ongoing operations. Outgoings are a significant part of companies' operating costs - so energy efficiency is not going to go away.
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jrichardson-uRX5hFdKfN

Q&A with Russell Bullen of Quintessential Equity

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Strong sales demand and further house price growth is expected over the rest of 2014, according to ANZ.
In the ANZ Australian Housing Market Update, David Cannington noted that auction sales prices have eased with fewer cleared auctions in all capitals for the past week.
Despite this, demand is still strong and in Sydney the elevated auction clearance rate, albeit on a lower number of auctions, was maintained. Melbourne eased below 65% for the first time in 11 weeks.
House prices are continuing to edge higher, with price growth trend remaining strongest in Melbourne, at 1.7% month on month, followed by Sydney at 1.1% month on month.
Brisbane and Perth have remained largely unchanged.
“Reflecting steady consumer confidence in recent weeks, elevated auction sales in Sydney and Melbourne in particular foreshadow strong sales demand and further housing price gains in the remaining months of 2014,” Cannington’s research explained.
<img src="/images/2014/08/27/anz%20aug%2027%20one.png" alt="">
Source: ANZ.
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Strong sales demand and further housing price gains in 2014 for Sydney and Melbourne: ANZ

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The former Mooroolbark Primary School site is being turned into a property development of 79 residences by developer Three Pillars.
It will be known as the <a href="https://threepillars.com.au/portfolio-type/mooroolbark/" target="_blank">Central Ave Mooroolbark</a> estate and will bring life to a site that has been vacant since the school’s closing and subsequent demolition in 2004.
On the corner of Manchester Road and Lincoln Road, Three Pillars purchased the land in 2012 with the new houses to be built by Edgepoint Homes.
The first two stages are nearly sold out, with Stage Three released earlier this month.
Remaining allotments include double- and triple-storey townhouses. They vary up to four bedrooms, but all have two-bedrooms with off-street parking.
From $370,000 to $440,000, they vary from 133 square metres to 188 square metres, looking to attract both homebuyers and investors.
Three Pillars’ director Ben Thomas said that families, first home buyers and downsizers are among the interested buyers.
“We are already seeing confirmation of its universal appeal in our sales results, which reveal that 30&amp; of our buyers are first-home buyers, 40% are second and third home buyers and 30% are investors,” said Thomas.
Three Pillars purchased the site from the Department of Education for $4.6 million.
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Former Mooroolbark Primary School site to become 79 new homes

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Known to many local children as the ''Addams Family haunted house'', the Paddington home, Verulam has been listed for the first time since the 1920s.
The three-level Federation Queen Anne-styled offering was turned into a ''gentleman's residence'' in 1873 having previously been a farmhouse.
Set on its 393 square metre Moore Park Road block, Verulam has a price guide of $2.5 million through agent Louise Snowden of Raine &amp; Horne Double Bay.
There were initial $2 million plus indications for the house set opposite the SCG and Allianz Stadium.
The <a href="https://www.realestate.com.au/property-house-nsw-paddington-117671911" target="_blank">284 Moore Park Road property</a> comes with rear stables space.
Verulam, <a href="https://en.wikipedia.org/wiki/Verulamium" target="_blank">named after an ancient town in the south of Roman-occupied Britain</a>, has been listed for 11 September auction following the death of 98 year old Jacqueline Mary Schmidt, who once had a Nambucca district retreat at Station Street, Eungai Rail.
 
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jchancellor-FAypfDUnLy

Paddington's Verulum - the "Addams Family house" - listed with $2.5 million hopes

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GUEST OBSERVATION
The last few years have seen a move away from an Australian property market determined by seasonality, to one driven by consistently high levels of demand from buyers. To most observers, the seasons of real estate all but disappeared.
However the market has recently demonstrated a return to seasonal buying behaviour, with activity dropping off over the winter months and listing activity starting to pick up before spring. This is good news for the Australian property market as we enter into the traditionally busy spring selling season, with national clearance rates now holding steady at 68%.
The Reserve Bank has also kept rates on hold at 2.5% for the twelfth consecutive month leading into spring, making it the longest period without a rate movement since 2006. This has led to some commentators expressing concern that property owners will be adversely affected should the Reserve Bank decide to lift rates upwards.
However, the buying public has been hearing a variety of messages for quite some time now which suggest that they should prepare themselves for an interest rate rise in the not too distant future. 
As a result, buyers are aware that interest rates have been held at low levels for an unprecedented period and have likely responded by budgeting against any adverse effects from future interest rate fluctuations. For those who haven’t, I would suggest speaking with a professional about budgeting for such a possibility.
Finally, the jobless rate recently reached 6.4%, sparking concern for the state of the economy as a whole. However, while many people may be understandably concerned, the unemployment rate across the country is low in comparison to other world marketplaces which are still in growth mode.
I don’t believe the Australian property market will be affected by the unemployment rate at this stage, which is likely to continue to experience modest growth through to the end of the year. However, it is worth noting that a rising unemployment rate may influence the Reserve Bank’s thinking on future interest rate decisions.
All things considered, I believe we can look forward to a busy and productive spring selling season.
Charles Tarbey is the chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>, one of Australasia’s largest and most diverse property groups.  
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ctarbey-W47GL9jwxa

Despite some economic uncertainty, we can look forward to a busy spring

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An 1834 four level Millers Point dwelling in the Colonial Regency style fetched $2.56 million at auction tonight.
Offered for the first time in over a century, <a href="https://www.domain.com.au/property/for-sale/house/nsw/millers-point/?adid=2011319939" target="_blank">29 Lower Fort Street</a>, was sold at auction by the NSW state government. 
The five-bedroom heritage listed townhouse (see plan below) with a 6.5 metre frontage has extensive views of Sydney Harbour.
Requests by Property Observer for the price guidance provided to buyers were not met prior to publication by the office of Dominic Perrottet, the Minister for Finance and Services.
The <a href="https://www.onthehouse.com.au/reports/property_profile/11919684/29_Lower_Fort_Street_DAWES_POINT_NSW_2000/" target="_blank">onthehouse website</a> gave a $1.89 million to $2.01 million estimate in May for tonight's 169 square metre offering.
The adjoining terrace - <a href="https://www.realestate.com.au/property-house-nsw-millers+point-105847297" target="_blank">on 147 square metres - sold as leasehold in 2009 at $1.025 million</a>.
It followed last week’s sale of a property for $1.91 million on Kent Street (pictured top above) with Walsh Bay water views at well over price guidance.
The first offer was on a 109 square metre holding.
“All proceeds from sales will go straight back into maintenance and building contemporary social housing that is so urgently needed," the Minister for Family and Community Services, Gabrielle Upton said.
There are currently three other properties on the market as part of the Government’s first tranche of freehold sales in the Millers Point precinct. 
"The real estate agent had more than 200 prospective buyers inspected the premises with more than 60 pre-auction contracts issued.
The initial sales in Millers Point are setting the freehold market, as the prior sales campaign begun by the Labor government in 2009 offered property on 99 year leaseholds.
<a id="photoLink" href="https://www.propertyobserver.com.au/https://www.allhomes.com.au/ah/nsw/sale-residential/29-lower-fort-street-millers-point-sydney/14140337912311?lid=169173927&amp;pid=1403379123"><img class="photo" src="https://ee76d6753238c242b807-86a86923a0d3a601a8260e746ceafc0b.r51.cf4.rackcdn.com/ahda/property/photo/2014/07/21/eca61d4c05956cf0b106f641ad873b61_l.jpg" alt="" title=""></a>
Protesters to the relocation of housing department tenants again <a href="https://www.facebook.com/millerspointsaveourhomes/photos/pcb.905537062794191/905536632794234/?type=1&amp;theater" target="_blank">were refused admittance to the auction</a>.
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The second Millers Point offering fetches $2.56 million for state government housing

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<blockquote>
There are some people who say you shouldn’t mix politics and music, or sports and politics. Well… I think that’s kind of bulls*#t.
<cite>Adam Clayton, U2</cite>
</blockquote>

Politics and culture have an intrinsic relationship upon each other. Whilst there are some people who attempt to separate the two, in order to justify their apathy, a quick read of a typical Melbourne newspaper would show how politics is so effectively entwined with our cultural pursuits. Architecture endeavours to reflect our culture but it is also caught up within it.

In the 2010 State election, Victorian’s voted in the Liberal / National Party coalition. The new government was led by Ted Baillieu – an Architect who was sworn in as Premier of the State. Among the more public pre-election commitments was the Flinders Street Station Design Ideas Competition. This policy was implemented within the first 12 months with the international competition launched in November 2011.

The decision to run a competition for Melbourne’s most important landmark is quite controversial to this day. The detractors would argue that with no commitment to undertake the project, the efforts and the taxpayer money used to run the competition have been wasted. This would appear quite short sighted given the importance and the longevity of the landmark in question. As a result of Victorians voting in a design-intelligent Premier, we now have a fantastic design which has proven design merit.

This design allows the public and the decision makers to talk about the project in specific detail rather than in the abstract.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_3191.jpg" rel="gallery-all" title="Parliament House, Melbourne."><img alt="" class="image-article-full-width-580px" height="435" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/img_3191.jpg?itok=iBFksIm-" title="Parliament House, Melbourne." width="580"></a>

<figcaption>Parliament House, Melbourne.</figcaption></figure>A far more subtle policy resulting from an Architect Premier was the introduction of the Design Review Panel at the Office of the Victorian Government Architect. This service offers high level independent design advice to various Government bodies who procure or approve public projects. Typical projects include hospitals, libraries, transport infrastructure projects and community master plans.

Between 2012 and 2014 over 100 projects have been reviewed under this system. To accurately assess the quality of the design review program, an audit by SGS Economics was undertaken in December 2013. This independent review found overwhelming support for the scheme from those who had participated, proving with hard evidence the value of design.

<a href="http://www.ovga.vic.gov.au/images/VDRP_Key_Achievements_June2014.pdf">Click here</a> for further information on the key achievements of the Design Review Panel.

In July 2012 the Government then decided to embark on the most significant reform to the planning system in 30 years. The process began with a set of proposed changes which were open to public submissions. Naturally, given the city shaping nature of the proposed changes, The Australian Institute of Architects put forward their considered opinion. In their <a href="http://www.architecture.com.au/docs/default-source/national-policy/121001-viczoningreview-final.pdf?sfvrsn=2">submission</a> they highlighted some points of agreement such as the benefits in reduction of red tape. However there were also grave concerns about the process and the consequences.

<blockquote>
One effect of mandated outcomes is likely to be a greater focus on height rather than design as the relevant arbiter of what defines acceptable development.

A strategic justification and narrative to explain the zone changes is needed, and the process that has informed them lacks clarity.
<cite>Australian Institute of Architects, September 2012</cite>
</blockquote>

Next in the series of reforms were the changes to the Architects Act and the Architects Registration Board of Victoria mooted in <a href="http://theredandblackarchitect.wordpress.com/2012/12/14/a-red-and-black-investigation-into-the-future-of-the-architects-registration-board-of-victoria/">November 2012</a>. This was deeply concerning to Architects in Victoria at the time, however the fact that the Premier himself was an Architect provided significant reassurance to the profession.

At the time the Victorian President of the AIA, Jon Clements provided this comment to the Red and Black Architect:

<blockquote>
It is fair to say that under the current government leadership, noting that the Premier is himself an architect and an Institute member, that it is highly unlikely that we will see any diminishment of the role of the architect in the building industry.
<cite>Jon Clements, December 2012</cite>
</blockquote>

Then three months later the politics changed. The political train wreck of MP Geoff Shaw threw the Baillieu government into crisis upon his resignation from the Liberal Party. Hours later Ted Baillieu had also resigned as leader of the Liberal Party and as a consequence Dennis Napthine was installed as the new Victorian Premier.

Perhaps in an effort to make his own mark and stamp his authority, Napthine ordered a restructure of the government departments which resulted in the Department of Transport, Planning and Local Infrastructure (DTPLI) being established on the 9th of April 2013. With this change, the Office for the Victorian Government Architect was relegated from reporting directly to the premier, to instead working under the DTPLI. Yet again the importance of design was eroded from what was previously a design conscious government.

Since then the planning reforms have been pushed through and are currently being finalized. In the Winter edition of Architect Victoria, the AIA once again highlighted the dangers and consequences of the State Governments actions.

<blockquote>
The Institute believes that the proposed zoning changes, if implemented in the form requested by local councils, will be a huge step backwards for planning and design in Melbourne.

The risks faced are very real:

Reduced housing affordability

Reduced diversity of housing for aged and low income households

Difficulty for small-medium scale developers to find suitable sites.
<cite>Australian Institute of Architects August 2014</cite>
</blockquote>

As bad as the situation has become, an even bigger concern is that it appears that the peak body of Architects is being flat-out ignored by the Planning Minister, Matthew Guy.

<blockquote>
In the last four years the [Victorian] Chapter [of the Australian Institute of Architects] has only been able to secure one direct face to face meeting with the [Planning] Minister. He has refused all invitations to attend institute events in this time.
<cite>Alison Cleary, Victorian Chapter Manager of the Australian Institute of Architects.</cite>
</blockquote>

This is akin to the Minister for Health refusing to meet with the Australian Medical Association. It projects incompetence and arrogance of the highest manner. Furthermore it is not as if Matthew Guy is himself an expert on the Built Environment. Matthew Guy’s comments (<a href="http://www.heraldsun.com.au/news/victoria/planning-minister-matthew-guy-no-fan-of-ugly-hoyts-cinema-building/story-fni0fit3-1226814345343">as reported in the Herald Sun</a>) regarding Melbourne’s Brutalist Architect expose his limited understanding.

<blockquote>
People use the term brutalist architecture to legitimise ugly buildings.
<cite>Matthew Guy, Minister for Planning</cite>
</blockquote>

Again to analogise this to the medical profession, this statement is the equivalent of the Health Minister making a comment such as ‘people use the term mental illness to legitimise hospital care’. Both outrageous comments should draw instant condemnation of a minister so out of touch with their field of influence.

Within a single term of government from 2010 to 2014 we have gone from a design-intelligent and architecturally progressive State Government, to one which has marginalized those best able to advise it. The public who voted in the Architect Premier in 2010 have every right to feel let down by the party politics that has led to this point.

In November 2014, Victoria will head to the polls to elect the next Government. More than anything Victoria deserves a government that is willing to take and act upon advice from experts in all fields and not just presume that it knows best. We need a new Planning Minister who will listen to the Australian Institute of Architects. We need the Office of the Victorian Government Architect reporting directly to the Premiers Office as it was always intended to. Finally we need to end this obsession with building the East West Link at all costs. The built environment is too important to be the plaything of politicians.

Michael Smith is Director of Melbourne architecture firm <a href="http://redblackarch.com.au/">Atelier Red + Black</a>. This article originally appeared on <a href="http://theredandblackarchitect.wordpress.com/">The Red and Black Architect blog</a>.
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redblackarchitect

Architecture and Politics

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The weekend offering in Majorca House on the corner of Flinders Lane and Degraves Street in the Melbourne CBD fetched $750,000.
The 1928 fifth-level apartment now sits among the coffee and cafe-filled laneways.
It last sold for $315,000 in 2003.
The floorplan allows either for two bedrooms or a huge living-dining room.
It was offered<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-117552031" target="_blank"> through Melbourne Boutique Property agents Gina Donazzan and Mark Connellan</a> whose price guidance for 504/258 Flinders Lane was $600,000 plus.
The building was designed by art deco architect Harry Norris.
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Majorca House, Flinders Lane Melbourne apartment sells

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Market Outlook: unchanged - neutral with negative bias
<ul>
<li>Attractiveness of renting as a preferred accommodation option has further increased (as at June 2014).</li>
<li>Purchase affordability is still very high, although slowly declining - this provides strong support for prices at the current level (as at June 2014).</li>
<li>Confidence in the economy continues to deteriorate with no signs of improvement (as at August 2014).</li>
<li>Housing Credit Impulse continues to grow, indicating there is still plenty of demand for residential real estate (as at June 2014).</li>
<li>Actual prices are above what could be expected based on changes in housing credit - although the margin is reasonable it makes prices very sensitive to adverse changes in economic conditions (as at June 2014). </li>
</ul>
National Real Estate Price Forecast
With purchase affordability at a decade high, the underlying demand for residential real estate in Australia remains strong and property prices continue on the upward trajectory, albeit at a slowing pace.
The current price level remains slightly elevated in relation to the underlying mortgage credit flowing into the market, indicating that prices are vulnerable and may suffer an unexpected stall or even reversal at this level (slowing price growth is a manifestation of this vulnerability).
Since buyers are now at disadvantage to renters due to faster rising costs of buying, return to wide spread optimism about the economy is a prerequisite for the continuation of strong price growth.
However, pessimism about the state of the economy is not improving, and hence, it poses a serious threat of derailing what is otherwise quite a robust market.
A sudden return of optimism could reinvigorate buyers and lead to a very substantial jump in prices in the coming months (since buying costs compared to average incomes are still at historical lows).
However, the more likely scenarios at present are either no improvement in perceptions about the state of economy, or a further rise in pessimism. Although this will not crash the market in the short-term, nevertheless, it can potentially put the lid on further price growth in September and December quarters.
Detailed analysis starts on the next page. Please click below.
<hr class="system-pagebreak">
Detailed Analysis
<ul>
<li>optimal accommodation choice: attraction of renting is increasing</li>
</ul>
 <img src="/images/2014/08/26/BRI_August2014.png" alt="">
The Buy-Rent Indicator (BRI) identifies how cost of buying is changing in relation to cost of renting.
BRI bottomed in June 2012 (indicating the lowest point in the current cycle) and it has been rising consistently since then. The indicator crossed the equilibrium line in March 2014 and continues on an upward trajectory.
This indicator is constructed based on the simple concept that renting and buying are substitute accommodation options, hence the optimal choice depends on which accommodation cost is rising in relation to the other. The practical use of this indicator is for identifying market cycles and for timing purchase and sale decisions.
The crossing of the indicator from buy to rent zone gives a signal that buying costs are starting to rise faster than rental costs.
In a market where property prices are rising, this marks the point in time when opportunities to purchase a property at attractive prices are limited.
For those intending to sell in the current cycle, it marks a time to start preparing for the sale - the optimal point for selling the property will be when the indicator peaks, which should coincide with an interim peak in property prices.
We are already two years into the current cycle and the next peak should be anticipated sooner rather than later.
Trough-to-peak of two years in duration was not uncommon in the last 30 years but there were also a few cycles with an uptrend as short a 16 months and the longest recorded was just over 3.5 years in duration. 
Further strong increases in property prices and/or a rise in interest rates will increase the cost of buying relative to the cost of renting, making purchasing a much harder option to choose than it is at present. Therefore, fast moving prices can lead to a quite dramatic reduction in the demand for properties and, in effect, shorten the overall cycle.
Stagnating or slowly growing prices can potentially limit the negative impact on demand as growth in buying costs will be offset to a large degree by rising rental costs. This can delay the peak and extend the duration of the overall cycle.
Indicators show that this cycle is a slow moving one and therefore the next peak may be still some way off (i.e. up to two years based on historical evidence). However, it all depends how fast prices and/or interest rates move up from here onwards.
<ul>
<li>purchase affordability: at a historically high level and falling, but only just</li>
</ul>
 <img src="/images/2014/08/26/PAI_August2014.png" alt="">
The Purchase Affordability Indicator (PAI) compares changes in the annual cost of buying to changes in average full time adult income, therefore it identifies how purchase affordability has changed over time.
PAI is at historically high level and the revised June 2014 value has recorded only a small fall in relation to the previous month reading.
This indicator explains that, relative to incomes of Australians working full time, property prices are still very affordable.
In fact, the cost of buying a median priced property relative to average income is now 27.4% lower than it was in 1986. So, given the expectations of long term low interest rates, there is still a lot of room for prices to move before Australian property can be considered overvalued.
Since purchase affordability is declining very slowly at the moment, the support for current prices appears to be strong. It means that the property market should be very resilient if Australia were to experience a case a mild economic turbulence in the near future.
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<ul>
<li>perceptions about economy: negative and deteriorating</li>
</ul>
 <img src="/images/2014/08/26/EWI_August2014.png" alt="">
The Economic Wellbeing Index (EWI) is designed to reflect general perceptions of Australians about the current economic conditions.
The EWI is falling since June 2013. August 2014 estimate is in the negative territory and continues to fall. A more volatile raw measure is also down and the signs of recovery highlighted last month were short lived.
The key premise behind this indicator is that people are generally less inclined to make big purchases when they are worried about the state of the economy.
Actual prices cannot be expected to advance strongly for much longer if there is no substantial change in perceptions about the economy.
If such a change comes soon, we should experience a very vibrant spring selling season, where prices continue to rise strongly.
However, if pessimism prevails, which as this stage seems to be the more likely scenario, it will most likely put a dampener on the pace of further price growth due to reduction in demand for properties.
Nevertheless, there is no reason to panic just yet as the likelihood of prices falling is still very minimal. However, a flat-lining market is not totally out of the question. 
<ul>
<li>demand: still strong and trend is not yet changing</li>
</ul>
 <img src="/images/2014/08/26/PHCI_August2014.png" alt="">
The Private Housing Credit Impulse (PHCI) provides an indication of the level of buyer activity in the residential property market in Australia, hence it reflects underlying demand for properties.
The June 2014 PHCI estimate is positive and the value of the indicator is at its highest since December 2011.
The June value of PHCI is subject to final revision but it is very unlikely the indicator will change from its current direction.
The practical use of this indicator is to provide early warning about impending changes in housing credit uptake, and hence, changes in the underlying demand for residential property.
A positive and rising value of the indicator reflects continued strong demand for residential property. When the indicator turns down, it will signal a change in the underlying demand.
Investors stepping aside, as reported recently in the media, may prove to be the catalyst for change if they are not replaced by home-upgraders and first home buyers. However, so far, the demand holds quite strongly despite rising pessimism about the economy. 
<ul>
<li>property price expectation: growth to slow or flatten</li>
</ul>
 <img src="/images/2014/08/26/PPG_August2014.png" alt="">
The Property Prices Gauge (PPG) is a proxy of a property price index. It becomes a leading indicator when combined with House Price Index (HPI).
PPG recorded a small jump in June 2014. However, actual prices (June 2014 House Price Index) also increased by a similar margin and remain above what could be expected based on housing credit growth. 
The rebound in PPG provided evidence of a relatively strong support for the current prices.
However, the 12 month rate of growth in prices has now started to slow, reflecting softer market conditions in the last few months, as indicated by a flattening PPG.
Despite the rate of growth in prices moderating and PPG recording some gains in June, the gap between the two is not narrowing. It implies that property prices are vulnerable at this level and can unexpectedly stall or maybe even record a small fall.
If the rebound in PPG continues in coming months it will indicate a strong probability of further rises in property prices in the September quarter and beyond. However, any divergence from this uptrend will imply an underlying weakness in the market and hence greater uncertainty about the direction of property prices.
Arek Drozda is an independent property market analyst.
Caveat: The information is provided in good faith and does not constitute financial advice. Use with caution and at own risk.
For more extended description of individual measures and how to apply this information please refer to the first report in this series: <a href="/expert-insights/buying/buying-more-advantageous-than-renting-yet-change-imminent-april-2014-state-of-the-market-analysis">State of the Property Market, April 2014</a>.
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