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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Musk Farm sold at its overcast onsite weekend auction for $1.59 million through the Pat Rice &amp; Hawkins agency.
The late interior designer Stuart Rattle and cattle farmer Michael O'Neill, partners for 16 years, paid $93,000 in 1998 with a $76,000 mortgage, for what was to become their expanded renovated Musk Farm, Daylesford masterpiece.
Selling agent Matt Childs had anticipated the <a href="https://www.realestateview.com.au/Real-Estate/11-school-road-musk/Property-Details-buy-residential-7025401" target="_blank">cottage</a> on 1.2 hectares would <a href="https://www.realestateview.com.au/Real-Estate/11-school-road-musk/Property-Details-buy-residential-7025401" target="_blank">fetch $1 million plus</a>, with it announced on the market at $1.14 million.
<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/2014/06/02/musk-june-2-two.jpg" alt="">
There were six bidders who pushed the final sale price well above expectation after the $850,000 opening bid by the eventual buyer. Property Observer gathers the East Melbourne buyers will have Musk Farm as their weekender.
The auction attracted 350 plus attendees to the Victorian central highlands offering. The underbidder, standing with glasses (pictured below), congratulated the buyer in the sienna orange jumper.
<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/2014/06/02/musk-june-2-four.jpg" alt="">
 <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/2014/06/02/musk-june-2-one.jpg" alt="">
A clearance rate of 73% was recorded this weekend compared to 71% last weekend, from the bumper 1,057 auctions reported to the REIV. More than 10,000 homes have been sold at auction so far this year.
The Rattle estate included an adjoining 30 hectare cattle farm lot in the acclaimed Daylesford district expected to fetch $550,000 plus, sold for $660,000 to other buyers. Subject to council approval, the holding could get a residence since it qualified above the 20 hectare minimum block size.
<a href="/news/vic/musk-farm-the-stuart-rattle-michael-oneill-garden-estate-listed-for-auction">The former school property</a> started as a derelict garden overun with blackberries. 
<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/2014/06/02/musk-june-2-three.jpg" alt="">
But taking their inspiration from the English Arts and Crafts movement of Edwin Lutyens and Gertrude Jekyll, the couple set about its restoration starting with the planting of hydrangeas outside the 1880s old school house.
It comes with chinese tea house and a garden with 16 distinct garden rooms, joined by interconnecting walkways, and separated by large clipped hedges, English Box (Buxus sempervirens) and viburnum (Viburnum spp) and Ligustrum vulgare (Privet).
The garden, especially the pond, was not to its usual amazing high open day standard, looking slightly unkempt given the constraint on funds since the events of last December.
Attendees could partake in scones, iced yo-yos and Lavazza coffee with Peter Rowland catering.
Mossgreen auctioned the contents having set a pre-sale estimate of $299,000, but strong interest from around 600 registered bidders secured a sales tally of $711,000. A portrait of James, Duke of York, sold for $26,840, including buyers' premium. The family will donate a statue called The Thorn Boy from the gardens to the Wombat Botanical Gardens as a memorial for Stuart Rattle.
<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/2014/06/02/musk-june-2-five.jpg" alt="">
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jchancellor-FAypfDUnLy

Musk Farm sale draws big crowd to Stuart Rattle garden estate auction

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Buyers looking for a taste of inner city living with a heritage twist will get their opportunity on Saturday 30 May as the Yorkshire Brewery development launches.
The development by SMA at the old Yorkshire Brewery site in Collingwood releases the first of its 358 apartments and townhouses to the public this weekend following a media launch on Thursday night.
SMA’s Martin Strode and Tom Jordan of architectural firm Hayball unveiled the plans for the 4,500 square metre site. The heritage plot on Wellington Street will be redeveloped into three residential towers, including the brew tower itself, which at the time of its construction in 1880 was Australia’s tallest building.
The development will also include Yorkshire Square, a 480 square metre piazza that Strode says is planned to house a weekend market. There are also plans for the Brew Towers Café (the site of last night’s event), a delicatessen and a gym and yoga centre. A local gallery has also been engaged to commission a sculpture for the centre of the square.
<img src="/images/2014/05/30/collingwood-aug-7-six.jpg" alt="">
With such a strong offering of onsite facilities, there’s no doubt that SMA hopes to tap in to the recently gentrified lifestyle market offered by Collingwood (and coveted by cashed up aspiring Collingwood residents). Under the expert eye of heritage architect Peter Lovell working with Heritage Victoria, SMA promises to retain and restore the historical (and nostalgic) value of the site.
<img src="/images/2014/05/30/yorkshire-may-30.jpg" alt="">
Thursday night’s media launch finished with a beer masterclass from Clifton Hill Brewpub’s head brewer Costa Nikias. The craft brewer took the attendees through a range of craft beers and contemplated the recent boom in demand for artisanal beers.
“We’re trading up in our choices,” mused Costa. “With beer, with food, with everything.” 
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jrichardson-uRX5hFdKfN

Collingwood’s Yorkshire Brewery to launch this weekend

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The great Sydney weather and the five Saturdays in May before the June long weekend, have all assisted the record auction listing volumes.
And while there has been some buyer caution, certainly more evident than pre-Easter, the buyers have still put their hands up so that there have been record sales.
The have mostly maintained the revised auction clearance rate in the 70s.
It was running in the 80s pre-Easter especially on the preliminary results.
With bidding a little more cautious, the price growth has slowed a bit too.
Price are still rising, at around 2% a quarter, so down on the 15% annual rate of last year for Sydney.
One of the continued strong points has been the Chinese and Australian/Chinese buying.
It's remained especially strong in the off the plan offerings, and there are continued pockets of intensity in some established home markets, but I don't sense it is in the first home buyer segment.
This weekend is possibly the last big hurrah before the traditional winter hibernation. There are some 888 offerings, according to Australian Property Monitors.
Dr Andrew Wilson, the APM senior economist, notes Sydney’s inner west will host the most number of auctions this weekend with 160 followed by the city and east with 120.
The most popular suburbs listed for auction at the weekend in Sydney are <a href="/news">Mosman</a> on the lower north and <a href="/news">Epping</a> on the upper north shore, each with 12 homes scheduled to go under the hammer. 
Next most popular is <a href="/news">Randwick</a> in the city and east, <a href="/news">Blacktown</a> in the west, <a href="/news">Chatswood</a> on the upper north shore, <a href="/news">Maroubra</a> in the city and east and <a href="/news">Alexandria</a> in the inner west each with 11 homes listed for auction.
"Sydney will record its hottest ever autumn selling season with significantly more properties auctioned and sold over the first five months of this year compared to the same period in any other year," he advised.
The Sydney volumes have been at 100% higher than the same weekends last year on at least two weekends.
Sydney agents more than ever have been running campaigns this year urging vendors to consider winter listing.
They seem to have at least succeeded for the next fortnight as the long weekend has 380 scheduled auctions, which is 50% up on last year. 
Then some 570 offerings on the 14 June weekend, which is 25% busier than the same weekend last year.
Melbourne hasn't been too dis-similar although overcoming its early autumn waning, Melbourne's clearance rate is on the rise and the volumes have been running at around 50% higher listings  than last year.
However Melbourne’s weekend auction market will smash three records this weekend as the autumn selling season reaches a grand finale crescendo.
This weekend’s Super Saturday of auctions has 1,159 properties scheduled to going under the hammer which will be the third highest weekend for auctions this year, according to Dr Wilson.
"This year will not only break the record for the highest number of auctions ever conducted in the Melbourne metro area over a May with 4,450 listed, but will also likely break the record for the most number of auction sales recorded in the month of May.
"Melbourne has conducted more auctions over the first five months of this year than over the same period in any previous year," he said.
Melbourne’s inner suburbs dominate this weekend's auction listings with the inner east having 189 homes scheduled to go under the hammer, closely followed by the inner city with 188.
The most popular suburb for auction listings at the weekend in metro Melbourne is <a href="/news">Glen Iris</a> and <a href="/news">Richmond</a> each with 22.
With 18 auctions are <a href="/news">Brighton</a>, <a href="/news">Northcote</a> and <a href="/news">Camberwell</a>.
APM has 250 scheduled auctions on the long weekend, then 820 so that's slightly busier than the same time last year.
Picture courtesy of Tim J Keegan/Flickr/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">Creative Commons</a>.
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Last weekend auction hurrah before winter hibernation?

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In Bankstown, an $80 million project called Little Saigon is expected to revitalise Chapel Road and is scheduled to be completed by the end of 2014.
Built in response to a number of residential developments that require amenities, as well as to provide a new international food, entertainment and medical precinct<a href="https://www.littlesaigonplaza.com.au" target="_blank"> Little Saigon</a> will include the largest Yum Cha restaurant in Sydney.
<img src="/images/2014/05/30/bankstown-may-30-one.jpg" alt="">
The development comes from Fam International, with design by Nordon Jago architects and is located at 462 Chapel Road, Bankstown.
The Yum Cha restaurant will be run by Golden Group.
The development will also include the first rooftop alfresco bars and terraces for the western Sydney suburb of Bankstown, as well as two supermarkets, more than 3,500 square metres of function centre space, boutique fashion outlets and a medical centre.
<img src="/images/2014/05/30/bankstown-may-30-two.jpg" alt="">
Confirmed tenants for the development include Eyecare Network, B Beauty &amp; Beyond Laser Clinic and a 340 square metre pharmacy.
It will be over six levels and official material details that it includes the following leasing space:
Level 5: Rooftop restaurants, 168 - 237 square metres
Level 3: Function centre, 3,537 square metres
Level 2: Commercial office, 38 - 2,861 square metres
Level 1: Food court, 20 - 1,115 square metres
Ground: Specialty stores, 18 - 491 square metres
Lower: Supermarket anchor, 17 - 1,000 square metres
The launch is expected for Easter 2015 and it is currently 45% leased, with around 9,000 square metres of leasing space remaining. Across the six levels, the cost ranges from $350 per square metre to $2,000 per square metre.
David Fam, Fam International’s co-director, said that there is significant diversity in the Greater Western Sydney area.
“A lot of planning and thought has gone into providing residential developments for Bankstown’s rapidly growing population,” he said.
“What Little Saigon will do is respond to the need for more public amenities, and cater to the arrival of all these new residents, providing them with a one-stop-shop for all their daily needs, as well as a true destination for all their dining and entertainment.”
Bankstown’s <a href="/news">median house price has climbed to $605,000 in recent months</a>, with the median unit price at $360,000.
Photos: Supplied.
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jduke-EHk3XBmHkn

Bankstown’s $80 million Little Saigon to feature Sydney’s largest Yum Cha restaurant

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There are 1,264 auctions scheduled this week in Melbourne compared to 867 for the same time last year.
The strong level of auction listings in the first five months of this year compared to 31.6% higher last year is a reflection of two things; firstly it shows the confidence of vendors where they are willing to sell for a reasonable price, and secondly, a preference by real estate agents for auctions as a method of sale in an improving market.
The strong volumes will also mitigate price growth as buyers’ bargaining power is increased.
We saw a small rise in the average time on market for houses sold at private sale from 40 to 41 days. Vendor discounting reduced to – 5.4% from -5.5% the previous week.
Key data:
<ul>
<li>§ Preliminary clearance rate week ending 25 May: 61.7%</li>
<li>§ Melbourne auctions expected week ending 1 June: 1,264</li>
<li>§ Melbourne private sales time on market week ending 25 May: 41 days (houses)</li>
<li>§ Melbourne vendor discounting market week ending 25 May: -5.4% (houses)</li>
</ul>
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rlarocca-zWhvjay44N

Volume down on this time last year: RP Data's Melbourne auction preview

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After a marketing push into Asia, it appears that offshore buyers are interested in Surfers Paradise properties, with Ray White Surfers Paradise noting a total of 202 transactions to Asian buyers in the past 12 months.
Property Observer clarified the nature of the Asian buyers and was told this included 80% offshore and 20% with residency, or around 162 offshore sales.
CEO of Ray White Surfers Paradise, Andrew Bell, said that the sales data points to a focus from these buyers on the central and northern end of the Gold Coast, particularly Southport. He also noted that there was a favouring of development stock, beachside apartments and homes in the areas of Arundel and Labrador.
“The prospect of a Chinatown precinct, and the area’s proximity to Griffith University are huge ticks for Southport in the eyes of Asian investors,” said Bell.
“Another big plus for <a href="/news">Southport</a> is the impending start to light rail service, connecting it with the huge Griffith University and hospital precinct and key locations like <a href="/news">Surfers Paradise</a> and <a href="/news">Broadbeach</a>.”
However, there’s no one motivation behind the purchases – just as there’s no one motivation behind Australian purchases. Holiday homes, accommodation for their children studying at university, for capital growth or for investment return, there are numerous reasons, explained Bell.
“We are the second most visited destination in Australia after Sydney by this demographic and this fact continues to inform and intensify our international marketing efforts,” he said. Their current strategy, which began six years ago, focuses on China, Hong Kong, Singapore, Indonesia and Malaysia, where they have offices.
Many Ray White staff also travel to these countries to build their databases of buyers, including Bell himself.
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Strong offshore transactions noted on Gold Coast: Ray White 

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In short, very much so.
There is a lot of flak running around about dwelling prices at present.  It’s ‘budget impact’ this, ‘unemployment’ that.
Yes, dwelling price growth has slowed in recent months, but price growth is seasonal.
The important thing is to take the long-term view and don’t get spooked by the monthly and especially weekly reporting on price movements.
Publishers of property-related magazines or media property editors in general, will tell you that one of the hardest things they have to do is to find something fresh to write about each issue.
To help fill their publications, they write about the latest price machinations. The data houses don’t help matters when they release daily/weekly dwelling price indices.
Take a look at these two charts.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/05/HP-11.jpg"><img class="alignnone size-full wp-image-7240" src="https://matusikmissive.com.au/wp-content/uploads/2014/05/HP-11.jpg" alt="HP #1"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/05/HP2.jpg"><img class="alignnone size-full wp-image-7241" src="https://matusikmissive.com.au/wp-content/uploads/2014/05/HP2.jpg" alt="HP#2"></a>
The first shows annual price movements; the second, quarterly changes in dwelling price.
In most cases, the middle and end of the year appear to be strongest when it comes to price growth. This makes some sense, given the end of the financial and calendar years and when you take into account when most new listings occur in Australia.  Many investors like to buy before the 30 June, whilst owner-residents often like to be in their new digs by Christmas.
Things do, however, get stuffed up a bit when we have a late Easter, as was this case this year; and for certain once-off events – like an overly reported hard budget or a pending federal election (2013).
So the statistics suggest to me that price growth is strongest in the June and December quarters (usually) and weaker during the March and September quarters.  The figures also show that sales volumes also follow suite, though not as dramatically so.
In contrast, new property listings seem to be higher during the March and September quarters each year.
Again, this makes sense as decisions about moving are often made during the Christmas break – so listings increase soon thereafter and as most real estate agents will tell you, spring is a great time to list a property for sale – and yes, many look to list at time of the year – as spring is often a good time (especially in our southern markets) to display property for sale.  It gives buyers enough time to settle and move in before Christmas.  And so the cycle continues.
It is this increase in listings and subsequent sales that often leads to high price growth results, especially when demand exceeds supply.
Don’t get me wrong, the property cycle is set to slow down over the next 18 months or so, depending on when interest rates next rise.  Revisit what we said earlier this year <a href="/expert-insights/investing/whats-going-to-be-the-x-factor-in-this-property-cycle">here</a>.
But for mine, much of the current commentary about house prices is just seasonal fluctuations – or as <a href="/news/rba-housing-bubble-alarm-bells-should-be-ringing-despite-may-price-correction-christopher-joye">Christopher Joye described last week</a>, “an air pocket” rather than a “descent”.
Regardless, it is always best to take a long-term view when it comes to property – sale volumes; supply lines; prices and rents all “sawtooth” within the wider property cycle.
Think of a circular saw.
An annual review of price growth is adequate. You will drive yourself around the bend looking at more frequent fluctuations.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

How seasonal are dwelling prices?

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Over the past two weeks, Property Observer has featured the twin cities of <a href="/expert-insights/buying/suburb-spotlight-albury-market-is-steady-and-strong">Albury</a> and <a href="/expert-insights/buying/suburb-spotlight-will-wodongas-big-spend-pay-off">Wodonga</a> separately. It’s now time to make the two cities share the spotlight, as we compare their property markets.
The local governments of Albury and Wodonga would have you believe that the two cities – one in New South Wales, the other in Victoria, are worlds apart. But with only the Murray River between them, how different can the two markets be?
The major differences between the two cities are a result of their respective governments. With Albury in New South Wales, buyers and sellers in that city have to contend with the state’s stamp duties and land tax rates. The same goes for Wodonga on the other side of the border. But despite Albury’s New South Welsh affiliations, the city is closer to Melbourne than it is Sydney.
ALBURY-WODONGA: THE KEY FIGURES
<ul>
<li>Total population: 82,083 </li>
<li>Total dwellings: 35,831 </li>
<li>Median weekly household income: $1,039 </li>
<li>Median monthly mortgage repayment: $1,452</li>
</ul>
Source: ABS 2011
Council plans may also have an impact, according to founder of Destiny Financial Solutions, television host and Property Observer columnist, Margaret Lomas.
“Wodonga has a sustained and fairly lengthy land release timetable, and to my knowledge, Wodonga seems to have more land available for land release than Albury,” she says.
However, Lomas doesn’t think land release timetables will necessarily make a  difference to investors.
“I don’t think that will ultimately affect land values,” says Lomas. “In reality, you’re not disadvantaged by living in one over the other.”
Albury’s close proximity to Wodonga (or the other way around) means that if one town benefits, so does another.
“I know the councils want to uncouple them, but you can’t really,” she says. “If you live in one or the other, you don’t miss out. The residences get to enjoy the benefits of both towns.
“I think they’re pretty much exposed to almost exactly the same growth drivers.”
As for that growth, Lomas says that it’s likely to be slow and steady for both towns, thanks to improvements from their local governments.
“I think we’ll see sustained growth in both of them. Both local governments are providing far better services to their residents, and are focussed in creating a better lifestyle for their residents,” says Lomas. She cites Wodonga’s town centre developments, the first of their kind in the town, as a move by local government to improve services. Other big spending items in Wodonga include a new saleyard at North Barnawartha and the now completed Logic industrial site.
But despite big spending agendas, Lomas doesn’t believe that we’ll necessarily see rapid growth from the two cities. She echoes the sentiment from Albury real estate agent Peter Drummond of Drummond Real Estate, who told Property Observer late last year that he believed the city’s market was “steady and strong.”
“They both have room for growth,” she says. “But a boom? I don’t think so. And I don’t think we ever see that in any country areas. But over time we could see some excellent returns in a sustained fashion.”
Photo courtesy of Wikimedia. 
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Suburb spotlight: Albury-Wodonga, how do the markets compare across the Murray?

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With the first five months of 2014 almost complete, it is worth noting that a large number of auction records have been broken in the Melbourne.
<ul>
<li>Highest volume of auctions ever</li>
</ul>
Taking into account the expected auctions this week there have been around 16,236 auctions already held this year which is 30% more than the previous high in 2010.
<ul>
<li>Most 1,000 plus weeks ever</li>
</ul>
Once the planned auctions scheduled for this week are held, there will have been 10 weeks in the year when the volume has exceeded 1,000. This is more than three times the record of three weeks in 2010.
<ul>
<li>Most consecutive weeks over 1,000</li>
</ul>
Never before has Melbourne seen two or even three consecutive weeks with over 1,000 auctions before June.
<ul>
<li>Single week record for auctions prior to June</li>
</ul>
Melbourne has broken the 1,294 auction recorded three times this year including the peak of 1,530 in the week ending on 13 April.
<ul>
<li>Most homes sold by auction prior to June</li>
</ul>
Even if there are no homes sold at auction this week, the number sold by auction will have been reached a record high. The previous record of 9,758 from 2010 will probably be exceeded by around 1,000.
These records are impressive as they show a healthy market but they don’t mean that it has been just a sellers market. Around one third of homes offered at auction have been passed in as the vendors expectations have not been matched by the market on the day.
Photo courtesy of Beau Giles/Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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Melbourne auction market setting records

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Affordability
While on the face of it the level of housing affordability is what causes our housing markets to ebb and flow, it's as likely to be the unemployment rate and the availability or otherwise of credit in Australia which drives property market movements.
The unemployment rate currently sits at a historically low level at under 6%, but has been rising moderately through 2013.
<img src="https://1.bp.blogspot.com/-5KyrRjfn_4U/U3_NKChJnmI/AAAAAAAANYE/O2N0OR0t0Tk/s1600/1ue.jpg">
The issue of affordability is an ongoing one, and being an emotive issue, sometimes the dynamics of how housing markets actually work in practice are overlooked.
The great paradox of today's rising asset prices is that the prevailing low interest rate environment has improved affordability considerably for existing home owners, but made life correspondingly worse for first time buyers as entry prices to the market rise.
Older clients often come to me expressing surprise at the level of their surplus income, the driver of which has clearly been the structural shift to low inflation and lower interest rates over the past 25 years.
<img src="https://4.bp.blogspot.com/-a74WkKkfsuw/U3_LQuBMZFI/AAAAAAAANX4/gPOx71PU4u0/s1600/OCR.jpg">
Multiples of income
The way in which housing markets from different countries are compared to each other is most often by taking the median price of a house and dividing it by an average measure of household incomes to produce a multiple.
Looking at how long it would take to pay off an average house with an average income is a handy shortcut measure of housing affordability and a very easy means of comparison, but this isn't how housing markets work in reality since it flatly ignores the role of interest rates and the differing financial situations and stages of life that buyers of property are in.
This widely favoured methodology fails to consider mortgage repayments - a housing market where prices are a low multiple of incomes yet has mortgage rates approaching 20% may still not necessarily be an affordable market.In other words, the multiple of incomes method works on the presumption that everyone is a first home buyer with a 80-100% loan.
In the real world, our housing markets work very differently.
There are essentially four different types of buyer, and issues of affordability affect each of them differently.
<ol>
<li>
No finance The percentages fluctuate each year and by state, but between a quarter and a third of properties tend to be bought with no financing. How so? Well, there are some lucky so-and-sos whose parents buy their homes for them, but most often this happens due to the sale of an existing home. Empty-nesters and down-sizers form part of this phenomenon. Other older buyers who are mortgage free opt to move to a similarly-sized home and thus require no debt financing. By the end of 2013, the total of all Australian household debt reached a record $1.84 trillion as the population expands. Yet even the sum total of all forms of household debt is comfortably dwarfed by the value of housing assets as estimated by the Australian Bureau of Statistics (click chart): <img src="https://2.bp.blogspot.com/-on_IH1jsph4/U3_HkgaAYNI/AAAAAAAANXs/D-CJ95PWWuQ/s1600/1HD.jpg"><a href="https://2.bp.blogspot.com/-on_IH1jsph4/U3_HkgaAYNI/AAAAAAAANXs/D-CJ95PWWuQ/s1600/1HD.jpg"> </a>Cash buyers are affected little by rising interest rates and often they remain unaffected by the base value of housing, since the asset which they are selling may rise in tandem with the asset they opt to buy. 
</li>
<li>
Investors As our capital city housing markets mature and the population expands largely by immigration, it is expected that the number of properties owned by investors will also increase. In cities such as Sydney around half of loans presently written are investment loans, but Australia-wide one of the gauges over time of how much property is bought by investors is the rate of home ownership, which also seems likely to slide in the decades ahead. Since some investors choose to own multiple properties, investors tend to comprise around a quarter of buyers. Affordability is not really an issue for most investors in the low interest rate environment, since rental income pays the bulk (if not all) of the mortgage and there are tax deductions available for on-paper losses. Investors instead elect to buy at times when rental yields are acceptable as compared to other available investments and in regions where they expect to see capital growth. Most property investors are looking for locations where the population is expected to grow over time and therefore they are very heavily focused on capital cities and larger regional cities. 
</li>
<li>
Existing mortgagors Again, the percentages fluctuate each year and by state, but around a third of the market of property buyers are existing mortgagors who have equity in their home. So the issue for these buyers of affordability is largely governed by interest rates and the price gap between the property they own and the one which they want to own. Note therefore, that housing affordability for these buyers is correspondingly unrelated to the base value of their existing property, and is instead much driven by their own aspirations. 
</li>
<li>
First home buyers The remaining 10% or so of property buyers are first homebuyers, which is the one sector of the market for whom repayments versus household income is a genuinely worthwhile measure. For this sector of the market the challenges to be overcome include the deposit gap and whether mortgage repayments can be well covered in the event of future interest rate hikes. The first homebuyer demographic which has access to a deposit and mortgage finance is driven by another equation: the cost of renting versus the expected mortgage repayments if a home is purchased.
</li>
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Granularity
The above dynamics help to explain why US forecasters who predicted an Australian property crash have not to date seen their expected outcome.
A multiple of income measure is one measure of housing affordability, but in itself doesn't guarantee a price correction where a strongly rising demand is exceeding supply
This is particularly so where most of the population remains employed.
The above dynamics show that perhaps around 90% of buyers are not impacted by affordability in the manner which commentators frequently imply.
This is where the point on granularity comes in.
House prices in London have been able to run up to outrageous levels and by another 20% or so in the past year alone since there is a woefully low level of ongoing dwelling construction but demand is rising.
Yet in the north-east of England, more than 50% of first homebuyers who bought homes in 2007 remain in negative equity even seven years on.
The difference in outcomes is due to the respective supply/demand imbalances.
While it's certainly useful to compare price to income multiples to a point, it would be unwise to expect all markets to behave in the same manner in this regard.
In the case of parts of New South Wales, there exists a genuine challenge for the rising demand of the coming decades to met by quality supply.
Here is how things stand in Sydney's inner suburbs at the moment, which is to say, verging on crisis levels.
<a href="https://3.bp.blogspot.com/-DtNKs4qIo7M/U3_Qo-ArpKI/AAAAAAAANYQ/3IHTCOw7Ivk/s1600/1REINSW.jpg" style="line-height: 1.3em;"><img src="https://3.bp.blogspot.com/-DtNKs4qIo7M/U3_Qo-ArpKI/AAAAAAAANYQ/3IHTCOw7Ivk/s1600/1REINSW.jpg"></a>
Clearly certain regional markets do not face anything like the same issues, especially as population growth in New South Wales is tracking below the national average in almost every regional town as I considered <a href="https://petewargent.blogspot.com.au/2014/04/the-sea-change-is-well-and-truly-buried" target="_blank">here</a>.
Since we don't face the same demographic challenges in Australia as some other European countries where dependency rates have increased alarmingly, far more important will be how our economy progresses and the extent to which credit markets remain liquid and mortgage financing remains so widely available.
Further, while most of the value in housing market is equity rather than debt, and while a third of property is owned debt free (and a growing percentage by investors) those who are hurt financially by softer periods in the housing markets are likely to be those who are forced sellers such as the longer-term unemployed, those who have to relocate for employment, divorcees and deceased estates.
Other potential vendors have the luxury to 'wait out' softer periods in the market and as such are less likely to experience an adverse outcome.
Warning - the popular media is late to the party and <a href="https://news.domain.com.au/domain/neighbourhoods/erskineville-becomes-a-hot-property-20140519-zrhqa" target="_blank">tipping Erskineville</a> as a hot suburb, which means that you've long missed the time to buy.
As we said here previously, the time to buy in Erskineville was 2007/8 when it was still seen to be a less attractive proposition - and as we anticipated, apartment prices in the suburb have risen by 56% in the last five years.
It's time to look elsewhere.
Sources: I've leaned heavily here on the ideas of John Lindemann and his work in the Mastering the Australian Housing Market (Wrightbooks, Queensland, 2011).
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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