<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=372547]</p>

<p>Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.</p>

<p>"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.</p>

<p>"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.</p>

<p>"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.</p>

<p>"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360975]</p>

<p>While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.</p>

<p>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.</p>

<p>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.</p>

<p>The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.</p>

<p>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.</p>

<p>The city's entrepreneurial culture is also translating into business growth.</p>

<p>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.</p>

<p>Development activity remains another key indicator of confidence.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=112024 project_image_fid=343235]</p>

<p>Importantly, the report notes the next phase of investment will need to extend beyond residential development.</p>

<p>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.</p>

<p>Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365786]</p>

<p>Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.</p>

<p>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.</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=150414 project_image_fid=372743]</p>

<p>Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.</p>

<p>"What we are seeing is a shift in how people define value in property," Bakir says.</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=150414 project_image_fid=372744]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150414 project_image_fid=372742]</p>

<p>A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.</p>

<p>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.</p>

<p>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.</p>

<p>Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.</p>

<p>[smartcode_project_cta:default project_id=150414]</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.</p>

<p>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.</p>

<p>"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.</p>

<p>"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."</p>

<p>Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.</p>

<p>"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.</p>

<p>"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."</p>

<p>Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.</p>

<p>"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.</p>

<p>"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>"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."</p>

<p>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.</p>

<p>"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.</p>

<p>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.</p>

<p>Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.</p>

<p>"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.</p>

<p>"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."</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372212]</p>

<p>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.</p>

<p>"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.</p>

<p>"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372227]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372225]</p>

<p>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.</p>

<p>The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372222]</p>

<p>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.</p>

<p>Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.</p>

<p>"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.</p>

<p>The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.</p>

<p>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.</p>

<p>Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.</p>

<p>"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.</p>

<p>"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."</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=146717]</p>


Lowe Living launches Jardin House in Camberwell

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6395]</p>

<p>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.</p>

<p>Rothelowman says the site itself shaped much of the architectural response.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6399]</p>

<p>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.</p>

<p>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.</p>

<p>Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=353235]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6390]</p>

<p>“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.”</p>

<p>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.</p>

<p>ALAND has commenced construction, and is expecting a completion date in 2028.</p>

<p>[smartcode_project_cta:default project_id=134323]</p>


The Walden pairs house-scale living with North Sydney connectivity

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

<p>Are mortgage holders set to get a reprieve from the RBA in 2026?</p>

<p>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.</p>

<p>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.</p>

<p>“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.</p>

<p>"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.</p>

<p>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.</p>

<p>“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.”</p>

<p>Dr Auld said inflation risks and labour market outcomes would be important to watch.</p>

<p>“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.”</p>

<p>She said tighter financial conditions are expected to weigh on housing and activity.</p>

<p>“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.”</p>


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

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<p>Art deco apartment conversion, Chiswick Green Apartments, has seen construction begin on the properties in Sydney's Inner West.</p>
<p>The waterside apartments, a block of 21, still has five remaining for sale.<br><br>The former 1930s BHP Building, at 54 Blackwall Point Road, Chiswick, is being developed by Mosman-based Lawrence Chong Architects, who are adding this to their list of recent boutique developments, including Eastwood Green. It's looking to retain the facade, but replace the entire inside with modern furnishings.<br><br>“The majority of purchasers have been first home buyers who have found the proximity to the Sydney CBD, amazing value for money and spacious layouts appealing as a perfect first home for young singles and couples," said sales manager and project marketing, Matrix Property Group, Glen McLachlan, who is marketing the project.<br><br>This comes despite softer first time buyer numbers being recorded in the official Australian Bureau of Statistics data.<br><br>“Investors have also been keen to get into the development, taking advantage of the strong rental market in the inner west,” said McLachlan.<br><br>The apartments<br><br>In total, there will be seven one-bedroom, nine two-bedroom and five three-bedroom apartments, including park and water "glimpses".<br><br>Of the five remaining, prices span from $575,000 to $1.38 million, for one-bedroom and three-bedroom floorplans. The sizes range from 59 square metres to 117 square metres, with either a balcony, courtyard or both. On initial launch, the cheapest one-bedroom apartment available was being advertised for $509,000.<br><br>Construction is expected to see completion early next year. Construction on the project was initially slated for 2013 with an early-2014 completion.</p>
<p><em><em><em>For the latest development listings, brought to you by </em>Property Observer <em>and partners, see our <span><a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a></span>.</em></em></em></p>
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jduke-EHk3XBmHkn

Construction begins at Chiswick Green Apartments in Sydney's inner west

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<p>The number of first home buyers in the market is understated by official statistics, according to a panel of mortgage industry representatives.</p>
<p>Mortgage managers from lending institutions and broker networks who participated in the panel for the <em>Deloitte Australian Mortgage Report for 2014</em> said their own statistics showed that there were more first time buyers in the market than Australian Bureau of Statistics data indicated.</p>
<p>According to ABS figures, first home buyers make up a record-low proportion of all buyers in the market at just over 12%.</p>
<p>However Deloitte banking partner James Hickey, who facilitated the panel discussion for the mortgage report, said panellists argued that while there were fewer first time buyers in the market than usual, some were being omitted from official data as they did not qualify for first home owner incentives.</p>
<p>Those who did not qualify for the grant included first home buyers whose parents were helping with the purchase, foreign buyers who were newly migrating to Australia, and those who were buying properties valued at above the threshold for receiving assistance.</p>
<p>First home owner concessions available now apply only to some newly built properties worth up to $650,000. Under previous schemes, grants were available for first time buyers of new or established dwellings who bought properties worth up to $835,000 between 1 January, 2011 and the end of the scheme in October 2012, or up to $750,000 for properties that settled in 2010.</p>
<p>The Deloitte report found that while there had been lift in total mortgage settlements to $28 billion each month, the highest rate on record, most of the activity was due to existing owner-occupiers upgrading and investors returning to the market, rather than first home buyers entering. </p>
<p>The report also revealed that more than one quarter of first home buyers were aged over 35 years, with more than 5% aged 45 and over. About half of first home buyers were aged between 25 and 34. </p>
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zfielding-GvX3Uq9KTa

True first home buyer numbers are understated: Deloitte

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<p>The latest consumer sentiment data arrived yesterday from Westpac and the Melbourne Institute. The reading of consumer confidence fell for the fourth consecutive month and moved below the 100 mark where optimists and pessimists are equally balanced. With a reading of 99.5, the index is virtually at a neutral setting but more than 10 index points below the recent peak of 110.6 recorded in September last year.</p>
<p><a href="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment.jpg" target="_blank"><img class="aligncenter size-large wp-image-2985" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment-580x226.jpg" alt="Consumer sentiment" width="580" height="226"></a></p>
<p>The index moves around a lot from month to month, so the trend is generally more important than the monthly reading, however we have seen the index move lower over five of the past six months which indicates a softening consumer mind set.</p>
<p>Consumer confidence and housing market conditions are highly correlated. No surprises there… if a consumer is lacking confidence in their household finances they aren’t going to be as prepared to make a high commitment decision such as purchasing a property. If the consumer confidence index continues to trend around the 100 mark or lower we can probably expect the exuberant housing market conditions to taper off, despite the low interest rate environment.</p>
<p>The two graphs below demonstrate the correlation; when consumers are confident market demand rises, pushing values higher and vice versa.</p>
<p><a href="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment-v-dwelling-sales.jpg" target="_blank"><img class="aligncenter size-large wp-image-2983" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment-v-dwelling-sales-580x227.jpg" alt="Consumer sentiment v dwelling sales" width="580" height="227"></a></p>
<p><a href="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment-v-dwelling-values.jpg" target="_blank"><img class="aligncenter size-large wp-image-2984" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Consumer-sentiment-v-dwelling-values-580x230.jpg" alt="Consumer sentiment v dwelling values" width="580" height="230"></a></p>
<p>Even though confidence levels have eased, consumers are still viewing the housing market as a ‘wise’ place for their savings. One of the questions asked in the Consumer Sentiment survey is ‘where is the wisest place for savings’. Just over a quarter of respondents think that real estate is the wisest place for savings, the second most popular option after ‘financial institution’ (33.9%).</p>
<p>There are a few factors that are likely denting confidence at the moment. The early declines in the index were potentially a natural comedown after the post-election improvement, however more recently the lower level of sentiment is probably more attributable to the weaker jobs market. The unemployment rate is rising, hitting its highest level since 2003 in January at 6.0%. The pain in the automotive sector is likely causing further discomfort, as are other high profile job shedding situations such as Qantas.</p>
<p>As demonstrated by the Westpac-Melbourne Institute Index of Unemployment expectations, consumers haven’t been this worried about job security since the depths of the GFC.</p>
<p><a href="https://blog.rpdata.com/wp-content/uploads/2014/03/Unemployment-expectations.jpg" target="_blank"><img class="aligncenter size-large wp-image-2986" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Unemployment-expectations-580x229.jpg" alt="Unemployment expectations" width="580" height="229"></a></p>
<p>Consumer confidence can be fickle, and we may see the consumer mind set bounce back to a more optimistic position if the jobless rate stabilises and economic data flows improve, but if the current levels of low confidence persist it may be the case the housing transaction numbers start to trend lower as consumers batten down the hatches.</p>
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tlawless-5VLUrbAk9s

Consumer confidence falls and that will hit the property market

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<p>Auction volumes continue to exceed this time last year with 1,035 expected in Melbourne this week. This weekend last year saw 929 auctions held.</p>
<p>The healthy results recorded last year and again this year is encouraging more vendors into the market as they are confident of a good sale outcome. This trend of increasing listings is confirmed by the most recent data that shows that over the past month listings being prepared for sale are now higher by 9%, the number of active new listings is 2% higher and auction volumes are also at record levels.</p>
<p>Vendors at private sale are now seeing a tightening of market conditions with selling days down to 42, and vendor discounting at -5.6%.</p>
<p>The highest volume of auctions this week is in Reservoir and St Kilda, each of which has 19 listed.</p>
<p><strong>Key data</strong></p>
<ul>
<li>
<p>Clearance rate week ending 9 March: 67.3%</p>
</li>
<li>
<p>Melbourne auctions expected week ending 16 March: 1,035</p>
</li>
<li>
<p>Melbourne private sales time on market week ending 9 March: 42 days (houses)</p>
</li>
<li>
<p>Melbourne vendor discounting market week ending 9 March: -5.6% (houses)</p>
</li>
<li>
<p>Listings being prepared for market are 9% higher in month ending 9 March</p>
</li>
</ul>
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rlarocca-zWhvjay44N

Healthy results pushing more vendors into market: RP Data's Melbourne weekend auction preview

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<p><span style="line-height: 1.3em;">Let's face it, most property market commentary is at best reactive and at worst starts with the headline and works back through a smattering of evidence to support the preconceived conclusion.</span></p>
<div>Hence the large number of 2012 and 2013 articles which argued that in spite of falling interest rates Sydney, prices couldn't increase in this cycle since prices were already too high and that, it seemed, was that.</div>
<div> </div>
<div>However, if you ignore one half of the equation - supply - in order to focus only on demand, the conclusions are always likely to be to some extent ill-informed.</div>
<div><span> </span></div>
<div>
<span>Simply put, with appropriate housing supply in the city so weak for so long - almost an entire decade of unpropitious su</span>pply failure - low interest rates were destined to force upwards pressure onto the market and as prices ticked up the herd mentality followed.<br><br>Also in the simplest terms, developers needed prices to go up to justify building more stock, and while prices remained flat the dwelling shortage became more and more acute.<br><br>This is precisely why I confidently predicted the surge in prices.</div>
<div> </div>
<div>Basic housing economics dictates that in a functioning market a material jump in dwelling prices combined with a lower cost of financing should result in a worthy supply response. And at last the data is starting to flow through which shows that we should now see a big uplift in Sydney dwelling construction.<br><br>Let's take a more in-depth look at the levels of supply due to come online and where it will be located.</div>
<div> </div>
<div><strong>Demand: population growth</strong></div>
<div> </div>
<div>In order to ascertain the adequacy or otherwise of supply, we first have to acknowledge the likely level of demand.<br><br>Australia's population is very heavily urbanised, with close to 40% of the population living in Sydney and Melbourne.</div>
<p> </p>
<div>
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph6-small.gif" alt="Graph 6: Urban Population" width="470" height="491"><br><span><br></span><br><div>
<span>The latest ABS population data showed that at the state level New South Wales has a population of 7.4 million people </span><a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0" target="_blank">increasing by 102,200</a><span> persons per annum. </span><br><br>Meanwhile, the the population of Sydney, depending on where you draw the boundaries, is around 4.6 million, and is growing at about 1.6% or 63,700 persons per annum as neatly charted in this <a href="https://matusikmissive.com.au/2014/01/14/stats-1000-club/" target="_blank">Matusik Missive</a>.</div>
</div>
<p> </p>
<div class="separator"><a href="https://3.bp.blogspot.com/-xa8fEv_mloE/UxuaJzGkQPI/AAAAAAAALzE/-neLPNbk91E/s1600/MM.png"><img src="https://3.bp.blogspot.com/-xa8fEv_mloE/UxuaJzGkQPI/AAAAAAAALzE/-neLPNbk91E/s1600/MM.png" width="460" height="343"></a></div>
<div class="separator"> </div>
<div class="separator"><em>Source: Matusik Missive</em></div>
<p><strong>Demand: Sydney persons per household</strong><br><span><br></span><span>After a century of declines, the number of people per household is now expected to stop falling. </span><br><span><br></span><span>Previous projections in 2008 saw the </span><a href="https://www.planning.nsw.gov.au/population/pdfs/mrel_081020_nsw_state_regional_population_projections.pdf" target="_blank">Sydney household size forecast to drop from 2.61 people</a><span> per dwelling to 2.51 by 2031 (already well above the 2005 projections of 2.36 people per house by 2031).</span><br><span><br></span><span>Based on recent indicators it seems to be a fair assumption that the number of persons per dwelling will stop or already has stopped falling, in part due to affordability constraints in the harbour city.</span></p>
<div>If we take a figure of 2.6 persons per dwelling this implies that NSW needs around 40,000 dwellings per annum to house the expansion of the population and Sydney needs around 25,000 dwellings per annum.<br><br>When further allowances are made for obsolete stock and the need to address the currently existing ugly supply/demand imbalance <a href="https://petewargent.blogspot.com.au/2014/03/sydney-property-prices-2014-appreciate" target="_blank">which I discussed in detail here</a>, then it can be said that the city would want to see significantly higher completions in order to take the pressure of dwelling prices.<br><br>Previous estimations have ranged from around a required <a href="https://www.planning.nsw.gov.au/population/pdfs/mrel_081020_nsw_state_regional_population_projections.pdf" target="_blank">27,500 dwellings per annum</a> for Sydney through to 2031 up to <a href="https://petewargent.blogspot.com.au/2012/12/demographic-shifts" target="_blank">30,000 per annum</a>. Given the chronic shortage of stock on the market, clearly the latter number would be far more effective in addressing the imbalance.<br><br><strong>The rise of apartment stock</strong><br><br>It is to be expected, with a rapidly growing city population in a constrained area such as Sydney, that more than ever before, the new dwellings will be of the apartment and medium-density type.<br><br>
</div>
<div>
<div><img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph9-small.gif" alt="Graph 9: Apartment and Medium-density Housing" width="470" height="415"></div>
<div> </div>
</div>
<div>
<strong>Sizeable uplift in building approvals in Sydney and NSW</strong><br><br>The most recent data from the ABS showed <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank">17,500 dwellings approved</a> in the month for the whole of Australia, split between private sector houses (about 95,00) and other dwellings (about 7,800).<br><br>This is welcome news for the economy, and represents a huge annual uplift for private sectors houses (+26.4% year on year) and for other dwellings +46.3% year on year). <span style="line-height: 1.3em;">In NSW, the three month moving average monthly building approvals figure is now hitting at around 4,500 dwellings, which is a very solid figure.</span>
</div>
<div><span style="line-height: 1.3em;"> </span></div>
<div>
<span style="line-height: 1.3em;">And, more specifically, what for Greater Sydney? Well, we can certainly now see </span><a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank" style="line-height: 1.3em;">a huge uplift</a><span style="line-height: 1.3em;"> in building approvals particularly over the second half of 2013. The monthly data is necessarily volatile, but over the year to January 2014, there were 36,100 dwellings approved which is the highest level of approvals seen this century (since 1999). </span>
</div>
<div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-lX4t7ydFCjU/UxwGHSn2KcI/AAAAAAAAL0U/Dy_wKgStmT4/s1600/Greater+Sydney.jpg"><img src="https://4.bp.blogspot.com/-lX4t7ydFCjU/UxwGHSn2KcI/AAAAAAAAL0U/Dy_wKgStmT4/s1600/Greater+Sydney.jpg" width="460" height="239"></a></div>
<div class="separator"><em>Source: ABS</em></div>
</div>
<div> </div>
<div>These numbers tend to make far more sense when put into a rolling annual number of approvals chart. Cameron Kusher chart of RP Data deserves a gold medal (or at least a cold beer) for slogging through the hard yakka below. Incidentally, just look at the rolling approvals figures for Melbourne since 2008!</div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-jbVKiSolivg/UxufqYEtehI/AAAAAAAALzc/q6ijVvwk7pY/s1600/CK1.jpg"><img src="https://3.bp.blogspot.com/-jbVKiSolivg/UxufqYEtehI/AAAAAAAALzc/q6ijVvwk7pY/s1600/CK1.jpg" width="460" height="172"></a></div>
<div class="separator"> </div>
<div class="separator"><em>Source: RP Data</em></div>
<div class="separator"> </div>
<div>
<div class="separator"><span>The chart shows Sydney's supply failure over the last decade.</span></div>
<div class="separator"><span> </span></div>
<div class="separator"><span>Yet new apartment approvals in Sydney will now go on to eclipse their previous peak of 2003 when annual approvals hit 23,000.</span></div>
<div class="separator"> </div>
<div class="separator"><span>BIS Shrapnel has forecast that Sydney will comfortably break new record for apartment approvals in 2014 and project that the figure will peak at around 25,000 in 2016.</span></div>
<div class="separator"> </div>
<div class="separator"><strong>Completion times</strong></div>
<div class="separator"><span><strong><span style="text-decoration: underline;"> </span></strong></span></div>
<div class="separator"><span>The Reserve Bank has highlighted its concerns about a possible lag between approvals and construction <a href="https://www.rba.gov.au/speeches/2013/sp-so-230413" target="_blank">in a speech last year</a>:</span></div>
<div class="separator"> </div>
<div>"...if average household sizes are no longer falling, the relationship between population growth and growth in the number of dwellings will change. </div>
<div> </div>
<div>"And if I am right in expecting the share of high-density housing to increase, the dynamics of construction will also change. </div>
<div> </div>
<div>"It takes longer to build a block of apartments on a brownfield site than the same number of dwellings as detached houses at the fringe. Dwelling investment has already become less cyclical in the past 10 years than it was in the previous 20 years.</div>
<div> </div>
<div>"It might well be that construction lags – and concerns about supply – will become even more acute."</div>
<div class="separator"> </div>
<div class="separator">The ABS has presented its own data showing that completions are slower than they have been in times past.</div>
</div>
<div>
<br><div><img src="https://www.abs.gov.au/ausstats/abs@.nsf/91f72cb52e908514ca25709f0000a6a8/bef19e4062997fefca25759a001a1e49/Body/0.FE4!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 1: Average completion time of new houses and new townhouses, Australia" width="460" height="263"></div>
</div>
<div> </div>
<div>
<img src="https://www.abs.gov.au/ausstats/abs@.nsf/91f72cb52e908514ca25709f0000a6a8/bef19e4062997fefca25759a001a1e49/Body/0.3CB4!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 3: Completion time of new townhouses, five year average, States, Territories and Australia" width="460" height="263"><br><br><em>Source: ABS</em>
</div>
<p><strong>Dwelling commencements</strong></p>
<div>Of course dwelling approvals are not the same as dwelling commencements, but the most recent data has shown that dwelling commencements in NSW are finally starting to punch at around 10,000 per quarter and look set to head higher, and thus should begin to redress the supply imbalance in due course.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-Kmk8-uh08Y0/UxwLqvOdEXI/AAAAAAAAL0k/8XvSKMecoeg/s1600/commence.jpg"><img src="https://4.bp.blogspot.com/-Kmk8-uh08Y0/UxwLqvOdEXI/AAAAAAAAL0k/8XvSKMecoeg/s1600/commence.jpg" width="400" height="228"></a></div>
<p><strong>Conclusions</strong></p>
<div>The data shows that dwelling commencements will begin ramp up quite sharply from now. Indeed, you can now witness this happening around the city with your own eyes. </div>
<div> </div>
<div>The ABS average completion times suggest that over the next two to three years the apartment supply will really start to flow before reaching a peak around 2018-2019. </div>
<div> </div>
<div>Naturally a greater supply of apartments introduces an elevated risk of a price correction in certain areas, which will be most heavily focussed upon a number of key sectors of the market.</div>
<div> </div>
<div>In particular, buyers should take great care when buying off the plan since such developments tend to demand a material newness premium.</div>
<div> </div>
<div>When it comes to the risk of oversupply, it is crucial to consider substitutability and there are a number of higher risk areas which stand out as likely candidates. </div>
<div> </div>
<div>I don't have space to list all the areas where I personally would and would not be comfortable buying but the central business district (and indeed other business districts in the city with few height restrictions on developments) tends to suffer from a perennial oversupply risk, as higher residential prices see more and more former office blocks being demolished to be replaced by apartment towers.<br><br>Stand by for a flood of media articles on this topic.</div>
<div> </div>
<div><span>There will also be many thousands of new apartments located in certain inner suburbs where former industrial sites have now been rezoned. </span></div>
<div><span> </span></div>
<div><span>These suburbs variously include Waterloo, Mascot, Zetland, Rosebery and Botany, among others. 25,000 new apartments are expected to be built in the inner south by 2018.</span></div>
<div><span> </span></div>
<div><span>I note that a number of the new developments appear to consist of very small apartments, some of which look to be phenomenally expensive. <em>Caveat emptor.</em></span></div>
<div><span> </span></div>
<div>
<span>Conversely, there are a number of well-located leafy lifestyle suburbs where new supply has been almost completely capped over the past decade and these will continue to represent a far superior selection. Substitutability is significantly lower.</span><br><span><br></span>
</div>
<div><span>Buyers of apartments would likely do well to focus on those with a relatively high value value content in boutique blocks, rather than those in larger developments.</span></div>
<div><span> </span></div>
<div><span style="line-height: 1.3em;">The Melbourne market in recent years appears to have experienced a period of overbuilding and oversupply in certain sectors (e.g. Docklands), resulting in significantly more stock on the market than Sydney and significantly higher than average vacancy rates.</span></div>
<div> </div>
<div><span style="line-height: 1.3em;">Yet median prices in Melbourne are also seemingly defying all logic by continuing to grow at a phenomenal pace (+7% quarter on quarter) implying that buying the right property in the right location continues to be of vital importance.</span></div>
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pwargent-M4siyDbqQY

Sydney - the housing supply response

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<p><span style="line-height: 1.3em;">Sydney's Barangaroo has seen its first publicly advertised property sale, C602 Globe Street, for $2.2 million. Set to be built in 2015, the two-bedroom, two-bathroom one-car space apartment spans 113 square metres and was marketed as the highest positioned property of its floor plan type.</span></p>
<p>Located on level six of the nine storey 77-apartment <a href="/expert-insights/buying/every-apartments-has-harbour-views-as-lend-lease-unveils-two-barangaroo-apartment-blocks">Alexander Building</a>, the first release sold out within four hours.</p>
<p>It boasts views across Sydney Harbour and, of course, Barangaroo, and has a balcony designed for year-round entertaining, with 15 of its total square metreage being external.</p>
<p>Security access, video and audio intercom, optical fibre backboning cable and dual zoned air conditioning will be installed in the home.</p>
<p>It will be created with reconstituted stone bench tops and splashback, Miele appliances, including stainless steel cooktop, 60 centremetre pyrolytic stainless steel oven, 60 centremetre microwave oven, externally ducted range hood and an integrated dishwasher.</p>
<p>Sold by Tolga Ozer from Wilson Property Agents it also comes with Jonathon Richards interiors from SJB Architects.</p>
<p>Advertising material suggested it was under offer at $2.25 million.</p>
<p>Globe Street is located between George Street and Harrington Street. </p>
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Barangaroo's first publicly advertised property sells for $2.2 million as market heats up

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<p>In our previous article on expressions of interest (EOIs), we described this form of property sale as being <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/residential/the-high-stakes-poker-game-of-expressions-of-interest/2014021967905&amp;sa=U&amp;ei=hNsgU5DfGJDqoASAloLQCQ&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNGhJuGFLvqV_VYBXtRh5uCw1aeSkg" target="_blank">a bit like a game of poker with high stakes and few or no rules</a>.  EOIs can also unfold very differently depending on the agency involved and on the dynamics of the situation making them a challenge for the unprepared buyer.</p>

<p>Here are a couple of examples that show just how differently EOIs can pan out:</p>

<p><strong>22 Rowland Street, Kew</strong></p>

<p><strong><img alt="" src="/images/stories/2014/03/13/kew-march-13-one.jpg"></strong></p>

<p>22 Rowland Street, <a href="/news">Kew</a> (pictured above) was a quite extraordinary property and we were curious as to what its eventual value would be.</p>

<p>So what happened in the end?</p>

<p>[smartcode_project:default project_id=31282]</p>

<p>Well, by March 1, the agents Kay and Burton had received expressions from four interested parties. Three of these were invited to a Boardroom discussion. This was a little unusual in that the seller’s reserve had not already been met.</p>

<p>The three parties competed at this Boardroom discussion at the mid $4 millions level, until the highest bidder was established. That party was then negotiated with exclusively until an agreement was reached. The final purchase price is confidential but it was in the ballpark of $5 million.</p>

<p><strong>38 Cochrane Street, Brighton</strong></p>

<p><strong><img alt="" src="/images/stories/2014/03/13/brighton-march-13-one.jpg"></strong></p>

<p>A quite different scenario unfolded with another EOI campaign that we were involved in, for 38 Cochrane Street (pictured above), which came to a conclusion the following day.</p>

<p>This property shared some similarities with Rowland Street – it too was <a href="https://www.james.net.au/rating/38-Cochrane-Street-BRIGHTON" target="_blank">an excellent and unusual home</a> and the vendors had decided to sell it through an EOI campaign with Kay and Burton as the agency.</p>

<p>It too had four bidders. But beyond that, the way things unfolded at Cochrane Street was very, very different.</p>

<p>[smartcode_project:default project_id=25425]</p>

<p>For a start Cochrane Street had a quote, of $3.25 million plus, whereas 22 Rowland did not.</p>

<p>More importantly this EOI campaign did not go the distance. The closing date was March 11, but an offer of $3.5m was put forward two weekends before the closing date.</p>

<p>Another difference is that in this case the buyer offer was acceptable to the vendor. The home was therefore declared by the agents as being “on the market”.</p>

<p>[smartcode_project:default project_id=29974]</p>

<p>It also triggered a faster resolution process than 22 Rowland St Kew. While the Boardroom auction had initially been set down for Monday, after some behind-the-scenes discussions mid way through Sunday afternoon, that was changed to Sunday evening.</p>

<p>At 8.00 pm on Sunday evening, in the home, four interested parties – including us – turned up and all bid until 38 Cochrane was sold “under the hammer” for a confidential amount in the ball park of $4 million.</p>

<p><strong>Implications for buyers</strong></p>

<p>As you can see then, just in these two examples we have two very different methods within the EOI via the boardroom auction resolution concept. These have important ramifications for buyers.</p>

<ul>
<li>One was “on the market” before the bidding started, and one was not. When a home is not “on the market” there can be traps for new players.</li>
</ul>
<ul>
<li>One was concluded well before the EOI closing date and one was concluded two days before. The difference here was the element of surprise from the buyer versus the planned strategies from the seller.</li>
</ul>
<ul>
<li>One was sold publicly in front of all bidders and one was not. Both would have put incredible pressures on people not used to this form of dealing. Try sitting around a table or in the same room with three others who are politely trying to beat you to a pulp and you will start to get the feeling of what a boardroom auction is designed to do.</li>
</ul>
<p>[smartcode_project:default project_id=94079]</p>

<p>And there are other ways of conducting EOIs</p>

<ul>
<li>EOIs can work via inviting best offers, which means you all put in your offers in writing and the highest wins. It doesn’t always quite pan out quite like that, however, which is where it gets tricky.</li>
</ul>
<ul>
<li>You can also have EOI via a private negotiation</li>
</ul>
<ul>
<li>And of course plenty of EOIs don’t actually sell.</li>
</ul>
<p>We have been involved since last year with another EOI Kay and Burton campaign on a totally different property at around the same $5 million price point – and no resolution has taken place yet. As late as last week we were in discussions across the table with both the seller and the “attempting buyers”. This is not a criticism of the process, this is a fact of life. This last meeting took place on a Saturday evening with directors of James Buyer Advocates and Kay and Burton present – so at least both agents and advocates are still trying.</p>

<p>But wait there is more</p>

<p>These are examples of EOIs conducted by Kay and Burton. That’s just one agency. Other agencies we have been involved, such as Fletcher’s, Jellis Craig, RT Edgar, and Hocking Stuart, operate EOIs very differently again. They all have different methods for EOI and the large majority of them are not in writing.</p>

<p>So in summary, expressions of interest are subject to:</p>

<ol>
<li>Big variances within the agency</li>
	<li>Big variations across different agencies</li>
	<li>Changes in the “rules” as you go through the process</li>
</ol>
<p>If you think this process is designed to be transparent and fair to the buyer then you completely misunderstand the concepts behind the process. Not that this is a criticism; after all, the selling agents are not working for you the buyer, they are working for the seller – and whatever works for them is doing the job.</p>

<p>So why would a seller or a buyer get involved in an EOI anyway?</p>

<p><strong>Seller</strong></p>

<p>Often in a sale – auction or otherwise – there is one standout buyer. Conducting an auction campaign with a skilled lone buyer (or buyers’ agent) doesn’t always get the best result for the seller. An auction works best when there are multiple buyers at a certain level. But because an EOI is not transparent – you can’t see any other buyers in action – and there is no real time limit, that can work well for the seller as long as a skilled selling agent is involved.</p>

<p><strong>Buyer</strong></p>

<p>If the home you want is for sale by EOI you have no choice but to be involved. But hopefully you can read between the lines to see some of the strategies of the buyers who eventually won 22 Rowland and 38 Cochrane. Those strategies were very clear and distinct and planned and well-executed, resulting in the desired result.</p>
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maljames-vHwm28JUAa

Expressions of interest: How the process really works and the implications for buyers and sellers

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<p>Kippilaw, the colonial Breadalbane homestead, has been sold for $4.2 million via online auction.</p>
<p>The online Meares &amp; Associates offering, where bids where to be placed between March 10 and March 12, sold to bidder 10 when offers closed this afternoon.</p>
<p>{yoogallery src=[images/stories/2012/09/sept27outkipp]}</p>
<p align="left">The opening online bid was at $3.75 million, with a $4 million vendor bid placed for the trophy holding with a restored homestead - a two-storey, six-bedroom stone house comprising four separate wings with a central courtyard.</p>
<p align="left">Its history stretches back 180 years to when James Chisholm and his wife, Elizabeth, moved to the NSW southern tablelands district, taking up a grant of 1,280 acres (518 hectares) given to her as a marriage portion from Governor Ralph Darling , a custom begun by Governor Lachlan Macquarie for settlers on their marriage.</p>
<p>Elizabeth named their 1837 Georgian residence after her birthplace in Scotland, Kippilaw, near Melrose Abbey.</p>
<p>Its meaning comes from "Kippi" which is Pictish for "little", and "law",which is Saxon for "hill". </p>
<p>The restored house comes with views of the Wollondilly River and gardens in the Italian manner.</p>
<p>Agent Chris Meares also oversaw the last sale when in 1997 Janet and Graham Webb sold the farm to businessman Robert Rich and his late wife Helen in 1997 for about $2.6 million.</p>
<p>Kippilaw is a viable working farm with 400 acres (about 160 hectares) of quality breeding and fattening country, which have been well fertilised and pasture improved over the years. It grazes and fattens 160 cattle on the pastured acres, supplemented by winter grazing crops.</p>
<p>{yoogallery src=[images/stories/2012/09/sept27inkippilaw]}</p>
<p align="left">The Kippilaw gardens comes with oak trees line as old as the house that line the driveway.</p>
<p align="left">The gardens comes with tennis court and nearby in-ground swimming pool with small pool house.</p>
<p align="left">There's the sunken garden built by one of the Chisholm boys during WWI and the historic rose garden, supplemented by carpets of daffodils, jonquils, iris, peonies and roses with a spectacular wisteria and rose archway.</p>
<p>The Meares agency sale improves its online success to date with auctionsworkonline, with now the sale of two of its past seven listings. Last December it secured the $2.25 million sale of 3370 Sturt Highway, Wagga Wagga, a flood irrigation/grazing holding called, Kabinga.</p>
<p><a href="mailto:news@propertyobserver.com.au" target="_blank"><em>news@propertyobserver.com.au</em></a></p>
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jchancellor-FAypfDUnLy

Colonial Kippilaw near Goulburn sells for $4.2 million in pioneering online auction

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<p>I’ve said it time and again that the residential investment property is a long-term proposition. The property market takes around seven to 10 years to move through a full cycle, from low capital growth/high rental yield to high growth/low yield and back again. </p>
<p>Despite this, many property investors choose locations and property styles with little potential to survive and thrive throughout market fluctuations. Some investors choose locations that lack the long-term underlying demand to drive capital growth, while others choose property styles that don’t reflect trends in the way people want to live. </p>
<p>In other words, the property investment decisions that look good today may not prove so attractive in five, 10 or 20 years’ time. It’s essential to understand the nature of long-term economic and demographic trends, then select assets accordingly. </p>
<p>Interest rates rise and fall, but in the long term, dwindling oil reserves and rising petrol prices will be a key economic trend influencing the property market. In the coming years, rising prices at the pump will make outer-suburban living and commuting less feasible and less appealing. This will curtail the urban sprawl and increase demand among home buyers for property in the middle suburbs close to public transport corridors, shops and schools. </p>
<p>At the same time, rising property prices in the inner and middle suburbs will put home ownership beyond the reach of more Australians, or at the very least, delay it significantly. Figures from the Bureau of Statistics tell us that the proportion of households renting from private landlords in Melbourne has increased from 22.8% in 2001 to 27.2% in 2011. Almost 32% of Sydney’s property market is inhabited by tenants. </p>
<p>The increase in tenant demand is not unique to Australian cities. Major global cities such as London and New York have 50% or more of their property tenanted. I am not suggesting we are a London or New York just yet, but we are following a similar path, and there’s every reason to expect that this trend will continue.</p>
<p>Because many tenants want to maintain the trappings of an urban lifestyle, the trend away from home ownership will increase demand for rental properties within walking or short driving distance from trams, trains, shops, cafes and entertainment precincts. For those who can afford to buy, these areas will also be their preferred choice. This two-pronged demand from home buyers and investors will further boost capital growth prospects in the inner and middle suburbs. </p>
<p>Delaying having children is another trend set to influence the residential market well into the future. The median age for parents is 28.9 for women and 33.1 for men, and women currently have an average of 1.9 children, compared with 2.8 in 1981. </p>
<p>This trend has resulted in the average number of people per house almost halving over the last 100 years from 4.5 in people to 2.6. In addition, single-person households have jumped from 22.9% to 24.4% over the last 10 years. </p>
<p>The shrinking size of the family unit means that demand for low-maintenance, compact dwellings will increase, while demand for the conventional sprawling home on a quarter-acre outer-suburban block will soften. </p>
<p>When you look at all these trends in their entirety, it’s clear that pockets of the middle suburbs close to public transport, shops and schools will provide feasible long-term opportunities for residential property investment, particularly for investors who have been priced out of the tightly held inner suburbs.</p>
<p><em>This article first appeared on Property Observer in November 2012.</em></p>
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marmstrong-sd3emVLPPb

Current trends can point to the best places to invest in the future

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<p>Clearance rates in Sydney are continuing to reach record highs, with more than 80% of homes up for grabs consistently selling each weekend.</p>
<p>On Saturday, 82.4% of properties sold at auction in Sydney, according to the latest figures from Australian Property Monitors.</p>
<p>APM senior economist Andrew Wilson said<em> </em>last year’s momentum is continuing to prevail in 2014 and there are no signs the market is slowing.</p>
<p>“Sydney is tracking around those low 80% numbers, even though we’re getting considerably high listing numbers for this time of the year,” he says.</p>
<p>“It’s a strong market in Sydney. There had been a feeling some of the budget markets like Canterbury, Bankstown and the west and south-western suburbs were falling off the pace, but even they had some reasonable clearance rates in the 80% range again.”</p>
<p>In 2013, the prestige market in Sydney lagged behind the rest of the market. However, this trend seems to have been reversed, with premium suburbs now also recording high clearance rates.</p>
<p>“Even though the bottom end had been waning a little bit, the top end has been picking up,” Wilson says.</p>
<p>“This market was quiet a year ago, but prestige property is back in town and there have been higher numbers of prestige properties on the market. There is a sense the prestige market has now taken on the energy the market’s had for the past 12 months.”</p>
<p>Over the past four weeks, Sydney has seen auction listing numbers consistently above 600.</p>
<p>“There are really no dark clouds on the horizon, which appeared to be gathering at the end of last year. Economic factors like retail sales and construction figures are on the up and low interest rates are one of the key drivers of the market,” Wilson says.</p>
<p>But Wilson says despite this some cracks could be starting to show in Sydney’s rental market.</p>
<p>“We’re starting to track a sense that vacancy rates are rising, which could be a concern for some investors, and rents have been flat now for some time. This could signal some concerns about the viability of the rental market,” he says.</p>
<p>In Melbourne, there were lower listing numbers than usual due to the Labour Day long weekend. However, out of the 227 properties listed for sale, 70.1% sold; an increase of almost 10% on this time last year.</p>
<p>“In Melbourne it was a holiday weekend, but it still had a reasonable clearance rate and listings were also up compared to this time last year,” Wilson says.</p>
<p>“The market is tracking a little higher than this time last year, with inner bayside suburbs particularly strong. We’re expecting a big weekend this week.”</p>
<p>Wilson says the strength of the Sydney and Melbourne markets is evidence of the effectiveness of low interest rates.</p>
<p>“The Melbourne market has passed every test which has been thrown at it so far… it shows what low interest rates can do,” Wilson says.</p>
<p>Brisbane, which has been tipped as the <a href="https://www.smartcompany.com.au/finance/investment/35385-brisbane-to-boom-house-price-growth-to-slow-property-trends-for-2014">hot spot for property investors in 2014</a>, recorded a clearance rate of 59.5% and 105 properties were listed for the weekend.</p>
<p>However, Wilson says this isn’t an accurate reflection of the market.</p>
<p>“In general terms there is a sense in the Brisbane market it’s picking up. It’s still below its previous price peak but expect to regain record level prices sometimes this year,” he says.</p>
<p>“Investors and the middle market are very active.”</p>
<p><em>This article first appeared on <a href="https://SmartCompany.com.au" target="_blank">SmartCompany</a>.</em></p>
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