The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

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

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Last weekend was the first big auction week back for 2014, a Super Saturday in fact (around 150 $1 million plus auctions in Bayside and the inner east).
Has the mood changed from the good times for buyer (<a href="https://marketnews.com.au/tag/choice/" class="st_tag internal_tag" rel="tag" title="Posts tagged with choice" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">choice</a>) and seller (competition and price) pre-Christmas times to a more challenging market?
Absolutely not – in fact it has gone up a notch for now and especially at the higher end!
What we saw this weekend can be read no other way than "bang!" A very strong start. If the market continues at this level, prices will rise quickly and substantially.
Of course, we do need to wait and see what happens once the traditional first flush of the new year dissipates a little. But it is certainly the case that this time, leading up to Easter, is a good time to be selling a $3 million plus home.
Why?
Well, because after the long Christmas break, after Australia Day has been and gone, a number of buyers and sellers are fired up ready to do something, anything, just to get a home sold or buy a home now. Last weekend’s Super Saturday proved this commonly-known fact within the industry.
So the old girl (the market) has started like a train, house on fire, out of the blocks fast, whatever cliche you want. But let’s see how she settles before we declare that the sky has fallen in, or you’ve hit the jackpot – depending on which side of the transaction you sit.
Let’s see how she settles now that this first wave of activity has satisfied a number of the early birds.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. 
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
             
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maljames-vHwm28JUAa

Early birds out in force at the year's first Super Saturday

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Time to gaze into the crystal ball after <a href="/news/victorian-government-announces-suite-of-super-tuesday-approvals">yesterday's announcements concerning 'Super Tuesday'</a>; or the approval of five residential towers through inner Melbourne.

Reading over the press release, much could be derived from the short few paragraphs which were provided. Here's my interpretation:

<h2>Backyard Blitz</h2>

Yesterday's release made reference to Plan Melbourne and reformed residential zones which protect established suburbs from high rise development.

I can't help but think that the certain council's implementation of this policy has left a few noses out of place on a state level. Expect some further announcements on this topic in coming weeks.

<h2>Having a bender</h2>

<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/art-ipad2310fishermansBend_729-620x349.jpg" rel="gallery-all" title="Image courtesy of The Age."><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/art-ipad2310fishermansBend_729-620x349.jpg?itok=vbZuZ97W" title="Image courtesy of The Age." width="580"></a>

The first glimpse of justifying relaxed heights limits for Fishermans Bend may have been contained in yesterday's press release. "Melburnians have made it clear that they want their suburbs protected from high-rise apartment development. To achieve this we're delivering density in defined locations like Melbourne's CBD and Docklands - not in our quiet suburban streets."

Prediction: the above coupled with strong population growth will form the nucleus of the argument to relax height limits in Fishermans Bend. 40 level towers in four level zones may not eventuate, nor will they stay at 4 levels either.

<h2>Western World</h2>

<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/254444-cbd.jpg" rel="gallery-all" title="Image courtesy of the Herald Sun."><img alt="" class="image-article-full-width-580px" height="327" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/254444-cbd.jpg?itok=xqrFzwGp" title="Image courtesy of the Herald Sun." width="580"></a>

If one development epitomises the change in decision-makers stance toward high-rise living it just might be 420 Spencer Street. The best part of eight years ago a squat development was proposed for the site, drawing disgust from local residents. Fast forward to yesterday's announcement and a 38 level, 131 metre tower with 438 apartments gains approval.

It sets a precedent for projects such as <a href="/buildings/melbourne-village-377-spencer-street-west-melbourne" target="_blank">371 Spencer Street</a> nearby which are of a similar height. Will West Melbourne/Dudley become the next Southbank? Yes it will.

<h2>Super CBD</h2>

Unless it's proposed around the Parliament precinct, it'll likely to receive planning approval and at a substantial height. The suburbs are safeguarded but tall towers within Melbourne's CBD will become all the more common.

Good, bad or otherwise, the change and the rate at which it occurs for Melbourne's CBD over the next decade will be immense with at least a tripling of the number of 200 metre plus towers in the big smoke. Prediction: welcome to mega Melbourne.
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silvermb

Ramifications of 'Super Tuesday'

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The Real Estate Buyers Agents Association of Australia says in the current strong sales market it is important to keep your emotions in check.

Their top five smart tips for buying in a rising market include:
* Get your finance pre-approved so you know your limits you show potential sellers that you are serious about buying.
* Don’t carelessly speed up the research and buying process to take advantage of a perceived deal.
* Avoid low-ball offers for a property, as this will result in you not being taken seriously.
* Act decisively when you know it’s the right property and have done your research, or others are likely to jump ahead of you.
* Avoid asking for favours or adding complications to the deal. That may work in a falling market, but not a rising one.
And they add just because property prices are rising doesn’t mean you’re going to be left behind.
I'd add make sure you are capable of the long hold as many of these extraordinary sale prices will be hard to match on the inevitiable dip.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
             
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jchancellor-FAypfDUnLy

Five smart tips for buying in boomtime conditions

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The house next door to the apartment block I live in, in Sydney’s inner west, went under the hammer last Saturday. The four bedroom house, on a small 450 square metre block, was very old and required a lot of work. It was passed in at $995,000, though will likely settle for over $1 million via a private offer.
Channel 9 News was there, reporting the coverage of what has been a very strong auction summer season in Sydney. Most market commentators agree that Sydney is currently in the boom – or peak as it is also known – phase of its property cycle. This has resulted in auction clearance rates remaining fiercely strong; amidst some of the most competitive interest rates on offer in many years.
So I thought I’d look at purchasing investment properties at auction, versus private sale. But first, let’s take a step back and identify why some properties go for auction, whilst other properties are advertised at a set price, for private sale.
Top reasons why properties go to auction:
<ul>
<li>
Property type. If the property is unique or a rarity for its area, the true value may not be clear. Owners may hedge their bets that an auction might drive a better sales price. Properties needn’t be hugely different or unique either, to set them apart. 
</li>
<li>
In smaller markets or postcodes where there have not been many comparable recent sales, owners may benefit from may also be a better environment for auction instead of private sales
</li>
<li>
Sometimes auction can be the preference to hasten a sale. Listed-price properties on the other hand, can risk spending too much time on the market if priced incorrectly. Then, in this digital property age we’re living in, the property appears month after month with the same list price, and buyers avoid those online listings like the plague. They do this for three reasons; firstly they assume the property has been purchased already and the listing hasn’t been updated. Secondly, property buyers think there is something seriously wrong with the property, and last of all, the market knows the property is incorrectly priced. Auctions avoid this from happening.
</li>
</ul>
Top reasons why properties are listed for private sale: 
<ul>
<li>
Owners who understand the likely true value of their property in relation to others may prefer to set a fixed sales price. Even if this is negotiated slightly during the sales process, fixed asking prices help property owners who need the security of a more precise sales price early on
</li>
<li>
In areas where an owner is selling a very common property type. For instance, say if over 80% of housing stock in your suburb are two bedroom, one bathroom, no parking apartments and your apartment is this exact same specification, the maximum likely sales price is likely very evident based on so many similar recent sales.
</li>
<li>
The jury is still out on this one, but some property sellers argue that fixed list price properties sell faster than auction properties. This is because if the seller has unrealistic expectations at auction and is not willing to sell for anything less; there may be several ‘passed in’ auction results over numerous months before a sale is identified.
</li>
<li>
Non-auctioned properties tend to attract more genuine seekers. It is said that some 70% plus of attendees at an auction are either nosy neighbours – much like myself today – or property buyers just doing their research and not seriously entertaining the idea of bidding on it.
</li>
</ul>
Bringing this in to an investor context, in my experience I’ve generally avoided properties going to auction. Here’s why:
I don’t typically consider ‘rare’ or ‘unique’ properties for investment
Regardless of the property type I am purchasing – be it house, semi, townhouse, apartment – I rarely would look for properties that are unique or substantially different from the status quo of that suburb.
This is because, as investors, it is not in our interest to do so. We’d rather hedge our bets on a property type that is high demand, so that we know it’ll always be desired by renters. This helps avoid the risk of vacancy (which can crush an investors’ bottom line if months and months of vacancy occur)
 
During due diligence phases, I find non-auction properties that deliver more ticks on my shopping list
This extends back to property investment 101: Do your due diligence on your chosen suburb to make sure the property type you are buying, is the type that renters are wanting the most.
Financially, auction properties just do not stack up for me
As investors we are driven ultimately by the bottom line. Financially, there is added risk to buying investments at auction.
Another investor 101 tip is this: You should never go looking for investment properties before you’ve calculated how much you can spend. You’d be surprised at the number of beginner investors who ignore this cardinal rule!
Not only should you know your budget, but you should have your deposit amount calculated and your pre-approval set already (so you can move quickly when you need to).
Deceptive agents can set investors up for disappointment
The other reason I avoid auction is timeliness and, well, real estate agent lies! Agents frequently low-ball the expected sales price, in the weeks leading to auction in order to get more foot-traffic on the day.
Let’s say you’ve done your research as mentioned about, and you’ve calculated you can buy a property to a maximum buy-rate of $320,000. You speak to an agent about an auction property where they agent feels it’ll end up at the $300,000 mark. You think to yourself: "Great, I can confidently go, maybe even bid a little higher than $300,000 and still be in-budget, and possibly win this property." Alas you get to the auction and the auctioneer calls for an opening bid of $340,000!
Already it is beyond your budget, and it only adds insult to injury when the romance-enthused home buyers (who you are also competing with at auction), bid with their heart about this and the property goes for $370,000.
Worse still, you’ve wasted weeks of research and due diligence, and you are now back to square one. It’ll be weeks before you’re ready to bid on another property at auction
Property investment is not about the romance people develop with their ‘dream home’. As investors we do not live in these houses, nor are we likely to. Auctions tend to attract head strong and heart strong buyers who have fallen in love with a property. This wildcard addition to the sales process usually only ends up benefitting home buyers, whilst hurting investors.
I am aware there may be other views on buying investment properties at auction, but in my experience, steering clear of auction properties in the best step investors can take to minimise risk and expedite property purchases.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
                  
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cmcevoy-Go82SmsJA9

Why I don’t buy investment properties at auction

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The reasons being offered at present as to why consumption and confidence are down make for compelling reading, given there are so many theories being offered. I don’t believe blame should be cast at the Reserve Bank of Australia (RBA) for holding the official cash rate too high for too long. Rather I believe the main reason why so many businesses are not doing well lies with their very own business strategies that thus far have failed and will continue to do so.
Over the last decade I have watched aghast at how so many businesses have continued to ignore the all-powerful online cataclysm, which explains why business confidence is down. Transitioning your business online is just the beginning, the most important move is aligning the business with consumer sentiment.
The Australian Bureau of Statistics (ABS) has recently released its first estimate of the amount Australian shoppers spend on overseas based retail websites. The ABS believes about $6.23 billion of goods worth less than the government’s low value threshold were imported in the 2011/12 financial year. I suspect the amount would have increased a further fifty per cent in the 2012/13 financial year. One would have to think with the upcoming federal budget that the Treasurer will be closely looking at grabbing this revenue.
Heeee’s back! <a href="https://www.propertyobserver.com.au/news/bursting-harry-dents-own-bubble/2014021467757?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews" target="_blank">Harry Dent keeps predicting</a> that Australia’s property prices will be slashed by half – and by the way he has a book you might want to buy. I’ve lost count how many times he has predicted this and to a certain degree he is probably a little bit right as some of the overheated areas will face value calibrations.
I am of the belief that the only logical and feasible way you can predict a value correction is when supply exceeds demand. We are not seeing that anywhere (that I can see) given the market roar is that there is not enough properties on the market.
<a href="https://www.rwm.com.au/files/2014/02/18-02-2014-2-56-49-PM.jpg"><img alt="18-02-2014 2-56-49 PM" src="https://www.rwm.com.au/files/2014/02/18-02-2014-2-56-49-PM.jpg" width="470" height="258"></a>
Source: Digital Finance Analytics Blog
An interesting point I noted from <a href="https://www.digitalfinanceanalytics.com/blog/household-housing-finance-ratios/" target="_blank">the author of this graph</a> was “Some have argued recently that house prices have not really grown that much, if you take inflation into account: The important thing to keep in mind however is that when you consider inflation, dwelling values remain lower than their previous peaks in every city.”
<a href="https://www.rwm.com.au/files/2014/02/11-02-2014-11-15-30-AM1.jpg"><img alt="11-02-2014 11-15-30 AM" src="https://www.rwm.com.au/files/2014/02/11-02-2014-11-15-30-AM1.jpg" width="470" height="279"></a>
Source: Digital Finance Analytics Blog
Another contributing factor is that state and federal governments are behind approximately 300,000 houses in their new housing construction quota which again puts pressures on the housing markets. The simple fact that investors are hording real estate in their self-managed superannuation funds (SMSF) adds another dimension to the supply v demand debate.
Again as the federal budget gets closer we will see strong <a href="https://theconversation.com/explainer-why-negative-gearing-is-bad-policy-21882" target="_blank">arguments presented for the abolition of negative gearing</a>: “In Australia owner occupiers compete with investors for housing property; and there is also competition within these groups. A small increase in the number of superannuation funds and foreign investors purchasing property can have a significant impact on demand; while first home buyers are finding it increasingly difficult to enter the market. Each of these groups is impacted differently by the tax system.”
In 2010/11 the tax statistics revealed that 2.5 million property schedules were lodged by individuals, identifying nearly A$30 billion of rental income received during that year. The deductions claimed against this income amounted to A$37.8 billion, of which A$22 billion was interest on loans.
On that basis if the federal government were to look at abolishing negative gearing (and I don’t believe they will simply because of the gearing) property prices would crash and in turn the banks would too.
Again, Mosman houses are a long way off hitting triple figures given in 2013 it hit and bettered that number on 33 occasions. In 2012, it managed triple figures on just four occasions which were February 21 and 28, and March 7 and 13. So based on that data there is a very strong possibility that in 2014 we won’t see Mosman houses breaking the 100 mark.
It really is not that hard to analyse property trends when you break it down suburb by suburb. The only problem for so many real estate commentators is that such an exercise is all too time consuming.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

Let's keep it simple - it’s supply v demand

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A few weeks ago, I attended an auction in a popular suburb of Melbourne’s inner east.  
The home was an attractive four-bedroom townhouse on roughly 260 square metres of land, and initially quoted at $700,000 ‘plus’ - very typical of the type of accommodation featured in the area.  
As is commonly the case in Melbourne, the quote was ‘stepped up’ in the final week of the campaign to ‘$750,000 ‘plus’ – albeit, the listing agent informed me more than once he had $800,000 “covered”.  A mere blink at recent comparable sales indicated a price well in excess of $850,000, or even $900,000, considering the level of demand and lack of comparable listings being marketed.  
This was confirmed during the auction, when a neighbour I’d casually interacted with leaned over and in little more than a whisper told me: “I know the vendor – she wants $1 million”. Considering the property didn’t reach its reserve until $900,000, I suspect she was correct.  
With competition from nine bidders, the property sold in front of a crowd of 100 or so for $1,011,000, and the agent, delighted with the result, wasted no time swooping in on the ones who missed out, to share information of ‘similar’ listings currently for sale.  
Needless to say, it’s a story that drives many Australians irate, with the focus inevitably aimed at the misleading way in which it was quoted. However, this isn’t what should drive our sense of injustice to kick into gear.  
The undeserving poor  
Debate is currently rife in Australia surrounding the relentless costs of our welfare system, with Social Services Minister <a target="_blank" href="https://www.crikey.com.au/2014/01/24/kevin-andrews-dont-pick-on-the-disabled-and-those-on-the-dole/">Kevin Andrews heralding it ‘unsustainable’</a>, whilst looking for ways the government can cut entitlements to the undeserving poor.  
The review has concentrated primarily on disability payments, and Newstart job seekers allowance, which keeps the ‘income-less’ in relative poverty.  
“Work is the best form of welfare!” was the statement Andrews used. Considering the uptick in unemployment, with industries such as Ford, Alcoa, Qantas, SPC, Sensis, Telstra, Shell and Toyota moving jobs and business offshore, a fall in the participation rate – due in part, to an asset rich, income poor retiring population – and a rise in part time and casual positions over full time positions, concerns are warranted.  
In the 2013-14 federal budget, the government correctly stated that “Australians value a fair society” and underlined its commitment to a tax system that provides a strong and stable funding stream for important public services, such as “health, education and disability care”, while “rewarding innovation and productivity” for economic growth.  On an international scale, our tax-transfer system is perceived as comparatively generous.  
According to the <a target="_blank" href="https://www.oecd.org/">OECD</a>, Australia’s ‘Robin Hood’ economy redistributes more to the poorest 5% of the population than any other member country, whilst the much-criticised policies of middle class welfare are seemingly the lowest.  
We’re deemed to have the most 'unique' and 'target efficient' social security benefits in the OECD, apparently yielding 'significant gains' to both the economy and society. And when compared to the USA, which has the highest income inequality among the ‘rich’ nations by some significant degree, we look comparatively healthy.  
Yet, despite its many reforms, and varying degrees of success, shaped in part by demographic changes (more women entering the labour force, for example) and a small reduction in high end salaries during the GFC, widening disparities between incomes have continued unabated since the mid-1990s. As the labour market struggles, there’s nothing to suggest the trend will stop.  
Mind the gap  
There are all sorts of reasons to narrow the gap between the rich and poor and prevent an ever-widening chasm -one of which is the way that income is invested into the economy and the roll over effect to society.  
Income inequality and economic growth can only work hand in hand when individuals are enabled to strive for greater heights from a foundation of equal opportunity – the basis of which is education.  
As economist and inequality expert Andrew Leigh commented late last <a target="_blank" href="https://www.abc.net.au/worldtoday/content/2013/s3793059.htm">year</a>:  
“Education is the greatest force that we've developed, not only for boosting productivity, but also for making Australia more equal,” ensuring “the circumstances in which you're born don't determine the circumstances in which you die.”  
Yet our schooling system is becoming increasingly segregated. The correlation between poor performance and social disadvantage is stronger here than <a target="_blank" href="https://crawford.anu.edu.au/public_policy_community/content/doc/Australia_Inequality-and-Prosperity_final-15-March-13.pdf">any other</a> comparable Western nation.  If our tax and transfer system were meant to offset this, you’d have to assess its been an abject failure.  
Why?  
Australia has enjoyed a period of economic prosperity, which over the last 23 years has been nothing short of remarkable.  According to Credit Suisse’s Annual Global Wealth Report, we’re the “richest people in the world,” with a median wealth each of US$219,500.  
Over the past year alone, Australia added an estimated 21,000 millionaires to the population. Yet, contrary to what the textbook version of economic theory would have you believe, household savings reaped from an economy surfing the wave of a commodity boom have not flowed into business investment, or nurtured productivity and education standards in the young.  
As noted in the <a target="_blank" href="https://www.credit-suisse.com/ch/en/news-and-expertise/research/credit-suisse-research-institute/publications">Credit Suisse assessment</a>, our riches are "heavily skewed towards real assets” a manifestation of “high urban real estate prices”, acquired and generated through the destructive cyclical impacts of a property market. As I emphasised <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">last week</a>, the gains from income growth and investment flow directly back to the land.  
Both homeowner and speculator  
Home ownership is seen as one of the great pillars of our collective culture.  It’s assessed to improve health and school performance in children, activate social engagement as well as reduce local crime.  
However, the way we go about promoting ownership is to nurture a system that teaches rising land values – outside of any productive activity such as renovation or effective utilisation of the resource – is due reward for having saved hard and got onto the ‘ladder’ in the first place.  
Our tax system is skewed toward ownership, with policies, that according to last year’s <a target="_blank" href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/">Grattan report</a>, provides potential benefits to home owners worth $36 billion a year, or $6,100 on average per household through items such as capital gains and pensioner eligibility test exemptions. Investors (or those choosing to rent and invest) reap $7 billion a year, or $4,500 on average each, by way of negative gearing rules and the capital gains discount introduced in 1999. Whilst renters, one in four households, see no gain - unless their income is low enough to require welfare assistance.  
In effect, we’re an economy that relies on ever-rising values of irreplaceable fixed assets to fund the individual wealth of its nation – and this is only achievable if policies are in place to ensure values remain high and climbing, and debt levels ‘affordable’.  
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Capital growth  
Speculation and investment are two sides of the same coin. When we assess a good business model for example, we speculate that the productive activity that flows from that investment, will build on a growing base of demand, and through competition and diversity, go onto produce a profit.  
Yet the capital growth in land values does not occur by way of some abject force of nature. Everything that makes our cities liveable comes from the collective investment of our taxpayer dollars to provide the social amenities needed to form the base from which we can all progress.  
This would include: community services such as, transport, parks, roads, trains, trams, medical facilities, and most importantly, schools.  
Yet, it is also these facilities that produce the needed demand for real estate that pushes values upwards.  Not through the efforts of the individual home owner, but the productive efforts of the taxpayer – renter, home owner and investor alike.  
Housing on its own is worth nothing without the infrastructure that surrounds it and rising land values are ‘reward’ for nothing other than unwontedly buying into a system that – under the current structure - promotes inequality and forces <a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev035">social polarisation</a>.  
Unlike our business model above, we can’t ‘make’ more land in a particular location to fulfil the demand produced from the facilities our tax system both funds and maintains.  Therefore effective utilisation of the resource is vital.  
However, the speculative process alone, along with the added impact of a tax system that impedes turnover by way of stamp duty at one end, and capital gains at the other, simply feeds a process of hording.  
This is because most advantage best from investment into housing through the process of “buy and hold” – leveraging the equity to produce needed funds, rather than selling. This is a system that drives underutilisation and ‘land banking’.  
But land is fixed in location; therefore we must always hop over it to find the next predicted hotspot to raise our families, until this too becomes out of reach through the process described above - like a cruel game of musical chairs.  
Back to the beginning  
Let’s go back to the case study I cited at the start of this article.  The reason the four bedroom townhouse attracted such strong demand in the first place, is because it’s located in a top government school zone.  
Only high-income earners can afford to live in this zone and no doubt they feel – through their income tax contributions alone – they pay their fair share toward facilitating the opportunity for their children to obtain that higher education. As the OECD said, our tax and transfer system is high progressive – the “rich” pay more.  Or do they?  
Allowing for stamp duty, the new owner who purchased the townhouse would have paid $1,066,605 yet despite two years of effectively stagnant growth in 2011/2012, the median price in the suburb has escalated close to 60% from $850,000 in December 2009, to $1,355,000, therefore they probably assess it a worthy investment.  
As for those who arrived early in the process, to paraphrase what one home owner relayed to me some time back, she has earned more from the capital growth of her home over the past 10 years or so, than she has in earnings.  
Outside of a market crash or the demise of the education facilities provided, there is nothing to suggest prices in this school zone will drop. From the tight zoning regulations alone and rising population of immigrants and local buyers looking to advance their children’s education, the very ingredients to attract a constant source of buyer demand are set in place – and rents will rise accordingly.  
The taxpayer continues to subsidise the school, whilst the gains are capitalised in rising land values, which flow directly to the individual home owner not the school or community, keeping values high and placing further pressure on the public purse to fund additional services. Meanwhile, underfunded schools in the over populated fringe suburbs, start to produce an English style education class divide.  
Under such a system, we are not subsidising the poor, we are paying the wealthy.  Yet, it’s clear, if we’re to navigate the structural changes ahead and keep unemployment low, whilst at the same time, reduce the projected burden on the ‘welfare state’, our economy is reliant on maintaining a highly skilled work force. For this to occur, an elevated level of tertiary education and business investment is vital.  
A better model of welfare  
Notwithstanding, the correct way to fund local schools would be via broad based and effectively administered <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">land value taxation</a>. In its purest form, as advocated by the classical economist, Henry George, it would result in a single tax on the unimproved value of land to replace all other taxes which hamper productivity, the most significant being income tax.  
George’s ideas won favour amongst many, including the great economist and author of Capitalism and Freedom, Milton Friedman as well as other influential figures including Winston Churchill, Adam Smith, and more recently chief economics commentator at the Financial Times, Martin Wolf, and author and economist Fred Harrison. Notwithstanding, a single tax would be unlikely to hold water in current political circles.  
The Henry Tax Review commissioned by the government under Kevin Rudd in 2008 concluded that “economic growth would be higher if governments raised more revenue from land and less revenue from other tax bases”, proposing that stamp duty (which is an inconsistent and unequitable source of revenue) be replaced by a broad based land tax, levied on a per-square-metre and per land holding basis, rather than retaining present land tax arrangements.  
Whilst arguments over school funding will likely continue, centred in the political battle over funding of the suggested <a target="_blank" href="https://www.igiveagonski.com.au/">Gonski</a> reforms. Unless we narrow the gap in education, we’ll never narrow the broadening gap in income and consequently, the growing burden on our welfare state.  
Therefore – when times comes that the chatter around affordability finally evolves into real action, a broad based LVT should form an important part of both the debate, and the solution.  
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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The tale of one auction – what it really says about Australia's welfare state

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The original Great Southern in Melbourne’s south-east was built 125 years ago, and a new development on the site is seeking to pay homage to its predecessor.
The clifftop Great Southern Hotel was opened by property developers in 1889 to provide a seaside resort for thousands of Melbournians who travelled by horse-drawn tram to the hotel. In the 1920s, it was renamed the Beaumaris Hotel.
The elaborate building burned down in the Beaumaris bushfires of 1944, and rebuilt in 1950 as The Beaumaris.
{yoogallery src=[images/stories/2014/02/24/bea2]}
Now, the site has been converted into 58 apartments. About 60% of the original building has been restored, including its eye catching verandahs. The apartments are selling through Bert Geraerts &amp; Tony Stuart of Kay and Burton, who have put together <a target="_blank" href="https://player.vimeo.com/external/81972562.hd.mp4?s=0ef40ca79e2bb04f747cce2df087f05b">a video on the site’s history</a>.
The development, by Cieran Kayes and designed by Ten32, comes after a <a href="https://www.propertyobserver.com.au/news/historic-beaumaris-hotel-conversion-gets-green-light/2013111266312." target="_blank">three year planning battle</a> with the local council.
Prices range from $450,000 for a one bedroom, one bathroom apartment to $2.3 million for a penthouse in the new development.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
            
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New Beaumaris Hotel conversion pays homage to site's storied history

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I know a lot of commentators are complaining about the amount of airtime that Harry Dent gets for his forecasts. But since his publicist kindly gave me some signed copies of his books (and since I am also a voracious reader), let's take a look at what he has to say on Australia's public and private debt.
"Australia is my favourite overall developed country in the world for vacation and for living."
Good-oh. True! We have low unemployment and our cities are amongst the most liveable in the world. Australians are also the wealthiest people in the entire world. 
How's about that? Of all the 200 or so countries you could be living in - which the news reminds us every night includes some countries in desperate strife - you're in the most prosperous of the whole lot. An arresting fact. Australia is also one of the most law-abiding and safer places in which to live.
"Australia has the lowest total debt for English-speaking countries outside Canada at 276%. Australia's government debt is unbelievably low at 21%. Hence, Australia's government will have more room to cushion its banking crisis ahead."
True again. Yes, this is the case. An a resources-exporting nation, Australia really ought not to have high government debt, and nor do we. Should there be an economic downturn, there is scope for government spending on infrastructure to be ramped up, interest rates to be cut, stimulus packages to be hurled at consumers, and so on.
It's becoming increasingly clear from ASX releases that the scaling back in mining capex is now right upon us with a large number of major construction projects now completed. A little later than expected, but we're into the downturn.
As Dent notes, the Australian government has some fuel in the tank if it's needed. The Reserve Bank forecasts Australia's GDP growth to increase to around 4% over the next few years, so at this juncture, stimulatory government spending does not appear to be what is required.
I also note that we don't have a "banking crisis" at this point in time, with the major banks recording another year of earth-scorching results. Dent is forecasting here that an eventual fall in dwelling prices will result in a crisis for the banks. We'll have to wait and see on that, but banks have been steadily building equity in recent times, albeit with material exposure via their residential home loan books.
Events of the last half decade in other developed countries have shown that banks have endured some large write-downs on non-performing loans. Fortunately, the average Australian is miles <a href="https://petewargent.blogspot.com.au/2014/01/will-our-banks-equity-be-wiped-out-by" target="_blank">ahead on their mortgage repayments</a> (at record levels) at this point in time, and non-performing loans have remained very low to date.
Simply leaving mortgage repayments at 2008 levels (the official cash rate in March 2008 was 7.25%) has allowed many of us to open up a huge buffer on required loan repayments. The cash rate of just 2.50% has delivered a colossal affordability dividend to Australian home owners. The mortgage repayment statistics (and, for that matter, retail sales galloping along at a 6.5% annualised growth pace) clearly show that Aussies are enjoying a time of very easily affordable living. Not in line with what you read in the press? That's mainly because modern lifestyle expectations have shifted dramatically over the past generation.
Read what the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbytitle/2E33320E030F1DEACA25696E007FDE66?OpenDocument" target="_blank">actual statistics are saying</a>. For example, more Aussies than ever before have funds in hand for overseas travel, recording a blistering 8.4 million overseas trips in 2012-13 - comfortably the highest level of overseas trips ever recorded in Australia.
<img src="https://dev.propertyupdate.com.au/wp-content/uploads/2013/12/graph-1.16.gif" width="470" height="505">
One of the key factors for this chart going forward will be the rate of unemployment.
"Australia's consumer debt at 105% is higher than that of the US and most other developed countries as it has the highest average real estate valuations among Western countries. All of its major countries are on the coast with very limited land for development as most of the land is very arid."
True. This is an accurate geographical lesson. I learned this at junior school actually - "Australia is mainly just a large desert" - the text-books told us exactly that. Memorably, we also learned that Australia also had "very large bananas". It's funny the things, you remember. In fact, it was only when Neighbours and Home and Away came to the UK in the 1980s that Poms like me realised that Australia might be quite a nice place to live.
In truth, national comparisons of consumer debt are next to useless. It's very cheap to live in Memphis, but not at all so in Manhattan (or, indeed Mayfair). Similarly, <a href="/news">Dubbo</a> or <a href="/news">Dandenong</a> may be quite cheap on a national basis, but that's not necessarily much use if you earn lower than average wages, or for that matter, if you want to live in Darwin or <a href="/news">Dover Heights</a> or <a href="/news">Double Bay</a>. I don't think we learn much from that.
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You can only really assess how owners are coping with affordability on a localised basis. Broadly speaking, Aussies are enjoying ultra-cheap mortgage repayments, but new buyers are finding deposits harder to save. At this stage of the cycle, lending standards appear to be easing. 
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11.gif" width="394" height="400" style="display: block; margin-left: auto; margin-right: auto;">
 
The land for development is far greater in cities like Adelaide and in regional centres, of course. Sydney is hemmed in on all sides, which is creating a huge upwards pressure on land values.
"Australia went through the first crash without a subprime or banking crisis."
True again. Harry might have chosen to add 'contrary to my predictions of a 50-55% crash by 2014', but we'll let that one slide. Australia will eventually get a correction, but it won't be of that magnitude in the major capital cities. In fact, Dent has downgraded his crash prediction to less than half of his earlier call from three years ago.
"Housing prices didn't fall much then went a bit higher. Now they're starting to crack on the high end will finally fall in the years ahead."
False. In inflation-adjusted terms, all Australian cities except for Sydney are below their 2010 peaks. And here's a sale from this week - $1.325 million over reserve. Prices are not cracking at the top end at this point in time. The years ahead, of course, are uncertain, as always.
"No normal worker I've talked to in Sydney could afford to own an apartment in the downtown area. It's mostly international buyers and foreigners buying upscale households, as in London, Vancouver and New York".
Hmm, maybe - it depends who he spoke to and what you define as a "normal worker". I own "downtown" property and consider it very easily affordable to me - but then, I'm from a dual income household. 
I also have a large number of friends, none of whom are foreigners, who own "downtown" properties on Pitt Street, Market Street and so on. Being of that ilk, however, most of my city-based friends work in mining or are finance professionals, which is probably not how you would choose to define a normal worker.
Of course, as is the case in most maturing city markets, one wouldn't expect that your average manual labourer could afford to live "downtown", but then this kind of misses the point since most Aussies don't want to live in the city anyway. Most of us seem to want to live in lifestyle suburbs close to the cities, industrial zones tend to be located further out, and so on and so forth.
Where I live, a couple of minutes walk to Darling Harbour and the city, most people seem to be dual income apartment dwellers in the 25-35 age bracket. They generally work in the CBD and most seem to be living the dream at the moment, since interest rates are as low as most have ever seen. The trendy bars, restaurants, coffee houses and takeaway parlours around here are absolutely packed to the rafters seven days a week.
I'm sure life won't be quite so easy when they try to trade up to a house in the suburbs, though, particularly if borrowing rates revert higher. Personally, my best assessment is that Sydney will get a period of strong price growth in 2014, followed by an eventual cooling when interest rates eventually revert higher towards a neutral setting, whenever that may be.
"Australia should weather the coming crisis better than any country in the developed world, but it won't avoid a crash next time around like it did this time. That said, if I have a choice of anywhere to live in the next ten years in this kind of winter season and financial crisis - especially in the next two years from 2014 to 2015 Australia would be my first choice."
A bit of a contradiction? Australia "won't avoid a crash" but it will be the best place to be of "anywhere" to live in the entire world over the next decade. I tend to agree on the latter point. Australia has favourable demographics, and a bright future. That's why a lot of us choose to live here.
As for the crash, well, Dent was completely wrong last time, but time will tell, I guess! He's often said that Australia will lead the boom to follow the crash, so I suppose that I should tell you that any investment decision - be it in equities or real estate - ought to be a long-term gig.
A couple of people have emailed me and asked why I don't appear to take his predictions too seriously. Well, the truthful answer is that I did learn a few things from reading the books, but as for the predictions, no, of course not - his track record has been wildly inaccurate.
In any case, a lot of it is just textbook snake oil salesman content. Quote:
"What could sunspot cycles have to do with stocks? The solar radiation we receive from the sun is higher when there are more sunpots...and that radiation is enough to interfere with satellite and communications infrastructures. The magnetic pole of the sun reverses with this cycle...it might affect human energy and emotions..."
And so it goes on. Cue the obligatory chart which proves that sunspots cause recessions. You might just as well plot a chart of Scottish witchcraft convictions from 1560-1630 or use a pack of tarot cards.
Absolutely textbook stuff.
There is also a large amount of classic technical analysis snake oil thrown in for good measure.
In truly exemplary fashion, there are also the charts of Gouda bulb/tulip mania and the South Seas (sic) bubble, with a few numbers randomly interspersed at various points denoting the <a href="https://stockcharts.com/school/doku.php?id=chart_school:market_analysis:elliott_wave_theory" target="_blank">Elliott Wave</a>, i.e. this proves that all bubbles behave in precisely the same manner in five predictable waves.
The Elliott Wave is then routinely applied to any and every chart.
Having worked for some years in the copper mining industry and been responsible for preparing projections and variance analyses reliant on copper spot price movements, I was particularly interested to read Dent's outlook for the copper price.
I know some people believe you can read charts with no consideration of fundamentals, but if any commodity price should be based on fundamentals as much as technical analysis, it should be Dr. Copper. Nevertheless:
"...a clear fifth-wave peak in copper around $460/lb in April 2011 followed by an A-wave crash to $300 in late 2011. The B-wave peaked near $400 and has fallen just below $300 in mid-2013. The C-wave crash will continue again if copper breaks below $295 and then will probably take copper to around $125 by early 2015, a 73% decline from the peak."
There then follows a chart, apparently sourced from Bloomberg, showing copper's run-up from below $100/lb to $450/lb.
All sounds very impressive and technical until you apply the common sense test. Basic intuition should tell you that copper has never been worth more than a few dollars per pound. If it was actually selling at $325/lb we'd have retired as super-wealthy magnates years ago. Either that or we'd probably be out scavenging for copper materials on building sites somewhere.
Unfortunately, the 'analysis' has been applied to a bogus chart, with some major decimal point issues going on (Bloomberg, unlike other sites quotes copper in USd/lb).
Of course, it's a load of old bunkum designed to sell books, and the same approach is applied to real estate, stocks, wages, bond prices, spending cycles and so on. A good read for a laugh, but no, I wouldn't take it all too seriously.
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
                    
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Should we really believe Harry Dent on Australia's public and private debt?

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If you are just starting out in property development and haven’t yet found a builder, a good way to get a pretty good idea of what your construction costs may be is to engage a quantity surveyor (QS) to work with you in the early design stages of your project.
A QS can estimate the building cost of your development by using a trade based cost plan.
Provide your QS with architecture plans, including the engineer designs for stormwater and slabs. Your QS can then calculate all areas of your dwellings including floor, wall and roof areas.
There are literally hundreds of calculations made from the plans in order to complete the report.  The report contains a number of breakdowns so you can see for instance what the plumbing costs of the build will be.  The report contains calculations for the length of sewer drainage pipes and all the plumbing materials that will be required to connect the dwelling to the street’s service, installation of fittings and the internal pipework and stormwater drainage.
Once measurements are completed they are all combined to give a total cost of materials and labour for the project.
The QS will also break down the project into the different trades that will be needed to complete your project and apply costs to those trades.
I spoke to Bob Macansh from <a href="https://quanto.com.au/" target="_blank">Quanto Pty Limited</a> about the degree of accuracy between a builder’s quote and a cost plan.
“We receive requests for a cost plan from mum and dads wanting to build their own house right up to architects designing high density unit projects," Macansh said.
"Interesting enough, we have found that no matter the size of the project, our cost reports generally come in within 10% of the actual builder’s contract.
"We recommend our clients use the cost plan as a working tool with their builder, rather than a tool to try and prove them wrong or catch them out.  At the end of the day, you need your builder on your side as a property developer and the report gives both parties the opportunity to review cost areas to see if there are opportunities to trim build costs."
The cost report can be an important tool if you are having more than one builder quoting on your project. You can supply the report (less the costs) and ask the builders to quote on each section. This way you will be able to accurately compare quotes.
In my experience, builders prepare and present their quotes or tenders in different ways so having a template for them to provide costs on can give you the edge as a developer and determine the areas the builders are more cost effective in.
Glenn Cartwright of Quanto Pty Ltd says: "Too many times you hear of developers running out of funds before the development is completed. By having a trade based cost plan prepared by a quantity surveyor, developers can see not only how much the overall project will cost, but exactly where the costs are going. They can then alter the design as they see fit to meet their budget. It is easier to plan a realistic budget prior to commencement rather than seeking extra funds towards the completion of a construction project."
Jo Chivers is director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
     
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How to accurately calculate the cost of your development project

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The remainder of the 200-lot Gabriel’s Run release at the Hermitage community development in Sydney’s south west have now been sold. The sale of the final 37 lots at Gabriel’s Run marks a total of $150 million in sales for the development.
The Hermitage is to be the first Australian masterplanned community by Japanese developer and builder Sekisui House. Located in Gledswood Hills, the development is being marketed towards young families and first home buyers, with its open green spaces offered as a major drawcard.
According to Craig Barnes, estate sales and customer relations manager at The Hermitage, word of mouth has been a big driver in demand for the estate.
“More than 60% of sales are from referrals, which is certainly impressive,” Barnes said.
“The demand for land at the Hermitage has been so strong with previous releases that people had been camping outside the sales office for days. To avoid this, we asked people to first register interest and then offered them priority numbers and a personalised approach, making the weekend a lot smoother but still completely – if not more – fair.”
Buyers from the development’s Chilsolm’s Corner and Hardy’s Rise releases have now moved in. Lots in the development have averaged $275,000.
Lots in the Gabriel’s Rise release ranged from 400 square metres to 625 square metres, and were priced from $243,000.
When completed, the Hermitage will be a 312 hectare community which will include a 10 kilometre cycling path and the regenerated South Creek. The development will also include a “hilltop village”, with boutique shops, cafes, restaurants and community facilities.
The Hermitage's next release will be a new precinct, planned for Easter. 
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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