<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

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>

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Ellen Walker

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

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

<img alt="iCIRT" data-entity-type="file" data-entity-uuid="dcbb59af-3d5a-43aa-b28e-a66e55a83568" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Announcement.png?VersionId=6OD8r.v.oucEF01BWxR85urzoD9seQ9e" />

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

<img alt="mirvac" data-entity-type="file" data-entity-uuid="1c11c691-e8cd-46c3-88fd-6c8d614e8357" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mirvac.png?VersionId=ZqDqNL36WJOOCmNMmmO93Q2GTrFOBomz" />Mirvac is a 5 Gold Star iCIRT rated developer, the highest possible rating a developer can get: Harbourside by Mirvac

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

<img alt="iCIRT" data-entity-type="file" data-entity-uuid="958e1497-8151-4689-aadc-baf59f6e6122" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/iCIRT-Infographic-Assessment-Process-Final.png?VersionId=7KyVcwSo4vCLXBYBdq382e3Si.R.9PWQ" />

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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The rate of apartments being offered off the plan is increasing, with developers of high density residential needing a certain amount of pre-sales before the development can kick off. These apartments are generally offered at a cheaper rate with incentives sometimes pinned on, but are these properties a good investment?
Property Observer has asked industry professionals from buyers agents to developers to weigh in with their thoughts.
They were each asked: Can off the plan properties be good investment? Why or why not?
John Carfi – Chief executive officer of <a target="_blank" href="https://www.mirvac.com/">Mirvac</a> residential<img width="113" height="150" src="/images/stories/2013/11/01/carfi-profile.jpg" alt="carfi-profile" style="float: right;">
YES, IF YOU BUY WISELY
off the plan properties can deliver great returns to investors, providing a stable rental income, the potential for capital gain and tax benefits through depreciation and negative gearing.
When investors buy property off the plan they are essentially buying sight unseen so the first rule should always be to ensure the developer and builder are reputable with a track record of delivering quality buildings as specified and on time.
The returns will be determined by many factors depending on whether the investor is intending to hold and rent or 'flip' the property to make a quick profit.
Flipping, or speculative purchase, is a much riskier investment strategy, and presumes that the market will rise and a profit can be made before or soon after settlement. It’s a gamble that may not turn out in the investor’s favour.
For those seeking a medium to long term hold, the factors to consider are the appeal of the property to tenants. If the property is well-designed with a high level of amenity, close to public transport, infrastructure such as schools, shops and open space it is more likely to attract a higher rent and be easy to let.
There are many tax benefits associated with owning an investment property and they are most favourable when the property is new. However this should not be the sole criteria for investment.
Another factor that will impact upon yield is the strata levy. These are not set until settlement however investors need to be aware that inclusions such as swimming pools, gymnasiums and the other attractive selling points of the development will need to be maintained by the owners corporation.
Most investors will be looking for capital gain and if you have bought wisely, a good quality product in a good location, the gains should be in line with the market.
 
Todd Hunter – Director at <a target="_blank" href="https://www.wheregroup.com.au/?">wHeregroup<img width="125" height="150" style="float: right;" alt="todd-hunter-profile-2" src="/images/stories/2013/11/01/todd-hunter-profile-2.png"></a>
off the plan IS RARELY A GOOD INVESTMENT
Let’s look at this practically, the developer is selling a product. They have worked out their numbers to the exact dollar on a spreadsheet and know how much they can sell for as a minimum. But who wants minimum?
As a property owner, when you sell, you want the maximum price don’t you? Well, so does a developer. Their issue is that they don’t have a big market presence in Australia so quite often they employ the services of a marketing company to spread the word to buyers right across Australia. They often have referral networks consisting of accountants, financial planners, and mortgage brokers to help them sell to their client.
Now these marketing companies do not work for free. Nor do the referral networks. The developer doesn’t want to drop their price either, so their fee is simply added to the developer’s sale price.
So why not go direct to the developer and cut out the middleman? Greed, by the developer to sell one at an increased profit as well as keep price consistency for valuation purposes.
It’s only when they have financial issues that they will liquidate and you can maybe get a deal.
Second reason - GST – why do you think that car prices drop by at least 10% the moment they drive out the driveway? Because the GST must be paid. The same is for properties but not on sell price but GST is paid on all good and services used to build the property.
For those reasons I have not seen many off the plan purchases of late that are worth investing in.
Next page: Paul Biller and Damian Collins
 
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Paul Biller – Principal of <a target="_blank" href="https://www.1stcity.com.au/">1st City Hasemer &amp; Caldwell-Eyles<img width="113" height="150" style="float: right;" alt="biller-profile" src="/images/stories/2013/11/01/biller-profile.jpg"></a>
off the plan PROPERTIES CARRY GREATER RISK THAN PURCHASING AN EXISTING PROPERTY
An off the plan purchase carries greater risk than purchasing an existing property as it is very difficult to establish fair market value for what the property will be worth on completion or predict an accurate future rental return. There will also more than likely be an oversupply of competing properties for rent when the development is completed due to other investor sales in the complex, ultimately resulting in having to lower the asking price in order to secure a tenant. Other things to consider are the project may not proceed if the relevant council approvals are not granted; the finished product may differ to what you anticipated; you can’t physically walk through the property you are buying.
There are however many advantages to buying off the plan including buying at a better price. When developers first offer their new projects they often offer them at discounted prices in order to secure required pre-sales for the bank. When the required number of pre-sales is met and construction begins the prices generally rise. Therefore, for investors who commit early to an off the plan purchase there is often a good price incentive.
Another advantage is the depreciation benefits. The newer the property the more tax deductions are available. The buyer is able to claim depreciation on their tax for items including fixtures and fittings. As the benefits are greatest when the property is brand new – buying off the plan maximises your available tax deductions.
As an off the plan purchaser you may get to customize your new property. Often buyers may have a choice of finishes to choose from including different colours, tiles, various fixtures and fittings as well as layouts which the developer may be able to incorporate such as merging two apartments into one large one.
There are also various government grants and stamp duty exemptions to first time property buyers.
As with all property purchasers, be sure to do your research. Look at the median apartment price growth in the area and research the project team including the developer, architect and builder.
 
Damian Collins – Director of <a target="_blank" href="https://www.momentumwealth.com.au/?">Momentum Wealth<img width="113" height="150" style="float: right;" alt="collins-profile" src="/images/stories/2013/11/01/collins-profile.jpg"></a>
GENERALLY, off the plan APARTMENTS ARE NOT GOOD INVESTMENTS
Generally off the plan apartments are not good investments.  Investors are often enticed to "get in on the ground floor" and hope that the property will be worth more at settlement than what they paid. Certainly in a rising market a property may be worth more than what you paid. But on the other hand I've seen many investors buy off the plan and find at settlement that prices are 20% less than what they paid. If you are buying for the intended gain before settlement then you are really a speculator, not an investor. For the long term investor an off the plan apartments provide additional risks. Firstly at the time of buying it may appear that there is limited supply on the market. However, if the market starts to see demand, developers in that area may release a substantial number of new properties leading to potential oversupply and poor price performance. One of the key reasons why off the plan apartments are generally not good investments is that there is too much building value and not enough land value. Ultimately the land goes up in value and the building depreciates. Many high rise apartments have little land content and the long term lower growth rates reflect this. Particularly with off the plan apartments, you are paying for a nice shiny new property that in a few years may not look so new to any future prospective buyers. off the plan sales are great for developers as it helps them get finance for their projects with enough pre-sales. If you are an owner occupier not focussed on the capital growth and you find a property that you think is ideal then it may be suited to you. However if you are an investor, give off the plan properties a miss and find a property with a good land value in an area with limited supply and high demand. You'll be sure to make much more money that way.
Next page: Ross Le Quesne and Kevin Lee 
 
 
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 Ross Le Quesne - Mortgage broker at <a target="_blank" href="https://www.aussie.com.au/?">Aussie Home Loans<img width="113" height="150" style="float: right;" alt="laquesne-profile" src="/images/stories/2013/11/01/laquesne-profile.jpg"></a>
ENTER WITH CAUTION
<div>Buying a property off the plan a can be an attractive proposition but, as with any property purchase, you must only enter into it with great caution and after much research.</div>
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 A brand new property in a new development is very appealing, but like buying a new car, you may find yourself paying a premium for something that is worth less the moment it's yours. off the plan properties can be overpriced due to the additional entities involved. The developer and builder need to make their profits, as well as a marketing agency (who can charge 5% selling fees) which inflates the price you pay.  To ensure you're not paying too much, you must always do your due diligence. Research the area and what similar properties are selling for now. Make sure the assumed future value (the value of the property by the time of completion) has not factored into what you've paid for the property. You want to be paying today's price when you sign your contract. Buying off the plan can sometimes be profitable. If you're buying in a growing area and you pay market price at time of purchase, meaning that by the time you pay for your property (sometimes 18 months later) you've already gained equity. You will only know that you're paying the right price if you're familiar with the local market and can verify comparable sales.
<div>The rental returns (especially as predicted by the vendors) of a new property can be attractive, but are they the best in the market? An investment is a business decision, not an emotional one - the property does not need to be beautiful to make good rental return. Are there established properties out there right now that will provide better returns for lower outlay and lower risk? To minimise the risk of paying too much you need to do your own research. Don't fall -n love with the idea of a brand new property, if you think you're overpaying you need to walk away.</div>
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Kevin Lee - Buyers Agent at Smart Property Adviser
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<div>THERE'S ASSOCIATED RISKS BUT GOOD OPPORTUNITY FOR FIRST HOME BUYERS</div>
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There has always been a degree of risk associated with purchasing residential properties off the plan, yet for some investors, a well-researched off the plan purchase can represent a solid opportunity and good strategic addition to their portfolio.
However we need to put this out there right now: don't purchase property 'off the plan' with the expectation that it will automatically increase in value whilst its being built.
Yes some people made significant capital growth on both existing property and off the plan purchases over the last 40 years - however you could be sadly mistaken if you put all your money on that horse over the next 20, 30 or 40 years.
This is a 'changing of the guard' moment in Australia's history, unlike anything we've ever witnessed.
The days of 'property doubling in value every seven to ten years' (if they ever did exist) are long gone. In fact I'm still looking in the Australian Constitution for where it says that "by merely signing a purchase Contract, you're entitled to capital growth".
If however 'chasing capital growth' is still part of your game-plan for 2013 and beyond, then you should only ever count on matching inflation - maybe a touch more in the long term. But know this - you will most likely have significant periods of negative or nil growth.
Having said that, there are a number things outside your control that can actually help create capital growth. Two that come to mind immediately are: poor government planning &amp; laws that restrict development; and natural geographical constraints that limit development (e.g. Sydney and South East Queensland's urban development confines).
Infrastructure development - or Urban Renewal programs - instigated by either Local, State or Federal Government are like a "free renovation" for your property. So if you can, choose an off the plan development in a metropolitan area where significant government infrastructure spending has been committed - not just planned. Politicians are good at 'talking the talk' - you need to ensure their money is committed in order for the rest of that old cliche to be played out.
Off the plan developments can sometimes prove to be a good opportunity for first home buyers to get into the market faster, with most state governments offering first home buyers significant incentives. For example in NSW they'll put $15,000 on the table and waive the stamp duty for purchases under their self imposed price threshold.
Savvy purchasers though will ensure that they aren't getting in over their head financially - this is your first home remember. Not your last!
Also - if you are buying off the plan you'd be we'll advised to do so as early in the piece as possible. Why? Because that's when developers are willing to offer their 'best terms' as you are actually helping them de-risk the project and qualify their proposed project for construction funding! They need you: it's that simple!
Finally, if the project, style, location and 'it' factor appeal to you and a few of your mates then think about going in as a 'group' - you will get a better deal. Think of it this way: it's like the company that buys a fleet of new cars pays a fair bit less that you do for your purchase of just one.
As I said at the outset, there is always risk associated with buying off the plan - do your homework and mitigate that risk as best you can.
Next Page: Adam Sparkes
 
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Adam Sparkes - Director of sales and marketing at <a target="_blank" href="https://www.crowngroup.com.au/?">Crown Group</a><img width="113" height="150" src="/images/stories/2013/11/01/sparkes-profile.jpg" alt="sparkes-profile" style="float: right;">
GET IN EARLY AND HAVE A LONG-TERM VIEW
The key thing to remember when buying off the plan, especially when buying into well-known developments, is the best investment returns are made by those who get in early.
Buyers who purchase in the first release are offered lower prices and a greater selection of apartments than buyers in subsequent releases or at completion - which means those who get in early also have more choice when it comes to position and aspect.
Adding to that, buyers who get in early can see capital growth even prior to completion. This occurs if similar properties in the development are sold off the plan later in the lifecycle of the project for higher prices. For example an apartment on level 5 sold for $1 million followed by a similar apartment on level 6 sold off the plan nine months later for $1.1 million, the latter provides a benchmark for valuations of the level 5 property sold earlier. This scenario can offer investors a chance to make capital gains faster than they may with existing properties.
Many of us have heard of the scenario seen in some Sydney developments in the early 2000s when investors purchased apartments off the plan and saw values significantly increase before completion. While,  I feel this is unlikely to happen again in Australia (and I would caution buyers solely motivated to buy apartments off the plan and hoping to sell for a large capital gain before completion), purchasing off the plan can present an attractive proposition for buyers willing to take a long-term view.  Investors buying with a view to hold the apartment for five- 10 years are better positioned to ride out the property market cycles and see good capital gains.
Other benefits of buying brand-new apartments include tax deductable depreciation allowances usually are higher for off the plan properties than existing properties, in addition investors are also eligible to the same out–of-pocket tax deductions as an existing property, making off the plan apartments an attractive proposition for savvy investors.
Finally, to give yourself the best chance of good medium-long term capital growth when buying off the plan, it’s worth looking at existing and future infrastructure in the area, including transport, hospitals, universities and schools. Finally, the facilities provided in the development itself, such as function rooms, pools, gyms and well-appointed foyers are becoming increasing important to tenants and buyers.
 
 
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Are off the plan properties good investments?

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Three penthouses have sold off-the-plan in the West End riverfront development Vida, totaling $8.9 million in sales and knocking the development up to 95% sold.
The $100 million development by private developer Pointcorp has one dual-level penthouse remaining, priced from $3 million.
Nearly all of the four-bedroom apartments have been snapped up between $1.55 million to $1.72 million and a range of three-bedroom apartments have sold between $1.25 million to $1.4 million.
"We have sold 12 apartments for in excess of $1.25 million in a matter of months," says Pointcorp sales and marketing manager Sam Patterson
"That is in stark contrast to the demand that has been experienced in Brisbane over the past few years, with the majority of interest targeted toward smaller, entry level apartments.
"As a result, most new developments released in recent times have catered to this market, so to have this type of success with a project that is specifically designed for those wanting a larger apartment with the highest quality fittings and finishes is a real sign the market has begun to shift,” says Patterson.
All three penthouses were sold to owner-occupiers.
"Each of our apartment types has been designed with a significantly larger floor plan than the average apartment in Brisbane, making them appealing to those who want to live in their apartment, and the position on the river, so close to the CBD and in West End adds to the appeal.
"While West End has long been renowned for being a 'trendy' area to visit, it is really still emerging as a residential hot spot.
“Savvy buyers have recognised this and are looking to secure their place now to take advantage of its urban renewal,” says Patterson.
Designed by Cottee Park, Vida comprises of 148 apartments across two 12-level riverfront buildings.
Remaining apartments are priced from $409,000 to $3 million.
Viva was released to the public in June, with construction to start later this year.
The median apartment price in <a target="_blank" href="/news">West End</a> is $220,000, a 25.2% decline in the past five years, according to RP Data.
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Brisbane West End Vida development 95% sold including $8.9 million in penthouse sales

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Hope you enjoyed the Melbourne Cup.  It signals the end of the official property year.  Time to rest until Australia Day.  What a great industry to work in; three months off at this time of year and usually two weeks over Easter too.
We work so hard.  We deserve it.  It would be even better if it wasn’t for some elephants in the room.
Hard yards
I keep on reading about how strong the residential market is.  It might be for second hand stock, but then I suspect only in certain locales and for specific price points.
But when it comes to new sales, it is still very much ‘hard yards’.  I think it will remain so – outside of Sydney – for some time to come, if not for this entire cycle.  For mine, much of Sydney’s recent momentum in their new residential market was more due to the change in NSW stamp duties and first home buyer grants than anything else.
There is very little urgency elsewhere and for good reason.  New property often does not offer value in the buyer’s eyes.  Many new projects miss the mark; there is plenty of choice and whilst net returns (rent, less maintenance and depreciation) have been pretty good for new investments in recent years, there has been very little price growth in recently built new housing.  Even in boutique projects, price growth has been lacklustre.
True, new sales have picked up since early September – but that feels like pent-up demand (as many waited until after the federal election to buy).  Looking forward, new sales will be harder – especially this summer.
Buyers are easily spooked and every new sale is hard fought.
And property reporting isn’t helping matters. 
As we noted <a target="_blank" href="https://matusikmissive.com.au/2013/09/24/hot/">a few weeks back,</a> there are a lot of misnomers about price growth, with new builds, renovation activity and the actual way the statistics are compiled affecting the results.
For example, do you really believe that unit prices fell by 30% in Molendinar (Gold Coast suburb) over the last year?  Molendinar is apparently the second worst ‘performing’ suburb in Australia.
But when looking at actual resales – not changes in median values – no such drop occurred.  In fact, attached property values (based on resales) actually rose by 2.1% in Molendinar over the last 12 months.  This rate of growth isn’t much to write home about, but it is world away from a 30% drop in ‘value’.
By the way, there are 864 building units in Molendinar, about a third of which are commercial premises, many semi-industrial in nature.  Several of the 50 ‘residential’ unit sales reported last year in Molendinar – as part of 30% fall in values – were actually industrial sheds and not residential property at all.
These lists are now getting out of hand.
This is the first elephant in the room.
Everyone in the industry needs to start questioning the actual data being pumped out.
But I suppose that would require a bit of property knowledge and a tad more work than regurgitating the press release.  Nearly everyone producing such lists either has an agenda or (sadly) it isn’t worth their time and effort to clean up the results.  Doing so would be counterproductive after all - as few markets actually behave so erratically and where is the fun and media release in that?
Oh, and don’t you love the reasoning real estate agents give when it comes to explaining such wild leaps and bounds.  My favourite goes something like this: “That’s because there is better value elsewhere, come look at what I have listed for sale”.
How about we start questioning these lists and those producing them much more?  I will bet you that nine out of 10 times they are incorrect and nothing like that is actually happening in those locations that seem to make the ‘hot’ or ‘crash’ lists.  Yet many novice buyers take them as gospel.
And why aren’t we making such comments in the press?  Sure, we get asked, but I always ask to see the list first.  Sadly, the data is often embargoed so we refrain from commenting.
Sniper bait
For every new sale settled, two actual sales are actually made.  Often, more work goes into the ‘sale’ that falls over than the one that sticks.  That is the nature of selling new property.  It has always been the case.
Selling something new – often off-the-plan - via a few simple tools like a building model, reports, brochure and feature board – is quite difficult.  Many buyers get cold feet, as they cannot visualise what they are actually buying.
But today there is another problem.  Seemingly solid deals are being killed by deflection.  Those doing the deflecting are often those whom buyers trust the most – their account, solicitor or even financial advisor.
Investment sellers get a bum rap.  They are the sharks in the pool.  But at least they come at you front on.  It’s the professionals – those one or two steps removed from the sales process – who have the sharpest teeth and largest appetites.  And most of the time, you don’t seem them coming.
Let’s use a recent real example to illustrate.
A young resource worker is advised by this father to stop wasting his money and invest some of it.  An appointment is made to see a financial adviser.  The advice is to buy a residential property.  A new property is found – independently by the young gun – contracts signed, deposits paid and off to the accountant the contract goes.  The accountant heavily suggests that the said investment is a poor one and that a better investment would be to buy into project X.  This advice is taken – as the accountant is trusted and it is assumed should know about such things – the first contract is ripped up and a dwelling in project X is bought.  The buyer isn’t aware of the $10,000 kickback the accountant got for the sale.
This is another – if not larger – elephant in the room.
This, of course, doesn’t apply to the vast majority of property professionals but it is happening out there.  It is very hard to make a new sale when there are so many snipers in the trees.
If we are going to have a Form 27c in Queensland, then let’s at least outline the actual firms being paid a commission and stop hiding XYZ Accountancy or ABC Solicitors under ‘marketing or advertising’.  Many buyers, sadly, don’t read the forms that they sign, but some do.
End note
I also keep reading about the big lift in new housing approvals.  Lower interest rates are working blah, blah.  Yet many of these approved projects will not <a href="https://matusikmissive.com.au/2013/10/22/better-developments/" target="_blank">eventuate</a>.
There is heaps stacked up against new property – GST, taxes and charges, long and opaque council approval process and NIMBYism, to name just a few.
Whilst we now have an undersupply of new property, the mismatch between demand for new property and its supply isn’t anywhere as high as many economists believe.   So the usual drill of need exceeding supply won’t work this time around as well as it has in the past.
The two elephants in the room – misinformation and deflection - aren’t helping matters.  Outside of Sydney, it is going to be harder to make the new sales (that settle) that many anticipate over the next couple of years.
And it is in the country’s interest that more new homes are actually built.
Here are some facts to ponder:
<ul>
<li>
Residential construction (not approvals) adds two percentage points of GDP growth
</li>
<li>
Every $1 spent on residential construction has generated $1.31 worth of spending elsewhere in the economy
</li>
<li>
Every $1 million spent on residential construction generates 17 jobs on a full-time basis.
</li>
</ul>

<hr>
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
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michaelmatusik-49YzLvdmNv

The hard yards: Second hand stock is booming but new sales is a different story

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There are multiple messages in dwelling price data from Australian Property Monitors, including evidence that we have rising markets but not a boom – not yet, anyway.
Sydney is now the price growth leader of capital city Australia, both for apartments and houses. APM’s figures give Sydney an annual rise of 11.7% for houses and 10.2% for units.
The next best is Perth (up 8.6%) for houses and Darwin (up 8.2%) for units.
To put that into perspective, in mid-2010 every capital city had double-digit annual price growth, including two cities that were above 20%. That was a boom, thought not a bubble, given that the subsequent price decline in 2011 and 2012 was relatively minor – and now prices are rising again.
The overall growth is still quite moderate, with Canberra, Brisbane and Adelaide all with annual house price growth below 3% and Hobart around 5%.
With apartments, the APM figures record median price decline in six of the eight capital cities in the September quarter. The only exceptions were Darwin and Sydney.
In annual terms, all cities except Brisbane have median unit prices higher than year ago, but only Sydney and Darwin have annual price growth above 7%. Melbourne, Brisbane, Canberra and Adelaide are delivering little or no growth in median unit prices.
These figures, looked at overall, are a reminder that the headlines about markets going ballistic are coming out of Sydney, where some sections of the house market are indulging an auction frenzy.
We do not (yet) have a national property boom, although we do have encouraging growth in many of the major markets, as well as some regional markets.
It highlights once again how much the residential property industry needs balanced reporting from people with expertise and experience. Given that major media businesses are sacking rather than nurturing editorial talent, we are unlikely to ever get calm reasoned coverage of real estate in metropolitan newspapers.
There are multiple reasons why Sydney is currently displaying faster price growth than other cities, including the reality that Sydney has some catching up to do.
Before 2013, Sydney had been the chronic under-achiever of the major property markets, with 10 years of mostly sub-par performance. Its economy had been ordinary, its government had been dreadful and there was a marked absence of infrastructure development.
Most Sydney suburbs have averaged just 3-4% in annual price growth since 2003. You have to go to drought-stricken one-horse towns to find worse price performance.
Those who cling to the notion that Sydney is always the best place to buy, and that the trendy suburbs beside the CBD or the beaches are the best places to invest, will take the recent upturn as confirmation of their entrenched attitudes.
But the million-dollar suburbs of Sydney will have to deliver a lot more growth to make up for the past 10 ordinary years.
<hr>
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank" style="font-size: 14px;">Twitter</a>.
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terryryder-YECXbqmri2

No national property boom (yet), but encouraging growth in many markets

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With the federal election now done and dusted, its almost hard to remember a time when Tony Abbott wasn't PM. For those of us who actually miss the spin, gaffes and broken promises of an impending election (aside from the ones our esteemed PM still provides), never fear - the state election is only 12 months away - even less if Geoff Shaw manages to alienate yet another subsection of the Victorian population before then.  For those of you who would rather stick pins in your eyes than endure another campaign, there is a light at the end of the tunnel (and not the East-West kind) - the next election has promised to be fought with a strong focus on everyone's most cherished everyday experience - public transport!
Whilst public transport was an issue at the last state election (remember Ted Ballieu's war cry to 'fix the problems'?), that will pale into insignificance compared to the role it will play in the 2014 poll, thanks to everyone's favourite boondoggle - the East-West tunnel. Having won the last election promising a raft of rail projects, they quite inexplicitly back flipped and decided to build a road tunnel instead.  Whilst the common perception is that it will do nothing to ease congestion, and with no business case to even justify its existence, the government's motive to pump $8 billion into it is the biggest mystery since the 1980s asked 'Who shot JR?'.  Whilst it has provided opposition leader Daniel Andrews a much needed bat to whack Premier Napthine around the head with, the tunnel's location has also provided plenty of ammunition for one of the Greens' and PTUA's favourite obsessions - the Doncaster Rail Line.
The PTUA's and Greens' obsession with Doncaster is the stuff of legend.  In fact, if Doncaster Rail was a person, they'd both be charged with stalking.  Whilst the benefits of the Melbourne Metro and high capacity signaling are obvious, they continue to bang the Doncaster drum with monotonous regularity.  The romance of it makes for a great sob story - 'The people of Doncaster have been waiting 90 years for this' we're constantly told.  Anyone would think that Doncaster is a remote village that has to wait for a twice a week horse and cart service to visit the big smoke in Melbourne.  The much improved DART bus service is all but forgotten when it comes to talking about existing alternatives. So is a Doncaster rail link really needed? Or even viable for that matter?
<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-doncaster_rail-620x349_1.jpg" rel="gallery-all" title="Image courtesy www.theage.com.au"><img alt="" class="image-article-half-width-351px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_half_width_351px/public/pictures/article-images/art-doncaster_rail-620x349_1.jpg?itok=PzN2NmdH" title="Image courtesy www.theage.com.au" typeof="Image"></a>
Doncaster should be, in theory, the perfect rail project.  With a ready made reservation down the middle of a freeway, there are no debates about underground or overground, route or compulsory acquisitions; important factors when retro fitting rail through brownfield sites; but the list of negatives are just as striking.  Whilst a freeway makes for an obvious route, no one actually lives on a freeway. The distance to housing is even more pronounced in the case of the Eastern Freeway, as much of it runs through parkland. This means walk up patronage is already reduced, removing one of the major draw cards of catching public transport in the first place.  To address this, large park and rides would be be required at EVERY station (5 are planned), not just at the terminus at Doncaster Rd or Doncaster Hill.  Not only would parkland be consumed to build them, patronage is also restricted by the size of the car parks.  This in turn removes motivation to catch the train - 'Why bother driving to the nearest available car park? I may as well drive all the way in...'.
The 2nd major problem is cost where some ridiculous figures have been bandied about to build it.  A report by Curtin University, RMIT and engineering firm Arup claims it could be done for the bargain basement price of $840 million, whilst the PTUA claim they could build stage 1 to Bulleen for a paltry $100 million.  Melbourne's most recent completed rail project, the South Morang extension, cost $498 million, for a 3.5km extension with 1 new station and no tunnels (though there was a grade separation at Cooper St).  Doncaster is a 12km line with 5 new stations and major tunneling involved at both ends; the Doncaster Hill tunnel being especially tricky as it requires an uphill tunnel that would be the deepest in Melbourne.
This makes those quoted figures look absurd.  Hardly surprising given the $840 million figure was based on Perth's Mandurah rail line - a project built almost 10 years ago and through predominantly greenfield sites. The PTUA figures are just downright irresponsible - in the current environment of high infrastructure costs, it's most unlikely they couldn't even build the incredibly complex interchange at Collingwood for $0.1 billion, let alone the track, wires and station.  I'll run the length of the entire rail line naked if they could build it for under double that figure!  More sensible quotes seem to start at $3 billion (Collingwood to Doncaster Park &amp; Ride) and go up to about $11 billion for the whole shebang (to Doncaster Hill + tunnel from Clifton Hill to Southern Cross).
Complicating matters further is the issue of patronage.  Some outlandish claims have been made here too; one study even claiming that the Doncaster line could carry about 100,000 passengers a day equating to 20,000 per station, somewhat unlikely numbers for a predominantly suburban line with no interchanges.  As a reference point, the network's busiest non loop station is Footscray, carrying about 15,000 a day and it's a major metro rail/vline/tram/bus interchange.  Furthermore the recently completed Doncaster rail study showed a train would actually take few cars off the road, with the majority of passengers coming from the previously mentioned DART bus.  Regardless of the numbers, just running trains to Doncaster would put extra strain on the Clifton Hill - Flinders St section.
The South Morang Line is already bursting at the seams, and with South Morang now the fastest growing suburb in the country, its thirst for capacity is only going to get bigger.  Compromising this with a new line that will carry a questionable number of passengers is simply a case of robbing Peter to pay Paul.  The only way to avoid this is to build the Clifton Hill to Southern Cross tunnel, which will probably be needed to de-couple the South Morang Line regardless.  But of course, this tunnel can't be built until the Melbourne Metro tunnel is built first.
<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/731929-train-line1.jpg" rel="gallery-all" title="Image courtesy www.ycat.org.au"><img alt="" class="image-article-half-width-351px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_half_width_351px/public/pictures/article-images/731929-train-line1.jpg?itok=_ig8teJX" title="Image courtesy www.ycat.org.au" typeof="Image"></a>
Whilst the Doncaster rail line is hardly on my Christmas wish list for 2013, I'm not saying we should throw it on the eternal scrap heap.  It may very well be viable, even necessary down the track with the current number of apartment developments being proposed for Doncaster itself, demand could eventually outstrip the capacity the DART buses can deliver.  The Clifton Hill - Southern Cross tunnel will already be built, ensuring the Doncaster wont take capacity away from the South Morang line (or Mernda line by then, or hopefully Whittlesea line), allowing money to be used for the necessarily large park and rides.  And as was recently suggested, maybe the Eastern Freeway will be tolled, providing the bulk of the required funds for the project, as well as an extra incentive for people to use the train instead.
Doncaster, Rowville, Melton electrification, Mernda Extension are all great future projects, but to use some of Paul Keating's terminology, the Melbourne Metro Tunnel is the 'Black Caviar' of transport projects.  It is the only project that benefits the whole network, whilst transforming it into a true rapid transport network.  It could be argued that high capacity signaling would also be universally beneficial, however we wont see its full potential if we don't remove the bottlenecks that only de-coupling will provide.  In a day and age where high infrastructure costs reduce us to picking winners, the Melbourne Metro tunnel must be our first priority - not a disproportionately expensive suburban line with dubious benefits.
Whilst the Greens &amp; PTUA's hearts may be in the right place with its unconditional support of public transport, choosing to back populist projects over more necessary ones is hardly helping the cause.  The only way we can stop misconceptions like the East West tunnel is to be united on its opposition.  The public has spoken loudly in its support of public transport over roads - its time the PTUA took one for the team and supported all those voices, not just a select few.  Bring on the State election!
 
Further reading
<a href="http://www.doncasterrailstudy.com/">http://www.doncasterrailstudy.com/</a>
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TheHeadOnTheDoor

Is DONcaster rail, is good?

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The latest ABS data has indicated the percentage of first home buyers active in the market has once again fallen, from 14.7% in July, to 13.7% in August.  
Subsequently we’ve been <a href="https://www.propertyobserver.com.au/first-home-buyers/sacrifice-and-compromise-the-reality-of-first-home-ownership-terry-ryder" target="_blank">bombarded with commentary</a> asking why this should be so in a low interest rate atmosphere, where, there are plenty of acquisitions available for sub $300,000?  
Not withstanding, whilst 10 years ago $200,000-$300,000 would have secured a modest home in reasonably facilitated suburb, today – due to woeful supply side policy – you’d struggle to find family size accommodation on the fringes of our major cities for the same expense.  
First home buyers will always wax and wane to some extent, based on their perception of value and <a href="https://t.co/cRxqNHaHPi" target="_blank">ability to save</a> over and above items of affordability alone.  
And whilst a lower percentage entering the market can in part be attributed to lifestyle factors such as labour mobility, getting married later in life, numbers falling under the radar on <a href="https://www.accreditedbroker.com.au/knowledge-portal/articles/512-where-have-all-the-first-home-owners-gone" target="_blank">loan applications</a> and the shadow effects of various grants and incentives being introduced and subsequently scaled back (thereby producing a demographic shift in the timing and age at which buyers enter the market), there are other factors at play which clearly point towards pressures of affordability.  
For example, just from the last census alone we can see the percentage of one person households has decreased for the first time in over 100 years from 24.4% to 24.3% - whilst at the same time group households have jumped from 3.9% to 4.1% and crowded houses with three or more families have risen nationally by 64% to 48,499.  
A closer look at exactly what it costs to rent a modest apartment within commutable proximity to our capital cities gives some indication why this should be so.  
For example, in Melbourne - (which currently has one of the highest vacancy rates of any capital – 2.7% (SQM) for the month of September) - if you’re halfway fussy, requiring good proximity to transport, a modest balcony, or internal floor space over 40 square metres, you’ll be hard pushed to get a one-bedroom apartment in original condition under $320-$350 per week.  
In Sydney, the equivalent will cost between $450 and $500 per week – therefore it makes sense to share expenses, and this is certainly the case with renters I’m in contact with.  
An argument consistently put forward when discussing the first home buyer demographic, is the idea that many want to rent, rather than buy – and it’s certainly one I have sympathy with, whether that be for <a href="https://t.co/cRxqNHaHPi" target="_blank">lifestyle</a>, affordability, or work purposes.  
However when two people meet and plan a family, there is a natural desire to settle. In the absence of long-term lease and rent controls, most would preference purchasing over renting.  
Therefore, a drop in ownership for this demographic, falling 79.5% to 77.2%, coupled with increasing numbers becoming long-term renters, is concerning.  
The Grattan report, released early last week, clearly demonstrated how tax policy is disproportionally weighted toward the owner/investor at the expense of the renter.  
Indeed, so imbedded is it in the Australian culture that home ownership is the key to financial freedom, there is an un-witting air of sympathy when we refer to ‘generation rent.’  
As for the first home buyer - assuming their initial property is not going to be their last - it would be more apt to term the demographic ‘first time investor’ with the need to purchase a growth generating asset in an area with enough projected consistent buyer demand, to ensure equity to tap into, when time comes to upgrade.  
Notwithstanding, the investment potential of their purchase is always an initial question from home buyers I assist.  And to get on what’s the commonly termed the ‘property ladder’ today, is markedly different from the post-war environment baby boomers were born into.  
Much of the newer accommodation being constructed is generally not attractive to consumers - being high-density, low-grade apartment blocks for which first home buyers can have difficulty obtaining finance.  
Whilst it’s not impossible for those who have saved a deposit to enter the established market - the stronger financial arm of the investment sector competing for a similar pool of dwellings around the suburban median price bracket, can present a significant challenge.  
Urban boundaries and the propensity to towards land banking, hefty tax overlays and poor infrastructure development, has ensured land on the outskirts is already artificially inflated, rather than representing a cost that would assist purchasers to compensate for the expense of commuting greater distances to work related services.  
The residents who purchased in Melbourne’s Point Cook for example, which was expanded in line with the 2030 plan and initially marketed as “A thriving neighbourhood … just 22 kilometres from Melbourne’s CBD” with “convenient access to established schools, shopping, recreational facilities and public transport” have seen their <a href="/news">home values fall</a>, battled with overcrowded roads, and a minimum two hour commute to the CBD in peak hour traffic.  
So whilst it’s easy to accuse first home buyers of being picky, one could just as easily ask why they should they forgo a hard earned deposit to accept what’s currently on offer, or exceed the budget to outbid competition for a limited number of established dwellings?  
First home buyers are not a ‘buy anything as long as it’s cheap’ consumer – although some mistakenly assume they should be if they want to get into the housing market.  
And whilst commentators use low interest rates to support the argument that housing affordability has improved, it is important to understand that housing affordability and the cost of servicing a mortgage are two separate entities.  
Mortgage rates are set up with different structures dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
To take out a 25 year mortgage requires the expectation of secure employment in a terrain where frequent job changes or part time work are becoming a norm.  
They may influence house prices through a cycle, but they do not take away the fact that home prices now – even with lower lending rates – require longer terms to pay down, with the interest over the duration of that period adding considerably to the capital cost.  
Next page: So what can be done?
 
<hr class="system-pagebreak">
So what can be done?  
As recorded by APM, Sydney’s median house price has increased by 4.2% over the September quarter to $722,718 – ‘the first capital to reach this milestone,’ whilst, the unit median has pushed past the half million landmark to $510,000.  
The current rental yield for a unit would be around 4%, therefore most new investors would be negatively geared and speculating on capital growth accrued during the period of ownership plus another like minded investor paying more at the end of that duration, to make the strategy productive.  
Yet, despite this robust activity from the investment sector making up around 50% of the buying market, Sydney’s vacancy rate recorded the largest monthly decline in September of any capital - now at 1.8% (SQM).  
This is because, the concentration of investment is focused overwhelmingly on the established sector through policies such as negative gearing coupled with 1999 decision to tax capital gains at half the rate applicable to other income. Since implementation, supply has not increased; rather investor activity around a limited pool of second-hand dwellings has multiplied (see next graph).  
<img src="https://www.urban.com.au/images/stories/2013/10/28/cashmore_oct_28_one.png" alt="cashmore_oct_28_one" width="470" height="350">
Needless to say, common sense dictates that maximisation of policy initiatives to increase supply cannot occur if we don’t address this mindset.  
<a href="https://www.facebook.com/l.php?u=http%3A%2F%2Fwww.propertyobserver.com.au%2Fnegative-gearing%2Fnegative-gearing-a-boon-for-investors-not-so-great-for-renters-catherine-cashmore&amp;h=2AQHhdbwt" target="_blank">As I touched on last week</a>, prior to negative gearing being quarantined in 1986 – rents were already rapidly rising in Sydney and Perth, with vacancy rates below 1%.  
Therefore, it is not clear whether subsequent rises were wholly due to the tax changes.  It is also not clear that a continual sharp increase in rents would have been worst had the policy backflip not occurred.  
However, without effective supply side initiatives to offset the inflationary elements investment in established property has produced, the market is simply a game of musical chairs - replacing a property for sale with a property for let.  
Solution  
I’ve said on many occasions that the challenge of creating a balanced, affordable, attractive market for homebuyer, investor and renter alike cannot be tackled on one front.  
There are many distortions that need to be slowly unpicked, whilst robust activity to lower land values and increase supply implemented.  
As it stands, considering the number of investors who rely on negative gearing as a tax/investment strategy, we’ve arguably painted ourselves into a corner.  
I am a full agreement that negative gearing is a failed policy. However, I would hesitate in abolishing it in one foul swoop for the following reasons.  
Whilst here is little evidence to suggest there’d be an investor exodus, there’s also scant evidence that first home buyers would be in a position to immediately soak up any additional stock at current prices – bearing in mind negatively geared investments are most suited to this demographic (being smallish one or two bedroom apartments.)  
The average first home buyer borrows around $280,000-$300,000 – therefore we’d need to see more than a light correction in values to provide a competitive entry point – not to mention the difficulties most have saving a deposit.  
Furthermore, even if established supply were to increase with projected lower demand from investors, to see substantial drops in values assumes vendor’s being forced to sell at a loss.  
As evidenced in some of our previous downward cycles (most recently during 2011 to 2012) markets can stagnate rather than truly ‘correct’ with many buyers taking a back seat expecting further falls.  
However, a gradual deployment of speculation away from established dwellings, with incentives to investors to purchase new over old, coupled with assistance to potential home buyers to either <a href="https://www.moneysmart.gov.au/managing-your-money/banking/savings-accounts/first-home-saver-accounts" target="_blank">save</a>, or enter into <a href="https://www.keystart.com.au/" target="_blank">shared equity schemes</a>, would be a start to meeting any increased supply with new home buyer demand.  
The policy could be gradually phased out by limiting it to a fixed number of investments  - two for example – or taking the suggestion made by the Henry tax review of tightening current arrangements with a lesser 40% of interest allowed as a deduction, and capital gains taxed at the slightly higher rate of 60%.  
This at least would be a starting point toward a fairer market.  
Additionally, dramatically increasing supply of new ‘quality’ accommodation with some reserved for low-income workers must take priority, as well as a structured plan to increase infrastructure through the consideration of bond financing for example.  
Over the 17 years to 2012 negative gearing cost Australian tax payers around $33.5 billion (inflation adjusted for the period estimated). Considering we have an aging population requiring increased spending on healthcare and other related services, coupled with a widey spruiked shortage of housing and, as Tim Toohey pointed out in a recent Goldman Sachs publication, forecast income growth of 3.5% in 2013-14 compared to an average of 15.5% over the last 15 years, it’s hard not to see better ways to manage the budget.  
Indeed – any politician with more than a short-term mindset – would be blinkered to imagine we can continue with the current status quo for ever.  
Additionally, an overhaul of policy surrounding tenancies is also necessary. However, that’s for another column.
<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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catherinecashmore-6LXia3pPQj

Why aren't first home buyers purchasing?

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Recent national dwelling approvals data by the Australian Bureau of Statistics shows that with interest rates at their lowest levels in 53 years, dwelling construction approvals are now higher than their long-term average levels.

This latest news will please the RBA where Governor Glenn Stevens recently stated that with interest rates at extremely low levels, dwelling construction is starting to fill the void.
The RBA was keen to see an increase in dwelling construction, not just higher home prices. Governor Stevens also commented that the RBA was hopeful that dwelling construction could pick up some of the economic void as mining investment went past its peak. The good news for the RBA is that what they desired is exactly what is coming to fruition.
<img alt="kusher-oct-25-one" height="213" width="470" src="/images/stories/2013/10/25/kusher-oct-25-one.gif">
Lower interest rates and incentives to ‘buy new’ are fuelling a higher number of dwelling approvals, which ultimately leads to construction which in turn provides a substantial multiplier effect for the domestic economy.
Based on the ABS results, the best response to the lower interest rate environment in terms of dwelling approvals was seen within New South Wales, Queensland, South Australia and Western Australia.
While approvals in Victoria trended lower, the number of approvals across the state was significantly higher in previous times than those in other states and has recently recorded a significant decline.
<img alt="kusher-oct-25-two" height="237" width="470" src="/images/stories/2013/10/25/kusher-oct-25-two.gif">
This result is not necessarily a bad thing given the fact that the housing supply deficiency is lower in Victoria and there have been looming concerns about excessive levels of construction within inner Melbourne and across the outer fringe of the Melbourne metro area.
Across the states there have been early signs of a revival in dwelling approvals. The annual number of dwelling approvals as at August 2013 was 22.6% higher in New South Wales, -3.0% lower in Victoria, 12.2% higher in Queensland, 9.6% higher in South Australia and 31.8% higher in Western Australia.
With month-to-month dwelling approvals data so volatile, it’s important to look at the trend where based on today’s accompanying charts, it can be seen that approvals are beginning to trend higher.
Based on a rolling 12 months average figure, there were 13,589 approvals in August 2013 which was 11.7% higher than in August 2012. The August 2013 approvals figure of 12,163 was the most recent low.
<img alt="kusher-oct-25-three" height="234" width="470" src="/images/stories/2013/10/25/kusher-oct-25-three.gif">
The RP Data-Rismark September Home Value Index confirmed that capital city home values have increased by 8.7% from their recent low. Given this and based on percentages, the rebound in approvals was stronger than the lift in home values.
A lift in dwelling approvals is more important than a lift in home values. It would be fair to say a higher rate of dwelling approvals is much more beneficial to the Australian economy than a lift in home values. Unfortunately without the additional demand created through higher home values and sales it is less likely that developers would take on the risk of building more homes.
The rolling 12 months average dwelling approvals figure shows that approvals are now 1.9% above their 20 year average. The issue here is that for most of the past 20 years, the supply of new dwellings has been insufficient. This result is probably not actually a good benchmark; no doubt the RBA would like to see approvals continue to climb further from this point.
<img alt="kusher-oct-25-four" height="238" width="470" src="/images/stories/2013/10/25/kusher-oct-25-four.gif">
The ABS dwelling approvals data is the sharp rise in the proportion of approvals for medium and high density housing. He found that over the past 12 months, 41.6% of all approvals were for units where just five years ago, only 33.2% of all approvals were for medium and high density properties.
The shift towards a higher proportion of unit approvals is a change that may be difficult to accept for potential home owners but will no doubt be an ongoing feature of the market over coming years.
As long as governments continue to show a reluctance to expand urban footprints, particularly within our major capital cities coupled with population increases in these areas, there will subsequently be additional demand for housing.
It is clear that instead of supplying a greater number of detached homes there is a general preference, particularly in some of our larger cities, for densification of inner city areas. This is not necessarily a bad thing, especially considering that this development of inner city areas will reduce the requirement for new infrastructure.
 
<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
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ckusher-ujnxiKuFQs

Low interest rates push construction approvals higher than long-term average: Cameron Kusher

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A fascinating week with the Abbott government establishing its commission of audit in order to return the budget back to surplus which will require wide – ranging cuts. <a title=" Return to budget will be ‘a herculean task" href="https://www.theaustralian.com.au/national-affairs/policy/return-to-budget-surplus-will-be-a-herculean-task-says-deloitte-access-economics-report/story-fn59nsif-1226743490437" target="_blank"> Return to budget will be ‘a herculean task</a>’, says Deloitte Access Economics so the leading question then is where are these 'rivers of gold' that the government will release in order to get the budget back to surplus?
I can’t see this happening anytime soon given these new cuts (whatever they will be) won’t be introduced until after the next election. The Abbott government’s preferred approach is to submit their reforms (cuts) to the voters at the next election seeking a mandate.
Front and centre will be property – <a title="housing is Australia’s great boondoggle" href="https://www.businessspectator.com.au/article/2013/10/24/australian-news/housing-australias-great-boondoggle" target="_blank">housing is Australia’s great boondoggle</a>. If Joe Hockey’s audit committee is looking for a way to save a lazy $43 billion a year, the middle and upper-class welfare that is Australia’s housing policy might be a good place to start.
The Grattan Institute’s <a title="Renovating Housing Policy" href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">renovating housing policy</a> has determined that this massive wealth transfer puts $36 billion in the hands of existing home owners and a further $6.8 billion goes towards subsidising owner – investors into a product that delivers yields that are generally lower than equities or fixed interest. Between them, owner occupiers and investors receive over 90% of government funding directed towards the housing market.
The report confirms that government tax and welfare policies are contributing to housing unaffordability in Australia, with most of the welfare pie directed towards home owners and high income earners. Investors benefit from negative gearing and discounts on capital gains tax. First home buyers receive the first home buyer’s grant, which while popular, largely accrues to home owners via higher prices.
This motivated me to do a case study on Mosman and the conclusions sent alarm bells ringing. I went to the Mosman Council website and looked at the 2011 Census data.
MOSMAN
<ul>
<li>
Number of Houses: 4,746
</li>
<li>
Number of Apartments: 8,079
</li>
<li>
Combined Total: 12,891*
</li>
</ul>
*Includes three houseboats, eight other and 55 not stated. The census also showed at the time it was conducted that 1,242 dwellings not occupied.
I am advised that Mosman has approximately 6,000 properties for rental which in itself is a staggering number – 46.6%. If the government were then to be heavy handed on negative gearing the Mosman property market would be absolutely decimated with investor exit strategies.
NORTH SYDNEY
<ul>
<li>
Number of Houses: 4,518
</li>
<li>
Number of Apartments: 30,188
</li>
<li>
Combined Total: 34,897
</li>
</ul>
We don’t know how many properties are leased in the municipality of North Sydney.
<img alt="22-10-2013 1-54-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-1-54-30-PM.jpg" width="470" height="651">
<img alt="22-10-2013 2-41-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-2-41-30-PM.jpg" width="470" height="273">
<a title="Leave negative gearing alone: REIA" href="https://www.propertyobserver.com.au/finance/leave-negative-gearing-alone-reia/2013102165847" target="_blank">Leave negative gearing alone</a> said the REIA which was an expected response although the argument that carried the most weight was <a title="REIA persists with negative gearing lies" href="https://www.onlineopinion.com.au/view.asp?article=15604" target="_blank">REIA persists with negative gearing lies</a>. Reserve Bank of Australia data clearly shows that the overwhelming majority of investors - over 90% - buy pre-existing dwellings, and the proportion of investors buying new dwellings has fallen spectacularly since negative gearing was reintroduced in September 1987.
On the other hand, one area that could be looked at is the <a href="https://www.businessspectator.com.au/article/2013/10/18/politics/political-capital-locked-house-prices" target="_blank">GST that applies to new homes</a>. It is around one quarter of the taxes and charges that “drive a wedge between home builders and buyers”. Taxes and charges, including having to pay infrastructure bills up front, make up 40% of the cost of a new dwelling. This would explain why Australia’s new home construction is in the doldrums – and won’t be changing anytime soon. Furthermore this also sheds light on why so many of Australia’s construction companies have been forced into liquidation.
If the government does submit to abolish negative gearing at the next election it would win overwhelmingly given one third of Australia’s population rent, one third own with a mortgage and one third own without a mortgage.
<a title="Sydney beats $700,000 price barrier" href="https://canberratimes.domain.com.au/real-estate-news/sydney-beats-700000-price-barrier-20131023-2w1la" target="_blank">Sydney beats $700,000 price barrier</a> in the September quarter the median price jumped 4.2% to $722,718 – as one commentator remarked “We are in uncharted territory now.”

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">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 title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">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

Property will be front and centre of the government's planned reforms

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Regular readers will know that I have for some time expected the Sydney property market to outperform based largely upon its strong fundamentals as compared to other Australian capitals combined with the harbour city's relative under-performance since the first quarter of 2004.
This is evidently now playing out fairly dramatically with reported dwelling prices up by around 10% in the matter of only a few months.
At the same time, various other real estate markets are not firing in anything like the same way.
In fact, when adjusted for inflation - as RP Data does in their enlightening chart below - most other property markets are some way below their previous peaks in 'real terms'.
In other words, certain markets may be experiencing what some have described, aptly, as a "slow melt".
That is, they may be gradually increasing in terms of actual dwelling prices over time, but capital growth on average could remain lower than the rate of income growth.
In doing so, such markets may well become more affordable over time as household incomes increase.
Hobart and Brisbane are two good examples of where current prices are comfortably more affordable than they were at the previous market peak (at least, on a city-wide basis).
<img alt="Embedded image permalink" height="259" src="https://pbs.twimg.com/media/BXOnGfICMAIQIMC.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
I'm aware that some people argue that not everyone is receiving pay rises right now. This is undoubtedly true. In fact, that is always the case.
But as the Australian Bureau of Statistics (ABS) data has shown, incomes have continued to rise in recent times on a national basis. Some industries - notably the mining and resources sector - have naturally fared better than others in terms of salary growth.
In any event, the current property market upturn is demonstrably largely a Sydney affair.
Interestingly, as recently as June of this year there were various misguided reports of a "weak" Sydney market (see the mid-year dip in RP Data's chart below), whereas now only a few short months later the pitchforks are out blaming Chinese buyers for forcing up our property prices.
Such are the pitfalls of daily home value indices and a greatly increased volume of reported data.
<img border="0" height="180" src="https://2.bp.blogspot.com/-gjTrpr11Fe0/Umc5z7QTQSI/AAAAAAAAKlc/To-yVEfZIyo/s400/RPD.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
In other news, there were signs of inflation in this week's consumer price index (CPI) release for the quarter (the headline reading jumped to 1.2% for the quarter, although the trimmed mean and weighted median prints were sitting back in the desirable range) including in the housing and transport categories, although the ABS data was once again something of a mixed bag of messages.
Although inflation remains well under control on an annual basis, further interest rate cuts look to be doubtful at this stage. The data tumbling out of Sydney's housing market may represent one factor in the equation; the interesting movements in the Australian dollar recently was another.
 
<hr>
 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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pwargent-M4siyDbqQY

Sydney is firing but other markets are experiencing a 'slow melt'

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Forecasts are down for the engineering construction sector but economists are crystal-ball-gazing to see where the sector will end up.
The residential construction sector has been picked to carry the ball but its recovery has not been a swift starter. Expectations that residential will rise in the next six-12 months are not meeting actual figures.
A rise in commercial construction has also been flagged but is not expected for 18 months at least.
A BIS Shrapnel report released today states the engineering construction sector, responsible for transport, mining and other heavy industry projects, was set for a 7.6% decline this financial year. The figure is a jump on a March forecast of a 5.4% slump, The Australian reports.
The report states engineering construction peaked in 2012-13 and is expected to plummet 19% over the four years to 2016-17.
A Master Builder’s Association survey on confidence in September has shown a drop in sales, work on the books, and expected activity exceeding actual activity.
MBA chief economist Peter Jones said the construction industries were still gleaning the depth and rate of the drop in engineering construction. He said the MBA’s forecasts predicted a 9.9% drop this year and a 20% drop over three years.
He said all that was needed was a psychological change among business-holders from cost-cutting to growth, “it’s like animal spirits”.
“The key to the outlook is improving confidence,” he said. “We need to have a switch from cost-cutting mode to growth mode.”
The MBA’s September survey of business confidence, released this week stated: “Business conditions fell in the September quarter, and the best that can be said is that the index appears to be finding a floor.”
Housing Industry Association chief economist Harley Dale said the BIS Shrapel forecasts were “reasonable”.
“Residential construction is not looking like filling the void as much as we’d like it to do. It’s a recovery that is taking time to gather breadth.”
He said there was some growth overall, but if NSW and WA figures were excluded here was an insignificant 1% recovery elsewhere.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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