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

Lowe Living launches Jardin House in Camberwell

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

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

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The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

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The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

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Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

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Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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Property is a national pastime and so often we see investors, buyers and property enthusiasts out on the road at open homes and auctions.
We also find that even on holiday or generally out and about there's a lot of property observing happening.
For this reason, Property Observer has brought in our very own <a target="_blank" href="https://twitter.com/search?src=typd&amp;q=%23propertyobserving">#propertyobserving hashtag</a>, which you are welcome to tweet yourself when you see or hear something interesting about property.
Or you can use it to see what our journalists and readers are up to themselves.You can follow our <a target="_blank" href="https://twitter.com/search?q=%23propertyobserving&amp;src=hash">tweets from our journalists here</a>.
You can also follow us on Twitter via <a target="_blank" href="https://twitter.com/propertyobs">@propertyobs</a> for the quickest and most regular updates of our news, as well as retweets of interest property tidbits that we find.
<a href="https://twitter.com/search?src=typd&amp;q=%23propertyobserving" target="_blank"><img src="/images/stories/2013/09/10/hashag-sept-10.jpg" width="470" height="325" alt="hashag-sept-10"></a>
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Hashtag of the day: #PropertyObserving

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A five-bedroom Edwardian style family home in Canterbury is reportedly this week's most expensive sale, selling prior to auction for $3.4 million, according to RP Data.
Located at 51 Wattle Valley Road, the circa-1900 property has been recently renovated but retains period features including high ceilings and a leadlight.
The home was scheduled to go under the hammer on September 21 with a quoted priced of $3.25 million to $3.5 million.
After spending on a week on the market, the home was snapped up.
“It’s a fabulously presented home in a fabulous location,” says listing agent Stan Katz of <a href="https://www.bekdonrichards.com.au/listings/sold" target="_blank">Bekdon Richards Hawthorn</a>.
Situated on 1,075 square metres, the property’s kitchen features a caesarstone benchtop and stainless steel miele appliances and overlooks the timber deck and inground pool.
The home was previously listed in September 2005 for $1.55 million through Cantwells Property Group.
The median house price in <a href="/news">Canterbury</a> is $1.7 million, a 5.1% change in the past five years, according to RP Data.
Victoria dominated the most expensive list this week, taking out nine out of the 10 spots.
Most expensive sales:
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/51_wattle_valley_road_canterbury_vic_3126/10259460" target="_blank">51 Wattle Valley Road, Canterbury, VIC, 3126,</a> five-bedroom house, sold prior to auction on September 2 by Bekdon Richards Hawthorn for $3.4 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/32_murray_street_elsternwick_vic_3185/10896414" target="_blank">32 Murray Street, Elsternwick, VIC, 3185,</a> four-bedroom house, sold at auction on September 8 by Biggin &amp; Scott Elsternwick for $3.195 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/22_seaforth_crescent_seaforth_nsw_2092/6144051" target="_blank">22 Seaforth Crescent, Seaforth, NSW, 2092,</a> four-bedroom house, sold on September 4 by Lionel Busquets Prestige - Seaforth for $2.825 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/19_crest_avenue_balwyn_vic_3103/9556633" target="_blank">19 Crest Avenue, Balwyn, VIC, 3103,</a> five-bedroom house, sold at auction on September 7 by Marshall White Real Estate Hawthorn for $2.825 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/88_manning_road_malvern_east_vic_3145/11594237" target="_blank">88 Manning Road, Malvern East, VIC, 3145,</a> five-bedroom house, sold prior to auction on September 7 by Marshall White Real Estate Albert Park for $2.53 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/18_woodside_crescent_toorak_vic_3142/13593843" target="_blank">18 Woodside Crescent, Toorak, VIC, 3142,</a> four-bedroom house, sold prior to auction on September 7 by Kay &amp; Burton Real Estate for $2.36 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/7_chelsea_street_brighton_vic_3186/10007010" target="_blank">7 Chelsea Street, Brighton, VIC, 3186,</a> three-bedroom house, sold at auction on September 8 by Biggin &amp; Scott Brighton for $2.285 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/1_landale_road_toorak_vic_3142/13584027" target="_blank">1 Landale Road, Toorak, VIC, 3142,</a> three-bedroom house, sold at auction on September 7 by Marshall White Real Estate Armadale for $2.215 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/25_service_street_hampton_vic_3188/11165742" target="_blank">25 Service Street, Hampton, VIC, 3188,</a> five-bedroom house, sold prior to auction on September 7 by Buxton Sandringham for $2.1 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/5_kilrush_street_brighton_vic_3186/10014002" target="_blank">5 Kilrush Street, Brighton, VIC, 3186,</a> four-bedroom house, sold at auction on September 7 by Nick Johnstone Real Estate Brighton for $2.09 million
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Renovated Edwardian-style Canterbury home most expensive sale: RP Data

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A one-bedroom unit in Dallas was the weekend’s most affordable auction sale in Victoria, according to Australian Property Monitors.
Located at <a href="https://www.realestate.com.au/property-unit-vic-dallas-114523003" target="_blank">5/18 King Street</a>, the unit sold for $140,500 through Barry Plant Glenroy.
Listing agent Chris Vallis told Property Observer that about 20 people attended the auction, with three registered bidders but “two genuine bidders”.
Vallis added that the market in Dallas has picked up over the last six to eight weeks due to the lower interest rates. 
“About 90% of the market has realised that the prices of the homes are steady for awhile. If you don't get in while interest rates are low, you’re looking at quite a different price,” he said.
He also noted that both first-home buyers and investors are purchasing properties in Dallas at the moment.
According to the <a href="/news">latest RP Data report</a>, the median asking rent for units in <a target="_blank" href="/news">Dallas </a>is $293 per week.
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Dallas cheapie sells for $140,500

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Orchard Piper’s $23 million Davis Avenue development in South Yarra has secured two significant sales, totaling $7.2 million. 
A three-bedroom half floor penthouse sold for $3.8 million and a four-bedroom apartment sold for $3.4 million through Richard Mackinnon and Marcus Chiminello of Marshall and White.
Located at 55 Davis Avenue, the Jolson designed complex with Eckersley-designed gardens features eight apartments and two half-floor penthouses.
Mackinnon says Davis Avenue has attracted downsizers that are young at heart and want to be in a vibrant location.
Three apartments remain, including a two-bedroom, three-bedroom and a half floor penthouse.
Remaining apartments range in size from 120 square metres to 234 square metres internally and are priced from $1.49 million to $3.995 million.
The 533-square-metre site previously housed a double-fronted Victorian house owned by psychiatrist Tony Miach.
The unrenovated brick home sold under the hammer for $1.5 million in August 2004.
Davis Avenue has an expected completion date of mid-2014.
The median apartment price in <a target="_blank" href="/news">South Yarra</a> is $541,000, a 14.1% change in the past five years, according to RP Data.
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Downsizers splash $7.2 million for two luxury Davis Avenue, South Yarra apartments

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Canberra house prices have hit an all-time high according to Australian Property Monitors.

I'd be very wary about buying property there, however, because as has been flagged for the last couple of months the public sector is likely to shed a significant number of jobs in the city and thus demand must surely fall.
There has also been talk of a glut of apartments coming online in the city, which, if true (I haven't visited since 2011 myself - I've done the tower thingo and cycled round Lake Burley Griffin) may kill growth in that sector.
Canberra is only Australia's eighth largest city by population at around 370,000, so if thousand of jobs do unfortunately go, then the housing market will doubtless be impacted.
Nevertheless, Canberra's recovery to all-time high prices is another kick in the teeth for the property "bull trap" theory, which suggested in 2012 that those buying property on the back of dwelling price rises over the past 18 months would not see them recover previous highs.
The bull trap is traditionally a term used in the equities markets and is defined as a false signal which indicates that a declining trend has reversed and is heading upwards when, in fact, the security is set to continue its previous decline.
The bull trap causes some investors to buy into the stock which then resumes its previous decline, thus "trapping" the investor who has been suckered.
We saw two classic bull traps in the Aussie share markets through 2008:
<img height="277" width="400" src="https://1.bp.blogspot.com/-DSrjLufhZSU/UT097IOW60I/AAAAAAAAIyU/1H32lc1_1ps/s400/Bull+Traps.png" 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: ASX
Prices in Sydney's broad middle market, particularly in the apartment market, are already miles above previous peaks and have been for many months.
The wider city market in Sydney has increased in median dwelling price by more than 10% since its trough in H2, 2012.
I've continued to be bullish on Sydney dwelling prices since around 2007, and given the current low interest rate environment, it's no surprise at all to see prices up by more than 6% quarter on quarter, and Sydney's incredibly strong uptrend looks likely to continue.
<a imageanchor="1" href="https://4.bp.blogspot.com/-CM_dltWRBm8/UijGMSlERcI/AAAAAAAAKKw/dDlv7fjfAYc/s1600/RPD.jpg" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img height="182" width="400" src="https://4.bp.blogspot.com/-CM_dltWRBm8/UijGMSlERcI/AAAAAAAAKKw/dDlv7fjfAYc/s400/RPD.jpg" border="0" 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;"></a>
Source: RP Data
There was no bull trap in Sydney, because prices have vaulted way past previous peaks.
In Perth, prices have also increased by more than 10% since their trough and have recaptured all-time highs there too, albeit only just at this point in time.
Prices are up by close to 3% in Perth in the last quarter but there has been some talk of those pesky ubiquitous headwinds and gains slowing as the mining sector rebalances from construction to production.
Watch this space.
Melbourne continues to confound the sceptics (including myself) with dwelling prices up an astounding 6%+ quarter on quarter there too.
The RBA will find it very hard to cut rates if this rate of appreciation continues in the two major capitals.
With luck it won't happen, for such rapid gains are neither sustainable nor desirable.
Melbourne still has a little way to go if it is to recapture its previous peaks. Mind you, if its current outrageous rate of progress continues, it will be there or thereabouts in just over a month.
The Brisbane recovery has been slow to date, with prices up a little over 3% since their trough, and prices still a long way below their previous peak, around 9% or so down.
Brisbane's recovery has had a few false starts, although there has been talk on the ground of some response to stimulatory monetary policy. Strong price gains have yet to be seen, though.
Therefore, Brisbane is also one for the not sure yet basket.
In Adelaide, prices have barely moved a muscle in 12 months despite record low interest rates, and prices are still around 5% below previous peaks.
Adelaide: bull trap alert.
If interest rates really are close to the bottom of the cycle (which is how the futures markets have interpreted the RBA's amended wording in its Statement of Monetary Policy and its dropping of the specific reference to easing bias - for mine, I remain far from convinced) then Adelaide prices could get clobbered as the cost of capital reverts upwards.
There have been a few lame and half-hearted attempts to talk up the Hobart housing market, but with the population growth of Tasmania considerably flatter than the Bass Strait, there may be yet further choppy waters ahead for the housing market.
<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>' was released on 1 September 2013.
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Sydney all-clear for "bull traps", but Adelaide investors should be wary: Pete Wargent

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In keeping with the media’s habit of asking dumb questions and coming up with dumber answers, the (mis)information channels are alive with speculation about what the election result means for real estate. 
   The short answer is that the election will have no direct impact on property markets. Indirectly, the election of a new government will tend to be positive, because an emphatic change of government usually boosts public sentiment.   The reality is, though, that real estate markets were already rising before the weekend poll and the election outcome won’t change that.   This week’s new data on housing finance helps to illustrate the point. The figures from the Australian Bureau of Statistics show that lending for residential real estate purchases rose, again, in July. No surprises there – housing finance has been climbing month by month since late last year.   The value and the number of loan commitments to buy dwellings have been steadily rising since the last trough in December 2012. The number of loans for owner-occupier housing has increased from around 44,000 last December to above 52,000 in July.   The figures show that investors now comprise about 36% of the buying market. That’s noteworthy for two reasons: one, a symptom of rising markets is greater activity from investors, who usually make up about 30% of buyers; and two, despite their rising prominence, investors continue to be a minority in the market.   The major forces in residential real estate include first-time buyers (currently around 14% of the market) and investors (about 36%). The most important component is the third force, which comprises the remaining 50%. These are the next-time buyers – i.e. home buyers other than first-home buyers.   They’re the people who drive real estate markets and cause prices to rise over time. So those who stridently claim that grants to first-home buyers cause prices to rise or that negative gearing tax benefits are to blame because they help investors, are well wide of the mark.   Markets are recovering and price growth is back because next-time buyers are active again and investors, who collectively are followers not leaders, are getting busy as well.   Consumers have been encouraged by improving affordability, thanks to higher incomes, lower interest rates and the two years of price decline that preceded the recent recovery. Housing affordability is at its best in 10 years, according to latest Housing Affordability Report from AdelaideBank and the Real Estate Institute of Australia. It says that the last time affordability was this good was in the June quarter of 2003.   All of this was happening before the federal election and occurred despite the widely-held view that an election causes stagnation. People who run bad businesses or struggle to make investment decisions have used the election as a scapegoat. They’re deluding themselves.   We’re in a growth market and have been since late last year. The election result changes little.   Now that the distraction is out of the way, let’s just get on with it. We have a growing economy, low unemployment and attractive interest rates.   You’ve run out of excuses, people.

<hr>
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact him at <a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a> or <a target="_blank" href="https://twitter.com/hotspotting">twitter.com/hotspotting</a>.
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Now that the election's over there are no more excuses: Terry Ryder

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Global patterns are shifting in real estate. It’s something I’ve talked about for some years now, but in the world of real estate, you gradually come to realise that people generally form their own beliefs and stick with them until they see figures which might change their otherwise held views.
Capital is flowing around the world more quickly than ever before, and with stock markets remaining volatile, more of that capital is finding its way into real estate in prime global cities.
However, for many real estate markets, there will only be misery ahead, for a wide range of reasons. Australia, for example, has an ageing population, a declining employment participation rate and seems very likely to see a steadily falling rate of home ownership.
Aussies are changing jobs and careers more quickly than ever before, and thus there may be a diminished appeal in buying a home (with stamp duty and other transaction costs to pay) only for it to be sold within 36 months with yet more fees to pay.
It’s possible that we may see an increasing trend of younger Australians renting where they live, but owning an investment property as a foothold on the property ladder.
Aussie underperformers
When I started writing my first book back in 2010, I underscored the reasons why I felt that of all the Australian capital cities, with the possible exception of Hobart, the city I would be least inclined to buy real estate in would be Adelaide.
The South Australian capital has far weaker population growth than elsewhere (South Australia’s population increased by just 15,600 heads in the year to December 2012, while the states comprising the four major capitals saw increases of 83,000-99,500 persons respectively) and given the supply/demand dynamic I couldn’t see any valid reason why property prices would rise faster than household incomes in Adelaide. And I still can’t.
Although some have tipped Adelaide as a hotspot for more than half a decade, prices have flatly refused to budge. Sure, they probably will inch up while interest rates remain at the lowest level in a generation (however long that proves to be), but my question is: what happens when lending rates begin to revert upwards? It surely seems likely than any uptrend would rapidly be reversed, or at least, stymied?
I feel the same about most regional markets – their day in the sun has come and gone with the deregulation of lending conditions and an unprecedented increase in household debt in the period broadly from 1990 to 2005. Since that time, household debt levels have levelled off and correspondingly so have most regional property prices.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="wargent_sept_20_two" height="359" width="400" src="/images/stories/2013/09/20/wargent_sept_20_two.gif">
My personal opinion is that the only ways property investors are likely to outperform in the future is if they (a) can find a short-term hotspot (or perhaps time an investment in a mining town skilfully), or (b) if they follow the wave of speculative capital which is heading to the inner suburbs of the major capital cities.
I grew up in England and have watched prices in London’s favoured suburbs continue to increase at a dizzying rate for two more than decades with scant regard for the state of the economy or almost any other fundamental metrics which you might care to mention.
It’s true that the UK has few barriers to inflows of international capital. In theory, Australia restricts foreign ownership of established residential stock, but plenty have suggested that the rules are being easily circumnavigated through the use of friends or family members. The absolute level of Asian capital flowing in to Australia is certainly a point for debate, but where it is happening I’d suggest that the likely destination of funds is the major capitals, and potentially some other key coastal Queensland destinations.
Is this actually unfolding?
Take a glance at property prices across Australia – is my theory starting to play out?
Certainly, prices in some capital cities have stalled badly – including, notably, Hobart and Adelaide. Canberra prices may be back at record highs, but the city faces falling demand as public sector jobs are cut. And in aggregate at least, regional property prices have not shifted for years now. Brisbane has had its confidence knocked more than once, but personally I believe the Queensland capital has better days ahead (a topic for another day).
Melbourne, on the other hand, has been a staggering outperformer. I, for one, have been constantly amazed by the market’s resilience after the tremendous boom in prices since seen from around 2006 to 2011, with median dwelling prices moving more than 50% higher at well above $600,000 today.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="wargent_sept_20_three" height="319" width="400" src="/images/stories/2013/09/20/wargent_sept_20_three.gif">
I note that Australian Finance Group reported this month that 49.5% of mortgages sold in NSW were for investor loans, the highest level ever recorded in any Australian state.
Investors tend to buy and hold real estate, which clogs up the established market and ultimately damages affordability – correspondingly I think inner Sydney remains set for a period of outperformance.
The global shift: following the smart money?
Real estate funds have tended to shy away from residential property. Yields are typically low as compared to industrial/commercial/retail stock, and superior fund returns can be tough to achieve, involving detailed research and frequently an ability to add value across a large portfolio.
Institutional investors have recognised the trend towards high net-worth individuals parking capital in prime location real estate, and some new residential funds have sprung up in an attempt to capitalise on the trend, such as the Coral Prime Portfolio Fund, which notes:
“Very few cities across the world can support a prime or super-prime residential market, namely those with the leading financial districts and world renowned cultural reputations."
Where are the prime global cities?
Leading Global Real Estate consultants Knight Frank prepare a <a target="_blank" href="https://my.knightfrank.com/research-reports/prime-global-cities-index.aspx">Prime Global Cities Index</a> which covers 28 cities that it believes can support prime real estate markets. 10 of its 28 cities are located in the Asia Pacific region in cities such as Singapore and Hong Kong, but to date only one of its 28 cities is located in Australasia, that being Sydney. There might be an argument to say that with its even faster rate of population growth, Melbourne could be on an equivalent level to Sydney today.
Perhaps unsurprisingly, the Prime Global Cities Index performance has been massively hindered of late by its component European cities, the five worst performers all being European capitals (Madrid, Geneva, Rome, Paris, Zurich) - indeed seven of the worst eight performers are located in Europe - while the top of the index is powering ahead with the top 10 performers containing no fewer than five entrants from the Asia Pacific region.
Despite debt crises in countries such as Spain and Italy, in its Q2 2013 Prime Global Cities Index report, Knight Frank notes that prices in the luxury property market across its 28 cities are 27% higher than they were during the financial crisis lows of 2009. Notably, Knight Frank highlights that European markets appear to be through the worst  of their problems, with losses now slowing up.
It's also interesting to note the level of regulatory interference in prime real estate markets. Some Asian markets such as Jakarta and Tokyo have seen prices rocketing, and are looking to restrict foreign ownership in order to temper gains. Meanwhile, struggling European cities have looked towards "golden visas" to attract non-EU investors and prop up prices. So, if you ever thought real estate markets will be left to find their own level without interference...think again!
Two speed markets
Coral notes that Britain has now reached the point that many of us have predicted for years – it has a dramatically two-speed market, comprising prime location London and ‘the rest’:
“Prime Central London has become detached not only from residential prices in the UK, but also from the rest of London. This phenomenon is set to continue with limited stock and rising international demand. A challenged national economy and a weaker currency add fuel. Other international prime cities benefit from similar factors.”
It’s been my position that while prices will naturally ebb and flow, I can’t envisage how Sydney land prices will become cheap while we have domestic policies so heavily-focussed on a massively booming population in only a handful of city locations. Sydney’s population is forecast to grow to a jaw-dropping 7 million over the next few decades, and while we can build upwards, it's difficult to see how the popular suburbs will cope with such a booming level of population growth.
I’m not simply “bullish on housing” as some have suggested. Australian households have already undertaken the great leveraging up and dwelling prices in most locations appear likely to underperform quite badly as this decade unfolds. But I feel that Sydney’s inner suburbs are becoming increasingly heavily skewed towards investor capital and this will push prices up sharply in that sector over the coming decades.

<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
 
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 The shifting sands of the global real estate market: Pete Wargent

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The debate over the supply of affordable housing and the policies surrounding the framework is a topic that rightly inspires heated emotions – particularly in respect of the lead up we had to Saturday’s federal election and the thundering silence from either major political party, outside of a commitment to keep rates low and job security high.
However, what we really lack in Australia is a realistic vision of how our housing market should appear.
There are too many conflicting voices smothering the debate – from an ingrained cultural mindset looking to profit from rising values in the established sector, hoping to outpace inflation and enable retirement on a pot of property gold, to consumer organisations struggling to address the growing need of citizens requiring public housing or rental assistance.
Obviously vested interests across the real estate and finance industry as a whole, mitigates the commentary somewhat, concluding - based on a narrow contextual view of low interest rates alone - that affordability has in no way worsened, but rather improved – whilst at the same time applauding the recent recovery in prices.
Sydney, in particular is outperforming other states, and whilst there are differences to the macro back drop compared to 2007, it’s bounded into spring as the best (and consequently most expensive) performing capital city in Australia, with clearance rates (the curve of which prices typically follow) mirroring boom peaks, and AFG (Australia’s largest mortgage broker) reporting an 49.5% unprecedented level of home loans written for investors coupled with the comment:
“This is the highest level of investor activity the company has ever recorded for any state.”
RP Data have Sydney prices up +5.4% for the quarter, and although the information is subject to revision, it leads the annual growth rate to its fastest pace since 2010.
So where do we stand on issues of affordability?
I’ve written previously on the <a href="https://www.propertyobserver.com.au/auctions/heat-of-the-moment-the-mentality-of-auction-bidding-fervour-catherine-cashmore/2013090164693" target="_blank">various war stories witnessed on the ground</a>, as auction results exceed reserves by some 10/15% – and on occasion, reach a level, which defies all rationality.
In this respect, any benefit derived from lower interest rates is somewhat offset by the inflationary pressure placed on prices.
Indeed - you’d be hard pushed to find a first-home buyer shopping in our largest capital cities, who has not been outbid by an investor through the course of this year. Investors understandably have a stronger financial arm.
Albeit - at least for existing owners - the relative cost of servicing a mortgage has reduced considerably.
This influence is evident in the latest “Housing Occupancy and Costs” survey from the Australian Bureau of Statistics, which calculates affordability to be at the same level it was some 17/18 years ago from the date of which the survey relates.
According to the findings, in 2011-2012 owners with a mortgage and private renters spent roughly the same proportion of income servicing the repayments, as they did back in 1994-1995, despite the fact that the capital price of housing has more than tripled over the corresponding period and the subsequent duration of mortgages lengthened.
Those paying down a home loan were assessed to spend 18% of their income servicing the payments, with private renters just a fraction above this figure, at 20% of income.
It is this, and other indexes such as the Adelaide Bank/REIA housing affordability report, released last week, claiming affordability is at its “best level since 2003,” that encourages commentators to stamp and seal further discussion of the issue, with a dismissive waft of the hand to would be buyers, accusing them of being both spoilt and picky in their expectations, if complaints about the cost of accommodation are voiced, or any suggest that first-home buyers are locked out.
Neither is there any comment on the inevitable future consequence of rate rises.
However, any release of statistical data, always needs to be assessed in context.  A little like median prices, which bear scant relation to individual house prices, and often require an additional understanding of distortions such as stock on market, the shadow effect of buyer grants and incentives, and a full appreciation of how the data is stratified prior to making a surface assumption of the material at hand.
As ABC’s online business reporter <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-08-30/janda-home-ownership-and-future-aged-underclass/4924862" target="_blank">Michael Janda</a> points out in his own balanced assessment of the ABS release, there are some distinctive trends worthy of appreciation prior to drawing a conclusion that housing has never been more affordable.
Firstly, home ownership is falling.  In 1994-1995, 71% of Australian’s owned – or were servicing a mortgage – and the proportion of households renting - 18%.
By 2011-2012 the ownership rate had dropped to 67% with a relatively steep rise in the number renting at 25%.
Families with children (one of our biggest demographic of buyers) in particular seem to be suffering.  The decrease of ownership for this demographic has fallen over the latest census period from 79.5% in 2006 to 77.2% in 2011.
There are a number of factors that have played into the percentile changes. Firstly on issues of supply - restrictive growth boundaries, hefty development overlays in new estates, along with a woeful lack of planning for population growth and the consequential reluctance of home buyers to move outwards, has produced a downward slide in the number of new dwellings completed per annum, and further inflated the capital price of the stock marketed.
For many first home buyers, the choice, price and location of accommodation offered in these areas, where commute times are inflated as infrastructure development fails to keep pace - gives no incentive to buy in outside of various government grants - and based on historical data, it’s fair to conclude if they do purchase a house and land package, the growth of the underlying asset base of their investment in the new estates, will unlikely improve much past the rate of inflation – hamstringing the ability to progress or upgrade when desired.
When older generations purchased – the outer suburbs were some 10/15 kilometres from established job and commercial hubs, not the 40 plus kilometres we see today, and financial deregulation, the emergence of duel income households, and the very real realities of our golden decades of growth, assisted their steps up the property tree to the current environment in which baby boomers hold roughly half of Australia’s housing stock – a mix of owner-occupied dwellings and investments – many relying on the value of their properties to fund retirement.
Another direct consequence of our now inflated values, buoyed further by restrictive supply, and policies such as negative gearing - which encourage investors to speculate in the established arena, thereby inflating the value of second hand stock - is a national rise of 49.2% in yields over the five year census period (not accounting subsequent increases) – which outpaced growth in home loan repayments for the same duration.
Other trends indicating affordability pressures – (although agreed cultural tendencies also play a hand) – is between the 2006 census and the 2011 census, the single-person household was no longer the fastest rising demographic.
In the 2011 results, lone-person households dropped from 24.4% to 24.3% - this was the first decrease in this statistic since the census was initially conducted in 1911 – over 100 years – and therefore requires attention.
Against this group households (those sharing accommodation) jumped from 3.9% to 4.1%.
Crowded houses – with three or more families sharing accommodation, also rose nationally by 64% to 48,499, and other data from the ABS shows that over 40% of renter households receive some form of housing assistance - once again emphasising the growing crisis in this sector of our community.
With the decreasing proportion of first-home buyers as a share of the active buying market, commitments of which are down 10.6% year on year, along with reports that significant numbers are now initially entering into their first purchase at the age of <a href="https://www.news.com.au/realestate/firsthome-buyers-in-their-forties-are-a-growing-breed/story-fncq3era-1226708852405">post 40 years</a>, you have to question the stubborn refusal from market commentators to recognise we have a problem worthy of attention.
The AFG data I cited above also notes the drop in the proportion of first time buyers, and is no doubt mirrored by other lenders.
According to their figures, the share is down to 11.3% nationally from 15.9% at the same time last year – and although various state grants and incentives play into the peaks and troughs, the percentage drop in New South Wales is appalling – down from 13.1% in August 2012, to 4.3% as recorded last month.
Another mistake made when assessing affordability, is to concentrate only on the principle cost of the home and the percentage of income needed to service the repayments.
However I sometimes think a better assessment would be to take into account what’s left over post housing costs, and whether it’s enough to afford the actual non consumer price index cost of living.
It’s not only commodity prices that have spiked, for example gas and electricity, but an overload of other essentials such as insurance premiums, housing maintenance costs or owner corporation fees, school fees and child care for working mothers, medical and dental expenses and so forth – transport costs are substantial for those commuting daily as are the needs of a modern generation who enter commission/performance based jobs which expect them to have 24 hour access to mobile phones and email.
A privilege I have in my job, is meeting, assisting and talking to current first-home buyers (usually couples – singles are all but priced out) looking to get a foot hold. It’s a pleasurable aspect of my work due to the excitement expressed when a successful purchase is achieved.
Albeit, the conversations I have with both first home buyers and renters, keep my feet firmly on the ground in relation to the difficulties achieving the oft quoted dream of ownership – it is also what inflames my anger when I read reports such as that offered by <a href="/news">Terry Ryder</a> last week – questioning so called false perceptions that Australia’s housing is unaffordable.
I suspect we see things from a different frame of reference.
For this reason, and others, I attended the 122nd annual Henry George commemorative dinner at the Royal Society of Victoria, Melbourne – to listen to respected economist Saul Eslake give a excellently orated speech, entitled <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">“50 Years of Housing Policy Failure.”</a>
As well as his role as chief economist for Bank of America – Merrill Lynch Australia, Eslake is also deputy chair for the National Housing Supply Council – set up by the Australian government to “improve housing supply and affordability” for both home buyers and renters.
He is therefore suitably qualified to provide a detailed assessment the data which is all but ignored by those mentioned above.
As Eslake comments:
“..the decline in home ownership has been even more pronounced when one ‘looks through’ the effects of the ageing of the population, which (among other things) means that an increasing proportion of the population is within age groups where home ownership rates are always (and for obvious reasons) higher than in younger age cohorts.”
The transcript and slides of Eslake’s speech can be found <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">here</a> - an absolute must read.
Our affordability issues cannot be solved over night.  The distortions in the market need to be slowly unpicked and the various suggestions by Eslake regarding supply and tax reform, implemented.
However, as <a href="https://www.propertyobserver.com.au/economy/are-we-in-a-dwelling-boom-a-rally-bubble-or-a-recovery-inside-our-bubble-mentality-catherine-cashmore/2013081864317" target="_blank">I’ve written previously</a> – the reason we have asset bubbles is a direct consequence of our current debt-based monetary system, and in this respect, I hold the opinion that you cannot tackle the health of the housing market without also addressing the disease that funds it.
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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Is Australia’s housing market unaffordable? Catherine Cashmore

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With values once again rising across most capital cities, RP Data has looked at the capital city locations within 10 kilometres of the city centre where you can still purchase relatively affordable homes.
Many of us want to live close to the city centre or near the water, the sad fact of the matter is that these homes are in short supply and tend to cost a lot. With capital city home values once again starting to climb, we look at the areas where you can buy at a relatively affordable price point compared with many other inner city suburbs.
As you will note, these suburbs are not the most prestigious or highly sought after however, they do enjoy close proximity to the city centre. They also often have high levels of nearby amenity and in some instances are extremely well catered to by local infrastructure.
It is also interesting to note that although houses may be too expensive for price sensitive buyers, a unit can offer the same high level of amenity and in most instances at a significantly lower buy in price than purchasing a house.
Looking across the capital cities, we can see some divergences on a city-to-city basis as well as between houses and units when looking at the suburbs with the lowest median value within 10 kilometres of the CBD.
Sydney
St Peters is the most affordable suburb for houses within a 10km radius of the Sydney CBD. Located 5.7km from the city centre it has a median value of $645,681. For units, values are much lower with Darlington the most affordable with a median value of $292,271. There are 99 Sydney suburbs within a 10km radius of Sydney with a lower median unit value that the St Peters median house value. 
<img src="/images/stories/2013/09/09/nsw-ept-9.gif" width="470" height="104" alt="nsw-ept-9">
Melbourne
Bellfield is Melbourne’s most affordable suburb for houses within a 10km radius of the CBD with a median value of $493,685. Carlton has the city’s most affordable units within 10km of the city centre with a median value of $232,453, keeping in mind most units in the suburb are student accommodation. 49 suburbs within 10km of the Melbourne city centre have a lower median unit value than that of Bellfield’s median house value. <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=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" target="_blank"></a>
<img src="/images/stories/2013/09/09/vic-sept-9.gif" width="470" height="78" alt="vic-sept-9">
Brisbane
Brisbane’s most affordable suburb within 10km of the CBD is Rocklea, it has a current median house value of $298,796. Chelmer has the most affordable units within 10km of the city centre at $306,415. Rocklea house values are a bit of an outlier because it was severely inundated by floods, if we look at house values in Chermside West ($418,735), 68 suburbs within 10km of the city have a lower median unit value than median house values in Chermside West. <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=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" target="_blank"></a>
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Adelaide
Dry Creek which is located right on the edge of a 10km radius of Adelaide has the lowest median house value within this region at $244,971. Ottoway has the lowest median unit value within a 10km radius of the city centre at $204,091. There are 18 Adelaide suburbs within 10km of the city centre with a lower median unit value than Dry Creek’s median house value. <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=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" target="_blank"></a>
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Perth
Cannington has Perth’s lowest median house value within a 10km radius of the CBD at $413,925. There are 20 suburbs within the same region that have a median unit value lower than this figure, the lowest of which is found in Glendalough ($324,219). <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=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" target="_blank"></a>
<img src="/images/stories/2013/09/09/wa-sept-9.gif" width="470" height="61" alt="wa-sept-9">
Hobart
Hobart’s most affordable suburb for houses within 10km of the city centre is Clarendon Vale with a median value of $151,089. For units, the most affordable suburb within the region is Glenorchy with a median value of $190,387. Hobart is the only capital city in which the most affordable suburbs for units within 10km of the city centre is more expensive than the most affordable suburb for houses. <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=5c591a8916642e73a5fbb79006cdd00de47653d7b07e3eea333fae253ede94c147051814a4736e0ae9da76077e9c069f48ed83759fa5d797000a351a204a9b812a3f8dfcae176c34f99fdc21b8a5212108e73015be209cc5dfdbfdea89c7158bd8cd141b6372558efbe59e605890a80a77dc93227028d3b59ecfbc151aa595a9e7a6a8b733640ae6a6eac08868e8ae6ae273e809d7dc14b0e00536a50f09c669498169888aecf2baaaa32e570b2d8711daf9cbe3753ae9d65c357cfab2db00b5806fd7c537821a0e50e7dd71a4bf3ae6a6a4f9a16088765f05941c153402332b112dee801c3372ccfeb04a40c215dfeac6a8d22c94a381c209a33d1817716a66" target="_blank"></a>
<img src="/images/stories/2013/09/09/tas-sept-9.gif" width="470" height="75" alt="tas-sept-9">
Darwin
Farrar is the most affordable suburb in which to purchase a house within 10km of the Darwin CBD with a median value of $514,344. The most affordable suburb for units is Alawa with a median value of $331,650. There are 16 Darwin suburbs within 10km of the CBD which have a lower median value for units than Farrar’s median house value. <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=5c591a8916642e73a5fbb79006cdd00de47653d7b07e3eea333fae253ede94c147051814a4736e0ae9da76077e9c069f48ed83759fa5d797000a351a204a9b812a3f8dfcae176c34f99fdc21b8a5212108e73015be209cc5dfdbfdea89c7158bd8cd141b6372558efbe59e605890a80a77dc93227028d3b59ecfbc151aa595a9e7a6a8b733640ae6cb4c9a89a275f28ae413f1bbb3dcaf6838fcb3a09a04a12035f3ced7e19f55db7fd3eaf21958af95b3fed82481e9ae5164d6831956ae3bbab82a5cc53ceef264b5241723ca80dd231df0dc65fdb3bf9721f5f9cb366b23cc3fbeffa436129c3f79cf7cc8a62155c6bd4f255d9c0c22ed2c3dd82a2a0559ae" target="_blank"></a>
<img src="/images/stories/2013/09/09/nt-sept-9.gif" width="470" height="79" alt="nt-sept-9">
Canberra
The most affordable suburb for houses within a 10km radius of the Canberra CBD is Crace with a median value of $372,672. There are 15 suburbs within a 10km radius of the Canberra CBD that have a median unit value lower than the median house value of Crace, the most affordable of which in Hughes ($209,269). <a href="https://pages.e.rpdata.com/Redirect.aspx?EQ=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" target="_blank"></a>
<img src="/images/stories/2013/09/09/act-sept-9.gif" width="470" height="77" alt="act-sept-9">
As you’d expect, house values in the inner city areas are quite high. This is due to strong demand for houses in these regions and the fact that areas closer to the city typically have the best amenity and superior infrastructure. Inner city units offer the same benefits at typically a much lower price point, as a result it is no wonder the popularity of inner city units continues to grow.
 
<hr>
 Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
Image courtesy of Michael Renner/flickr.
 
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Affordable opportunities 10 kilometres from capital cities' CBDs: Cameron Kusher

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Despite some cooling in commodity prices and job losses, Australia’s mining party is still in full swing.
For property investors, hearing about a new mining project really gets the corks popping because a new mine can mean demand for accommodation skyrockets, rents can go through the roof and property values can start to look very peachy indeed.
But a new mine announcement does not always mean a new mine will be built. And a new mine coming to town does not always means its workers will look for local housing.
Here are five tips to making the right move when investing in mining towns.
Wait for the green light. In the mining industry, the approval process for building a new mine is long and complicated. The time between project announcement and start of construction can be several years.
When you look at the long list of factors in the approval process, it’s obvious how hurdles are hit and plans are scrapped. Competing land use challenges, native title, water supply, fauna and flora impact, land contamination, waste disposal, effects on marine life, and general environmental impact all need to be dealt with. Some issues can take years to resolve, involve masses of government red tape, create conflicts in communities, and sometimes just become too difficult for mining companies to pursue.
Meanwhile, the economic landscape changes around us. In our post-GFC world, there are other complications, too. Some companies are finding it harder to secure funding or to gain final investment approval from their board. Costs can blow out because companies are paying interest on loans for projects that haven’t yet started to make money or there are higher wage costs resulting from a shortage of skilled local labour or trade union demands.
The problems are real. In fact, I’m seeing an emerging trend of mining companies putting ego aside, sharing infrastructure, and doing joint venture agreements on some projects in an attempt to trim costs and make projects more economically viable.
If return on your investment is highly dependent upon specific projects it’s important to wait for that green light.
Do your research. Understand exactly what the mine is and how it will operate.
Look closely at its workforce requirements; How many workers will it need? What roles will they perform? How long will they be in town? Where will they be living – conventional housing or on site in temporary employer-supplied villages? Will the impact on local goods, service, and accommodation be sustainable or short-lived? Will the departure of the construction workforce and the arrival of the (often smaller) mining workforce reduce your rental returns? Is there likely to be a glut of housing once this occurs and high vacancy rates as a result?
Know the mining industry. According to Geoscience Australia, Australia produces significant amounts of 19 different minerals from almost 400 operating mines across the country. Coal and iron ore are Australia’s biggest export commodities, but liquefied natural gas is a major growth market and copper is also significant.
Mining is big business, but commodities are, by nature, volatile and their prices rise and fall for a wide range of reasons. It’s standard practice in the mining industry to recruit workers when prices are high (to maximise the amount of resource they can get out of the ground to sell at high prices) and to lay off large numbers of workers when the price of the commodity falls.
Vacancy rates obviously take their lead from the workforce. These cycles can be deep, bringing high peaks and low troughs.  An astute investor will be aware of these fluctuations and insulate against them by choosing a location that relies on more than a couple of mines so their pool of potential tenants is large and diverse.
Get in on the ground level. The best time to make a move is just prior to the start of mine construction.
Constructing a new mine and associated infrastructure generally needs a mass of skilled workers. There can be processing plants, railways, pipelines and ports to be built and create direct jobs.  Indirect jobs also come in the form of businesses supplying manufacturing components, heavy vehicles and machinery, and shops in town.
If a property investor times it right, they’ll be buying just as those jobs are being advertised and the people are starting to roll into town. Once the mine is built, it’s onto the business of mining, which sees the workforce change and downsize to those mine workers who will extract the coal, iron ore, copper or gas, and transport it away for processing and exporting.
If you’ve bought in, you’ll already know from your research who these people are and where they are coming from. You’ll know that your rental property is a likely candidate for their accommodation and there will be sufficient numbers of potential tenants to generate some competition for housing.
Understand what a ‘high-performing investment property’ means in a mining town.
A high-performing investment property is one that consistently produces above average rental returns and capital growth over the long-term. To attract those two factors, a property needs to be in a place where the tenant pool is significant, the infrastructure is established and of high quality, and the economic outlook is positive, with plenty of growth drivers from a diverse range of industries pushing it along.
A lot of traditional mining towns only exist because of a few local mines and are therefore unlikely to present high-performing investment properties to the market. They don’t have the infrastructure or the diverse economy.
If, however, the mines are already in, or coming to, a town which has a range of other industries, such as tourism, agriculture or education for example, and the infrastructure to support these industries and their workers is in place, then the location will benefit enormously from the addition of mining to the mix—and a property investor is likely to benefit enormously from their investment decision.
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I am very selective about investing in mining towns. There have been many times when I have anticipated a strong growth period for a property market on the back of certain mining projects but held off from purchasing property for clients because of my concerns over things such as mine project approvals and a location’s unhealthy reliance on a single industry.
I favour locations with several mines, 10 or more years of life left in the available resources, additional untapped resources directly in the area providing scope for new mines in future, and a few other sustainable industries supporting the economy.
 
<hr>
 Simon Pressley is Managing Director of <a target="_blank" href="https://www.propertyology.com.au/">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and the 2012 and 2013 REIA / REIQ Buyer’s Agent of the Year.
 
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