Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

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Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

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?

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

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

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First-home buyers will benefit from the high number of properties on the market, according to the Real Estate Institute of Victoria's Robert Larocca.
Larocca notes that the state government's 30% reduction in stamp duty comes into effect in January, which would benefit first-home buyers who purchase property now and settle after the first of the new year. 
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Consistent Victorian property market, with another super Saturday on the way

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The top sale at weekend auctions was a North Bondi penthouse within the former site of Blue Water Grill restaurant.
It sold under the hammer for $4.02 million.
It last sold for $5.75 million in 2006 when bought by the horse breeder Dean Fleming's family. The $1.73 million loss equated to 5% decline annually during its six-year ownership. 
The <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/apartment-bondi-nsw-2026/163214" target="_blank">three-bedroom apartment </a>is one of six in the Ramsgate Avenue block.
The block's last ominous sale was $1,785,000 for a three bedroom 189 square metre apartment that fetched $2.15 million in 2007.
The <a target="_blank" href="/news">North Bondi</a> penthouse offering had about 110 square metres of internal space plus 164 square metres of outdoor decking.
It was listed as now with a family of five, the Flemings are moving to something bigger.
Pre-auction he suggested he was realistic when it came to price with the McGrath agents Di Baker and James Dack giving the price guide as "between $4 million and $6 million".
"That's the market. You've got to meet it," Fleming told Fairfax Media after the weekend auction.
"It's disappointing, but it's time to move on."
A buyer from Melbourne secured the property with just one bid over the telephone.
Sydney recorded a 60.3% weekend clearance rate, according to Australian Property Monitors.
<div class="wysiwyg">
 
In Melbourne there was a clearance rate of 60% compared with 59% last weekend and 51% for the same weekend last year, according to Enzo Raimondo at the Real Estate Institute of Vicoria.
 
 
</div>
 
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jchancellor-FAypfDUnLy

North Bondi wipeout at weekend auction

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The sale of 11 Struan Street, Toorak, has been a long, drawn-out affair for its owner. Earlier in the year the property was sold for $3 million, but the purchaser was unable to settle on the property. So when an offer just above $3 million was put on the table late Friday afternoon the vendors jumped at it and the auction was cancelled.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a target="_blank" rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/11/struan.jpg">
The exact sale price for the <a href="/news">Toorak </a>property (pictured above) has been undisclosed, but RT Edgar agent Anthony Grimwade says it was somewhere between $3 million and $3.1 million.
One property that did go through to auction this weekend was <a target="_blank" href="https://www.realestate.com.au/property-warehouse-vic-fitzroy-111921555">5/108 Moor Street, Fitzroy.</a>
The warehouse apartment had a mixed-use zoning, which made it enticing to both home buyers and those who were looking for a funky warehouse office.
While three bidders entered the fray throughout the auction it was only two who did most of the heavy lifting.
After the half-time break the property was declared on the market at $651,000 and was sold after a flurry of bidding for $684,000.
You can watch the auction highlights <a target="_blank" href="https://www.facebook.com/photo.php?v=307648876014397">on our Facebook page.</a>
There were so many bidders putting up their hands at 4/75 Kirribilli Avenue, <a href="/news">Kirribilli</a> (pictured below), that most people lost count, but let's just say it was more than 10. The extremely scarce piece of real estate had been very well inspected, and more than 1,700 people had viewed the property on realestate.com.au.
<img src="/images/stories/2012/11/kirr.jpg">
The lack of car parking was not a concern for the crowd as the bidding flew past the $500,000 reserve before settling at $529,000.
It maybe a few years before we see another one like this come onto the market.
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Toorak auction tipping competition property sold before auction, and a flurry of bidding in Kirribilli

<html><body>Australian Property Monitors (APM) has released a list of results from 413 auctions in Sydney for the weekend of November 10. The clearance rate was 60.3%. <a target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's 413 Sydney auction results show 60.3% clearance rate

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The NSW O’Farrell government is facing an interesting dilemma – does it borrow and risk losing its precious triple-A credit rating or sell off state assets? I’m sure everyone has mixed feelings about which is the smarter alternative, although I must admit I favour losing the triple-A credit rating for one simple reason: it makes the government leaner and meaner.  Business is run under that economic philosophy, so why not the NSW government?
There is nothing wrong with <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/infrastructure-funding-questions/4295198" title="infrastructure funding questions">infrastructure funding questions</a> given that in previous governments the taxpayer waste defied all logic, e.g. the failed/aborted Rozelle Metro, for which the previous NSW government wasted $500 million and all for no gain. The O’Farrell government has $53 billion earmarked for transport and roads infrastructure and services over the next four years – <a target="_blank" href="https://www.transport.nsw.gov.au/media-releases/rebuilding-nsw-20-year-vision-transport" title="Rebuilding NSW: 20 – year vision.">Rebuilding NSW: 20-year vision.</a>
You may be surprised to learn that on November 19 to 20 the <a target="_blank" href="https://www.expotrade.net.au/events/nsw-major-projects-conference-2012" title="4th Annual NSW Major Projects Conference 2012 ">4th Annual NSW Major Projects Conference 2012</a> is being held, where they will state the obvious. “New South Wales is entering an exciting time of renewal as the challenges to build and exceed beyond its past achievements is reaching critical tipping point. The NSW economy has grown to become the largest and most diverse economy in Australia, contributing one third of the nation’s gross domestic product and is home to 32% of Australia’s population, with even more significant population growth on the near horizon.”
One would be correct in asking why NSW holding is just its fourth annual NSW major projects conference when it should be around the 24th. The simple answer is that due to "no infrastructure" under the previous government, in all probability it was formed from pure desperation to simply get something happening. <a target="_blank" href="https://www.smh.com.au/opinion/politics/city-might-appear-to-be-down-but-it-is-far-from-out-20121107-28y98" title="City might appear to be down, but it is far from out">City might appear to be down, but it is far from out</a>, which takes me to James Packer’s article – <a target="_blank" href="https://www.smh.com.au/nsw/for-the-good-of-sydney-back-this-plan-20121102-28p9t" title="For the good of Sydney, back this plan ">For the good of Sydney, back this plan</a> – a very interesting read, and I back his plan.
The biggest news for the property market this week was <a target="_blank" href="/news" title="Macquarie Group takes Yellow Brick Road into home loans market">Macquarie Group takes Yellow Brick Road into home loans market</a>, which will cause Yellow Brick Road to go  head-to-head with the big four banks. Under the deal, Yellow Brick Road will try to undercut the big banks by offering a 1.15 percentage point discount on all new homes in the first 12 months of the loan. The big four have actively acquired all the second-tier banks to protect their market share, which is approximately 80% of the Australian home loan market. It should also be noted that most of the biggest real estate agencies within Australia bank with Macquarie Bank (us included), so this announcement provides Macquarie Bank with direct access to Australia’s biggest and most successful real estate agencies. I will make a prediction Yellow Brick Road will be the first bank to respond to a rate cut by the Reserve Bank of Australia (RBA).
<img src="/images/stories/2012/11/simeonnov92.jpg">
 
<hr class="system-pagebreak">
 
We predicted last week that the RBA would keep the cash rate at 3.25%, which I believe is directly aimed at what happens in the United States of America following the re-election of Barack Obama –<a target="_blank" href="https://www.smh.com.au/world/us-election/superman-has-just-54-days-to-save-the-world-20121107-28yls" title=" Superman has just 54 days to save the world."> Superman has just 54 days to save the world.</a> The simple reality is that the <a target="_blank" href="https://www.smh.com.au/business/rba-holds-rates-but-with-a-loose-grip-20121106-28w3t" title="RBA holds rates but with a loose grip.">RBA holds rates but with a loose grip.</a> So the stark reality of the decision is quite simple:<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-rates-decision-Glenn-Stevens-commodities-dolla-pd20121106-ZS7EF?opendocument&amp;src=rss" title=" RBA keeps its powder dry."> RBA keeps its powder dry.</a> Congratulations to the ANZ economists, who have correctly called the RBA’s cash rate announcements seven for 10 thus far in 2012.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/11/simeonnov91.gif" title="Click to enlarge"><img src="/images/stories/2012/11/simeonnov91thumb.gif"></a>
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/11/simeonnov9.jpg" title="Click to enlarge"><img src="/images/stories/2012/11/simeonnov9thumb.jpg"></a>
<a target="_blank" href="https://www.smh.com.au/business/building-data-still-gloomy-outlook-brighter-20121107-28x8p" title="Building data still gloomy, outlook brighter ">Building data still gloomy, outlook brighter </a>although it should be noted that construction activity in Australia has now been in contraction for 29 months. If that is not a warning to the Gillard government then nothing is.  When the economic principle of supply v demand is applied, you don’t have to be Einstein to work out which demographic market is going to benefit.  Australia already is recording the highest ever rental markets, which are  being further driven by the Gillard government decision: <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/sydneys-rental-market-feeling-the-sting-of-changes-to-living-away-from-home-allowance-carlie-ziri/2012092556792" title="Sydney executive rentals stung by Living Away from Home Allowance reform.">Sydney executive rentals stung by Living Away from Home Allowance reform.</a> An idiotic decision that punishes business simply because our elected government is marred by reckless spending deficiencies – decisions are made solely on re-election not economic competence.
Fascinating that 12 months ago, <a target="_blank" href="/news">Mosman </a>houses and apartments reached their peak numbers for 2011. The same can’t be said for 2012, with house listings down 32% from 365 days ago. For property voyeurs, this clearly indicates a strong market and it will be interesting to see whether  the house numbers fall below 100. In 2011, Mosman recorded 38 weeks with house volumes below 100, the lowest recording being just 78.
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

Yellow Brick Road likely to be the first to respond to the next RBA rate cut

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Since the GFC excessive debt has been a source of volatility and constraint for various countries, notably the <country-region>US</country-region> and <place>Europe</place>. Initially the focus was on the private sector, more recently the public sector. <place><country-region>Australia</country-region></place> has relatively low public debt, but how does it stack up in terms of total debt? This is particularly relevant in assessing the vulnerability of <country-region>Australia</country-region> should something go wrong, e.g. if <place><country-region>China</country-region></place> collapses and our trends of trade plummeted.
Total debt outstanding
The next table shows total debt outstanding, i.e. public and private, as a percentage of GDP. Quite clearly <place><country-region>Australia</country-region></place> ranks a fair way down the list. As is well known, <place><country-region>Australia</country-region></place>’s level of public debt is very low. Where <country-region><place>Australia</place></country-region> is a bit more vulnerable is in terms of private debt, and this is largely due to a relatively high level of household debt.
Household debt in Australia rose strongly over the 20 years prior to the GFC as interest rates trended down, financial competition led to increased access to debt and relatively stable economic conditions and rising asset prices encouraged households to gear up.
<img src="/images/stories/2012/11/olivernov9.png" width="470">
Debt outstanding, % GDP
<table width="336" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="81">
2012 data
</td>
<td valign="top" width="85">
Public
</td>
<td valign="top" width="85">
Private
</td>
<td valign="top" width="85">
Total
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Netherlands</country-region></place>
</td>
<td valign="top" width="85">
68
</td>
<td valign="top" width="85">
680
</td>
<td valign="top" width="85">
748
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Japan</country-region></place>
</td>
<td valign="top" width="85">
237
</td>
<td valign="top" width="85">
392
</td>
<td valign="top" width="85">
629
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Denmark</country-region></place>
</td>
<td valign="top" width="85">
47
</td>
<td valign="top" width="85">
551
</td>
<td valign="top" width="85">
598
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>UK</country-region></place>
</td>
<td valign="top" width="85">
89
</td>
<td valign="top" width="85">
460
</td>
<td valign="top" width="85">
549
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Belgium</country-region></place>
</td>
<td valign="top" width="85">
99
</td>
<td valign="top" width="85">
390
</td>
<td valign="top" width="85">
489
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>France</country-region></place>
</td>
<td valign="top" width="85">
90
</td>
<td valign="top" width="85">
396
</td>
<td valign="top" width="85">
486
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Spain</country-region></place>
</td>
<td valign="top" width="85">
91
</td>
<td valign="top" width="85">
390
</td>
<td valign="top" width="85">
481
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Sweden</country-region></place>
</td>
<td valign="top" width="85">
37
</td>
<td valign="top" width="85">
420
</td>
<td valign="top" width="85">
457
</td>
</tr>
<tr>
<td valign="top" width="81">
Euro zone
</td>
<td valign="top" width="85">
94
</td>
<td valign="top" width="85">
361
</td>
<td valign="top" width="85">
455
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Portugal</country-region></place>
</td>
<td valign="top" width="85">
119
</td>
<td valign="top" width="85">
294
</td>
<td valign="top" width="85">
413
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Norway</country-region></place>
</td>
<td valign="top" width="85">
50
</td>
<td valign="top" width="85">
341
</td>
<td valign="top" width="85">
391
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Korea</country-region></place>
</td>
<td valign="top" width="85">
34
</td>
<td valign="top" width="85">
354
</td>
<td valign="top" width="85">
388
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Italy</country-region></place>
</td>
<td valign="top" width="85">
126
</td>
<td valign="top" width="85">
258
</td>
<td valign="top" width="85">
384
</td>
</tr>
<tr>
<td valign="top" width="81">
US
</td>
<td valign="top" width="85">
100
</td>
<td valign="top" width="85">
240
</td>
<td valign="top" width="85">
340
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Australia</country-region></place>
</td>
<td valign="top" width="85">
30
</td>
<td valign="top" width="85">
291
</td>
<td valign="top" width="85">
321
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Hungary</country-region></place>
</td>
<td valign="top" width="85">
74
</td>
<td valign="top" width="85">
241
</td>
<td valign="top" width="85">
315
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Germany</country-region></place>
</td>
<td valign="top" width="85">
83
</td>
<td valign="top" width="85">
225
</td>
<td valign="top" width="85">
308
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Canada</country-region></place>
</td>
<td valign="top" width="85">
88
</td>
<td valign="top" width="85">
190
</td>
<td valign="top" width="85">
278
</td>
</tr>
<tr>
<td valign="top" width="81">
<place><country-region>Greece</country-region></place>
</td>
<td valign="top" width="85">
171
</td>
<td valign="top" width="85">
103
</td>
<td valign="top" width="85">
274
</td>
</tr>
</tbody></table>
Source: IMF, Haver Analytics, Ned Davis Research, AMP Capital
The GFC has brought a more cautious attitude to debt on the part of Australians thanks to weaker asset prices, worries that house prices might go the same way as those in the <country-region>US</country-region> and parts of <place>Europe</place> and increased job insecurity, and this has been accentuated by a tightening in lending standards. Nevertheless, debt levels have basically stabilised relative to income in contrast to other countries where they have fallen, although this in large part reflects defaults in the <country-region><place>US</place></country-region>. See the previous chart. What’s more, with soft share markets and house prices and rising incomes in recent years, Australian household balance sheets as measured by net wealth (assets less liabilities) relative to income have deteriorated.
<img src="/images/stories/2012/11/olivernov91.png" width="470">
Source: OECD, RBA, AMP Capital
Similarly, soft asset prices at a time of stable debt levels have seen gearing, as measured by debt to assets, rise.
<img src="/images/stories/2012/11/olivernov92.png" width="470">
Source: OECD, RBA, AMP Capital
Against this several things are worth noting. First, reflecting household caution the household saving rate is now very high in Australia at around 10%, compared with just 3 to 4% in the US. This has been mainly flowing into bank deposits.
<img src="/images/stories/2012/11/olivernov93.png" width="470">
Source: OECD, AMP Capital
 
<hr class="system-pagebreak">
 
Finally, the riskiness of Australian housing loans has been falling. Non-performing loans remain low. Low-doc loans are only around 5% of outstanding housing loans and less than 2% of new approvals. And around 50% of home borrowers are ahead on repayments. And all mortgages are full recourse, meaning Australians cannot simply walk away from their homes if they have negative equity. And there is plenty of scope for the RBA to cut interest rates further.
Foreign liabilities
One area where <place><country-region>Australia</country-region></place> clearly is more vulnerable is in foreign debt. Thanks to a chronic current account deficit ranging between 2% and 6% of GDP – even through the mining boom – <country-region><place>Australia</place></country-region> has remained reliant on foreign capital. As a result net foreign liabilities, which includes debt and equity and is labelled net international investment position in the next chart, is relatively high at 60% of GDP.
<img src="/images/stories/2012/11/olivernov94.png" width="470">
Source: IMF, ABS, AMP Capital
Quite clearly <country-region>Australia</country-region> would be vulnerable should foreign investors change their view of investing in <place><country-region>Australia</country-region></place>. Mind you, this has been a risk since the 1980s!
What’s the risk?
While <place><country-region>Australia</country-region></place>’s debt levels are not causing problems now, this is not to say they are not without risk. For example, just before the GFC Ireland’s public debt to GDP ratio was the same as <country-region><place>Australia</place></country-region>’s is now, but this changed when house prices collapsed and banks had to be recapitalised.
The main risk is that something happens that severely affects the ability of households to service their mortgages and results in foreign investors changing their attitudes towards investing in <country-region><place>Australia</place></country-region>. Obviously, the RBA is unlikely to trigger the former by raising interest rates too far as it seems very sensitive to household fragility.
The prime risk is that <country-region>China</country-region> has a hard landing causing a slump in <country-region><place>Australia</place></country-region>’s export earnings, a sharp rise in unemployment, defaults, bank problems necessitating recapitalisation by the Government and a loss of confidence on the part of foreign investors.<a name="_ftnref1" href="#_ftn1">[1]</a>
However, while this is clearly a risk several factors are worth noting: Firstly, the tolerance for a hard landing in China is very low in view of the social unrest it would trigger, and in any case recent Chinese economic indicators suggest that growth there may be bottoming around 7.5%.
Secondly, while house prices remain overvalued, the risk of a house price collapse remains low given undersupply, low loan to valuation ratios and full recourse loans in <place><country-region>Australia</country-region></place>.
Thirdly, if the economic environment for <country-region><place>Australia</place></country-region> sours significantly there is still plenty of scope for the RBA to cut interest rates. In fact 325 basis points worth, which would translate roughly into a fall in the standard variable mortgage rate to 4% if the banks’ continue to pass though 80% of RBA cuts. This would translate to an annual interest bill saving of around $6500 for someone with a $300,000 mortgage.
Fourthly, unlike the situation in countries like Japan or peripheral countries in Europe, Australia’s currency acts as a countercyclical buffer and would likely collapse if there were a big collapse in Australia’s export prices (they haven’t really fallen so much so far, so the fact that the $A is around $US1.04 is not surprising). This could cause the $A to easily fall back towards $US0.60 delivering a massive boost to industries such as manufacturing, tourism and higher education that have struggled through the mining boom.
Finally, pent-up demand exists in big parts of the Australian economy, in part due to measures to make way for the mining boom. Housing construction and retailing have been running well below capacity. This can be unleashed as mining slows and lower interest rates, and possibly a lower $A would be part of the mechanism to achieve this.
Concluding comments
<place><country-region>Australia</country-region></place> is not without its risks on the debt front and to be safe needs to continue to head back towards a budget surplus (to cap public debt) and for households to continue to run relatively high savings in order to boost their net wealth and cap household debt. However, the probability of a major debt crisis occurring is likely low as China is unlikely to have a hard landing, there is still plenty of scope to cut interest rates and the Australian dollar is likely to fulfil its role as a shock absorber in the event of a big loss to national income.
<div>
 <hr width="33%" size="1" align="left">
<div>
<a name="_ftn1" href="#_ftnref1">[1]</a> See “<place>Australia</place> – the going gets tough for the lucky country,” Oliver’s Insights, September 2012, which discussed this scenario.
</div>
</div>
Dr Shane Oliver is head of investment strategy and chief economist at <a href="https://www.ampcapital.com.au/" target="_blank">AMP Capital</a>
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soliver-smf6LQXgW9

Australian economy vulnerable due to relatively high levels of household debt: Shane Oliver

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54 Nasmyth Street, Young, NSW, 2594 <img src="/images/stories/2012/11/naysmith.jpg" width="470">
This two-bedroom cottage in the NSW town of Young was recently rented for $150 per week and is currently vacant. LJ Hooker agent Christian Rowan says it would be a great investment opportunity. It is on a 758-square-metre block with a garage and is within walking distance of schools.
Rowan is marketing the property<a target="_blank" href="https://www.buxton.com.au/"> </a>with price hopes of $100,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 7.8% at a rent of $150 per week,  well above the gross rental yield for Young houses of 5.6%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $2,000 and over five years to be $4,000.
The median house price in Young rose 6.5% in the past year and 13.6% in the past five years, according to RP Data.
For more information about prices and yields in <a href="/news">Young, see the RP Data suburb page.</a>
The property will go to auction Saturday, November 10 at 10am. 
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cknowlton-QnEa6ntUYP

Friday form guide: Yields of up to 7.8% in Young

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A Kirribilli unit with no car parking will test the blue-chip locale this weekend.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a target="_blank" rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
In Sydney the only potential hiccup for 4/75 Kirribilli Avenue, <a target="_blank" href="/news">Kirribilli</a>, is the lack of car parking. However agent Catherine O'Neill from Laing &amp; Simmons is not too concerned about the car parking as there is no need in this bluest of blue-chip locations.
The one-bedroom apartment occupies prime Sydney Harbour waterfront land and is only a short walk to Kirribilli village, Milsons Point train station and ferry. The new owner will have plenty of houseguests this New Year’s Eve with prime firework viewing position.
The deceased estate has attracted strong interest from buyers with more than $450,000 to spend.
<img src="/images/stories/2012/11/kirr.jpg">
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Auction tipping: No parking in the bluest of blue-chip Kirribilli locations

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There are many things that give agents headaches when trying to sell a property, but trying to re-sell a property that has just sold is one of the hardest hurdles to overcome.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
The agent will have to resell 11 Struan Street, <a target="_blank" href="/news">Toorak</a>, which sold privately in May this year for $3 million, but the purchaser was unable to complete settlement. The issue is the bar has now been set, and any price under $3 million will be a disappointment for the vendor.
<img src="/images/stories/2012/11/struan.jpg">
RT Edgar agent Anthony Grimwade has indicated most interest is coming from developers, who are keeping their cards close to their chests. They do not see a huge amount of value in the house, it is the almost 800-square-metre block of prime Toorak land they have their eyes on.
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Melbourne auction tipping: An attempt to resell in Toorak

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The low volume of auctions in Victoria means not much can be gleaned from last weekend's auction results, says the Real Estate Institute of Victoria.
<iframe src="https://player.vimeo.com/video/52779566" width="400" height="300" frameborder="0" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>
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