<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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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Landlords providing student accommodation at the cheaper end of town are unlikely to see an increase in rents, due to a drop in the number of international students undertaking vocational training in Australia.
Figures put out by Australian Education International for the year to March 2011 reveal an overall 8.9% decline in enrolments by full-fee international students on student visas.
Digging deeper, the AEI figures show that demand for vocational education and training visas fell by 21% over the year to March 2011, while higher education visas grew by 3.6% during the same period.
Overseas students enrolling in TAFE courses generally apply for VET visas, while those attending university apply for HE visas.
As a consequence, demand for the cheap housing usually sought by overseas TAFE students has fallen, but the more affluent student market remains buoyant.
This is reflected in the lopsided situation facing student accommodation providers such as Student Housing Australia, which has a portfolio of 2,200 apartments in Melbourne.
The organisation says demand for its apartments near TAFE colleges has dropped, but its apartments servicing RMIT, the University of Melbourne and Monash University are full, with students on waiting lists.
Mark McDonald, director of SHA, places the blame for this not on the high Australian dollar – as many have claimed – but on changes made to permanent residency rules introduced in January 2009.
“The high dollar is not a factor. When the Australian dollar went from 55 cents to 80 cents and then 90 cents, it had no effect on demand,” he says.
What has had the most damaging impact, according to McDonald, are changes made to immigration rules limiting the number of courses that give students extra points towards permanent residency applications.
Obtaining a cooking or hairdressing qualification was once seen as an easy route to becoming an Australian resident, but in January 2009, the Department of Immigration stopped accepting permanent residency applications from applicants who had completed these courses.
And it appears the government has toughened up its policies of late.
In January, TAFE Directors Australia chairman Bruce Mackenzie lamented to The Australian that an easing up of assessments for students applying for higher education courses while maintaining tougher risk assessment for vocational applicants was discouraging overseas vocational students.
The flow-on diminished demand for cheaper housing has caused some landlords to spruce up their properties to appeal to the higher end (and higher education end) of the market.
Ben Bassingthwaite, property manager at Century 21 Westside in Brisbane, who says rents have stalled in lower price brackets, notes an improvement in the quality of student accommodation in Fortitude Valley to appeal to the more affluent end of the market.
“Australian students tend to rent more expensive properties compared to Asian students,” he says. “Overseas students are looking for cheaper accommodation. They are more accepting of smaller rooms and bathrooms.”
McDonald believes the government has shot itself in the foot by changing the immigration rules.
“Because New Zealand has not changed its permanent residency policy, students are now going there to do their vocational training, becoming New Zealand residents and then coming to Australia,” he says.
SHA rents out private studios for between $200 and $350 a week, and students sign year-long leases.
Bassingthwaite says weekly rents in Fortitude Valley range between $100 and $140 a week.
“Ninety dollars a week will get you a fairly rundown room,” he says.
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lschlesinger-FZcF9M3vE6

Immigration changes lead to drop in demand for lower-end student housing

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With the autumn property season over and the end of the headlines about record prices and huge crowds, the winter property season brings a new set of challenges for buyers and sellers. Yes, it’s a more subdued time, but winter can still throw up some surprises – and some opportunities. Even in winter people still need to sell their homes. And plenty of people are still out there looking for homes to live in.
In fact, on good homes the interest can actually intensify due to lack of supply, and prices can go up on certain offerings. We’ve noticed in the past couple of chilly weeks, our demand indicator <a href="https://marketnews.com.au/tag/bidderman/" title="Posts tagged with bidderman">Bidderman</a> has risen to an average of 1.5 bidders per auction – up from just over one bidder per auction in early May.
So the buyers are still out there, but they may be a different crowd than the ones you’ve been bidding against during the spring and autumn property seasons.
You won’t see much of the wow buyers, for instance, the ones who like the glitz and glam and are “sort of looking” but not that hard. The footy is on, it’s too cold. They can’t be bothered. So you won’t have to worry about competing against this lot.
The desperate buyers are still there, though, the ones who really need a home nowbecausethe wife is threatening divorce, the kids are whingeing, and they’re sick of trawling through the internet listings every week.
The measured buyers never went away. These are the ones who don’t care whether it’s summer or winter, a buyers’ or a sellers’ market, freezing cold, roasting hot. They are out there even now looking for a quality family home that has good land content and represents good value close to schools for their kids. Their finances are in place, and they see the depths of winter as good a time as any if the right home presents itself.
Measured buyers are the ones who accept that it might be a little tougher to sell their existing homes, and realise they might need to discount their asking price a little for safety – but also that they’ll probably be able to buy something bigger and better at a better price. These are the ones who are only buying if the three Ps line up: property, position and of course, price.
Then there are the opportune buyers or investors. A bit of frost on the local oval isn’t going to stop them looking.  They’ve got their eyes on the pass-ins on a Monday. In fact, they’ve probably been keeping records of pass-ins for the last few months, and eventually a phone call will unearth a good home that didn’t sell for one reason: it was overpriced. And after one or two price drops it could well be ripe for a cheeky offer.
So which one are you and how can you best play this market? Winter brings out the wet trackers in horse racing – the show ponies have a spell, and the old reliables you have seen for many years becomes a lot more visible. So it is in real estate. You will see a number of auctioneers take extended breaks, returning on the occasional weekend when a group of auction homes have been bunched together. In the meantime the quality sales agent are playing a far greater role within the company.
But it’s also worth realising that while a few auctions are still around, over the next few months more homes will be sold over the phone or in a coffee shop than on the pavement. When you’re buying via private sale, expression of interest or off market, that requires different skills. It’s not just about turning up at an auction, watching to see what others do and then putting your hand up. For all the issues connected with auctions, they are still far more transparent than the most common types of deals you will see (or rather, won’t see) between now and the footy finals.
So this winter, like any market, has opportunities for the buyer. Especially for the measured and opportune buyer. Maybe not so much for the wow buyer. And there are some traps for the inexperienced or desperate buyer – but nothing a cool head can’t avoid.
Mal James is principal of <a href="https://www.propertyobserver.com.au/james.net.au">james.net.au</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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maljames-vHwm28JUAa

Don't cool your heels in winter

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The rich are getting richer according to the recently released BRW Rich 200 list. The total wealth held by this year’s Rich List members was up 23% on last year, in part helped by our resources boom.
And just in case you haven’t notices, the divide between the rich and the poor has never been so evident according to the BRW. The average income for Australian families is $80,000 with just 15% of us earning $150,000 or more each year, which seems to be Treasurer Wayne Swan’s definition of wealthy.
In contrast it would take the lower-ranking members on the Rich List less than 5 days to earn $150,000, which seems to be the new cut off between the rich and the average Australian.
So, what can we learn from Australia's wealthy individuals?
Firstly property remains the single biggest source of wealth with 49 real-estate entrepreneurs in the top 200 list, and many of those who didn't make their fortunes in property have stored their wealth by investing in property.
This should come as no surprise – looking back over the years, no matter how the Australian economy changes, the Rich 200 has always been dominated by the property entrepreneurs.
Remember, there's nothing wrong with seeing what other successful people do and applying those principles to your own life. If so many extraordinarily wealthy people have used real estate profitably, it stands to reason that there's money to be made in this sector.
The other lessons I learned by reading the various entrepreneurs' stories are:
Anyone can become rich in Australia. While 17% inherited some of their fortune, most on the Rich List were self-made successes, some coming from working-class backgrounds. Attending a private school and an elite education is clearly not a prerequisite to joining Australia’s wealthy. While some forged important networks at school, many went to public schools and others didn’t even finish high school. In fact, less than half have tertiary qualifications.
 
Invest counter-cyclically. While the average Australian was gripped with fear of the fallout from the Global Financial Crisis, many successful investors took advantage of the opportunity to buy up big over the last few years. Remember Warren Buffet's famous quote: "Be fearful when others are greedy, and be greedy when others are fearful."
Make your millions and then reinvest it – don't spend it. This is really just using the power of compounding to grow your asset base before you start spending up big.
Take risks early on, but not once you are established. While many entrepreneurs took big risks to get their enterprises going, successful investors then preserved their wealth by cautiously investing rather than taking further risks.
Have one good idea and repeat it. One core trait that successful entrepreneurs share is the ability to take a good idea and repeat it over and over again. Look through the list and you’ll see so many entrepreneurs stick to the same concept for years and just expand in different locations.
Pick the trends. This is different to picking fads, which are transient.
Go for growth. Sure, cash flow is important but to become really rich you need a large asset base. While the average Australian tries to increase their cash flow, the wealthy are obsessed with building their asset base. Much the same as those on the BRW Rich 200 list who concentrate on building their balance sheets even more than they do on their profit and loss accounts.
Surround yourself with a good team. As I've often said, if you are the smartest person in your team, you are in trouble.
Take action. All the people who made it onto this year's BRW Rich 200 list started with a dream and then took action.
You’re never too young and you’re never too old. The youngest member of the BRW Rich 200 is aged 35 and has an estimated wealth of $1.01 billion, which is even more than the oldest member who at the age of 92 has accumulated $289 million.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia's leading experts in wealth creation through property. For more information about Michael visit <a style="color: #333333; font-weight: bold; font-size: 13.5px; text-decoration: none;" href="https://www.metropole.com.au/">www.metropole.com.au</a> and <a style="color: #333333; font-weight: bold; font-size: 13.5px; text-decoration: none;" href="https://www.propertyupdate.com.au/">www.PropertyUpdate.com.au</a>.
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myardney-DFoGhGbSJX

The rich are getting richer, and so can you

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Going to a debate about property bubbles is a bit like going to a debate about the existence of God. You know broadly what the arguments will be, but you want to know who is speaking and whether they have any new observations.
 And so it was that the Money Institute in Sydney hosted “The Property Bubble Debate: is it doom and gloom or safe as houses?”
 In the Christopher Hitchens role (there is no God) we had, inevitably, Professor Steven Keen, this country’s most high-profile property market iconoclast.
 As the joke goes, the good professor has managed to pick six of the last three downturns.
 Opposing him, in the Archbishop of Canterbury corner, there was a property developer called Dr Tony Hayek from Blue Wealth Property.
 In between, there were a handful of participants, the most informative of whom was Dr Shane Oliver, AMP’s chief economist.
 One problem with debating the merits of property is that it is such an emotive topic for Australians.
 With one of the highest rates of home ownership in the world, having your own home – at almost any price – is a cultural imperative against which it is almost impossible to rationally argue. It is also proof that economics is not always a rational science.
Hayek, the first speaker, said he wasn’t going to show any graphs or statistics, because that was the job of the other panellists.
However, he did show us photos of houses in Concord and Harris Park, NSW, that he said had gone up in value in the past few years.
 Fortunately, Keen had a slightly broader view. The University of Western Sydney academic said that conventional wisdom had it that “population pressures drive house prices, but that’s wrong. It is money pressure which drives house prices.”
 Australian banks have financed a bigger bubble here than in the US, he said.
“It’s the biggest debt-financed asset bubble in human history, and I’m afraid you ignore it to your peril.”
Oliver began his talk by saying that any negative remarks about the property markets didn’t apply to the northern beaches suburb of Avalon, NSW, because that was where he owned a house. In general, house prices were this country’s “Achilles Heel,” he observed. 
In 1987 the housing market soared following the sharemarket crash, and the Australian market recorded much bigger gains than the UK and the US. Although the Australian market is overvalued, the indications of a bubble were missing, he said.
Interestingly, buyer sentiment about property as an asset class has changed. In the mid-1990s approximately 50% of Australians surveyed on this topic thought that real estate was a better place for their savings than other asset classes, Oliver said. Now, only 15% are property true believers, and the rest think they would be better off putting money into bank deposits and paying off debts.
Housing affordability is a huge issue in this country, the economist said. To buy an average-priced house in Australia takes six times the annual disposable income, whereas in the US is just three times that figure.
For instance, the average house price is Sydney is $634,000 while in Los Anegles, which has similar household incomes, it is $346,000. The Perth average house costs $480,000 and Austin Texas, $189,000. Housing rental yields here were about 3% and commercial property about 8%, the economist said.
Oliver then analysed the issue of why Australian property was so much more expensive than its equivalent in the US.
The first reason was that Australians spend less on healthcare than Americans, which means that they have more money in their pockets to spend on housing. The other factors are a greater supply of credit here and an under-supply of housing.
Currently, there is a shortfall of 200,000 to 230,000 dwellings; we should be building 180,000 to 200,000 dwellings every year and we are building less than that, he said.
In conclusion, the economist said that the main risks for the property market were a large number of land releases by government, the collapse of the Chinese economy and a rise in interest rates. Housing affordability was “terrible” and auction clearance rates were trending low, he said.
“My summary would be that prices are overvalued. It’s not a bubble, but we are very vulnerable if anything goes wrong.”
After the presentation, on the way back to the office, I went into a shop to look at a $330 pair of shoes I had just purchased over the internet for $70, plus postage. As I can now buy everything I want with an iMac and a credit card, I wondered: what is the future of retailing property? Buy FedEx.
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cknowlton-QnEa6ntUYP

Property high priests square off over housing bubble

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The Northern Territory is the only state or territory to record an increase in first home buyers in the March quarter, bucking a nationwide trend.
ACT had the biggest drop in this sector of the market, and South Australia first-home buyer numbers fell to a 20-year low.
In the Northern Territory the number of new loans to first-home buyers increased during the quarter, up 8.9% to 159 loans. These borrowers make up 23.5% of the market, according to the Real Estate Institute of Australia Deposit Power Housing Affordability Report.
At the other end of the scale, ACT recorded the largest decrease in the number of new loans to first-home buyers, down 25.5% to 324. First-home buyers still comprise 25.9% of the market in Australian Capital Territory.
State-by-state analysis
In New South Wales, the number of loans to first-home buyers continues to be higher than all other states and territories, despite a decrease of 14.6% to 6,097 from the previous quarter. Over the year, the number of loans to first-home buyers decreased 13%.
In Victoria, the total number of loans issued to first-home buyers decreased 21.1%, down from 7,005 in the previous quarter to 5,526, the second-largest decrease of any state or territory during the quarter.
In Queensland, first-home buyer numbers dropped 16.1% to 3,636 during the March quarter. Compared with the same quarter of 2010, housing loans allocated to first-home buyers decreased 17.6%
In South Australia the number of loans to first-home buyers declined 14.8% to 1,269, the lowest quarterly level since September 1991. Compared with the same quarter of 2010, housing loans to first-home buyers decreased 22.6% in SA.
In Western Australia the number of housing loans to first-home buyers declined 10.2% to 2,920. Over the twelve months to March 2011 the number of loans to first home buyers declined 18.3%.
The number of new loans to first-home buyers decreased by 8.3% in Tasmania, bringing the total number of new loans from 374 in the December 2010 quarter to 343 in the March 2011 quarter. Over the 12 months to March, the number of new loans to first-home buyers decreased 23.1%. 
 
<hr class="system-pagebreak">
 
Nationwide, the number of first-home buyers participating in the mortgage market plummeted to the lowest level in 17, years according to the latest Real Estate Institute of Australia Deposit Power Housing Affordability Report.
 First-home buyers comprised just 15.4% of the “dwelling finance” market in the March 2011 quarter, compared with 15.6% in the December 2010 quarter, the latest report says. This is well below the long-term average of 20%.
The number of new finance commitments to first-home buyers fell to 16.1% for the quarter to 20,274, and the number of loans to first home buyers declined over the year, down 20.6%.
Affordability
ACT remains the most affordable state or territory, according to the report, with the proportion of income required to meet loan repayments increasing to 18.6%, 15.6 percentage points below the national average of 34.2%. NSW remains the least affordable, with the proportion of income required to meet loan repayments decreasing to 37.2%.Victoria is the second least affordable state (27.8%).
Affordability in Queensland improved during the quarter, with the proportion of income required to meet loan repayments decreased 0.5% to 32.9%.
During the March 2011 quarter, the total number of new finance commitments (excluding refinancing) decreased 16.5% to 90,157 – the lowest quarterly level in 12 years. All states and territories recorded declines in the total number of new finance commitments, both over the quarter and the year.
The latest finding about first-home buyer reluctance comes despite a report by Canstar Cannex saying conditions are easing for this sector of the market.
The financial data provider expects first-home buyers to be the likely beneficiaries of a flat housing market combined with an easing of deposit requirements by a significant number of lenders.
“In the last 12 months we’ve seen at least 25 lenders ease their deposit requirements and increase their LVRs (loan-to-valuation ratios) to assist borrowers getting into the market for the first time,” Canstar Cannex financial analyst Mitchell Watson says.
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First-home buyer numbers down nationwide, except in NT

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Since the publication of <a href="https://www.propertyobserver.com.au/hotspots/the-10-most-discounted-properties-in-australia-at-june-1/2011060250371" target="_blank" title="Last week's most discounted properties data">last week's most discounted property figures</a>, the vendors of the most discounted property in Australia seem to have lowered their asking price a further $20,000, down to $380,000. This is a tad more reasonable then the property's original asking price of $700,000!
There have been a variety of opinions surrounding not only this particular property but others like it that have been grossly overvalued and/or overpriced. Much of the blame has been pinned on agents for spruiking inflated valuations and making unattainable promises to vendors.
What we have to remember as potential investors is that we can't always blame the agents in these particular cases. Often it is the vendor who has a misguided, delusional idea of what the property is worth, and in the end it is the vendor that has the final say when it comes to pricing.
 1
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" target="_blank" title="1350 Wynnum Road, Tingalpa" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1350 Wynnum Road, Tingalpa, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 203
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;"> </h2>
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" target="_blank" title="1/21 Ocean Drive, Coogee" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1/21 Ocean Drive, Coogee, 6166</a>
On the market since: May 23, 2010
Initial asking price: $2,700,000
Current asking price: $1,600,000
Reduction: 41%
Days on market: 371
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106766036" target="_blank" title="16/153 Kensington Street, East Perth" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">16/153 Kensington Street, East Perth, 6004</a>
On the market since: August 21, 2010
Initial asking price: $845,000
Current asking price: $529,000
Reduction: 37%
Days on market: 280
 
4
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" target="_blank" title="232-234 High Central Road, Macleay Island" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">232-234 High Central Road, Macleay Island, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 868
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" target="_blank" title="25 Vicary Street, Triabunna" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">25 Vicary Street, Triabunna, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 301
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" target="_blank" title="290 Viveash Road, Swan View" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">290 Viveash Road, Swan View, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2,290,000
Current asking price: $1,500,000
Reduction: 34%
Days on market: 1089
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" target="_blank" title="3 Boolari Road, Gosford West" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">3 Boolari Road, Gosford West, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $650,000
Reduction: 34%
Days on market: 689
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206" target="_blank" title="1/16 Dewar, Ledge Point" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1/16 Dewar, Ledge Point, 6043</a>
On the market since: November 15, 2009
Initial asking price: $375,000
Current asking price: $250,000
Reduction: 33%
Days on market: 559
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107052447" target="_blank" title="56 Ellen Street">56 Ellen Street, Kingston, 4114</a>
On the market since: December 11, 2010
Initial asking price: $285,000
Current asking price: $200,000
Reduction: 30%
Days on market: 168
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008305411" target="_blank" title="5/24 Georgina Street, Woody Point">5/24 Georgina Street, Woody Point, 4019</a>
On the market since: April 11, 2010
Initial asking price: $310,000
Current asking price: $220,000
Reduction: 29%
Days on market: 413
 
Louis Christopher is the managing director of SQM Research. More information on discounted properties can be found in the free SQM weekly newsletter or on the <a href="https://www.sqmresearch.com.au/news.php" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">SQM Research website</a>.
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louischristopher-TWpYcZDLBK

The most discounted properties in Australia at June 7

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I have been writing about property for more than 25 years, and I've learnt that getting passionate about property is easy. Getting it right is trickier. I intend for Property Observer to be property central, providing the essential news and analysis on the ins and outs of property. We will cover the capital cities, up and down the coast, and inland to the regional towns and the bush.
We will offer plenty of authoritative coverage about the homes we live in and the investments that top up our incomes.
Property Observer will showcase the best houses and apartments and all the big-name buyers and sellers. We will also keep a watchful eye on new developments, and the plush over-55 developments that seek out the growing band of empty nesters.
Property Observer will capture the changing seasons – we will write about snow homes, vineyards, fishing lodges, marinas and even the occasional beach bathing box. We aim to be of interest to the owner-occupier and the investor, given that population and investment funds are more fluid than ever.
I intend for commercial investment property to be a key component, especially the opportunities on high street –  retail neighbourhood shops, small strata offices, pubs and industrial strata. All are suitable for the self-managed super fund investor.
The website will offer wisdom on winning ways with property commentary from key economic and industry practitioners. We won’t overlook the property fundamentals, conveyancing clues, legal rulings and tax advice.
We want input from readers on market prices in their local patches, facilitating shared knowledge through dialogue, so <a href="mailto:news@propertyobserver.com.au">let us know</a> about your stories, insights and properties.
It's not just about bricks and mortar, as Property Observer will personalise property with interviews of the movers and shakers.
We want our readers to get wisdom, not clichés. And that way we’ll all be the wealthier.
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jchancellor-FAypfDUnLy

Welcome to Property Observer

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It’s been a bad year for Queensland. Floods, a cyclone and a weak tourism market have taken their toll, and now the April RP Data?Rismark Hedonic Home Value Index ranked Brisbane as Australia’s weakest capital city housing market. House price depreciated by 4.8% during the first four months of the year and by 7.2% over the past 12 months.
These statistics make for gloomy reading for anyone who currently owns property in Queensland’s capital.
However, for investors looking for medium-term growth potential, Brisbane could well present the most attractive opportunities.
It currently sits at 5 o’clock on the Property Observer Property Clock, meaning Brisbane is closest to bottoming out – and importantly, recovering.
Building activity and the resources boom are expected to light the spark of recovery and potentially the next housing recovery. Next in line is Perth, which has also undergone significant house price depreciation of late. As for the other capital cities, they’re only just heading into downswings, meaning many of the best investment opportunities in these cities have already passed investors by.
 
 
At 12 o’clock the market is at its peak (demand exceeds supply), at 3 o’clock the downswing has set in (an evenly supplied market0,) and by 6 o’clock it has bottomed out (an oversupplied market). At 9 o’clock the market is rebounding (supply is tightening).
 
<img src="/images/stories/clocksandtables/clock-generic.jpg">
<hr class="system-pagebreak">
 Sydney
Population: 4,575,532  Median house price: $590,000  Rental yield: 4.3%  Property clock time: 1.30
<img src="/images/stories/clocksandtables/clock-sydney.jpg">
Consensus is that the Sydney market has peaked and is heading into a downswing, though no dramatic collapse in prices is anticipated. 
According to Terry Ryder, director of hotspotting.com.au, the Sydney market has been falling since early 2010, though “long-term prospects are solid”. “The change of state government will help [the market], if infrastructure promises are kept,” he says.
Louis Christopher, founder of property research firm SQM, also anticipates further house price falls as a result of higher interest rates and a downward swing in housing finance approvals. “However, the magnitude of the decline will be minimal compared to most other cities. This is one city that really is experiencing a genuine shortage of rental properties,” he says.
Digging a little deeper into the Sydney market, Chris Lackey, NSW state manager at WBP Property Group, observes two different cycles operating in the Sydney market: “Activity in the top end has slowed, with $1.5 million plus properties currently at 3 o‘clock in the property clock cycle. The middle and bottom markets are also softening and likely to remain flat for the year. There are some select areas that remain at their peak.”
Following publication of the RP Data-Rismark Hedonic Home Value Index for April, which showed Sydney prices up 0.5% year on year on a seasonally adjusted basis, Rismark joint managing director Christopher Joye also highlights the threat to homes at the top end of the market: “Luxury homes in areas like Sydney’s eastern suburbs will continue to face valuation headwinds as banks deal with the new normal of subdued credit growth,” he says.
<img src="/images/stories/data%20table%20sydney.jpg">
 
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Adelaide
Population: 1,203,186 Median house price: $400,000  Rental yield: 4.1%  Property clock time: 1.30
<img src="/images/stories/clock-adelaide.jpg">
<h2>Adelaide appears to be heading towards a moderate downswing, with rental vacancy rates steady and construction activity levelling off. House price depreciation appears to be accelerating slightly, with RP Data showing prices falling by 0.9% in April and 2.5% for the year to date.</h2>
Terry Ryder, who is the most bearish of Adelaide analysts Property Observer spoke with (he puts the Adelaide clock at 4 o’clock), says the market is in a period of “mild decline” though overall prospects are strong, “thanks to infrastructure, defence and resources projects”.
The South Australian capital also has the benefit of cheaper housing overall compared with other capital cities. Bart Quinn, WBP’s SA state manager, says that although prices and volumes have fallen in Adelaide, particularly in the first-home buyer segment, “underlying demand is steady for properties that are priced right”. “Generally, the Adelaide market remains cautious, but there are pockets that continue to remain well supported,” he says.
Louis Christopher says Adelaide vendors are only now cutting their asking prices, and he expects more pain to come. “However, there is a chance the magnitude of the declines will be modest.”
<img src="/images/stories/data%20table%20adelaide.jpg">
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Darwin
Population: 127,532  Median house price: $470,000  Rental yield: 5.6%  Property clock time: 1.45
<img src="/images/stories/clocksandtables/clock-darwin.jpg">
<h2>“After five to six strong years, Darwin’s market has finally paused and there is evidence of price decline,” Ryder says. However, he believes the recovery will be swift, once major gas projects move into the construction phase.</h2>
Such sentiments are not shared by Christopher, who says the Darwin bubble has “popped”.
“It is going to be a steep decline from here, particularly if the RBA lifts rates again,” he says.
RP Data-Rismark statistics for April show a 2.9% increase in prices in April, but just 0.3% growth for the quarter.
<img src="/images/stories/data%20table%20darwin.jpg">
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">
<hr class="system-pagebreak">
</h2>
Canberra
Population: 358,222  Median house price: $560,000  Rental yield: 4.8%  Property clock time: 2 o'clock
<img src="/images/stories/clocksandtables/clock-canberra.jpg">
<h2>RP Data-Rismark research for April shows that the Canberra market has not yet run out of steam, with prices continuing to rise steadily. House prices increased by 1.8% in April, are up 2.2% in 2011 and 2.3% for the April quarter.</h2>
A shortage of available property relative to demand, a tightening rental market, a fair demand for new houses and a steady volume of new home building are all keeping the housing market buoyant. However, this is offset by declining sales volumes and the second highest capital city prices after Sydney.
Terry Ryder says any dip in the market is likely to be small. “Canberra remains our most reliable city market, buoyed by strong incomes and low unemployment,” he says.
A bullish outlook is also held by Louis Christopher: “Stock levels are rising, however this is also another city where the magnitude of the declines may well be modest as the ratio of income to house prices appear to be fair.” 
<img src="/images/stories/data%20table%20canberra.jpg"> 
<hr class="system-pagebreak">
Melbourne
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;"></h2>
Population: 4,077,036 Median house price: $535,000 Rental yield: 4.1% Propety clock time: 2.25
<img src="/images/stories/clocksandtables/clock-melbourne.jpg">
Experts are in agreement that an oversupply of houses in Melbourne is contributing to the market heading into a moderate downswing, though no crash is expected. RP Data's April figures show Melbourne house prices are down 0.5% for April and down 3% for the year to date.
Brendan Smith, valuations manager at WBP, anticipates “tempered growth over the next 12 to 18 months” in Melbourne compared with what has transpired over the past decade. “This is due to the decline in the population growth of the region and the current oversupply of listed stock and property under construction,” he says.
However, Smith says auction clearance rates averaging around 60% to 65% for the first quarter of 2011 are further evidence that there is unlikely to be any “crash” or “bust” in the short term, but rather a return to more measured and sustainable growth.
Louis Christopher notes that stock levels in Melbourne have increased 105% during the past 12 months. As a result, he says vendors have just started to drop their asking prices, and he anticipates a 5% decline in house prices in 2011.
<img src="/images/stories/data%20table%20melbourne.jpg">
<hr class="system-pagebreak">
Hobart
Population: 214,705  Average house price: $322,800 Rental yield: 4.8% Property clock time: 2.30
<img src="/images/stories/clocksandtables/clock-hobart.jpg"> 
Terry Ryder calls Hobart “the city with the weakest prospects”.
“The state economy and population growth is weak and political situation is unhelpful,” he says. “The market likely to fall further.”
Hobart prices have fallen 2.4% this year to March (because of the low volume of sales in Hobert, RP data on Tasmania are a month behind) according to RP Data-Rismark data, with demand for new housing soft and a decline in new home building approvals.
“Hobart stock levels are rising,” Louis Christopher says. “However, this is also another city where the magnitude of the declines may well be modest, as income-to-house prices appear to be fair.” 
<img src="/images/stories/data%20table%20hobart.jpg"> 
 
<hr class="system-pagebreak">
 
Perth
Population: 1,696,065  Median house price: $481,825 Rental yield: 4.2% Property clock time: 4.40
<img src="/images/stories/clocksandtables/clock-perth.jpg"> 
According to RP Data-Rismark, Perth prices have fallen further than prices in any other capital city and the downward swing is accelerating, as reflected in Perth’s position on the property clock. For the 12 months to April, house prices are down by 7.3%. For the first quarter of 2011, they’re down 3%, and for the month of April they’re down 1.5%.
Analysts Louis Christopher and Brendan Aylmore, WA branch director at WBP, both highlight Perth’s sensitivity to interest rates. Christopher says another interest rate rise could send the property clock back to 2 o’clock, pushing back Perth’s recovery.
Aylmore says Perth’s housing market has been soft for an extended period, and although a slight lift in rental rates could result in an increase in first-home buyers “looking to exit the rent rut”, buyers remain cautious about upgrading, given the possibility of further rate rises and unstable economic conditions abroad.
Terry Ryder is more bullish and expects the market to recover on the back of the resources boom and government infrastructure spending.
<img src="/images/stories/data%20table%20perth.jpg">
<hr class="system-pagebreak">
Brisbane
Population: 2,043,185 Median house price: $449,250 Average weekly rent: 4.5% Property clock time: 5.20
<img src="/images/stories/clocksandtables/clock-brisbane.jpg"> 
RP Data ranked Brisbane as the weakest performing capital city in its April index, with home values down 3.1% in the April quarter. For the year to date, home values are down 7.2%. RP Data research director Tim Lawless says Brisbane along with Perth have undergone a significant correction in home values, whereas other capital city markets have flattened out.
But Brisbane could be the next capital city hotspot once rebuilding efforts get into full swing. Experts anticipate a turnaround in the next 12 to 18 months.
Terry Ryder notes the impact of the floods on the market but expects Brisbane to show signs of recovery before the end of 2011. “The rebuild program and the resources boom will spark revival. Investor activity will pick up in the second half of 2011, with prices attractive and rents strong,” he says.
Louis Christopher is more bearish and says the downswing has another 12 months before the market bottoms out. “There is over six months’ worth of stock on the market,” he says. The Sunshine Coast and Gold Coast are basket case situations.”
WBP Queensland state manager Daniel Lewis has a more positive outlook and does not expect prices to fall any further. “Increasing rental prices are a positive sign for Brisbane moving forward, with hopes that this positive development will lure investors back into the market. Another positive factor is the relative affordability of housing when compared with other Australian capital cities,” he says.
<img src="/images/stories/data%20table%20brisbane.jpg">
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Brisbane clocks in near bottom of market

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Sydney and Melbourne are noticeably absent from the most recent nationwide list of the country's most discounted suburbs and have had minimal presence in recent weeks.
We think to a certain extent that this reflects <a href="https://www.sqmresearch.com.au/" title="SQM Research" target="_blank">SQM Research</a>'s initial forecast for 2011, that the state of Queensland is set to suffer a little more than the others, and is already showing declines on a larger scale comparatively. With three properties in the top end of our list with discounts in the percentage range of 37% to 43%, Queensland is taking the lead so to speak where the slashing of prices is concerned.
Of course this is suburb-specific, and not all areas are suffering similarly, but the regions that are being hit this year are being hit hard.
 
<h2>1</h2>
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" title="1350 Wynnum Road, Tingalpa" target="_blank">1350 Wynnum Road, Tingalpa, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $400,000
Reduction: 43%
Days on market: 196
 
<h2>2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" title="1/21 Ocean Drive, Coogee" target="_blank">1/21 Ocean Drive, Coogee, 6166</a>
On the market since: May 23, 2010 
Initial asking price: $2,700,000
Current asking price: $1,600,000
Reduction: 41%
Days on market: 364
 
<h2>3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106223877" title="12 Mcclure Road, Upper Carboolture" target="_blank">12 Mcclure Road, Upper Caboolture, 4510</a>
On the market since: December 26, 2009
Initial asking price: $1,600,000
Current asking price: $999,500
Reduction: 38%
Days on market: 511
 
<h2>4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106766036" title="16/153 Kensington Street, East Perth" target="_blank">16/153 Kensington Street, East Perth, 6004</a>
On the market since: August 21, 2010
Initial asking price: $845,000
Current asking price: $529,000
Reduction: 37%
Days on market: 273
 
<h2>5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" title="232-234 High Central Road, Macleay Island" target="_blank">232-234 High Central Road, Macleay Island, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 861
 
<h2>6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" title="25 Vicary Street, Triabunna" target="_blank">25 Vicary Street, Triabunna, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 294
 
<h2>7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007649611" title="128/151 Adelaide Terrace, East Perth" target="_blank">128/151 Adelaide Terrace, East Perth, 6004</a>
On the market since: May 18, 2009 
Initial asking price: $1,250,000
Current asking price: $799,000
Reduction: 36%
Days on market: 735
 
<h2>8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" title="290 Viveash Road, Swan View" target="_blank">290 Viveash Road, Swan View, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2,290,000
Current asking price: $1,500,000
Reduction: 34%
Days on market: 1082
 
<h2>9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" title="3 Boolari Road, Gosford West" target="_blank">3 Boolari Road, Gosford West, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $650,000
Reduction: 34%
Days on market: 682
 
<h2>10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206" title="1/16 Dewar, Ledge Point" target="_blank">1/16 Dewar, Ledge Point, 6043</a>
On the market since: November 15, 2009
Initial asking price: $375,000
Current asking price: $250,000
Reduction: 33%
Days on market: 552
Louis Christopher is the managing director of SQM Research. More information on discounted properties can be found in the free SQM weekly newsletter or on the <a href="https://www.sqmresearch.com.au/news.php">SQM Research website</a>.
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The 10 most discounted properties in Australia at June 1

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A key focus for many buyers at the moment is to not pay too much. Fair enough – it’s a healthy focus But if this is the only focus, then as a buyer of a good home or a good investment you might miss out on the main game – to buy well.
Take a golfer who is totally preoccupied with looking at the flag, until his partner points out the water hazard to the left. That’s good factual information and healthy to focus on if it makes you change your aim a little to the right. But it’s an unhealthy focus if it becomes so encompassing that you end up duck-hooking into the very hazard you are trying to avoid.
The hazard that all buyers, whether emotional home buyers or first-time investors, are trying to avoid is making bad decisions that don’t achieve their outcomes. Let’s say your desired outcome is to buy a good home for your family, but also to make a good investment purchase. In this market, is that best serviced by a focus on buying a good home at a fair price or by beating the agent and getting a discount? Of course both aims are worthy, but in my opinion the former is a more important focus.
Here’s a question: When are you more likely to be buying a good home: when the selling agent tells you a property is bargain, when you find yourself negotiating at 10% below the asking price, or when you find you are competing against multiple bidders in an “on the market” auction?
The fact is that when there are multiple bidders for a property, it’s a clear signal that the property is likely to be a good future investment. Multiple bidders signal consensus on price, and that is good for capital growth; multiple bidders also signal that there is a high chance this is a good home. An obsessive focus on not paying too much is actually not a buying strategy and could even be counter-productive in a competitive auction situation.
Take this recent auction at 7 McLaughlin Avenue in the Melbourne bayside suburb of Sandringham. This was a roughly 30-year-old house on more than 1000 square metres with an older-style façade. It is a bit dated but has a classy floor plan and internals. It is a good home, and I was interested to see how it would sell.
After an opening bid of $1.5 million, a second bid came in at $1.55 million and a third at $1.65 million. Another bid came in at $1.66 million, and then finally we were “on the market” at $1.71 million – but by this point people seemed to be running out of money.
Bidder number two was slow to bid, and bidder three responded more authoritatively, nearly buying the house for $1.71 million. A fourth bidder then came in at $1.72 million but didn’t look that strong, and this seemed to allow the third bidder back in with a bid of $1.751 million. The final result: $1.752 million.
Not bad, and the under-bidders probably thought they’d given it their best shot, but my thought was that at least two of them looked weak and that was what let the winning bidder back in each time. I can’t help thinking that there might have been a different result if the other bidders had gone in with a different mindset.
It’s human instinct for others to battle on when they think the other party is injured and almost out of the race. If you’re the weak one, you may end up paying more or even worse missing out on the property, when it is quite possible that the winning bidder would have stopped $10,000 below you if you had put in a stronger bid.
The fact that you showed you were gone was what energised him for one last final effort. So what are the real issues in this market?
1) Get your main goal clear in your mind.
2) Understand value before you start bidding. Why? Because uncertainty makes us all look weak.
3) Sure, don’t overpay – but don’t miss out either (as long as it’s worth it)
4) Don’t assume you will have no competition 5) Have multiple bidding strategies to deal with pass-ins, vendor bids, etc, but also have ones to deal with bullet bidding, strong competition, weak competition and so on.
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