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

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

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

Dalcott targets owner-occupiers with South Brisbane debut Marrone

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

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

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

ODUS releases $18 million penthouse crowning La Mer Main Beach

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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Interstate and local buyers have helped drive luxury apartment sales at Signature Broadbeach to a total of $153 million following a busy start to 2020 for the developer Little Projects and marketing agent KM Sales and Marketing.
Sales gathered pace in the first quarter of the year as construction progressed on the $210 million project, which is backed by high-profile Melbourne businessman Paul Little.
Director of KM Sales and Marketing Jayde Pezet said the sales to date mark a successful debut to the Gold Coast market for Little Projects.
“We are pleased to announce that Signature Broadbeach has now secured buyers for 184 of its 245 apartments since its launch,” Mr Pezet said.
In its latest construction update, Little Projects says basement foundations and perimeter walls have been completed and excavations for the four-level basement carpark are well advanced. 
The tower crane is expected to be on site in late April as construction progresses in earnest on the 35-storey development.
Designed for resort-style living in the heart of Broadbeach, Signature Broadbeach is proving to be ‘something for everyone’, including international buyers, according to Leighton Pyke, director of Little Projects.
“Sales and inquiries are coming from a variety of quarters, largely local owner-occupiers and interstate investors, primarily from Sydney, Melbourne and rural Victoria,” said Mr Pyke.
“Interstate investors are purchasing for an income earning lock-and-leave holiday home on the Coast, and that’s been a solid trend since the launch of this project.
“We’ve also had a number of international investors among our buyers, mainly from New Zealand and Japan. Inquiries have been quite healthy across the board.”
Signature Broadbeach has been specifically designed to offer the best in resort-style living within easy access to the urban amenities of one of the Gold Coast’s most sought-after beachside suburbs.
Located at 12-18 Philip Avenue, it is just half a block from a patrolled beach and one block from the centre of Broadbeach. It is within walking distance of Pacific Fair, Star Casino, the Gold Coast Convention and Exhibition Centre and the café and dining heart of Broadbeach.
The development offers a combination of one, two and three-bedroom apartments, all oriented towards the ocean to maximise views, with prices starting from $515,000.
Award-winning design team Rothelowman and SJB Interiors have crafted the project and its interiors with the apartment owner in mind.
“The quality of fittings and the level of resident amenities are among the highlights that buyers have noted within this development, and it’s just as important for investors as it is for the many owner-occupiers who have been won over by Signature,” said Mr Pyke. 
Residents’ amenities include a 50-metre infinity-edge pool and a recreational heart known as Deck at Signature. This comprises an entire level featuring a landscaped lawn area, barbecue and teppanyaki facilities, private lounge and dining room, sauna, steam room and spa, gymnasium and cinema.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/14/Pool%20-%20Signature%20.jpg" alt="">
Signature Broadbeach is a joint venture between Melbourne-based, international award-winning Little Projects, chaired by Mr. Little, and KM Develop, a leading Australian property development business led by Haydn Law.
Little Projects are considered Melbourne’s premier private developer having delivered over 2,000 apartments and townhouses across the city.
 
KM Develop, operating since 2002, have a combined 65 years’ experience, specialising in project acquisition, development and delivery.
Together the renowned developers have delivered projects totalling over $3.5 billion across residential and commercial markets throughout Australia. 
The luxury Signature Broadbeach development is scheduled for completion in the first half of 2022.
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Interstate and local buyers drive sales at Signature Broadbeach to $135 million

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A large mortgagee home in Clontarf, with water views, has been listed for sale.
Located at 9 Barrabooka Street, the house features four bedrooms, four bathrooms, and a double garage.
Set on a 471 square metre block, it was built in 2007.
It's the first time it has come onto the market.
Shane Slater and Max Wagschall, from The Agency, hold the listing.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="" style="font-size: 12.16px;">
The median house price in Clontarf in $3.8 million.
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Clontarf mortgagee home listed for sale

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A mortgagee apartment in Sydney Olympic Park’s Australia Towers has been listed for sale via online auction.
Located at 906/7 Australia Avenue, the ninth-floor apartment features one bedroom, one bathroom, and a single car space.
It also has a small private study.
The property last traded in 2012, when it sold for $540,000.
Joe Bousimon, from Belle Property Strathfield, made the listing.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
The median price for a unit in Sydney Olympic Park is $699,000.
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Olympic Park mortgagee apartment in Australia Towers listed

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A mortgagee apartment in Surry Hills has been listed for sale via online auction.
Located at 33/679-695 Bourke Street, the apartment has a small living area, single bedroom and bathroom, and a car space.
The 42 square metre apartment has a small balcony.
It previously sold in 2002 for $280,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
The median unit price in Surry Hills is $819,000.
 
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Surry Hills mortgagee apartment listed for online auction

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The economic slowdown resultant from COVID-19 has changed working conditions for many. But quantifying the impact on labour markets at this stage is difficult.
That is because labour market data is not real time, but instead reference the first two weeks of the previous month to the data release date.
The start of the economic slowdown was not felt until halfway through March 2020, meaning unless the survey methods are altered, regular labour force data will not show an impact until the May edition.
However, there are some things we already know about Australia’s labour force that provides insight into how property markets may be particularly affected.
Many workers are having their hours reduced On April 7th, the ABS released new survey results on the impact of COVID-19 on businesses.
Over 1,200 business representatives responded, revealing changes that had been made to the workforce.
 
Of the actively trading businesses surveyed, about a quarter reported reducing staff hours over the past few weeks. A summary of businesses reporting reduced staff hours by size and industry is presented below. 
<img src="https://www.urban.com.au/images/2020/4/9/CL%20working.png" alt="">
Reduced staff working hours is an early response businesses typically adopt during a downturn, with a view to preserving jobs
ELIZA OWEN is the Head of Research Australia at CoreLogic
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The COVID-19 labour market shift: CoreLogic's Eliza Owen

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A mortgagee home in North Rothbury, New South Wales has come onto the market for $505,000.
Located at 35 Bendeich Drive, the residence is situated on a 644 square metre block.
It features four bedrooms, two bathrooms, and a double garage.
It is a five-minute drive to Branxton, and two minutes away from a currently-under-construction Coles shopping precinct.
Kane Bradley, from LJ Hooker Maitland, holds the listing.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
The median house price in North Rothbury is $499,000.
 
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North Rothbury, NSW mortgagee home listed for sale

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A mortgagee house in Lugarno, New South Wales has been listed for sale.
Located at 1047 Forest Road, the brick home is situated on a 562 square metre block.
It features five bedrooms, two bathrooms, a wood fireplace, and a double garage.
The property last traded in 2010, when it was sold for $690,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
Lugarno’s median house price is $1,152,500.
Hayden Duncan and Olivia Duncan, from McGrath South Hurstville, hold the listing.
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Lugarno, NSW mortgagee home listed for sale

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EXPERT OBSERVER
Consumers stockpiled food and supermarket groceries in February ahead of restrictive self-isolation and social distancing measures announced by governments to counter the fast-spreading coronavirus (COVID-19) outbreak.
Retail spending grew by a solid 0.5 per cent in February – the second strongest growth rate in 12 months. But this followed declines in spending of 0.6 per cent in December and 0.3 per cent in January, due to disruptions from big city smoke hazes and the bushfire emergency.
Many Aussie retailers decided to close their businesses before government orders to shut down to protect both the health of their employees and customers from the ravages of the virus. Tens of thousands of workers in the retail trade industry were stood down indefinitely. And shoppers decided to scale-back purchases of non-essential discretionary goods, such as clothing and footwear. In fact spending on shoes and apparel fell by 2.3 per cent over the year to February – the biggest annual decline since 2011.
Consumer caution is also evident in spending on motor vehicles. As Aussies began to hibernate from the virus at home, national new vehicle sales posted their weakest March month in 11 years.
Aussie builders and construction workers are in for a tough time over the next few months. According to the AiGroup, construction businesses reported that, “Economic uncertainty due to the COVID-19 pandemic has dampened client confidence, increased risk aversion and lowered demand. Some businesses reported supply disruptions due to COVID-19 measures, particularly for imported building materials.”
Retail trade – February
‘Final’ retail trade rose by 0.5 per cent in February, above the preliminary Bureau of Statistics (ABS) estimate of 0.4 per cent. The lift in spending follows spending declines of 0.3 per cent in January and 0.6 per cent in December. The annual growth rate fell from 2.0 per cent to 1.8 per cent – the weakest rate in over 2 years.
Non-food retailing rose by 0.2 per cent in February following a 0.8 per cent decline in January. But the annual growth fell from 1.4 per cent to 1.0 per cent – the slowest growth rate in over 2 years.
Sales by chain-store retailers and other large retailers rose by 0.3 per cent in February to be up 1.8 per cent from a year ago – the weakest annual growth rate in over 2 years.
The share of online retailing rose from 5.6 per cent to 6.6 per cent over the year to February.
Spending rose most in February: Department stores (up 3.1 per cent); Pharmaceutical, cosmetic and toiletry goods retailing (up 2.2 per cent); Hardware, building and garden supplies retailing (up 1.3 per cent); and Supermarket and grocery stores (up 1.1 per cent).
Spending fell most in February: Clothing retailing (down 3.1 per cent); Footwear and other personal accessory retailing (down 2.4 per cent); and Newspaper and book retailing (down 2.0 per cent).
Across states/territories in February: Spending rose the most in Western Australia (1.2 per cent), followed by the ACT (up 1.1 per cent), Queensland (up 0.8 per cent), Victoria (up 0.5 per cent), South Australia (up 0.4 per cent). Tasmania and NSW were broadly unchanged. Spending in the Northern Territory fell by 0.7 per cent.
New vehicle sales - March
The Federal Chamber of Automotive Industries reported: “The March 2020 market of 81,690 new vehicle sales is a decrease of 17,752 vehicle sales or -17.9 per cent on March 2019 (99,442) vehicle sales. March 2020 had the same number of selling days as March 2019 (25.5) and this resulted in a decrease of 696.2 vehicle sales per day.”
“The Passenger Vehicle Market is down by 7,222 vehicle sales (-24.9 per cent) over the same month last year; the Sports Utility Market is down by 6,489 vehicle sales (-14.2 per cent); the Light Commercial Market is down by 3,326 vehicle sales (-15.5 per cent); and the Heavy Commercial Vehicle Market is down by 715 vehicle sales (-21.7 per cent) versus March 2019.”
Sales across states and territories over year to March: NSW (down 16.4 per cent); Victoria (down 21.3 per cent); Queensland (down 20.2 per cent); South Australia (down 27.9 per cent); Western Australia (down 14.4 per cent); Tasmania (down 21.2 per cent); Northern Territory (down 33.5 per cent); ACT (up 77.0 per cent).
The biggest selling vehicle in March was the Toyota Hi-Lux (3,556) from the Ford Ranger (3,108) and Toyota RAV4 (2,991).
The rolling annual total of new vehicle sales in March was 1,027,690, down 9.1 per cent on the year after falling 8.1 per cent in the year to February. Passenger car sales fell by 17.6 per cent on the year with SUVs down 2.6 per cent and “other vehicles” down 9.8 per cent.
In the year to March, SUVs accounted for a record 61.7 per cent of combined SUV and passenger vehicle sales.
Services Purchasing Managers’ index - March
The ‘final’ CBA/IHS Markit Services Purchasing Managers' Index fell from 49.0 points in February to a record low 38.5 points in March. Any reading below 50 indicates a contraction in activity.
According to the CBA and IHS Markit, “The global outbreak of the coronavirus disease 2019 (COVID-19) weighed heavily on the Australian service sector in March, with the latest PMI data showing a slump in business activity. This was concurrent with a deepening downturn in new sales, led by a record fall in new overseas business. With backlogs of work falling markedly, firms reduced jobs further. Business confidence also fell to a survey-record low, while price pressures moderated.”
Performance of Construction - March
The Performance of Construction index (PCI) fell by 4.8 points to 37.9 points in March – the lowest level since May 2013. A reading below 50 points indicates construction activity is contracting.
Construction activity (down 6.0 points to 39.1 points) and, new orders (down 10.3 points to 35.4 points) fell by the most. Construction employment fell by just 0.5 points to 36.4 points, depressed at the second lowest level in 7 years.
By sector, house building lifted by 0.3 points to 53.2 points in trend terms, but apartment (down 1.5 points to 31.9 points), commercial construction (down 1.6 points to 35.1 points) and engineering activity (up 2 points to 42.2 points) all contracted in March.
According to the AiGroup, “The Australian PCI® suggests that house building activity has remained resilient in 2020 to date, although contacting new orders and the sector’s vulnerability to the deteriorating COVID-19 situation will weigh more heavily on conditions in coming months. In other sectors, activity is experiencing on-going declines amid a weak flow of work opportunities and new invitations to tender.”
And, “Respondents in the Australian PCI® reported further price rises for imported materials and subsequent pressure on margins due to the weak Australian dollar. Businesses are bracing for worsening construction conditions as virus-related impacts on economic activity and demand increase.”
What are the implications for interest rates and investors?
The next preliminary retail trade data from the Bureau of Statistics is not due until the week of April 20. The nation’s statisticians are having some difficulty obtaining spending data – with trend series data unavailable in February – due to COVID-19 associated disruptions.
But more timely data on consumer spending patterns is available from both the Commonwealth Bank (CBA) and Kepler Analytics. According to Kepler Analytics data, shopping centre foot traffic fell by 56 per cent in the week ended March 29 from a year ago. And around 55 per cent of stores had closed nationally by March 31. Retailers have also acted to cut fixed costs, such as wages and rent. And some retailers are remaining open by focusing on online sales. Of course, the announced JobKeeper government wage subsidy is also designed to cover store wages – where possible – and keep retail employees attached to their jobs ahead of an eventual recovery.
And recent weekly CBA credit &amp; debit card spending shows strong increases in consumer spending on food and alcohol, as well as on household furnishings and equipment. But spending on clothing, transport, recreation and personal care – all deemed “non-essential” due to self-isolation measures – continue to decline.
The slowing in demand for new residential homes is evidenced by the sharp slowdown in new orders for both apartments and houses. Commercial construction new orders declined for a 20th successive month. And engineering new orders also weakened “due to a lack of new contracts to replace completed infrastructure projects”, according to the AiGroup.
CRAIG JAMES is the Chief Economist at CommSec
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Biggest fall in clothing sales in 8 plus years: CommSec's Craig James

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EXPERT OBSERVER
Developers must change their business strategies and pricing for off-the-plan units to avoid insolvency, according to RiskWise Property Research. 
RiskWise CEO Doron Peleg said the selling price of most off-the-plan units should be far more attractive to investors, the majority of off-the-plan buyers, and developers should not expect high property prices.
“In the past three years a few big events have had a major impact on developers and have resulted in bankruptcy,” Mr Peleg said.
“These events include oversupply, credit restrictions, the potential introduction of changes to negative gearing and capital gains tax, construction defects and now coronavirus. The entire business model of developers is based on meeting pre-sales and sales targets and for that they simply need buyers. Therefore, the risk assessment for each project should also address the potential events with a material impact on home buyers and particularly investors.”
He said the best case scenario in areas of oversupply was they simply underperformed the market, but the worst case scenario was they were actually losing money. And these days investors are well aware of these risks.
“For example, while Domain’s House Price Report shows in the 2019 December quarter prices rose 4.3 per cent, this was not the case in suburbs with high oversupply and particularly those affected by construction defects, such as Mascot where prices fell 4.6 per cent to $880,000. In Homebush West, where the Centenary Park building is located, prices also fell 9.3 per cent to $565,000.
“These areas not only have the risk of being in the Danger Zone due to oversupply but also the construction defect risk – and the reputational damage from the construction defects has also carried through to high-rise towers across Australia.
“The number of transactions, which is a key factor when assessing the risk of not meeting pre-sales and sales targets, is often very low. For example, the number of apartment sales in Sydney Olympic Park fell dramatically by 75 per cent following the defects identified in Opal Tower with buyers showing little interest for apartments across the suburb.
“What we are seeing is that new units in high-supply suburbs either resulted in a loss or underperformed the market, even during periods of strong price increases. This has an adverse impact on investor confidence and particularly their expectations regarding the potential price increases of these dwellings.”
Mr Peleg said the introduction of credit restrictions in 2017 completely altered the landscape of the housing market with investors demonstrating their responsiveness to the changes.
Overall investor market share in Sydney decreased between January 2017 to March 2018 from 50.4 per cent to 43 per cent. A similar trend was witnessed in Melbourne with a reduction in investor activity from 39.1 per cent to 34.9 per cent during that period.
“In addition, the potential introduction of the changes to negative gearing and capital gains tax, as RiskWise projected in June 2018, also increased uncertainty and fears due to the creation of two markets (a primary and secondary market) and this led to a major reduction in the sales of units.
“According to the ABS, the number of new homes approved for construction in the month of November 2018, dropped by 2.2 per cent from the previous month and 18.3 per cent from November 2017. Westpac break reported in August 2018 that sales volumes had dropped to a 28-year low.
“The Brisbane unit market is a case study in poor risk management. When a developer pays inflated prices for the land, the risk will be realised, and you will have loss. Even as early as June 2016 in Statistical Area Level 4 (SA4) Brisbane Inner-City, price growth was -1.8 per cent with a massive oversupply of units (17,417 in the pipeline - an addition of 24.5 per cent to the current stock).
“As a developer when you are paying for a piece of land based on the potential selling price of the end product, you must factor in the risks rather than base it on optimistic scenarios. If you do factor in very tangible financial risks, you will see that the fair-value of the lot is lower in comparison to an optimistic scenario. In a vast majority of developments, the lot price is the major variable on the selling price.”
He said the risks included not meeting presales or that sales targets have a major impact on the financial results. Even if the targets are eventually met, the funding costs associated with those targets increase and add up to material amounts. However, even after meeting the presales and sales targets, there’s still a settlement risk that buyers who paid very low deposits could back away from the deal completely if there was a significant reduction in the pre-settlement valuation, and cash flow issues.
Mr Peleg said Covid-19 added another layer of complexity as its significant impact is yet be fully determined.
Meanwhile, there has already been a sharp reduction in auction clearance rates over the past couple of weekends falling to a preliminary rate of 61.3 per cent as of March 22 across the combined capital cities with the final result expected to be in the 50s within a couple of weeks.
The Westpac-Melbourne Institute Index of House Price Expectations Index fell 6.6 per cent in March, the largest monthly decline since February last year.
Risk identification and assessment
“We need to identify and assess the key risks. There are some very obvious and common risks that must be addressed by developers and these are oversupply and inflated selling prices that are included in the financial models of the developers when they make their decision to develop the property,” Mr Peleg said.
“On top of that there are other risks that should be identified by implementing proper risk-management practices. In addition, there are obviously other risks that cannot be foreseen, such as the coronavirus, which create major and unexpected economic shocks.
“The point is that we don’t know and do not expect to know all the potential major events that could occur in the period of at least two years or more (until a developer meets their financial obligations). Many things can happen and what developers need to do is to factor that in and improve risk-management practices to include them in the prices they are proposing.
“Then if they see the discounted pricing, including the risk aspects, is too low – and that others are willing to pay more inflated prices for a lot – they should move on.
“The decision should be very structured, risk based and non-emotional. The first step is risk management, where we need to assess the obvious risks (e.g. oversupply) and the potential risks that are less obvious (e.g. a major economic downturn) and then, based on that, we need to set the price taking into consideration the results of the risk assessment."
Mitigating the risks – develop in the ‘missing middle’
Mr Peleg stressed the importance of risk mitigation by developing properties in popular areas in the middle rings of Sydney and Melbourne, i.e the ‘missing middle’.
“Due to lower supply for house-and-land packages in the missing middle, even when there are some negative shocks, due to limited supply and generally good demand, these shocks are better absorbed with lower price reductions. Another development option in the missing middle is family-suitable units that are more attractive to owner-occupiers looking for larger floor space, lower price per square metre and in smaller building blocks generally close to transport hubs, employment and schools.
“There are actually many areas that have great potential and carry a low risk, it is only a matter of business strategy and proper risk-management practices.”
“Marketing expenses are, in many cases, materially lower for development in the missing middle in high-demand areas where they can be done through the local real estate agents with the standard, up to, 2 per cent commission (as opposed to high commissions required for intrastate and international property marketers).
“And usually in the missing middle, the scale of the development is far smaller which makes them easier to sell.
“The point is developers are at risk of insolvencies and this means they need to mitigate this risk by ensuring they have a sustainable business model, focus on the missing middle ring and address imbalances in the property market.
“Focusing on the missing middle is by far more of a solution than taking the risk of off-the-plan high-rise development.”
DORON PELEG is the <a href="http://www.riskwiseproperty.com.au" target="_blank">CEO of RiskWise</a>
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Apartment developers must rethink their business model: RiskWise's Doron Peleg

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A Camillo, West Australia mortagee home has sold for $235,000.
The sale price is slightly less than sought as the home was listed for $245,000
The house last sold for $200,000 in 2008.
Shane Denniston of The Professionals is marketing the property at <a href="https://www.realestate.com.au/property-house-wa-camillo-132875758" target="_blank">39A Westfield Road</a>.<a class="agent-info__name sc-kpOJdX khYtfc" href="https://www.realestate.com.au/agent/shane-denniston-236716?cid=agent-profile-page%7Cbuy:pdp:contact-side-panel"> </a>
The five bedroom, two bathroom house is set on a 773 sqm block.
The abode was built in 1986 and is according to the listing, "a handy man's dream, with work to be completed throughout the home."
It holds an outlook over Westfield/Heron reserve and is close to both the train station, and Kelmscott shopping centre.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a house in Camillo is $215,000 according to CoreLogic data.
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