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?

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
As expected the Board of the Reserve Bank decided to lower the cash rate by 25bps to 1.5% at its August Board meeting.
The key final paragraph which indicated the Board had no bias: “Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.”.
This is not surprising since the same policy approach was taken following the May meeting when the Board also cut by 25bps.
It is worth recalling that no bias was indicated at the following June meeting but was restored at the July meeting with a cut in August following.
Consequently, this decision to exclude a bias should not be seen as ruling out another move at the next ‘live’ meeting in November.
As we have been indicating to our customers the key factor behind the cut was low inflation.
In May, the Bank lowered its underlying inflation forecast for 2016 from 2.5% to 1.5% and lowered its forecast for 2017 from 2.5% to 2%.
These sharp changes, for an inflation targeting central bank, were extremely significant and certainly laid the foundation for today’s move.
Not surprisingly, therefore, the commentary around inflation remained downbeat with recent data confirming low inflation and the outlook being for low cost pressures remaining the case for some time.
The most fertile debate around prospects for this meeting centred on housing.
There was some private sector data that indicated that house prices had responded sharply to the May rate cut, potentially posing a risk to today’s decision.
The Governor’s statement has dedicated a particularly long paragraph to the housing market.
In July house prices were described as having “risen again in many parts of the country in recent months”.
However, in today’s statement, he is more downbeat, commenting that: “dwelling prices have been rising only moderately over the course of this year”.
He also notes that the pace of lending for housing has slowed this year. Finally he concludes that “the likelihood of lower interest rates exacerbating risks in the housing market has diminished”. We can conclude from this paragraph that the Bank sees limited risk from the rate cut to a resurgence in house prices.
Commentary on the exchange rate remains the same as last month with “an appreciating exchange rate could complicate this [rebalancing in the economy]”.  So there has been no attempt to talk down the currency with the power of lower rates doing the real job.
Confirmation that the recent slowdown in jobs growth has affected the Board’s thinking comes with the labour market indicators continuing to be described as “mixed … but consistent with a modest pace of expansion in employment”.
There is no explicit clarification as to whether this modest pace will be sufficient to further bring down the unemployment rate. We will get a better indication of the Bank’s likely revised outlook for the unemployment rate in the Statement on Monetary Policy on Friday.
Internationally the focus continues on China with an additional comment that “the underlying pace of China’s growth appears to be moderating”.
The outlook
Since the RBA surprised us with the May rate cut we had expected a follow up move in August.
When we saw the dimension of its inflation forecast changes that follow up move became even more likely.
The only barrier to such a decision was going to be the June quarter inflation report which would provide evidence as to whether the Bank had over-reacted to the shock in the March quarter report. While the June quarter report indicated that inflation was not as weak as in March it still confirmed that most of the disinflationary pressures apparent in March had persisted.
Our current view is that a further cut in November is not likely. With interest rates very close to their effective floor we expect that the Bank will be very patient in gathering information around the likely growth and inflation outlook. From our perspective the near term prospects for the real economy appear to be encouraging with lead indicators for the labour market improving and the lift from housing construction and services exports being sustained.
For us the real issue will be the environment in 2017 when the housing cycle will be in reverse; jobs growth may have cooled; global growth, particularly in this region, will have slowed further; and Australia’s interest rates may still be attractive to international investors. It is likely that any change in our current forecast that rates have bottomed will have been motivated by clearer prospects of those developments.Wee expect that the RBA will be similarly cautious with their assessment.
It is a little early to draw those conclusions given the unusually high degree of uncertainty, particularly around the global environment, but suffice to say that the risks to the rate outlook, particularly in 2017, are firmly to the downside. 
 
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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bevans-rYk9SxEa4r

No surprise the RBA cut: Westpac economist Bill Evans

<html><body>
STATEMENT BY GLENN STEVENS, GOVERNOR: MONETARY POLICY DECISION
<div>
<div class="rss-mr-content">
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. Actions by Chinese policymakers are supporting the near-term growth outlook, but the underlying pace of China's growth appears to be moderating.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
Financial markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest that overall growth is continuing at a moderate pace, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed, but are consistent with a modest pace of expansion in employment in the near term. 
Recent data confirm that inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished. 
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.
</div>
</div>
<div class="box-enquiries"> </div>
 
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po-LsXgBTHBmX

Diminished low rate risks of housing boom: RBA Governor Glenn Stevens' August 2016 meeting statement

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The RBA cash rate decision came out at 2.30 today with the historic decision to further cut rates to 1.5%.
"At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016."
The Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.
<div class="box-enquiries">
<div>
<div class="rss-mr-content">
The bank board noted supervisory measures have strengthened lending standards in the housing market.
"Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments.
"The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
"Growth in lending for housing purposes has slowed a little this year.
"All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished."  
</div>
</div>
</div>
CoreLogic head of research Tim Lawless said a slowdown in dwelling value growth may have made it easier for the RBA to cut the cash rate for the second time this year, however the primary reason for rates moving lower was likely to be the low inflation reading over the June quarter and the stubborn strength of the Aussie dollar.  
"CoreLogic’s hedonic home value index reported a 6.1 percent annual rise in capital city dwelling values over the year ending July, which is the lowest rate of annual growth since September 2013 and substantially lower than a year ago when dwelling values were rising at almost double the pace," he said.
"The annual trend of growth in Sydney has more than halved over the past 12 months, falling from 18.4 percent in July last year to 9.1 percent over the past twelve months. 
"Presuming the cash rate cut is passed on to mortgage rates, there is likely to be a renewed level of scrutiny on the housing market, with policy makers wary of a reversal in the slowing housing market growth trend. 
"A resurgence of growth could trigger a new round of regulation from APRA aimed at limiting growth in investment lending and/or tightening loan to valuation ratio requirements for lenders.  The latest interest decision is likely to keep a base level of demand across the housing market, however other factors such as affordability constraints, higher supply levels, tighter lending conditions and weak rental markets are likely to see growth conditions continue moderating back to more sustainable levels."
LJ Hooker chief executive officer Grant Harrod said the shortage of stock had underpinned price growth in the NSW and Victorian capitals over the past quarter with CoreLogic reporting Sydney’s median house price increased 5.6 percent in the quarter to June, while Melbourne rose 3.5 percent.
“There’s a sharp lack of stock on the East Coast. Auction results in Sydney and Melbourne have been consistently north of 70 per cent showing the buyer demand is still very healthy,” he said.
“We’re now a month away from the peak selling season and the RBA’s move will motivate buyers even further. Most pundits thought Sydney and Melbourne’s price growth would slow over the year – especially over winter. But very few anticipated the levels of new stock would be so low.
“There’s plenty of room in the market for sellers wanting to list now; more listings will actually bring greater levels of sustainability to the market."
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jonathanchancellor-7SQnKwU6yx

RBA cuts interest rates at its August 2016 meeting

<html><body>
Market analysts are polarised about the the future direction of monetary policy, according to the finder.com.au comparison website survey. 
More than half of the experts (56 percent, or 23/41) in the <a href="https://finder.us9.list-manage.com/track/click?u=cc5e9bce699fa1d71a67cf499&amp;id=1e7bd1b91e&amp;e=58cd8ffd03">finder.com.au </a>Reserve Bank Survey, the largest of its kind in Australia, believe the Reserve Bank will slash the official cost of borrowing at today’s board meeting. In a strongly divided result, 44 percent (18/41) are predicting the cash rate will hold at 1.75 percent. 
However, of those who believe the cash rate will remain unchanged, the majority of these experts (16/18, 89 percent) are predicting a cash rate cut before the year is out. November is tipped as the month we can expect this.  
The majority of experts (58 percent) predict the cash rate will bottom-out at 1.50 percent this cycle. However, only two experts who weighed in on the cash rate cycle predict that it won’t fall lower than its current rate of 1.75 percent. 
Some experts are starting to consider the possibility of rates falling lower than 1.5 percent, with 18 percent predicting the cash rate to bottom-out at 1.25 percent. A further seven economists are predicting the rate to fall even lower this cycle, with Jordan Eliseo of ABC Bullion predicting the cash rate to hit 0.50 percent before it starts to rise, and Angus Raine of Raine &amp; Horne predicting an eventual low of 0.25 percent.
Here’s what our RBA expert panel had to say:
Jordan Eliseo, ABC Bullion (Cut): "It's a close call but we think the RBA will cut next week - signifying their intention to arrest the decline in inflationary pressure, which is widespread across the economy today."
Shane Oliver, AMP Capital (Cut): "June quarter inflation data was not low enough to make an RBA rate cut certain, particularly given that recent economic data has been reasonably good. However, on balance we expect that the RBA will move again to help ensure that inflation expectations do not become entrenched below 2 percent as has been the case in several other countries, so that there is reasonable confidence that inflation will move back into the target zone in a reasonable time frame and to head off a rebound in the $A that will likely follow if it doesn’t cut again."
Dr John Hewson, ANU (Hold): "They will wait and see low inflation number confirmed."
Peter Munckton, Bank of Queensland (Hold): "The RBA are happy with current level of rates." 
Steven Pasas, Bank Of Sydney (Hold): "CPI came in higher than expected."
David Bassanese, BetaShares (Cut): "Annual underlying inflation has been confirmed as running 0.5 percent lower than the RBA expected 6 months ago."
Kishti Sen on behalf Richard Robinson, BIS Shrapnel (Hold): "No need to cut as economic growth is good, unemployment rate is stable and CPI likely to rise over next year as petrol prices rise. The RBA also needs to keep some policy bullets up its sleeve for when economy slows in the wake of coming residential downturn." 
Michael Blythe, CBA (Cut): "Low inflation."
Dr Andrew Wilson, Domain Group (Hold): "Inflation low but steady and other economic indicators slightly more positive recently  - will likely keep powder dry but still a solid case for a cut."
Scott Morgan, Greater Bank (Hold): "The evidence for a rate cut is not compelling enough at this stage. A rate change is unlikely to fix the factors influencing low inflation. In some respects, low inflation is a global issue. To pull the trigger on a rate cut now is wasted ammunition." 
Dr Mark Brimble, Griffith University (Cut): "With inflation remained well below the RBA's target range, a building range of head winds (including the expected large scale job losses from heavy manufacturing next year and a stubborn currency) together with APRA's intervention in the credit markets beginning to impact, the RBA has a close call to make, but is likely to want to get ahead of the market and cut rates to offer further support to the economy."
Atul Narang, HashChing (Cut): "The annual inflation is at just 1 percent, the weakest annual rise since 1999. It is well below RBA's target range of 2-3 percent so there is a strong chance of a rate cut. RBA's expectation that underlying inflation will be below 2-3 percent range until mid 2018 is based on the assumption that interest rates would fall to 1.5 percent." 
Peter Haller, Heritage Bank (Hold): "The inflation rate is sufficiently high to permit the RBA to stay on hold for now." 
Shane Garrett, HIA (Cut): "Inflation is at a low level, giving the RBA more room for flexibility on rates." 
Paul Bloxham, HSBC (Cut): "Inflation is too low." 
Alex Joiner, IFM Investors (Cut): "Inflation remains consistent with further easing, the question of timing is still open and the RBA may choose to delay until later in the year given the growth outlook has not deteriorated materially as yet." 
Robert Montgomery, Infrastructure Partnerships Australia (Cut): "The RBA will be hesitant to push the cash rate lower than it already is, however the June quarter inflation figures are well below the RBA’s target band of 2-3 percent, making an August rate cut likely." 
Michael Witts, ING Direct (Cut): "The inflation print and the slightly weaker domestic economy together with the higher AUD provides scope for the RBA to adjust the cash rate."
Leanne Pilkington, Laing+Simmons (Cut): "It’s a line-ball decision that really could go either way. In the end, with inflation at its weakest in nearly 20 years, we believe the RBA will move to drop the cash rate." 
Nicholas Gruen, Lateral Economics (Hold): "It's consistent with its previous hesitancy to cut even in the presence of its own forecasts of inadequate growth." 
Lynne Jordan, Liberty (Cut): "The Reserve Bank’s cash rate decision hinges on inflation, housing and labour market data – and, unfortunately, these indicators are just not leaning in the right direction to constitute a hold. The labour market has lost momentum, low wage growth is impacting consumer spending and, just this week, we’ve seen another disappointing report on inflation. RBA action and a rate cut to a new record low, is definitely on the cards in the not too distant future."
Grant Harrod, LJ Hooker (Cut): "The growth of house prices is moderating.  Added to this, inflation is at very low levels and concerns around the global economy should see the RBA cut the cash rate at its August meeting."
Stephen Koukoulas, Market Economics (Cut): "Low inflation and unemployment is too high."
John Caelli, ME (Cut): "Employment data remains soft and inflation remains well below the 2-3% desired band. The Australian dollar is also stronger than what the RBA would like."
Mark Crosby, Melbourne Business School (Hold): "While local inflation remains low the strongest driver of rate changes should remain changes to major central bank settings in coming months."
Emily Dabbs, Moody's Analytics (Cut): "Inflation data for the June quarter indicates that price pressures remain weak. The RBA preferred measure of inflation remains below its 2 percent to 3 percent target range." 
Jessica Darnbrough, Mortgage Choice (Cut): "The latest inflation data was in line with expectations, but low by historical standards. I believe this will provide the Reserve Bank with the incentive they need to cut the cash rate for the second time this year."
Christopher Schade, MyState Bank (Hold): "Economic data has if anything been a little stronger than expected in recent times and overall activity remains OK. While inflation remains low, the labour market appears to be holding up well as does the housing market. These were the three key variables called out by the RBA as most important for their next rate decision in the minutes of the July Board meeting. On balance, these variables suggest the RBA will leave rates on hold, but retain an easing bias as it takes further time to see how the economy develops. That said, it will be a close call." 
Saul Eslake, Economist (Hold): "Because Q2 inflation wasn't materially lower than the RBA had anticipated when it revised its forecasts after the Q1 result (the revision which prompted the most recent rate cut in May), and because other data released since the July Board meeting haven't warranted any downward revisions to the RBA's assessment of the outlook for economic growth. There are downside risks to the outlook for growth and inflation, but the RBA would be better advised holding what "firepower" it still has for a time when the case for using it is stronger."
Alan Oster, Nab (Hold): "It’s line ball decision but the economy in non mining is still doing well as is the labour market.  Inflation remains low but no urgency to cut unlike May."
Jonathan Chancellor, Property Observer (Hold): "The RBA likes to set its own agenda, not follow the herd mentality."
Matthew Peter, QIC (Cut): "The Q2 inflation outturn is consistent with RBA forecasts, which sees inflation remaining below the target band for an extended period. Risks around the flow-on effect of BREXIT, potential slowdown in China, threat to international trade agreements and geopolitical risks pose sufficient reasons for the RBA to cut."
Noel Whittaker , QUT (Hold): "No urgent need to drop."
Angus Raine, Raine &amp; Horne (Hold): "The recent Federal election wait and see approach."
Ken, Sayer (Hold): "We expect a drop in Sep 2016." 
Christine Williams, Smarter Property Investing Pty Ltd (Hold): "Stable employment market, confirmation of government, and stabilised growth in the overall Australian market." 
Janu Chan, St.George Bank (Hold): "Inflation is very low, but it is in line with expectations. If they wanted to follow up the May rate cut with another, they would have done so in June or provided a stronger indication that they were close to cutting. The low inflation outlook keeps alive the chances of a rate cut this year, but given recent RBA commentary, they do not seem to be in a position to lower rates just yet." 
Steven Milch, Suncorp (Cut): "Persistently below target inflation."
Scott Haslem, UBS (Cut): "The issue for the RBA is whether Q2's 'in line' inflation is low enough to out-work the 'implied' 25bp cut in their May SoMP forecasts, or whether the post-UK-leave resilience of both financial markets &amp; global confidence, and the strong dataflow in the US &amp; domestically, leaves the RBA drifting away from their clearer easing bias at the July meeting, back to their 'neutral' post May cut stance. On balance, we believe Q2's CPI is enough to get the RBA across the line for a (final) cut in August, but the lack of downward surprise, &amp; better recent data, makes this a close call."
Nicki Hutley, Urbis (Cut): "Inflation is significantly below the Bank's target."
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RBA August rate cut to be a close call: finder.com.au

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The regional mutual lender Newcastle Permanent has dropped home loan interest rates by up to 45 basis points ahead of the today's Reserve Bank monetary policy meeting.
Newcastle Permanent has reduced its two-year year fixed home loan rate by 5 basis points, its three-year fixed home loan rate by 10 basis points and its four-year fixed home loan rate by 45 basis points. 
All rates are now under 4 percent with the new two, three and four-year fixed rates advertised at 3.69 percent, 3.79 percent and 3.94 percent, respectively. 
All new rates are effective Monday 1 August, the Australian Broker website advised.
Peter Arnold, data insights director at RateCity.com.au, said fixed home loan rates continued to tumble, with more than 600 rate cuts in June and July.
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jchancellor-FAypfDUnLy

Newcastle Permanent drop rates to below 4 percent fixed

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Interest rates are set to hit a new historic low of 1.50 per cent when the Reserve Bank Board meets tomorrow, a RateCity.com.au analysis of over 30 key economic indicators suggests.
The Board will consider of a number of factors including the Australian dollar, growth, the reaction to Brexit, how heated the housing market is and what our neighbours are doing.
However, there are three reasons the bank is more likely than not to pull the trigger.
Peter Arnold, data insights director at <a href="https://www.ratecity.com.au/" target="_blank">RateCity.com.au</a>, said last week’s much-anticipated quarterly inflation figures reflected a sluggish trend – coming in at 1 per cent for the year to June and 0.4 per cent for the quarter.
“The RBA will be inclined to cut rates after Wednesday's sluggish inflation figures because when rates are cut, borrowers theoretically have a little more money to spend, which increases demand – and in turn the price – of goods and services,” he said.
“While the June unemployment figures showed a jump in the number of full-time employees, overall the labour market growth slightly undershot expectations.
“A rate cut tomorrow could help to stimulate growth and make room for more jobs in the market.
“The Federal Reserve’s decision to leave US rates on hold last week puts the pressure on Glenn Stevens to cut rates in August.
“Had the Fed hiked rates in July then in theory the US dollar would be higher and the Aussie dollar lower, effectively doing the heavy lifting for the RBA Board.
“Despite a last-minute drop before inflation figures were released, the relatively-high dollar will also add to the RBA’s woes,” he said.
On top of this, fixed home loan rates continue to tumble, with more than 600 rate cuts in June and July, Arnold said.
“On average, <a href="https://www.ratecity.com.au/home-loans/3-year-fixed" target="_blank">three-year fixed home loan rates</a> are 0.36 percentage points lower than variable rates and the gap between the two is the widest it has been in over a year. This suggests the lenders are anticipating another cut,” he said. 
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Finder.com.au found 600 home loan rate cuts in June and July 2016

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According to the Australian Bureau of Statistics, consumer prices rose by 0.4 percent from the prior quarter and 1 percent over the year to June 30.
The numbers were largely in line with economist projections.
Today’s inflation figures were highlighted by the RBA as key to any decision to cut the rates again.
The yearly rise of 1 percent is the lowest since the 1999 June quarter of 1999 so leaves the door open to a further rate cut this year.
With underlying inflation at 1.5 percent year on year, which is what the RBA especially watches, and still below the target 2 percent to 3 percent, many forecasters still see the case for another rate cut.
The A$ actually jumped on the latest ABS release, but then came back a tad in late morning trade.
Opinions remained divided but the general consensus was echoed by Stephen Koukoulas ‏tweeting: "There's the rate cut locked in for next week."
CommSec also suggested the chances of an RBA rate cut next week have increased after the release of softer than expected 2Q inflation.
CommSec's Craig James then issued an advisory that noted inflation is stubbornly below the Reserve Bank’s 2-3 per cent target band. 
"And importantly it is unlikely the Bank will look to revise the target any time soon. 
"The only way that the Reserve Bank can seek to lift the inflation rate to the target band is by running the economy at a faster rate and that means cutting interest rates. 
"So a rate cut will be on the agenda at the Reserve Bank Board meeting next Tuesday.
"Will a rate cut actually boost growth? It is far from certain, but the Reserve Bank has to try. 
"But the Reserve Bank won’t continue to cut rates if it’s clear that interest rates at super-low levels have become ineffective in boosting demand."
THE ALL GROUPS CPI
<ul>
<li type="square">rose 0.4 percent this quarter, compared with a fall of 0.2 percent in the March quarter 2016. </li>
<li type="square">rose 1.0 percent over the twelve months to the June quarter 2016, compared with a rise of 1.3 percent over the twelve months to the March quarter 2016.</li>
</ul>
 OVERVIEW OF CPI MOVEMENTS
<ul>
<li type="square">The most significant price rises this quarter are medical and hospital services (+4.2 percent), automotive fuel (+5.9 percent), tobacco (+2.1 percent) and new dwelling purchase by owner-occupiers (+0.9 percent). </li>
<li type="square">The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.7 percent), motor vehicles (-1.3 percent) and telecommunication equipment and services (-1.5 percent).</li>
</ul>
 
<a href="/images/2016/07/27/Screen%20Shot%202016-07-27%20at%2011.31.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/27/Screen%20Shot%202016-07-27%20at%2011.31.39%20AM.png" alt="">
 
<a href="/images/2016/07/27/Screen%20Shot%202016-07-27%20at%2011.32.54%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/27/Screen%20Shot%202016-07-27%20at%2011.32.54%20AM.png" alt="">
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Inflation figure leaves door open for August rate cut by RBA

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Non-major lender CUA has amended its lending policies to make it easier for people to access finance for apartment purchases, with the changes targeted at the owner-occupied unit market.
On the whole, these changes are designed to help more apartment buyers to qualify for a CUA home loan, CUA general manager of sales, Andy Rigg advised.
“Some of the changes are also designed to manage the risks from forecasts of an apartment oversupply in some Australian cities in the coming two years,” Rigg said.
The changes include CUA changing its definition for what it considers to be high density apartments.
Last week CUA issued a media release to correct mis-reporting of changes to its apartment loan criteria in Fairfax Media publications. 
The mutual said it had not introduced a policy of not lending for the purchase of apartments of less than 40 square metres.
It indicated that it had been its long-standing policy. 
It did recently amend its definition of a "high density apartment" to apply to buildings with six or more floors or more than 50 apartments.
It had previously classified a high density apartment as one in a complex with four floors or more than 30 apartments.
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How lenders are curtailing their high density apartment block lending

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ING Direct has cut its lowest variable rate home loan for owner-occupiers by 15 basis points. ING’s Orange Advantage loan has been reduced to 3.79 percent, effective today.
They are for owner-occupier loans with a minimum LVR of 80 percent. Fixed rate changes include a rate of 3.69 percent available for a three-year fixed term.
For more information, <a href="https://www.ingdirect.com.au" target="_blank">click here</a>.
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ING drops variable rate to record low 3.79 percent

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GUEST OBSERVER
The minutes of the July monetary policy meeting of the Reserve Bank Board confirmed the importance of next week’s June Quarter inflation report.
The key sentences in the concluding paragraph of the “Considerations for Monetary Policy” section state: “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”
So the minutes clearly leave the door open for another rate cut in August.
But this will depend upon the June quarter inflation report’s estimate of underlying inflation. The upper bound below which a rate cut can be expected is likely to be 0.5%.
Westpac’s forecast for underlying inflation in the quarter is 0.35 percent (up slightly on our preliminary estimate of 0.30 percent) which would support the need for another move given that core inflation would only have risen by 0.55 percent over the course of the first half of 2016, raising a genuine question mark as to whether even the Bank’s current 1.5 percent/yr mid-point forecast for December 2016 could be achieved. A lower result for 2016 would also place their 2.0 percent forecast for 2017 (the bottom of the 2-3 percent target range) in jeopardy.
What are the risks to our forecast and what is the level of June quarter inflation above which the Bank would keep rates on hold?
The tone of the minutes indicates that the Bank may be leaning toward another rate cut and may have a bit more flexibility on the inflation result than we had expected.
It is useful to note the Bank’s own expectation for the print.
In the Statement on Monetary Policy in May, it forecast underlying inflation would print 1.5 percent for the year to June. With nearly 1.0 percent already being reached in the first 3 quarters, we can conclude that the Bank is expecting a 0.5 percent print for underlying inflation in the June quarter. That result would therefore be interpreted by the Bank as being in line with its overall inflation outlook, which is for underlying inflation to print 1.5 percent for calendar 2016 and 2.0 percent for calendar 2017.
The result would provide support for its forecast changes in May and indicate that it had not overreacted to the very low print of the March quarter.
Recall that the May forecasts assumed “market pricing” on interest rates, which incorporated a fully priced second rate cut by early 2017.
I think it is therefore reasonable to conclude that a 0.5 percent print for underlying inflation, although representing a sharp jump from March’s 0.2 percent print would be consistent with a follow up rate cut at the August meeting.
Another way to look at it is that 0.5 percent would still represent an annualised “run rate” of 2.0 percent which is still at the bottom of the 2-3 percent target band.
In the May Statement on Monetary Policy, the Bank noted “Although some temporary factors contributed to the low result, the data indicate that there has been broad based weakness in domestic cost pressures, reflecting low wage growth, heightened retail competition, softer conditions in rental and housing construction markets and declines in the cost of industry inputs such as fuel and utilities.”
Theoretically the pass through from the fall in the AUD should be an offset to these pressures, but there has been only limited evidence of that effect and the fall in the AUD is starting to fade with the currency being broadly stable over the last 12 months – clearly margin squeeze has had a considerable influence on limiting the pass through from AUD depreciation.
Our forecasts for the June quarter expect these trends to be sustained. Lower than expected results across the spectrum of components are consistent, in particular, with low wage pressures and margin squeeze. That stood out in the March quarter result.
Clothing and footwear; processed food; household contents and services and holidays are likely to continue to capture the low wages and retail margin squeeze effects in the June quarter. We have made allowance for those factors in our forecasts.
However, by far the most important driver of the outcome for underlying inflation is likely to be housing.
Because rent and housing construction costs are not volatile and/or impacted by significant one off factors, they are almost always included in the 70 percent of items which make up the trimmed mean – the key measure of underlying inflation. With a total of 15.4 percent in the overall CPI (construction costs, 8.7 percent; and rents, 6.7 percent) these two components represent an effective 22 percent of the trimmed mean – by far the highest weighting of any component.
In recent quarters we have seen a collapse in housing pressures, particularly outside of Sydney and Melbourne.
In the December quarter last year, growth in construction costs slowed from 1.1 percent the year before to 0.1 percent; in the March quarter, we saw a continuation of that weakness, printing 0.2 percent from 0.9 percent the year before.
The slowdown in rents has been more gradual. The December quarter slowed to 0.2 percent from 0.5 percent a year ago and slowed further still in the March quarter to 0.1 percent from 0.4 percent a year earlier.
Housing pressures in the June quarter will be critical for underlying inflation. In our preliminary estimates, we assumed 0.1 percent for rents and 0.2 percent for housing construction. In our final estimate, we have cautiously lifted these estimates to 0.2% and 0.3% respectively, pushing the underlying measure up to 0.35 percent – still comfortably in the “rate cut” zone.
If the underlying result printed above 0.5 percent due to housing, then one combination would be both rents and construction costs printing at 0.6 percent or above. These results would defy a clear slowing trend in rents, and indicate a possible but unlikely sharp recovery in construction costs and builders’ margins. While entirely possible (e.g. construction costs/ margins lifted from 0.9 percent to 1.5 percent between March and June last year), particularly following the lift in house prices (rather than specifically construction costs) in April/May in Sydney and Melbourne, we think the outcome would be unlikely.
Arguably, an unanticipated “spike” in housing costs and rents that offsets the wages/margins forces that have structurally driven down inflation pressures would be an unwelcome outcome for the Bank.
In the event of an upside surprise in the Inflation Report that was largely attributed to a spike in housing costs, the Bank is likely to be more flexible with its ultimate rate decision, but a print above 0.5% would still make it very difficult to justify a cut.
In that event, markets would readily switch their focus to a November cut, expecting some correction to the housing “spike”.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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