<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.

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"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."

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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.

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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.

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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.

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Joel Robinson

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

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

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S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

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The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

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With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

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Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

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

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

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>
Home loans jumped in February by the highest level in 14 months, the Australian Bureau of Statistics said with lending activity slowly moving higher.
Adding to the signals that near-record low interest rates are underpinning the property market, the number of dwelling loans rose 2% from January.
It concluded a four-month run of declining approvals. 
Fixed rate loans rose from 12.2 per cent of all loans to 13.5% in February and the average home loan across Australia stood at $298,500 in February, up 3.6% on a year ago.
Loans to owner?occupiers rose by 2.0% in February which was slightly above market expectations of a 1.5% increase.
Housing Industry Association chief economist Harley Dale said housing finance outcomes presented a mixed bag of results in the month of February 2013, but overall the changes had been in the right direction.
“We’re still not firmly on the path back to the healthy levels of new home lending which would be consistent with the strong residential construction recovery the economy and population requires,” he said.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/04/hiaapril15one.gif" title="Click to enlarge"><img src="/images/stories/2013/04/hiaapril15onethumb.gif"></a>
Source: HIA
Westpac noted that after a patchy fourth quarter and a weak start to 2013, finance approvals posted a better result in February.
It also noted January's 1.5% decline was revised to just a 0.3% dip.
"The detail was mostly positive as well, the main exception being around first home buyers," it noted with changes in state government support for first home buyers and the end of an associated pull forward in demand still having a marked impact.
"The main weak spot was still around first home buyers with the number of loans to this segment slipping a further 1.5% in February to a new cycle low.
"We estimate it is the lowest seasonally adjusted read since March 2004," Westpac noted. It said that overall the data concurred with recent auction and price data suggesting the housing market recovery quickened in early 2013.
But Westpac warned the gains were being driven by upgraders and investors with first home buyer activity very subdued.
"If this pattern continues, overall momentum may fade particularly for upgraders," Westpac suggested.
The state by state detail showed a broad-based rise across the big states: NSW +2.2%, Victoria +1.7%, Qld +4%mth, and WA +2.1%. But SA was down 2.9%. CBA noted while overall lending activity was moving upwards, FHB activity has "collapsed" over recent months.
"FHB’s made up only around 14.4% of the market which is the lowest level since June 2004," CBA noted. 

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jchancellor-FAypfDUnLy

Housing finance on the rise excepting for first home buyers

<html><body>
ANZ have announced that its standard variable home loan interest rate will remain unchanged at 6.4% per annum after their monthly interest rate review today.
 It follows the RBA announcing at its April meeting that it would keep the cash rate steady at 3%.
The Big Four have all continued to maintain roughly similiar rates with NAB still the lowest of the four at 6.38%, followed by Commonwealth Bank and ANZ at 6.40%.
Westpac has a standard variable rate of 6.51%.
All four banks reduced their standard variable interest rates in December last year following the Reserve Bank of Australia cutting its cash rate the same month by 25 basis points to 3%.
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gdwyer-vyxhMDDW5L

ANZ sticks to 6.4% standard variable rate

<html><body>
The unexpected rise in the unemployment rate in March may spur the Reserve Bank to begin cutting rates again, but not immediately, says Macquarie senior economist Brian Redican.
The unemployment rate increased by 0.2 percentage points to a two-and-a-half year high of 5.6% in March.
Redican attributed to the rise in unemployment – 36,000 jobs were lost over the month – to a weakening in the jobs market possibly due to a slowdown in mining investment.
He told AAP the March figures would be added the “column suggesting further rate cuts may be needed”.
However, he said the <a href="tags/rba" target="_blank">RBA</a> was unlikely to cut the cash rate on one set of numbers alone.
Redican says the cash could fall as low as 2%.
The most recent Bloomberg survey of economists has Macquarie Bank tipping a cash rate of 2% by the end of the year, with a rate cut pencilled in for May.
HSBC chief economist Paul Bloxham says the labour force survey can be very volatile with the past couple of months “a clear example of this” and also points out that the ABS is 95% confidence the unemployment rate was between 5.4% and 5.8%.
Bloxham says the trend numbers “probably give a clearer read”.
“They showed that employment rose by 12,600 jobs in March, the unemployment rate was steady at 5.5% and the participation rate was steady at 65.1%,” he says.
“Overall, the labour market remains loose, with an unemployment rate above our full employment estimates of around 5.0%.
“This leaves the RBA with scope to cut rates if they need to. But the question is: will they need to?
“Other indicators suggest that the rate cuts they have already delivered are having many of the desired effects.
“Retail sales rose strongly in January and February. Consumer sentiment rose sharply in February/March and, although it retraced a little in April, is still above average. Housing prices have been rising solidly in recent months. The housing construction upturn has continued,” he says.
Bloxham says a loose labour market does provide the RBA with scope to ease further if it needs to, but does not believe the RBA will need to.
“We expect some tightening of the labour market in coming months as the interest-rate sensitive sectors gain pace.”
ANZ's economics team agreed with Bloxham.
“[The March unemployment figures] firmly suggest that the RBA will be in no rush to dispose of its easing bias,” says ANZ in an economic note.
“We and the Bank have been looking for the unemployment rate to rise slowly and the trend labour force data clearly show this.
“As a result, the figures are also unlikely to be enough to result in the RBA acting on its easing bias for the time being. The low level of capacity utilisation in <place><country-region>Australia</country-region></place> suggests that an improvement in the unemployment rate is not expected in the near term.”
“The RBA has communicated that they expect the labour market to weaken, with the unemployment rate rising modestly over 2013.  The March employment data is in line with this view.  We expect that the cash rate will remain on hold in May and over 2013,” said CBA economist Michael Workman.
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lschlesinger-FZcF9M3vE6

RBA likely to resume rate cuts sometime in 2013 after unemployment rise: Macquarie’s Brian Redican

<html><body>
There was a small increase in the number of home loan borrowers more than one month behind in their mortgage repayments in the final quarter of 2012, according to the latest Fitch Dinkum Index.
The index monitors underlying Australian residential mortgage-backed securities – a form of funding where loans are bundled together and sold to institutional investors by lenders.
The percentage of loans between 30 and 59 days in arrears increased by 20 basis points in the December quarter from 0.49% to 0.69%, despite the RBA rate cut in October 2012.
This led to a marginal increase in 30+ delinquencies in the Australian prime RMBS sector to 1.46% of mortgages in the fourth quarter of 2012 compared with a rate 1.36% in the third quarter of 2012.
<img alt="fitchapril10one" height="170" width="470" src="/images/stories/2013/04/fitchapril10one.jpg">
“The stable environment and the significant number of [LMI] claims in the fourth quarter of 2012 have helped reduce 90 plus days arrears by 8 basis points to 0.55%, the lowest level since December 2010,” says Fitch.
With a stable outlook on Australian macro-economic conditions, Fitch expects arrears rates in 2013 to remain similar to what they were 2012.
Fitch expects a seasonal increase in arrears due to holiday and Christmas spending to be evident in the first quarter of 2013, although this will be partially mitigated by the December 2012 cash rate cut and some continuing impact from the October 2012 decrease.
“Australia’s economic conditions remain stable, as over the past 20 years. Low interest rates and over 20 years of economic growth have resulted in a rise in real estate values and a significant build-up in household debt,” says Fitch.
“An economic downturn, coupled with high unemployment and/or rising interest rates, would affect the ability of individuals to service debt.”
Low-doc arrears rates increased from 1.66% to 1.72% for borrowers more than a month behind on mortgage repayments.
Around 90% of securitised home loans are prime, full-doc mortgages with around 7% prime low-doc and the remainder non-conforming loans.
The Dinkum index is compiled by Hai Duong Le, James Zanesi, and Natasha Vojvodic.
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Mortgage arrears rates rise slightly in final quarter of 2012: Fitch

<html><body>
Demand for fixed-rate home loans surged in March to its highest level since the GFC, according to Mortgage Choice loan application figures.
Fixed rate demand rose 9.17 percentage points from less than one in five borrowers (18%) in February to more than a quarter (28%) of borrowers in March.
This is the highest proportion to fix their home loan since March 2008 – a disastrous move by those borrowers back then as the RBA, having lifted the cash rate  successively in February and March of 2008 to 7.25%, then proceeded to dramatically cut the cash rate to 3% between September 2008 and May 2009 to stave off the worst of the GFC.
Borrowers on fixed-rates were left with much higher mortgage repayments than equivalent variable borrowers, as mortgage rates tumbled.
Given, the cash rate is already at 3% and not expected to fall much further, fixed-rate borrowers are unlikely to burned again.
Yesterday, Citibank announced cuts to its <a href="/news">two-year and three-year fixed rate home loans</a> with borrowers able to secure one-year and three-year fixed-rate below 5%.
The Mortgage Choice figures show that Queensland borrowers remain the most conservatively minded with demand for fixed-rate home loans rising in the Sunshine State from 14% to 37% from February to March.
“Queenslanders continue to lead the preference for fixed rate loans, month on month. However, the biggest movement was in South Australia where demand for fixed rate loans rose by 14.1 percentage points to hit 32.26% in March,” says Mortgage spokesperson, Belinda Williamson
“At the same time, Victorians finally started to catch up to the rest of the country with the uptake of fixed rate loans rising 8.88 percentage points to 19.96%.
“This was followed closely by Western Australia where demand rose by 8.51 percentage points over the month to reach 24.25% and New South Wales, which saw only a marginal increase of 4.57 percentage points to hit 24.51%.”
Williamson warns borrowers to consider all the pros and cons of this loan type before locking in.
“Apart from the often talked about ‘break fee’, which applies if you repay your loan in full or choose to switch loans during a fixed rate loan period, there are other, often lesser known facts about fixed rates to consider when weighing up your loan options,” she says.
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More than one in four fixing their home loan as demand rises to five year high: Mortgage Choice

<html><body>
Citibank has today cut its two-year home loan rate to 4.99% per annum and reduced its three-year fixed home loan rate to 5.14%.
This is the first announced fixed-rate cut in more than two weeks.
The last lender to announce<a href="/news"> fixed-rate cuts was CUA</a>, which cut its three-year fixed-rate to 5.1% on March 20.
A day earlier, Westpac ended its <a href="/news">4.99% two-year fixed-rate promotion</a> pushing this rate up to 5.29% under its package home loan offering.
"Based on recent research, we know that nearly one in three new borrowers locked in a fixed rate on their home loan during March 2013,” says Belen Lopez Denis, head of mortgage marketing at Citibank.
Citibank is offering two other mortgage promotions currently
The bank is offering a free 60-day rate lock which allows customers a guaranteed low fixed rate for 60 days after their application has been submitted, protecting them from rate alterations before their settlement date.
It will also refund the $750 application and switching fee to customers who apply to refinance their current home loan before April 30 2013.
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Citibank cuts two-year fixed-rate home loan to 4.99%

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Interest rate cuts are starting to have an impact on the household sector with the RBA unlikely to lower the cash rate further over the coming months, says ANZ in its latest Australian Weekly Economic report.
The report, edited by senior economist Riki Polygenis and Katie Dean, head of Australian economics, says the most recent economic data – last week’s <a target="_blank" href="https://www.propertyobserver.com.au/land/building-approvals-up-31-in-february-a-material-improvement-hia/2013040460172?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">building approvals</a> figures and <a target="_blank" href="https://www.propertyobserver.com.au/retail/retail-sales-growth-best-since-2001-unless-youre-a-butcher-or-baker-commsec/2013040460169?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">retail trade data </a>- support the RBA’s growing confidence that interest-rate sensitive areas of the economy are responding to stimulatory monetary policy settings.
“In particular, improved consumer confidence appears to be translating into stronger consumer spending, with nominal retail sales growth robust in January and February following three consecutive monthly contractions in late 2012,” says ANZ.
ANZ says these ‘greenshoots’ suggest the RBA is a little more confident that it will not have to act on its easing bias over the next couple of months.
“That said, the RBA remains alert to uncertainties surrounding the transition towards non-mining sources of growth against a backdrop of a high Australian dollar, tight fiscal policy and weak credit growth.
“The next possible window for a rate cut is in June/July after the federal budget, but this will depend critically on how the labour market evolves and whether we see a turnaround in key leading indicators of non-mining investment (such as next week’s NAB survey data and the capital expenditure release in late May)," says ANZ.
The report notes a recent client survey, which found that activity in the residential housing market has improved with developers reporting increased levels of sales and inquiries.
“Residential construction activity has also picked-up, with firms in this sector anticipating an improvement in revenue growth over the second half of this year.
“In contrast, weak fundamentals in the commercial property sector (office and retail) continue to constrain investment in this sector. However, sales activity remains robust due to strong interest in prime retail and office assets, particularly from offshore investors.”
Currently the cheapest home loan rate appears to be a one year fixed-rate home loan of 4.69% offered by non-bank lender eMoney, though it does require a hefty 25% deposit. 
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Blackboard special
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.01%
</td>
</tr>
<tr>
<td width="134" valign="top">
State Custodians
</td>
<td width="124" valign="top">
State Custodians Peak Performance Offset (Refinance Only)
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.35%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
UHomeloan for refinancing
</td>
<td width="97" valign="top">
5.12%
</td>
<td width="116" valign="top">
5.12%
</td>
</tr>
</tbody></table>
 Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
eMoney
</td>
<td width="123" valign="top">
Pro Pack 75
</td>
<td width="95" valign="top">
4.69%
</td>
<td width="114" valign="top">
5.40%
</td>
</tr>
<tr>
<td width="137" valign="top">
Quick Direct
</td>
<td width="123" valign="top">
Package one year fixed
</td>
<td width="95" valign="top">
4.79%
</td>
<td width="114" valign="top">
5.46%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeLoan for refinance fixed rate one year
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.03%
</td>
</tr>
</tbody></table>
 
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
ME Bank
</td>
<td width="131" valign="top">
Member Package SMHL Standard Home Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.49%
</td>
</tr>
<tr>
<td width="131" valign="top">
Teachers Mutual Bank
</td>
<td width="131" valign="top">
Teachers Fixed Option Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.90%
</td>
</tr>
<tr>
<td width="131" valign="top">
AMP
</td>
<td width="131" valign="top">
Select Package Residential Fixed 3 yrs 100k+
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.54%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>.
 
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ANZ says rate cuts starting to have a positive impact: a guide to lowest standard and variable mortgage rates

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Economists have all but ruled out a rate cut on May 7, the next time the RBA board meets to decide on interest rates.
Of the 25 economists surveyed this week by Bloomberg, 22 expect the cash rate to remain unchanged.
Those tipping a rate cut are Citi, Macquarie and BNP Paribas economists.
Of those economists surveyed this week, 15 out of 25 expect no rate cut in June either.
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No rate cut in May say economists: Bloomberg

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ING Direct’s much-touted position as Australia’s fifth biggest lender behind the four major banks and their subsidiary brands could come under threat from a surging Macquarie Bank eager to pick up a greater share of the mortgage market.
While <a target="_blank" href="companies/macquarie-bank">Macquarie Bank</a> has more than doubled its home lending arm in the space of a year, albeit from a low base of less than $2.8 billion to in excess of $6 billion, ING Direct’s $37 billion mortgage book has hardly expanded in the past year, APRA banking figures show.
APRA figures show an ING Direct loan book of $37.5 billion as of February 2013 compared with a $37.2 billion loan book 12 months ago.
Macquarie also has a securitised mortgage portfolio of $5.9 billion (ING Direct has no wholesale lending arm) which it using to help fund mortgage lending in Mark Bouris’ fast growing Yellow Brick Road franchise business of around 150 offices, in which it also has an 8.3% holding.
Macquarie Bank, a subsidiary of investment banking giant the Macquarie Group, quit the mortgage market in the wake of the <a target="_blank" href="?option=com_googlesearch_cse&amp;q=Macquarie%20Bank">GFC</a>. Prior to the crisis it was predominantly a wholesale mortgage lender, providing funding for the likes of Virgin Money, via its PUMA securitisation program.
While Macquarie clearly has some way to go before it has a loan book to rival that of ING Direct it has a bigger source of retail deposits to lend against - $35.6 billion compared with ING Direct’s $31.7 billion and a stronger domestic balance sheet with local assets totalling $59.6 billion compared with ING Direct’s $49.2 billion.
Macquarie is not hiding its aspirations in the mortgage space.
As part of its annual operational briefing in February, Macquarie Group CEO Nicholas Moore noted the group’s expanding $11.1 billion mortgage portfolio and that “originations are expected to continue to grow significantly in the 2013 calendar year”.
<a href="/news">Macquarie Bank’s deal to fund Yellow Brick Road</a> was highlighted by Business Spectator’s Robert Gottliebsen earlier this year, who wrote that a mortgage and deposit war could erupt on the back of the cheap funding available to the Yellow Brick Road franchise network.
Tale of the tape – Feb 2013
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="253" valign="top">
Macquarie
</td>
<td width="274" valign="top">
ING Direct
 
</td>
</tr>
<tr>
<td width="253" valign="top">
Loans to owner occupiers $3.4 billion
Loans to investors $2.86 billion
Securitised loans: $5.9 billion
Total deposits $35.6 billion
Total resident assets $59.6 billion
 
</td>
<td width="274" valign="top">
Loans to owner occupiers $27.8 billion
Loans to investors $9.7 billion
Securitised loans: $0 billion
Total deposits $31.7 billion
Total resident assets $49.2 billion
</td>
</tr>
</tbody></table>
Source: APRA
 
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There are other obvious indications that Macquarie Bank is ramping up its mortgage lending.
The Australian Financial Review reported this week that Macquarie Bank had almost doubled the number of business development managers (BDMs) from 13 to 21 who work with its mortgage broker distribution channel – not far below the average of 25 to 35 BDMs employed by the major banks.
Nearly all of Macquarie Bank’s mortgage lending is done through the mortgage broking channel.
In addition The AFR reports that Macquarie upped its commission to mortgage brokers last year.
Combine this with its competitive mortgage offerings and the bank has soared up the top lending charts of Australia’s biggest mortgage broking franchise, Mortgage Choice, accounting for 3.9% of home loans sold by Mortgage Choice in March, up from 2.5% in February.
Macquarie is now Mortgage Choice’s 8th biggest lender with CEO Michael Russell telling the AFR it has an “insatiable” appetite to expand home loans.
ING Direct reported a net profit after tax of $276.9 million for the 2012 calendar, down 9% from last year.
In June last year, Lisa Claes, executive director of direct business at ING Direct, told Property Observer the bank was not driven by market share targets, “but by a sustainable growth proposition”.
“We want to grow our mortgage book responsibly – we are happy with where we are, but we are not complacent,” she said.
ING Direct’s offers variable home loans starting from 5.66% (for loans greater than $250,000) and a three-year fixed home loan at 5.19%.
Macquarie Bank offers variable home loans starting from 5.44% (this includes a 1.01% discount off the standard variable) and a three-year fixed home loan at 5.39%.
 
 
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Macquarie Bank lining up to take ING Direct's fifth banking pillar crown

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The Bank of Queensland (BoQ) will refund thousands of customers around $12 million after they paid too much interest on their home loans over a number of years. 
Mortgage customers were overcharged due to a computer error that resulted in a failure to link Mortgage Offset Accounts (MOA) to some eligible home loan accounts. 
An offset account is a savings account that is linked to a person's home loan account. 
Any money in the offset account reduces the amount of interest payable on the linked home loan. 
“In this case, BoQ failed to link some offset accounts to home loan accounts, which meant that money held in those offset accounts did not reduce the interest payable on the home loan accounts. As a result, borrowers paid more in interest than they should have done,” explained ASIC. “Current estimates are that the error impacted approximately 6,000 customers and total refunds will be in the order of $12 million,” said ASIC. 
The bank discovered the problem and reported it to the corporate watchdog. “BoQ has agreed to appoint an independent expert to review its remediation processes to ensure that all affected customers are identified and appropriately compensated, and BoQ's compliance systems are adequate to prevent a similar error occurring in future,” said ASIC. ASIC acknowledged the cooperative approach taken by BoQ in relation to this matter. BoQ has already compensated some customers and will ensure that the remaining affected customers are contacted. Customers affected by the error will be advised of their compensation, which will take place over the next 10 months. 
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