<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

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The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

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Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

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>

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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>
The RBA has cut the cash rate by 25 basis points to 3.25% – the lowest the cash rate has been in three years – but borrowers are unlikely to receive the full benefit of the reduction.
A 25-basis-point rate cut would reduce monthly mortgage repayments on a $300,000 variable rate mortgage by around $50 a month.
Passing on 20 out 25 of the basis points on offer, as the Bank of Queensland announced within two minutes of the 2.30pm RBA announcement, equates to only a few dollars fewer a month, although the banks will face a public backlash if they don’t pass on the full rate cut.
Media attention will focus on the deep pockets of the banks and their recent multibillion-dollar profit announcements in the recent reporting season.
The banks will argue that they have to balance the need of shareholders against those of customers and that aspects of their funding mix remain expensive, including funding from household deposits.
The Reserve Bank indicated today the banks are well positioned to secure additional funding.
“Well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis,” said RBA governor Glenn Stevens in the monetary policy decision statement.
It followed comments in the bank's September Financial Stability Review, which noted that “the Australian banking system has remained in a relatively strong position”.
“Pressures in wholesale funding markets have eased since late last year, allowing the large banks to maintain good access to international bond markets during the past six months,” the RBA said.
However, the RBA also noted that banks have reduced their dependence on wholesale funding with a greater reliance on retail deposits to fund mortgage lending.
In his latest banking report, Nomura analyst Victor German said household deposit growth remained strong in August among the major banks, a positive for their overall funding profile, but warned that Nomura’s latest survey of deposit spreads “highlighted that competition for deposits continued to be intense”.
The Australian Bankers’ Association explained in August that banks source their funds from equity investors, depositors and from the short and long-term wholesale markets.
“Deposits and long-term wholesale are the two sources of funds which are now structurally more expensive than they were pre-crisis. Short-term funding and equity are almost back to pre-crisis prices,” it said.
“Banks need to maintain an adequate level of profitability to maintain solid credit ratings which bear directly on the price and availability of funding. Sustainable profitability also provides broader benefits to the community, including employment, salaries and wages, and downstream benefits to partners and suppliers,” said Steven Münchenberg, CEO of the ABA.
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lschlesinger-FZcF9M3vE6

Cash rate cut, but borrowers unlikely to enjoy the full benefit

<html><body>
The move by the Reserve Bank of Australia to cut the cash rate by 25 basis points today is positive news for the real estate industry and combined with other official interest rate drops this year, will have a beneficial impact on the sector.
The collective 75-basis-point drop in the cash rate over May and June has gone some way to improving confidence in the housing sector, but the latest rate cut was necessary in order for the real estate industry to see a sustained improvement in conditions.
This year’s rate cuts have contributed to a significant improvement in housing affordability and allowed households additional capacity to repair their balance sheets, and today’s 25-basis-point cut will only help the situation further.
These drops have gone some way to improving confidence amongst consumers, who have been exercising caution particularly due to the financial situation in the eurozone.
But while this week's 0.25-percentage-point drop in the cash rate is welcome news, more cuts are needed this year.
Last month it appeared likely that the RBA would need to reduce rates by another 25 to 50 basis points before the year’s end, the reasoning being that a pre-emptive measure would kill off evidence of a slowing economy.
Over the last month the softness has continued and the bank has found reasons to adjust its settings, dropping the cash rate by 25 percentage points. But the question now becomes ‘Is that enough?’ And from a property perspective it is not.
More cuts to the cash rate are needed, with the justification being the softness of the inflation figures, and more importantly, the easing in the jobs market.
Inflation remains low rising only 1.2% during the 12 months to June 2012, compared with a rise of 1.6% through the year to March 2012. Underlying inflation is also limited increasing by 0.6% during the second quarter of 2012, taking the annual increase to 1.9%.
Such low results are reflective of a national economy that is entering a slowing phase.
 
<hr class="system-pagebreak">
 
Meanwhile, the most important market for the property sector – the jobs market – is showing clearer signs of weakening. Although the latest labour market trend data shows the unemployment rate remains at the healthy level of 5.2%, where it has settled over the past four months, monthly full-time jobs growth has disappeared.
Data for full-time jobs, which is the key driver of the residential property market, shows there was a contraction (600) in the number of positions nationwide in August. This follows a previous contraction (500) in July.
Over the 12 months to August 2012, full-time employment actually increased by 27,900 jobs, and while this is the largest increase over a 12-month period since October 2011, it is far below trend.
Further evidence of an easing in labour demand has been provided by recent trends in job advertising. The ANZ Job Advertisement Series showed that number of job advertisements fell 2.3% in August after falling 0.8% in July. This represents the fifth consecutive monthly fall.
Of particular interest has been the weakening trend in Queensland, Western Australia and the Northern Territory, which have been the regions benefiting most from the mining boom. Job advertising has now been weakening for around six months in each of these states and territories.
Looking ahead to the RBA’s Melbourne Cup Day meeting, ABS Retail Trade and Building Approvals data – due for release on Thursday – will provide some further clues as to whether the bank will cut the cash rate further.
It is the labour force data that is likely to remain in focus, however. One more month of retreating full-time jobs numbers should be enough to tip the scale in favour of another Melbourne Cup Day cut.
And what a beautiful Melbourne Cup quinella it would be for the national property market if the RBA firstly announced the drop in rates and secondly, if the banks passed on the full impact.
Mark Courtney is research director at <a target="_blank" href="https://www.colliers.com.au/">Colliers International.</a>
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mcourtney-5DU2hjjTSG

Another rate cut – with the banks passing on in full – would make a beautiful Melbourne Cup quinella

<html><body>
The housing industry has welcomed the RBA cutting the cash rate by 25 basis points today to 3.25% and expects a follow-up rate cut when the bank next meets on Melbourne Cup Day on November 6.
The rate cut came despite capital city <a target="_blank" href="https://www.propertyobserver.com.au/residential/surprise-14-rise-in-capital-city-dwelling-values-highest-in-30-months-but-moderate-growth-ahead-rp-data-rismark/2012100256920">dwelling prices surging 1.4% in September</a>, according to RP Data-Rismark.
Praise for the rate cut came from the Housing Industry Association (HIA), which represents the struggling residential building sector.
The HIA says the rate cut was appropriate “given current economic conditions, which are highlighted by the parlous state of the residential construction industry”.
HIA chief economist Dr Harley Dale called on lenders to “deliver today's interest rate cut in full, without delay, to provide the appropriate relief to businesses and mortgage holders".
"There is no funding cost wall to justifiably hide behind," says Dale, who adds that there is also a need for a follow-up interest rate cut on Melbourne Cup Day, with “widespread expectation for that outcome”.
The HIA prepared the following chart, which show that while margins banks earn on mortgage lending fell in August (the grey bars), they still remain at historical highs.
Click to enlarge
<a href="/images/stories/2012/09/hiaoct2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/hiaoct2thumb.gif"></a>
Real Estate Institute of Australia (REIA) president Pamela Bennett said today’s decision “is a great relief for home owners and potential buyers”.
“Home owners always like to see interest rates go down.  This cut means the average loan repayment is reduced from $2,155 to $2,105 or by $50 per month.”
Mark Courtney, Colliers International research director, says the collective 75-basis-point drop in the cash rate over May and June has gone some way to improving confidence in the housing sector, but the latest rate cut was necessary in order for the real estate industry to see a sustained improvement in conditions.
“This year’s rate cuts have contributed to a significant improvement in housing affordability and allowed households additional capacity to repair their balance sheets, and today’s 25 basis point cut will only help the situation further,” he says.
“These drops have gone some way to improving confidence amongst consumers, who have been exercising caution particularly due to the financial situation in the eurozone.”
But he said more cuts were needed this year because from a "property perspective" one rate cut was not enough.
 
<hr class="system-pagebreak">
 
Economists were more circumspect in their responses.
CommSec chief economist Craig James says the RBA “acted to insulate the Australian economy from weakness abroad”.
But he says that while rate cuts have in the past acted to stimulate activity, "the impact on the economy today is more ambiguous".
“While rate cuts help borrowers, they hurt savers," says James.
“The number of savers has soared and currently deposits are creeping up to be almost neck and neck with loans. Deposits represent around 90% of loans outstanding, well up from 75% just five years ago.
“Further only a third of households benefit from a rate cut with a third of families renting while a third of families fully own their homes. The non-home buying public tend to be savers rather than borrowers. So a rate cut will hurt all the families living off interest income.”
James says confidence remains the pertinent question.
“If people don’t have the confidence to spend and instead continue to save and pay off home loans at a faster rate, then the rate cut will have no impact on activity.
“It is also important to note that it is the level of interest rates that does the hard lifting work in the economy, not the change in rates. Interest rates are already below longer-term averages. And judging by what has happened in previous months, home borrowers are more likely to respond to a rate cut by paying off their home loan at a faster rate, rather than going on a spending spree.”
Rismark economist and Australian Financial Review columnist Christopher Joye tweeted that home variable home loan rates would “fall to around 5.4% and 5.5% (near GFC lows); 3yr fixed rates as low as 5.3%”.
“Near GFC lows in home loan rates will galvanize recovery in house prices - great news for home owners,” he added in a follow-up tweet.
Australian Property Monitors senior economist Dr Andrew Wilson called the rate cut good news for home buyers and housing affordability but questioned in a tweet that it “seemed a speculative move as economic drivers have improved recently”.
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Housing industry welcomes RBA cash rate cut and expects another on Melbourne Cup Day 

<html><body>
The Reserve Bank’s decision to cut the official cash rate by a further 25 basis points is welcome news, but the housing market remains in need of a more coordinated approach to reach a full recovery.
As ever, the willingness of the banks to take a fair and reasonable course of action and pass the rate cut on in full is crucial to the impact of the RBA’s decision.
Recent cuts to the official cash rate have not had the desired impact, and while activity has picked up with the commencement of the spring selling period, there is substantial improvement still to be realised for the sector to be deemed healthy again.
Government obviously recognises the important role the housing market plays in an economic context, evidenced by the slate of property-related taxes it relies upon.
It therefore seems reasonable that a more coordinated approach between all levels of government and the residential sector should be pursued to improve the health of the sector.
A reconsideration of stamp duty is the most obvious place to start.
Considerable evidence already exists to support the idea that government stands to gain substantially increased revenue associated with increased transactional levels should stamp duty be abolished.
To suggest this tax is too important a source of revenue is erroneous and obsolete.
Another area requiring a commitment from government is an improvement to the planning and development approval process.
For too long incentive programs have been focused on the buyer side of the equation. Perhaps a more serious focus on addressing developer concerns, such as levies and the speed of the approval process, would enable the RBA’S interest rate cuts to have a more measurable and significant impact.
Leanne Pilkington is general manager of<a title="Laing + Simmons" href="https://www.laingsimmons.com.au/" target="_blank"> Laing + Simmons</a>
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lpilkington-GWhcD9raad

Passing the rate cut on in full is crucial

<html><body>
Rate cuts take time to filter through the economy, but our research shows the property market responds quickly.
This rate cut will lead to cheaper loans and add momentum to the housing market in the coming months.
It could also fuel construction, leading to property-related jobs and an uptick in tax revenue for the government.
In the marketplace we have seen house prices rising on average since the last RBA rate cut in June, so vendors have been buoyed heading into spring selling season and will continue to be.
The LJ Hooker network of mortgage brokers see the rate cuts in their lead sheets.
Each time the Reserve Bank of Australia lowers the cash rate there is a noticeable increase in inquiries from those looking to purchase property.
Borrowing rates to buy a home were historically low even before this rate cut.
Market rates for three-year fixed-rate mortgages are 113 basis points below the average since 2000.
This will encourage more Australians to buy property, whether a primary home or an investment, in the coming year.
Interested buyers are still adjusting to the last RBA rate cut in June.
This new cut will further encourage them to enter the market.
L. Janusz Hooker is deputy chairman of <a href="https://www.ljhooker.com.au/" target="_blank">LJ Hooker</a> deputy chairman
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ljanusz-qWn5X4b38e

Rate cuts take time to filter through

<html><body>
RBA governor Glenn Stevens has released a statement regarding today's RBA board meeting decision. 
<h3 id="mr-title">Statement by Glenn Stevens, governor: Monetary Policy Decision</h3>
"At its meeting today, the board decided to lower the cash rate by 25 basis points to 3.25%, effective 3 October 2012.," Stevens said.
"The outlook for growth in the world economy has softened over recent months, with estimates for global GDP being edged down, and risks to the outlook still seen to be on the downside. Economic activity in Europe is contracting, while growth in the United States remains modest. Growth in China has also slowed, and uncertainty about near-term prospects is greater than it was some months ago. Around Asia generally, growth is being dampened by the more moderate Chinese expansion and the weakness in Europe.
"Key commodity prices for Australia remain significantly lower than earlier in the year, even though some have regained some ground in recent weeks. The terms of trade have declined by over 10 per cent since the peak last year and will probably decline further, though they are likely to remain historically high.
"Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high. Low appetite for risk has seen long-term interest rates faced by highly rated sovereigns, including Australia, remain at exceptionally low levels. Nonetheless, capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Share markets have generally risen over recent months," Stevens said.
"In Australia, most indicators available for this meeting suggest that growth has been running close to trend, led by very large increases in capital spending in the resources sector. Consumption growth was quite firm in the first half of 2012, though some of that strength was temporary. Investment in dwellings has remained subdued, though there have been some tentative signs of improvement, while non-residential building investment has also remained weak. Looking ahead, the peak in resource investment is likely to occur next year, and may be at a lower level than earlier expected. As this peak approaches it will be important that the forecast strengthening in some other components of demand starts to occur.
"Labour market data have shown moderate employment growth and the rate of unemployment has thus far remained low. The bank's assessment, though, is that the labour market has generally softened somewhat in recent months.
"Inflation has been low, with underlying measures near 2 per cent over the year to June, and headline CPI inflation lower than that. The introduction of the carbon price is affecting consumer prices in the current quarter, and this will continue over the next couple of quarters. Moderate labour market conditions should work to contain pressure on labour costs in sectors other than those directly affected by the current strength in resources. This and some continuing improvement in productivity performance will be needed to keep inflation low as the effects of the earlier exchange rate appreciation wane. The Bank's assessment remains, at this point, that inflation will be consistent with the target over the next one to two years.
"Interest rates for borrowers have for some months been a little below their medium-term averages. There are tentative signs of this starting to have some of the expected effects, though the impact of monetary policy changes takes some time to work through the economy. However, credit growth has softened of late and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook," Stevens said.
"At today's meeting, the board judged that, on the back of international developments, the growth outlook for next year looked a little weaker, while inflation was expected to be consistent with the target. The board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative."
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Investment in dwellings has remained subdued: RBA governor's statement for October board meeting

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The self-appointed "shadow" RBA board favours the Reserve Bank leaving the cash rate on hold today at 3.5% but expects a rate cut in the medium term.
The board is comprised of economists and academics that meet under the banner of the Centre for Applied Macroeconomic Analysis (CAMA) at Australia National University.
Keeping the interest rate unchanged at 3.5% received nearly 60% weight, considerably above the next most popular setting — a decrease to 3.25% — which received a 30% weight.
For the RBA's September decision, keeping the interest rate unchanged at 3.5% received around a 65% weight from the shadow board.
In October, the shadow board saw evidence of weakening inflationary pressures and a risk that the current cash rate should be lower.
"The corresponding figures for September suggested both more upside risk and less downside risk to inflation. With some evidence that inflationary pressures will continue to abate in the coming months, there is greater scope for lower rates in the medium term. Support for a decrease in the cash rate over the next six months was just over 50%.
“Support for a decrease in the cash rate over the next six months was just over 50%," said the shadow board.
Shadow board member Saul Eslake, chief economist at Bank of America Merrill Lynch Australia and formerly chief economist at ANZ for 14 years, says the argument for a rate cut is “getting stronger — given the ongoing slowdown in China, and the impact that’s having on commodity prices — but not, so far, on the Australian dollar”.
“However, it’s not yet clear to me that, overall, the negative effects of persistent Australian dollar strength have started to overwhelm the other factors that have kept the unemployment rate steady in a 5% to 5.25% range and growth close to or even slightly above its trend pace so far this year. I expect rates eventually will need to fall, but I’m not ‘over the line’ for October.”


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Another shadow board member, Jeffrey Sheen, professor and head of economics at Macquarie University, says that Australian foreign interest rate differentials are “probably appropriate to this stage of the mining boom, delivering expected future depreciation”
“The expected weakening in the terms of trade — down a little from a 50-year high — will assist this depreciation in due course.”
He also pointed out that there have been no significant changes to global macro risks in the last month.
Shadow board member Paul Bloxham, chief economist at HSBC Bank Australia, says he favours holding rates steady this month, although he says he would be willing to consider cutting rates by 25 basis points.
“Conditions locally and in China look fairly similar to last month. Western growth is still slowing, but it is not clear how much further downward pressure that will put on growth in Asia. Commodity markets have generally stabilised. The local unemployment rate remains low.”
“While there are some signs that employment is easing, timely indicators do not decisively point to weaker conditions. Monetary policy is starting to lift the housing market. Inflation was low in the second quarter, but there is no new price data this month to confirm that this has continued to be the case in the third quarter.
“Given limited urgency to cut rates further, and signs that lower rates are providing some support for the economy, I would prefer to wait for the third quarter CPI for confirmation that inflation remains low before cutting rates further if needed,” said Bloxham
The full shadow board is:
Shaun Vahey, Professor, RSE, ANU. (non-voting chair)
Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd
Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore
Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA
Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia
Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology
Warwick McKibbin, Professor, RSE, ANU, CAMA
James Morley, Professor, University of New South Wales, CAMA
Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA
Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy
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RBA should keep cash rate on hold at 3.5%: Shadow board

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Across the Tasman, ANZ operates two brands: ANZ, and The National Bank. The National Bank’s black and green branding is on licence from British bank Lloyds. That licence is due to expire in 2014, and ANZ is taking the opportunity to reunite the two brands, which for the past decade have operated separately.
ANZ will spend just under $80 million merging the brands, adopting the National Bank’s back-end systems and most of its products.
The move starkly contrasts with that of rival bank Westpac. Under the ‘multi-brand’ strategy pushed by chief executive Gail Kelly, Westpac operates five high-profile retail-banking brands. Three of these are the result of recent acquisitions. In addition to its red ‘Westpac’ brand, it also owns St George (acquired in 2008) , BankSA (bought by St George in 2002), and RAMS (2007). Westpac also operates the Bank of Melbourne in Victoria, a <a href="https://www.canberratimes.com.au/business/westpac-blast-from-the-past-likely-to-be-a-costly-move-20120424-1xje7">brand it bought in 1997 and rebranded as Westpac in 2004</a> after staff started wearing Westpac uniforms (they wanted to be part of the parent company) and customer surveys showed confusion about the multiple brands. Bank of Melbourne brand was relaunched by Kelly last year.
But the multi-branding strategy hasn’t been embraced by others in the sector. Commonwealth Bank CEO, Ian Narev, recently rubbished the strategy at an investor briefing, saying he had no intention of pursuing a retail banking strategy built around the ''differentiation of a whole lot of different brands.” His comments, together with ANZ’s recent decision to consolidate, show Westpac is swimming against the tide.
Operating multiple brands can help companies tap new customer bases and spread risk, but it comes with its own dangers. Should leading companies learn from Westpac, or are there warning signs in the words and actions of its rivals?
Why companies maintain multiple brands
Companies pursue multiple brands for three key reasons.
The first is to do with risk, explains Dr Simon Bell, a professor marketing at Melbourne University.
“When one brand suffers a reputational hit, having other brands can mean the rest of the products aren’t damaged or affected,” Bell says. “Take the reputational damage to BP with the oil spill. They wouldn’t have suffered as badly across their whole chain if they had multiple brands.”
There’s another way multiple brands reduce risk, according to David Gallop, an executive creative director at marketing agency Huddle Partners.
“You don’t want to put all your money in one place,” he says. “Multiple brands let you spread your bets.
“You’ll always have some brands in decline, others that are growing, and others with potential. If you have an arsenal of different brands, you can manage some down over time.”
The second reason companies turn to different brands is about customers.
When it comes to multi-brand strategies, the masters are fast-moving consumer goods, says Gallop.
“Cosmetics, pharmaceuticals, [vehicle] sales; those sorts of things have succeeded really well with multiple brands.
“It allows them to segment the market across different types of audiences.”
When brands want to extend into new products, sometimes they need a new brand, says Bell. “For example, it’d be impossible to take Coca-Cola into a line of premium watches.”
The third reason isn’t to do with customers, but about internal competition, says Gallop.
“It can keep internal brand managers on their toes, providing that internal competition. They might not be directly competing externally, but if another company’s brand is going really well, that’s pressure to deliver.”
 
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Branding distractions
However, multiple brands come at a cost.
Branding expert Michel Hogan says developing new brands can be a way companies distract themselves from dealing with the difficult parts of brand legacy. Sometimes, what should be considered a product line ends up morphing into a new brand, because building a brand, Hogan says, is fun.
“It’s shiny-object stuff. Coming up with the name, with campaigns, thinking of all the marketing trappings… It’s a lot more fun than the hard grind of making sure all your promises and the like are being met to build your existing brand. I do think a lot of it comes out of distraction and boredom, and isn’t always in the best interests of customers.”
Not to mention, Hogan adds, it’s more expensive than maintaining the one brand.
For this reason, she rarely advises it. “Unless there’s a really good reason – for example, if it’s a completely different customer set, and there are few benefits to leveraging the one brand, or if there’s no benefit from previous brand legacies – I frankly discourage people from it.”
Bell adds another danger of multiple brands: too many priorities can lead to companies neglecting to update their brands over time.
He gives the example of Pacific Brands, which owns classic Australian labels such as Hard Yakka and Bonds.
“I think [new Pacific Brands CEO John Pollaers] has a challenge ahead of him.
“Pacific Brands has suffered over recent years, with a probably reason being that they haven’t invested in their portfolio.” Things like product innovation, as well as marketing and communications, have fallen by the wayside for some of Pacific Brands’ most iconic brands.
The bottom line: Westpac says it’s working
Hogan says Westpac’s situation is unique, because most of its brands came about as a result of its mergers and acquisitions.
“To me that’s a little different than an organisation embarking on a deliberate building of new brand entity that is in direct competition to the core of the rest of the business.
“Their choice is whether to integrate the brands, or build on what they bought: a loyal customer-base, which is perhaps already wedded to a particular brand.”
A 2010 KPMG report outlined some of the <a href="https://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/documents/Managing-multiple-brands-in-banking-201006.pdf">difficulties banks face</a> maintaining multiple brands in the long-term. As market conditions change for the worse, as they always do from time to time, cost-cutting drives lead to consolidation of back-end systems, and greater sharing of resources between the different brands. Over time, this can lead to a ‘hollowing out’ of the brands, where their unique value proposition isn’t clear.
Sustaining a multiple-brand strategy over time, the report argues, requires explicit targeting of particular customer niches, giving the brands a clear purpose and reason to differentiate themselves from each other. For example, The Royal Bank of Scotland maintains a brand for personal and small business customers, one for high net-worth individuals, and one for insurance services.
Westpac says its multiple-brand strategy has reaped it significant dividends. Kelly <a href="https://www.brisbanetimes.com.au/business/kelly-rejects-multibranding-critics-20120503-1y1qt">recently said</a> it allowed it to target customers that it otherwise wouldn’t be able to.
''There are a range of customers, as we know, that choose St George over Westpac,” she says. “If we didn't have a St George, they wouldn't choose to bank with us.”
Answering her critics, Kelly said she’s bemused by those who say multi-branding is high-cost. “You just can't see that in the numbers.''
But as the KPMG report shows, multi-branding is a long-term haul. Westpac’s experiment has some way to run.
This article first appeard on <a target="_blank" href="https://www.propertyobserver.com.au/https://www.leadingcompany.com.au/strategy/together-but-different-anz-and-westpac-split-on-multiple-brands/201210012623?displaypage=unknown">Leading Company.</a>
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Together, but different: ANZ and Westpac split on multiple brands

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Bank of Queensland has passed on only 20 out of the 25 basis point rate cut announced by the RBA today, an indication that other banks won't pass on the full rate cut.
The 20-basis-point rate cut brings BOQ's standard variable rate home loan to 6.71% p.a. effective from Friday, October 19, 2012.
"Given the continuing pressure on the cost of funding a 20 bps reduction is the best balance between our customers and shareholders,” CEO Stuart Grimshaw says.



“We are also conscious of pressure facing all of our customers, including those with home loans and those with deposits, and believe the 20 bps cut also strikes a fair balance between the two.”
Ken Raiss, director at national accounting, property and wealth advisory group Chan &amp; Naylor, anticipated the issue of whether or not the banks would pass on the full rate cut pre-announcement.
"The rate cut is to stimulate demand and confidence, something which is unlikely to happen unless it is passed on," he says.
“Bank rates need to reflect the true economics of the economy,” says Raiss.
“Banks must align their rates official cash rates and increase availability to loans.”
Meanwhile, Suncorp and NAB have been the standout lenders in terms of funding new mortgages over the past three months to August, according to analysis of the latest APRA banking figures by Nomura.
Queensland-based bank Suncorp has grown its mortgage book by 11.1% between July and August to $32 billion (more than double the <a target="_blank" href="/news">current annualised mortgage growth rate of 4.8%</a>), while NAB has achieved impressive growth of 8.3% off a much larger book, which has grown to $186 billion.
ANZ has pulled back on mortgage lending recording growth of 5.4% over the August quarter – compared with annualised growth of 8.6%.
The Commonwealth Bank and Westpac remain the laggards in terms of new mortgage lending, with growth of just 4.2% each over the August quarter – below system growth of 4.8%.
The Commonwealth Bank’s mortgage book stands at $260 billion.
APRA counts Commonwealth Bank subsidiary Bankwest as a separate entity, with a $48 billion loan book, giving the Commonwealth Bank group a $308 billion combined mortgage book.
Westpac (including its subsidiary banks) has a loan book worth $293 billion.
According to Nomura analyst Victor German, the August APRA figures show that ANZ’s mortgage growth rate continues to converge with the average of the major banks.
However, he says NAB is continuing to gain market share, growing at one-and-a-half times the majors’ growth rate over the past three months.
“We believe this is positive for NAB’s longer-term profitability as long as funding is available.
“Both the Commonwealth Bank and Westpac continue to lose market share in mortgages as they defend their back book profitability,” he says.
NAB’s ability to grow its share of mortgage lending has been funded, in part, by its expanding deposits base.
The total value of deposits held by NAB are up by an impressive 16.5% over the past three months to $235 billion, ahead of the Commonwealth Bank (quarterly growth of 15.6%), Westpac (11.2%) and ANZ (4.7%).
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Banks reluctant to pass on full 25-basis-point rate cut

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The Reserve Bank has surprised the majority of economists by cutting the cash rate by 25 basis points to 3.25% at its October monetary policy meeting today.
This is the lowest the cash rate has been since October 2009.
It is only one 25-basis-point rate cut off the record low of 3%, which was in place from April 2009 to September 2009. This followed the RBA cutting the cash rate by over 400 basis points between August 2008 and April 2009 to keep the economy ticking over in the wake of the GFC.
Only nine economists <a href="/news">polled by Bloomberg</a> last Friday tipped the RBA to cut the cash rate today.
The RBA cut the cash rate despite median property values rebounding by more than 2% in the five capital cities (Sydney, Melbourne, Brisbane + Gold Coast, Perth and Adelaide) quarter-on-quarter in September, according to RP Data-Rismark's daily index.
However, mortgage lending and retail sales have been weak, while concerns remain about the global economy and the Chinese economy in particular.
The major banks and other lenders are expected to announce how much of the rate cut they will pass on to borrowers in the next few days.
ANZ will make its monthly independent interest rate decision on Friday, October 12.
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