<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

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The next rate cuts are now likely to be delayed until the December quarter, says Westpac chief economist Bill Evans, following the release of  July RBA minutes.
Evans had previously forecast the cash rate to be cut by 25 basis points in August and September with a final rate cut in the December quarter. 
However, he remains of the view that rates will come down by a further 75 basis points to a low of 2.75% by February/March next year "These minutes have provided a more detailed picture of the current attitude of the Reserve Bank Board than we saw in the Governor's statement on July 3. However the message is the same. That is that the Board is in a 'wait and see' mode which seems likely to be sustained for some months," Evan says. "Our view is that with interest rates, as described by the Governor as "a little below medium term averages" the case is already there that policy needs to be more stimulatory.
"However that relies upon our forward view of likely deteriorating prospects in the labour market (unemployment rate up to 5.75% by year's end); underlying inflation dipping slightly below the 2% to 3% target range; and the international outlook remaining fragile.
"Apart from interest rates other determinants of financial conditions are contractionary with fiscal policy tightening and the Australian dollar appreciating despite weakness in commodity prices. Funding pressures on the Australian banks due to strong competition in the domestic deposit market and wide spreads in the wholesale markets continue to pressure the banks. "As a result of all these factors we remain of the view that the overnight cash rate will eventually come down by 75bps to a low of 2.75%. However, due to the Board's current policy disposition it is necessary to push out the timing of the first cut from August until the fourth quarter of 2012 where we expect two cuts in October/November and December. Even lower rates are likely to be needed in the first quarter of 2013 with the final cut of 25bps coming in February/March."
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lschlesinger-FZcF9M3vE6

Next rate cut likely delayed until December quarter: Westpac's Bill Evans

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CUA, Australia’s biggest credit union, has cut its fixed-rate products below that of the big four banks on the back of an advertising campaign urging customers to ditch the major banks. 
The CUA has is offering a one-year fixed-rate home loan at 5.65% and two- and three-year fixed-rate home loan at 5.73%. 
Last week the Commonwealth Bank cut its one- and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
 
The CUA says its one-year fixed rate is 35 basis points lower than the average of the big fours’ and its two- and three-year fixed rate is 27 basis points lower. 
CUA’s rate cuts are effective from July 18. 
“CUA is committed to offering customers the best deal we possibly can. Because our customer-owned model enables us to focus entirely on our customers, not on shareholders, we have more flexibility to make rate decisions that are in their best interests,” says Jason Murray, CUA’s acting general manager for products and marketing. 
According to Ratecity.com.au, Greater Building Society offers a one-year fixed-rate home loan at 5.64% as well as three-year rate fixed home loan at 5.79%.
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CUA cuts three-year fixed rate to 5.73%, undercutting big four banks

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Everyone has heard the old saying “timing is everything”, and in the context of property investment the adage tends to ring resoundingly true. In the competitive world of real estate it is often the case that attractive purchase opportunities pop up unexpectedly, requiring purchasers to take quick and decisive actions to secure properties. 
However, having been in the mortgage industry for over 12 years, I have been privy to many situations where purchasers have lost out on dream properties after being beaten to the punch by better-prepared buyers.
In light of this, it is important for investors to plan ahead as much as possible to ensure that they are able to take advantage of chance investments as they arise. 
One way to do this is to obtain pre-approval for finance from a lender – something that not only enables purchasers to act quickly once opportunities have been identified, but also helps them to ascertain their borrowing capabilities early on in the search process. 
In addition to enabling an investor to narrow the property search within a purchase budget, loan pre-approval could also provide increased price bargaining power with vendors, who might be willing to accept a lower price than was advertised with the knowledge that the transaction is already backed by secure finance – particularly in cases where a vendor is looking for a quick and hassle-free sale. 
The amount an applicant can borrow will vary from lender to lender and will depend on a number of different factors, including a borrower’s income, credit history, existing assets, debt and equity, as well as the property type and any rental income/s that are expected from it. 
Applicants will need to produce a variety of original documents, which should be gathered in advance to save time. These include, but are not limited to, identification documentation, pay slips, group certificates, bank statements, loan details, and insurance and superannuation policies. 
In regards to experienced investors: many often believe that because they have gained finance approval in the past that they will automatically be granted the same in the future. It is important to note, however, that this assumption is incorrect, as the lending criteria of banks changes constantly, meaning that investors can cease to qualify for loans despite their situations remaining unchanged. 
In many cases loan pre-approval will reveal that an investor has greater access to finance than initially thought. And by defining this range with a mortgage broker from the outset, interested buyers can considerably boost their position within the marketplace, improving their ability to act swiftly and secure attractive property investments as they arise. Leverage yourself in negotiations by being ready to fire.
Harry Bozin is a director at <a target="_blank" href="https://www.century21homeloans.com.au/loantype.cfm">Century 21 Home Loans WA</a>
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hbozin-VeiaHmdgyD

Why you should secure finance pre-approval before looking for property

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As I expected, the RBA’s decision to – rightly or wrongly – slash interest rates to historically very low levels (the discounted rate at which most people borrow is around 6%) has had a near-immediate impact on Australian house prices. 
RP Data-Rismark’s hedonic index, which reprices a portfolio of 5 million homes using all historical sales and the incoming flow of approximately 1,500 new sales RP Data collects each day, has recorded a 1.8% increase in Australian capital city dwelling values since the end of May (refer to the blue line the chart below) to July 16. Dwelling values in Melbourne (black line) and Sydney (red line) have risen more sharply, with capital gains of 2.8% and 2.1%, respectively.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/july16.gif"><img src="/images/stories/2012/07/july16thumb.gif"></a>
Recall that June and July are seasonally very weak months given the tapering in activity over winter. RP Data-Rismark’s daily index, which is published by both the ASX and the RBA (in its monthly chart pack), is produced in raw, non-seasonally adjusted terms since it is used as an investment benchmark. (Tradeabe financial market data are not normally seasonally adjusted.) Yet seasonally adjusting RP Data-Rismark’s index is an instructive analytical exercise, and doing so would show even stronger price appreciation than that which is displayed in the chart above. 
Over the period December 31, 2011 through July 16, 2012, inclusive, Australian dwelling values are now more or less unchanged (off -0.4%). In Sydney, dwelling values have actually risen 1.7% over the first six months of the year. And after a steep drop during April and May, home values in Melbourne have recovered quickly to be down 2.4% in 2012. This compares much more favourably with the Melbourne housing market’s -5.6% nadir reached on June 10. 
Despite the wealth of empirical evidence supplied by RP Data indicating that dwelling prices have started creeping up again in Sydney and Melbourne, SQM’s Louis Christopher has assuredly argued otherwise. (While SQM competes against RP Data, it does not actually publish a price index of its own.) 
Following the release of RP Data-Rismark’s June data, which is being directionally reaffirmed in July, Christopher issued a media release that contained several incorrect statements, which were addressed in a <a href="https://www.propertyobserver.com.au/residential/rp-data-rismarks-defence-of-the-daily-hedonic-home-value-index/2012070555447">response from RP Data’s Tim Lawless</a>. 
One of Christopher’s most surprising arguments, however, was the declaration that, "I do not believe for a moment that house prices are now rising in Sydney or Melbourne as RP Data-Rismark has claimed." Christopher has been backed up by Sunrise television host David Koch. 
Setting aside RP Data-Rismark’s findings, the REIV has <a href="https://christopherjoye.blogspot.com.au/2012/07/more-on-melbourne-house-prices">separately reported</a> that median house prices in both Victoria and Melbourne rose by about 3% in the June quarter. Averaged over the last six months, the REIV concludes that Melbourne house prices have not fallen at all. 
As I explained here, the RBA prudently leverages off multiple house price data providers since it can never be absolutely certain that the quality of any one company’s information will always remain the same. Having said that, the RBA has communicated a clear preference for the “hedonic” and “stratified median” proxies published by RP Data-Rismark and the Fairfax-owned Australian Property Monitors (APM). 
Australia is somewhat unique among OECD countries in collecting 100% of all residential sales transactions through valuer-generals and land titles offices and then making this data available to private information vendors. In contrast to the US and UK, where the most widely used indices have large sample selection biases (because they only draw on a sub-section of sales), APM and RP Data-Rismark’s benchmarks ultimately include all sales. 
To the extent Christopher genuinely believes that house prices are falling in Sydney and Melbourne, he will presumably defer to APM’s numbers, which will be published late next week. 
Christopher publicly says he “created” APM’s stratified median index, which is a point disputed by Fairfax’s APM. In its media releases, APM notes – correctly, I have been informed – that the stratified median index derives from a methodology <a href="https://ideas.repec.org/p/rba/rbardp/rdp2006-04" target="_blank">developed</a> by two RBA economists, Tony Richards and Nalini Prasad (more detail on the dispute between RP Data/APM and Christopher can be found <a href="https://christopherjoye.blogspot.com.au/2012/07/rp-data-responds-to-louis-christophers" target="_blank">here</a>). 
The APM results should be one telling litmus test of RP Data-Rismark’s analysis. While it harnesses similar underlying information, APM employs a very different technical method. I will be personally focusing on the price action APM evidence in Sydney and Melbourne, and the national market more broadly. 
The ABS house price index data are much less useful since they completely exclude all forms of “attached” housing – i.e., apartments, townhouses, and terraces – which make up around one-quarter of the housing stock in the major cities. This is why this data is largely ignored by the RBA and most market economists. 
 
<hr class="system-pagebreak">
 
I want to make some final remarks on the quality of media reporting in this country. Australia’s specialised economic commentary is typically outstanding. In the wider mass media, however, there is an emerging bias towards gloom, spin, and sensationalism when it comes to covering economic topics, and housing more specifically. In an unusual move, the ordinarily very dry RBA governor, Glenn Stevens, recently drew attention to this problem in a speech, <a href="https://christopherjoye.blogspot.com.au/2012/07/rba-governors-complaint-about-quality" target="_blank">arguing</a>: 
“[T]he nature of public discussion [in Australia] is unrelentingly gloomy, and this has intensified over the past six months. Even before the recent turn of events in Europe … we were grimly determined to see our glass as half empty. Numerous foreign visitors to the Reserve Bank have remarked on the surprising extent of this pessimism. Each time I travel abroad I am struck by the difference between the perceptions held by foreigners about Australia and what I read in the newspapers at home.” 
The vastly experienced economic commentator Ross Gittins has echoed the governor’s concerns in an SMH <a href="https://www.smh.com.au/business/prejudices-rule-when-judging-labor-20120715-224cu">column today</a>: 
“The conundrum is why so many people could be so dissatisfied when almost all the objective indicators show us travelling well: the economy growing at about its trend rate, low unemployment, low inflation, rising real wages, low government debt – even a low current account deficit. And yet the media are full of endless gloom… Increased competition has made the media more relentlessly negative - more uninterested in anything but bad news - which must eventually have some effect on the public's state of mind.” 
One example of the biases canvassed by Stevens and Gittins is found in the coverage of the first-quarter GDP results, which were the most significant economic news in the year-to-date. Within a few hours of the numbers being released, which literally doubled the estimates of economists (and showed the local economy expanding at an above-trend pace), Chris Zappone’s article in the Age/SMH had been buried as the number three news item under the <a href="https://christopherjoye.blogspot.com.au/2012/06/as-predicted-good-economic-news-buried" target="_blank">stunningly spun headline</a> (written by the sub-editor) “More rate joy fades as economy revs up” (emphasis added). 
 
Yes, the best economic news of 2012 had been twisted into bad news for borrowers. Seriously. And by the end of the day the article had dropped to number eight on the list of The Age/SMH's top stories behind a piece about a “<a href="https://christopherjoye.blogspot.com.au/2012/06/best-economic-news-story-of-year-ranks" target="_blank">bored billionaire</a>”. The SMH screen-shot is enclosed below.
<img src="/images/stories/2012/07/joyesmh.jpg">
Doom-spruiker-in-chief, Steve Keen, still gets quoted by respectable media despite consistently misleading the public about the housing market. In 2008 he was regularly referenced confidently calling for a 40% fall in house prices (and double-digit unemployment).
After watching prices awkwardly rise 13% in 2009 and 5% in 2010, Keen revised his prediction to a more modest 20% decline. For what it is worth, Australian home values are currently around 15% above the lows they touched in December 2008.
At the first sign that the RBA’s monetary policy tightening was squeezing steam out of the property market in mid-2010, Keen eagerly claimed that the rate of price declines would “accelerate” thereafter. They did nothing of the sort.
Following a temporary drop in prices in April and May this year, Keen <a href="https://www.propertyobserver.com.au/residential/abs-figures-show-australia-s-housing-price-bubble-is-bursting-steve-keen/2012050254514" target="_blank">reiterated his view that the price depreciation would accelerate</a>, and then on Twitter said he would let the data do the talking.
Well, the house price figures are talking, just not according to the tone Keen anticipated.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm" target="_blank">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
 
Update: <a target="_blank" href="https://www.propertyobserver.com.au/residential/sqm-director-louis-christopher-responds-in-index-debate/2012071655588">SQM director Louis Christopher has tweeted a response to this column and suggests readers look at a 2005 Australian Financial Review article.</a>
RP Data-Rismark’s house price index did not exist in 2005 when the AFR article was published, as it was not launched until end 2006.
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House prices rise sharply in July after June RBA cash rate cut despite media bias towards gloom and spin: Christopher Joye

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ANZ has left its variable interest rates unchanged today following its July independent interest rates review as economists remain divided about whether the RBA will cut rates on August 7.
The latest Bloomberg survey of economists found that 13 out of 24 expect the RBA to cut the cash rate to 3.25% on August 7 (unchanged from a week ago) with the rest expecting the cash rate to remain unchanged at 3.5%.
ANZ's standard variable rate remains at 6.80% the same as that of the Commonwealth Bank and just above NAB at 6.78%, which has pledged to offer the lowest standard variable rate among the Big Four throughout 2012.
Westpac remains the outlier with a standard variable rate of 6.89%.
ANZ CEO Australia Philip Chronican says the bank left variable mortgage rates unchanged “despite funding costs remaining elevated”.
Chronican says competition for deposits remains strong and is continuing to put pressure on margins, while “recent news from Europe has helped somewhat in stabilising offshore funding markets”.
Among the 24 economists surveyed by Bloomberg, the major banks are neatly divided with Westpac and Commonwealth Bank expecting a rate cut on August 7 and NAB and ANZ expecting the RBA to hold firm.
ANZ is pencilling in two 25 basis point rate cuts for October (previously August) and November this year.
Yesterday ANZ said the small increase in the June unemployment rate to 5.2% was unlikely to cause too much concern for the RBA.
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ANZ leaves mortgage rates unchanged as economists remain divided on August rate cut

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On June 27, 2012, the ATO withdrew the taxation ruling TR 2011/2. This outlined the effective life of all qualifying plant and equipment depreciating assets. The new and excitingly named TR 2012/2 ruling is in effect from July 1, 2012 and includes some changes to existing depreciating assets and the addition of some new assets. The new legislation applies to all assets acquired individually or through the purchase of a property from the July 1, 2012 onward. If you’ve previously had a tax depreciation schedule prepared, there’s no need to worry about updating any effective lives. In the ATO’s words:
“If, for a particular asset, you were using an effective life from the determination as in force before the latest amendment (for example, as contained in the Schedule to TR 2011/2), you should continue to use that life for that asset.”
The legislation has been updated due to an ongoing review of the commissioner’s effective life determinations, which is being undertaken by the ATO. Specifically, there have been changes to assets under the following descriptions;
<ul>
<li>Animal feed manufacturing assets;</li>
<li>Coffee manufacturing assets;</li>
<li>Concrete product manufacturing - concrete roof tile manufacturing;</li>
<li>Concrete product manufacturing - fibre cement building board manufacturing assets;</li>
<li>Edible oil or fat (blended) manufacturing assets;</li>
<li>Ethanol manufacturing assets;</li>
<li>Frozen pre-prepared meals and selected snacks manufacturing assets;</li>
<li>Health and fitness centre operation assets;</li>
<li> Motor vehicle manufacturing - automotive metal stamping and blanking assets;</li>
<li>Motor vehicle manufacturing - motor car engine manufacturing and assembly assets;</li>
<li>Radio broadcasting assets;</li>
<li>Steel coil roll forming, slitting, blanking and sheet metal forming assets;</li>
<li>Sheet metal tank manufacturing assets; and</li>
<li>Tea manufacturing assets. </li>
</ul>
This will of course change the depreciation deductions for commercial properties operating under those descriptions, but will not affect residential property investors.
The effective lives affect depreciation deductions by changing the depreciation rates. For example, under the diminishing method, the rate of depreciation for an asset is calculated by 200 divided by the effective life of the asset. So if we take a dishwasher in a residential property as an example, the calculation would be 200 divided by 10 years, giving us a depreciation rate of 20%. If the effective life was to be changed to the same as an oven, the depreciation rate would reduce to 16.7%.
We can expect an updated taxation ruling on effective lives around the end of June each year, due to the ongoing review of effective lives. Hopefully we’ll see the addition of some new assets under the residential property operators’ subsection such as water tanks. We’ll keep you abreast of all legislation changes.
Mike Mortlock is a director of <a href="https://www.mcgqs.com.au/">MCG Quantity Surveyors</a> specialising in tax depreciation deductions for property investors.
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What new depreciation tax rules mean for property investors

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The Commonwealth Bank has cut its one and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
The new rates take effect from tomorrow (July 13) and are available for new borrowings over $150,000.
This means the bank is offering one of the cheapest fixed rates currently offered in the market, matching the three-year fixed rate offering of the Greater Building Society and QT Mutual Bank (QTMB), according to mortgage comparison website RateCity.com.au.
The Greater Building Society offers a one-year fixed rate mortgage at 5.64% per annum.
The Commonwealth Bank is now offering its lowest fixed rate home loans for more than three years and the lowest three-year fixed package rate of all the major banks.
“This latest rate cut is good news for customers looking to lock in rates, giving them greater certainty,” says Michael Cant, executive general manager of retail products and customers at the Commonwealth Bank.
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Commonwealth Bank cuts fixed rates by 20 basis points to 5.79%

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Reserve Bank deputy governor Philip Lowe returned to theme of higher funding costs pushing up bank lending rates at a speech in Sydney today.

Lowe presented the following slide as part of a talk on the euro crisis at The Economist Bellwether Series showing that average bank lending rates have risen more or less in tune with increases in funding costs.

<img src="/images/stories/2012/07/rbajuly12.gif">
Yesterday, at an economist conference in Melbourne, Lowe said the Reserve Bank reduced the cash rate by around 150 basis points more than it would otherwise have done to compensate for the widening gap between the benchmark lending rate and interest rates set by the banks.
Speaking at an economists’ conference in Melbourne yesterday, Lowe said that due to both market and regulatory developments there had been an “increase in most interest rates in the economy relative to the cash rate”.
“This is something that the Reserve Bank has spoken about at length, and it has been an important factor in the setting of monetary policy over recent years.
“In particular, this increase in interest rates relative to the cash rate has been offset by the bank setting a lower cash rate than would otherwise have been the case. While it is difficult to be too precise, the cash rate today is in the order of 1.5 percentage points lower than it would have been in the absence of these developments,” said Lowe.
According to mortgage comparison website RateCity.com.au, the average standard variable rate stands at 6.38%, compared with a cash rate of 3.5% with banks passing on around 80% of cash rate cuts since November last year.
Westpac economist Bill Evans, who is tipping the cash rate to fall to 2.75% by year-end, said that following the 50-basis-point cash rate cut in May the average standard variable mortgage rate (SVMR) fell by 35 basis points, “blunting the potential impact”.
A week after the June decision to cut the cash rate by 25 basis points, Evans said just one major bank had announced that it would cut its standard variable mortgage rate by the full 25 basis points.
But Lowe also acknowledged the increasing costs that banks have had to bear since the GFC due to increasing regulation.
These include having to keep high reserves of cash, improving the quality of the capital held and holding more liquid assets.
“These changes are occurring not just because of new regulations, but also because they are being demanded by the marketplace,” he said.
“Together, these various changes are increasing the cost of financial intermediation conducted across the balance sheets of banks.
“In effect, the choice that our societies are making – partly through our regulators – is to pay more for financial intermediation and, perhaps, to have less of it.”
Lowe says the benefit of these changes and having to pay a higher price is “a safer and a more stable financial system”.
“As the world is being painfully reminded, the losses in output during a crisis and in subsequent years are substantial, and some of the losses may be permanent,” he said.
Lowe said Australia’s banks, alongside those in other countries, would continue to feel the impact of regulatory changes, as well as a “global loss of trust in financial institutions” that had led to all banks paying more for their funds in capital markets.
“These various changes are increasing the cost of financial intermediation conducted across the balance sheets of banks,” Lowe said.
“In effect, the choice that our societies are making – partly through our regulators – is to pay more for financial intermediation and, perhaps, to have less of it.
“The benefit that we hope to receive from paying this higher price is a safer and a more stable financial system.”
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RBA cash rate could have been around 5% if banks had passed on full rate cuts: Philip Lowe

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The May cash rate cut of 50 basis points failed to spark a revival in mortgage lending, according the latest ABS housing figures.
They show that the total value of owner-occupied housing commitments rose 0.2% in May 2012 to $13.6 billion on a seasonally adjusted basis, while the number of owner-occupier home loans fell by 1.2% (or 582 mortgages) to 46,120.
This figure is well below market expectations of a 8% month-on-month increase in the number of owner-occupied home loan approvals.
A separate Bloomberg survey of economists had forecast a 1% rise in the number of owner-occupier mortgages taken out over May.
The number of owner-occupier loans fell in New South Wales (down 451, 3.4%), Queensland (down 239, 2.6%) and the Northern Territory (down 5, 1.7%), while rises were recorded in Victoria (up 140, 1.1%), Tasmania (up 69, 8.7%), Western Australia (up 48, 0.7%) and the Australian Capital Territory (up 15, 1.8%). South Australia was flat.
The value of investment housing lending slumped 4.6% on a seasonally adjusted basis.
Demand for financing of new dwellings remainde week with the number of loans for new homes fallingl 0.3% on a seasonally-adjusted basis following a fall of 0.4% in April 2012.
One positive was an increase in the number of loans arranged for first-home buyers.
In original terms, the number of first-home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 17.8% in May 2012 from 16.8% in April 2012.
Between May 2012 and April 2012, the average loan size for first home buyers rose $5,500 to $285,700.
The average loan size for all owner occupied housing commitments rose $4,700 to $293,600 for the same period.
Andrew Hanlan, senior economist at Westpac says the 1.2% slip in the number of housing finance loans to owner-occupiers slipped in May "fell short of expectations".
 "The weakness evident in May reversed modest gains for March (0.7%) and April (0.5%), suggesting that the market was stabilising over this period," he says. 
"Loans to first-home buyes strengthened in the month, rising 3.9% to be up 11% on a year ago. However, the upgrader market remains sluggish, with loans to this segment slipping 2.5% to be unchanged on a year ago," says Hanlan.
"The investor market remains lacklustre and volatile from month to month.
"Looking ahead, RBA rate cuts in May and June will act to support the market over coming months.
"In the first instance, first-home buyers are likely to respond to improved housing affordability.
"However, we are not expecting a 'V' shaped recovery to emerge, with the sector facing a number of headwinds, including patchy labour market conditions and fragile confidence at a time of global risks," Hanlan says.
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Owner-occupier mortgage lending disappoints in May with 0.2% rise: ABS

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Demand for variable-rate mortgages rose for the third straight month, according to June figures from Mortgage Choice, accounting for 82% of all mortgages arranged by Mortgage Choice brokers over the month.
The figure represented a nine-month high for Mortgage Choice, with demand for variable rate loans now above the 12-month average of 80%.
At the same time demand for fixed-rate loans fell from 21% to just 18% of all loan approvals – below the 12-month average of just under 20%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/mcjuly10.gif"><img src="/images/stories/2012/07/mcjuly10thumb.gif"></a>
Source: Mortgage Choice
According Mortgage Choice spokesperson Belinda Williamson, borrowers may be able to negotiate a variable rate below that of fixed-rate offerings.
“Our extensive lender panel, which consists of major and smaller banks, non-bank lenders, credit unions and building societies, currently has an average three-year fixed rate loan at 6.22%. In comparison, the average standard variable rate is 6.79%,” she says.
However, Williamson says it is possible for borrowers to negotiate a discount on their standard variable interest rate to below 6% in some instances, usually in return for an annual fee.
Ongoing discount variable rate loans were the most popular variable rate loan in June, accounting for two out of every five loans arranged by Mortgage Choice loan writers.
“It goes to show there are competitive deals on offer for new borrowers as well as those looking to refinance,” Williamson says.
“The end of the financial year brought with it an air of optimism around the direction of interest rates, as a growing number of home loan borrowers – more than one in four – chose variable rates.
“Perhaps whispers of one more rate cut in coming months is wielding influence.”
The second most popular loan type for June was basic variable rate, at 19.1%, closely followed by standard variable rate, at 18.6%.
The popularity of line-of-credit home loans rose by just over one percentage point to 3.8% of approvals, with borrowers showing no appetite for introductory rate loans.
 
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Despite this, Macquarie Bank today said it would offer its Classic, Premium and Line of Credit loans at a discounted rate of 5.85% for the first 12 months for all eligible applications settled on or before September 28, 2012.
The falling demand for fixed-rate loans has also been noted by Ray White’s mortgage broker Loan Market, with customer enquiries for fixed-rate mortgages falling to around 15% of total home loan enquiries since the RBA cut the cash rate by 75 basis points in May and June.
Fixed-rate products had spent the majority of 2012 around a full percentage point below variable rates, however with a downward outlook on rates, lenders aren’t shifting fixed rates parallel to variable rates, according to Loan Market spokesperson Paul Smith.
“The feedback from consumers shunning fixed rates is that they’re convinced home loan rates have further to drop and that they’re anticipating a period of prolonged low interest rates,” he says.
However, some brokers are still encouraging borrowers to consider a fixed-rate product.
John Kolenda, managing director of mortgage broker network 1300 Home Loan, says home owners should consider switching to a fixed-rate home loan to take advantage of historically low interest rates.
Kolenda says fixed rates are now available for as little as 5.74% over a three-year fixed term, 30 to 40 basis points below average discounted variable rates.
“Lenders are clearly pricing in further interest rate cuts due to global economic weakness,” he says.
However, if history is a guide, the window of opportunity for locking in a low fixed-rate home loan is likely to be short lived, he says.
“No one can be confident of picking the exact bottom of the cycle, but this is certainly not a bad time to look at fixing.”
Kolenda says borrowers can also manage their interest rate exposures by splitting their loans between fixed and variable.
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