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

Joel Robinson

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

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

NAB bring forward first RBA cut to February 2025

<html><body>
Westpac announced a 0.10% increase to its standard variable home loan rate to 7.46% this evening. The ANZ lifted its variable interest rates for retail mortgages and small business lending by 0.06% to 7.36% following its independent February rate review mid-afternoon. 
ANZ and Westpac now have the highest variable mortgage rates of the big four. CBA's standard variable rate is 7.31%, and NAB's is 7.22%, as at 7pm Friday February 10.
The ANZ bank blamed the rates it has to pay on deposits and higher wholesale funding costs for increasing the variable rate following the RBA leaving rates unchanged earlier this week. 
ANZ CEO Australia Philip Chronican says the decision - effective February 17 - may leave some people "frustrated and even angry but believe Australia needs safe, well-run commercial banks that aren’t a burden on taxpayers and that can continue to lend".
The ANZ bank has reduced its three-year fixed-rate package mortgage by 0.15%.
The Westpac executive Jason Yetton said increasing interest rates was never an easy decision.
"<a href=""></a>However, our move today reflects the increase in costs of banks raising money.
"<a href=""></a>While we believe that reducing rates in November and December last year was the right thing to do for our customers and the economy, higher deposit costs and higher wholesale funding costs since then make today’s move necessary.
"Over the past four months intense competition for term deposits has increased their cost to us by around 0.30%, while wholesale funding costs have also risen significantly. For example, unsecured five year funding transactions raised overseas by banks to support lending in Australia are currently priced at around 2.30 percentage points over the benchmark bank bill rate. In June last year equivalent raisings were priced at or around 1.50 percentage points over the benchmark."
He added “it’s the money we raise from customer deposits and from wholesale funding that enables us to keep providing lending support to the economy. As the cost of the money we raise increases, at some point, we have to increase the price of the money we lend.
“We have 5 million depositors and they are benefiting as the interest rates we are offering for both online savings accounts and term deposits are among the most competitive we’ve ever offered and reflect our strong commitment to our Australian customers while lessening our reliance on overseas wholesale funding markets.”
Customers with an average mortgage of $250,000 will see their repayments increase by approximately $16 per month (principal and interest loan).The change in Westpac’s standardvariable home loan rate will become effective on 20 February 2012. It follows a 0.50% ($66 per month for a $250,000 mortgage) reduction in the variable home loan rate through cuts in Novemberand December last year.
In its February Monetary Policy Statement released earlier today, the RBA acknowledged the higher funding cost environment while noting “a general improvement in sentiment over the past month or so” in Europe.
“Over the past month, conditions have improved, with [debt] issuance picking up markedly, but spreads on bank debt are significantly higher than they were in the middle of last year.
“Indeed, some large corporates are now able to raise funds in the capital markets more cheaply than banks with a higher credit rating. These global developments have had an effect in Australia, where there has been a step-up in the banks’ overall cost of funding relative to the cash rate,” said the RBA.
Bill Evans, chief economist at Westpac, says the objective of the RBA statement is to emphasise that "without a significant deterioration in global financial conditions policy should remain unchanged".
"When you assess the various pieces of the Bank's description of the domestic economy – weak employment; rising unemployment rate; subdued retail spending; soft housing market; below trend growth outside mining; scaling back of public investment; building construction subdued; inflation to remain around the mid-point of the target range; policy at neutral, not stimulatory – we see a fairly clear case for policy to move into the stimulatory zone immediately.
"Of course our forecasts as contrasted with the Bank's forecasts clearly suggest that the qualitative descriptions provided in this statement are understating the need for a policy response," Evans says.
The CBA's Michael Workman came to a similar conclusion saying the EU’s debt problems "are still the major downside risk for growth and the major trigger for another RBA rate cut".
</body></html>

lschlesinger-FZcF9M3vE6

Westpac joins ANZ in raising interest rates

<html><body>
Credit Union Australia (CUA) has cut its three-year fixed-rate home loan for the third time in the space of five months, taking it below that of the major banks. 
The move follows the RBA leaving rates on hold yesterday and speculation that the major banks might raise interest rates on standard variable mortgages this week. 
The mutual, one of the biggest in Australia, with 400,000 customers, will reduce its three-year fixed rate by 39 basis points from February 13, taking the interest rate from 6.34% to 5.95%. 
CUA says it now offers one of the lowest three-year fixed-rate home loans in the market – 43 basis points lower than the average of the big fours’ three-year fixed-rate home loans.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/cuachartlarge.gif"><img src="/images/stories/cuachart.gif"></a>
Based on an average loan size of $300,000 with a 30-year term, a three-year fixed-rate home loan from CUA at this rate could save borrowers $84 per month, or $3,024 over the three-year duration of the loan, compared with the average rate of the big four banks on the same product. 
“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.
</body></html>

CUA cuts fixed-rate mortgages to undercut major banks

<html><body>
RateCity CEO Damian Smith has downplayed the risk of banks raising mortgage rates, but he says anything is possible.
“It’s been an extraordinary last 48 hours. Twenty-four hours ago we were expecting banks to pass on 10 to 15 basis points of a 25-basis-point rate cut, now they’re pushing the line of a rate rise,” Smith tells Property Observer.
“Nothing surprises me anymore, but I would be surprised if they raised rates at time when lending growth is slow. The big issue is not funding cost but the slow lending market,” he says.
If banks do raise rates, Smith says they will be banking on “inertia from customers” and assuming that they won’t switch lenders.
“It’s up to customers to demand better and be ready to switch,” he says.
His comments follow speculation that the major banks could raise rates independent of the Reserve Bank in order to protect their profit margins on mortgages.
Borrowers should know by Friday whether their mortgage repayments will rise when ANZ makes its independent interest rate announcement.
Should ANZ push up its standard variable mortgage rate, the other banks are likely to follow suit.
Alan Mitchell, finance editor at the Australian Financial Review, says “conventional wisdom” dictates that ANZ will not raise rates after the RBA left them unchanged.
“To do so would be much more?provocative than the banks’ preferred strategy of simply not fully passing any RBA rate cut to its customers,” he says.
The banks were expected to pass on only part of an expected 25-basis-point interest rate cut yesterday – effectively increasing their net interest margins – but they and most economists were stumped by the RBA’s decision to keep rates on hold for another month.
<a href="https://www.propertyobserver.com.au/economy/rba-may-not-cut-rates-until-may-commonwealth-bank/2012020753285" target="_blank">Commonwealth Bank chief economist Michael Blythe speculated that the RBA could hold off on cutting rates again until May</a>.
ANZ head of Australian economics Katie Dean says the risks have risen that the cash rate will remain on hold “well into the second quarter”.
Westpac chief economist Bill Evans remains hopeful that the RBA will hope “adopt a more appropriate policy response over the course of the next few months beginning with a 25-basis-poing rate cut on March 6” but acknowledges that the bank “does not provide strong encouragement to expect a cut in March”. Yesterday the RBA noted an improving situation in Europe following the intervention of the European Central Bank in December, but a new report by Moody’s lists Australia alongside New Zealand, Korea, and Vietnam as the Asia-Pacific economies most at risk from a collapse in Europe and says further deterioration of the property market is a “menacing risk” facing the economy.
A fall in house prices would impact on foreign investor confidence in Australian property and make it more expensive for banks to raise money offshore, Moody’s has warned.
NAB released its quarterly results yesterday revealing unaudited cash earnings of $1.4 billion, but the bank highlighted “higher deposit and wholesale funding costs”.
“Higher deposit and wholesale funding costs, softening credit growth and fragile economic conditions continued to be key characteristics of the operating environment in most of the regions in which NAB operates,” said National Australia Bank Group chief executive Cameron Clyne.
The other major banks have beat a steady drum about rising wholesale funding costs while the Australian Bankers’ Association last week put out a statement on “how bank funding works and why banks are under funding cost pressures”.
After Westpac announced it would cut about 560 jobs last week, CEO Gail Kelly said that while a cataclysmic collapse in Europe was off the table risks remained elevated and  “if anything they are higher now than they were at any times during the entirety of GFC”.
Kelly also would not commit to pass on any future rate cuts. NAB has pledged to keep offering the lowest standard variable rate of the four major banks.
If ANZ raises its mortgage rates, NAB could also push up its rates and still continue to offer the lowest interest rate of the big four.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" colspan="2">
Standard Variable Rate p.a. 7 February 2012
</td>
</tr>
<tr>
<td valign="top">
NAB
</td>
<td valign="top">
7.22%
</td>
</tr>
<tr>
<td valign="top">
ANZ
</td>
<td valign="top">
7.30%
</td>
</tr>
<tr>
<td valign="top">
CBA
</td>
<td valign="top">
7.31%
</td>
</tr>
<tr>
<td valign="top">
WBC
</td>
<td valign="top">
7.36%
</td>
</tr>
</tbody></table>
</body></html>

Banks unlikely to raise interest rates for home borrowers: RateCity’s Damian Smith

<html><body>
With the Treasury expected to collect about $3.8 billion from stamp duty this year, nationwide home buyers are in agreement on the call to streamline the greatly disputed tax. State-based stamp duties are widely recognised as a drain on our nation’s productivity and an inefficient and unstable source of revenue for each state.
Currently, home buyers are perplexed by the lack of uniformity in stamp duty rates across the country. On a $400,000 home, first-home buyers in Victoria, South Australia and Tasmania are forking out more than $12,000 in charges while those in New South Wales, Queensland, Western Australia and the Northern Territory pay nothing at all. First-home buyers in the $700,000-plus bracket pay as little as $8,130 in NT compared with a hefty $34,860 charge for a standard purchase in NT. On the extreme end of the scale Victorian’s are forking out $41,530 for a property in this price range.
<img src="/images/stories/bennett1.jpg">
<img src="/images/stories/bennett2.gif">
To further complicate matters, we are seeing state governments pull back their concessions for first-home buyers. In Queensland, the government has just recently cut its $10,000 first-home buyers’ boost, the Northern Territory ended its $10,000 grant on new properties on New Year’s Eve last year, and South Australia is completely revoking its discount for buyers of established homes mid-2012.
Evidently, state governments are using the tax as a lever to adjust revenue levels. In late October 2011 the government cut back stamp duty payment deadlines from 90 to 30 days after settlement in a bid to bring forward revenue and help meet budget surplus targets for the year.
Further to this, given the level of activity in the housing sector has declined, removing concessions for first-home buyers is also likely to be an attempt to claw back revenue. If this is the case, it highlights the state’s dependence on a volatile and uncertain revenue base.
Stamp duty creates a barrier for those wanting to buy or sell property in a number of ways. The inconsistency of the tax across the country discriminates against those who move where the jobs are. It also discourages those who need to downsize, predominantly the elderly, which in turn affects first-home buyers looking to enter the market.
In the short term it is clear that the tax cannot simply be removed. However, in the interim, a range of reforms to make the current regime fairer could be introduced, including: the removal of GST on stamp duty (tax on tax) in non-residential transactions; limiting higher stamp duty rates for investors; and, most importantly, the indexation of duty rates so the proportion of tax paid does not increase.
We at the Real Estate Institute of Australia are calling for the removal of state-based property taxes and have been actively lobbying to key government bodies for increased harmonisation of the tax across the nation. As a result of our presentation at the 2011 October tax forum, Queensland and New South Wales governments have agreed to examine the harmonisation of payroll tax and possibly other taxes (stamp duty) and present a state tax reform plan to the federal government by the end of 2012.
Pamela Bennett is president of the <a href="https://www.reia.com.au/" target="_blank">Real Estate Institute of Australia.</a>
 
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pbennett-Zvm5u8EFas

Stamp duty hurting our national productivity

<html><body>
Gerald Foley, managing director of National Mortgage Brokers, has backed Aussie Home Loans and Mortgage Choice’s requirement that their brokers be members of an industry body of their choosing. 
John Symond’s Aussie Home Loans and Mortgage Choice, the two most well-known mortgage broking brands, are currently awaiting a ruling from the ACCC about whether they can continue to <a target="_blank" href="/news">make membership of the Mortgage and Finance Association of Australia (MFAA) mandatory</a> rather than let brokers choose the MFAA or rival industry body the Finance Brokers Association of Australia (FBAA).
The FBAA claims such mandatory requirements are anti-competitive. 
“The current debate in the market seems to be confused around whether a retail aggregator, such as Mortgage Choice or Aussie, has the right to require their members to be members of an association,” Foley says. 
“To me it seems a reasonable position for a branded business to insist that all its members are following the same set of rules.” 
National Mortgage Brokers, which has about 300 brokers, is a member of both the MFAA and the FBAA, and Foley says it sees value in being a member of an industry association. 
“As far as our brokers are concerned, we encourage all our brokers to also be a member of one of the associations, however it is not mandatory. As most lenders, at least at this stage, still require association membership then most brokers have no option but to join,” he says. 
“I think as we all get more comfortable with licensing more lenders will start to relax their association membership requirements and rely on the aggregator and licence holder’s ability to manage their networks.” 
 
 
</body></html>

Mandatory mortgage broker association membership reasonable: National Mortgage Brokers

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NAB has emerged as the big mortgage winner in 2011, with the bank growing its combined owner-occupier and investment mortgage book by an impressive 12% during the 2011 calendar year, according to official APRA figures.
The bank’s growth rate was also more than <a target="_blank" href="/news">double the national housing credit growth rate of 5.4% for 2011</a> calculated by the RBA (the lowest since the central bank began compiling figures in 1977).
During the year in which NAB kicked off its “Break-up” campaign on Valentine’s Day – encouraging Commonwealth Bank, Westpac and ANZ borrowers to switch to NAB – it grew its mortgage book by $19 billion to $177 billion, comprising $126 billion in owner-occupier mortgages and $52 billion in investment loans.
Year-on-year figures for major and second-tier lenders (owner-occupier and investment loans)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="187" valign="top">
 
</td>
<td width="94" valign="top">
Loan book December 2011
</td>
<td width="113" valign="top">
Loan book December 2010
</td>
<td width="114" valign="top">
Gain over the year
</td>
<td width="107" valign="top">
% change
</td>
</tr>
<tr>
<td width="187" valign="top">
Westpac
</td>
<td width="94" valign="top">
$285 billion
</td>
<td width="113" valign="top">
$268 billion
</td>
<td width="114" valign="top">
$17 billion
</td>
<td width="107" valign="top">
6.3%
</td>
</tr>
<tr>
<td width="187" valign="top">
CBA
</td>
<td width="94" valign="top">
$263 billion
</td>
<td width="113" valign="top">
$252 billion
</td>
<td width="114" valign="top">
$11 billion
</td>
<td width="107" valign="top">
4.3%
</td>
</tr>
<tr>
<td width="187" valign="top">
NAB
</td>
<td width="94" valign="top">
$177 billion
</td>
<td width="113" valign="top">
$158 billion
</td>
<td width="114" valign="top">
$19 billion
</td>
<td width="107" valign="top">
12%
</td>
</tr>
<tr>
<td width="187" valign="top">
ANZ
</td>
<td width="94" valign="top">
$163 billion
</td>
<td width="113" valign="top">
$153 billion
</td>
<td width="114" valign="top">
$10 billion
</td>
<td width="107" valign="top">
6.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bankwest (owned by CBA)
</td>
<td width="94" valign="top">
$45 billion
</td>
<td width="113" valign="top">
$40 billion
</td>
<td width="114" valign="top">
$5 billion
</td>
<td width="107" valign="top">
12.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
ING Direct
</td>
<td width="94" valign="top">
$37 billion
</td>
<td width="113" valign="top">
$36.5 billion
</td>
<td width="114" valign="top">
$0.5 billion
</td>
<td width="107" valign="top">
1.35%
</td>
</tr>
<tr>
<td width="187" valign="top">
Suncorp
</td>
<td width="94" valign="top">
$29 billion
</td>
<td width="113" valign="top">
$28 billion
</td>
<td width="114" valign="top">
$1 billion
</td>
<td width="107" valign="top">
3.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bendigo and Adelaide
</td>
<td width="94" valign="top">
$22 billion
</td>
<td width="113" valign="top">
$19 billion
</td>
<td width="114" valign="top">
$3 billion
</td>
<td width="107" valign="top">
15.7%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bank of Queensland
</td>
<td width="94" valign="top">
$21 billion
</td>
<td width="113" valign="top">
$17 billion
</td>
<td width="114" valign="top">
$4 billion
</td>
<td width="107" valign="top">
23.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
HSBC
</td>
<td width="94" valign="top">
$7.3 billion
</td>
<td width="113" valign="top">
$6.8 billion
</td>
<td width="114" valign="top">
$0.5 billion
</td>
<td width="107" valign="top">
7.3%
</td>
</tr>
</tbody></table>
Source: APRA figures
When including the performance of its subsidiary Bankwest (growth of 12.5%) the Commonwealth Bank managed growth of 9.4%. As a stand-alone brand, the Commonwealth Bank managed growth of 4.3% for the year.
ANZ and Westpac (including St George and Bank of Melbourne) managed similar mortgage growth of 6.5% and 6.3%.
Using the same APRA figures but over a longer period and looking only at owner-occupier mortgages, The Weekend Australian shows the big four have grown their mortgage books by a combined $175 billion since the GFC (November 2008- December 2011), with Westpac showing the greatest growth (helped by the addition of St George’s $38 billion book) from $75 billion to $166 billion.
Federal Treasurer Wayne Swan disagrees that the major banks are increasing their market share.
“A lot of what you read from time to time in this area doesn't match up with the facts. We have powerful vested interests out there that are pushing their line all the time,” Swan said in an interview on the ABC’s Insiders program yesterday.
“Certainly the big four have a large market share, but these competition reforms are driving the capacity of the smaller lenders to get in there and to provide some vigorous competition and to give consumers a choice so that if they're unhappy with one of the big banks they can walk down the road and get a better deal,” he says.
Among the second-tier lenders, Bank Queensland was the star performer, recording mortgage growth of 23.5% over 2011, followed by Bendigo and Adelaide Bank (15.7%).
NAB has maintained the lowest standard variable interest rate of the big four banks – currently at 7.22% compared with ANZ’s 7.3%, Commonwealth Bank’s 7.31% and Westpac’s 7.36%.
It also currently has the lowest standard variable mortgage in the market through its online brand Ubank – currently at 6.14%, though only for those borrowers who are refinancing.
 
 
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Second-tier lenders and NAB big winners in 2011 mortgage wars

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Westpac says expectations of lower mortgage growth and the need to remove duplicate back-office roles as part of phase two of its post-St George merger are the reasons for its decision to axe about 560 jobs.
Peter Hanlon, Westpac financial services executive, says the job cuts will mostly be in mortgage processing and head office roles.
“We don’t see in the near to medium term a pick-up in housing or business credit growth,” he said following the announcement.
Hanlon estimates about one-third of those axed will be transferred to other roles, with up to 400 staff made redundant.
The move to cut jobs has been slammed by the Finance Sector Union, which has urged the government to intervene and stop the cuts. 
“Westpac can afford to keep every single one of these workers in their jobs and continue to make a multi-billion-dollar profit,” says FSU secretary Leon Carter.
In an interview on ABC radio today, Westpac CEO Gail Kelly refused to rule out further job cuts and would also not say how much of an expected February rate cut the bank would pass on to borrowers.
Her comments on higher funding costs suggest borrowers should brace themselves for the banking not matching any RBA move.
“These are complex matters and we won’t foreshadow and decision ahead of the time,” Kelly said, adding that the linkage between interest rate decisions and the cash rate had weakened.
However, she said the actions of the European Central Bank (ECB) in December that injected significant liquidity into the banking system had taken “the cataclysmic risk of the eurozone collapsing off the table”.
“[The actions of the ECB] have underpinned the banking system and the eurozone overall,” Kelly said.
However, she said hopes voiced a year ago that funding costs would be on the decline and returning to more normal levels had not happened,
“The troubles in the Eurozone means they have remained elevated. If anything they are higher now then they were at any times during the entirety of GFC and its more expensive to raise deposits,” she said.
Kelly said the bank had to safeguard net interest margins on its loans or else face the risk of potentially reducing the level of credit provided and “potentially landing up in a credit crunch”.
“We’re into a very much more slowing growth world – you only have to look at Europe to see that we are into several more years of much slower growth.
“This changed world brings with it higher levels of funding costs and changing consumer patterns and as banks we do need to adjust.”
She also defended the jobs cuts and said they were part of plans to simplify banking systems.
“This is the largest announcement we are likely to make this year …you can expect us to have a lower number of employees at the end of the year than we had at the beginning,” she said.
Kelly pointed out the bank was adding new roles at the same time as sacking staff, adding about 200 staff to its Bank of Melbourne operations, 50 new roles in financial advice, 50 new roles in institutional banking and has recently recruited 83 graduates.
The Property Council of Australian office report forecasts 7,000 financial services jobs to go in 2012.
ANZ axed about 130 positions earlier this month while the Royal Bank of Scotland plans to cut 170 jobs in Australia.
 
 
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Westpac cuts jobs as mortgage demand falls and won’t commit to passing on rate cuts

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AFG mortgage brokers arranged 4,736 home loans worth a combined $1.8 billion in January 2012, a 40% increase on January 2011, when brokers wrote 3,583 worth $1.3 billion. 
The aggregator says the January result marked a return to more normal trading levels after January 2011 was affected by the Queensland floods and other natural disasters. 
Not surprisingly, one of the biggest jumps in mortgage sales was recorded in Queensland, where brokers wrote 80.6% more mortgages in January 2012 than January 2011. 
The top performer was South Australian, where sales increased by 84.5% compared to a year ago. 
There were also significant uplifts in WA (+ 37.4%), Victoria (+25%) and NSW (+14.5%). 
In January WA also took over from NSW as the most popular state for first-home buyers, with almost one in five new mortgages (19.1%) in WA arranged for first-home buyers compared with 14% in NSW. 
NSW retained its position as the most popular state for property investors, with 40.2% of loans arranged for investment purposes, compared to 36.8% in Victoria, 34.9% in Queensland, 32.6% in Western Australia and 32.0% in South Australia. 
Major banks recovered some of the market share they lost in December, writing 79% of all mortgages in January, compared with 76% in December.  A year ago major banks wrote 81% of all AFG mortgages. 
Mark Hewitt, general manager of sales and operations, says: ‘While markets across the country have recovered from last year’s natural disasters, right now we have a strong sense that borrowers are playing wait and see on rates. 
“Will the RBA cut rates, and if so, how much of this will be passed on by lenders? 
“It seems that we are moving to a new paradigm where there is less and less linkage between the cash rate and mortgage rates. An RBA cash rate cut will not automatically translate into improved consumer confidence." 
The AFG Mortgage Index also shows that nearly one in five new borrowers (18.6%) opted for a fixed-rate home loan. This figure is close to the high water mark of 20.4% for fixed-rate products recorded last October.
 
 
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Mortgage sales up 40% in January year-on-year: AFG

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Demand for fixed-rate mortgages appears to have peaked, with Mortgage Choice recording a drop in the proportion of these loans written in January, the first decline since May 2011.
Mortgage Choice customer data shows fixed-rate products accounted for 21% of all new home loan approvals in January 2012, a fall from 24% in December 2011.
The mortgage broking franchise expects fixed-rate demand to fall further in February, should lenders pass on all or some of an RBA rate cut next week.
The likelihood of banks passing on a full RBA rate cut appears to be growing more remote by the day, with the Australian Bankers Association today putting out a statement attempting to explain how banks source their funding and highlighting that more than 20% of their funds comes from overseas.
“Australia’s banks have to raise an important proportion of their funding from overseas,” says Steven Münchenberg, chief executive of the ABA.
“The deep crisis in Europe means the cost of borrowing money in those international markets has risen to levels last seen during the global financial crisis… Because overseas prices are so high, there is greater demand for funds from depositors and investors in Australia.  This has driven up the price of this money as well.
“While the RBA has been cutting rates, banks have continued to pay high interest rates to depositors, benefitting Australian savers, but adding to the cost of bank funding,” he says.
The number of lenders cutting fixed rates has fallen sharply, with Westpac brands St George and Bank of Melbourne the last big lenders to trim fixed rates, doing so just before Christmas.
Despite the drop, <a target="_blank" href="/news">demand for fixed-rate mortgage</a> still stands well above both the six-month average of 19% and the 12-month average of 16%.
Demand for ongoing discount variable-rate mortgages (where the rate is discounted over the life of the loan in exchange for higher fees) jumped from 41% to 46% in January, an all-time Mortgage Choice high.
<img src="/images/stories/mcfeb2.gif">
“Our latest loan approval figures suggest borrowers taking out new loans at the start of this year were less concerned with locking in their loan’s interest rate than those who took out a new loan in late 2011,” says Mortgage Choice spokeswoman Belinda Williamson. 
“Interest rate cuts and generous discounting on variable rate loans could be the key drivers behind borrowers giving fixed rate loans the cold shoulder. The margin between fixed and variable has narrowed, with most variable rates now sitting only slightly higher than fixed rates,” she adds. 
According to Williamson, if the RBA cuts rates on February 7 and lenders pass on most of this rate cut, “some variable rates could very well fall below fixed rates”. 
“If this occurs, next month’s loan approval data may show a bigger shift towards variable rate loans.” 
Demand for basic variable loans fall slightly to 14% of all approvals in January, from 15% in December while standard variable loan demand dropped marginally to 15% from 16%. 
Line-of-credit loan popularity held steady at 3% and interest in introductory rate loans remained below 1%.
 
 
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Banks talk of withholding RBA cuts while fixed-rate mortgage demand falls

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Mortgage lending remains in the doldrums, with the latest RBA figures showing only a 0.4% increase in housing credit provided during December on a seasonally adjusted basis. 
The December result matched the 0.4% increase in housing credit provided in November. 
For the calendar year, mortgage lending is up 5.4% compared with annual growth of 7.2% recorded in December 2010.
This is the lowest growth since records began in 1977. The previous lowest annualised growth for a calendar year was 7.2% recorded in December 1982.
Owner-occupier lending increased by 0.4% in December to be up 5.7% for the year, while loans to property investors increased by 0.3% to be up 4.8% for the year. 
On an annualised basis, mortgage lending declined every month of 2011. 
Economist and former Gillard government advisor Stephen Koukoulas tweeted: “Housing credit growth slumps to new 34 year low (since records were kept dating back to 1977)... the disappointing news continues.” 
Mortgage lending growth in 2011 (monthly and annual growth in %)
 
<table width="223" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="101">
 
Jan-2011
</td>
<td valign="bottom" nowrap width="59">
0.6
</td>
<td valign="bottom" nowrap width="63">
7.2
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Feb-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.9
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Mar-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.5
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Apr-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
May-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.2
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Jun-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.1
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Jul-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.0
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Aug-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.9
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Sep-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
5.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Oct-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.7
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Nov-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.6
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Dec-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.4
</td>
</tr>
</tbody></table>
Source: RBA
Mortgage lending has not grown by more than 1% per month since June 2007, when it increased by 1.3%.
Since then mortgage lending growth has varied between 0.4% and 0.8% per month.
Business lending rose by 0.3% over December to be up 1.4% for the year while personal credit declined by 0.1% over December to down 1% for the year.
Total credit provided to the private sector by financial intermediaries rose by 0.3% over December 2011 to be up 3.5% for the year.
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