Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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 proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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An August rate cut was always going to be improbable, barring a rogue core inflation number (something equal to or less than 0.3%) or a “surprisingly” negative shock out of Europe, which takes some effort these days. The RBA has for a long time been banking on heightened global economic volatility, so the day-to-day ructions rumbling out of Europe should not change its already very stimulatory stance.
How do I assess the impact of today's inflation data? The policy-making decision should be clear. Firstly, the most credible information we have on economic growth ­–the first quarter National Accounts – surprised the RBA (and dovish economists) significantly on the upside. Over the 12 months to March, GDP was at trend or higher – certainly nothing that ostensibly warrants 125 basis points worth of cash rate cuts (or punishment for prudent savers).
Secondly, as the Governor revealed yesterday – and I had argued here for some time – the unemployment rate has remained stubbornly below the RBA's current forecast of around 5.5%. That's not to say it will not get there in due course. But, as the Treasury's David Gruen has shown, the geographic dispersion in unemployment has also declined over time, rather than an increase one might expect with an economy undergoing structural adjustment. So the labour market, which is a key variable the RBA uses to forecast future inflation, has also surprised the Bank on the positive side.
Thirdly, rightly or wrongly, the RBA's board decided to cut the cash rate on four separate occasions since the start of November last year, which has pushed variable mortgage rates a chunky 50 basis points below their inflation-targeting average. If we stretch our time horizon back further – say to 1980 – current housing finance rates look even more accommodating. While the RBA was likely disconcerted by the weakening in house prices in April and May on purely financial stability grounds, it would have been equally comforted by the striking rebound in prices over June and July (see chart below). I expect APM's index results for the June quarter to be similarly benign.
<img height="284" width="469" src="/images/stories/2012/CJ_graph.jpg" alt="CJ_graph">
The bottom line is that the bulk of the RBA's rate cuts since November were rationalised on the basis it needed to furnish Australians with "insurance" against adverse future contingencies (specifically, the December, May and June cuts). The good news is that these catastrophes have yet to materialise, notwithstanding the efforts of some in the popular media to convince us otherwise.
The point that some analysts appear to miss is that the RBA's research indicates that a cash rate change today takes two years to have its full affect on inflation. Accordingly, we have not come remotely close to yet understanding the practical influence of the RBA's repeated (and seemingly reflexive) spate of cuts.
What we have seen in the producer and import price data is that the absence of currency appreciation has translated almost immediately into elevated (import) price pressures. With core inflation apparently troughing at the bottom of the RBA's deliberately “wide” 2% to 3% band (note most central banks consider inflation of 2% per annum quite normal), and much economic stimulation yet to be fully transmitted through the system, the RBA is understandably keen to watch and wait.
This is why I expect most of the remaining economists predicting a rate cut in August to discard their calls. As I previously showed here, a total of 10 economists had dropped their August cuts over the last month. I suspect most (although not all) of the holdouts will quickly follow. To be clear, a cut is still a possibility, albeit a low probability.
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chrisjoye-JYhJsTrNRC

Watch economists run from rate cut calls: Christopher Joye

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The Consumer Price Index (CPI) rose 0.5% in the June quarter 2012, compared with a rise of 0.1% in the March quarter 2012.
This reading was just below forecasts of a 0.6% quarterly rise, according to a poll of 24 economists by Bloomberg last week.
The CPI rose 1.2% through the year to the June quarter 2012, compared with a rise of 1.6% through the year to the March quarter 2012, well within the RBA's target 2% to 3% per annum inflation band, leaving room for the RBA to cut rates later in the year, should it need to.
Annualised CPI is now at its lowest rate in 13 years, CommSec points out. The most significant price rises in the June quarter 2012 were for medical and hospital services (+2.8%), rents (+1.1%), vegetables (+5.2%) and furniture (+4.5%).
The most significant offsetting price falls were for domestic holiday travel and accommodation (–4.0%), audio, visual and computing equipment (–3.8%) and cakes and biscuits (–2.8%).
CommSec expected underlying inflation to come in at 0.6% for the June quarter and 1.9% for the year and said this should “make the Reserve Bank even more comfortable that over the mid-term inflation remains well contained” providing scope for a rate cut over the next couple of months.
JP Morgan economist Ben Jarman says today's CPI figures won't surprise the RBA "in any meaningful way".
The Commonwealth Bank is now forecasting the next rate cut in November, having previously forecast one on August 7.
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lschlesinger-FZcF9M3vE6

Inflation up 0.5% in June quarter, slightly below expectations, leaving room for future rate cuts

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I hate being stuck in traffic and, if you’re like most Australians, so do you.
So if you’re a Sydneysider it’s unlikely to surprise you that a recent NSW Department of Transport survey reports that except for New York City, Sydney now has the <a href="https://www.bts.nsw.gov.au/ArticleDocuments/112/BR2012_04_transport_facts.pdf.aspx">longest reported commute time in the world</a>.
In fact, the average Sydney commuter spends nearly an hour longer travelling to work each week than the average Los Angeles commuter, as Sydney's average work trip travel time have blown out to 34.3 minutes one-way.
Even longer commutes ahead 
And as if that isn’t bad enough, Sydney's densification planning policies seem likely to lengthen commute times even more in the future.
It is therefore not surprising that more and more people are swapping their backyards for balconies and choosing to live in Sydney’s inner suburbs, with demand coming not only from young people but families wanting to live closer to the city.
The result is a shortage of established apartments that is pushing up property values and rents.
Residex <a href="https://www.residex.com.au">www.residex.com.au</a> reports that Sydney apartment rents increased almost 10% over the last 12 months and, in certain areas, such as pockets of the inner-west, the rate of increase has been significantly higher than this.
The Sydney market is segmented
 While the overall Sydney property market has been reported as flat over the last few years, it is in fact segmented. Apartments in the inner west and eastern suburbs have performed strongly, with double-digit growth not uncommon in a number of suburbs.
On the other hand, at the upper end of the market, luxury house prices have faltered, as have home values in the outer suburbs.
However, with the undersupply of good near-city apartments pushing up rentals, first home buyers are coming back to the market. At the same time, savvy property investors are getting ready for the next stage of the cycle.
The good news is the Sydney property market is moving out of the doldrums, but it doesn’t mean the next boom is upon us.
Typically, the next stage of the property cycle is the stabilisation phase. Buyers come back and slowly more sellers, including some who couldn’t move their properties over the last few years, are going to put their properties back on the market and we’ll have a period of unspectacular growth.
What smart property investors are doing 
Over the next year strategic property investors are going to set themselves up for the next Sydney property boom by buying the right type of property at the right price.
They will have learnt from the last few years and rather than speculating, they will buy a property with an element of scarcity that will be in continual strong demand by owner occupiers (because these are the ones who push up property values) and tenants.
Others who sit on the sidelines will look back in a few years time and say, “I wish I’d bought in 2012”.
I’ll be sharing my thoughts on the Sydney property markets at my upcoming National Property Market and Economic Updates around Australia. <a href="https://propertymarketupdate.com.au/">Click here</a> for further details.
 
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myardney-DFoGhGbSJX

What will Sydney's long and lengthening commute times do to property? 

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The upbeat assessment of the Australian economy by RBA governor Glenn Stevens in his <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712">“Lucky Country” speech in Sydney yesterday</a> has further dimmed chances of rates being cut in August, according to both Commsec and ANZ.
Commsec chief economist Craig James says the governor’s speech was designed to “outline the facts rather than fallacies about Australia’s economic performance and the potential to handle future shocks”.
“The Reserve Bank governor reportedly noted that policy settings are about right. While that doesn’t preclude a rate cut in August, the factors would need to present, such as further instability in Europe and a low domestic inflation result."
“CommSec is still pencilling in a rate cut over the next few months,” James says.
A similar assessment of the tone of the speech was made by ANZ Research in its latest economic update.
“RBA governor Glenn Stevens today delivered a fairly upbeat assessment of the Australian economy in his speech entitled ‘The Lucky Country’,” says Craig Michaels and Dylan Eades of ANZ Research.
Michaels and Eades note Stevens' argument that Australia has made its own luck in delivering a “remarkably good” performance against a very turbulent international background, Stevens' contention that concerns underlying weaknesses in the Australian economy are overstated; and that even if downside risks do materialise, Australia is well placed to manage them.
“Importantly, the tone of the speech suggests that the hurdle for significant interest rate cuts is much higher than markets are currently pricing,” they say.
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August rate cut hopes dim further following upbeat Glenn Stevens "Lucky Country" speech: Commsec, ANZ

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Twitter was unusually abuzz with positivity following Glenn Stevens' speech today about Australia’s status as “The Lucky Country”.
Clearly delighted with the tone and content of Steven’s address, Rismark and Yellow Brick Road’s Christopher Joye (<a href="https://twitter.com/cjoye">@cjoye</a>) tweeted:
<img src="/images/stories/2012/chrisjoye.jpg" alt="chrisjoye" height="77" width="487">
Joye was joined in his praise of the RBA governor by his frequent Twitter sparring partner, Stephen "The Kouk" Koukoulas (<a href="https://twitter.com/TheKouk">@TheKouk</a>) – former Gillard economic adviser and soon-to-be economic scribe for Alan Kohler’s Business Spectator website, who used an unusual adjective (perhaps tongue-in-cheek) to describe his appreciation of the speech:
<img src="/images/stories/2012/stephenkouk.jpg" alt="stephenkouk" height="79" width="495"><a target="_blank" href="https://t.co/BQNKcxsk"></a>
Self-interested Federal Treasurer Wayne Swan (<a href="https://twitter.com/SwannyDPM">@SwannyDPM</a>) was so excited about the Stevens' speech, he tweeted not once, but twice to his 20,687 followers, beginning with an attack on the “doomsayers":
<img src="/images/stories/2012/wayneswan1.jpg" alt="wayneswan1" height="111" width="497">
Followed by:
<img src="/images/stories/2012/wayneswan2.jpg" alt="wayneswan2" height="96" width="501">
It was left to The Age’s Chris Zappone (<a href="https://twitter.com/chrizap">@chrizap</a>) to restore some bearish balance to the debate. Not surprisingly perhaps, given Melbourne has been the last (and most recent) city to experience the house price downturn, he tweeted:
<img src="/images/stories/2012/chriszappone.jpg" alt="chriszappone" height="93" width="491"><a href="https://twitter.com/search/%23in"></a>
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Tweet of the day: Glenn Stevens' “lovely” speech gets thumbs up

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The US housing market is now an “outlier” when it comes to making international comparisons, says RBA governor Glenn Stevens, who appears to be questioning whether we should compare ourselves with the US when considering the likelihood of possible future housing corrections.
Stevens says that simply comparing the two markets – Australian and the US – it would be “hard to avoid the impression that gravity will inevitably exert its influence on Australian dwelling prices”
But when you compare Australia with other international housing markets, Stevens says, “the picture is much less clear”.
“To the extent that we can make any meaningful statements about international relativities, the main conclusion would be that Australian dwelling prices, relative to income, are in the pack of comparable countries. In this comparison, the United States seems the outlier,” <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">he said in a speech to the Anika Foundation Luncheon in Sydney today</a>. 
Stevens presented two charts to show how Australian housing affordability has diverged from the US since 1986, but performed in line with many other comparable countries.
The first of these charts just compares Australia to the US on the basis of dwelling prices to income ratios and shows that the two countries were last on a comparable footing in 1986 – but since then have diverged marketedly.
<img alt="dwelling1" height="380" width="470" src="/images/stories/2012/dwelling1.gif">
Between now and 2011 Australian house prices have trended up from a ratio of 2:1 to 4.1 – with slight correction around the GFC while US house prices relative to income have remained below a ratio of 2:1, having accelerated towards a ratio of 3:1 from around 1996 until the GFC brought about a dramatic fall in prices.
Comparing Australia with a host of other international housing markets on the same ratio measure, Stevens presented a difficult to read spaghetti-like chart (below).
It does however show that countries like New Zealand, the Netherlands and the UK have housing markets performing in the realm of the Australian market, while Japan is now more closely linked to the US.
<img alt="dwelling2" height="400" width="470" src="/images/stories/2012/dwelling2.gif">
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available.
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom.
“In the United Kingdom the fall was smaller – at about 15%–20%.
“In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available."
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom."
“In the United Kingdom the fall was smaller – at about 15%–20%. In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
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Australia has its own place in the world when it comes to housing affordablility: RBA’s Glenn Stevens

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While everyone seems to agree that the residential market is currently moving sideways, investors often find it difficult to gauge how direct investment into commercial property is really travelling.
Perhaps the best gauge is to take a look at what the sharemarket thinks about A-REITs (Australian Real Estate Investment Trusts).
Generally, these yields tend to operate at about 1.5% to 2% below direct investment into property. Nonetheless, they can be a great indicator of where the present trend is heading.
With debt now under control, the A-REITs have put in a solid performance over the 12 months to June this year.
As you can see from the charts, this trend has been consistently upwards when compared to:
<ul>
<li>10-year bonds</li>
<li>The RBA cash rate</li>
<li>Most other types of equities</li>
</ul>
In fact, since January 2011, A-REITs have returned 11.2% in total, as opposed to equities at -9.3%.
 
Looking forward
With consolidations, the number of A-REITs has dropped from 24 to 19. And investors also have the comfort of knowing they are buying at a discount to current asset backing.
Those A-REITs focusing primarily upon office and industrial property would appear to be performing the best. That is consistent with what we're currently seeing with direct investment into commercial property.
The bottom line
As you're probably aware, the sharemarket tends to price in forward trends, generally giving you a six-month lead-time on what is likely to occur.
As such, you now have yet another source confirming the underlying strength of the commercial property market. This should give you some added comfort to secure a property now, in your own right.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Why commercial property is trending up

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A second influential economic think tank believes the mining boom will start to fade in the medium-term, replaced by growth in other parts of the economy. including investment in new residential property.
Coming on the back of the <a href="https://www.propertyobserver.com.au/hotspots/tourism-helps-broken-hill-shed-its-one-horse-mining-town-investment-status-as-deloitte-s-questions-mining-boom-longevity/2012072255635">Deloitte Access Economics business outlook report</a>, which says the mining boom may be over in just two years, BIS Shrapnel expects mining investment to continue to grow over the next two years, but at a moderate pace.
In its Long Term Forecasts 2012-2027 report BIS Shrapnel expects the mining investment slack to be taken up by non-mining sectors of the economy, including a pick-up in investment in the residential property sector.
“Residential investment, triggered by recent interest rate falls, should start growing from late this year, driven by the dwellings shortage that has developed,” says Tim Hampton, senior economist at BIS Shrapnel.
“And non-mining business investment, currently below levels required to underwrite even moderate demand, will recover as interest rate reductions over the past year support demand and capacity constraints emerge." 
According to BIS Shrapnel, solid population growth underwritten by a rebound in immigration, combined with around average employment and wages growth, will continue to support growth in household expenditure.
However, due to persistently high household debt, BIS Shrapnel believes that expenditure growth will “not approach the giddy heights that it did during the debt-fuelled spending spree of the early-to-mid-2000s”.
BIS Shrapnel expects GDP growth to remain around its current rate of just above 3% for the next five years.
It warns that the biggest risks to the Australian economy – and a likley rebound for housing and non-mining sectors – remains the potential for the European economic crisis to have a larger-than-forecast negative impact on Australia
“We expect the European situation will get worse before it gets better, and will drag on for many years,” says Hampton.
“Irrespective of how their significant issues are resolved (eg. Euro break-up, further debt write-offs), the main channels of influence for Australia will be through reduced consumer and business confidence, lower commodity prices and tighter funding conditions."
“This would likely further delay the recovery in dwelling and non-mining business investment.”
The report identifies a marked slowdown in mining investment over the next two years.
It says that new private engineering construction, which after increasing by 50% over the past year, is expected to grow by 16% over the next year and just 8% the following year.
“At the same time, public sector investment – having been boosted by post-GFC stimulus packages – is now falling sharply as those packages wind down and all levels of government try to get their finances in order,” says BIS Shrapnel.
Hampton expects the recovery in residential property, combined with a revival in the non-mining sectors of the economy, to be strong enough to prevent the economy from stalling as it transitions to a more broadly-stronger footing.
Currently, Hampton says the economic picture is one “out of balance, undergoing significant structural change, with offsetting cycles averaging to a moderate outcome” driven by the high Australian dollar, which is impacting on competitiveness, thereby creating enormous pressure and resulting in job losses in trade-exposed industries like manufacturing, tourism, education and business services.
“Meanwhile, around 60% to 75% of the economy is sheltered from the impact of the high dollar. Those with economic power are doing well – the banks, the major supermarkets, utilities,” says Hampton.
“But SME businesses with little economic power and those that rely on servicing non-mining investment are largely languishing, with weak growth and profitability, particularly those whose gearing makes them vulnerable. Hence the continuing threat of insolvencies.”
These sheltered industries are the ones that will benefit most from lower interest rates and the forecast increase in non-mining private investment.
However, the outlook for non-mining trade-exposed industries remains poor, which BIS Shrapnel says will continue to suffer under the weight of the high Australian dollar and an uncertain global economy.
A more enduring risk, Hampton warns, is that the significant under-investment in the non-mining industries and infrastructure gradually erodes the medium-term growth potential of the economy, and leaves the Australian economy increasingly sensitive to large fluctuations in world commodity prices. Businesses will also need to make further gains in terms of energy efficiency, with energy prices expected to continue to rise strongly for the foreseeable future.
Finally, there is a risk of a collapse in minerals prices and investment as the cycle turns down. In that regard, BIS Shrapnel believes that increased supply, rather than lack of demand, poses the greatest downside risk to world commodity prices. However, a fall in world demand would initiate a much larger shock.
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New housing investment to pick up this year as mining influence expected to fade over next two years: BIS Shrapnel 

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Buyers are most keen on low-rise development close to capital city CBDs, according to the June NAB Residential Property Survey.
This was the only sector of the property market where demand was "good" (as opposed to "fair") in June.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/07/nabjuly126.gif" title="Click to enlarge"><img src="/images/stories/2012/07/nabjuly126thumb.gif"></a>
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Buyer demand strongest for low-rise inner-city apartments: NAB Residential Property Survey

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"Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital." – Aaron Levenstein, associate professor emeritus of business, Baruch College.
Statistics – don’t you love them? Or perhaps I should rephrase and ask – do you understand them? Don’t feel the need to grope in the dark for an ad hoc explanation of the data – even “experts” fight over the publicised and regularly conflicting reports that solidly “claim” we’re both in a rising and falling market.
In fact, Oxford Mathematician Peter Donnelly produced a wonderful <a href="https://www.ted.com/talks/peter_donnelly_shows_how_stats_fool_juries">Ted Ed lecture</a> on the subject, which demonstrates rather succinctly how a simple and common misreading of statistics can have serious repercussions on an individual’s life. He paints the story of Sally Clark, a British lawyer who was imprisoned for the murder of her two sons who tragically died of sudden infant death syndrome.
The chances of sudden infant death syndrome occurring in a professional “non-smoking” family unit are around one in 8,500 – therefore the “distinguished” paediatrician who testified against Sally at her trial, “logically” squared the formula and calculated the chances of two children dying of the same condition was around one in 73 million. In effect, it put the jury in no doubt of her guilt.
Of course, the paediatrician was absurdly incorrect in his “assumption”. In truth, the chances of a second child dying from the same condition could be influenced by a number of external factors – both genetic and environmental – of which a microscopic view of basic statistics won’t take into consideration. Therefore, without going into too much detail, two deaths flag the need to consider the overall picture from a broader angle, eventually proving it was “more” not “less” probable for the second death to occur. Thankfully, the conviction for Sally was overturned and consequently, two other mothers convicted for similar crimes were also released. However, it clearly demonstrates how frequently statistics are misinterpreted by seemingly well-respected and educated individuals.
As for property prices – going into intricate detail on how monthly and quarterly data is collected, collated and interpreted is a science in itself. The reasons for the discrepancy can be broadly explained by the method, duration and specific grouping of data which differs between each agency provider. However, for those interested, it’s worth browsing through the ABS publication – it’s written in such a way, that if you’re not presently confused or averse to reading heavy educational research documents – you soon will be! Therefore, before you feel tempted, take note of the following ABS statement which sums up their purpose perfectly: <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6416.0Main%20Features4Mar%202012?opendocument&amp;tabname=Summary&amp;prodno=6416.0&amp;issue=Mar%202012&amp;num=&amp;view=">“They are published primarily for use in Government economic analysis.” </a>
As a case in point, over the past few weeks we’ve seen RP Data-Rismark, Residex, and the REIV all produce differing interpretations of the state of Melbourne’s market for the both the month of June and June quarter. RP Data were first off the bat, recording a rise of 1% in Melbourne’s median house price over the month of June to $480,000. The REIV were slightly more “bullish”, recording a rise of 2.9% in the June quarter taking the median to $520,000 (although they did specify that the gains were no more than a correction of previous drops in Melbourne’s median data). As for Residex, they have collated their own figures and recorded a drop in both the month of June and the June quarter by -0.49% and -1.31% respectfully. They record Melbourne’s current median house price at $555,000. So who do you believe?
All of the above is irresistible fodder for industry professionals who can “pick and choose” which data to reference (or ignore) based on their own reference point. However, I often wonder if any actually take the time to weigh up the information or research the methodology behind their findings?
The dialogue that has been published and subsequently scrutinised based on these conflicting results has consequently split the “bulls” and “bears” directly down the middle. According to random groups of commentators we’re both “recovering” and “falling”. Furthermore, how does the average home buyer or investor cope with such conflicting information circulating through various social media outlets or out of the mouths of “respected” industry professionals?
Does a vendor add or subtract a percentage or two to their asking price or reserve prior to an auction?
Do investors and buyers make hard and fast choices whether to sell, buy or hold based on the information?
I know from my own experience, purchasers who read media commentary will often be shaken one way or the other – depending on the report. However, considering how commonly the statistics are “skewed” it’s a somewhat foolish path to adopt.
Having said this, you can understand why various realtors jump on any glass half full opportunity to pump the market. In an industry reliant on turnover, a lack of confidence in the investment sector – the demographic particularity sensitive to statistical commentary – can be extremely detrimental. Investors are all but worshiped by realtors; well known for their non-emotional and often speedy approach to the buying/selling process.
However, as I cited above regarding the falsely convicted lawyer Sally Clarke, it’s important to understand a broader set of influences other than median data if you really want to grasp the statistics and draw a line where conflicts arise. For example, assuming a rise in median prices signals a broad based “recovery” the housing market becomes rather shaky when you take into account (as I pointed out last week) “overall” year to date turnover is lower than it has been over the previous four years – particularly so in Melbourne.
Other statistics indicate a large amount of stock lingering on the market. Nationally there are over 300,000 homes for sale and the previous norm has been closer to 200,000. Once again, this is specifically pronounced Melbourne – and therefore any assumption we have entered an extended period of growth, goes against the well known premise that more supply equals lower values.
Furthermore, the clearance rate of late has been jumping around like a yoyo. Melbourne’s clearance rate last week came in at 61% based on a similar number of auctions to the previous week, during which it came in at 52%. Clearance rates don’t generally move nine percentage points in one week, however, once again, industry commentators can take their pick which to “believe” or reference, all depending on their glass half empty or glass half full viewpoint.
The other layer of complexity that needs to be considered, is even with a stratified index which segregates property into different types based on number of bedrooms and so forth, it’s impossible to draw a hard and fast conclusion on a commodity which is purchased – in many cases – solely on a buyers individual tastes and needs. Unless we’re looking at a row of identical terraces with little to no differentiation between them, a home can mean one thing to one buyer and something completely different to another. Therefore, any reading of statistical data – especially when turnover is low – is no doubt down to the particular composition of properties selling rather than an indication of market recovery.
Take for example the tale of two houses recently auctioned on the same street in the attractive bay side suburb of Hampton in Melbourne. Both are four-bedroom detached dwellings situated on ample land sizes with north facing rears. One block featured a rather dated 1990s dwelling, “liveable”, but in need of work over the long-term. The other featured a property that had been updated with an element of “wow”, complete with an in-ground swimming pool in the back yard.
At the beginning of June this year, the 1990s dwelling was auctioned, attracting a large crowd of interested participants and no less than four bidders. The sale price exceeded both expectation and reserve, selling under the hammer for $1,695,000. It was a boom price and trended directly against the doom and gloom reports recently circulating in the media. No doubt the owner of the second property was rubbing their hands together in gleeful expectation.
Three weeks later and the second home was auctioned, however this time, the event only attracted a small crowd of neighbours. With no evident interest from the crowd, the home passed in on a vendor bid for $1,625,000 and remains on the market today.
This tale is far more relevant to property buyers than the frequently referenced statistics. There is no fast and hard rule to what will attract one buyer to pay above current assessed value or a second to turn their nose up at the same property – as the well known saying goes: “Beauty is in the eye of the house buyer” – and ever more so in a market atmosphere where turnover is arching back to that of the late 1990s.
However, the number that will feed into the median statistics is the boom result – thereby inflating the median data. Considering the above story is a common function of a sluggish market, where only the “best” homes attract healthy demand – a rise in the median indicates precisely this – and is not necessarily an emerging trend of market recovery.
The same applies to the two properties in Hampton. I could give you a number of reasons why the first property attracted four bidders and sold for a boom price in a dwindling market atmosphere – however I won’t be assessing the stats. I’ll be looking at the property, location, buyer interest, historical performance, suburb profile and potential for future development.
As for the average home buyer, well the statistics may indicate whether it’s a buyer or vendor market, however they’ll give little clue to the current value of a property aside perhaps an inkling of overall sentiment. Similarly, a valuer will give statistics just a passing thought when completing a sworn valuation – assessing recent comparable sales is obviously a better property specific indication.
Until overall turnover markedly improves and the clearance rate – which broadly indicates the heat in the market – rises and stabilises consistently week to week you may as well give microscopic monthly, or for that matter quarterly, statistics little more than a cursory glance.
Over the past few weeks there have only been around 350 properties auctioned in Melbourne – approximately half the usual numbers we experience. Therefore, a relatively low number of “extra” sales occurring from one Saturday to the next obviously affects the clearance rate percentage to a greater degree than it would had there been 600 properties auctioned.
So does a jump in one week’s clearance indicate market recovery? No. Rather, it represents the particular composition of “good” properties available from one week to the next. Similarly, a rise or fall in the median house price in any one month when turnover is so terribly low, indicates little more than a monthly blip on the radar. As you can see from the Hampton example cited above it is possible to achieve growth in a flat market. However, it simply reiterates the rule, you have to buy well, to sell well.
Market research is important, however it never accounts for individual circumstance and neither is it sight for the blind. There are always risks associated with any investment, however property isn’t an item to be traded like stocks and shares. It’s a vital commodity essential to our very survival. Therefore, prior to any purchase put aside the market commentary and weigh up the risks carefully.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://ten.com.au/the-circle.htm" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">The Circle</a>.
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