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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If you’ve been following my blogs you’ll know that I feel confident about the long-term prospects for our property markets. These prospects will be supported by the dual pillars of strong population growth and strong economy powered by a resources boom. 
With the recent <a href="https://www.abs.gov.au/census" target="_blank">release of census data</a> everyone’s talking about what’s happening to our population. 
The fact is that despite strong population growth, we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years, we’ll need to replace close to five million baby boomers that will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report by recruitment firm Hydrogen Group, titled Global Professionals on the Move 2012.
The report says Australia’s lifestyle and standard of living made it so popular, as well as the career opportunities presented by the mining boom.
Ivan Jackson, the managing director for Hydrogen Group in Australia, was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion in total.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,”  Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
<ul>
<li>· Australia, which tied second with the UK</li>
<li>· Singapore </li>
<li>· Canada </li>
<li>· Switzerland </li>
<li>· Hong Kong and </li>
<li>France
</li>
</ul>
What’s happening to Australia’s population?
Australia’s population is estimated to be about 22,500,000. You can get an updated figure by clicking <a href="https://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">the Australian Bureau of Statistics population clock.</a> 
Even though population growth has eased since peaking back in 2008, when over 380,000 new arrivals called Australia home, Australia’s population increased by around 1.4% last year, which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration. 
Population and, more importantly, the change in population, are intrinsically linked with housing demand. To put it simply, more people means demand for more homes. And a prosperous nation means we can afford to buy or rent these homes. 
This is all great news for property investors with a long-term perspective.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Australia’s increasing population great news for property investors

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After the surge in Australian house prices from the mid-1990s into last decade my view was that while the risks of a sharp fall back in house prices were high, the most likely scenario was an extended period of range bound house prices in real terms. If anything most of the surprise has been on the upside – although not by much in real terms. But despite the fears of many, house prices have not plunged like those in the US and elsewhere, despite a bigger boom.
<img src="/images/stories/2012/06/oliver1.gif">
However, the risks are rising again. Prices have slid 6% since their 2010 high and worries that the GFC is about to finally catch up with Australian housing are on the rise again. Excessive house prices and the excessive level of household debt that has come with it are Australia’s Achilles heel.
Housing is 60% of household wealth and so movements in house prices have a big impact on household financial wellbeing and spending. Housing credit also amounts to 59% of total private credit, so what happens to house prices is critically important to Australian banks. And as we have seen in Ireland and now Spain, what happens to banks can have a big impact on public debt levels.
Still overvalued, but not by as much
The bad news is Australian housing is still way overvalued. The good news is it is less so, with real house prices going nowhere for the last four years:
<ul>
<li>According to the OECD, the ratio of house prices to incomes in Australia is 28% above its long-term average, putting it at the top end of OECD countries, although several other countries are more extreme. The US is now below its long-term average on this measure.</li>
</ul>
<img src="/images/stories/2012/06/oliver2.gif">
<ul>
<li>According to the 2012 Demographia International Housing Affordability Survey, Australian housing trades on a median multiple of house prices to annual household income, which is double that of the US. In Sydney, median house prices are $637,600, compared with $324,800 in Los Angeles. In Perth they are $450,000, compared with $159,500 in Houston, Texas.</li>
<li>However, it is apparent in the next chart that while real house prices are still above their long-term trend, the divergence has narrowed to 13% from a peak of 33%. Real house prices have now fallen back to 2008 levels.</li>
</ul>
<img src="/images/stories/2012/06/oliver3.gif">
<ul>
<li>Another way of looking at property valuations is to look at the ratio of price to rents (sometimes referred to as a PE ratio for housing) and adjust for inflation. On this basis Australian housing is still overvalued relative to its long-term average by 10%, but at least this is down from a peak overvaluation of 38% in 2003.</li>
</ul>
The bottom line is while it may not be as stretched as was the case a few years ago, Australian housing is still overvalued. This combined with still high household debt-to-income ratios leaves Australia vulnerable.
Still undersupplied, but maybe not as much
One of the big supports for the Australian housing market is thought to be a shortage of housing, with the National Housing Supply Council estimating a cumulative shortfall of more than 200,000 dwellings. However, the just released 2011 ABS census wiped almost 300,000 off previous population estimates suggesting that the undersupply may not be as chronic as thought, and along with slowing population growth, has potentially reduced a support for house prices.
Our assessment though is that while the undersupply of housing may not be as severe as thought, low vacancy rates still attest to some undersupply. And Australia has not had anything like the residential property construction boom that the US had last decade, which accentuated the downwards pressure on its house prices. In Australia, housing starts and approvals are at cycle lows.
 
<img src="/images/stories/2012/06/oliver4.gif">
 
<hr class="system-pagebreak">
 
Where to from here?
Right now the Australian residential property market is chronically weak. Finance approvals and new home sales are depressed, first-home buyer activity is subdued, prices are down, listings are up and auction clearance rates have been weak for 18 months. In fact, the failure of timely data like auction clearances to spring back into life despite mortgage rates starting to fall eight months ago is a sign of how weak things are. Since the GFC, Australians have become fearful of taking on more debt and the once strongly held belief that house prices can only go up has long been ditched.
<img src="/images/stories/2012/06/oliver5.gif">
However, while fears are growing of a deep house price slump ahead, the most likely scenario remains a lengthy period of range bound house prices around a flat trend in real terms – just as we have seen nationally over the last few years and in Sydney since 2003. Essentially poor affordability, overvaluation and high household debt levels have put a cap on house prices, whereas undersupply should limit their downside, within which, prices will cycle up and down in lagged response to falls and rises mortgage rates.
Australia did not experience the same deterioration in lending standards that occurred in other countries last decade. Home ownership rates didn’t increase. Most of the increase in mortgage debt went to older and wealthier Australians better able to service loans. And this has all been reflected in still low arrears rates of around 0.6%, and something like 50% of borrowers being ahead on payments.
Nevertheless, there are two key threats. First, a hard landing in China resulting in a collapse in export earnings could drive unemployment sharply higher threatening a sharp rise in delinquencies and forced sales. However, while this risk has increased given the threat from Europe, a sustained hard landing in China seems unlikely given China’s low tolerance for social unrest and falling Chinese inflation.
Second, property investors, who make up a third of housing debt, may lose patience with the lack of capital growth and sell, leading to sharp falls in house prices. However, while it’s hard to see investors piling into residential property now, why would those who are already in suddenly sell now? Real estate investors are usually in there for the long term, made necessary by large transaction costs.
A third threat was coming from interest rates, but with rates falling since last November, this has turned into a positive for the housing market. Affordability is still poor, but at least it’s improving, and our assessment is that a further improvement in affordability lies ahead as interest rates are likely to fall another 0.75% by year end.
Bottom line – in the very short term house prices could fall a bit further as economic uncertainty continues to impact, but providing Europe doesn’t plunge China and the world into a renewed recession, falling mortgage rates are likely to drive a cyclical recovery in the housing market from later this year/early next. However, the most likely profile over the next five to 10 years is for house prices to be stuck in a 10% or so range around a broadly flat trend in real house prices.
This is consistent with the 10- to 20-year pattern of alternating long-term bull and bear phases seen in real Australian house prices since the 1920s. The long-term bull phase of Australian house prices that started in the mid-1990s is now giving way to a long-term bear phase.
Housing as an investment
After allowing for costs, residential property has historically provided a similar return over the long term to shares. This can be seen in the next chart, which shows an estimate of the long-term return from housing, shares, bonds and cash.
<img src="/images/stories/2012/06/oliver6.gif">
Since the 1920s, housing has returned 11.1% pa after allowing for capital growth and rents and shares have returned 11.4% pa after allowing for capital growth and dividends. While housing is less volatile than shares and for many seems safer, it offers a lower level of liquidity and diversification. Once the similar returns of housing and shares are allowed for there is a case for both in investors’ portfolios over the long term. Right now though, housing looks somewhat less attractive continuing to offer much lower yields. The gross rental yield on housing is around 3.7%, compared to yields of 7% on unlisted commercial property, 6% for listed property (or A-REITs) and 6.5% for Australian shares (with franking credits). So for an investor, these other assets represent much better value.
Dr Shane Oliver is head of investment strategy and chief economist at <a target="_blank" href="https://www.ampcapital.com.au/">AMP Capital</a>
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soliver-smf6LQXgW9

Australia's chronically weak house prices: Is the crash upon us or a long-term flat trend?: Shane Oliver

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In encouraging news for prospective property owners, Aussie housing continues to get cheaper when deflated using disposable incomes. According to Rismark, Australia’s all regions, average dwelling price-to-average disposable household income ratio has fallen to around four times, which is its lowest level since March 2003 (abstracting away from a temporary dip during the GFC).
This analysis is based on both “average” and “median” dwelling prices calculated using all home sales recorded across the country during the March quarter. The quarterly income estimates are extracted from the ABS’s National Accounts data, which publishes a regular “disposable household income” aggregate. To translate this figure into a “per household” unit, Rismark divides through by the number of households each quarter. It is important to remember here that this income estimate reflects that there are multiple income earners per household, and is an “average”, not a “median”, and likely to be biased upwards somewhat due to right-skew in the distribution of incomes.
Click to enlarge
<a href="/images/stories/2012/06/june281.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june281thumb.gif"></a>
The second chart below seeks to remove one of the main “non-cash” items that is captured in the ABS’s disposable household income series: “imputed” owner-occupied rents, or the rents you effectively save by buying a home rather than renting it. As you can see, this boosts the dwelling price-to-income ratio to about four and a half times.
Click to enlarge
<a href="/images/stories/2012/06/june282.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june282thumb.gif"></a>
The exact levels of the price-to-income ratio are relatively trivial: it is the change in the ratio over time that affords much more useful insights.
From the analysis above we can infer several things. First, disposable household incomes in Australia have grown as quickly, if not more quickly, than nominal Australian house prices over the last nine years. Indeed, when we measure changes in house prices more precisely using a “hedonic regression” technique, we arrive at even lower house price inflation numbers. In particular, we find that disposable incomes have actually out-paced house prices by about 15% over this period.
A second learning is that the price-to-income ratio seems to have risen by about one-third from circa three times to four times since 1993. In fact, there was a very distinct regime change in the late 1990s and early 2000s.
There is a sound explanation for this innovation: the long-term cost of mortgage debt in Australia declined by north of 40% between 1980 and 1995, and 1995 and today. This was largely a function of the long-term reduction in realised inflation and measured inflation expectations, which in turn allowed Australia’s central bank, the RBA, to permanently lower its cash rate.
The radical reduction in the day-to-day cost of mortgage debt permitted Australian households to significantly increase the amount of debt they were servicing without a noticeable rise in underlying mortgage default rates. Notwithstanding a peak in headline mortgage rates of around 9.5% in August 2008, system-wide arrears have remained no higher than their last spike in 1994-95.
Here we are able to document another development. The striking rise in Australia’s household debt-to-income ratio from the mid-to-late 1990s onwards ceased altogether in about 2006, a year or two prior to the onset of the GFC. That is, credit growth started tracking income growth, which is what you would expect through the cycle. Households evidently discovered that they had maxed out their debt servicing capability, and rationally stopped leveraging up.
Rismark’s price-to-income ratio analysis does not, of course, account for changes in interest rates. Today mortgage rates are well below their long-term averages. You can get discounted variable rates as low as 5.6% per annum, and three-year fixed-rates at about 5.8% per annum.
Factoring in the change in both incomes and interest rates is important. As one exercise, Rismark took the median Australian dwelling price in 1985 and indexed it up by changes in per household disposable incomes and adjustments in borrowing capacity afforded by changes in mortgage rates (i.e., holding the repayment-to-income ratio constant).
Rismark found that they could explain 93% of the actual increase in median Australian house prices over the 1985 to 2011 period simply referencing these two variables.
Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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chrisjoye-JYhJsTrNRC

Australian housing at its most affordable level for nine years: Christopher Joye

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A free-standing Ritchies IGA in Mount Waverley has sold to an Asian Melbourne-based buyer for nearly $700,000 above the reserve after attracting more than 23 enquiries from offshore Asian buyers prior to its June 27 auction.
Many of the bids included the number 88 – the Asian symbol of good fortune and good luck.
In a room packed with 200 people the 2,500-square-metre supermarket was the subject of a bidding war between four potential buyers in the room - three of whom were Asian - and a Hong Kong investor on the phone.
"Two bidders locked horns over the property" says Graeme Watson, joint selling agent alongside Raoul Holderhead from Burgess Rawson.
The supermarket had a $6.5 million reserve and eventually sold for $7.19 million.
The sale price reflected a yield of 6.51% based on rent of around $477,000 per annum plus GST, with the property leased to long-term tenant Ritchies IGA on a 15-year lease with renewal options to 2034.
It had previously been marketed in Asian publications given its location on the corner of Stephensons Road in Mount Waverley, a suburb where houses are regularly snapped up by Asian buyers looking to live in its sought-after school zone.
Recently Jeremy Desmier, Fletchers real estate director, said suburbs like Balwyn and Glen Waverley were popular among buyers with temporary residency because of their highly rated government schools.
Holderhead tells Property Observer the high yield reflected the fact the shopping centre is a “very rare” asset in the “dead centre of Melbourne” in a fairly affluent suburb with no available land pockets.
“The only competition is a Woolies round the corner,” he says.
Another appealing factor, he says, is the fact that it was only built in 1999 and thus is relatively new.
He says the buyer is willing to pay well above the reserve price despite “turnover being knocked around a bit from the recent supermarket price wars”.
He estimates that a Coles or Woolies in the same location could fetch $10 million or $11 million, with yields of around the 4% mark.
Graeme Watson describes Mount Waverley as a “very established, affluent area with a substantial Asian population".
"The IGA is located in a very comprehensive strip style centre” with none of the 100 shops on the strip vacant.
“All the major banks are on the strip plus there are four pharmacies and four bakeries,” Watson says.
He says the IGA's free-standing nature also made it an attractive asset for investors.
The sale of the IGA suggests Glen Waverley and surrounding south-eastern Melbourne suburbs are becoming something of a commercial as well as residential hotspot.
In March The Palms restaurant at 213-215 Blackburn Road in Mount Waverley, standing on a 1,015-square-metre block, sold for $2.03 million to a private investor on a yield of nearly 7%.
It sold with a 10-year lease to the restaurant, having attracted interest is in the vicinity of $1.9 million to $2 million.
Selling agents were Colliers International's Hamish Burgess and Ben Baines, who said three strong bidders pushed the price well above the reserve.
Burgess said at the time there was a strong demand for development sites in the Melbourne eastern metropolitan market, with developers now favouring medium-density sites in the eastern suburbs.
As an example of the demand for residential property in nearby Glen Waverley he pointed to the recent off-the-plan success of Consolidated Properties $70 million 11 storey Ikon apartment project.
All 116 one- and two-bedroom apartments in the mixed-use development were snapped when it launched last year. The project also includes an office and retail precinct. Construction began in April.
Recent Melbourne suburban shopping centre sales have included a Mentone supermarket anchored by Woolworths, which sold on a yield of close to 8%, and a Coles-anchored Bundoora Square in the north east, which sold on a yield of 7.4%.
Mount Waverley ranked as the 121st most liveable suburb in Melbourne in the 2012 Age liveability survey, with the report noting that neighbouring Clayton ranked 272 with the only sizeable difference between the two is Mount Waverley's good rating on crime.
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Mount Waverley IGA with lucky 88-dollar bids sells for $600,000 above the reserve

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Mining tycoon and eccentric billionaire Clive Palmer has spent $10 million on the former Club Med resort at?Bora Bora in Tahiti, French Polynesia.
The 30-hectare resort has 150 rooms, a 200-seat theatre and a private bay. It comes with four villas and 46 staff units. It was marketed by CBRE Hotels.
Palmer told Fairfax he had no plans to refurbish the resort yet, but that the resort does hold development potential.
He says he bought the property for “relaxation, serenity and because no?one else was going to buy it”.
“I will bring my family here – it’s one of the most beautiful places on Earth.”
He says he will be staying at his resort next month when attends the Asia-Pacific Forum, set up to discuss the promotion of socio-economic development and growth in the Pacific islands.
The purchase is the latest in a series of tourism related acquisitions and plans by Palmer.
Last year he bought the Hyatt Regency at Coolum in the Sunshine Coast.  He has also bought the <a target="_blank" href="https://www.propertyobserver.com.au/leisure/clive-palmer-buys-distressed-golf-courses-at-discount/2011092051616">Robina Woods and The Colonial golf courses at Robina</a> for $7 million and this year his Gold Coast purchases has totalled $6 million.
He told Fairfax the Bora Bora purchase is unlikely to be the last. “I’ll take a look at anything.”
The club was shut down by owners Club Méditerranée SA in 2009.
The resort is set in Faaopore Bay on the south coast of Bora Bora, 250 kilometres from Tahiti. Parisian interior designer, Christian Liaigre worked on the internal furnishings, borrowing themes from the island tattoos.
Celebreties who stayed there include Ringo Starr, Harrison Ford, Meg Ryan, Patrick Swayze, Senator John McCain, Janet Jackson, Pierce Brosnan, Drew Barrymore and Cameron Diaz.
Prices ranged from $200 to $375 per night to stay at the all-inclusive resort.
The rooms are a mix of stand-alone and duplex bungalows and two-storey, motel-style buildings, though the beachfront bungalows were the preferred choice for holiday makers.
CBRE’s marketing in 2009 said the property is a “world-class resort destination offering scenic beauty, political stability and high-quality resort product”.
The deal comes after Palmer’s failed attempt to buy <a target="_blank" href="https://www.propertyobserver.com.au/leisure/chinese-mining-tycoon-beats-clive-palmer-to-acquire-lindeman-island-with-plans-to-redevelop/2012042554429">the Club Med in Lindeman Island in the Whitsundays,</a> when he was outbid by a Chinese mining tycoon.
Photograph by Thomas Wasserberg, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Clive Palmer buys former Club Med resort in Bora Bora for $10 million

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There are a number of long-held and misinformed ideas surrounding sales of property by mortgagees (lenders). Often parties are interested in pursuing a mortgagee sale in the hope of securing a “bargain”. Each time buyers attend open for inspections for a mortgagee repossessed property’s auction, the same main questions typically arise: 
<ol>
<li>Will it definitely sell at auction?</li>
<li>What’s the debt against the property?</li>
<li>Will the mortgagee accept an offer prior to auction? </li>
</ol>
To respond in order, the mortgagee (usually a bank or similar lender) is generally not in the business of holding real property – they are in the money business. They wish to realise the asset and recoup their outstanding funds. Having said that, the mortgagee has an obligation to act in good faith and have regards to the interests of the mortgagor (defaulting borrower). In the event that a property was “dumped” by a mortgagee at a price found to be significantly below a fair market value, there will be solid grounds for a claim for compensation by the borrower. There is no specific obligation upon the mortgagee governing the manner and form in which the subject property should be sold – however, every step that is taken towards a comprehensive, suitably structured marketing campaign results in a reduced likelihood of a successful mortgagor challenge in the future. As a rule of thumb, mortgagees commission an independent certified valuation of the property, and this becomes a very good guide in terms of a reserve. So, “Will it definitely sell at auction?” The answer is no.
Buyers will often query the level of debt encumbering the property. While this may impact the mortgagee’s bottom line for the year, it has no effect upon the actual market value of the property. A $1 million property repossessed over a $100,000 debt is not suddenly worth $100,000, and any mortgagee accepting a price like that should line up its lawyers in readiness for a courtroom fight. Similarly there are often cases, regularly involving fraud of some kind or ill-advised financial planning, where the debt is significantly higher than the market value of the property. As much as the mortgagee would very much like to see the value cover its debt, the property is valued on its own merits. If a mortgagee accepts a price less than the debt, it is required to see transfer of the property at settlement with clear title. 
Pre-auction offers are a common issue. We return to mitigating legal exposure for the mortgagee. The courts consistently view a public auction as a fair test of the market – a sale prior to auction begs the question as to why an offer was accepted. The property is always for sale and offers welcome, however we regularly suggest that “unless your offer is to be so compelling that the mortgagee may be found culpable for not accepting it, we’ll proceed to auction”. It’s a rare day that someone wants to be “that buyer”. The courts have found that no advertising or auction is necessary at all should the price achieved be sufficiently “compelling” and responsible compared to an independent valuation. The practical application however is that public auction is most largely considered the optimal and fair way to assess buyer interest and thereupon it is best to leave the campaign to run all the way to the gavel. 
Recently Kousal v Suncorp-Metway [2011] and the very widely publicised auction sale preceding this matter involved a sheriff auctioning a mortgagee property <a href="https://www.propertyobserver.com.au/auctions/melbourne-vendor-goes-to-court-over-%241000-no-reserve-sheriff-s-auction-of-his-braybrook-home/2012020953319" target="_blank">and selling it for $1,000</a>. It was shown that the property was valued around $600,000. Of understandable concern to the defaulting borrower was his belief that the property was insufficiently marketed, auctioned in a sheriff’s office and done so “without reserve”.  On these assertions, the sheriff pretty well followed the text book of what not to do when acting for a mortgagee who is seeking to realise a debt and do so in a court-approved manner. 
Having established some principles that may restrict the opportunity to secure a definite bargain, buyers may well be left wondering just what is the attraction in pursuing a mortgagee sale. Buyers can rest assured that the mortgagee is motivated to achieve a sale. Emotion does not enter the discussion. The mortgagee does not view the property as a much-loved home and has no “rose-coloured” glasses concerning its value. An independent valuation is regularly the benchmark for the lowest level a mortgagee might accept at auction – and in a market like we are currently experiencing, valuers are hardly bullish. 
Further, a mortgagee will generally refrain from marketing embellishments or “agent speak” in the marketing of property. The contract will be very clear and undertakings conservative. Mortgagees generally select agents who have a comprehensive understanding of the law pertaining to mortgagee transactions and ensuring that all boxes are appropriately ticked. What you see is what you get. 
Here’s the bottom line to mortgagee sales – the mortgagee wants to secure a fair market price for the asset and cover its debt. Mortgagees wish to do so without being exposed to potential legal dramas from the defaulting borrower. If you are interested in pursuing a home and like the idea of dealing with an non-emotive, straight-forward vendor who has ideally engaged an informed and professional agent, who is genuine about securing a sale and whose pricing is guided by an independent valuation, then mortgagee sales are for you.
Brad Caldwell-Eyles is principal of <a href="https://www.1stcity.com.au/" target="_blank">1st City Hasemer and Caldwell-Eyles.</a>
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Clearing up misconceptions about mortgagee sales

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<a href="https://www.propertyobserver.com.au/residential/how-to-avoid-the-winter-home-hunting-blues-part-one-%E2%80%93-stay-patient-mal-james/2012062655275" target="_blank">Yesterday I talked about the importance of staying patient in the cooler winter market. </a>The consequences of a bad decision are much worse now, and time is needed to make the best possible decision.
In the late 1990s and early 2000s the consequences of decisions were not quite so obvious due to runaway capital growth pretty much right across the board. Even a bad decision was a good decision because almost anyone who bought was better off than those who didn’t.
Over the past seven years or so (traditionally one property cycle), since around 2006-07 the game has changed. When it comes to home buying, there is now a significant gap between those who have made good decisions and those who have not.
Good decisions: We can give you specific examples of clients who have bought since 2007 and who since that time have seen 50% increases in buying and selling. One home that was bought for $1 million in 2007, for instance, sold for $1.5 million in 2012. Not that we have encouraged such quick turnaround – but sometimes circumstances change.
Poor decisions: We can also point to sales that have resulted in up to 20% losses since 2007. We have seen some substantial losses in the Golden Mile Brighton, as well as a period home in Elsternwick with a big auction and even homes in Boroondara. If you bought a $2 million home in 2007 and sold it for $1.7 million five years later, that is a substantial loss.
Highlighting the good decision vs. bad decision numbers.
Back in 2007, the $1 million buyer and the $2 million buyer were $1 million apart. Now in 2012 they are only $200,000 apart. Meanwhile, the buyer who made the good decision has had to pay only half the mortgage repayments of the poor decision buyer. Sure, this is an extreme case, but it has happened.
The winter of 2012 is a time to keep making good home buying decisions.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website. 
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How to avoid the winter home hunting blues: Step two – make good decisions

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Brisbane new high-rise apartment sales fell 31% in the May quarter, with 128 sales recorded compared with 186 in the February quarter, according to the latest Midwood Report.
The total number of apartments for sale also fell to 1,227, the lowest level since November 2010.
The report notes that the current sales rate is in line with average sales rate over the past 12 months.
Three projects dominated sales – Metro Property’s Madison Heights project in Bowen Hills; the big Hamilton Harbour project being co-developed by Devine and Leightons and FKP’s The Milton in the inner west.
Here’s a breakdown of the top six high-rise sellers in Brisbane during the months of March, April and May:
<img src="/images/stories/2012/06/55.gif">
The number of apartments sold in Metro’s Madison Heights development in Bowen Hills. There are 308 units in the project, with 255 sold to date. The median price paid per square metre was $6,616.
 
<hr>
<img src="/images/stories/2012/06/30.gif">
The number of apartments sold in Devine and Leighton’s Hamilton Harbour – Riverside Hamilton development. There are 189 units in the project, with 127 sold to date. The median price paid per square metre was $6,831.
 
<hr>
<img src="/images/stories/2012/06/23.gif">
The number of apartments sold in the Metro Pearls Brooklyn on Brookes project in Fortitude Valley. There are 216 units in the project, with 88 sold to date. The median price paid per square metre was $7,761.
 
<hr>
<img src="/images/stories/2012/06/17.gif">
The number of apartments sold in the FKP’s The Milton project in Milton. There are 298 units in the project, with 145 sold to date. The median price paid per square metre was $7,244.
 
<hr>
 
<img src="/images/stories/2012/06/6.gif">
The number of apartments sold in the Laing O’Rourke/Trident Corp McLachlan &amp; Ann (M&amp;A) project in Fortitude Valley. There are 234 units in the project, with 172 sold to date. The median price paid per square metre was $7,692.
 
<hr>
<img src="/images/stories/2012/06/5.gif">
The number of apartments sold in the Metro Property Development The Chelsea project in Bowen Hills. There are 195 units in the project, with all sold. The median price paid per square metre was $7,087. The project settled in February.
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Brisbane high-rise apartment sales down 31% in May quarter: Midwood

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The Hong Kong-based Shangri-La Hotels and Resorts group has made its second foray into the Australian hotel market in the space of a week, picking up the Holiday Inn Brisbane for around $48 million.
It follows its purchase of <a href="https://www.propertyobserver.com.au/leisure/sydney-shangri-la-hotel-sells-to-hong-kong-shangri-la-asia-group-for-record-%24352-million/2012062555249">Sydney’s Shangri-La Hotel in The Rocks for the $352 million</a> announced earlier this week.
Shangri-La Hotels has also assumed management of the Brisbane Holiday Inn and will operate it as a Traders Hotel.
The hotel is located at 159 Roma Street, within walking distance from the CBD and Suncorp stadium.
The purchase of the Holiday Inn was facilitated by Jones Lang LaSalle Hotels’ Craig Collins, Dean Humphries and Peter Harper, who also advised on The Rocks purchase.
Collins says the Brisbane hotel market has witnessed the most transactional activity in Australia over the past six months, with this being the fourth transaction Jones Lang LaSalle has undertaken in the city over this period.
“Prior to this sale there had been very little activity as Brisbane has historically been one of Australia’s most tightly held investment markets,” he says.
According to Collins, Brisbane has been one of the standout hotel trading markets this year to date, with revenue per available room (RevPAR) growing by 5.9% to surpass the 2008 peak and reach $151.
Total hotel transaction volume in Australia has reached almost $1 billion for the year to date, with Asian investment accounting for over 90% of transaction volume.
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Hong Kong’s Shangri-La group picks up second Australian hotel in a week with $48 million Brisbane Holiday Inn purchase

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Karratha in Western Australia’s Pilbara is getting a Hilton Hotel.
The $65 million hotel will be Australia's first under the DoubleTree branding, known for its warm welcome chocolate chip cookie, over its 40-year rollout of 300 hotels across 24 countries.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2012/06/cookies.jpg">
Hilton Worldwide and Ramtron Australia have signed an agreement, and the hotel is due to open in mid-2014.
Ramtron Australia Pty Ltd is a consortium led by local Western Australian developer Rothchester Hotel and Resorts Pty Ltd. The consortium also includes Karratha identity Kim Loxton, Tang Weng Fei of Singapore-based Ramtron Oil International Ltd, and Perth-based company AYR International Pty Ltd.
The eight-storey project features 144 guest rooms, 20 executive apartments, restaurant and bar, fitness centre and outdoor pool.
Brendon Grylls, WA Minister for Regional Development and Lands, says the growth of the resource sector needs to be accompanied by the growth of infrastructure and amenities.
The hotel will be located in the centre of the Karratha commercial area, 15 kilometres from Karratha airport and 20 kilometres from the port at Dampier.
“The DoubleTree by Hilton, Karratha will be our 16th property in Australasia and the first DoubleTree by Hilton in the region, joining the Parmelia Hilton Perth as the second Hilton Worldwide property in Western Australia," says Robert Scullin, vice president of development in Australasia for Hilton Worldwide.
Mirvac was named the preferred developer of a suburb of Karratha, the biggest town in the iron-ore rich Pilbara region, last November in a joint venture with the local land authority. The $1.5 billion project, which will create a new suburb, Mulataga, to accommodate 8,000 people.
To capitalise on the mining boom on the other side of the country, download our<a href="https://www.propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom" target="_blank"> free eBook on investing in Queensland's resources boom.</a>
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