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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There were 845 sales in Perth this week, and 38 of them were in the northern Perth suburb of Highgate, according to the Real Estate Institute of Western Australia. There were 779 sales the same week last year and just 526 the same week last year. 
<img src="/images/stories/2012/06/reiwajune8.jpg">
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Perth records 845 sales this week, with Highgate most actively traded suburb: REIWA

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ING Direct will pass on 20 out of  25 basis points to variable mortgage holders following the RBA's 25 basis point cash rate cut on Tuesday.
The bank will reduce the interest rate on its variable mortgages by 0.20%, effective Friday 15 June with the rate on its most popular variable rate product,Mortgage Simplifier, reducing to 6.22% per annum.
ING Direct, part of Dutch banking giant ING, passed on 30 out of 50 basis points following the May RBA double cash rate cut.
It passed on both November and December quarter percentage point cash rate cuts in full to borrowers.
The ING Direct announcement follows Bank of Queensland passing on 20 basis points on Tuesday and QT Mutual Bank passing on all 25 basis points yesterday.
None of the major banks have made any announcements yet on rates.
ING Direct is the sixth largest home lender in the country with $38 billion in mortgages – ranking behind the Big Four banks and fifth biggest lender, BankWest, owned by the Commonwealth Bank.
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ING Direct to cut variable mortgage rates by 20 basis points

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So it’s now official. All the analysts, commentators, and policymakers who told you that Australian economic growth was decelerating, “sub-trend” (a popular phrase), “modest”, “below capacity”, or about to head into recession were woefully misguided. Anyone who predicted interest rate cuts over 2011 and 2012 on the basis of a weak domestic economy was right, but for the wrong reasons.
Indeed, if the “sub-trenders” had any intellectual honesty, they would be calling for a spate of rate hikes right now. If the (falsely, and now revised) low real GDP print in the final quarter of 2011 was grounds for hysterical calls for cuts, the last four quarters of growth data combined with the many months of jobless rate data are surely an even more persuasive basis for hikes? One of the smartest strategists in Australia did write to me today, unsolicited, and state, “I was wrong – economy doing OK…[and] yes, you were correct.”
Australia’s economic growth rate over the last four quarters has been a stunningly strong 4.3%, well in excess of estimates of the trend rate of growth of around 3% per annum. Australia’s jobless rate was just 5.1% in May, slightly up from a revised 5% in April, but down on a three-month moving average basis from 5.2% in March. Since 1990, the jobless rate has averaged 6.9%.
At the same time, we know that business investment continues to boom (and businesses plan to invest at record rates for years to come), household consumption, which is the biggest driver of economic growth, is expanding at a rate way above historical trend, housing credit growth is tracking incomes very closely, which is what we would expect, and the total wages bill rose at an above-trend pace in the first quarter.
Based on the information we have available to us today, the RBA’s pre-November monetary policy settings—remember they take 12 to 18 months to have their full effect—were pitch perfect, as I  argued in the past. It was those settings, and not subsequent cuts, that gave us a more acceptably low inflation rate.
Those calling for savage rate cuts in the second half of last year badly misread the economy. The bottom line is, as both Professor Warwick McKibbin and I have previously argued, if you assume the appreciation of the Australian dollar was a once-off event, there was no domestic economy basis for rate cuts as the inflation benefits (in late 2011 and early 2012) would be temporary.
The RBA board and its staff have a lot of explaining to do for their post-November decision-making. Governor Glenn Stevens has repeatedly told the community that the RBA does not believe it can forecast with accuracy over the long term. He repeatedly pushed the notion that it needed to focus on “nowcasting” in justifying its rate cuts in late 2011. When the RBA got a downward revision to the second quarter inflation data in June 2011 from 0.8% to 0.6%, it used this data point to materially change the stance of monetary policy from restrictive to neutral. But it turned out that this core inflation estimate was wrong: it subsequently got revised back up to an unacceptably high 0.8%.
As any inflation forecaster knows, you do not get a consistently low inflation rate with real GDP growth of 4.3% per annum, an unemployment rate of 5.1% and a currency that is stable or declining.
In the latest inflation numbers, domestic (or so-called “non-tradeable”) inflation printed at around 3.5%, well above the RBA’s 2-3% per annum target. Australia’s low inflation pulse in late 2011 and early 2012 was being driven mainly by internationally priced goods and services (or so-called tradeables), which were actually falling in value as a result of the temporary currency appreciation.
So something important in the RBA’s decision-making changed late last year. It stopped nowcasting and started forecasting. It increasingly ignored the very low unemployment data despite the fact that the unemployment rate is the single most important variable in its inflation forecasting models.
It has ignored a great deal of “partial” data – business investment, household consumption spending, wages, domestic demand, and even the narrowly measured monthly retail data – and calibrated policy on the basis of utterly subjective and, it appears, quite incorrect forecasts.
 
 
<hr class="system-pagebreak">
 
In a tiny cohort of analysts – including Adam Carr – I have consistently argued that the December, May and June rate cuts were unnecessary (and received immense push-back for doing so). I’ve maintained that the RBA was bowing to pressure from a community that has not seen a recession since 1991, a public that has become incredibly complacent, with many generations having been exposed to declining interest rates and a falling unemployment rate for most of their lives. The RBA has been relentlessly bullied by both sides of politics and their proxies (e.g., leading union officials and aligned commentators), and, we know, the six private sector doves that dominate the RBA’s board (to say nothing of the Treasury Secretary).
It is clear that the RBA has rejected its own decision-making logic by setting policy not on hard and dependable economic data, but rather on the basis of speculation and, most worryingly, financial market expectations.
The RBA’s inflation forecasts are now all wrong. The pulse of economic growth is much higher than it has assumed. The unemployment rate is well below the 5.5% it expected. Even after today’s terrific jobs report, the Aussie dollar is still materially lower than the 103 US cents it presumed (as are oil prices).
I coined a term late last year: the “Glenn Stevens put”, which insinuated that the RBA was doling out insurance to vested interests and the financial markets when it had no business doing so.
It has punished hard-working Australian savers in preference for less prudent borrowers. On the basis of today’s data, interest rates in Australia are probably a good half to three quarters of a percentage point lower than they need to be.
There are certainly no signs of a household deleveraging induced recession in the manner predicted by the likes of Steve Keen. Sure, house prices have endured a modest correction. Yet this has been largely driven by the luxury sector.
Since January 2011, 80% of all Australian suburbs have experienced total house price declines of less than 3%. Yet the most expensive 20% of suburbs have suffered house price falls of around 7%.
One of my regular memes has been that we have had a valuation re-rating in the million dollar-plus market due to the (permanent) contraction in financial services earnings growth. That’s not a bad thing.
The droves of analysts that called for much lower rates on the basis of sub-trend economic growth should front up and admit they were wrong. An inquiry is needed into the RBA board’s decision-making processes, which appear predisposed to persistent error.  Australia’s average core inflation rate since 2001 has been amongst the highest of our developed country peers. At a minimum, we need to get rid of the RBA board’s highly conflicted private business sector executives and replace them with professionals who understand how the aggregate economy works.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm" target="_blank">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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chrisjoye-JYhJsTrNRC

The RBA has gotten it entirely wrong – the economy growth rate is stunningly strong: Christopher Joye

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All the core problems afflicting the real estate industry can be encapsulated in one word: government. 
All three levels of government are key forces impacting property – and none of them are forces for good. State governments, which are responsible for real estate laws, have the greatest impact and do the greatest damage. 
The first of many problems is that the only interest politicians have in the real estate industry is its role as a cash cow. The concern of most politicians for property starts and ends there. 
Stamp duty, land tax, capital gains tax, rates, infrastructure charges and the GST – property is a core source of funding for all levels of government. 
These taxes hurt property consumers because they add layers of costs. They are a massive burden impinging on the critical matter of affordability. Many politicians say they care about housing affordability, but the lack of action suggests otherwise. 
Grants to first-home buyers have never been an effective remedy. They create short-term distortions in the market and do little to address the core issues. 
We have the bizarre anomaly where a state government will provide a grant to a buyer of a first home and then charge her more in stamp duty when she buys that first home. Only a bureaucratic mind could make sense of that. 
Beyond short-term tinkering with grants, the response by federal and state governments to the issue of affordability has been deafening silence. 
State governments also harm real estate through the lack of a timely and effective response to problems that arise, particularly those that relate to consumer protection. 
Most state and territory governments have changed real estate laws during the past decade or so. These laws have seldom been effective in protecting buyers and sellers, for two reasons. 
Reason one: before legislating the politicians have consulted “the real estate industry” for advice on what to do. This is a farcical approach because the real estate industry – primarily developers and real estate agents – is the problem. It’s like consulting the mafia for advice on how the stop the drug trade. 
Reason two: having enacted laws to deal with matters such as under-quoting in ads, dummy bidding at auction and sundry other rorts, politicians render them irrelevant by failing to enforce them. Each jurisdiction has an office of fair trading or consumer affairs department, and their track record in enforcing consumer protection laws is pitiful. 
The biggest rip-off in real estate is the growing practice whereby developers offer kickbacks to professionals who bring them buyers for off-the-plan apartments. Accountants, financial planners, real estate agents, marketers masquerading as buyers agents and other “advisers” can earn up to $35,000 for each buyer they recommend. 
When we asked Queensland’s Fair Trading Minister, a fresh-faced kid named Jarrod Bleijie, what he was doing about it, his response was: “This is not an issue that has been raised with us by the real estate industry.” 
Translation: he knows nothing about it and doesn’t intend to find out. 
And of course the industry hasn’t raised this issue with the minister. Key elements of the industry are benefiting from this rip-off. 
The other way state governments are harming real estate is with their economic policies. State and territory governments seem to believe we’re in a recession and that austerity is the answer, with public service numbers cut, programs slashed and jobs-creating projects scrapped. 
Victoria, NSW and Queensland have recently elected Liberal-National governments. Each new regime seems to believe it has a solemn duty to tear down everything started by their predecessors – and to hell with the consequences. 
Residents of regional areas of Victoria, who probably expect a few favours from a conservative government, must be wondering what hit them. Government offices are being closed, which is costing local jobs. Programs and project funding has been slashed or refused, with particular impact on universities and TAFE campuses, again costing jobs. 
Tasmania, which is the nation’s struggle state, desperately needs strong leadership and economic stimulus from its government. Instead it’s getting austerity. New infrastructure spending is almost non-existent and there is no growth anywhere. 
I make my living identifying the future hotspots around Australia. I can’t identify a single location in Tasmania worthy of recommendation – and the state government is a major part of the problem. 
I’m beginning to think we’d all be better off if we scrapped this layer of government. New Zealand doesn’t have stamp duty or land tax because it doesn’t have this middle tier of government. Do we really need it?
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
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Government is the core problem afflicting the property market: Terry Ryder

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Housing is at its most affordable level since December 2009, but rental payments as a proportion of family are still hovering around four year-highs, according to the latest REIA/Deposit Power report.
The latest report shows that rental affordability has hardly improved since March 2008 – around the outbreak of the GFC – when rents as a proportion of family income increased to 24.7%.
Rents as proportion of family income remain well above the national long-term average since the December 1995 of 22.7% – despite median family income rising over the March quarter by 1.3% to $1,552.
The March quarter report shows the proportion of weekly family income required to meet weekly rent for a three-bedroom house stands at 24.9%, compared with 24.8% in the December quarter and 25.1% in March 2011.
<img src="/images/stories/2012/06/reiajune7.gif">
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
<img src="/images/stories/2012/06/reiajune72.gif">
The March quarter REIA/Deposit Power report shows that nationally, the proportion of family income required to meet loan repayments decreased by 0.9 percentage points compared with the previous quarter and now sits at 32%.
This pushed up the REIA Home Loan Affordability Indicator (HLAI) – the ratio of median family income to average loan repayments – to 31.3, its highest point since December 2009, but still well below the long-term average of 38.6.
“Housing affordability is still not at ideal levels, but at least we are now heading in the right direction,” says REIA president Pamela Bennett.
“If other factors continue to trend in the same direction, the interest rate cuts in May, and those announced yesterday should bring further good news for housing affordability next quarter,” she says.
First-home buyer participation in the housing market decreased in the March quarter.
The number of new finance commitments to first home buyers decreased 18.8% to 23,637 compared to 20.2% of buyers in March 2011 while the number of first home buyers, as a percentage of total owner occupied housing commitments, decreased to 18.0% during the quarter, compared to 20.0% in the December quarter 2011.
This proportion is dramatically down from the 30.6% level of the June 2009 quarter.
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Housing affordability improving but rental costs still at four-year high: REIA

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Today I drew inspiration from a lovely young man I had coffee with. His name is Matt, and he’s one of our clients.  Matt’s a switched-on guy, maybe about 30 or so, has a psych degree, owns three investment properties, all high yielding (I’m talking 9 to 15%!), runs his own importing business, has been to a property seminar or two, and he and his wife are expecting their second child in a couple of weeks. Oh, and he’s also very polite.
We’ve just finished a development project for Matt and now we had the actual end figures confirmed, we caught up to reflect on how his first project went with Property Bloom and what he could be doing to plan for his next.
That’s what I like about Matt. He’s a planner, a big-picture guy, yet he still keeps track of all the fine details. Here he is, two weeks out from having his second child and we’re sitting discussing property development options (we did also touch on the benefits of epidurals!).
We chatted about current economics, the estate of affairs here in Australia with our political uncertainty, the constant barrage of whether Julia Gillard is a worthy prime minister, the lousy situation in Europe – is Spain going down and when?  How will Greece pull through? The Queen’s Diamond Jubilee and how cool Kylie Minogue’s outfit was (OK, that was my comment; I don’t think Matt had an opinion on that one).
We covered off the “two-speed economy” of Australia, the state of China and how much coal do they actually need (a lot, thought Matt, as he visits China regularly for business and has seen for himself the massive changes taking place).
We both agreed that the current state of affairs was actually the perfect property investment environment for those who could block out the noise and focus on what was happening right under our noses.
We’d concluded that we didn’t actually care about what’s happening in the global arena (apart from seeing our superannuation cut in half over the past year).  While we weren’t being irresponsible, we just both decided that it didn’t really impact on our big picture.
This comment from Matt said it all:
”Jo, I’m not going to wait around for the world to determine my future.”
There it was. His words really resonated with me.  His statement so bold but yet so matter of fact, making perfect sense.
There’ll always be something to wait for. Let’s wait til after the new baby comes. Let’s wait for the next election. Let’s wait to see what happens in Europe. Let’s wait to see what the share market does. Let’s wait to see if the RBA cuts rates… Let’s wait, let’s wait, let’s wait!
Before you know it, you’ll be 65 asking “Why did we wait?... If only we invested in property back in 2012 when rates were low, yields were high and it was a buyer’s market.  What were we waiting for?”
For my client Matt, I’ve got a great next development project coming his way because he’s not going to hang around waiting.  So by the time his new baby turns one, he’ll have another great project under his belt.
So what are you waiting for?
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
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Now is the perfect time to invest in property if you can block out the noise

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Well, here is some more good economic news.  Henny Penny doesn’t know which way to run!
Australia’s economy grew much faster than forecast, up 1.3% during the March quarter.  On an annual basis, our economy is growing by 4.3%, again much faster than 3.3% market forecasts.
Remember, this is historical data but it does cover a period of weakening commodity prices, falls in mining profits and weak demand in some sectors of the domestic economy.  It also covers the natural disasters – and yes, they did have an impact – but our little Aussie engine was running much better than it sounded.  This helps explain the recent fall in our jobless rate to 4.9%.
It is also more than mining that has helped our economy grow.  What the eggheads call “non-farm GDP” grew by 1.2%, which points to more a buoyant domestic economy than most realise.  Household savings also remain high at 9.3%.
Also, farmers out there have had lots of rain – which is often problematic in the short term, but is great news and provides serious economic support into the future.  Too few make comment about the farmers’ impact on our economy these days.  Wet is good, dry bad – it isn’t that hard to remember.
So, was Tuesday’s interest rate decision a wise one?  For mine, as noted, the RBA should have cut by 0.5 percentage points.  Remember, the RBA cut the official rate because of concerns about the international situation and the inflation outlook (at present) is benign.
Further interest rates cuts (given the 0.25-percentage-point official drop) might occur, but they won’t now be due to our domestic economy but because of further crises in the eurozone.
A 50-basis-point drop would have boosted local confidence and allowed the majors to pass on a meaningful drop to mortgage holders, and especially small business owners.  But for mine, structural reform is more important – given how low interest rates already are – than monetary easing, and sadly there is no sign of any relevant action.
As I have noted, much more needs to be done to kick-start new housing than just dropping interest rates.  Structural reform, not cyclical tinkering, is urgently needed.   Housing isn’t the only engine that desperately needs a major overhaul.
Australia’s structural problems require welfare, tax, regulatory and IR reform.  Further interest rate cuts might happen, but there is a real risk of putting the monetary policy cart before the structural reform horse.
Roll on the next federal election – and we must hope for a government seriously interested in economic reform.
And despite the current absolute economic incompetence, the ABS’s latest quarterly health check on corporate Australia found that although profits were down, sales, inventory and wages all grew at a reasonable rate during the first three months of this year.  In fact, we are creaming most of the world.
Australia’s annual growth pace of 4.3% compares with 1.9% in the USA; a zero to negative result in the eurozone; a 0.1% contraction in the UK (and I thought it was just the crappy music at the Queen’s Diamond Jubilee that was putting the pucker on Her Majesty’s face) and 2.6% growth (yes growth) in Japan.  China is currently growing at 8.1% and India by 5.3%.
In short, Australia is a country that barely understands, let alone appreciates, its own luck.
Being so close to good fortune can often make one blind to it.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition. Michael has launched a new initiative, called<a target="_blank" href="https://www.matusik.com.au/"> Think Matusik</a>. Think Matusik brings together expert opinion and select property opportunities.
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Henny Penny doesn’t know which way to run in the face of good economic news

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<a target="_blank" href="/news">Charleville</a>, <a target="_blank" href="/news">Rockhampton</a>, <a target="_blank" href="/news">Mackay </a>and Mount Isa were the only regional areas in Queensland where median house prices rose over the year ending March 2012, according to Residex data.
Mackay has consistently been the best-performing area in Queensland, with 4.96% growth in the last quarter to $408,500, 5.45% growth in the year to March 2012, and an average yearly growth rate of 12.39% over the past decade.
Median house prices dropped in the seven other regional areas surveyed, with Noosa and Cairns recording the biggest decreases of 8.08% to $416,000 and 5.65% to $314,000 respectively.
Noosa has had the lowest average yearly growth over the past 10 years at 6.84%, closely followed by Cairns at 6.9%.
In the recent past Mackay has been performing the strongest with median prices up 3.82% in the last month and 4.96% in the last quarter.
<a target="_blank" href="/news">Cairns</a> has recorded the biggest decreases over the last month, dropping 2.43% to $314,000.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/residexmay18.gif" rel="shadowbox"><img src="/images/stories/residexmay18thumb.gif"></a>
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Charleville, Rockhampton, Mackay and Mount Isa only Queensland regional areas with rising house prices over past year: Residex

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The Brisbane housing market is starting to experience the benefits of the resources boom but the Gold Coast remains one of the “worse performing markets,” says CBRE in its second quarter south-east Queensland market view report. 
The report notes that the Sunshine Coast housing market continues to struggle – though not to the same extent as the Gold Coast market – with both coastal markets not seeing much benefit from the mining boom in central and northern Queensland.
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CBRE mortgage valuations regional director Tom Edwards says the Gold Coast is clearly a buyers’ market, with slow conditions still prevailing. 
“The Gold Coast remains one of the worst-performing residential markets in Australia, with oversupply in the unit market a major issue,” he says. 
“The oversupply of prestige apartments is still the biggest issue on the Gold Coast, with a lack of active buyers in this sector,” says the report.
The Sunshine Coast faced similar conditions in the second quarter, though the value decline was not as steep. Some signs of increased activity were recorded in the quarter in the lower price brackets, but these markets remain overwhelmingly soft. 
“The prestige market, particularly in Noosa, is still trending down, with agents reporting very low levels of buyer interest,” says Edwards. 
The report says that these two markets are under pressure from low levels of buyer confidence, with sales volumes continuing to trend downwards. 
Illustrating clearly the uneven effects of the mining boom on regional property markets, recent figures released by the Real Estate Institute of Queensland (REIQ) for the March quarter show Gold Coast house prices down 5.1% to a median of $454,000. 
In comparison, house prices in the resource-rich Isaac region are up 28% to a median of $703,000 over the same period. 
Brisbane house prices improved 1.2% over the March quarter, according to the REIQ, to a median of $505,000, but are still down 4.7% over the past year. 
The REIQ says the March quarter result indicates the Brisbane housing market has turned a corner, with “positivity finally returning to the market”. 
However, according to CBRE the improvements in Brisbane have not been sufficient to indicate an increase in capital housing values in the state. 
“Improvements have been identified for properties within a 15-kilometre radius of the Brisbane CBD, though activity is still confined to realistically priced property,” says CBRE global research and consulting associate director Sam Reilly. 
“In some instances, back-up contracts are being sighted by valuers indicating some proven levels of demand that have also been illustrated by reduced selling periods." 
However, tough operating environments remain in areas that are not exposed to the benefits of the resource sector such as the Gold Coast and Sunshine Coast. 
CBRE says that Queensland, while remaining a state that is showing strong prospects courtesy of the huge expansion in the mining sector, is experiencing significant challenges in other sectors. 
Challenged sectors include tourism, manufacturing and construction. 
However, CBRE expects the mining boom to provide longer-term opportunities for the state including in terms of jobs and infrastructure improvements. 
Further west, the Toowoomba market continues to record historically low sales volumes, but buyer sentiment has improved as a result of the change in state government and interest rate reductions, says CBRE. 
According to Edwards, the short- to medium-term outlook for the overall south-east Queensland market is likely to continue remain segmented, with scheduled growth proportionate to resources proximity.
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Brisbane property market recovering but Gold Coast still struggling: CBRE

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The prestige market was somewhat subdued this week, with no sales cracking the $3 million mark, according to RP Data.
A five-bedroom 1930s Kew property that sold prior to auction for $2,836,000 was the top sale of the week. It was marketed by Marshall White agent Walter Dodich, who says it has been “stylishly renovated and updated to accommodate the demands of a contemporary lifestyle”.
The home, on an 1,190-square-metre block, last sold in 1999 for an undisclosed price.  
<img src="/images/stories/2012/06/william.jpg">
The second most expensive sale of the week was the three-bedroom penthouse of the Montage building in Double Bay with harbour views (pictured above). It sold for $2.75 million.
1. 4 Royston Court, Kew, VIC, 3101, five-bedroom house, sold before auction on June 2 by Marshall White Real Estate for $2,836,000
2. 45/51 William Street, Double Bay, NSW, 2028, three-bedroom unit, sold on June 1 by Di Jones Real Estate Woollahra for $2.75 million
3. 92 Morris Street, Williamstown, VIC, 3016, four-bedroom house, sold at auction on June  2 by Williams Real Estate for $2,692,000
4. 687 Park Street, Brunswick, VIC, 3054, five-bedroom house, sold at auction on June 2 by Peter Markovic Real Estate Fitzroy for $2.65 million
5. 14 Bangalla Street, Warrawee, NSW, 2074, six-bedroom house, sold before auction on May 31 by L J Hooker Wahroonga for $2.56 million
6. 19 Yanko Avenue, Bronte, NSW, 2024, five-bedroom house, sold before auction on June 2 by Raine &amp; Horne Double Bay for $2.5 million
7. 86 Stanhope Street, Malvern, VIC, 3144, three-bedroom house, sold at auction on June 2 by R T Edgar Toorak for $2,405,000
8. 46 Burns Crescent, Chiswick, NSW, 2046, four-bedroom house, sold at auction on June 2 by Raine &amp; Horne Concord for $2,401,000
9. 4 Goldsack Street, Glen Osmond, SA, 5064, four-bedroom house, sold at auction on May 30 by Smallacombe Real Estate Burnside for $2.4 million
10. 12 Saywell Street, Chatswood, NSW, 2067, five-bedroom house, sold at auction on June 2 by Shead Property for $2.28 million
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