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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Latest figures from the ABS (Australian Bureau of Statistics) show that building approvals fell by 7.8% in February, seasonally adjusted, following a rise of 1.1% in January, further placing pressure on the RBA to cut interest rates at today’s RBA board meeting.
With median property prices on the decline across all states and approvals for private sector housing down by 3.4% in February and a 15.8% drop in approvals for other dwellings, such as units and apartments, we can only hope that the interest rates will receive another cut soon.
Whether at today’s or at the May 1st meeting, the RBA will have to cut the interest rate to reinvigorate the market and make up for the slump we have seen since the last cut. While I can understand the RBA’s caution over the past two months, especially in view of the European financial climate, it has become obvious that further cuts should have taken place.
In order to strengthen the real estate market, boost new dwelling construction to meet the housing shortage and encourage market activity especially from first home buyers, an interest rate cut is a ‘must have’.
If we really wanted to invigorate the real estate market, perhaps, easing of planning costs and delays, an amendment of capital allowance provisions to enable accelerated depreciation of new rental dwellings and a national reduction of stamp duty obligations for first time buyers would be steps worth considering.
Cutting the interest rate, reducing the cost base of new housing, increasing housing supply, and boosting affordability are not only worthy aims, they are essential to a more productive economy. Housing is shelter and a necessity of life, and we should make curbing its shortage a high priority when making budgetary and legislative decisions.
Robert Projeski is a respected property finance expert and the managing director of <a href="https://www.amo.com.au" target="_blank">Australian Mortgage Options</a>, an independent mortgage management firm with over nine industry awards to its name. 
 
 
 
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RBA should cut interest rates today

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Last week I discussed <a href="https://www.propertyobserver.com.au/commercial/fourteen-questions-to-ask-yourself-before-you-begin-a-negotiation-in-commercial-property/2012032654018" target="_blank">14 questions you need to ask yourself before beginning any negotiation</a>. Here are a final six. Are you…
1. Remaining professional?
You simply can't afford to lose your temper and still retain respect, from the other party.
People can be insulting, and it is all too easy to respond aggressively. But sometimes they're just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations to give them a chance to regain their composure.
If it is a genuine outburst on their part, they can cool down. And if it's merely a ploy, they're going to look rather stupid.
2. Aware of the benefits and consequences?
You need to try and understand the benefits and consequences for each party in the negotiation.
Only then can you properly decide when (and how) to make any concessions, also when (and how) to stand firm, with your own needs and requests.
3. Employing the power of silence?
Work on becoming comfortable with silence. Most negotiators feel the need to jump in with some comment whenever there is an awkward pause in proceedings.
But whenever the answer to your question will actually commit the other party, say absolutely nothing more. Otherwise, all you'll get is further conversation.
4. Avoiding on-the-spot decisions?
Never commit on a major point unless you are quite sure of your answer and you're on solid ground.
No matter what the pressure, all you need simply say is: "I may need to sleep on that, I'll get back to you tomorrow".
5. Considering the telephone?
By choice, negotiations should commence face-to-face.
However as things progress, you'll sometimes find more progress can be made by phone — because it takes out all the emotion and allows you to simply focus on the rational items, rather than any personal issues.
6. Documenting the final agreement?
Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of "heads of agreement", a confirming letter or an email) is all you need to tie down the deal.
You need to have some form of documentation at the end, if this is a serious negotiation.
What you might say is: "Let's make a few notes on the points we have agreed for each of our files and just initial it."
This is vital. It provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: "That's not what was agreed."
If you both have the same set of notes, it's easy to verify that the contract has been drawn incorrectly.
Otherwise, you'll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.
Bottom line: I hope this has helped you to gain a complete "helicopter view" of how each component of a negotiation ties in with all the others.
And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment. 
 
 
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chrislang-EQKojcgJPV

Six final questions to ask yourself before commercial property negotiations

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For Melburnians, Prahran is synonymous with the iconic Chapel Street, hailed as Melbourne’s most stylish shopping precinct and renowned for its funky bars and every cuisine you can think of under the sun. Situated within five kilometres of the CBD, St Kilda and Albert Park, offering every form of public transport – be it tram, train or bus – it’s no wonder it’s a haven for young professionals wanting to make the most of inner-city living.
For these (very) popular reasons, Prahran is an area that doesn’t experience the same level of turnover as some of our nearby suburbs like Brighton. To give you an idea, jump on realestate.com.au and you’ll see Brighton currently holds 42% more stock than Prahran (158 properties listed in Prahran compared to 272 Brighton).
We had our first open for inspections in late January but it wasn’t until  February 11 that we really started building some steam with our first auction. To say things have heated up since then would be an understatement – seven weeks on and we’re working on a clearance rate of 86%.  Bear in mind auctions only represent roughly 70% of our sales and don’t take into account the properties sold privately.  
Statewide, clearance rates are also picking up, with the last few weekends hovering around 60% and Prahran faring even better at 74%. Despite the Big Four breaking ranks with the RBA this year and the unemployment rate dropping in February, confidence is clearly on the rise.
Why? A lot of buyers – especially in Prahran – were holding off towards the end of last year amidst cries of the market ‘bottoming out’. They’re now realising it’s time to get on with their lives while conditions remain favourable. Despite all the hoo-haa around the big four banks raising their rates in February, <a href="https://www.tradingeconomics.com/australia/interest-rate">interest rates are still historically lower – bar the period directly after the GFC – than they have been in a decade.</a>
What’s the major difference between the market now and during the GFC? If you remember back then, despite interest rates hitting a record low of 3% in April 2009, the Rudd government’s boost to the first- home owner’s grant meant property prices were being driven to record highs due to unprecedented demand (not surprising given the first-home owner’s grant was doubled to $14,000 for existing dwellings and incredibly tripled to $21,000 for new homes).
Right now, we don’t have that same level of demand inflating property prices. As a result, housing affordability has never been so attractive, and it’s reflected in what we’re seeing in the marketplace. In the last two months, we’ve seen a 10% increase in our crowd numbers and up to 15% increase in open for inspection attendance. Very strong numbers came through a three-bedroom townhouse we’ve just listed in <a href="https://www.realestate.com.au/property-house-vic-prahran-110000416">Mary Street</a> at our first open. With a lock-up garage and courtyard, and located within walking distance to Prahran Market and Chapel Street, we’re expecting this to sell successfully come auction day.
So what can we expect for the year ahead? Our market will remain steady, so those expecting more price reductions in Prahran will be disappointed. While our median unit price decreased from <a href="https://www.realestateview.com.au/portal/propertydata?rm=medianprice&amp;state=victoria&amp;suburb=prahran&amp;postcode=">$495,000 in December 2010 to $444,000 in December 2011, our median house price actually increased from $899,000 to $997,500.</a> People<a target="_blank" href="https://www.propertyobserver.com.au/victoria/prahran-a-melbourne-auction-hotspot-as-buyers-trade-down-from-toorak/2012040254127"> flock to Prahran because of its lifestyle and location</a>, and these fundamentals won’t change and will contribute to why capital appreciation and rental yields remain consistent.
My advice to buyers is to take advantage of the steadying market now. It’s a bit of a catch 22. You can continue waiting for more confidence to return before buying, but higher confidence means more buyers. With more buyers comes greater competition, and what will that ultimately result in? Higher prices.
Andrew James has more than a 20 years' experience in real estate and is director of <a href="https://www.hockingstuart.com.au/" target="_blank">hockingstuart </a>Armadale.
Photograph of Prahran courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
 
 
 
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cknowlton-QnEa6ntUYP

Prahran: The hockingstuart mid-autumn 2012 property review

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Houses took nearly 11 months to sell in Ouyen last year, the slowest-selling locality in Victoria, according to RP Data. Ouyen houses took more than 100 days longer to sell than houses in the next slowest-selling locality, Paradise Beach. Property Observer notes there were just 17 sales in Ouyen last year.
<table width="205" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="103">
Locality
</td>
<td valign="bottom" nowrap width="103">
Days on Market
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Ouyen
</td>
<td valign="bottom" nowrap width="103">
324
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Paradise Beach
</td>
<td valign="bottom" nowrap width="103">
221
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Kerang
</td>
<td valign="bottom" nowrap width="103">
196
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Donald
</td>
<td valign="bottom" nowrap width="103">
191
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Briagolong
</td>
<td valign="bottom" nowrap width="103">
190
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Chiltern
</td>
<td valign="bottom" nowrap width="103">
186
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Malmsbury
</td>
<td valign="bottom" nowrap width="103">
184
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Metung
</td>
<td valign="bottom" nowrap width="103">
184
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Coburg
</td>
<td valign="bottom" nowrap width="103">
183
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="103">
Grantville
</td>
<td valign="bottom" nowrap width="103">
182
</td>
</tr>
</tbody></table>
 Source: RP Data
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awalsh-7Ub9EypybQ

Ouyen the slowest-selling locality in Victoria: RP data

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We’re about to launch into the mid-season compulsion with renovation programs.  It seems only moments since the last great furore over Channel 9’s The Block, which hit our screens mid last year.  During the course of the open house inspections, more than 300,000 people queued outside the homes to take a sticky beak over the intricacies of design.  Details of the price initially paid, previous owners and subsequent buyers were fished out and endless analysis followed. Such was the furore that many were convinced sales expectation would be achieved. However, the finale was heralded a disaster.  Only one property sold under the hammer and when renovation, stamp duty and subsequent sales costs were totted up, none of the homes – in and of themselves – made a profit.  However, that wasn’t the point.  Far exceeding expectation, it was the station’s highest-rating show of 2011 and factoring in the sponsorship and endless publicity, the “owner” (Channel 9) could have given away the homes and still made a healthy profit. 
Obsession with property isn’t unique to Australia, however it’s manifested itself as one of the great foundations of our culture to the point of being heralded – above everything else – as “The Great Australian Dream”.  Go out on a Saturday in Melbourne and you’ll see street auctions attended by 50 or so people, of which three-quarters will be there for the fascination value alone, intently concentrated on the numbers and either comparing their own properties against the result or dreaming of pursuing a similar acquisition. Although the desire to own property doesn’t set us apart as a nation and no one relishes the thought of paying a landlord well into old age, other countries have accepted a culture far more adapted to renting than owning and consequently overall demand for the purchase of property has been lower along with price appreciation. 
<country-region><place>Germany</place></country-region> is one such relatively well-known example. In Germany, the accepted culture is to rent rather than buy, with less than 50% of the population recorded as “owner-occupiers”. Because of this, rents have outpaced house prices since the year 2000. As with any country, the market is fragmented, with some cities performing better than others and there’s still a clear east/west divide. To accommodate a larger rental landscape, yields are monitored closely with a regularly updated publication called the Mietspiegel (Rent Mirror), which lists average rent prices in each district, and landlords are required to adhere to them. Leases are expectedly lengthy and agreed over years rather than months.  The responsibility to decorate or renovate falls upon the tenant, not landlord, and is often part of the negotiated contract. Tenants are given free rein to make the property at least “feel” as if it’s their own providing they return it to a “neutral” state upon vacation. 
The rental market in Germany is tight and it can take months for families to secure suitable accommodation.  In some towns, at least half the family wage is dedicated to the task. You may wonder why more don’t decide to purchase, and there are various reasons attributed to this.  Unlike in Australia, banks don’t court the buyer market – there are no property grants and few tax incentives.  Deposits have to be large and there’s a general, inbuilt, reluctance to borrow or even spend on credit. Interest rates are fixed – thereby avoiding the inflationary tendances changes to a variable rate can evoke – and population growth is low and has been falling since the year 2000. 
As with any country, Germany’s growth rates vary across different regions depending on supply and demand, however since the mid-1990s capital growth in the housing market has been unimpressive at best. Perhaps this is one reason we don’t see the same rate of real estate obsession in various European countries such as Germany as we witness here? For example, you won’t find streets lined with real estate agencies in Germany, or listen to discussions on “the state of the market” around the kitchen table. Property advocates are there to help people secure rental accommodation rather than purchase or sell. It’s a different landscape altogether. 
Australia’s obsession is built into the very fabric of our culture. Even the modest backyard cubby house has started to take on grand proportions, with companies specialising in building “eco-friendly” models complete with solar panels and plasma TVs. For those interested, they can fetch prices, up to, and in excess of $15,000 – and when you see the work involved, there’s no surprise why.  At the root of this obsession lays the widespread acceptance that property always goes up in value. It’s looked upon not so much as a place to live, but a key to building wealth and establishing financial security. I’m not telling you anything you don’t know; investment in bricks and mortar is encouraged from every quarter, from 95% LVR loans to open-handed tax incentives and property grants. 
However, we seem to have worked ourselves into a catch 22 situation because as the market ebbs and flows through its cycle and the supply of affordable and appropriately located accommodation diminishes, rental demand increases and yields rise, thereby locking a large section of society out of the market all together.  Consequently, gaining a foothold on the property ladder for first-home buyers is both a huge commitment and celebrated achievement. Once the first acquisition has been secured, it’s no wonder expectation and anticipation surrounding property prices feeds the obsession we feel when analysing price growth. However, in this respect, there’s a fine line to be drawn between obsession and greed. 
As entertaining as they are, programs like Channel 9’s The Block play to the latter, feeding the concept that it’s possible to renovate and “flip” a home immediately back onto the market, covering costs and gaining a healthy profit on the outlay.  Updating an old-styled home through a carefully thought out renovation is a fantastic idea if the owner is a) careful not to over capitalise and b) hold the property for a period of time suited to market conditions.  The first rule is perhaps the most important because one person’s tastes are not universal. Most potential owner-occupiers want to place their own stamp on a home, so while a good floor plan and effective use of interior space will provide a backdrop for a new buyer to do this, few want to pay a premium for someone else’s extravagance and it takes experience to recognise how to balance the difference. 
Interestingly, from all the “serious” buyers who viewed the properties used on The Block last year, three of the four homes were purchased by investors and subsequently rented for around $1,000 per week. No doubt most of the home buyers would have been interested in adapting the renovation ideas to their own tastes rather than paying a premium for a completed version not specifically tailored to their needs. It really was a perfect example of over capitalisation; however clearly that was half the fun of the program and proved great entertainment. Whether the properties will attract current yields in years to come as the initial shine wears off, especially considering the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-block-buyers-face-a-proposed-12-storey-richmond-apartment-block-threatening-their-investments/2011101851982">compromised position opposite a multistorey car park</a>, is debateable. However, no doubt this year’s series will attract a similar level of obsession as the last. 
Back in 2010, the consequences of a nation obsessed by renovation was discussed by Phillip Lowe – assistant governor at the Reserve Bank. He, along with others, argued that our obsession with renovating homes and building ever “bigger and better” is stagnating investment into new dwellings and exasperating the nationwide shortage of affordable accommodation.  The more we pour into renovating existing dwellings not just for our own living :wants”, but with a view to expecting a return “plus profit” on the initial outlay, the more expensive property becomes and the harder it is for first-home buyers and renters to secure a foothold. However, higher prices aren’t limited to homes renovated in inner-urban locations; government overlays and strict building regulations imposed on builders to ensure every new home meets the new “six-star” energy rating now adhered to in most states places additional and arguably unnecessary premiums on prices. 
It’s yet another example of how this obsession to build bigger and better has somehow traversed itself into policy proving that “affordable” isn’t the priority, less carbon emissions are.  Consequently, prices are unnaturally high in the growth regions of our capital cities – or at the very least, higher than they should be. As the population slows and affordability continues to take a hold, it’s likely that those who purchased new developments in the boom phases of the market cycle will lose money on their investments, at least in the short term. 
This requirement and obsession with property along with overcapitalisation on renovation hamstrings the market making property ever more unaffordable for a large section of our society. It’s not unique to Australia; other countries have similar issues providing affordable housing under strong population growth. Israel is one such example. Israel’s recent “Occupy movement, during which a record 7% of the population moved into a tent city, was initiated by a single renter unable to secure affordable accommodation in the inner-urban localities – areas with adequate facilities not available on the periphery. However, in Australia we have something these other countries don’t have, we’re different.  We have an abundance of land along with a comparatively smaller population and one of the best-performing economies in the world! 
It’s therefore should be a priority that we move the focus onto the low-income groups and come up with a broader debate on how we can make property more affordable for the larger percentage of our population most at need – both renters and home buyers.  It’s not just about building more roof space, it’s about doing it in combination with adequate facilities which will provide options for those stuck with high cost accommodation in inner urban suburbs, combating ever rising house prices and extreme rental yields.  These policies must be addressed nationwide if we’re to secure a prosperous future for all Australians – not just a privileged few.
 
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://ten.com.au/the-circle.htm">The Circle</a> and a senior consultant for <a href="https://nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs - Australia wide - for home buyers and investors.
 
 
 
 
 
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catherinecashmore-6LXia3pPQj

Australia's obsession with bigger and better property is making it less and less affordable

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Every month, real estate magazines promote different hotspots and investment opportunities around Australia, and first-time investors can be tempted to jump on the bandwagon and blindly follow that advice.
Instead, I encourage you to do your own “hotspotting”. It’s all about finding the ideal investment property that suits you, your lifestyle and your investment goals.
DIY hotspotting is a time-consuming process, because there is so much research involved. Once you select the area you want to invest in, it’s important that you do your homework by checking out past and present capital growth rates, and investigating the level of infrastructure and amenities in the area, including roads, public transport, hospitals and schools.
All of this takes a commitment of time and energy, but this is definitely not an area in which you should cut corners. Trust me, I know, I learned the hard way.
Not doing your homework is one of the grand faux pas that investors — particularly first-time investors — make. And it can end up costing you a bundle.
There was a property we bought many years ago in Kalgoorlie in Western Australia. It was our eighth property purchase and at the time I thought, “I’m an experienced property investor, I know what I’m doing!”
And I took shortcuts.
I lived in Melbourne and the property we were looking at was on the other side of the country. We had done some research and identified Kalgoorlie as our next place to invest because we wanted to add a cashflow-positive property to our portfolio. In Kalgoorlie property prices were low and rental yields were high and there seemed to be plenty of opportunities to invest.
We were looking at a small house with an asking price in the high $100s, with a fantastic rental return of $330 per week, which suited us perfectly.
The lease was a little bit different in that it wasn’t a private rental, it was actually leased by the government. The government department was called GEHA (Government Employee Housing Association), and it was its sole focus to source and rent appropriate properties for their staff.
The brilliant thing about GEHA is that it likes stability, so leases tend to be long term — a minimum of three to five years with automatic CPI (Consumer Price Index) rent increases and options for lease renewal built into the lease contract. From an investor’s perspective, it sounded ideal.
At $330 per week the rental return was more than enough to cover the mortgage and ownership costs and the GEHA lease had another full year to go on its five-year term. At that point the department had the option to renew the lease for a further three years or terminate it.
The real estate agency that I was dealing with at the time was exclusively a sales agency and didn’t have a property management arm. I asked the agent what he thought the property would rent for in an open market, just in case GEHA didn’t renew the lease.
“Helen, you’ll get $330 per week easily on the rental market,” he assured me. It was exactly what I wanted to hear, so we put in an offer of $173,000 and 30 days later we settled on the house and celebrated the arrival of our first cash flow positive property.
What was my big mistake? I didn’t do enough homework. I just took the selling agent’s word for the rent on the open market. I didn’t try to validate the information he gave me, or get the opinion of property management agents in the area. I didn’t do any more research on GEHA to see whether it regularly renewed its leases. Nor did I check whether the property we were buying was even the type of property they still wanted for their employees.
You can guess what happened next.
Twelve months later, at the expiry of the lease, GEHA decided not to exercise its right to extend the lease.
At the time I thought, “OK, no problem. I’ll still get my $330 a week from another tenant” — in fact I was even thinking that I might be able to increase the rent a little! This was too easy.
I asked a property manager to look through the house and after doing so, she called me back right away. “Helen, you’ll be really excited,” she said. “The market’s really buoyant right now, there’s lots of demand for rental property, particularly this style of house.”
“I can easily get you $260 a week,” she said.
My jaw dropped.
Several seconds of silence passed before I regained my voice.
“You mean $360 per week, right?”
“No, no, $260 per week,” she confirmed.
I couldn’t believe it — I was truly gutted.
At a rental return of $260 per week the investment was slightly negatively geared — and the whole reason why we went to regional Western Australia was for the opportunity to secure a positive cashflow deal!
We had bought it because it was earning $330, which was great cashflow. In one phone call, our investment had gone from being our shining star to a bit of a lemon.
We offloaded the property at the first opportunity and we were even able to make a little money out of the re-sale. But as a result of that experience, I now always do detailed due diligence research when I’m in the market to buy. I generally end up with a 40-page document on each property, and that’s because I certainly don’t want that sort of thing happening again.
This is now your opportunity to learn from my mistakes. Don’t take shortcuts when it comes to your research. Yes, it takes time and effort to make the right decisions but if you put in the hard yards now, you’ll be rewarded with a robust investment property portfolio that will deliver great returns for years to come.
Helen Collier-Kogtevs is an educator and property investor. This is an excerpt from <a target="_blank" href="https://www.majorstreet.com.au">How to Start Creating Real Wealth Through Real Estate</a>, published by Major Street.
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hckogtevs-dj64yEnMLW

The danger of not doing your property buying research properly

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A rise in unemployment would be more likely to compel the Reserve Bank to cut interest rates than poor building approvals data, according to Commonwealth Bank senior economist Michael Workman.
“Today’s [building approvals] data would be seen as supportive of another RBA rate cut. 
“We see another rate cut coming soon. But think that it will be more because of clear signs of jobs-related weakness. 
“There is a school of thought that has the level of residential construction activity as more attuned to the state and local government land release and development cost process, rather than a direct interest rate issue,” Workman says.
March ABS unemployment data will be released on April 12 – the February release showed unemployment up slight from 5.1 to 5.2%.
Workman points out that the <a href="https://www.propertyobserver.com.au/industry-news/february-building-approvals-down-7.8-as-residential-construction-outlook-weakens-abs/2012040254116" target="_blank">7.8% February building approvals slump</a> was mainly due to volatility in the multi-unit segment and driven by a 66% drop in multi-unit approvals in NSW, which partially unwound the large rise of 86%, in January. “Excluding NSW, residential approvals rose by 5.5% but are still 8.3% lower than a year ago.
“Putting the residential approvals data into perspective, the moving annual total was running at 146,000 in February. This time last year it was 17,000 which was slightly lower than the 178,000 peak hit in October 2010,” he says. 
CommSec chief economist Craig James says the RP Data Rismark figures (dwelling prices up 0.2% in March), slump in building approvals and solid demand reported from Sydney estate agents at auctions over the past weekend show simply that “demand exceeds supply in many regions, supported by improved affordability and higher migration”. 
“While builders will continue to compete hard for available work, home owners are likely to see the value of their homes rise over the year. CommSec tips a modest 3% lift in prices over 2012. 
“Another fall in the manufacturing gauge (The Performance of Manufacturing index fell by 1.8 points to 49.5 suggesting manufacturing is contracting), weak dwelling approval and a low inflation reading keeps the Reserve Bank poised to cut rates. 
“Still, the stabilisation in home prices works the other way – keeping the Reserve Bank on the sidelines,” James says.
 
 
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Jobs figures more likely to influence RBA’s interest rate decision than building data: CBA

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Cheaper units outperformed houses in Australia’s major capital cities by a wide margin during March, according to the latest RP Data-Rismark Daily Home Value Index Results.
Capital city unit prices increased by 0.9% during the month to a median of $400,000, while detached house prices increased by just 0.1% to a median of $464,500.
Across both markets capital city dwelling prices (houses and units combined) were up 0.2% in March to a median of $445,000 leaving dwelling values unchanged over the quarter – the strongest quarterly result since March 2011, when values increased by 0.7%. 
“Looking at the quarterly results on a more granular basis, the improved conditions over the March quarter can largely be attributed to the performance of Australia’s largest housing market, Sydney, where values rose 1.1% over the quarter,” says RP Data research director Tim Lawless.
“Values were down across many of the other capital cities over the quarter, with the most significant drop recorded in Adelaide, where dwelling values were down 1.5%,” Lawless says.
The March figures show that units delivered investors a median rental return of 4.8%, while houses managed a median return of 4.1%.
Over the past 12 months, units have delivered investors a 2.2% total return (capital growth plus rental growth) while housing returns have fallen by 0.8 % over the same time.
RP Data senior research analyst Cameron Kusher tells Property Observer the better growth in units over houses in March is “definitely a trend” that has been in evidence over the past five years.
“It comes back to affordability and the fact that more people are willing to live long term in apartments.
“We now have fairly mature unit markets within capital cities – these have developed over the past 15 to 20 years,” he says.
While noting the strong performance in Perth over March, Kusher expects that Sydney will most likely be the best-performing capital city market over next 12 months.
“We don’t expect astronomical growth in Sydney, but around 3% for the year,” says Kusher.
Kusher says an undersupply of housing, fairly strong population growth and an easy of stock on market are driving the Sydney market.
As for Perth, Kusher says if the market has not yet begun recovering, it is now fairly close to that point.
However, he expects further weaknesses in Melbourne and on the Gold Coast.
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Perth was the strongest capital city market in March, registering a 1.4% rise in dwelling prices to a median of $445,000 with unit prices up 1.8% to $384,000 and house prices up 1.4% to a median of $455,000.
Despite the improvement in March, Perth unit prices are still down 7.2% year-on-year while Brisbane-Gold Coast houses are down 7% year-on-year, making them the weakest unit and housing markets respectively over the past 12 months.
Sydney dwelling values increased by 0.4% over March, with units up 1% to $470,000 and houses managing just 0.2% growth to $572,000.
The Melbourne housing market fell 0.2% over March (down 5.4% over the past 12 months) with a 0.3% drop in house prices to $495,000 matched by a 0.3% rise in unit values to $420,000.
Adelaide had the greatest disparity in house and unit performance during March, registering 3.1% gain in unit prices to a median of $310,000 compared with a 1.8% drop in house prices to a median to $385,000.
Among the five major capital city markets, only the Brisbane-Gold Coast market bucked the trend, with house prices rising 0.5% to a median of $425,000 and unit prices falling 0.3% to $353,000.
Canberra units increased by 2.9% to a median of $417,500 while the small Hobart unit market gained 0.6% to be 15.4% for the first three months of the year with a median price of $275,000.
Over the quarter Hobart has the best performing capital city with dwelling values up 7.3% over the three months to March 31, 2012.
Darwin dwelling values increased by 1.1% over the month to a median of $470,000 with houses up 1.6% to $520,000, while unit values fell 1.3% to a median of $378,500.
The Northern Territory capital city has the highest rental yield for both houses (5.7%) and units (5.9%) of all eight capital cities.
According to Ben Skilbeck, managing director of Rismark International, there are a number of factors pointing towards an improvement in housing market conditions over recent months.
“The ratio of national house prices to household disposable incomes is currently below the decade average.
“Additionally, according to the ABS housing finance data, both the value and number of loan approvals for the purchase of established dwellings are at levels not seen since November 2009.
“First-home buyers as a proportion of all home loans approved are back to levels not seen for two years,” he says.
Skilbeck says yields are also showing modest improvements with rental yields for houses across the combined capital cities improving from 3.6% in 18 months ago to 4.1% currently with gross yields on units improving from recent lows of 4.4% to 4.8%.
“The most significant rental yield improvements have been recorded in Darwin, Perth and Brisbane, which have increased by 22%, 21% and 1% respectively from recent lows,” he says.
Photograph by Brian Yap, courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
 
 
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Units outperform houses as market stabilises in March: RP Data-Rismark

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RP Data and Rismark have reported their March quarter house price index results today, and the findings were encouraging. They certainly dispel any predictions of precipitous price falls. 
Across Australia’s eight capital cities, dwelling values actually increased by a modest 0.2% in the month of March with Sydney (+0.4%), Brisbane (+0.8%), Perth (+1.4%), Hobart (+1.4%), and Darwin (+1.1%) also registering decent capital gains. In contrast, home values fell in Melbourne (-0.2%), Adelaide (-1.4%), and Canberra (-0.3%). 
Over the first three months of the year, Australian dwelling values are unchanged (0%) across the eight capital cities. In fact, RP Data-Rismark’s hedonic index data suggest that Australian dwelling values have not budged at all since the end of October 2011, which makes sense given the RBA’s shift to a much more accommodative policy stance.
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As regular readers will recall, I previously forecast that we would see a cessation to the house price declines that were characteristic of 2011, and an improvement in activity during the first quarter of 2012. This appears to have panned out. 
While housing conditions naturally vary across the individual cities, RP Data-Rismark report a consistent pattern of stabilisation across the three major conurbations (see chart below). Since the end of November 2011, Sydney and Melbourne dwelling values are basically unchanged (-0.1% and +0.1%, respectively), while Brisbane values have actually edged up a touch (+0.5%).
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<img src="/images/stories/april22thumb.gif">
The standout performer in the year to date has been Sydney real estate, with dwelling values realising robust capital growth of 1.1% over the first quarter. Needless to say, it is rare that Sydneysiders read much that is positive about house prices, given the proclivities of local journos keen to grab headlines by peddling doom and gloom. 
The subsiding of material price falls since the RBA’s first rate cut in November is also clear across the smaller cities. With the exception of Adelaide (-4.1%), home values in Perth (+2.2%), Darwin (+5.2%), Canberra (-0.6%) and Hobart (+0.5%) are all around their November 2011 levels, or higher (see chart below).
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The stability in conditions is also evident in other indicators. Auction clearance rates have gradually improved, with the national rate now regularly printing above 50% (see chart below). Housing credit, which is a key demand-side proxy, is also expanding – not contracting – at a pace that would be expected given the growth in disposable household earnings.
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<a rel="shadowbox" href="/images/stories/april24.gif" title="Click to enlarge"><img src="/images/stories/april24thumb.gif"></a>
In the final chart below I have illustrated the RBA’s analysis of Australia’s housing debt-to-disposable income ratio.  For the best part of the last six years, the growth in Australian housing credit has tracked household incomes almost exactly 1:1. This is why the line in the chart has moved sideways. It is also what we’ve predicted for years now: that is, a deceleration in the double-digit household credit growth rates to a new normal of single-digit rates in line with incomes.
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<a rel="shadowbox" href="/images/stories/april25.gif" title="Click to enlarge"><img src="/images/stories/april25thumb.gif"></a>
Reflecting on today’s results, Rismark’s Ben Skilbeck added, “While the housing market remains soft, the fact that values did not change over the first quarter of 2012 suggests that it is consolidating its position following a weak 2011. In addition, the ratio of national house prices to incomes is currently below its decade average, which implies that affordability is better than it has been. Finally, we note that the share of first time buyers as a proportion of all loans approved is back to levels not seen for two years. First time buyers are typically a good weathercock for changes in affordability.”
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
 
 
 
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chrisjoye-JYhJsTrNRC

Sydney the standout performer in 2012 for dwelling values: Christopher Joye

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The Reserve Bank looks set to leave interest rates unchanged for the third straight month tomorrow  and might only cut rates once between now and September, two surveys of economists suggest. 
All 25 economists survey by Bloomberg expect the RBA to leave rates unchanged when it meets tomorrow, and just over half (14) expect the RBA to cut rates by to 4% on May 1. 
Interest rate futures markets are factoring in a greater possibility of a rate cut – they say there is about a 40% chance the RBA may loosen its monetary policy tomorrow. 
Looking ahead to the June 5 monetary policy meeting, 13 economists expect the cash rate to be at 4%, just three expect a further rate cut to 3.75% and a significant one-third expect the cash rate to remain at the current 4.25%. 
A separate poll of 18 economists carried out by the Australian Financial Review expects the Reserve Bank to cut interest rates just once more over the next six months to September.
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Twelve out of 18 economists polled expect the cash rate to drop to 4% over the next three months, with only Annette Beacher from TD Securities forecasting two rate cuts over the next six months. The remaining five expect rates to remain on hold over the next three months. 
The economists polled by the AFR predict lower inflation will make it possible for the RBA to cut rates. 
However Westpac chief economist Bill Evans says the RBA decision will be live tomorrow and could be swayed to cut rates. 
Evans says that if it were Westpac’s decision, it would cut rates tomorrow. 
“The bank's decision will be finely balanced and as always determined by subjective judgements. For the board to cut rates, it will need to be absolutely comfortable that the threshold for a move which has been clearly communicated in recent statements – that ‘demand conditions weaken materially – has been crossed. 
“While we believe that this condition has already been met, we feel that on balance a prudent central bank will decide to wait. Therefore we are maintaining our forecast for the next rate cut to be in May, followed by July,” says Evans. 
Evans says Westpac’s recent Coast-to-Coast report highlights the multi-speed nature of the Australian economy, complicating the decision for the RBA. Economic demand soared in Queensland (10.0%) and Western Australia (11.1%) in the second half of 2011 but contracted in South Australia (–0.6%), Tasmania (–0.7%) and Victoria (-0.4%). 
The report notes that NSW received a timely boost from its coal sector but it has still only managed to grow at a below-trend 2% in 2011. 
Similarly, CommSec chief economist Craig James says a “raft of sectors are under pressure in the current environment – retailers, manufacturers, home builders – and we can add banks to the list. 
“The case for another rate cut remains strong,” he says. 
Su-Lin Ong from RB C Capital Markets expects two rate cuts in 2012 due to a “sub-trend pace of growth, rising jobless rate, likelihood of further independent increases in standard variable rates, and a still challenging global outlook suggest the RBA should be doing more to support demand”. 
Ivan Colhoun, head of Australian economics and property research at ANZ, says recent communications by the Reserve Bank suggest the market is underestimating the chances of a reduction in the official cash at next week’s RBA board meeting notwithstanding  the recent increase in pricing by the market. 
“The minutes for March, together with a recent speech by the governor, contain subtle but important evolutions in the bank’s thinking. This raises our confidence in ANZ’s forecast of a rate cut by May and suggests a move at the April meeting cannot be ruled out,” says Calhoun. 
Writing in the Eureka Report, Alan Kohler says there are three reasons why the RBA should cut interest rates tomorrow. 
Firstly, as has always ready been pointed out by other commentators such as <a target="_blank" href="https://www.propertyobserver.com.au/economy/mark-bouris-takes-aim-at-rba-as-gail-kelly-warns-of-frequent-independent-bank-rate-rises/2012030853747">Mark Bouris</a> and <a target="_blank" href="/news">John Symond</a>, Kohler says “Australia's non-mining economy is stagnant at best”. 
While the mining the mining investment boom is locked and not dependent on China's GDP growth, Kohler says the other parts of the Australian economy are more vulnerable to a slowdown in China than they have ever been “because of their reliance on bulk commodity exports”. 
Kohler backs retailer Solomon Lew’s view that the RBA should cut rates by 50 basis points tomorrow to provide stimulus to the economy in light of planned spending cuts by the government to get the budget back in surplus by 2012-13. 
“The RBA will need to counter [the budget cuts if not next week, then in May and June,” says Kohler.
Lastly Kohler says a rate cut is needed to prevent the housing market from weakening further. 
“I had meetings this week with a senior banker and one of the country's largest housing developers, and it was clear that the banks are going to be restraining credit for a long time and this is going to suppress demand for housing.
“For investors it means cash rates will fall again this year so you should think about locking in with term deposits, if you haven't done so already,” Kohler says.
A mixed bag of recent economic data will add to the complicated picture for the RBA and could encourage it to keep rates unchanged until there is more evidence about which way the economy is heading. 
In the December quarter GDP growth was just 0.4% (below expectations of 0.8%) and housing starts fell another 7%. 
However the number of job vacancies rose 0.7% over the three months to February 2011, with 182,000 positions vacant while ANZ job advertisements also picked up. Commenting on these figures, CBA economist James McIntyre said deterioration in vacancies would bolster the case for a rate cut. 
Figures released today by the Rismark-RP Data show capital city home values rose 0.2% over the month of March 2012, leaving the market flat (0%) for the first quarter of 2012.
 
 
 
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