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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Research conducted by realestate.com.au has identified four common property market myths among Aussies:
<ol>
<li>The time of year doesn’t impact the success of buying and selling property</li>
<li>First-home buyers are being forced out of the market</li>
<li>Properties are currently overvalued</li>
<li>Low auction clearance rates mean houses aren’t selling</li>
</ol>
 
Myth 1: The time of year doesn’t impact the success of buying and selling property 
Consumer research indicates that over half of Australians (51%) believe the time of year bears no impact on the success of buying and selling property, with only 9% acknowledging autumn as the best time. However, autumn is most definitely the most opportune time to enter the property market. 
Realestate.com.au data reveals March and May were the two most popular months of the year for new property listings in 2011. The site attracted over 7.5 million unique browsers in May last year, the most of any month. 
Myth 2: First-home buyers are being forced out of the market 
More than three-quarters (77%) of first-home buyers in Australia believe they are being forced out of the market, yet realestate.com.au data suggests there are more affordable properties on the market now than last year. In 2011, there were 23,000 more properties at $500,000 or less listed on the site, compared to 2010. 
Today I see many first-home buyers entering the property market on a lower rung, as investors first. While many of the more exclusive suburbs of capital cities are indeed unaffordable to the first-home buyer, considerable affordability can be found in outer suburbs with excellent infrastructure and in larger regional areas which offer diverse employment opportunities and an excellent lifestyle. 
Myth 3: Property prices are overvalued 
Although 61% of Australians believe property prices are currently overvalued, this misconception has been perpetuated by sensational headlines that consider affordability only in relation to yearly household income – painting a largely inaccurate picture. 
We are at a time when housing is the most affordable it has been for a decade. From a peak of 34% of the average household income in 2010, average mortgage payments on the median-priced home have declined to 32% and are expected to fall beneath the long-term average of 30% by early next year.
Myth 4: Low auction clearance rates mean houses aren’t selling 
While almost three-quarters (74%) of Australians believe low auction clearance rates indicate houses aren’t selling. But the connection that is placed on clearance rates and market health is misleading. When comparing January 2011 to January 2012, there was a slight increase on days on market across the country. Numbers from RP Data indicate houses are selling, they are just taking longer. In New South Wales, days on market increased by nine days year-on-year, while days on market in Victoria and West Australia increased by 22 days. 
These days, buyers are much more educated and far keener negotiators. In my experience, auctions merely provide a backdrop against which interested buyers can gauge true market value and later negotiate privately for a sale. Few will commit at auction, yet many who attend later use what they witness as a suitable benchmark upon which to carry out successful, private negotiations.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. 
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Four property myths that are keeping would-be buyers out of the market: Margaret Lomas

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In a recent article entitled <a href="https://www.propertyobserver.com.au/residential/how-to-keep-your-valuables-safe-when-you-open-your-home-for-inspection/2012031853884" target="_blank">“How to keep your valuables safe when you open your home for inspection”</a> I covered the issue of risk in the ongoing and endless debate about whether a property is best shown to prospective buyers through open or private inspection.
There was a great response to this article (always a pleasure for authors), which included comments from real estate agents, buyers, sellers, landlords and tenants alike.
Some commented on the need for separate theft insurance cover at open home inspections (and who should pay for it), some on the security issue, and others about the need for transparency by all concerned,
But having distilled the excellent feedback from the article (like enjoying an aromatic cup of tea and then musing about what is left over), the crux of the debate inevitably came back to the old question of, “What is the best method of showing your home?”
Personally I was trying to avoid a hot potato debate on this subject for the simple reasons that it is never-ending and I am supposed to be doing better things.
Here is my personal opinion. If I was selling my own home today there are some rational arguments that make the decision clear to me:
<ul>
<li>Why would I invite multiple strangers into my home if there is a risk of theft involved?</li>
<li>Why allow myself and my family to feel that our privacy has been invaded?</li>
<li>As the seller I prefer to show my property at times that suit me and not my real estate agent.</li>
<li>My mother-in-law, bless her soul, (who I agree is an expert on multifarious issues and does read my weekly column) pointed out the deal-breaker.</li>
</ul>
She argues that only about two out of 10 viewers who show up at open inspections are genuine buyers. The rest are either neighbours or tyre-kickers whose favourite hobby at the weekend is viewing other people’s properties. This is bad news for the seller and for agents, as they are time-wasters. On the other hand the ratio for private inspections is much more in the seller’s favour, given all are genuine.
It’s hard to argue with that kind of logic.
I spent many years as an agent opening hundreds of homes for property sellers. It worked for me at the time, but maybe times have changed and I have become wiser.
And real estate agents argue that they need to “get maximum exposure and as many prospective buyers through the property as possible” at open inspections.
But the reality for agents is that controlling 10 or 20 groups at an open inspection is like herding cats. And that is not to mention the nightmare of trying to follow up on them all to find out who is a genuine buyer or not.
One of my favourite books is Mark Twain’s Huckleberry Finn. There is a passage in it that I loosely quote: “When I was 14 I thought my father was an ignorant fool. But when I reached the age of 21 I couldn’t believe how much he had learned in seven years.”
Enjoy your cuppa and think on the above points when you read those tea-leaves!
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
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Why risk your home’s security at an open home when you can open it privately to genuine buyers?

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Pop-up shops helped plug rental gaps in 2011 as Melbourne experienced historically low retail vacancy rates in 2011, according to a report by CBRE.
Melbourne’s retail vacancies hit record lows as short-term spontaneous shops filled vacancies.
Pop-up shops are shops that exist for just a short period of time, usually weeks or months.
Vacancies across Melbourne’s top 10 retail strips fell to 3.5% over the second half of 2011, found CBRE’S Melbourne Retail MarketView.
Bridge Road experienced the greatest drop in vacancies, falling to 2.7% after the leasing of 10 shops, four of which were tenanted by pop-up stores such as Spring Clean Shop, run by the Brazillian Melko boutique.
Pop-up stores also appeared on Acland Street and Chapel Street in the second half of the year, helping to drive down vacancies in both precincts.
They give the retailer the opportunity to test the waters without the overhead of a longer-term lease and give landlords the opportunity to fill a gap in vacancy.
“The benefit for retailers is they can trade in an established shopping precinct for a low upfront cost while testing the market or clearing excess stock,” says CBRE associate director of retail services Max Cookes.
“At the same time landlords benefit by avoiding vacancy while letting tenants try before they buy or while waiting for the right long-term lease deal or concept. The concept has also be embraced by the likes of Celine Victoria, which pops up in the Melbourne CBD in the lead-up to Spring Carnival to sell its sought-after range of hats and fascinators.”
The report finds pop-ups have enjoyed increasing popularity as retailers and landlords focus on new marketing and brand initiatives in a challenging retail landscape.
Cookes says the concept is targeted towards the youth market, as young people like the spontaneous nature of a retail “event”.
Retail analysts have dubbed the shoppers who flock to pop-up shops as “transumers”.
The report looked at the Melbourne shopping strips of Acland Street, St Kilda; Bridge Road, Richmond; Burke Road, Camberwell; Chapel Street, South Yarra; Church Street, Brighton; Clarendon Street, South Melbourne; Fitzroy Street, St Kilda; Glenferrie road, Hawthorn; Glenferrie Road, Malvern; Puckle Street, South Yarra and Toorak Road, South Yarra.
The occurance isn't new as Ksubi set up its pop-up store - picture from the website, record/preserve/share - back in late 2008.
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Pop-up shops on the rise as Melbourne retail vacancy rate falls: CBRE

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Anyone predicting a much lower 3.5% RBA cash rate by June this year is being frustrated by the notoriously fickle financial markets (and a purportedly error-prone RBA), which, as I anticipated here, have concluded that their late-2011 assumption of up to six further rate cuts was absurd.
The markets have scaled this back strikingly to merely one cut by June. And all the economists who thought we’d get more cuts in the first quarter (following the RBA’s sudden turn-around) have been compelled to shift back the next RBA move to May at the earliest, with some abandoning their calls for cuts altogether.
As I've said for a while now, it is not inconceivable that the next move in rates is actually up, not down, although the probabilities associated with a cut in May remain very meaningful, given the weak economic growth and labour market data combined with middling signals out of China (see more below).
Glenn Stevens recently offered up some unsolicited advice to economists: “There are two rules of forecasting. The first rule is: don't! Second rule is: if you do forecast, never forecast exchange rates because that is easily, without question, the most poorly forecast variable in economics.”
Economists feel compelled to supply us with long-term forecasts, and almost never explain the true uncertainty around these numbers (an issue I’ve complained about for years). History would suggest that any forecast longer than six months is likely to be worthless (see Steve Keen’s track-record <a href="https://christopherjoye.blogspot.com.au/2011/12/debunking-steve-keens-predictions">here</a>). This low conviction is evident in the ever-changing prognostications of local analysts over the last year or two, who have oscillated from hikes galore to no hikes to lots of cuts and now possibly no more cuts.
The vacillation is understandable: it has been awfully hard to "hold the line" with your view of the Aussie and global economies amidst the highly turbulent and frequently conflicting daily information flows coming out of Asia, Europe and North America.
Right now I would personally put a low probability on a cut in April (because of the dramatic drop in bank funding costs over recent weeks and an upward surge in global sentiment), and I think it is probably a coin toss in May.
The RBA's May decision will be heavily influenced by: (1) the first-quarter inflation results, which we get in late April; (2) what banks independently do with their lending rates in the meantime; and (3) the currency movements, and whether our trade-weighted exchange rate looks to have shifted materially downwards (at the time of writing the Aussie dollar is at 103.97 US¢).
A big move down in the currency will afford its own unique form of economic accommodation, while jangling the nerves of the inflation hawks inside the RBA.
On the banks, it is getting increasingly hard to justify further margin expansion given funding costs are falling quite sharply: CBA's excellent AAA-rated covered bond (disclosure: I was an investor) was issued in January at an enormously high margin of 1.75% over the bank bill swap rate, and is now trading at around 1.15% over (i.e., a 60-basis-point decline, or a rise in the actual price of this bond). This has given the buyers of covered bonds terrific capital gains, which show little sign of faltering. ANZ’s latest covered bond issue priced at a margin of just 0.95% over the bank bill swap rate.
One way or another, the local rate debate should furnish us with entertainment, especially in the context of my bet with ALP economist Stephen Koukoulas about what will happen by June. Late last year I was confident (as one can be) that the cash rate would remain above 3.5% while the gloomy Koukie was certain it would crash down to this level or lower. While I proposed that the loser do a "nudie run" around Martin Place, Koukoulas wisely rejected this condition.
One of my long-held expectations – that US bond yields would eventually rise in response to better-than-expected growth and inflation pressures stoked by money-manufacturing central banks – does seem to be slowly coming to fruition. In this respect, UBS argues:
"The jump in US Treasury yields this week marks a secular turning point for bond markets. We believe a long-term bear market has commenced. The source of the sell-off is clear – an improved and more durable global economic recovery, particularly in the US… There are three main reasons for a bear market: (1) a sustainable recovery in the US has taken root, (2) Chinese and overall emerging economy growth will be just fine, and (3) the eurozone recession poses fewer risks to the rest of the world economy. "
Traditional fixed-income managers who invest in fixed-rate bonds (and are "long duration") will likely suffer in this environment (rising yields mean falling prices). Last year, they knocked the ball out of the park. An investor in long-term Aussie government bonds captured a total return of around 30% (including capital gains), while UBS’s Australian Composite Bond Index was up over 11%. In contrast, Aussie shares slumped another 15%.
This year more conservative fund managers that are long interest rates, or short “duration” via investments in floating-rate bonds, may outperform. It should also be a reasonable year for Aussie shares. I turned bullish on domestic equities for the first time since 2007 when the RBA commenced cutting rates. I would be even more bullish on equities (and house prices) if the flock of doves on the RBA’s board prevail in “rolling” the staff – as Graham Kraehe <a target="_blank" href="https://www.propertyobserver.com.au/economy/cash-rate-is-priced-to-perfection-christopher-joye/2012030553687">sensationally revealed they’ve done in the past</a> – and forcing rates lower again.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
 
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Oscillating rates debate with hip pockets and reputations at stake: Christopher Joye

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The A-REITs sector will continue to consolidate and privatise unless stock prices rise to reflect the value of the assets they hold, listed property trust executives have warned.
Commonwealth Property Office fund manager Charles Moore says that if trusts continue to trade at a discount to their net tangible asset there will likely be a “slow burn to privatisation” as well as “consolidation in the A-REIT sector, where scale and liquidity, alongside performance, will play a more important role in maintaining relevance”.
Moore was speaking at the Australian Financial Review Commercial Property Conference this week following remarks by Investa chairman and chief executive Scott MacDonald that if stocks continued to trade at a discount “they will all get taken out and you will lose your A-REIT industry”.
Their comments follow the recent decision by shareholders of Charter Hall Office REIT to sell the company to a consortium of institutional investors from Singapore and Canadia. It will be delisted from the ASX in mid-April should all conditions of the agreement be met.
Goldman Sachs is forecasting a 2012 calendar year capital return for the REIT sector of 15.5%, a yield of 6.87% and a total return of 22.4%.
For the year to date (to March 22) the S&amp;P/ASX 200 A-REIT Sector is up just over 6% tracking below that of the benchmark S&amp;P/ASX 200, which is up 6.8%.
Moore has defended the asset sell-off initiated by many A-REITS since the collapse of Lehman Brothers in 2008 as well as implementing strategic reforms, calling these steps the “building blocks” for a recovery.
He says an improvement in returns generated by A-REITS should provide the incentive for retail investors to return to the sector after they abandoned it following the GFC, resulting in a collapse in values.
Also speaking at the same conference Carmel Hourigan, Lend Lease’s managing director of investment management in Australia, said A-REITS continued to be punished for the sins of the past.
She also says unlisted property trusts are again in favour with investors at the same time as super funds look to set up their own in-house property trusts.
However, she says A-REITs offer better long-term growth prospects for investors.
 
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A-REITs facing ‘slow burn to privatisation’ unless stock prices rise: Charles Moore

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Offshore investors remain keen on the Australian hotel market even as domestic institutional investors continue their exodus from the sector, according to Colliers research.
Singapore’s Ascendas entered the Australian market for the first time, but local companies Commonwealth Property and Mirvac are selling off their hotel assets.
“Strong demand from overseas investors is expected to continue in 2012, despite the strong Australian dollar,” says Colliers director of research Nora Farren.
“Offshore investors still see value in Australian assets and view the market, particularly those assets with exposure to business travellers, as safe, long-term investments.”
The hotel sector gave the greatest return of all commercial assets for 2011, showing a return of 17.8%. Office, retail and industrial assets all showed returns of around 10%.
The strong returns were driven by a lack of new supply and a rising corporate travel market.
CBD hotels enjoyed strong capital returns of 9.3% during 2011 driven by increasing occupancies and room rates.
Of the $1 billion of sales identified by Colliers, the biggest transaction was the $310 million sale of the Mirvac hotel portfolio to an Asian consortium.
There were $1.25 billion of hotel sales in 2010.
The Mirvac acquisition includes Mirvac Hotels and Resorts, a management company of 48 hotels (including two owned hotels) representing 6,100 rooms as well as a stake in the Mirvac Wholesale Hotel Fund, which owns seven of the hotel assets.
The Perth hotel market is likely to continue to outperform other domestic locations in the near-term, buoyed the strongest growth in revenue per available room (RevPAR) at 18% and healthy investment and construction activity.
Australia’s average RevPar growth was 5%, with Adelaide and Gold Coast both recording decreases.
Across Australia, the average room rate increased by 4.8%, with Perth up 9%.
“Asian buyers are showing a keen interest in the Perth market, seeking exposure to the city as it benefits from the mining boom,” writes Farren.
“Construction activity in the Perth hotel sector is expected to gather pace, with a hotel to be included in the Perth Waterfront project, and the expansion of the Crown Perth casino to potentially include a five-star hotel and entertainment complex.”
The number of Chinese visitors arriving each year is increasing 12%, according to the ABS, and they will contribute one-third of the growth in Australia’s tourism export earnings until 2020, says Colliers. In 2011 there were 60% more overseas trips by Australians than five years previous.
 
 
 
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Offshore investors see potential in Australian hotels as local companies exit sector: Colliers

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While capital growth in Sydney units slowed down in the second half of 2011, it remains the only market segment to record positive growth during the whole year.
As a result commentators are fairly bullish and see room for more growth in 2012. Property valuers at WBP see more growth potential for affordably priced existing units (nine o’clock) than new unit stock (between 10 o’clock and 12 o’clock).
“New unit stock is fully valued with premium prices being achieved due to stock limitations and ‘non-market-related forces’,” says WBP.
“These include first-home buyer and investor new housing stimulus benefits under state government housing policy designed to encourage provision of new housing stock. History indicates markets can decline when stimulus-fuelled markets correct and properties are exposed to the market under normal market conditions without the hype.”
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/clocksydneyunits.jpg"><img src="/images/stories/clocksydneyunitsthumb.jpg"></a>
Time: Nine o'clock
However, WBP expects well-located affordable lifestyle units will continue to attract demand where the opportunity to buy a house is no longer feasible.
Metropole’s Michael Yardney says there is still strong demand from owner-occupiers for units but warns of a shortage of available “good” stock relative to demand, especially in the inner west and eastern suburbs.
“There are a lot of secondary properties for sale, and the market is not buying these,” he says.
“Strong rental demand, a shortage of rental properties, tightening vacancies and rising rents means investors will also vie for the same apartments as owner-occupiers, underpinning prices. The market for well-located apartments is likely to remain strong throughout the year, and this will be helped by falling interest rates.”
Century 21 chairman and owner Charles Tarbey also sees potential for price growth in Sydney houses and units.
“Sydney never reached the property price peak of the other states.  Stock continues to come onto the market but has steadied compared to this time last year,” says Tarbey.
Population: 4.57 million
Median unit price: $435,000 
Unit price growth in February 2012: 0.3% 
Annual unit price growth to December 2011: + 0.9% 
Annual unit price growth to July 2011: +2.6% 
Rental yield: 5% 
To find out where your capital city's house or unit market is on the property clock, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-autumn-2012-property-clock">download our free eBook.</a>
Property Observer also tracks <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-house-prices-at-530-in-their-cycle-and-still-falling-experts/2012032253973">Sydney houses on the property clock</a>.
 
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Sydney unit prices at nine o’clock in their cycle and rising: Experts

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According to RP Data, the decline in Sydney house prices sped up slightly in the second half of 2011, but the overall decline has been modest compared with the likes of Brisbane and Melbourne.
Michael Yardney, found of property advisory company Metropole, places Sydney’s housing market at between three and five o’clock – meaning it still has a way to go before it bottoms out.
“Different segments of the market are at different stages of the property cycle. The top end of the market is at three o’clock with an oversupply of property relative to the reduced demand,” he says.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/clocksydneyhouse.jpg"><img src="/images/stories/clocksydneyhousethumb.jpg"></a>
Time: 5.30
“There is more demand for properties in the middle and end of the market – but it is still weak – at five o’clock.  Overall, prices are likely to rise between 3% and 5% this year.”
SQM Research managing director Louis Christopher says Sydney is close to bottoming out.
“Stock levels are falling away fairly quickly. Clearance rates have been stronger than expected, and vacancies are super tight, with rents growing at 6% to 7% compounded annually,” he says.
According to Christopher, Sydney is already outperforming the rest of Australia in a downturn. He says the investor hotspots are the outer suburbs and western Sydney.
Property valuation firm WBP puts Sydney’s prestige housing market at five o’clock (not yet at the bottom of the cycle), but the affordable housing market at eleven o’clock (rising).
According to WBP, prestige housing has the potential to fall further should “GFC 2” happen, forcing asset sales in a lacklustre market.
“Capital growth in this segment has been stagnant for some time. Significant vendor discounting is required to achieve sales and avoid lengthy unsuccessful marketing periods,” says the valuer.
WBP says cheaper, existing housing well serviced by established infrastructure remains in demand.
Population: 4.57 million
Median house price: $516,000
House price growth in February 2012: 1%
Annual house price growth to December 2011: -0.9%
Annual house price growth to July 2011: -0.5%
Rental yield: 4.3% (Source: RP Data)
To find out where your capital city's house or unit market is on the property clock, <a href="http://propertyobserver.com.au/ebooks/free-ebook-australias-autumn-2012-property-clock" target="_blank">download our free eBook.</a>
Property Observer also tracks <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-unit-prices-at-nine-oclock-in-their-cycle-and-rising-experts/2012032253974" style="font-size: 14px; text-align: left;">Sydney units on the property clock</a>.
 
 
 
 
 
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Sydney house prices at 5.30 in their cycle and still falling: Experts

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Around budget time each year, and whenever tax reform is discussed, property investors shudder at the thought of the abolition of negative gearing. 
At the federal government tax summit last year, Grattan Institute economist Saul Eslake called for changes to negative gearing, arguing it provided $4.5 billion each year to affluent Australians and reduced the supply of affordable housing. 
“We've got a personal income tax system that rewards accumulation of wealth through borrowing and speculating and penalises the accumulation of wealth through working and saving,” he said. 
Not that long ago ANZ Bank's Phil Chronican took aim at negative gearing, claiming the tax break was leading to an unhealthy focus on housing as a means to get rich, while pushing property prices to unaffordable levels. 
Opponents of negative gearing appeal to the frustration of would-be home owners, suggesting they have been locked out of the market by greedy, tax-driven property investors who receive billions of dollars of tax breaks that push up property prices. It is sometimes argued that it would be better to use revenue forgone through negative gearing to build more “affordable” homes.
 
A quick primer:
A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and depreciation – exceed the income it produces. 
Since the costs of producing an income are generally deductible against the taxpayer’s other income, property investors can effectively offset some of the interest expense against their wages. This has made some argue that other, less fortunate taxpayers help these property investors meet their costs. 
Why would anyone go into a business deal that is expected to make a loss? 
Generally it’s because property investors hope that their income losses will be more than offset by their capital gains when they eventually sell their properties. And in Australia capital gain is not taxed unless you sell your property, and then it is concessionally taxed – again evoking the argument that it favours wealthy landlords. 
Of course negative gearing is more favourable for taxpayers who earn high incomes. 
Imagine an investor had excess interest expenses of $10,000. If he were on a marginal tax rate of 15¢ in the dollar he could use his loss and reduce his tax by $1,500. But a taxpayer in a higher tax bracket, one who pays 30¢ in the dollar tax, could reduce her tax by $3,000. 
So the benefits of negative gearing are greater the more you earn and the higher your tax rate. 
What’s the fuss about?
In our modern society we pay our taxes and expect the government to provide us with certain essential services. These include hospitals, roads, schools, jails, public transport, aged care and public housing. 
In Australia the government often shares the burden of providing these services with private enterprises that can often deliver them more efficiently and cheaply. 
When the government can’t supply enough public hospital beds, privately run hospitals step up to the mark and not only receive tax deductions for their business loans, but also allowances to subsidise them. So do aged-care providers, schools and public transport providers who provide services in tandem with the government. 
Our government also provides public housing, but not enough for all those who can’t afford to buy their own property. While government programs such as the national rental affordability scheme and other social and public housing programs are helpful, it is only the private rental market that can deliver rental accommodation at the rate and scale that is required at present. 
Property investors like you and I save our deposits, buy a property, commit to a loan for 25 or 30 years and provide accommodation for others in our community. 
In return we expect to get a reasonable return on our investment risk, just like other business people do. We know that the rent won’t cover our expenses, but accept that certain tax benefits plus the long-term capital growth will make up for this. 
Sometimes it does, and sometimes it doesn’t. 
Leverage and negative gearing compounds returns in the good times, but multiplies losses when property prices are flat or falling. I know as many people who have lost money in property investment as those who have made money – much like most other small business people. 
If the government takes away my tax concessions, I would have to consider my investment options. To ensure I get a decent return I’d put up my rents if I could, or maybe I’d invest elsewhere to get the best bang for my buck. 
The result would be that rents would rise and tenants would have to fight over the few rental properties left, or the government would have to invest its own money and buy or build properties and enjoy the pleasures of being a landlord. 
Of course the government already provides some public housing, but not enough, leaving the task of providing rental accommodation not only in our capital cities, but also in regional Australia and in the remote mining towns to private investors. These are people like you and me who have chosen to run our own little property investment businesses. 
If we set up a dog wash business or a restaurant, we’d be able to claim a tax deduction for legitimate business expenses including loans to set up our business or purchasing business equipment. 
Why should it be different for property investors who take on a business risk? 
Something for the government to think about.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Property investors are helping the nation, and negative gearing is justified for the service they provide

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The total land value of the City of Canterbury increased 22% from 2008 to 2011, according the NSW Valuer-General Philip Western.
The land value of the 33,188 properties in the city was found to be $16.093 billion in July 2011, up from $13.104 billion in 2008.
Residential land values in the area showed a strong increase over the three years, Western found.
Year-on-year median residential land prices increased 5% to $403,000 in 2011 from $385,000 in 2010.
Commercial land values generally increased moderately, with larger-than-average increases for commercial land on prime retail strips such as Beamish Street and those with mixed-use development potential.
From 2010 to 2011, commercial land prices increased 4% to $368,000 from $354,000.
Industrial land values in Canterbury remained steady of the three years and had a 0.5% increase from 2010 to 2011.
Landowners and rate-paying-lessees received a notice of valuation this month.
The valuations are used to determine rates and land taxes on investment properties.
Typical residential land values were:
<ul>
<li>481 square metres at Adelaide Street, Belmore valued at $375,000 </li>
<li>441 square metres at Amy Street, Campsie valued at $430,000 </li>
<li>563 square metres at Beauchamp Street, Wiley Park valued at $310,000 </li>
<li>780 square metres at Collingwood Avenue, Earlwood valued at $760,000 </li>
<li>500 square metres at Karne Street, Roselands valued at $335,000 </li>
<li>427 square metres at Merrick Avenue, Lakemba valued at $325,000</li>
</ul>
Typical commercial land values were:
<ul>
<li>233 square metres at Beamish Street, Campsie valued at $1,300,000 </li>
<li>259 square metres at Burwood Road, Belmore valued at $360,000 </li>
<li>511 square metres at Clissold Parade, Campsie valued at $580,000 </li>
<li>304 square metres at Haldon Street, Lakemba valued at $550,000 </li>
<li>259 square metres at Homer Street, Earlwood valued at $475,000 </li>
<li>234 square metres at The Boulevarde , Punchbowl valued at $380,000</li>
</ul>
Typical industrial land values were:
<ul>
<li>6,088 square metres at Garema Circuit, Kingsgrove valued at $2,050,000 </li>
<li>1,500 square metres at Garema Circuit, Kingsgrove valued at $830,000 </li>
<li>626 square metres at Leedham Place, Riverwood valued at $455,000</li>
</ul>
 
 
<ul></ul>
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