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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1. Plan and research your investment
Buying an investment property is a significant outlay, and making the time to plan and research is essential to achieving a good result. Start by creating a long-term plan with a clear and realistic vision of what you would like to achieve through your investment. This should include working out a budget and considering whether you want your investment to deliver a high rental yield or strong capital growth.
 2. Location is king
Look for properties in established areas in areas no more than a 10- to 12-kilometre radius of the CBD that have a history of strong long-term capital growth. The location should offer good transport links, schools and recreational space. Avoid busy roads, property within earshot of train or tramlines and areas earmarked for significant development.
 3. Seek scarcity and desirable features
A limited supply or unique feature will ensure strong rental demand and deliver healthy capital growth. Period styles such as art deco traditionally outperform newer properties. Desirable features such as balconies and car spaces can also add significant value to your investment.
 4. Don’t over capitalise
Buying within the median price of an area and being smart about renovations will ensure the property will be both easy to rent out and sell when the time comes.
 5. Enlist the help of experts: buyers’ advocate, financial planner, property manager
Enlisting the services of an expert at the vital stages of your purchase and the ongoing management of the property could pay dividends. Engaging an experienced buyers’ advocate takes the guesswork out of buying an investment property. A buyers’ advocate will help eliminate common purchasing mistakes, identify “investment-grade” properties and negotiate favourable terms on your behalf. Seek the advice of a financial planner to develop a framework around your assets and liabilities, select the best loan and use negative gearing as a tax offset. Invest in the right property manager. Property management can make or break your investment – the last thing you want is a rundown property or unhappy tenants. Look for a committed property manager who cares about your investment, ensures the property has reliable tenants and that provides regular rental statements so you can measure your return.
 
Cameron Deal is founder of Melbourne buyer advocate and property management agency Infolio. He will be hosting a free property seminar <a href="https://www.infolio.com.au/blog/?p=945">“Buy property like a professional” on March 26</a>.
 
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Five tips for buying an investment property

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The Reserve Bank has poured cold water on claims by the major banks that their overall funding costs are increasing.
“Our estimate is that the absolute level of banks' funding costs fell from mid-2011 to February 2012, but by less than the reduction in the cash rate,” said RBA assistant governor Guy Debelle in a speech in Sydney today.
He acknowledged that there were “particularly pronounced increases in the cost of term deposits and long-term wholesale debt relative to the cash rate as financial market conditions deteriorated in late 2011”.
But he said that while the relative cost of new long-term wholesale funds was currently higher than that of maturing funds, “this has had only a moderate effect on the major banks' average bond funding costs relative to the cash rate to date”. 
“This reflects the fact that it takes at least 3 to 4 years for the major banks' existing stock of bond funding to be rolled over,” he said.
In addition, he presented a graph showing current wholesale funding costs are below at the height of the GFC.
<img src="/images/stories/rbamarch22.jpg">
Debelle said its estimates of banks’ funding costs are based on a “wide range of sources” including “data reported by financial institutions to APRA and banks' regular profit statements to the market to track the composition of funding”.
“We monitor the prices offered on various forms of deposit accounts, and maintain a comprehensive database of wholesale funding, which is updated issue by issue.
“We supplement all of this with extensive consultations with financial institutions, big and small,” he said.
However, he said there remained “a degree of imprecision” around RBA estimates of bank funding adding that its estimates “are for the system as a whole, not for any particular financial institution”. 
Debelle did acknowledge that  while cost of funding is the most important factor that influences the lending rates banks set, “there are a number of other factors that affect pricing including: the credit risk associated with the various types of loans, the liquidity risk involved in funding long-term assets with short-term liabilities, and choices about growth strategies in different markets”. 
Following its independent decision to leave its standard variable mortgage rate on hold at 7.36% in March, ANZ Australia CEO Philip Chronican said funding costs remained in an “upward trend” that was “likely to continue as new funding is still coming on at a wider spread to the cash rate than the funding it is replacing”. 
Also in March Westpac CEO Gail Kelly warned borrowers to expect more frequent increases in interest rates because of more expensive funding costs.
 
 
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RBA says bank funding costs falling but by less than rate cuts

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First-home buyers are more confident about entering the property market but around one third of first-home buyers still believe they need to save a 20% deposit to acquire a mortgage, according to the March Genworth Homebuyer Confidence Index. 
First-home buyer confidence was up by 1.5% to 99, levels similar to the national confidence level before the GFC, while with the proportion of potential first-home buyers who said they were unable to save for a deposit fell from 45% to 30% between September 2011 and March 2012. 
House prices are seen as less of a hurdle for potential first-home buyers than other factors – only 7% of respondents said the area they wished to buy in was too expensive, down from 21% in September 2011. 
However, researcher Alan Shields says it is worrying that more than a third of potential first-home buyers still plan to save at least a 20% deposit. 
This Shields says is not necessary because lenders are offering loans with loan-to-valuation ratios of up to 95% provided borrowers take out lenders mortgage insurance (LMI). 
“They have been saving for four years with a false goal in mind,” Shields says. 
The March 2012 survey found that 29% of potential first-home buyers are comfortable borrowing at LVRs of over 80% up from 20% in September 2011. 
They are also more optimistic about meeting mortgage repayments than the average home buyer — 84% of those surveyed do not expect to have difficulty meeting repayments in the coming year, unchanged from September 2011, compared with the 78% of average home buyers. 
However, the proportion of recent first-home buyers who have experienced difficulty meeting their repayments has risen from 12% in September 2011 to 14% in March 2012, though still well below the average of 22% for all mortgage holders surveyed. 
The survey also found that around one in 10 potential first-home buyers surveyed have not yet started saving for a deposit. 
Overall home buyer sentiment improved over the six-month period from the last report in September to the March 2012 report. 
Home buyer confidence rose by 2.1% from September 2011 to 96.3 — the same level as March 2011 — with the key factors driving this being the decrease in mortgage stress and Australians’ increasing comfort with debt, due to the recent reduction in RBA cash rates. 
Nearly four in 10 (39%) respondents believe that now is a good time to buy a home —up from 36% in September 2011. 
The biggest improvement in first-home buyer sentiment occurred in WA, with the index rebounding 11.2% from a low of 90.5 in September 2011 to 100.6 in March 2012. There was also a slight increase in NSW, up 1.3% from 95.5 to 96.7. 
“We have seen a recent stabilisation of property prices in Western Australia which is likely to have boosted confidence. Flatter property prices combined with stable unemployment levels will have driven the spike,” says Ellie Comerford, president and chief executive of Genworth.
Queensland confidence decreased by 2.2%, and is likely driven by a continued decrease in property values, particularly in the Gold Coast and Sunshine Coast regions. 
Surveyed Western Australian residents are most confident about the property market, with 50% agreeing it is a good time to buy a home, an increase from 47% in September 2011. 
Western Australian residents are also least likely to have experienced difficulty meeting repayments at 16% (compared to 20% of New South Wales residents, 22% of Victorian residents, 24% of South Australian residents and 25% of Queensland residents). Recent stabilisation of property prices in Western Australia could be helping to boost confidence.
 
 
 
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First-home buyer confidence rises but buyers misinformed about deposit requirements: Genworth 

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The trend of rising petrol prices could slow down any recovery in the property market and prompt the Reserve Bank to cut interest rates, according to experts.
Rising petrol prices were a contributing factor in the downturn of the early 2000s.
CommSec is tipping petrol prices to rise by between 2% and 3% over the next fortnight, taking the national average prices above $1.50 a litre for the first time in more than three years. 
This follows the national average retail petrol price rising by 1.3¢ to 147.1¢ a litre last week, according to the Australian Institute of Petroleum. 
Petrol prices have trended upwards since September 2009 as the following graph shows:
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/petrol.gif"><img src="/images/stories/petrolthumb.gif"></a>
 
The last time the petrol price sparked major public concern was in early 2001 when prices went over $1 per litre in some parts of the country following increases to excise duty on fuel and a small GST increase on fuel imposed by the Howard government. 
This resulted in a 10¢ rise in petrol prices overnight. 
At the time economists warned that the higher cost of fuel was having a negative impact on consumer sentiment and dampening the effects of the housing boom underway at the time. 
Figures released by the ABS in 2003 (petrol prices continued to rise to over $1.05 a litre at the time) showed house price growth slowing from more than 20% in 2001 to just 7% growth in the second half of 2002. 
“The only people that benefit when petrol prices go up are the big oil producers,” said Deutsche Bank economist at the time. 
Savanth Sebastian, economist at CommSec, says petrol prices have continued their recent upward trajectory and “unfortunately for motorists there are no signs that conditions are likely to get any better over the next couple of weeks”. 
According to Sebastian, since the start of the year the average monthly household fuel bill has lifted by $8 to just shy of $177, taking more money out the pockets of already conservative consumers. 
“The Reserve Bank will closely assess both rising oil prices and the higher Aussie dollar as both potential serve to slow down spending. The Reserve Bank still has a rate cut on the radar screen, especially if consumers remain cautious to spend,” he says. 
Sebastian says recent predictions of petrol reaching $2 a litre “are clearly overdone”, though he agrees that petrol prices are likely to track higher, although the gains are “likely to be much more circumspect and take place over a longer time period”. 
“More importantly, it is likely that OPEC would increase production targets well before domestic pump prices reach $2 a litre. It is in OPEC’s best interests to ensure that higher oil prices do not pose a threat to the global recovery,” he says. 
Charlie Nelson, managing director of trend-spotting firm Foreseechange, says the increase in petrol prices could change location preferences of home buyers.
 
"We have seen people moving to tree change and sea change locations, but there could be train change for people looking for something close to public transport," he says.
Years of rising petrol prices have already changed home buying behaviour, according to Robert Mellor, director of economic researchers BIS Shrapnel. 
Mellor says houses and apartments closed to railway station are more likely to have price spikes than those further away from public transport.
KPMG demographer Bernard Salt agrees and says the main driver of property values in the next decade will be access to a train station.
According to CommSec, average petrol prices across states over the week ending March 18) were: Sydney (unchanged at 144.6¢ per litre), Melbourne (up 0.9¢ to 143.9 ¢/l), Brisbane (down 2.¢ to 147.8 ¢/l), Adelaide (up 9.2¢148.4 ¢/l), Perth (up 1.2¢ to 147.4 ¢/l), Darwin (up 0.7¢ to 156.5 ¢/l), Canberra (up 0.9¢ to 147.7 ¢/l) and Hobart (up 0.9¢ to 154.1 ¢/l).
 
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Rising petrol prices could cause house prices to fall but could prompt earlier rate cut

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Prime CBD office rents are expected to grow at a compound annual average of 3.8% per annum across Australia from 2012 to 2016, with the Perth CBD expected to be the strongest performer, according to the latest office market forecasts from CBRE. 
The other positive developments over the first quarter of 2012 were stronger sales turnover, an increase in net absorption and an increase in white-collar employment. 
Office rents in the Perth CBD are expected to grow by 4.5% over the four-year period, however all of the major CBD markets are expected to register rental growth at or above CPI during this period. 
Buoyed by mining investment, Perth currently has the highest prime CBD rents in Australia (<a href="https://www.propertyobserver.com.au/office/perth-seventh-most-expensive-cbd-office-market-in-the-world-sydney-falls-to-10th-knight-frank/2012031353813" target="_blank">and seventh highest in the world</a>), charging $716 per square metre, and also the tightest rental market, with a vacancy rate of just 3.3%, according to the CBRE report.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/cbremarch22.gif"><img src="/images/stories/cbremarch22thumb.gif"></a>
CBRE regional director for office services James Patterson says the short-term outlook remains relatively flat in most markets except Perth, given that tenants are still cautious about the outlook for European financial markets. 
“The expectation is that Europe will avoid a major recession, and the effect on the global economy will be minor,” he says. 
“If this is the case, more bullish rental growth is expected from 2013 onwards, with fundamentals in most markets looking strong.” 
According to Patterson, it will very much be a two-speed recovery, with resources being a key driver in the continued expansion of the Queensland and Western Australian economies – and by extension the Brisbane and Perth office markets. 
“This is also expected to give South Australia a much-needed boost over the medium term as work begins on the Olympic Dam mining project,” he says. 
“Conversely, slow revenue growth in the finance sector and professional services and limited activity in the government sector is likely to curtail short term growth in NSW, Victoria and the ACT. In addition, caution in the business sector is continuing to impact on the length of time taken for lease deals to be finalised.” 
This week BIS Shrapnel economist Frank Gelber warned that Melbourne needed to stop building more offices. 
“The Melbourne office market is not about to take off. It would be a worry if too many projects took off in Melbourne,” Gelber said. 
However, the overall office outlook is good, with BIS Shrapnel expecting a weak supply pipeline and rising employment growth to put pressure on the existing office space stock. 
“Vacancy rates will continue to fall and rental growth will begin to accelerate, especially for A-grade stock. As a result office commencements are forecast to lift a further 11% to $4.95 billion in 2012-13. Financing conditions are likely to remain tough, and pre-commitments will continue to drive the upturn,” says BIS Shrapnel in its latest forecasts. 
CBRE senior manager for global research and consulting Luke Nixon expects supply and demand to remain largely in balance over the short term, keeping vacancy rates stable and acting as a stimulus for positive rental growth over the next five years. 
The balanced state of the market was highlighted in the second half of last year when nearly 150,000 square metres of office stock was withdrawn from the market, but only 140,000 square metres of new or refurbished stock was added to Australia’s major office markets (the Sydney CBD, Melbourne CBD, Brisbane CBD, Perth CBD, Adelaide Core and Canberra’s Civic precinct) the first time in seven years that space has contracted in the major office markets. 
“As vacant A-grade space continues to be absorbed there is expected to be growing demand from tenants for an increased development pipeline of high-quality space,” he says 
“If the CBD markets cannot accommodate this demand, fringe markets are likely to be the beneficiaries.” 
According to the CBRE report, prime rental growth in Melbourne slowed in the fourth quarter of 2011 to just 0.7% following growth of 1.2% and 2.4% in the previous quarters. For the year, total rental growth was 5%, the strongest since 2008. 
In Sydney, total stock grew by 21,715 square metres over the period, while demand remained constrained, causing the CBD vacancy rate to grow slightly in the second half of last year. 
Brisbane CBD was the only other city with an increase in total stock, however strong tenant demand translated to a reduction in the city vacancy rate to 6.2%. 
The CBRE report also highlights that the office investment market is expected to remain strong through 2012, driven by foreign investors, unlisted funds and superannuation groups, with private investors active at the lower end. 
Nixon expects A-REITs to continue to be net vendors of CBD office property until there was a significant increase in stock market valuations.
 
 
 
 
 
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Perth to lead growth in CBD office rents to 2016, but Melbourne risks oversupply: CBRE and BIS Shrapnel

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At 6pm on Saturday, the James clearance rate for $1 million-plus Melbourne properties was 57% from the 23 auctions we attended. That figure represented a dip down from last week, but the stock quality was not up to what we have been seeing lately.
The Weekly Review Bidderman, our demand indicator, was 1.3 bidders per auction. One in three homes were ducks (no-bidder auctions) – a substantial change from two weeks ago. However, again this may have been simply a reflection of this weekend’s overall lower quality.
The market away from auctions is not as quiet as these stats may indicate. As a company we have bought six homes in the last fortnight (Kew, Brighton, Glen Iris, Black Rock, Balwyn and St Kilda), and the overall $3 million-plus market has had a number of substantial sales.
Next weekend is a solid one, stock-wise, with double the number of this weekend’s scheduled auctions at around 100. The pre-Easter weekend of March 31 will be our first super Saturday for 2012, with the number of $1 million-plus auctions approaching the magic 150 mark. The hallmark for a "super Saturday" is usually more than 1,000 properties overall.
Many parts of the market are still clearly operating at lower price levels than in previous years. The land only segment is a case in point. For instance, we saw 19 Ebden Black Rock pass in this weekend for $1,525,000 after having changed hands for almost $2 million a few years ago.  This is a good spot. But Black Rock, like Balwyn North and Bentleigh East are fringe suburbs, and fringe suburbs are seeing top-end land prices drop and drop at faster rates than Melbourne’s jewels such as Brighton, Hawthorn and Toorak. This is a normal market cyclical phenomenon where fringe land prices increase more dramatically (percentage wise) in rising markets but also fall at a faster percentage rate in tougher markets.
So despite the uplift in activity in the last month – and there really has been an uplift in activity – the “record price” is still clearly the  exception rather than the norm in early 2012.
 Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
 
 
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March 31 will be Melbourne’s first million-plus super Saturday, but record prices still rare

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There were 822 sales in Perth for the week ending March 21, according to the Real Estate Institute of Western Australia. This is fewer than the 887 last week but still up 24% on the 664 for the same week last year.
<img src="/images/stories/reiwamarch21.gif">
 
 
 
 
 
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Perth sales up 24% on same week last year: REIWA

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We all know that the vacancy rate remains tight.  But few realise just how tight it has become.  Of the 1,600 odd postcodes across Australia with rental properties in them, 475 or 30% have a vacancy rate under 1%.  Seven out of 10 postcodes have a vacancy rate under 2%, and nine out of 10 (87%) postcodes have fewer than three out of every 100 rental properties vacant.
The vacancy rate across the whole country – except for Victoria– is tight, with an average vacancy rate of 1.7%.  In Victoria, the vacancy rate is close to 3%.
It has been this way for some time, but I suspect we are reaching some tipping point.
Since 2008 the rental component of CPI has been rising faster than the average inflation rate.  This is the first time this has consistently happened since the ABS separated out a rental housing inflation in the early 1970s.
According to the ABS CPI rental index, weekly rents have been rising by 5.7% per annum across Australia since mid-2008.  Brisbane has enjoyed a 6% annual gain, compared to, say, Melbourne’s 4.8% yearly increase.
Gross rental yields, as a result, have increased across the country, with traditional suburban detached housing approaching 4.5% and attached products (small-lot housing, too) often exceeding 5% these days.
Rental yields across many parts of Queensland – reflecting the state’s undersupply of new housing – now exceed 6% gross.  Hot rental spots in Queensland include Roma, Emerald, Calliope, Gladstone, Toowoomba, Mackay and Brisbane’s inner-western suburbs.  Even the southern part of the Sunshine Coast and northern suburbs of the Gold Coast have seen weekly rents lift higher than the statewide average (6% per annum) in more recent times.
There are 440,000 residential rental properties across Queensland, which is up 7% or by 31,000 investment properties over the past 12 months.  After the GFC, and with it all the scaremongering, too many residential investors tried to sell their investment properties, and to no avail.  The wise among them have now reset their plans and are renting their properties out again; hence the lift in available rental properties.  Yet despite the 31,000 increase in supply, the vacancy rate is falling and rents are rising.
The biggest increase in recent supply has been in those areas – Gladstone, Mackay and around Toowoomba – with the largest increases in weekly rent.
Median weekly rents have risen by 45% over the last 12 months in Gladstone.  They are up about 25% in Emerald; 20% more in Roma; 15% higher in Mackay and up about 10% across Brisbane’s inner west.
While certain geographical areas across Queensland are doing better, rent-wise, the upward trend is consistent across product types, again reflecting the tight overall rental supply.  Weekly rents for one-bedroom apartment stock are up 6% on last year; two-bedroom apartments up 5%; ditto for three-bedder units and three-bedroom detached houses.  Larger houses have enjoyed a 6% lift in weekly rents, and Queensland townhouses are up 4% on last year.
About 40% of Queensland’s rental stock is now apartments; half are detached dwellings and 10% are townhouses.
I have been saying in my market overview presentations that investors should treat capital growth as a bonus.  Income is certainty.  The best residential investments, for mine, will be those with the most secure rental returns.
So how do you get a better rental return?  Of course you should buy well.  Investment property in a key location – supported by infrastructure, close to a growing workforce, designed to be shared (think beds and baths), with adequate storage/parking and is easy to maintain – usually rents out well and enjoys consistent rental growth.
And for those who already own an investment property, the best thing you can do to improve your rental return is try a new property manager.  More on this in a moment.
Rising rents have not yet translated to price growth.  But they will.  Once we get over our collective mopes, investors will start buying again and this, in turn, should lift prices.  We anticipate residential prices to rise by between 2% and 4% per annum across Australia over much of this decade.  Property prices in Queensland, Western Australia and across much of Sydney are likely to lift higher than, and maybe twice as fast as, the Australian average.
Traditional property managers are the main bugbear of investors – the chief complaints by investors being lack of communication, lack of action, lack of rental increases and lazy service.  Most companies that manage residential rentals do so as a side business – “it helps pay the rent” as the saying goes – rather than it being the sole focus.
Wise Realty, which started over a decade ago, is one of the largest family-owned property management agencies in south-east Queensland.  Wise Realty is a stand-alone property management company.  I have known Lionel Morris, a director of Wise Realty, for more years than we wish to remember.  The rents that Wise Realty achieves are some of the highest in the industry and their tenant turnaround is second to none.  Wise now has about a thousand properties under management.
Here are some recent statistics for the first three months of 2012.  These apply to 35 new rental listings taken over by Wise.
<ul>
<li>For detached houses, Wise got an average $100 more per week – up 16% – than the previous rental agreement.  The property remained vacant for just four days.</li>
<li>Wise got $60 more per week (an 11% increase) for their new townhouse listings.  Again, the properties in question leased out in four days. For apartments, the average lift was 14% or $65 more per week.  These remained vacant for just three days.</li>
<li>By way of comparison, the average increase in weekly rents in the same area over the last 12 months was just 5%.  The average time to find a new tenant was 14 days.</li>
</ul>
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
Apartment photograph by Alex Proimos, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
 
 
 
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The best investment properties are those with the best rental returns: Michael Matusik

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The Docklands premises of James Squire Restaurant and Bar has been snapped up by private investors as a new report highlights a growing appetite for restaurants and cafes with established tenants in metropolitan Melbourne. 
The two-level, 950-square-metre property at 1 Pearl River Road within Docklands’ Victoria Harbour precinct was bought by a private investor for $4.3 million on a 9.3% yield following an expressions-of-interest campaign directed by Nick Peden and Clinton Baxter from Savills Australia. 
The sale price equates to $4,500 per square metre and “represented a strong price for ground and first floor strata retail,” Peden says. 
James Squire Restaurant and Bar pays a current net rental of $400,000 per annum with fixed annual 4% rental growth. 
Peden says the property attracted a great deal of interest from investors “keen to take advantage of the secure lease profile and prime waterfront location”. 
“Properties on the waterfront always attract a good level of interest and with a secure 10-year lease with a 10-year option, commencing July 2011, to a well-established business, it was always going to see a reasonably good result,’’ says Peden. 
“With the Docklands residential population growing rapidly and the precinct maturing in commercial terms, investors have again turned their attention to this remarkably active and evolving location,’’ says Baxter. 
According to the Docklands Authority, the precinct is expected to become home to 17,000 people, a workplace to 40,000, and a destination for 55,000 visitors per day by 2020. 
The sale of the Victoria Harbour restaurant premises comes as a Colliers International notes a pick-up in investor demand for restaurants and cafés with established tenants in Melbourne’s east, about two kilometres from Docklands. 
Colliers International’s Hamish Burgess and Ben Baines report receiving a “flood of enquiries from eager investors” since listing The Palms restaurant at 213-215 Blackburn Road in Mount Waverley.
The recently renovated 435-square-metre property, which sits on 1,015 square metres and has a 10-year lease, is attracting interest is in the vicinity of $1.9 million to $2 million. 
Burgess says interest in the property, which will go under the hammer on March 29, confirms the recent trend towards restaurants and cafes as investments.
“There has been a noticeable trend evolving lately whereby sub-$5 million property investors are searching for restaurant and café investment properties with secure, long-term tenancies in metropolitan Melbourne,” he says. 
According to Burgess investors are focusing on restaurants and cafés with high-profile, well-established tenants. 
“This represents increased security, as operators are continuing to spend significant amounts on fit-outs and don’t want to lose clientele by moving location,” he says. 
According to Baines, recent sales of restaurants in Melbourne’s east indicate that investors are willing to pay a premium for this sort of investment. 
Three recent restaurants sales all achieved yields of under 5%:
<ul>
<li> 210 Blackburn Road, Glen Waverley: achieved a yield of 4.6% with Subway as a tenant</li>
<li>313 Stephensons Road, Mount Waverley: achieved a yield of 4.1% with Pizza Hut as a tenant</li>
<li>319 Stephensons Road, Mount Waverley: achieved a yield of 4% with Great Eastern Hakka Restaurant as the tenant</li>
</ul>
 
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Docklands restaurant James Squire sells with 9.3% yield as investor appetite for Melbourne eateries grows 

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First-home buyer demand should continue to pick up in 2012, particularly in NSW and Western Australia, but there will be no recovery in Victoria, according to the latest forecasts from BIS Shrapnel.
“We started to see a pick-up in NSW And Western Australia towards the end of last year, which was emphasised by the expiration of stamp duty exemptions for existing properties,” BIS Shrapnel senior manager Angie Zigomanis said at the March 2012 Building Industry Prospects conference yesterday.
“But it is still weak in Victoria, and one of the reasons why it is still weak is because the state government has tended to keep the first-home buyer incentives fairly elevated, which has pushed forward demand.
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“First-home buyer demand is very important because it creates demand at the bottom of the market for the next group of buyers to trade up.
“It’s that turnover and activity that flows to price growth and also brings more investors into the market.”
Zigomanis says this churning of property created by first-home buyers entering the market won’t be felt as strongly in Victoria.
“In Victoria the weakness in first-home buyer demand is permeating through to the rest of the market,” he said.
According to Zigomanis there are only a “finite number of first-home buyers out there”, and all the incentives do is encourage these buyers to purchase sooner.
“We had the federal government incentives when the GFC hit and then followed by the state government incentives,” he says.
As a consequence of demand being pulled forward, subsequent demand will fall off much more strongly, Zigomanis says, meaning that there will be no recovery in first-home buyer numbers Victoria until the end of 2012 or the start of 2013.
Victoria’s first home bonus and regional bonus, which awarded grants of $13,000 and $6,500 respectively to qualifying first-home buyers, are both set to expire at the end of 2011-12.
However BIS Shrapnel warns “the Victorian government has shown a tendency in the past to extend such grants, and hence it is quite possible they will do so again”. <img src="/images/stories/bismarch213.gif">
Looking at the overall state of residential markets, Melbourne remains one of the weak spots, with vacancies heading up towards the 3% mark, which indicates a balanced market.
BIS Shrapnel estimates put the Victorian deficiency at approximately 23,100 dwellings as at June 2011, with newly completed dwellings coming onto the market over 2011-12 and 2012-13 likely to cause this number to fall. 
“In fact in some areas of inner Melbourne we feel that the market may even be in slight oversupply. This means there is significantly less pressure in the Victorian property market than is evident in New South Wales,” says BIS Shrapnel. 
“The residential vacancy rate in Melbourne has gradually risen over 2011 to reach 2.4% as at September 2011. As a result, our expectations for growth in property prices as well as rents are much more subdued in Melbourne than it is in the tighter market of Sydney. This in turn will ultimately limit demand from the investor segment of the market.”
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On the other hand vacancies in Brisbane, Perth and Sydney have tightened.
“Rental growth is coming up in Brisbane, but it has been pretty flat in Melbourne,” says Zigomanis.
During his presentation, BIS Shrapnel director Robert Mellor said the bump up in first-home buyer numbers in 2011 “was not all the result of the demand being brought forward in NSW”.
“People are responding to lower interest rates and an easing back in prices. Now may be a good time to buy relative to staying in the rental market,” he said.
“Housing interest rates are not the issue, affordability is not the issue – the real issue is confidence.
“What is going to tip it? After 30 years of forecasting I cannot answer that,” he said.
 
 
 
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