<p>New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.</p>

<p>It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.</p>

<p>With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.</p>

<p>The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.</p>

<p>Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.</p>

<p>"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.</p>

<p>Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.</p>

<p>That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."</p>

<p>Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.</p>

<p>Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.</p>

<p>That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.</p>

<p>"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


Joel Robinson

The apartment price gap drawing Sydney buyers west

<p>A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.</p>

<p>The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.</p>

<p>The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."</p>

<p><img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" /></p>

<p>Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.</p>

<p>Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.</p>

<p>"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."</p>

<p>Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.</p>

<p>Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.</p>


Rainbow Bay apartment doubles in price since off the plan sale during pandemic

<p data-end="315" data-start="85">The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.</p>

<p data-end="499" data-start="317">The project, to be known as <strong data-end="376" data-start="345">Capella Residences Brisbane</strong>, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.</p>

<p data-end="899" data-start="501">The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.</p>

<p data-end="1154" data-start="901">The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.</p>

<p data-end="1387" data-start="1156">The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.</p>

<p data-end="1387" data-start="1156"><img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" /></p>

<p data-end="1611" data-start="1389">Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.</p>

<p data-end="1823" data-start="1613">Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.</p>

<p data-end="2042" data-start="1825">The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.</p>

<p data-end="2177" data-start="2044">The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.</p>

<p data-end="2420" data-start="2179">The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.</p>

<p data-end="2724" data-start="2422">"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.</p>

<p data-end="2858" data-start="2726">"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."</p>

<p data-end="3130" data-start="2860">Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.</p>

<p data-end="3415" data-start="3132">"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.</p>

<p data-end="3658" data-start="3417">"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."</p>

<p data-end="3820" data-start="3660">Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.</p>

<p data-end="3961" data-start="3822">"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.</p>

<p data-end="4083" data-start="3963">"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."</p>

<p data-end="4227" data-start="4085">Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.</p>


Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

<p>Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.</p>

<p>The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.</p>

<p><img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" /></p>

<p><a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.</p>

<p>"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.</p>

<p>"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.</p>

<p>"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."</p>

<p><img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" /></p>

<p>Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.</p>

<p>The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.</p>

<p>"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.</p>

<p>"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."</p>

<p>Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.</p>

<p>"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.</p>

<p>"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."</p>

<p>Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.</p>

<p>[smartcode_project_cta:default project_id=113271]</p>


Lewis Land targets first home buyers at latest Harbour Shores release, Solis

<p>Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a></p>

<p>The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.</p>

<p>The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.</p>

<p>The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.</p>

<p>[smartcode_project:default project_id=108800 project_image_fid=370093]</p>

<p>Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.</p>

<p>"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.</p>

<p>"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."</p>

<p>Brown says the&nbsp;response to Park Residences following completion has been particularly strong.</p>

<p>"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.</p>

<p>"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."</p>

<p>[smartcode_project:default project_id=114246 project_image_fid=370116]</p>

<p>Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.</p>

<p>"Today's buyers are incredibly discerning," Tack said.</p>

<p>"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.</p>

<p>"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."</p>

<p>The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.</p>


KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<div>Total construction work done in Australia has declined by 3.7% over the past year in seasonally adjusted terms. Let's take a look in two short parts at what this actually means.</div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 1 - Total construction</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Total construction work done in the third quarter of 2015 declined by 3.7% to $49 billion on a seasonally adjusted basis. </div>
<div> </div>
<div>Despite a lift in residential building work done (+2.0%), there was a decline in non-residential building (-1.9%), and as widely expected engineering construction fell sharply (-7.3%) to be -11.7% lower over the year.<br><br>The green shaded area which records construction work done in chain volume measures terms shows that the unwinding of the resources construction boom has a way to run yet. </div>
<div> </div>
<div>Quarterly engineering construction work done has declined from a peak of $34 billion to around $25 billion, but given the weakness in commodity prices - and given that in the same quarter a decade ago activity was just $13 billion - the decline surely has a long way to go.</div>
<div> </div>
<div><a href="/images/2015/11/26/A1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/26/A1.jpg" alt=""></div>
<div> </div>
<div>
<div>The decline in engineering construction this quarter was driven by an overdue reversal in Western Australia, and to a lesser extent a decline in Queensland, as mega-projects begin to wind down. </div>
<div> </div>
<div>Activity in the Northern Territory continues to track at a historically exceptionally high level of $2 billion, accounted for primarily by the massive Ichthys LNG project.</div>
<div> </div>
<div><a href="/images/2015/11/26/A2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/26/A2.jpg" alt=""></div>
</div>
<div> </div>
<div>
<div>While non-residential building and major renovations have contributed little of significance to the rebalancing of the economy, new house building and "other residential" building (apartments, units, townhouses) have effectively done everything that could have been expected of them in response to low interest rates.</div>
<div> </div>
<div>Total building work done of $24 billion represents a solid 6.4 per cent increase over the year, with no thanks to the non-residential sector.</div>
<div> </div>
<div><a href="/images/2015/11/26/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A3.jpg" alt=""></div>
<div> </div>
<div>
<div>These high level numbers should present an idea of some of the challenges facing the economy given that housing starts are projected to decline from pretty much now, while the decline in engineering construction may only be half way done. </div>
<div> </div>
<div>Even now I'm still not sure anyone really has a satisfactory answer for what is going to fill this gaping hole while commodity exports ramp up. Given the expansion of Australia's population the obvious answers should come under the heading of "infrastructure" but if there's a coherent plan for that being discussed anywhere I haven't heard of it.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 2 - Building work by state</span></strong></div>
<div> </div>
<div>Victoria has been the king of building work through this cycle, with New South Wales following in second place, these states being home to the two capital cities with the strongest dwelling price gains.<br><br>Indeed, Melbourne is a fine illustration of why it is important for market analysts to pay close heed to both demand and supply factors when forming their views. The Victorian capital has been building both houses and units like billy-o since 2010 - the source of a thousand crash predictions - yet vacancies and stock on market are both falling, and the market seems to be gathering momentum again.</div>
<div> </div>
<div><a href="/images/2015/11/26/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A4.jpg" alt=""></div>
<div> </div>
<div><span>While there has been a reasonable response from the house building sector since 2012, approvals data shows that this market is running out of puff for the cycle, and has probably all but peaked already.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>On the other hand the "other residential" sector continues to surge to record heights (this has been visible in the largest cities to anyone with a working pair of eyes...always knew those gauges were dodgy!), the new high rise building boom being the defining dynamic of this market cycle.</span><br><br><span>Building work in this sector is at historical highs in Victoria, New South Wales, Queensland, and Western Australia, with over-building of high rise apartments evident in parts of Brisbane and Melbourne.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>If you've been following this blog for the last couple of years, you will appreciate that the systemic risks in the housing market are obviously apparent and buried within this final chart. Would-be market shorters should dig deeper here.</div>
<div> </div>
<div>There have long been indicators of overbuilding in the high rise markets of inner city Melbourne and Brisbane, with a high proportion of new build sales being made offshore, especially to China.</div>
<div> </div>
<div>The storm clouds were gathering for off-the-plan buyers well before APRA's intervention, but recent tightening measures to lending procedures could well be the factor which nails on the correction for this sector. </div>
<div> </div>
<div>How many buyers who put down trifling holding deposits will fail to settle if lenders demand a 20 per cent deposit prior to completion? Perhaps up to a third could be in trouble, and will be juggling personal finances as we speak. </div>
<div> </div>
<div>Could get messy. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Construction trends (off-the-plan mess) Pete Wargent

<html><body>
<p><span style="line-height: 1.3em;">Property Bloom has been developing property in New South Wales Hunter Region for almost fifteen years now and it still amazes me the sheer potential this region has to offer. </span></p>
<p>As we near our one hundredth property development, I took some time to reflect on this magnificent region after some light bedtime reading I came across this week. I've shared some of these research links with you.</p>
<p>The Hunter Region has everything going for it; beautiful environment, awesome beaches, fabulous mountain ranges and bush settings, wineries, diverse economy, dynamic industry, vibrant restaurant scene, affordable housing and amazing people and community. It continues to reinvent itself and there is now great focus on making it an information technology and professional services centre. </p>
<p>Did you know that the Hunter is the first Australian region to measure it's innovation performance on a world scale?  </p>
<p>Measurements included:</p>
<p>Introducing new or significantly improved methods and processes <br> Introducing marketing or organisational innovations<br> Innovative businesses collaborating with others <br> Businesses innovating in-house</p>
<p>You can check it out <a href="https://rdahunter.org.au/initiatives/2014-hunter-innovation-scorecard" target="_blank">here</a>.</p>
<p>This week the NSW Government released its new twenty year Draft Plan for Growing  the Hunter City and it confirms all that I hoped for and more.  Hunter City is defined as ..." the metropolitan area extending from Toronto and Swansea in the south to Raymond Terrace in the north and from Newcastle Harbour in the east to Lochinvar in the west. It has emerged from the expansion of Newcastle and its surrounding towns and has a rich history and strong growth prospects for the future." </p>
<p>It has identified Newcastle or the Hunter City as they've coined the area, as Australia's next major city. Of course Newcastle is already a Australia's seventh largest city by population according to population experts </p>
<p><span style="line-height: 1.3em;">When you are researching an area in which to invest in, then reading these types of government plans is key to getting a real feel for what is planned for the area. </span></p>
<p>The draft plans released identify visions, goals and actions that will guide the strategic planning of the region over the next twenty  years.  They aim to:</p>
<ul>
<li>protect the region’s most important asset, the environment</li>
<li>grow and diversify the economy to create local jobs</li>
<li>create thriving, liveable centres</li>
<li>deliver greater housing choice</li>
<li>in collaboration with councils, establish a committee to drive the coordination and delivery of the actions in the Plan. </li>
</ul>
<p>The public have been invited to have a say in this direction and you can do that here: https://www.planning.nsw.gov.au/hunter</p>
<p> Maybe Property Bloom will be celebrating our century of property development sooner than expected, based on what I read about the plans for Australia's next major city; Hunter City. </p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
<p> </p>
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jochivers-wq5Bp59R5a

Where is Australia's next major city? Jo Chivers

<html><body>
<div>Last week Reserve Bank Governor Stevens disclosed that he had discussed with his underlings whether the Reserve should do away with its apparently precise central growth, unemployment and inflation forecasts, in favour of publishing only their 'fan charts' and ranges in tables. </div>
<div> </div>
<div>By way of an example the November Statement on Monetary Policy (SOMP) forecasts showed GDP growth returning to 3 to 4% by the year ended December 2017, with the unemployment rate forecast to decline gradually, but the fan charts show that even the 70 per cent confidence intervals are surprisingly wide. </div>
<div> </div>
<div><a href="/images/2015/11/30/RBA3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/30/RBA3.jpg" alt=""></div>
<div>Noting that accurate forecasting is impossible, Stevens lamented that even if even if the central lines were to be left off the fan charts altogether, those awkward commentator folk would simply back it of the charts, which seems rather unfair.<br><br>In short, the most powerful central bank or econometric modelling can't forecast accurately what will happen over any meaningful time horizon, and neither can you!</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Ponzi scheme</span></strong></div>
<div> </div>
<div>Also last week a macro market report hit the headlines likening the Australian property market to a Ponzi scheme. Australians would be forgiven for thinking that they've heard such warnings before, for the simple reason that they have, more or less continuously since 2001.<br><br>I haven't read the report in question, so am in no position to critique the content, but to his credit Lindsay David of LF Economics has previously made predictions that are <strong>specific, measurable </strong>and <strong>time-bound</strong>, and so his predictions can be judged accordingly. </div>
<div> </div>
<div>Co-author Philip Soos has nothing if not longevity, rolling out his crash predictions for such a long period of time that they are threatening to see off their fifth Prime Ministerial term of office (his views were expressed in some detail in the piece "Bubbling Over: The End of Australia's $2 Trillion Housing Party" which predicted a 40 per cent crash for housing values nationally). </div>
<div> </div>
<div><span>The last time anyone bothered to check the value of Australian dwelling stock had swelled to $5.8 trillion with the latest available data implying that $6 trillion is a shoo-in, probably before the end of the calendar year.</span></div>
<div> </div>
<div><a href="/images/2015/11/30/Resi1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/30/Resi1.jpg" alt=""></div>
<div> </div>
<div>
<div>To be fair, on the one hand dwelling prices have indeed corrected sharply in any number of mining towns and regions: Gladstone, Port Hedland, South Hedland, Dysart, and Moranbah spring to mind, and no doubt there are plenty of others.<br><br>On the other hand figures released by <em>Residex</em> at the end of last week showed that Sydney's median house price has increased from $668,000 at the end of 2010 to $1,058,500 by the end of October 2015, an increase of more than 58 per cent or nearly $400,000.<br><br>Buried under the emotive rhetoric Soos has made a number of robust arguments, in particular the illusory nature of housing shortages, which are seemingly apparent when the economy is humming along, but can wondrously vanish into thin air when market downturns happen.<br><br>These simple points highlight the perennial challenges facing macro property market research reports and forecasts: market timing and granularity.</div>
<br><strong><span style="text-decoration: underline;">Timing</span></strong><br><br><div>While macro research can identify downside risks and probabilities, history suggests that it is very difficult to forecast housing markets accurately over any meaningul time horizon.</div>
<div> </div>
<div class="separator">
<span>Famously Case &amp; Shiller called the US real estate bubble in July 2003 when its index read 142.99, yet the index ran all the way to 206.52 in July 2006 before reversing all the way back from whence it came to 134.07 in March 2012 (t</span><span>he latest Case-Shiller reading in 2015 showed the index to be 28 percent above the level it was tracking at the time of the original bubble call, while homeowners have continued to benefit from housing services throughout).</span>
</div>
<br><div>
<span>There would be similar tales in Northern Ireland where average house prices all but tripled from <span>£</span>88,000 to <span>£</span>226,000 between 2002 and 2007 before crashing all the way back to <span>£</span>125,000. An obvious bubble, sure, but the timing was difficult (if not impossible) to pick. The average price today has increased again to </span><span>£</span><span>162,000, approaching double the average house price in 2002.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/30/Ireland.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/30/Ireland.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>In London we have heard crash predictions for at least the past decade-and-a-half, while despite downturns and recessions house prices in some boroughs have tripled...and still there has been no crash.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/30/London.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/30/London.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>
<span>Few would disagree that parts of Australia's housing market are seriously expensive, but timing the downturns is rarely as easy as it appears in hindisght.</span><br><span><br></span>
</div>
<div>
<strong><span style="text-decoration: underline;"><span>Granularity</span></span></strong><br><strong><span style="text-decoration: underline;"><span><br></span></span></strong>
</div>
<div><span>The state level data shows that since September 2011, New South Wales (+57 per cent) and Victoria (+23 per cent) have accounted for 80 per cent of the increase in the total value of dwelling stock, while the figures for the June 2015 quarter showed that prices are declining in Western Australia and the Northern Territory.</span></div>
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<div>The obvious point here being that there is no "Australian property market", rather a series of sub-markets which cover 9.6 million dwellings and demonstrate very different characteristics and fundamentals.<br><br>Having observed the history of bubble predictions Scott Sumner once concluded that: <br><em><br></em><em>"</em><em>If we notice market movements that seem to align with our initial forecasts we tend to pat ourselves on the back and assume the forecasts were correct. This is one of many cognitive biases that human beings are prone to. Pay no attention to bubble forecasts. They are useless. Indeed the entire bubble concept is useless."</em><br><div> </div>
<div><strong><span style="text-decoration: underline;">Risk markets</span></strong></div>
<div> </div>
<div>Last year Soos wrote that due to it having the strongest yields Darwin has the smallest property bubble, a theory which might hold some sway in an academic vacuum, but shows a worrying lack of understanding of the real world and what caused the Top End's housing boom in the first place. </div>
<div> </div>
<div>In fact, in my opinion at any rate, Darwin appears to be the capital city with by far the greatest risk of a genuine price crash, with rents now in freefall and vacancy rates rising sharply (cf. the illusory supply shortage identified by Soos himself). </div>
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<div>Thin property markets such as Darwin with a relatively small population are more prone to shifts in dynamics at the margin, and as population growth switches into reverse gear by the end of this calendar year the results to the downside could be spectacular. </div>
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<div>Other high risk markets include any number of regional areas with a residual resources capex footprint, with mining capex now collapsing, while parts of inner city Melbourne and Brisbane are suffering from overbuilding of new apartments, with APRA's lending crackdown set to leave many off-the-plan buyers short. </div>
<div> </div>
<div>Even within capital city markets there are sub-markets which can be expected to experience diverging fortunes. </div>
<div> </div>
<div>For example, with the population still expanding rapidly, Sydney has a number of inner city markets for which demand is so high that any correction in prices will be met by a wave of new buyers. On the other hand, price inflation in some of the outer western Sydney locations over the past few years has been so far beyond absurd that even a 40 per cent correction might represent a neutral scenario.</div>
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<div>Property Observer recently reported on the report by LF Economics comparing Australia's housing market to a Ponzi scheme, which you can read here.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Forecasting real estate myths: Pete Wargent

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<p>If there's one thing I've learnt from developing property, it's that you definitely need a 'can do' attitude.</p>
<p>This week, I've come across so many 'can do' people that it's inspired me to write about them.</p>
<p>So what's the definition of 'can do'?  It's basically, when everything goes to shit and things seem totally not doable, then a person with a 'can do' attitude always finds a way.  So today, this goes out to the many people who've I've crossed paths with and who've reminded me of how we really can achieve anything we put our minds and hearts to.</p>
<p>Meet Bob from Port Macquarie, he's an older gentleman who has been emailing me for the past five years on and off. Every now and then I'll get a message from Bob. He may be responding to one of my Property Observer stories or our newsletters, but he always asks different questions. Well, this week Bob decided to take a big step and to be the property developer he'd wanted to for some time. His purpose?  Well, it is to use the equity he creates to help his daughter buy her first property.</p>
<p>Then there's my step daughter who rang me today to tell me that whilst planning her thirtieth birthday party she'd also set herself the goal to buy her fourth investment property by the time she turns thirty. Her birthday is in May 2016 and my heart sang as she described the type of property she's looking for.  Go girl, you have the 'can do' attitude.</p>
<p>This goes out to a dynamic young couple who called my just a week ago and who were so focussed they made calculated decisions to be able to secure their development site within a week and are now Property Bloom clients. They explained they have their sites set on building their wealth quickly and they've asked me to find their next site soon. Did I mention they also have seven dual occupancy projects underway in Queensland?</p>
<p>This goes out to my little brother who celebrated twenty-five years in the NSW Police Force this week and whom I proudly watched being awarded special things from Commissioner Scipione. His focus and hard work has seen him rise through the ranks, raise a family and build their dream home.</p>
<p>This goes out to the client who was recently turned away from the four big banks, despite being on a $300,000 plus salary because of the ridiculous changes in their serviceability calculators. I referred him to Rams who more than welcomed his business and gladly offered him the finance he wanted for his development project with Property Bloom.</p>
<p>This goes out to my project manager who after approaching many lenders has used creative strategies to source finance for her first development project.  She has drive and determination which comes from her desire to become financially independent.</p>
<p>This goes out to my builder and the amazing staff who always use the 'can do' attitude which means we'll be completing many of our development projects before Santa arrives this year.</p>
<p>Finally, this goes out to all of you reading this who refuse to let life's ups and downs stop you from driving forward with your goals and dreams. You all have the 'can do' spirit. As the famous Walt Disney said "If you can dream it, you can do it." </p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Keeping a can-do attitude in the property game: Jo Chivers

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<div>An unusual looking Building Approvals data release from the ABS, which showed a seasonally adjusted 2.1% increase in monthly approvals to 18,900 (21.4% year-on-year) but the trend result declining by 1.8% for the month to 18,309 (to be up by just 6.8% year-on-year).</div>
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<br>The trend result led to various reports of the building boom being over. Confusing? It certainly was, with the trend result evidently applying negative "tail weights" to the strong run of monthly approvals at the beginning of the year.</div>
<div> </div>
<div>Ultimately monthly building approvals figures will always and forever be lumpy, and the trend weights arguably add limited value here.<br><br>Below I have instead charted the original unadjusted data by month for houses and other dwellings - no seasonal adjustments and no trend weights, just a moving average whacked through the middle - so you can make your own mind up.<br><br>So, have building approvals peaked or not? In short, detached house approvals have probably peaked for the cycle. On the other hand townhouses, units and apartments may not <span style="text-decoration: underline;"><strong>quite</strong></span> yet have peaked, but given tighter lending criteria being applied for investors and waning rental yields, the peak of the cycle appears likely to be imminent.</div>
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<span>The rolling annual data shows that over the year to September a record total of 230,296 dwellings was approved, with some 114,218 of them being attached dwellings, which is also a record.</span><br><br><span>Incredibly, the annual total number of attached dwelling approvals is approaching the number of houses approved, something that nobody was predicting three years ago.</span>
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<div class="separator"><span>Indeed some folk predicted there would be no material increase in approvals period, which just goes to show how unpredictable cycles can be at times.</span></div>
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<strong><span style="text-decoration: underline;">Across the capitals</span></strong><br><div class="separator"> </div>
<div class="separator">House approvals continue to trend up steadily in Sydney and Melbourne, but are flatlining in Brisbane, and are now trending down in Perth, Adelaide and Canberra. </div>
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<div>Over the past 12 months Sydney has seen four big months for attached dwellings approvals ranging from 3,111 in May to a record 4,260 in July, but approvals tailed away again in September to just 1,835.</div>
<div> </div>
<div>Melbourne waved through another 2,842 units in September for a fresh rolling annual high of 34,726 approvals.<br><br>Meanwhile Brisbane had another whopping month of high rise approvals, also sending its annual unit approvals to a new high of 18,301. This figure is up from an equivalent total of just 5,412 three years ago - again, think back to the commentary at the time, did anyone predict this surge in approvals or Chinese capital?<br><br>The Brisbane Central Business District is set to "benefit" from new high rise towers which will nudge against the city's 274 metre height limit, a restriction set for aviation regulations.</div>
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<div>What more is there to say on this point that I haven't already said over the past two years?<br><br>Whether or not all of these apartments are built, steer clear of the obvious areas of oversupply in Melbourne and Brisbane in particular, and be even more wary than usual about buying expensive off-the-plan or new build units. </div>
<br><strong><span style="text-decoration: underline;">High rise gluts power on</span></strong><br><br><div>In particular, the number of high rise (4+ storey) units being approved continues to defy common sense in Victoria...</div>
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<div><span>...and in Queensland, which saw its greatest ever month for high rise apartment approvals in September. The ratio of new stock to existing stock in a number of Brisbane's inner suburbs is exceptionally high, as documented here previously.</span></div>
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<div><span>Meanwhile, New South Wales may have passed its cyclical peak in respect of high rise approvals, although due to necessity crowded Sydney will continue to approve more of this dwelling type in future. Nevertheless the higher-density sector is one I'd mark down to "underperform".</span></div>
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<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div class="separator">Overall, despite talk of the building boom being "at an end" thanks to the prplexing ABS trend data, this was a reasonably strong headline result for building approvals, though once again skewed towards high-density projects. </div>
<div class="separator"> </div>
<div class="separator">With the macroprudential screw tightening it seems increasingly likely that unit approvals could soon drop off too, and a significant percentage of approved developments may never make it through to the completion stage.</div>
<div class="separator"> </div>
<div class="separator">Accordingly the dwelling starts data series will be one to watch closely. Note that there can be a significant lag between approval and completion for multi-unit developments, perhaps up to several years. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Building boom all over bar the grouting? Pete Wargent

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<p><span>The past few weeks have been hectic for real estate with headlines about a possible shift in market sentiment as the major banks all increased their home loan rates and we also saw a drop in auction clearance rates below 65%. </span></p>
<p><span>And so somewhat lost among all of these headlines is the news about the passage into law of the long-awaited review of Strata Title Legislation in NSW.</span></p>
<p><span>The Strata Scheme Management Bill and Strata Scheme Development Bill have both passed the Legislative Council. The two bills contain more than 90 changes to how strata agreements are governed.</span></p>
<p><span>Long after the other headlines start to fade these changes are going to impact the market for many decades.</span></p>
<p><span>I think that the correctly described as a ‘once-in-a-generation reform’ to the state’s strata title laws after much debate will come into force from July 2016. The Minister for Innovation and Better Regulation (interesting title) Victor Dominello who has been responsible for the bills, said that the laws are an important step forward for the state.</span></p>
<p><span>He noted that more than two million people live and work in strata and that the new laws will cater for the needs of 21st century strata living.</span></p>
<p><span>“The new laws will modernise collective decision making processes, increase protections against unresolved building defects and improve out-dated regulation impacting on renovations,” he said.</span></p>
<p><span>The key changes have received a deal of publicity and have also attracted a lot of emotional comment but I think the case and need to renew many older buildings has been fairly established.</span></p>
<p><span>Across Sydney there are pockets of development from the 1960’s and 1970’s that fall a long way behind modern standards and amenity. If we fail to make it possible to redevelop these buildings then this paralysis can have a detrimental impact on urban standards and possibly create disadvantaged areas, where values fall and we see a cycle of neglected investment. In a dynamic city this sort of urban renewal is vital to the city’s livability.</span></p>
<p><span>Now of the nearly 100 changes in the updated legislation, most notable is the requirement that only 75% of owners will need to agree for an apartment building to be sold.</span></p>
<p><span>One of the other key points addressed is a move making it easier for owners to complete cosmetic and minor renovations to their apartments, again this is important to keep apartments modern and with the services and facilities that owners require without being consumed by over regulation and far too much red-tape.</span></p>
<p><span>The changes will also prevent proxy farming, and while the extent of proxy farming is hard to measure, it can often be used to set up long-term appointments and policies in a building that do not always work for the owners. This change should be a welcome move.</span></p>
<p><span>Then we see another key change, which has also attracted a great deal of industry comment, which will see the introduction of a defects bond to fix building defects early in new developments. In the past we have seen some poor quality buildings leaving the owners corporation with a major headache and on some counts big repair bills that sometimes came on top of big legal bills because of a disagreement with a developer or their insurance company.</span></p>
<p><span>The new bill has a requirement of developers to lodge a bond of 2% of the contracted price of the building as a form of security to fix any defective work.</span></p>
<p><span>Here again the changes should be welcome and should not be seen as a threat among well-regarded developers. The suggestion that the introduction of these bonds might further inflate prices is a bit of a bluff as experienced developers have to their credit always understood the importance of delivering quality buildings, and most already do so.</span></p>
<p><span>The new provisions have also taken on some house-keeping issues to tackle that can have an annoying or even detrimental impact on people’s daily lives. These include the addressing of the perennial issues of (illegal) parking, pets and smoke drift.</span></p>
<p><span>According to The Minister the over-riding objective has been to modernise our strata laws to better reflect the way people live and work in 2015 and beyond, and as everyone is aware the numbers of people living in strata developments is now massive and growing.</span></p>
<p><span>In some parts of Sydney in areas like Rhodes, Chatswood, the CBD, Zetland and Pyrmont, plus many other spots, the concentrate of apartments and the density of population really dictates that the rules need to be keeping up with the pace of modern development, and to date they have not.</span></p>
<p><span>It is more than 20 years since the last major amendments to strata law were made and over those two decades we have seen how and where many people live change dramatically. Today’s strata landscape is also much more varied than a three-level walk up building and now includes city high rises, sometimes very large scale buildings, townhouses, dual occupancies, offices, retirement villages, mixed use and tourism.</span></p>
<p><span>According to published figures there are currently over two million people, including 25% of Greater Sydney’s population, living or working in more than 75,000 strata schemes across NSW.</span></p>
<p><span>But what is a very interesting figure is the prediction that by 2040, half of all Sydneysiders will be living or working in strata and that single static alone underlines the urgency and importance of the current review. The new Strata Scheme Management Bill and Strata Scheme Development Bill follows a comprehensive community consultation, with over 3,000 individual submissions received.</span></p>
<p><span>With the bill soon to become law it’s a good idea to take a keen interest as the development industry and buyers are all going to be impacted for many years to come but I think the laws do go a long way to creating a better outcome for strata buyers and developers and their passage ends a long drawn out process.</span></p>
<p><span> </span></p>
<p><span><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></span></p>
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New strata rules set to have big impact: Peter Chittenden

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<p><span>The Australian Bureau of Statistics (ABS) released building approvals data for July 2015 earlier this week. According to the data there were 19,298 dwelling approvals over the month which represents an increase of 4.2% over the month and a year-on-year rise of 13.4%. Monthly dwelling approvals reached a record high of 20,260 approvals in March 2015 and the July 2015 result represents the fifth largest monthly number of dwelling approvals on record.</span></p>
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<p>Over the month there were more unit approvals than house approvals. In fact it was only the seventh time on record that there were more units approved over the month than houses, five of which have happened in 2015. Although unit approvals outnumbered house approvals over the month it is important to note that they tend to be much more volatile than house approvals and are ultimately less likely to be built than houses (approximately 85% of all unit approvals proceed through to a completion historically). Although this is the case, particularly for larger unit development, the economic benefit is extended over a longer period because they take much longer to complete.</p>
<p>In July 2015 there were 9,479 houses and 9,819 unit approvals over the month. House approvals fell by -2.6% in July and were -2.1% lower year-on-year.  Meanwhile, unit approvals increased by 11.7% in July (following a fall of -13.3% in June) and were 33.8% higher year-on-year.  On an annual basis there has been a record high 224,121 approvals to July 2015. To put the recent ramp-up in approvals into perspective, three years ago there were just 148,449 approvals over the year.</p>
<p><a href="/images/2015/09/02/Chart-2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/02/Chart-2.jpg" alt=""></p>
<p><span>As the number of approvals has increased, the greatest rise has occurred across the multi-unit segment. Over the past 12 months a record high 48.3% of all approvals were for units. If you look just at the capital city markets 55.7% of all dwelling approvals were for units.  </span></p>
<p><span>The rise in unit approvals is reflective of changing lifestyle patterns with more and more people preferring to live closer to the city centre and along transport spines where most of these units are located. It also shows that developers are enjoying a level of confidence by seeking approvals for a record high number of units.  </span></p>
<p><span>Another factor contributing to the rise in higher density dwelling approvals is changes in town planning policies where governments are aiming to maximise existing transport infrastructure by allowing higher densities along existing and planned transport corridors and mixed use precincts.</span></p>
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<p>If we look at the types of units that are being approved it is interesting to note the sharp rise in high-rise approvals, that is units in a block of four or more storeys.  Over the past 12 months, a record high 63.4% of all unit approvals were within high-rise projects while a record low 26.2% of approvals were terrace and townhouses and a record low 4.9% of approvals were for units in a one or two storey block. Again, these figures just go to show the heightened level of developer confidence particularly when you consider the relative level of risk associated with high rise development.</p>
<p>The number of dwelling approvals remains high albeit it is slightly lower than recent record highs. Strength in the approvals figures are becoming increasingly reliant on the multi-unit sector which tend to be much more volatile than house approvals. With many banks, credit unions and building societies tightening their lending criteria it will be interesting to see over the coming months if this flows into approvals and causes developer confidence to wane.</p>
<p>No matter what happens with approvals over the coming months and years there is a strong pipeline of new construction, much of which is high-rise and will extend out over a number of years.  Furthermore, with population growth slowing we should see a better relationship between housing supply and housing demand.  This is already being seen by the fact that capital city rental rates are increasing at an historic low rate currently.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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Rise in unit approvals drives rebound: Cameron Kusher

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<p><span>As a result of new lending criteria delivered to deposit-taking institutions by Australian Prudential Regulation Authority (APRA) a lot of attention has been placed on the pace of lending for residential housing investment. </span></p>
<p><span>The APRA guidelines highlighted a limit on annual investment </span><span>credit growth for ADIs of 10% however, from that point until June 2015 the annual rate of investment credit growth continued to increase.</span></p>
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<p><span>Although it’s only one month of data, the latest housing credit </span><span>data to July 2015 suggests that we may be finally set to see a </span><span>slowing of investment credit growth. </span></p>
<p><span>Over the 12 months to July 2015, the Reserve Bank (RBA) reports that total housing credit rose by 7.4%; its fastest annual rate of growth since October 2010, and consisted of a 5.3% annual increase in owner occupier credit (fastest growth since March 2012) and a 10.8% annual rise in investor credit.</span></p>
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<p><span>Investor housing credit is still growing at a robust pace however, at 10.8% over the year it is down from </span><span>11.1% in June and at its lowest level since March 2015. “In fact, </span><span>the monthly investor housing credit data shows credit advanced by just 0.6% in July which was its lowest monthly increase since </span><span>October 2013. </span></p>
<p><span>Investment segment lending data on the investment segment </span><span>suggests that following recent changes to lending policies by Australian ADIs, lending to the investment segment of the market is set to slow further over the coming months. </span></p>
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<p><span>With mortgage rates remaining low we would anticipate the rate of </span><span>growth will slow to around the 10% per annum benchmark, </span><span>however this is unlikely to drop much further than that.</span></p>
<p><span>While any slowdown in investment growth may have an impact on </span><span>overall housing credit figures, Mr Kusher noted that it’s important </span><span>to recall that a much greater proportion of overall lending goes to owner occupiers. </span></p>
<p><span>In July 2015, the total value of outstanding housing credit was $1.476 trillion. This figure was comprised of $906.4 billion in lending to owner occupiers and $569.8 billion to investors. </span></p>
<p><span>I</span><span>t’s important to remember that the rate of </span><span>growth in owner occupier lending has also been rising although over the past year there was a $45.2 billion expansion in credit to owner occupiers compared to $56.1 billion to investors. Furthermore, the proportion of total mortgage credit to investors is at a record high 38.6%. </span></p>
<p><span>ADIs of course don’t lend exclusively for mortgages and the latest </span><span>data shows an encouraging lift in credit to businesses. In July 2015 business credit rose by 0.7% to be 4.8% higher over the year. Total business credit is currently recorded at $799.7 billion, which is significantly larger than investment housing credit.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.33.38%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.33.38%20PM.png" alt=""></span></p>
<p> </p>
<p><span>The RBA and APRA are likely to be very encouraged to see the </span><span>first signs of a slowing of lending to the investment housing segment and would hope that it continues over the coming months. </span></p>
<p><span>While this may result in a slight slowing in overall housing credit growth increases, this shouldn’t be viewed as a negative outcome. </span><span>If the recent increase in business credit can continue it would </span><span>arguably provide greater economic benefit. </span></p>
</div>
</div>
</div>
<p><span><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></span></p>
</div>
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Has growth in investor housing credit reached its apex? Cameron Kusher

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<p><span>Preliminary auction clearance rates ticked back on the first weekend of spring according to </span>CoreLogic-RP Data<span>.</span></p>
<div>Sydney's auction clearance rate should now begin to track lower than its equivalent prior year figure, but remains elevated at this juncture 78 per cent.</div>
<p><span style="line-height: 1.3em;">Generally strong results were seen outside Sydney and Melbourne as per the below graphic, albeit from the usual small samples.</span></p>
<p><span><br><strong><span style="text-decoration: underline;">Speeding ticket</span></strong><br><br></span></p>
<div>That the Sydney market must eventually slow is not in question.</div>
<div> </div>
<div>After all, both Residex and CoreLogic-RP Data have recorded house prices growing at an absolutely cuckoo pace of +7.5 per cent over the last quarter (a totally bonkers rate of growth implying that prices would double within the next 10 quarters). </div>
<div> </div>
<div>The real questions are how well the spring auction market can hold up in the face of likely higher stock volumes and what happens when the growth cycle eventually comes to an end. </div>
<div> </div>
<div>It's worth noting that while outer suburban auction rates may have tailed off in Sydney somewhat, many of the inner suburbs are still recording blistering results.</div>
<div> </div>
<div>The inner west (88.6%), eastern suburbs (84%) and North Sydney and Hornsby (83.6%) regions each once again recorded supremely high preliminary clearance rates.</div>
<div> </div>
<div><a href="/images/2015/09/07/AUCTIONS1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/07/AUCTIONS1.jpg" alt=""></div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<p><span> </span></p>
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Auctions spring forth: Pete Wargent

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<p><span style="line-height: 1.3em;">With each property development we manage, we'll fine tune the process so that on the next one, we'll do something a little differently to improve the results. </span></p>
<p><span>After completing over 80 developments, our process has become pretty refined. But there is always something we can improve on. </span></p>
<p><span>Sometimes they are just small tweaks that can make a massive difference. This particular example I'll share with you shaved literally a month off the planning process.</span></p>
<p><span>At Property Bloom we work across a number of different councils and each council has their own way of looking at and processing a Development Application (DA). It can be easy to make assumptions based on past experience. </span></p>
<p><span>So when we started working in a new location that fell under a council we'd not yet worked with, we assumed they'd review our plans in the same fashion as the other councils. The first few DAs (all assigned to different town planners) were processed within about 7-8 weeks on average. This is a lot longer than we liked but still not as bad as another council's processing times. It fell somewhere in the middle of our best and worst processing times. </span></p>
<p><span>The time your DA is in council is dead time, there is not too much you can do whilst you wait for the consent in case changes need to be made. We tend to use this period to choose material and colours.</span></p>
<p><span>Even after working with some councils for ten years, it will come down to the individual town planner who is assessing your DA and what they like to see marked on your plans. If they request 'more Information' then your DA is put on hold until they receive a response.  </span></p>
<p><span>This particular DA was assigned to a planner we'd not yet worked with at this council. We received a letter requesting more information on off street parking locations. The plans detailed a single garage for each villa. The requirements are to provide two parking spaces. Obviously one is in the garage - but here's where our assumption kicked in -  we thought the planner could 'see' that the second space was on the driveway as a stacked or tandem parking space.  </span></p>
<p><span>We quickly marked this on the plan and immediately sent it to the planner, and within three days we had the DA Consent on our desk. This set a record of processing time with this council - four weeks, down from eight weeks. </span></p>
<p><span>It goes without saying that this was added to our list of what to include on the plans and we made a mental note never to assume. We are now a month ahead of schedule and our client is happy to save time and holding costs.</span></p>
<p><span><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></span></p>
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