<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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<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>
<span style="line-height: 1.3em;"> </span><span style="line-height: 1.3em;">South Australia has headaches, not least in the form of Whyalla where the town's major employer is suspended from trading on the securities exchange having failed to guide its steelworks back to break even over recent years, despite continually cutting costs and capex, and having unveiled a recapitalisation proposal back in February that has now been rejected.  </span>
</div>
<div> </div>
<div>Steel company Arrium Limited (ASX: ARI), which employees thousands of workers and has an export port facility at Whyalla, has been stuck in a trading halt and has been suspended from official quotation, with the company staring down a possible bankruptcy or a likely voluntary administration and its last traded share price at only 2.2 cents.<br><br><div class="separator"><a href="/images/2016/04/8/ARI.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/8/ARI.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"><em><span style="text-decoration: underline;">Source: ASX</span></em></div>
</div>
<div>It was announced to the ASX this week, in the euphemistically graceful way of these things, that the Chief Financial Officer of the company has resigned "to pursue other interests", while the company attempts to refinance its massive and unsecured $2.8 billion debt burden.<br><br>
</div>
<div>Whyalla already felt the pain of OneSteel shedding jobs last year and further cuts were made by OneSteel this week, with approximately 1,000 jobs lost in Whyalla since the beginning of last year as South Australian unemployment spiked to a 14 year high. </div>
<div> </div>
<div>Given that Arrium employs about 10 per cent of Whyalla's working population, the potential closure of the steelworks could rip the local community apart, having a more devastating impact than the closure of Holden upon South Australia, potentially resulting in related job losses variously estimated at between 3,000 and 4,000 (Arrium has about 10,000 employees in total, and the possible closure of the steelworks itself would directly account for 1,100 jobs). </div>
<div> </div>
<div>These are desperate numbers for a town with a population of only 22,000, and any such closure would inevitably result in an exodus or population outflow from the region. Let's sincerely hope that doesn't happen, though at present the outlook seems bleak.<br><br><strong><span style="text-decoration: underline;">Property market decimated</span></strong>
</div>
<div> </div>
<div>Median house prices have reportedly fallen sharply in Whyalla, while there have been few takers for attached dwellings, resulting in a crushing of unit prices.<br><br>
</div>
<div>It was reported this week that more than a billion dollars has been wiped off the value of Whyalla's property market in recent years - from $2.7 billion to $1.5 billion - as homeowners flood the market with for sale boards (though quite how those figures are derived given that so few dwellings have actually transacted is open to question). </div>
<div> </div>
<div>This may sound like catastrophising, but vacancy rates are threatening to go through the roof, with scores of properties listed for rent in Whyalla and hundreds more in surrounding suburbs.<br><br>
</div>
<div><a href="/images/2016/04/8/SQM.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/8/SQM.jpg" alt=""></div>
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<div class="separator"><a href="/images/2016/04/8/SQM2.jpg" target="_blank"> Click to enlarge</a></div>
<div>
<br><div class="separator"><img src="/images/2016/04/8/SQM2.jpg" alt=""></div>
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<div class="separator"><a href="/images/2016/04/8/SQM3.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"> </div>
</div>
<div><em><span style="text-decoration: underline;">SQM Research</span></em></div>
<div> </div>
<div>Note that the dynamics described above have transpired while Whyalla's official unemployment rate is still relatively speaking quite low, at 7.2 per cent  as at December 2015.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Slow house sales</span></strong></div>
<div> </div>
<div>In truth it is very challenging to get an accurate read on housing market prices, since although there are now hundreds of properties listed for sale, comparatively very few of them have been selling. </div>
<div> </div>
<div>Looking at some specific examples suggests that if outright panic isn't on the cards yet, it may not be that far off if Arrium does shut up shop. As noted above, hopefully this proves not to be the case. </div>
<div> </div>
<div>By way of one example, following a few false starts and 372 days - more than a year - on the market, this house finally sold for $140,000, 36.4 per cent less than it was originally listed for. </div>
<div> </div>
<div class="separator"><a href="/images/2016/04/8/Whyalla1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/04/8/Whyalla1.jpg" alt=""></div>
<p> </p>
<div class="separator"><a href="https://3.bp.blogspot.com/-4kOFesTsRMM/VwTu2Y5IziI/AAAAAAAAcRo/6n9VAIURjoYWNIwL4t2itTiVV4TXNfNXg/s1600/WHyalla2.jpg"><img src="https://3.bp.blogspot.com/-4kOFesTsRMM/VwTu2Y5IziI/AAAAAAAAcRo/6n9VAIURjoYWNIwL4t2itTiVV4TXNfNXg/s640/WHyalla2.jpg" width="640" height="66"></a></div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-fKMid6N-oPE/VwTu2YeCZuI/AAAAAAAAcRw/atIfr41-xY4Ra78ibngGtjrLeb-mtfN6g/s1600/WHyalla3.jpg"><img src="https://1.bp.blogspot.com/-fKMid6N-oPE/VwTu2YeCZuI/AAAAAAAAcRw/atIfr41-xY4Ra78ibngGtjrLeb-mtfN6g/s640/WHyalla3.jpg" width="640" height="82"></a></div>
<p> </p>
<div>Other examples suggest that prices may now be down by about a quarter over the last couple of years, but this statistic is essentially useless to individual prospective sellers, since it really all comes down to the asset in question and whether a willing buyer can be found.</div>
<div> </div>
<div>While Arrium's steelworks fate is not yet decided, unfortunately this is becoming an all too familar story with regards to these small towns and cities that are so heavily reliant on a small number of employers.</div>
<div> </div>
<div>No doubt it's great if you can buy at the beginning of a resources boom and nimbly sell before the peak, but if you miss the precise turning points these markets have the potential to become frightfully thin and illiquid, and there may be nobody to even rent your property to, let alone sell it.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Share indices</span></strong></div>
<div> </div>
<div>Another related graphic from the RBA Chart Pack worth looking at is the Australian share price indices chart. Note that the y axis here is presented on a log scale - the swan dive in the resources index since its peak has been nothing short of breathtaking.</div>
<div> </div>
<div><a href="/images/2016/04/8/australian-share-price-indices-small.gif" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/8/australian-share-price-indices-small.gif" alt=""></div>
<div> </div>
<div>To a certain extent the resources index has been reflected the fortunes of property markets in resources heavy regions, albeit not coterminously.<br><br>Sure, if you got in to the resources penny dreadfuls in 2000 and sold out in 2007 then you'd say that the resources minnows and micro-caps are the best thing since sliced bread, but over the longer term the self-sustaining industrials and financials triumph.<br><br>Yes, I get the counter-arguments, if you bought a house in Whyalla for $150,000 in 2000 today it "could" be worth double what you paid for it, assuming you can find a willing buyer (i.e. a "when to" investment rather than a "how to" investment).<br><br>That said, looking at actual resales of like-for-like properties shows that price performance has not been as smart as suggested by median prices (which are distorted by development).<br><br>Unfortunately many property investors hopped on to the mining boom bandwagon around 2012 egged on by seminar groups and promoters, and are somewhat more precariously placed as voluntary administration looms large for Arrium.<br><br>Don't get me wrong, I hailed from a depressed steel city myself, and the last thing anyone with a heart wants to see is a single job lost. But the steelworks is not viable, and it appears likely to close without government handouts, and as such the housing market is wobbly to say the least.</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>
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Whyalla wipeout on the brink (redux): Pete Wargent

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<p>I’m not sure just how closely you have been following Australia’s property markets but what I can add is we are now starting to see some amazing trends emerging that will have both negative and positive outcomes.</p>
<p>This week we read that despite our national apartment building boom rents continue to rise. With approximately 30,000 apartments nearing completion in Sydney I predict that we have seen the rental peak. Unbeknown to many the major banks have already started black spotting many areas across Australia – where they are now no – go areas for future lending. For example, where you have an area that has undergone unprecedented new apartment high density developments you can expect values to start decreasing quite rapidly.</p>
<p>In Sydney the areas on ignore include, Darling Harbour, Dawes Point, Haymarket, Millers Point, Sydney, Sydney South, Waterloo, Annandale, Zetland, Homebush and Arncliffe. It will only be a matter of time before these areas spread further given the sudden – impact of oversupply where the vast majority of these properties will be left fighting it out in this newly created competitive rental market. It is quite unprecedented to see the lenders adopting this strategy given they are creating their own problems although they did approve the respective loans.</p>
<p> </p>
<p>Gen Y (or Gen Why? as I call them) should stop complaining and consider themselves lucky that they missed most of this modern day apartment investment boom. Since December 2008, when the Rudd government moved the off – the – plan apartment overseas buying ratio from 50 per cent to 100 per cent where the large percentage of these buyers came from Asia, which has a combined population of approximately 4 billion people compared to our 24 million. Whilst I certainly don’t agree with this decision we have introduced foreign owners although the debt remains local – another big problem.</p>
<p>Then of course it would be remiss of me not to mention that the Australian Taxation Office (ATO) has gladly accepted the role of “Big Brother” where every single property transaction in Australia dating back to 1985 now being scrutinised. Whilst the ATO has been remarkably quiet on the announcement side of developments this is an election year and the decision to hand the ATO total ownership of Australian property data was a decision by the present government, so we can expect this to figure prominently in the forthcoming election debate.</p>
<p>Now if developments were not getting interesting we now have the Panama Papers (the largest leak in journalistic history) which the ATO would be all over given 800 Australians managed to make guest appearances as a direct result from the leaked papers.</p>
<p>Just what the exposure to Australian property markets is remains to be seen although I did read in <em>The Guardian</em> this week – “Which is exactly why today’s revelations about the connections between tax havens and property ownership are so important. Revealed in the leaked documents was the fact that 2,800 Mossack Fonseca companies are connected to more than 6,000 UK title deeds, worth at least £7bn. On top of this, according to Guardian analysis, more than 90,000 properties in England and Wales are listed in the Land Registry to overseas owners, at least 75,000 of which are owned by companies or individuals registered in tax havens.”</p>
<p>Now can you start to see why raising the overseas buyers’ ratio from 50 per cent to 100 per cent could have a serious impact on our Australian property markets? Given all that is presently going on it would be sage advice to closely monitor exactly what is going on in these areas of high density development.</p>
<p>To be fair many areas saw very little development so they will go through this with minimum downside to property prices and rental returns. Having said that the property aggregators bundle all the statistics into the one bundle so rents will then show signs of easing although in some areas it will be quite the opposite.</p>
<p>I have no doubt that the role the ATO is currently playing within the tapestry of the Australian property markets will have a defining outcome that will result in many forced sales. Just what effect this will have on property prices is way too early to call although I see the investment market under significant pressure with all presently going on. Then again there will be a knock – on effect with all the new developments which are presently in the re – zoning and planning stages more particularly, those areas that already that are already marked as being over developed – over supply.</p>
<p>On the other hand the owner operated housing market has just been ambling along and looks to have well and truly dodged this modern day investor bullet. If there were to be an investor market collapse the owner occupiers would then be placed again with the opportunity of a lifetime with record low cash rates coupled with an investor market collapse. Yes, we have seen such markets before although never on this grand scale.</p>
<p>In my opinion, these are the markets you should be closely following on high visual alert.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 56</p>
<p>• Number of houses on the market last week – 45</p>
<p>• Number of houses on the market this week – 43</p>
<p>• Number of apartments on the market this time last year – 53</p>
<p>• Number of apartments on the market last week – 46</p>
<p>• Number of apartments on the market this week – 48</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 0</p>
<p>• Number of houses on the market last week – 5</p>
<p>• Number of houses on the market this week – 6</p>
<p>• Number of apartments on the market this time last year – 8</p>
<p>• Number of apartments on the market last week – 26</p>
<p>• Number of apartments on the market this week – 14</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 0</p>
<p>• Number of houses on the market last week – 7</p>
<p>•Number of houses on the market this week – 11</p>
<p>• Number of apartments on the market this time last year– 42</p>
<p>• Number of apartments on the market last week – 26</p>
<p>*Number of apartments on the market this week – 24</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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robertsimeon-hRNTwJyXkQ

Why property markets keep confusing us: Robert Simeon

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<div>It's almost becoming an annual tradition that the Treasury scrambles until 4.59pm on a Friday before pinging out the Foreign Investment Review Board (FIRB) Annual Report and nipping off for a few cold ones.</div>
<div> </div>
<div>And this year the finance team surely did not disappoint scrimmaging until mere moments before "schooner o'clock" on Friday before delivering the goods!</div>
<div> </div>
<div>Broadly as expected total foreign investment in Australia was very strong in FY2015, increasing by +16.3 percent to $194.6 billion, with real estate (both commercial and residential) the largest sector at $97 billion.</div>
<div> </div>
<div>The total number of real estate approvals increased from 23,428 to 37,347 in FY2015, mainly for new dwellings.</div>
<div> </div>
<div>Real estate approvals have more than tripled in only two years. Bazinga. </div>
<p><a href="/images/2016/04/11/FIRB1.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/04/11/FIRB1.jpg" alt=""></div>
<p> </p>
<div>Proposed investment in real estate soared to $96.9 billion, incorporating $36.2 billion of commercial real estate proposals.</div>
<p><a href="/images/2016/04/11/FIRB2.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/04/11/FIRB2.jpg" alt=""></div>
<p><br><strong><span style="text-decoration: underline;">Foreign investment in residential real estate</span></strong></p>
<div>Proposed foreign investment in residential real estate ripped from $34.7 billion in FY2014 to $60.8 billion in FY2015, a level that could even not have been imagined only two years earlier.<span style="line-height: 1.3em;"> </span>
</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/04/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/04/11/A1.jpg" alt=""></div>
<div class="separator"> </div>
<div>No proposals were rejected in FY2015 following three rejections in the preceding year, although 40 percent of approvals were granted with conditions attached, such as time periods for development or the requirement for temporary residents to sell should they depart Australia (approvals are filtered by specific questions, and therefore are to a large degree self-selecting).</div>
<div> </div>
<div>One divestment order was made in May 2015 by the FIRB, with an established $39 million residential Sydney property having been purchased illegally by a foreign company.</div>
<div> </div>
<div>Thereafter in May last year responsibility for divestment orders was assumed by the Australian Taxation Office (ATO), and a further 26 divestment orders were actioned.</div>
<div> </div>
<div>There was a massive 60 percent increase in the number of residential real estate approvals, with about 80 percent of those approvals for purchases of under $1 million in value (i.e. apartments).</div>
<div> </div>
<div>The bulk of this monster increase in foreign investment related to new real estate, including developer off the plan purchases, meaning that in aggregate foreign investors accounted for nearly 60 percent of all new residential construction.</div>
<div> </div>
<div class="separator"><a href="/images/2016/04/11/A2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/11/A2.jpg" alt=""></div>
<div> </div>
<div><span><strong><span style="text-decoration: underline;">China's rise</span></strong></span></div>
<div> </div>
<div><span>The value of total FIRB approvals for China has increased by around 68 per cent since the prior year and accounted for around 33 per cent of the total value of approvals by foreign country in FY2015.</span></div>
<div> </div>
<div><span>Approvals for all Chinese investment in real estate, incorporating residential and commercial investment, all but doubled to $24.3 billion.</span></div>
<p><a href="/images/2016/04/11/FIRB4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/04/11/FIRB4.jpg" alt=""></div>
<div class="separator"> </div>
<div>Finally, Melbourne retained its crown as the king of foreign investment in terms of residential real estate, reflecting the huge volumes of residential construction in that city, with Sydney comfortably  bopped into second place.</div>
<div> </div>
<div>There was also enormous foreign investment in vacant land in Victoria at $3.4 billion, far exceeding the $1 billion seen in New South Wales, for example.</div>
<div> </div>
<div>The above having been said, Queensland saw far larger increases in foreign residential real estate investment in percentage terms.</div>
<p><a href="/images/2016/04/11/FIRB5.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/04/11/FIRB5.jpg" alt=""></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Foreign investment in Australian residential real estate is something of a double-edged sword.</div>
<div> </div>
<div>It is abundantly clear that foreign investors became more active in the purchase of new dwellings in FY2015, and monumentally so, with most of that foreign interest coming from China.</div>
<div> </div>
<div>Foreign investment has thus been a crucial factor in the strength of this residential construction boom, accounting for more than half of the investment in new dwellings, helping in turn to keep rental growth subdued.  </div>
<div> </div>
<div>On the flip side, foreign developers in Sydney have shown a willingness on occasion to pay prices for development opportunities far in excess of what locals are generally prepared to pay, putting significant upwards pressure on land values.</div>
<div> </div>
<div>Whether this can level of investment in new dwellings can be sustained is less clear as the residential construction cycle passes its peak imminently.</div>
<div> </div>
<div>Clearly there is vast foreign interest in Australian property from China, and it seems reasonable to me to suggest that any holes in the FIRB Annual Report are likely to be errors of omission rather than errors of commission.</div>
<div> </div>
<div>As such, the above information acts as a useful indicator, but it may not be complete.</div>
<div> </div>
<div>With immigration now rising again, the share of overseas born Aussies at a 120 year high, and as the number of international students in Australia skyrockets, the potential pathways for foreign capital to ultimately find its way into established residential property markets are multiplying, particularly in the largest capital cities.<br><br>A final thought or question for you - what percentage share of these new apartments bought by investors from the Chinese mainland ever make it to the local rental market?</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>
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FIRB real estate approvals triple in two years: Pete Wargent

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<p><span>The financial media had an arousing day extrapolating the January Housing Finance figures.</span></p>
<p><span>Although I didn't have time to read all of the articles, the headlines variously describing these data as confirming a housing downturn, a fall, a cooling, a sinking, and for reasons that weren't entirely clear, even "home loans dropping at their fastest rate in 7 years"!</span></p>
<p><span>In actual fact, home loan activity hit its highest level in 7 years last month, while the investor sector has slowed.</span></p>
<p><span>Whatevs, it's fairly typical for total dwelling finance to decline by 20 to 30 percent in January as Aussies focus on the beach or their Christmas turkey, so there is obviously a fair bit of reliance on how accurate or otherwise the seasonal adjustments prove to be.</span></p>
<p><span>Such data series tend to jump around a bit from month to month, so the important thing to do is follow the trend, and to observe the data in conjunction with other metrics.</span></p>
<p><span>The US nonfarm payroll figures represent a fine case in point, with a decline in average earnings of 3 cents in February variously intimated to be one of the biggest falls since Niagara, despite the fact that earnings had increased by 12 cents only in January.</span></p>
<p><span>Back to the housing figures, the original data showed total dwelling finance of $25 billion, which was only slightly higher than the total for the preceding January, underscoring the dampening of investor activity.</span></p>
<p><span>That said, the chart of original data below may simply be mimicking what happened to CoreLogic-RP Data's mortgage index, which observed platform events declining sharply for the same period before recovering strongly in more recent weeks.</span></p>
<p><br><img src="https://4.bp.blogspot.com/-5lbDdHSvarE/Vt_gJZwpUTI/AAAAAAAAbv8/XWUp4pI-wZs/s640/A3.jpg" width="640" height="344"><br><br><span>The most obvious explanation for the pullback is that the crackdown on investor finance has run interference on the pace of lending to that sector, as lenders continue to apply more rigorous criteria.</span><br><br><span>Certainly I've come across numerous examples of stymied demand relating to would-be investors who are needing to try several avenues in order to secure finance, and many are having to wait to secure loans (for example, needing time to save larger deposits, or to prove higher levels of serviceability).</span><br><br><span>With interest rate settings as low as they are, there is evidently an enormous pent up demand for investment loans, but APRA has quite sensibly decided not to let the investor sector get any further ahead of itself.</span><br><br><span>There is litte such weakness to be found in the owner-occupier lending sector, with the value of commitments in January well up on last year, and some +42.3 percent higher than the equivalent figure for January 2012.</span><br><br></p>
<div class="separator"><img src="https://2.bp.blogspot.com/-cclSLOcaxcY/Vt_gJV7wfrI/AAAAAAAAbv4/sov-6_hRf8Q/s640/A2.jpg" width="640" height="356"></div>
<p><br><span>There has been a high volume of refinancing in recent weeks, which muddies the macro picture somewhat.</span><br><br><strong><span style="text-decoration: underline;">Construction boom set to peak</span></strong><br><br><span>The residential construction boom and its associated multiplier effect still has legs, but in reality the industry is already going like the clappers in Sydney and some other cities, to the extent that labour costs have spiked to reflect an industry operating at close to its full capacity.</span><br><br><span>This dynamic cannot continue in perpetuity - nor should it - and the downturn in the residential construction sector will likely begin to reveal itself at some point later in the calendar year.</span><br><br><span>While the data charted below are only indicative rather than definitive, they do appear to support the notion of an imminent peak.</span><br><br><img src="https://2.bp.blogspot.com/-L8_4S3F8M0E/Vt_gLG6bmyI/AAAAAAAAbwI/j2F3V_q7ICU/s640/A6.jpg" width="640" height="348"><br><br><span>Similarly the number of new dwellings financed is tracking at a historically high level, but also looks peaky.</span><br><br></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-BLyGNP_wCq0/Vt_gKf8ZhKI/AAAAAAAAbwA/Mb0ctNU9yT4/s640/A5.jpg" width="640" height="346"></div>
<p><br><strong><span style="text-decoration: underline;">First timers &amp; renovations</span></strong><br><br><span>First homebuyers accounted for only an estimated 15.1 percent of dwellings financed in January which is below the long run average, though the Australian Bureau of Statistics does note that this figure is only an estimate since some lenders are not yet reporting correctly.</span><br><br><span>Although conventional wisdom is that first homebuyers are inactive being priced out of the market, comprehensive surveys carried out by </span>Digital Finance Analytics<span> (DFA) have shown that many are opting to get onto the housing ladder as investors, as those of us active in the market are only too aware.</span><br><br><span>Actual first time buyer purchases have been tracking at around 13,000 per month in line with the long run average, with DFA surveys finding that many are using the "bank of Mum and Dad" (and some fortunate souls are buying for cash, thereby escaping being captured by the housing finance data entirely).</span><br><br><img src="https://1.bp.blogspot.com/-U-3JNA5yqVM/Vt_gKGkaAwI/AAAAAAAAbwE/b2EM0peyfWA/s640/A4.jpg" width="640" height="366"><br><br><span>Finally, it has taken a heck of a long time to get things moving but major renovations activity is at last picking up as households enjoy the wealth effect of cheaper mortgage repayments and rising dwelling prices.</span><br><br><img src="https://1.bp.blogspot.com/-28gyyeZ7js8/Vt_gJZoxSLI/AAAAAAAAbv0/O-qKsnqK880/s640/A1.jpg" width="640" height="352"><br><br><span>Sydney clearly leads the way in terms of renovation activity as one would expect. Outstanding research once gain by CoreLogic-RP Data featured on yesterday's national news showed that 18 of the top 20 suburbs with the highest percentage of home equity are unsurprisingly located in Sydney. The other two are in Melbourne.</span><br><br><span>The 20 suburbs and towns with the most depressed levels of home equity read like a list of yesterday's regional property hotspots, including but not limited to: Moranbah, Gladstone, Mackay, Whitsundays, Bundaberg, Mount Isa, Rockhampton, Whyalla, Greater Geraldton, and Muswellbrook.</span><br><br><span>Just as in regional New Zealand, the commodities crash has hit much of regional Australia hard.</span><br><br><span>Interestingly, we are presently in the midst of a commodity price mini-boom with oil prices rebounding and iron ore futures again hitting "limit up" during today's trade to hit their highest level since July 2015.</span><br><br><span>While this is potentially a welcome windfall for the budget, don't be headfaked by it - the resources construction collapse </span>still has a long, long way to run<span>, and the deleterious impacts will be felt across many regions for years to come.</span><br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><span>Overall, it would be premature extrapolation to read too much in the January figures, even though the trend certainly points towards a considerably lower level of investor activity in 2016 than was the case at the mid-2015 peak.</span><br><br><span>As always, it also pays to recognise that there is one singular "housing market", since some markets are performing very strongly, helping to offset the poor perfomance in many resources regions.</span><br><br><span>News of a downturn would certainly be news to residents of Kingsford in Sydney, where an </span>unrenovated dump<span> on a 499.5 square metre plot sold for a an outrageous $3,065,000 on Saturday (this was more than $1 million over the reserve price, and note the price guide!), having previously fetched $1,015,000 back in March 2008, when many commentators were predicting a price correction.</span><br><br><span>Surry Hills, an inner Sydney suburb with a vacancy rate of just 1.1 per cent, has recorded a series of sprightly results, and doubtless there are plenty of other examples in the inner suburbs of Sydney. House prices in Brisbane are also rising, as I noted yesterday.</span></p>
<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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Were the January housing figures really that bad? Pete Wargent

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<p>This week 1,426 auctions were held across the combined capital cities, substantially lower than the 2,304 held last week and the 2,556 held one year ago.</p>
<p>This coming Monday is a public holiday for four out of the eight states and territories, which has been a key factor in the fall in auction volumes. The combined capital city clearance rate softened this week, down from 68.6 percent last week to 66.4 percent this week.</p>
<p>The two largest auction markets, Melbourne and Sydney, saw their preliminary clearance remain above the 70 percent mark, with Sydney at 72 percent and Melbourne at 70.5 percent, while the highest clearance rate was in Canberra where 75 percent of auctions cleared over the weekend. </p>
<p>The capital city weighted average was pulled lower by softer clearance rates in Brisbane (44 percent), Perth (46.7 percent) and Tasmania (33.3 percent). One year ago, the weighted average clearance rate was 77.2 percent, substantially stronger than the current result.</p>
<p><a href="/images/2016/03/14/20160314-Capital-city.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/14/20160314-Capital-city.png" alt=""></p>
<p>Only 414 <strong>Melbourne</strong> auctions were held this week with a preliminary clearance rate of 70.5 percent. This week’s result shows a slight decrease in the clearance rate for the city, after final results saw Melbourne’s clearance rate at 72.1 percent last week. Over the corresponding week last year, Melbourne’s clearance rate was 78.0 percent across 1,269 auctions. Although the city’s auction activity was quieter this week, there were still sub-regions where auction volumes were relatively high, with Melbourne’s Inner region host to 74 auctions and the West region host to 56 auctions. In terms of clearance rate, North West was the best performer, with 80.6 percent of reported auctions successful this week, followed by Inner South (79.2 percent).</p>
<p><a href="/images/2016/03/14/20160314-Melbourne.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/14/20160314-Melbourne.png" alt=""></p>
<p><strong>Sydney</strong> was the busiest capital city auction market this week, with 680 auctions held and a preliminary clearance rate of 72.0 percent. On the final numbers for last week, 68.7 percent of Sydney auctions were successful, while one year ago the clearance rate was 83.9 percent, significantly stronger than the current results for the city. The number of homes taken to auction this year is also lower than last year when 926 auctions were held. Sydney’s strongest performing sub-regions this week were Ryde (86.2per cent), Eastern Suburbs (84.5 percent) and Inner West (78.6 percent).</p>
<p><a href="/images/2016/03/14/20160314-Sydney.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/14/20160314-Sydney.png" alt=""></p>
<p>This week 44.0 percent of <strong>Brisbane</strong> auctions were successful based on preliminary results. There were 151 auctions held in the city, up from 133 last week and 132 at the same time last year. Last week Brisbane’s clearance rate was 50.9 percent, while one year ago it was 47.0 percent. Further south, on the <strong>Gold</strong> <strong>Coast</strong> 34 auctions were held this week. Preliminary results show 16 auction outcomes having been reported with a clearance rate of 50.0 percent.</p>
<p><a href="/images/2016/03/14/20160314-Brisbane-1.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/14/20160314-Brisbane-1.png" alt=""> </p>
<p><strong>Adelaide’s</strong> preliminary results show 54.2 percent of auctions were successful this week, compared to 65.9 per cent last week and 66.7 percent one year ago. The number of auctions across the city fell to 93 this week, compared to 99 over the previous week.</p>
<p><a href="/images/2016/03/14/20160314-Adelaide.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/14/20160314-Adelaide.png" alt=""></p>
<p>There were 35 <strong>Perth</strong> auctions held this week. Perth’s clearance rate shows a higher level of volatility due to the small proportion of homes being sold via the auction method.  Over the year to date, Perth’s clearance rate has been recorded as low as 21.7 percent the week before last and as high as 46.7 percent this week, across just 15 results. Prior to this week, the highest result for the city was recorded over the final week of January when  44 percent of the 25 reported auctions were successful.</p>
<p><strong>Canberra</strong> has recorded another strong result this week with a preliminary clearance rate of 75.0 percent. The number of homes auctioned across the city this week was significantly lower than last week, falling from 88 to 34. At the same time last year 68.8 percent of the 71 auctions were sold.</p>
<p>There were 12 <strong>Tasmanian</strong> auction results reported this week and based on these preliminary results, 4 have sold.</p>
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Preliminary clearance rate remains below 70 percent for the second week in a row: CoreLogic RP Data's Shana Miller

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<p class="Body">Most property investors are out there chasing the big growth. Many of them end up disappointed citizens, especially those who chase it in the wrong places, like resources-influenced regional centres.</p>
<p class="Body">Very few places sustain that big growth for more than short periods.</p>
<p class="Body"><span style="line-height: 1.3em;">There’s a lot to be said for a less popular but much safer and often more profitable policy: chasing consistency.</span></p>
<p class="Body">In our quarterly survey of sales activity around Australia, a report we call <em>The Price Predictor Index</em>, we have a prominent spot for the consistent markets. I tend to think of them as The Stayers of residential real estate.</p>
<p>They sit in the middle of the market, between the growth locations and the declining ones. These <em>Consistency</em> markets record steady rates of sale, quarter after quarter, year after year.</p>
<p>These locations, above all else, represent safety for investors. They are usually not boom markets, but have the valuable quality of solidity and consistency. And markets with this high level of even performance usually produce solid price growth over time.</p>
<p>Bowral in the Southern Highlands of NSW is one of those wonderfully consistent markets. It tends to sell between 100 and 110 homes every quarter, regardless of what’s happening in the wider market or the general economy.</p>
<p>In the past 12 months its median house price has risen 14% to $710,000 – and over the longer-term it has averaged 7% per year for the past decade.</p>
<p>The Sydney suburb of Sutherland has a modest median price, by Sydney standards, of $780,000 but it is good performer on price growth, on the back on a steady sales performance.</p>
<p>Over the past three years it has recorded between 78 and 88 sales virtually every quarter. No dramatic peaks and troughs, just good steady performance. Its median has grown 13% in the past year and it has averaged 9% per year over the past decade, which means values doubling in eight years.</p>
<p>The Brisbane suburb of Bulimba is another of those stayers – selling a similar number of properties quarter after quarter, year after year. Its median price has grown an average of 7% per year over 10 years, including 9% in the past 12 months, and its median is now above a million dollars.</p>
<p>These case studies – and there are many more like them - show that <em>Consistency</em> markets can produce good price growth and, in particular, steady long-term capital growth rates.</p>
<p>And they can be found anywhere, including in city markets that are generally in decline.</p>
<p>Perth is towards the bottom of the pile in terms of capital city markets. In the new Autumn edition of <em>The Price Predictor Index, </em>we can now identify only four suburbs with any kind of forward momentum in the entire Perth metropolitan area. But one Perth suburb has grabbed our nomination as the most consistent market in the nation.</p>
<p>Middle-market Willeton has sold between 80 and 87 homes per quarter in 10 of the past 11 quarters (with one quarter recording 100 sales). In the past six quarters, sales have been 83, 84, 83, 86, 87 and 81. Willeton is in the Canning LGA in the southern suburbs of Perth and currently has a median house price of $755,000.</p>
<p>While Perth prices generally are going backwards, three years after that market peaked, Willeton’s median price grew 3.4% in the past 12 months and has grown an average 7% per year over the past three years. Its long-term performance is 8.5% per year, which means values doubling in 8-9 years.</p>
<p>It’s a good example of how The Stayers perform, even when surrounded by a broader market in decline.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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The Stayers perform, even when the market is in decline: Terry Ryder

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<p>The release of the 2013/14 financial year taxation statistics by the Australian Taxation Office (ATO) will no doubt add further fuel to the ongoing debate over the who, what, where, and why of rental property ownership.</p>
<p><span>Since I work in the industry and view properties more or less all the time, I don't need to look at any stats to know that investment properties are owned by a wide range of Australian income earners, largely "middle Australia". </span></p>
<p><span>I know, because these people include my clients, because I can see it for myself every time I go to viewings, and most significantly, because I'm a property market insider.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The genuinely wealthy generally have better things to do with their cash then invest in low-yielding residential property.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Nevertheless, I would hopefully call out others on their useless anecdotes, so I shall do so on myself. </span></p>
<p><span>Here are the headline numbers!</span></p>
<p><a href="/images/2016/03/29/ATO1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/29/ATO1.jpg" alt=""></p>
<p><span>The figures show that 15.7 per cent of those lodging a tax return or 2,033,973 individuals owned a rental in FY2014, with the vast majority owning only one or two properties.</span></p>
<p><span>The long run numbers speak for themselves, with rental property ownership becoming increasingly popular and accessible, and showing a fivefold increase since 1980, or a near-fourfold increase as a share of the total number of taxpayers. </span></p>
<p><span>So much for rentals only being for the rich - there are now, quite literally, millions of landlords.</span></p>
<p><span>Happily for landlords, fewer of them declared a net rental loss in financial year 2014. </span></p>
<p><span><strong>Rental market trends - how much?</strong></span></p>
<p><span>Adding a bit more texture on what happened to the rental markets and negative gearing deductions in financial year 2014, the ATO Taxation Statistics for 2013/14 showed that net rental income losses fell by more than half from $7.9 billion to $3.7 billion over the last two years. </span></p>
<p><a href="/images/2016/03/29/NG.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/29/NG.jpg" alt=""></p>
<p><span>The total rental loss claimed fell from $12.04 billion to $10.97 billion, but remember that negative gearing losses are a timing difference only, and as such these are not amounts which could be "saved" from the budget.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The share of those 2.03 million folk who own a loss-making investment property fell from 64 percent to 62 percent.</span></p>
<p><span>OK, so that's the summary data. </span></p>
<p><span>But what does it actually mean?</span></p>
<p><span>In terms of what this means in reality for the typical individual owning a property, the average rental loss has declined from well over five grand at $5,096 in the 2008 tax year to just $1,828 by FY2014, a whopping decline of more than 64 percent. </span></p>
<p><a href="/images/2016/03/29/NG2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/29/NG2.jpg" alt=""></p>
<p><span>Furthermore, with the cash rate falling several times further since 1 July 2013, average net rental loss will decline for the next two or three tax years to come (just ask any capital city based landlord about their 2015 tax returns).</span></p>
<p><span><strong>Rental market trends - who?</strong></span><span style="line-height: 1.3em;"> </span></p>
<p><span>The Tax Office also served up some interesting data on who is recording net rental losses. </span></p>
<p><span>In terms of additional investors in the financial year, the numbers of individuals with a rental interest and a taxable income between $37,000 and $80,000 increased, if only moderately, with those within this taxable income bracket racking up a total of 707,000 taxpayers with a net rental interest. </span></p>
<p><span>However, the greatest increase in volume of overall investors was reflected in an extra 42,400 individuals in the taxable income bracket of $80,001 to $180,000.</span></p>
<p><span>By way of contrast there were only an additional 9,000 individuals with an interest in the $180,000 to $250,000 taxable income bracket, and an additional 5,000 individuals in the $250,000 to $500,000 bracket.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Looked at another way by income, 767,000 of those declaring a taxable income of under $80,000 accounted for 61 per cent of total net rental losses.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>With the largest increase in net rental interest over the year, and it does confirm that to a substantial extent "middle Australia" is buying into residential investment property, and so doing is not only "for the rich".</span><span style="line-height: 1.3em;"> </span></p>
<p><span>It is worth highlighting here, however, that the "taxable income" declared on tax returns is reduced by negative gearing losses. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>Thus for example it should be acknowledged  that a person declaring a net rental interest and taxable income of under $80,000 could theoretically have income of $81,828 before an average net rental loss is deducted.</span></p>
<p><span>The overwhelming majority of landlords continue to only own one or two rental properties. </span></p>
<p><span>Naturally when analysing the figures by age younger investors remain the most likely to rely upon negative gearing, with 82 per cent of all property investors aged between 18 and 29 declaring a net rental loss.</span></p>
<p><span>As the population ages it is little surprise to discover that more than one fifth of investors are now aged over 60, a share that will likely increase over time.</span></p>
<p><span>It goes almost without saying that the top 20 percent of income earners owe the bulk of investment housing debt, a point highlighted by the Reserve Bank of Australia as favourable for economic stability, since these investors are also best placed to service their debt. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>Finally, one other interesting trend was the surge in sundry rental deductions, suggesting that with the rental market softening and becoming more competitive landlords have had an increasing propensity to spend on property improvements, which has been of significant benefit to the trades sector. </span></p>
<p><span><strong>The wrap</strong></span><span style="line-height: 1.3em;"> </span></p>
<p><span>Overall, the figures again showed that rental properties are owned by a broad range of Australians by income, comprising a total of well over two million taxpayers.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The good news from a budget repair perspective is that net rental losses have declined by well over half over the past two tax years alone.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>What's more, with interest rates since falling to record lows, we can look forward to seeing further declines over the next few years of data.</span></p>
<p><span> </span></p>
<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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New rental market trends: Pete Wargent

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<p>Across the combined capital cities, the auction clearance rate rose slightly to 69.5 percent last week, from 68.8 percent the previous week.</p>
<p>The number of homes taken to auction, however, fell to just 533 across the capital city markets, with Sydney host to the majority of auctions last week (332).</p>
<p><a href="/images/2016/03/29/20160329-Combined-capital-city.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/29/20160329-Combined-capital-city.png" alt=""></p>
<p>Preliminary results for Sydney show that 77.4 percent of reported auctions (230) were successful, the strongest clearance rate for the city since mid-February this year, however it is likely that this will revise down as further results are captured over the coming days.</p>
<p>In Melbourne, traditionally the country’s largest auction market, there were just 79 auctions held last week, with 54 results reported so far and a clearance rate of 74.1 percent.</p>
<p><a href="/images/2016/03/29/20160329-Upcoming.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/29/20160329-Upcoming.png" alt=""></p>
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Long weekend returns a slight rise in capital city clearance rate: CoreLogic RP Data's Shana Miller

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<p><span style="line-height: 1.3em;">According to the CoreLogic RP Data Stratified Hedonic Index, the most affordable quarter of suburbs recorded annual value growth of 6.6 percent compared to a 6.4 percent rise across the middle market, and a 7.0 percent rise across the most expensive suburbs. </span></p>
<p><span style="line-height: 1.3em;">While the annual figures show the most expensive suburbs recorded the strongest value growth over the past 3 months, value rises have been more uniform and with little difference between the broad value-based segments of the market. </span></p>
<p><span style="line-height: 1.3em;">Across the most affordable suburbs, we’ve seen values move 1.8 percent higher over the March quarter followed by the most expensive suburbs move by 1.7 percent, and the middle market suburbs by 1.6 percent.</span></p>
<p><a href="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.40.49%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.40.49%20PM.png" alt=""></span></p>
<p> </p>
<p><span style="line-height: 1.3em;">Home values across the city increased by 7.4 percent over the past year after annual growth peaked at 18.4 percent in July 2015 Over the past year the most affordable suburbs have seen values rise by 8.0 percent. </span></p>
<p><span style="line-height: 1.3em;">The middle market values are 6.6 percent higher and the most expensive suburbs have recorded value rises of 8.8 percent. </span></p>
<p><span style="line-height: 1.3em;">The annual rate of value growth is slowing across each segment, however the premium end of the market continues to record higher rates of capital gain.</span></p>
<p><strong style="line-height: 1.3em;">Sydney: </strong><span style="line-height: 1.3em;">Home values across the city increased by 7.4 percent over the past year after annual growth peaked at 18.4 percent in July 2015. Over the past year the most affordable suburbs have seen values rise by 8.0 percent. The middle market values are 6.6 percent higher and the most expensive suburbs have recorded value rises of 8.8 percent.</span></p>
<p><span style="line-height: 1.3em;">The annual rate of value growth is slowing across each segment, however the premium end of the market continues to record higher rates of capital gain.</span></p>
<p> </p>
<p><strong style="line-height: 1.3em;">Melbourne</strong><span style="line-height: 1.3em;">: Recorded home value growth of 9.8 percent over the past year, down from a recent peak of 14.2 percent in September 2015. </span></p>
<p><span style="line-height: 1.3em;">The most affordable suburbs recorded value rises of 9.7 percent compared to 10.5 percent across the middle market and 10.0 percent across the most expensive suburbs. Growth is fairly steady across the affordable market but slowing across the middle and most expensive suburbs.</span></p>
<p><strong>Brisbane</strong>: Home values increased by 4.5 percent over the past year with the rate of value growth higher than it was a year ago. The most expensive suburbs recorded value growth of 4.6 percent over the past year compared to a 5.1 percent rise across the middle of the market.</p>
<p>The most affordable suburbs saw a 5.7 percent rise. Annual rates of growth are generally trending higher across each segment.</p>
<p><strong>Adelaide</strong>: Home value changes have been fairly steady having increased by 3.2 percent over the past year. The most expensive suburbs saw values rise by 3.2 percent compared to a 3.1 percent increase across the middle market and a 2.9 percent increase across the most affordable suburbs.</p>
<p>Across each segment growth is fairly steady with the rate of capital gain holding reasonably firm over the past twelve months.</p>
<p><strong>Perth</strong>: The only major capital city to see value falls over the past year, however, the annual rate of decline has started to improve, easing from - 4.1 percent in November 2015 to the current annual decline of -2.0 percent. Across the broad valuation segments, home values have fallen -0.5 percent across the most affordable suburbs, and are -1.5 percent lower across the middle market and 2.1 percent lower across the most expensive suburbs.</p>
<p>Across each segment values are still falling but the rate of decline in values has slowed.</p>
<p>The CoreLogic RP Data Stratified Home Value Index highlights the importance of looking beneath the broad headline figures.</p>
<p><a href="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.42.39%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.42.39%20PM.png" alt=""></p>
<p> </p>
<p>Markets within a city can be performing quite differently to what the over-arching statistics for a capital city market shows, not only across valuation based segments of the market, but also across housing types and geographically.</p>
<p><span> </span><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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