<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

<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>Property investors will never let the facts get in the way of an entrenched attitude. </p>
<p>Clinging to cherished beliefs, most of them based on myth and misinformation, is the hallmark of the typical Aussie wannabe investor - and the reason why most of them get ordinary results from buying at the wrong time in the wrong place.</p>
<p>Against that background, I find that the hardest sell in Australian real estate is trying to convince people that Adelaide is not only worth considering, but is one of the very best locations to target for a combination of affordability, value for money, good yields and potential for capital growth. And that regional South Australia has been one of the nation’s best performers in recent times. </p>
<p>I will, nevertheless, persist.</p>
<p class="BodyCopy">The standout consistency of Adelaide real estate is demonstrated by our latest (Winter 2020) survey of sales activity and prices. The city’s resistance to the forces of Covid-19 is shown by the number of suburbs with sales growth and the number with annual uplift in their median prices.</p>
<p class="BodyCopy">The Winter 2020 survey has identified 51 Adelaide suburbs with rising sales activity. This compares with just 32 in the much larger city of Melbourne.</p>
<p class="BodyCopy">In terms of price performance, almost two-thirds of Adelaide suburbs have recorded annual growth in their median house prices, almost identical to the result three months ago in our Autumn 2020 survey. Once again, Adelaide is delivering on its reputation for steadiness.</p>
<p class="BodyCopy">Here’s what I said about Adelaide in the Price Predictor Index published nine months ago: “Adelaide is the standout market in capital city Australia. Its consistency of sales performance is remarkable and two-thirds of its suburbs have had price growth in the past year, led by double-digit rises in top-end markets.</p>
<p class="BodyCopy">“Adelaide is undoubtedly Australia’s most under-rated market. It keeps delivering good sales activity and above-average results on house prices.</p>
<p class="BodyCopy">“In the five years Hotspotting has been conducting quarterly surveys of sales activity and price trends, Adelaide has never delivered a poor result. Most cities have had peaks and troughs in that time, but Adelaide just keeps on producing steady markets with consistent demand.”</p>
<p class="BodyCopy">Nothing has changed, despite the negative forces of Covid-19. Adelaide and South Australia have handled the pandemic better, in health terms, than any other state and its economy has showed resilience. This has been reflected in its real estate markets.</p>
<p class="BodyCopy">One of the strengths of the Adelaide market is that the prosperity is widely spread across the metropolitan area. There are 10 Local Government Areas with three or more suburbs with upwardly-mobile markets.</p>
<p class="BodyCopy">While sources such as CoreLogic and SQM Research often report annual growth of only 1-2% in Adelaide house prices, these generalised figures disguise individual areas which have done better. Our suburb-by-suburb analysis shows that over 60% of Adelaide suburbs have median house prices higher than a year ago. </p>
<p class="BodyCopy">Regional South Australia is the most surprising market in the nation. There is uplift in sales activity in most locations across the state and the vast majority of regional towns have recorded price growth in the past 12 months, with most up by more than 5%.</p>
<p class="BodyCopy">This market has been a consistently strong performer in recent years but is unlikely to ever receive any media recognition for it.</p>
<p class="BodyCopy">In the Spring 2019 edition of <em>The Price Predictor Index</em> nine months ago, we commented: “It would surprise many property observers to learn that three-quarters of the towns in Regional South Australia have recorded price growth in the past 12 months, including some which have achieved double-digit increases.”</p>
<p class="BodyCopy">In the Autumn 2020 edition three months ago we said: “Regional SA continues to perform, with significant increases in median house prices in many locations. And we now have steady upward trends in sales activity in areas that have not previously featured …”</p>
<p class="BodyCopy">And, notwithstanding the impacts of the pandemic period, Regional SA continues to deliver strong results. Of the 33 locations ranked in our survey, 17 are rated as rising markets, six are ranked as consistency markets and the other 10 are plateau markets.</p>
<p class="BodyCopy">Whyalla is continuing its recovery; Mount Gambier continues to be a growth market; and the Victor Harbor area has enhanced its status as a solid performer.</p>
<p class="BodyCopy">There has been a big revival in prices in Whyalla, which was previously mired in a significant downturn. In the past 12 months, growth in median prices has included 29% in Whyalla, 31% in both Whyalla Stuart and Whyalla Jenkins, 20% in Whyalla Playford and 12% in Whyalla Norrie.</p>
<p class="BodyCopy">To put this into perspective, these locations are rising from a very low base. Whyalla Stuart’s median house price has increased 31% in 12 months but remains at just $130,000. Whyalla Norrie’s median house price is just $145,000, despite an annual rise of 12%.</p>
<p>Nevertheless, prices are heading in the right direction, on the back of improved sales activity. </p>
<p>Other locations to record good median price growth over the past 12 months include Tanunda (12%), Naracoorte (10%), Kapunda (11%), Millicent (10%) and Mannum (10%). In the busy markets of the Alexandrina LGA, Middleton is up 10% and Hindmarsh Island has risen 16%.</p>
<p class="BodyCopy">Alexandrina, south-east of Adelaide, continues to be the individual star in terms of sales activity. Most of the main centres in this municipality – Goolwa, Goolwa South, Hindmarsh Island, Middleton and Strathalbyn – have been classified as rising markets in our latest survey.</p>
<p class="BodyCopy">The Victor Harbor area is the other standout. This LGA often features in our reports as the steadiest of performers. In this new survey, Hayborough, McCracken, Victor Harbor and Port Elliot are all classified as rising markets. Prices are rising moderately in this market, generally around 3-5% in the past year. </p>
<p>T<em>erry Ryder is the founder of hotspotting.com.au</em></p>
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terryryder-YECXbqmri2

Adelaide one of the best real estate performers in Australia: Hotspotting’s Terry Ryder

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<p class="legacy">GUEST OBSAERVATION</p>
<p>Australian economists narrowly back a wage freeze in the minimum wage case now before the <a href="https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2019-20#field-content-0-heading">Fair Work Commission</a>, a freeze that could flow through to millions of Australians on awards and affect the wages of millions more through the enterprise bargaining process.</p>
<p>The annual case is in its final stages after having begun before the coronavirus crisis and been extended to take account of its implications.</p>
<p>In its submission, the Australian government called for a “<a href="https://www.fwc.gov.au/documents/wage-reviews/2019-20/submissions/ausgov-sub-awr1920.pdf">cautious approach</a>”, prioritising the need to keep Australians in jobs and maintain the viability of businesses.</p>
<p>The minimum wage was last frozen in <a href="https://www.fwc.gov.au/documents/sites/afpc2009wagereview/documents/afpc2009wsd2.pdf">2009</a> amid concern about unemployment during the global financial crisis.</p>
<p>The Economic Society of Australia and The Conversation polled 42 of Australia’s leading economists in the fields of microeconomics, macroeconomics, economic modelling and public policy.</p>
<p>Among them were former and current government advisers, a former and current member of the Reserve Bank board, and a former head of the Australian Fair Pay Commission.</p>
<p>Each was asked whether they agreed, disagreed, or strongly agreed or strongly disagreed with this proposition:</p>
<p><em>A freeze in the minimum wage will support Australia’s economic recovery</em></p>
<p>Each was asked to rate the confidence they had in their opinion, and to provide reasons, which are published in full in The Conversation.</p>
<p>Half of those surveyed – 21 out of 42 – backed the proposition, seven of them “strongly”.</p>
<p>Nineteen disagreed, seven strongly. Two were undecided.</p>
<p><img src="https://images.theconversation.com/files/339992/original/file-20200605-176538-1b2nkb2.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></p>
<p><span class="attribution"><span class="source">The Conversation</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span></p>
<p>The minimum adult wage is <a href="https://www.fwc.gov.au/awards-and-agreements/minimum-wages-conditions/national-minimum-wage-orders">A$19.49 per hour</a>.</p>
<p>There was agreement among most of those surveyed that, in normal times, normal increases in the minimum wage have little impact on employment – a view backed by <a href="https://www.rba.gov.au/publications/bulletin/2018/sep/the-effect-of-minimum-wage-increases-on-wages-hours-worked-and-job-loss">Australian</a> and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-8543.2009.00723.x">international</a> research.</p>
<p>But several of those surveyed pointed out that these are not normal times.</p>
<p><strong>Bad times for employers…</strong></p>
<p><a href="https://theconversation.com/profiles/gigi-foster-194/articles">Gigi Foster</a> said many businesses were operating closer to the margin of profitability than ever before, and were likely to stay that way for many months.</p>
<p><a href="https://esacentral.org.au/news/16047/rana-roy/?type_fr=369">Rana Roy</a> quoted one the pioneers of modern economics, <a href="https://www.econlib.org/library/Enc/bios/Robinson">Joan Robinson</a>, as observing in 1962 that the misery of being exploited by capitalists was “nothing compared to the misery of not being exploited at all”.</p>
<p><a href="https://theconversation.com/profiles/john-freebairn-90/articles">John Freebairn</a> argued that a freeze of labour costs, together with very low expected inflation, could provide a key element of certainty in the uncertain world facing households, businesses and governments.</p>
<p><a href="https://theconversation.com/profiles/robert-breunig-167291/articles">Robert Breunig</a> and <a href="https://theconversation.com/profiles/tony-makin-140508/articles">Tony Makin</a> suggested that with prices stable or possibly falling, a freeze in the minimum wage might cost workers little or nothing in terms of purchasing power.</p>
<p><a href="https://theconversation.com/profiles/guay-lim-103128/articles">Guay Lim</a> and several others said if the government wanted the economic stimulus that would come from an increase in the minimum wage, it had other ways of bringing it about without making conditions more difficult for employers.</p>
<p><strong>…and bad times for workers</strong></p>
<p>Those supporting an increase saw it as a way to bolster consumer confidence and redress unusually weak worker bargaining power.</p>
<p>Wage growth before the coronavirus hit was historically low at <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6345.0">close to 2%</a>, an outcome so weak for so long that in <a href="https://www.fwc.gov.au/documents/wage-reviews/2018-19/decisions/2019fwcfb3501.pdf">2018</a> and <a href="https://www.fwc.gov.au/documents/sites/wagereview2018/decisions/2018fwcfb3500-summary.pdf">2019</a> the Commission awarded much bigger increases in the minimum wage, arguing employers could afford them.</p>
<p><a href="https://theconversation.com/profiles/james-morley-9918/articles">James Morley</a> was concerned that a freeze in the minimum wage would “mostly just lock in” inflation expectations that were already too low.</p>
<p><a href="http://www.appliedeconomics.com.au/people/">Peter Abelson</a> said labour productivity rose with respect for workers and fell with disrespect. A wage freeze would disrespect workers.</p>
<p><a href="https://theconversation.com/profiles/saul-eslake-665/articles">Saul Eslake</a> proposed a middle way, deferring a decision rather than granting no increase. He said the increase that was eventually granted should do no more than keep pace with inflation.</p>
<p>The economists were asked to rate their confidence in their responses on a scale of 1 to 10.</p>
<p>Unweighted for confidence, 45.3% of those surveyed opposed a wage freeze. When weighted for (relatively weak) confidence, opposition fell to 43.5%.</p>
<p><img src="https://images.theconversation.com/files/339993/original/file-20200605-176546-1u10d49.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""><span class="attribution"><span class="source">The Conversation</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span></p>
<p>Unweighted for confidence, half of those surveyed supported the proposition that a freeze in the minimum wage would assist Australia’s economic recovery.</p>
<p><strong>Weighted for confidence, support grew to 51.6%</strong></p>
<p>The Fair Work Commission is required to complete its review by the <a href="https://www.fwc.gov.au/documents/wage-reviews/2019-20/decisions/2020fwcfb1804.docx">end of this month</a>.<img src="https://counter.theconversation.com/content/140163/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><em><a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a>.</em></p>
<p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/economists-back-wage-freeze-21-19-in-new-economic-society-conversation-survey-140163">original article</a>.</em></p>
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j.ballantyne1990-6AQqhLzZaK

Australian economists narrowly backing wage freeze

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<p><strong>EXPERT OBSERVATION</strong></p>
<p>A housing boom that lasted from the mid-1980s with only minor interruptions has added to rising income inequality in Australia. Yet an impending housing market bust, triggered by the coronavirus pandemic and the resulting spike in unemployment, will not restore greater equality. On the contrary, recent history shows housing busts can worsen inequality.</p>
<p>Those who benefit most from a boom are not those who pay the price when it busts. And those harmed by the boom often become even more vulnerable during the bust.</p>
<p>Our analysis highlights the risks for people who bought their first home at the peak of the boom. We estimate 24,000 households are at very high risk because they took out large loans that might soon exceed their home value and also work in sectors with high job losses. Another 135,200 are at high risk and 121,000 are at moderate risk.</p>
<p><strong>Coronavirus has set up a housing bust</strong></p>
<p>Experts have long cited an upsurge in unemployment as the main threat to house price growth. This risk became reality with the coronavirus pandemic. Over the seven weeks from mid-March to early May, jobs fell by 7.3%.</p>
<p>Unless employment rapidly recovers, the housing market is facing a major downturn. In one worst-case scenario released by the Commonwealth Bank, house prices could fall by up to 32%  over the next two years.</p>
<p><strong>Recent first-time buyers are most vulnerable</strong></p>
<p>Households that can hold on to their homes and weather the storm until the market recovers are not substantially harmed. Established owners, who bought their homes before or early in the boom years, have enjoyed the largest increase in their home values, and the largest reductions in their debt. This puts them in a position of relative resilience to a housing market bust.</p>
<p>In contrast, evidence from the 2008 housing crisis in the United States shows which households are most at risk. These were households that bought their first home with no deposit, or a very low one, in the period leading up to the 2008 crash. The crash left these households “underwater”, trapped with an asset worth less than their mortgage debt. Many defaulted on their mortgages, fuelling the housing market’s downward spiral.</p>
<p>The Australian housing market and financial institutions differ from those in the United States in 2008 in fundamental ways. Still, Australian households that bought their houses at the peak of the boom and have now lost their jobs in the coronavirus pandemic are facing the highest risk.</p>
<p>These include 24,000 recent (2014-5 to 2017-18) first home buyers who borrowed over 80% of the value of their home and were employed in industries where jobs have now collapsed. Another 135,200 recent first home buyers with high loan-to-valuation ratios are also at risk of going “underwater”, with homes worth less than their debt. Many of them are also in precarious employment, irrespective of the pandemic. (These figures do not include first home buyers in 2018-19, for which data are not yet available.)</p>
<p><strong>Renters’ relief could be short-lived</strong></p>
<p>Many private renters hope a housing downturn will translate into lower rents and perhaps give them a chance to buy their first home in a more affordable market. However, this is not always the case in a downturn. In the US from 2007 to 2009, despite declining house prices, rental affordability stress has only increased.</p>
<p>In Australia, the sudden decline in international students and short-term rentals has increased long-term rental vacancies in some areas. Reports suggest rents are going down, especially at the upper end of some rental markets.</p>
<p>However, in the longer run, the slowdown in housing construction will create supply shortages, leaving rental vacancies low and rents high. Many landlords, mostly “mum and dad” investors, have taken large loans to finance their property investment. They will need to keep rents high to hold on to their investment properties.</p>
<p>Lower house prices will enable some households to become home owners for the first time, after being locked out of the market during the boom years. These households could benefit from a coronavirus housing bust if the market then recovers. Even so, their gains will do little to change the overall trend of rising inequality made worse by the housing downturn.</p>
<p><strong>We need to flatten out booms and busts</strong></p>
<p>Improved housing affordability is necessary to reduce social and economic inequality. A housing downturn will reduce house prices. But this downturn, when coupled with rising unemployment, will not deliver greater equality, especially if it’s followed by yet another boom.</p>
<p>Australia has flattened the curve of COVID-19 infections. To be successful in reducing inequality, we need to flatten the curve of both booms and busts in the housing market cycle. And only a thorough overhaul of national housing policy will achieve that.</p>
<p><em><span style="font-size: 12.16px;"><strong>Ilan Wiesel</strong> is a Senior Lecturer in Urban Geography at the University of Melbourne</span></em></p>
<p><em><strong>Liss Ralston</strong> is an Urban Statistician at the Centre for Urban Transitions - Swinburne University of Technology</em></p>
<p><em><strong>Wendy Stone</strong> is an Associate Professor at the Centre for Urban Transitions, and the Director of the Australian Housing and Urban Research Institute at the Swinburne University of Technology</em></p>
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Housing boom propelled inequality, but coronavirus bust will skyrocket it

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<p>After a roughly 35% plunge from their February high point to their lows around 23 March on fears regarding of global recession on the back of the coronavirus shutdowns, share markets have since rebounded sharply, led by US shares.</p>
<p>The rally has pushed the Australian ASX 200 back through 6000 for the first time since March.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%201.jpg" target="_blank">Click here</a> enlarge: </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/10/share%20market%201.jpg" alt=""></p>
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<p><span>A common concern is that the rebound in share markets is </span><span>“too optimistic” and “irrational” – </span><span>how can share markets rebound so rapidly when economic conditions are so weak, coronavirus uncertainty remains high, the US is seeing civil unrest and US/China tensions are rising? </span></p>
<p><span>I must admit that I have also been surprised by the speed of the rebound and think maybe the markets are ahead of themselves. But I have seen this happen before and it reminds me of the quotation from the investor Sir </span><span>John Templeton “bull markets are born on </span><span>pessimism, grow on scepticism, mature on optimism and die of </span><span>euphoria” as this rally has occurr</span><span>ed against a lot of pessimism with shares climbing a wall of worry. </span></p>
<p><span>But as the quote reminds us, </span><span>that’s </span><span>what they often do. The plunge in shares into March led the coronavirus hit to activity &amp; fear of recession on the way down and in the process surprised many at the severity of the fall and now it</span><span>’</span><span>s led on the way up despite still lots of worries.</span></p>
<p><strong>Key drivers of the rally</strong></p>
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<p><span>So </span><span>what’s </span><span>driven the rally? In early April we listed </span><span>signposts </span><span>to watch as to whether shares have bottomed. The key signposts are updated in this table.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%202.jpg" target="_blank">Click here</a> to enlarge: </p>
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<p><span>Virtually all of the signposts now tick off positively for developed countries. These are highlighted in green. So, put simply the rebound in shares has been driven by a combination of:<br></span></p>
<ul>
<li>Falling new coronavirus cases in developed countries.</li>
</ul>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%203.jpg" target="_blank">Click here </a>to enlarge: </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/10/share%20market%203.jpg" alt=""></p>
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<li>Positive news regarding anti-virals and vaccines.</li>
<li>The reopening of developed countries as lockdown measures have been eased. This includes Australia which has gone from mildly severe lockdown to intermediate.</li>
</ul>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%204.jpg" target="_blank">Click here</a> to enlarge: </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/10/share%20market%204.jpg" alt=""></p>
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<li>Massive fiscal and monetary support measures which have swamped those seen in the GFC. This has helped preserve businesses, jobs and incomes preventing defaults. Low interest rates also help make shares attractive for investors.</li>
<li>Green shoots of recovery. With the progressive relaxation of lockdowns, timely measures of economic data such as consumer confidence, restaurant bookings, retail foot traffic, credit card data, mobility indexes and jobs data suggest that US and Australian economic activity bottomed in April. See the next chart. Global business conditions indicators often referred to as PMIs also started to turn up in May after a plunge into April. This follows a similar pattern in China.</li>
</ul>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%205.jpg" target="_blank">Click here </a>to enlarge: </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/10/share%20market%205.jpg" alt=""></p>
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<li>Investors being pessimistic and underweight shares after the plunge in March. This has meant there has been more investors who can be motivated to buy shares than sell.</li>
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<p><span>These considerations have simply swamped concerns about civil unrest in the US (which now appears to be settling down anyway) and US-China tensions.</span></p>
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<p><strong>Confirmation from other markets</strong></p>
<p><span>It</span><span>’</span><span>s not just shares that have rebounded as the rally has been confirmed by other growth sensitive assets/yields. In particular:</span></p>
<ul>
<li>Oil and metal prices are up sharply from their lows.</li>
<li>Commodity currencies like the $A have rebounded at the same time that the safe haven US dollar has fallen.</li>
<li>Bond yield have lagged the upswing in share markets, but they have now started to rise, albeit they remain very low.</li>
</ul>
<p><strong>So why has the US share market led on the way up?</strong></p>
<p>The US share market has a relative high exposure to tech and health care stocks that have been key beneficiaries of the coronavirus shock, Amazon is now 55% of retail stocks’ market capitalisation and the US has also seen more money printing or QE by the Fed compared to other countries including Australia.</p>
<p>By contrast, non-US and Australian shares are more cyclical – but should start to benefit as the recovery continues.</p>
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<p><strong>Correction risk</strong></p>
<p><span>After huge rallies most shares are technically overbought which could mean we see a correction over the next few months. </span></p>
<p><span>But many shares in many share markets are at overbought extremes often seen in the aftermath of major bear market lows and this augurs well for returns on a 6-12 basis.</span></p>
<p><strong>But what about the slump in earnings?</strong></p>
<p><span>Earnings are taking a big hit from the impact to economic activity and this has seen earnings estimates slump and price to earnings multiples surge. This is clearly a concern but note a typical </span><span>“cyclical” </span><span>rebound in shares goes through three phases.</span></p>
<ul>
<li>Phase 1 sees an unwinding of cheap valuations helped by easy monetary conditions but with receding downside risks causing some investors to snap up undervalued shares. This is the phase where shares climb a “wall of worry”.</li>
<li>Phase 2 is driven by strengthening profits.</li>
<li>Phase 3 sees euphoria with very bullish investors pushing shares to extreme levels. This is despite shares becoming expensive and central banks raising interest rates.</li>
</ul>
<p>Right now, we are nearing the end of Phase 1. As economic conditions recover profits are likely to strengthen and we will move into Phase 2.</p>
<p>While PEs are now high, it’s noteworthy that the equity risk premium which can be crudely measured as the gap between earnings yields (using forward earnings) and bond yields is still reasonable reflecting ultra-low bond yields. But an improvement in earnings will be a key thing to watch for.</p>
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<p><a href="https://www.propertyobserver.com.au/images/2020/6/10/share%20market%206.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><strong><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/10/share%20market%206.jpg" alt=""></strong></p>
<p><strong>What are the key risks? </strong></p>
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<p><span>The three big risks are: a second wave of coronavirus cases </span>(which should be able to be avoided with lots of testing, tracking and quarantining and even if it does occur may not have the same negative economic impact as any renewed lockdown is likely to be milder and deaths are likely to be lower given greater preparedness); collateral damage from the shutdowns resulting in a delayed or very slow recovery as bankruptcies surge and unemployment goes higher (so far so good – with government and central bank support hopefully heading this off); and risks around the US election (such as Trump ramping up tensions with China if he feels he has nothing to lose or investors fretting about higher taxes and more regulation under a Democrat victory across the Presidency, House and Senate).</p>
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<p><strong>Concluding comment</strong></p>
<p><span>Shares are vulnerable to a short-term consolidation or pullback. But if we are right and April was the low in economic conditions then shares are likely to be higher on a 6 to 12-month horizon.</span></p>
<p><span> The experience of the last few months highlights just how hard it is to time market bottoms </span><span>– </span><span>a good approach for long-term investors is to average in over several months after major falls.</span></p>
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<p><span>SHANE OLIVER </span><em>is the Head of Investment Strategy and Chief Economist at AMP Capital</em></p>
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Shares climb a “wall of worry” but is it sustainable? Shane Oliver 

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<p class="post-title entry-title">EXPERT OBSERVER</p>
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<div>There was a significant rebound in business confidence and conditions in May, albeit they still, of course, remain at historically weak levels:</div>
<div> </div>
<div>Business confidence jumped 20 points higher, but is still in negative territory, while business conditions improved by 10 points over the month. </div>
<div> </div>
<div><em>Via the NAB Survey, <a href="https://1.bp.blogspot.com/-A8DtJIwNCOM/Xt8jOdG5hVI/AAAAAAAA2OM/Ho9bYL4tHukFvsEFIsFTPJZ-uwa0HChfgCNcBGAsYHQ/s640/Nab1.jpg" target="_blank">Click to enlarge</a>:</em></div>
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<br><div><span style="text-decoration: underline;"><em>Source: NAB Survey</em></span></div>
<br><div>Well, it's a decent start, as restrictions are eased.</div>
<div> </div>
<div>There have been some spectacular results for Australia in respect of COVID-19 today, with only two new confirmed cases, with two cases remaining in ICU:</div>
<br><div class="separator"><img src="https://1.bp.blogspot.com/-e6ppm6ZYJwg/Xt8k9UNyS3I/AAAAAAAA2Oc/LoA_SuoFzrcH8CUFePxERXc0g-K9GuVBACNcBGAsYHQ/s640/CV1.jpg" width="640" height="360" data-original-height="805" data-original-width="1426"></div>
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<div>Both of the new confirmed cases were returned overseas travellers, held in New South Wales quarantine:</div>
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<br>New Zealand is also now officially COVID-19 free.</div>
<div>
<br><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
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Business conditions begin to claw back: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Headline: House prices fell in May. Alternative headline: House prices rose in May.</span> </p>
<p class="p1"><span class="s1">Which is right? Actually, both. Or, more correctly, it depends on whose figures you believe.</span></p>
<p class="p1"><span class="s1">CoreLogic records a 0.4% reduction in house prices (overall, the average across the nation) during May, but Louis Christopher’s SQM Research reports a 1.1% rise in house prices over the same period.</span></p>
<p class="p1"><span class="s1">And when the latest figures from Domain and the ABS become available, they’ll have different numbers as well.</span></p>
<p class="p1"><span class="s1">We could spend hours discussing why different sources produce different (and sometimes conflicting) results on what’s happening with property prices. But suffice to say that they all have their own methodologies and parameters – and what they’re attempting, to distil tens of thousands of sales in myriad locations into a single growth figure, is a tad challenging.</span></p>
<p class="p1"><span class="s1">But, ultimately, it’s doesn’t matter whether CoreLogic is right or SQM is right. Essentially, they’re saying the same thing: property prices are remarkably stubborn in the face of major negative forces. As they so often are.</span></p>
<p class="p1"><span class="s1">House prices continue to defy the doomsday forecasters, many of them economists who refuse to let go of their flawed theories about how property prices SHOULD behave – and others among them opportunists who see potential to generate free publicity.</span></p>
<p class="p1"><span class="s1">Here are some headlines:</span></p>
<ul class="ul1">
<li class="li1"><span class="s1">“House prices to drop 20%: AMP Capital” – The Australian, 19 March.</span></li>
<li class="li1"><span class="s1">“House prices could drop by up to 20%, says UBS” – Financial Review, 18 March</span></li>
<li class="li1"><span class="s1">“Prices to plunge 30% as clearance rates fall off a cliff” – The Age, 8 April</span></li>
<li class="li1"><span class="s1">“House prices will collapse, says UBS” – Financial Review, 2 April</span></li>
<li class="li1"><span class="s1">“Can’t rule out 30% fall in house prices, says SQM” – Financial Review, 7 April</span></li>
<li class="li1"><span class="s1">“House prices could dive 30%” – The Age, 27 April</span></li>
</ul>
<p class="p1"><span class="s1">For those who declare “but it’s early days”, it isn’t.</span></p>
<p class="p1"><span class="s1">This pandemic shemozzle, in terms of its impact on Australian life, declared itself on 20 February when the share market had its first meltdown. We’ve already been through the worst of the health impacts and the toughest of the restrictions and now we’re emerging steadily from lockdown towards increasing levels of normality.</span></p>
<p class="p1"><span class="s1">When the price data for March (showing growth in most markets) was published, many in mainstream media said: “Yeah, but wait to we get the April figures, then we’ll see the true impact of Covid-19.”</span></p>
<p class="p1"><span class="s1">When the April figures came out (again showing minor growth in most markets), we got the same reaction: “Yeah, but May will see prices nosediving.”</span></p>
<p class="p1"><span class="s1">Well, that didn’t happen either. The CoreLogic data showed that in May there was growth or no change in house prices in nine of the 15 market jurisdictions (eight capital cities and seven state regional markets), with an overall result of -0.4%, while SQM reported a national rise of 1.1% and a capital city rise of 0.5%, with increases in Sydney, Melbourne, Perth, Adelaide and Canberra.</span></p>
<p class="p1"><span class="s1">So, now the standard line from failed forecasters seeking to justify their negative stance on property markets is this: “Yeah, prices are stable for now but in September when the stimulus runs out everything will fall off a cliff.”</span></p>
<p class="p1"><span class="s1">This comes direct from the kindergarten of real estate forecasting. It assumes that nothing will change over the next 3-4 months and that governments and lenders will recklessly turn off the tap without any regard to consequences.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">It also assumes that it’s all about JobKeeper and mortgage holidays, and overlooks the importance of infrastructure spending, loans and grants to businesses, support measures for renters, ongoing government stimulus measures like the $25,000 grant to home builders and renovators, and a whole lot more.</span></p>
<p class="p1"><span class="s1">Australia has done well in this crisis and continues to do so. And the future belongs to those who see opportunity rather than calamity.</span></p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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How true are real estate price fall headlines? Hotspotting's Terry Ryder

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<p>The Federal Government’s $25,000 Homebuilder package for the housing sector will help promote jobs and activity as New South Wales recovers from the economic effects of COVID-19.</p>
<p>That is important as construction is a key pillar of the economy – generating 7.5 percent of the nation’s growth as Australia’s third-biggest employer, after retail and health care and social assistance.</p>
<p>The $688 million package hopes to pull forward activity to avert the jobs cliff that could arise as exisiting projects finish in the second half of 2020 and early 2021.</p>
<p>The industry was not shutdown unlike other industries. But the package is aimed at forward work pipelines, with the time frame requiring quicker state government and council approvals, before any impact on the actual property market and prices and rents.</p>
<p>The program aims to provide 27,000 grants by December this year. It is for owner-occupiers, especially cashed up first home buyers, but not investors.</p>
<p>The means-tested grants will be restricted to large renovations and the construction of new homes as the project cost must be at least $150,000.</p>
<p>Prime Minister Scott Morrison said the scheme would drive a "tradie-led recovery" of the economy, and would support 140,000 direct construction jobs and a million workers in the wider residential building sector.</p>
<p>"The industry is facing a valley of death," the Master Builders Australia chief executive Denita Wawn warned.</p>
<p>The scheme will last until the end of the year, aiming to get 30,000 homes underway by Christmas.</p>
<p>Construction must commence within three months of the contract date.</p>
<p>Those eligible are singles who earned up to $125,000 the 2018-2019 tax year and couples who earned up to $200,000.</p>
<p>The scheme will work alongside existing state and territory first-home owner grants programs, stamp duty concessions and other grant schemes, including the federal government’s popular first-home loan deposit scheme and first-home super saver scheme.</p>
<p>The desired economic recovery will be swifter for having a housing that is robust, but there will be many would-be home owners who can't, won't or shouldn't participate.</p>
<p>It comes up against the backdrop that typically less than 20 percent of first-home buyers prefer to buy newly-constructed homes.</p>
<p>There are price thresholds that apply to the Homebuilder package, especially in Sydney which will be restrictive in most suburbs.</p>
<p>If you are building a new home the total value of the completed house and land needs to be less than $750,000.</p>
<p>Or if substantially renovating your existing home the value of your existing property does not exceed $1.5 million.</p>
<p>The package will primarily have an effect in the outer suburbs and its greenfield housing markets. Mostly people some way down the track to either buying or building will likely get to participate.</p>
<p>The scheme also covers buying units off the plan that are construction ready.</p>
<p>Architect academic Geoff Hanmer says no doubt the scheme's structure will encourage people to build in coffee makers, microwaves, fridges and washing machines to bump the contract price up above the $150,000 minimum.</p>
<p>Beware too that there are unscrupulous builders who may take advantage of the scheme, warns the NSW builder broker, Builder Finders' Lynette Manciameli, is concerned that the scheme is vulnerable to exploitation.</p>
<p>“What we are likely to see off the back of the HomeBuilder scheme is dodgy builders coming out of the woodwork." Mrs Manciameli suggests.</p>
<p>Adding it is more important than ever for consumers to do their due diligence when selecting a builder for their project including seeking out testimonials and checking credit scores.</p>
<p><em>This article was first published in </em>The Daily Telegraph</p>
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HomeBuilder scheme will drive a tradie-led recovery

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<p><span>GemLife has purchased the balance of ‘The Heights Estate’ in Pimpama, Gold Coast, for $29,700,000 and plans to deliver an over 50’s lifestyle resort on the substantial site.</span><br><span> </span><br><span>The subdivision site, that offered around 46.41ha in land size, came with preliminary approval for 267 detached residential lots.</span><br><span> </span><br><span>The asset was marketed and sold by Ray White Special Projects Queensland Executive Directors Matthew Fritzsche, Mark Creevey and Tony Williams.</span><br><span> </span><br><span>Mr Fritzsche said the expressions of interest campaign demanded very strong enquiry and serious interest from groups.</span><br><span> </span><br><span>“There's limited developable land on the Gold Coast of this scale and quality, and it showed in the strong number of enquiries we had throughout the campaign,” he said.</span><br><span> </span><br><span>“It formed part of the master-planned ‘The Heights estate’ – which is a very well curated and presented estate by Sunland – on the northern Gold Coast.</span></p>
<p><span><span>“The Heights is 20 minutes* from the central Gold Coast and [approximately] 40 minutes from the Brisbane CBD. It’s in an elevated position within the estate, offering Gold Coast skyline views.</span><br><span> </span><br><span>“The target list comprised local, interstate and international groups, and interest was predominantly from the residential and retirement/manufactured home estate sector.”</span><br><span> </span><br><span>Mr Creevey said the sale highlighted that even in testing times, development sites with an element of approval would always be appealing.</span><br><span> </span><br><span>“This really is an exciting project and we’re looking forward to seeing GemLife deliver yet another quality project,” he said.</span><br><span> </span><br><span>“This is one of South East Queensland’s most recognised land estates - in a market with rapidly diminishing forward land supply.</span><br><span> </span><br><span>“It's a high-quality estate with a significant entry statement, boulevard roads and footpaths, landscaping throughout and features central parkland.”</span></span></p>
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GemLife pays $29.7 million to build Pimpama over 50's lifestyle resort

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<p class="post-title entry-title">EXPERT OBSERVER </p>
<div>GDP growth was estimated at a seasonally adjusted -0.3 per cent for Q1, leading to the inevitably mind-numbing 'recession we had to have' headlines.<br><br>Over the year GDP growth slowed to +1.4 per cent. </div>
<div> </div>
<div>Q1 could yet be revised up, of course - especially the very significant negative drag from inventories - and therefore the technical definition of a recession may yet be avoided. </div>
<div> </div>
<div>However, given that GDP growth in Q2 will clearly be severely negative this is largely semantics.</div>
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<p class="post-body entry-content"><br>Nominal GDP growth over the year is floundering again.<br><br></p>
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<div>Real net national disposable income, as a proxy for living standards, has been fairly flat over the past six months. </div>
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<p class="post-body entry-content"><br>And the terms of trade have held up well to date, well above the long-run average.<br><br></p>
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<p class="post-body entry-content"> </p>
<div>Meanwhile, the interest payable on dwellings continues to fall, now down to the lowest level since 2009 despite the dramatic increase in the dwelling stock over that time.</div>
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<div><strong><span style="text-decoration: underline;">Stimulus mixed</span></strong></div>
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<div>With the Reserve Bank fading quietly into the background, the government must now do the heavy lifting with its fiscal stimulus.</div>
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<div>The Aussie dollar has accordingly soared back towards US 70 cents, in turn slowing the adjustment process. </div>
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<div>The terms of the $688 million renovation stimulus missed the mark completely, leaving such a skinny cohort of prospective qualifying applicants that the government needn't have bothered with it. </div>
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<div>Essentially you must own a house and undertake an expensive renovation within the next few months, but without having a high income (while a whole heap of renovation options are excluded): </div>
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<br>Perhaps some retirees might qualify for a grant, and maybe a few young homeowners with wealthy parents.<br><br>
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<div>The terms of the HomeBuilder grant scheme for <em>new</em> homes are far better targeted, and will undoubtedly be a net positive for the industry. </div>
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<br><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
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GDP headed down, recession all but locked in: Pete Wargent

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<p>A mortgagee home in Perth's Helena Valley has been listed for sale for $455,000.</p>
<p>Located at 17 Prunus Place, in a cul de sac, the house features four bedrooms, two bathrooms, and a double garage.</p>
<p>There also an in ground pool, and turfed back yard area.</p>
<p>the total block comprises a 1008 square metre block.</p>
<p>It last sold in 1998, for $172,500.</p>
<p>It was built in 1996.</p>
<p>Richard Lowenhoff and Jessica Macarthur, from LJ Hooker Midland, have the listing.</p>
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