<p>One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.</p>

<p>Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.</p>

<p>The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" /></p>

<p>Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.</p>

<p>Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.</p>

<p>The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.</p>

<p>"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" /></p>

<p>Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.</p>

<p>According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.</p>

<p>Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.</p>

<p>&nbsp;</p>

<p>FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.</p>

<p>Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.</p>

<p>Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.</p>


Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

<p>Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.</p>

<p>The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.</p>

<p>The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.</p>

<p>The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.</p>

<p><img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" /></p>

<p>The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;</p>

<p>PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.</p>

<p>Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.</p>

<p>A major focus of the design has been the public domain.</p>

<p>The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.</p>

<p>The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.</p>

<p data-end="239" data-start="66">Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.</p>

<p data-end="442" data-start="241">Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.</p>

<p data-end="661" data-start="444">Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.</p>

<p data-end="909" data-start="663">Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a></em></p>

<p data-end="1339" data-start="1019">Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a></em><br />
&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.</p>

<p data-end="843" data-start="497">At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.</p>

<p data-end="1109" data-start="848">The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.</p>

<p>"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.</p>

<p>The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.</p>

<p>Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.</p>

<p>The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.</p>

<p>The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

<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><span>An owner occupier has purchased the former Westpac bank building in the centre of Lalor’s shopping precinct for $2.455 million.</span></p>
<p><span>It marks the latest transaction of a vacant retail asset in Melbourne.</span></p>
<p><span>Fitzroys agents Terence Yeh and David Bourke sold 322-324 Station Street following a successful auction campaign that attracted more than 60 enquiries from investors and owner occupiers, with multiple bidders competing at the auction.</span></p>
<p><span>Yeh and Bourke acted on behalf of private investors who had bought the property in 1996 for $830,000.</span></p>
<p><span>The freehold asset comprises a two-level building of 850 sqm on a 520 sqm landholding that has 12.2 m of frontage to Station Street and 12.5 m to a rear laneway.</span></p>
<p><span>“Investors were attracted to the busy shopping precinct’s historically low vacancy rate, while owner occupiers were keen to take the rare chance to secure a strategically located, high-profile building in the heart of this busy shopping precinct,” Yeh said.</span></p>
<p><span>“This is a tightly held area of Melbourne, with one property coming to the market every few years.”</span></p>
<p><span>Bourke said the local operator is familiar with the location, having operated their business in the area for more than 10 years.</span></p>
<p><span><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/2019/4/16/thumbnail_IMG_7152.jpg" alt=""></span></p>
<p><span>“Their purchase is a strong vote of confidence in the strength of this precinct and its future prospects,” he said.</span></p>
<p><span>Positioned within a major retail hub, neighbouring Coles, Commonwealth Bank, and Lalor Library, the property will benefit from sustained population growth in the surrounds and across the City of Whittlesea.</span></p>
<p><span>The sale continues the Melbourne-wide trend of vacant retail properties attracting strong attention from investors and owner occupiers. Fitzroys has just sold 371 Bay Street in Port Melbourne for $1.31 million to an owner occupier, following the agency’s sale of a two-</span>storey Newport Village freehold to a first-time investor for $875,000 and a Harp Village building in Kew East for $1.2 million before auction.</p>
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<p><span>Fitzroys sold two Puckle Street, Moonee Ponds properties late last year; to a dental clinic and an investor respectively, which followed the sale of the former premises of Brighton icon Wild Holly Cakes on Bay Street for $2.905 million after interest from investors and owner occupiers.</span></p>
<p><span>Other recent Fitzroys sales have included a former Commonwealth Bank branch in Keilor, 241 Bridge Road to accounting firm Michael Jensen &amp; Associates, and a High Street building in Thornbury to a local food and beverage operator.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Owner occupier purchases former Westpac building in Lalor

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<p><span>Asia Pacific commercial real estate investment markets appeared to run out of momentum in the third quarter of 2018 after two years of very strong growth, with deal volumes sliding </span><span>in the region’s two largest markets</span><span>, Real Capital Analytics (RCA) data showed. </span></p>
<p><span>China registered the lowest quarterly level of transactions in five years as it reined in lending to investors and developers. Japan experienced its quietest three months since the Global Financial Crisis a decade ago.</span></p>
<p><span>Q3 2018 volumes were down 27% to US$27 billion compared to the same quarter last year, but were saved from a steeper decline by all-time high volumes in South Korea. </span></p>
<p><span>The last time the region recorded a quarterly decline was Q2 2016. Over the 12-months ending Q3 2018, purchases of commercial buildings in APAC totalled US$165.0 billion, a 3% increase from the same period ending Q3 2017, RCA</span><span>‘s </span><span>Q3 2018</span><span>Asia Pacific Capital Trends </span><span>report showed.</span></p>
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<p><span>Petra Blazkova</span><span>, RCA’s Senior Director of Analytics for Asia Pacific, </span><span>said: “</span><span>For the past decade the Asia Pacific real estate investment market has been characterised by rising prices and steady yield compression, enabling capital gains for most players."</span></p>
<p><span>"With property yields at historic lows and tighter financing conditions looming, or already encroaching in some markets, activity seems to be shifting into a lower gear as investors determine whether the next stage of the investment cycle is on the horizon.</span><span>”</span></p>
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<p><strong>Australian Price Growth Momentum Begins to Ebb</strong><img src="blob:https://www.urban.com.au/ada82210-5607-45c4-a26f-ed2c41437e79" alt="page2image3763824" width="230.529000" height="0.719966"></p>
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<p><span>After a long run of gains, commercial real estate prices in Australia have logged two successive quarters of decelerating growth. Australian investment volumes over the quarter fell 39% compared to Q3 2017 and over 12-months dipped 1% year-over-year in Q3 2018 to US$26.7 billion (A$37.0 billion), RCA data showed. Deal count declined by 15%, based on 12-month rolling totals.</span></p>
<p><span>Offices, while remaining the best performer, started to plateau first, and particularly outside Sydney’s</span><span>central business district. The narrowing financing gap has also forced investors to take a pause. RCA</span><span>’s</span><span>Commercial Property Price Indices (CPPI) showed Australian commercial real estate prices have risen 82% in the past five years.</span></p>
<p><span>Sydney recorded growth in both the retail and industrial sectors for the first nine months of the year, however overall volumes declined by 5%, possibly signaling a market turning point. Average quarterly commercial real estate yields in the city, which move inversely to prices, rose for the first time in three years.</span></p>
<p><span> Yields elsewhere have continued to compress over the past quarter, most notably in Melbourne by 25 basis points and where price rises in Q3 averaged the highest for any major city in the world, RCA data showed.</span></p>
<p><span>RCA’s Blazkova </span><span>observed: “</span><span>The jury is out on the Australian market following this bout of weakness. High prices are persuading owners to sell, which supports the investment market, but overall momentum appears to be slowing</span><span>.”</span></p>
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Melbourne bucks downward trend in Asia Pacific commercial property prices in late 2018: Real Capital Analytics

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">The number of growth markets in Regional Queensland is rising, helped by recovery in resources-related regional centres. Mackay is now the most upwardly-mobile market, having overtaken the softening Sunshine Coast market, and Gladstone is now showing signs of recovery, with some of its suburbs rising.</span></p>
<p class="p1"><span class="s1">Regional Queensland markets collectively have improved in the past year or so: in the past five quarterly surveys of sales activity by Hotspotting, the number of locations with growing demand has increased from 30 to 36 to 40 to 45 to 48.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">The number of growth markets had decreased sharply in the late 2017 survey but showed steady improvement in 2018 and this has continued into 2019.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">The other key feature is the number of Regional Queensland markets with price growth. We analysed price movements in 313 markets and found 203 (65%) have median prices higher than a year ago. Of the 203 growth markets, 99 have recorded median price growth of 5% or more, while another 104 markets have increased by less than 5%.</span></p>
<p class="p1"><span class="s2">Of the higher growth markets, 42 have increased by more than 10%, including 15 which have grown 20% or more. Some of the highest annual growth in median prices has been recorded in mining towns Emerald (up 24%), Clermont (up 33%) and Dysart (24%), but these are rising from a low base after several years of downturn.</span></p>
<p class="p1"><span class="s2">A number of unit markets have recorded high growth in the median prices, including Noosa Heads (31%) and Peregian Springs (23%) on the Sunshine Coast; Airlie Beach (26%) in the Whitsundays; Bilinga (26%), Broadbeach Waters (27%) and Coolangatta (25%) on the Gold Coast; and East Toowoomba (29%) in the inland regional city of Toowoomba.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Other growth markets are Sunshine Coast lifestyle locations Sunshine Beach (40%), Eumundi (23%) and Doonan (21%).</span></p>
<p class="p1"><span class="s2">A standout characteristic is the recovery in resources-related markets which have spent the past few years in downturn. This trend is headed by Mackay, which now has rising demand coupled with much lower vacancies, and some suburbs are now showing good price growth.</span></p>
<p class="p1"><span class="s2">Emerald, which is located near the mines of the Bowen Basin and the Galilee Basin, is a standout: quarterly sales have been 51, 57, 66, 62, 60, 76 and 78, while the median house price has risen 24% to $310,000 in the past 12 months. The trend here is a prime example of the recovery in the resources-related towns.</span></p>
<p class="p1"><span class="s2">There’s further evidence of revival in Gladstone, in addition to the steady reduction in vacancies (now below 3%). In our latest analysis we have classified six Gladstone suburbs as rising markets and three suburbs (Clinton, Kin Kora and West Gladstone) have median house prices higher than a year ago. But the market remains patchy – some suburbs are still classified as decline or danger markets and most suburbs still have median prices lower than a year ago (but it’s significant that most of those suburbs have recorded an uplift in prices in the most recent quarter).</span></p>
<p class="p1"><span class="s2">As always, never forget that markets that have strong links to the resources sector are volatile and are prone to major downturns. They’re not good places for risk-averse investors.</span></p>
<p class="p1"><span class="s2">The larger, more diversified regional centres of Queensland continue to have steady markets, headed by Cairns and the Fraser Coast. Cairns has seven suburbs with rising sales activity, but prices have yet to react to improved demand – most Cairns suburbs have median prices lower than a year ago, although there are exceptions like Caravonica, Whitfield and Yorkeys Knob.</span></p>
<p class="p2"><span class="s2">The Fraser Coast region, centred on Hervey Bay, now has six rising suburbs, like rapidly-improving Urangan. Toogoom, Tinana and Kawungan have all recorded strong price uplift in the past year.</span></p>
<p class="p2"><span class="s2">Toowoomba remains a solid market without yet showing any overt growth signs, while Townsville has suffered setbacks from the recent major flooding.</span></p>
<p class="p1"><span class="s2">The Sunshine Coast, which for some time has been the strongest of the Queensland markets, no longer has that mantle. It now has few suburbs with rising demand, but many plateau markets –which suggests this market may have passed its peak in terms of demand.</span></p>
<p class="p1"><span class="s2">But it’s still producing strong price outcomes. Of the 99 Regional Queensland markets with annual price growth above 5%, 38 are in the Sunshine Coast region – plus another 24 suburbs have growth of less than 5%. Both house and apartment markets in and around Noosa continue to be leading performers on price growth.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Sunshine Coast markets with annual growth above 10% include the Doonan, Eumundi, Mooloolaba, Maleny, Sunshine Beach, Woombye, Wurtulla, Pomona, Twin Waters and Peregian Beach house markets, as well as the Golden Beach, Noosa Heads, Noosaville, Peregian Springs and Warana unit markets.</span></p>
<p class="p1"><span class="s2">As we reported in the previous edition, the post-Games boost predicted by some has not eventuated on the Gold Coast. This market was strong from 2015 to 2017 because of the pre-Commonwealth Games construction boom.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Since then the growth has subsided and it’s difficult to find any growth suburbs (in terms of sales activity) in Gold Coast City, but 41 suburbs classified as either plateau or consistency markets – plus a couple of decline markets. The price outcomes are also mixed: 57 suburbs have median prices higher than a year ago, but there are 27 with prices lower than last year.</span></p>
<p class="p1"><span class="s2">A notable trend on the Gold Coast is that many of the best performers on price growth are apartment markets – but not the iconic beachside enclaves like Surfers Paradise, Main Beach and Broadbeach. The unit markets showing growth are in the inland suburbs like Ashmore, Benowa, Elanora, Helensvale, Pacific </span><span class="s3">Pines</span><span class="s2"> and Mudgeeraba – or the beachside suburbs outside the glitter strip, like Bilinga, Coolangatta, Palm Beach and Runaway Bay.</span></p>
<p class="p4"><span class="s5"><em>Terry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p5"><span class="s6"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p6"><span class="s5"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

Mackay leads regional Queensland price growth surge: Hotspotting's Terry Ryder

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<p>Sydney’s crane construction count has again eased a tad from its 2017 peak.</p>
<p>Not too significantly, but it does mean fewer jobs for construction workers and that flows through into the NSW economy.</p>
<p>There are currently 310 cranes on the Sydney skyline, down from the 350 peak which came with six years of consecutive rises in crane numbers.</p>
<p>Of these some 229 are residential cranes nicely spread across 113 suburbs.</p>
<p>The CBD and surrounding inner suburbs have 106 (34%) of the installed cranes, the eastern suburbs have 13 (4%), the north has 107 (34%), the south has 27 (9%), the west has 57 (18%).</p>
<p>Every crane in the sky is sign of confidence in the future of Sydney.</p>
<p>With counting cranes in China a little complex, Sydney still sits second to the longtime undisputed global leader for tower cranes in the Middle East. On one recent count, Dubai proudly had 1182 cranes, with their build it and they will come philosophy.</p>
<p>Residential cranes in Sydney account for 74% of all cranes in Sydney, and 44% of residential cranes nationally.</p>
<p>As always, it is a dynamic situation with 127 additions and 141 removals of residential cranes over the past quarter, according to the latest edition of the Rider Levett Bucknall Crane index which highlights the vital role of the construction sector within Australia’s economy.</p>
<p>There were cranes removed from Castle Hill, Dee Why and Chatswood as apartment projects reached completion.</p>
<p>Seven cranes were removed from residential projects in the south, driving the overall dip in crane numbers. </p>
<p>Sydney's west saw the most significant decline in overall cranes from 78 to 57, with 42 now being residential.</p>
<p>Some 49 cranes were removed in the west and 28 added including Ed Square's four cranes and three at the Lennox in Parramatta.</p>
<p>More came to Darling Harbour.</p>
<p>The report also counted five residential cranes across Newcastle, down from eight last year, and none at Wollongong. There's 12 residential on the Central Coast, out of the 13 in the region, including Terrigal and Gosford with six.</p>
<p>There are some interesting national cyclical trends emerging across the capital cities.</p>
<p>Currently Sydney has 42% of all cranes erected nationally, while Melbourne contributed 30% and Brisbane 8%. Sydney’s dominance has fallen slightly from the high of 52% in 2017. Melbourne’s crane numbers surged past the 200 mark for the first time.</p>
<p>In the first quarter of 2019 there were 735 cranes counted across Australia, with 530 for residential projects and 205 non-residential developments, including the non-residential sector of offices, transportation, hotels, education, health and retail.</p>
<p>New commencements will be affected by the current conditions impacting the industry including tightening finance availability, falling foreign investment and general market confidence.</p>
<p>While potential developments are being delayed until more favourable conditions emerge, the level of forced development site disposals is very low compared to past downturns when very high interest rates - as either holding costs or purchasing costs - caused unsold blackholes across Sydney.</p>
<p>Our construction spurt has helped NSW maintain the lowest unemployment rate in the nation at 4.3%.</p>
<p>But one indicative economic indicator suggests property industry jobs are slowing.</p>
<p>According to the jobs website <a href="http://seek.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://Seek.com.au&amp;source=gmail&amp;ust=1554848099068000&amp;usg=AFQjCNFbD-KcjvnISkJqcZiMptgC6NAnyQ">Seek.com.au</a>, construction industry job advertisements are 14% lower than this time last year, while real estate jobs are down 15% and design and architecture jobs down 20%.</p>
<p>All those tradies in high visibility vests - buying their pies at lunchtime, spending up on tools, filling up their utes with fuel and buying their own first homes - are underpinning NSW's economic progress.</p>
<p><em>This article first appeared in </em>The Daily Telegraph. </p>
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jchancellor-FAypfDUnLy

Sydney's crane count shows why tradies underpin the state's economic fortunes 

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<p>Former National Soccer League coach Tony Vrzina has secured $2.7 million from the sale of a vacant office/warehouse building in Hawthorn East. </p>
<p>CBRE’s Sandro Peluso, Josh Twelftree and Jimmy Tat negotiated the off-market sale of the 31 Hall Street property on behalf of the veteran coach.</p>
<p>Vrzina led Sydney Croatia in the 1990s before coaching Victorian Premier League side Fawkner.</p>
<p>In his coaching career he also led the Melbourne Knights, Preston, George Cross and Bulleen. </p>
<p>The 460 square metre Hall Street building has been purchased by an investor seeking to capitalise on demand for social infrastructure in the increasingly affluent commercial and industrial precinct by leasing the building to a health-care related tenant. </p>
<p>“While Hawthorn has always been popular with office tenants and commercial owner occupiers, we expect to see a shift towards more social infrastructure uses in the area,” Peluso said.  </p>
<p>“This will underpin growing interest from medical and child care operators, particularly in light of the growing number of office developments in the area.”  </p>
<p>Peluso noted that the one-time Hawthorn East industrial precinct comprising Hall and Cato Streets had been almost entirely converted to high end office and boutique owner-occupied properties, with 31 Hall Street representing one of the last remaining industrial assets.</p>
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Soccer coach Tony Vrzina kicking goals in Hawthorn East with $2.7 million warehouse sale

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<p>GUEST OBSERVATION</p>
<p>Immigration policy will be a major issue in the 2019 federal election. We know this because immigration has featured significantly at every Australian election since the 2001 “<a href="https://en.wikipedia.org/wiki/Children_Overboard_affair" target="_blank">children overboard</a>” election.</p>
<p>David Marr and Marian Wilkinson argued in their 2003 book, <a href="https://www.smh.com.au/entertainment/books/dark-victory-20030329-gdgiaw" target="_blank">Dark Victory</a>, that willingness to play the race card in relation to boat people was a decisive factor in John Howard’s election victory. For Tony Abbott, “Stop the boats” was a major campaign theme when the Coalition won back government in the 2013 election. The current prime minister, Scott Morrison, rose to prominence as Abbott’s unyielding immigration minister who stopped the boats.</p>
<p>While the <a href="https://theconversation.com/christchurch-attacks-strike-at-the-heart-of-muslims-safe-places-from-islamophobia-113922" target="_blank">events of Christchurch</a> may have cramped the opportunity for the Coalition to run hard on fear, promising to be tough on borders and tough on (Muslim) terrorism, the dog-whistle politics on the issue of refugees and asylum seekers will be there for those wanting to hear it.</p>
<p>For Labor these policy issues have been difficult. It was Kevin Rudd who as PM <a href="https://theconversation.com/no-more-asylum-in-australia-for-those-arriving-by-boat-rudd-16238" target="_blank">declared that those arriving by boat would never be settled in Australia</a>, irrespective of the validity of their claims for protection under the UN <a href="https://www.unhcr.org/en-lk/1951-refugee-convention" target="_blank">Refugee Convention</a>. Labor supported efforts to get children out of detention on Manus Island, but doesn’t want to give the conservatives too much space to convincingly advance a “Labor weak on border security” line.</p>
<p><strong>Humanitarian intake is growing</strong></p>
<p>The Coalition governments of Abbott, Turnbull and Morrison have in fact increased Australia’s annual humanitarian intake significantly. The number has <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201516/Migration" target="_blank">risen from just over 13,750 to more than 18,000</a> – though the government has not loudly broadcast this fact.</p>
<p>In addition, Abbott in 2015 announced a <a href="https://theconversation.com/australia-ups-its-syrian-refugee-intake-but-what-about-its-own-backyard-47160" target="_blank">one-off intake of 12,000 Syrian conflict refugees</a>. Most of them arrived in 2017, effectively doubling the annual refugee intake in that year.</p>
<p>Australia – and the refugees – coped well, demonstrating the nation’s capacity to significantly increase refugee intakes. <a href="https://theconversation.com/refugees-are-integrating-just-fine-in-regional-australia-101188" target="_blank">Our research</a> with newly arrived Syrian, Iraqi and Afghan refugee families suggests they are settling well in Australia, receiving a warm welcome from locals in the cities and regional centres. Employment and family reunification are their key worries.</p>
<p>Labor’s shadow immigration minister, Shayne Neumann, has flagged a new <a href="https://www.sbs.com.au/yourlanguage/punjabi/en/article/2019/02/12/labor-government-will-replace-new-sponsored-parent-visa" target="_blank">temporary sponsored visa for the parents of migrants</a>. Unlike the current visa, it does not have a cap and it might assist refugees to get their parents to Australia.</p>
<p>Labor has <a href="https://www.alp.org.au/asylumseekers" target="_blank">announced it will increase the annual humanitarian intake</a> of refugees to 27,000 by 2025. It will also abolish <a href="https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/temporary-protection-785" target="_blank">Temporary Protection Visas</a> (TPVs). These visas provide boat arrivals who are found to be refugees the right to stay for only three years with work and study rights and access to Centrelink payments. As Labor argues, this places them “in a permanent state of limbo”.</p>
<p>The Coalition parties have not announced their policy intentions in relation to humanitarian intakes or the rights of asylum seekers, including those who arrived by boat.</p>
<p>At a time when Home Affairs Minister Peter Dutton scans the horizon for new boat arrivals, <a href="https://www.smh.com.au/national/worst-ever-immigration-minister-asylum-seekers-jet-in-under-dutton-s-nose-20190302-p511d8" target="_blank">record number of asylum seekers are arriving by plane</a> under tourist visas. In 2013-14, there were 18,718 asylum applications, including 9,072 boat arrivals. This had increased to <a href="https://thenewdaily.com.au/news/national/2018/12/09/record-number-asylum-seekers-peter-dutton/" target="_blank">27,931 asylum applications, with no boat arrivals, by 2017-18</a>.</p>
<p><a href="https://images.theconversation.com/files/267995/original/file-20190408-2931-1sgmyyr.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/267995/original/file-20190408-2931-1sgmyyr.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><em><span class="attribution"><span class="source">Department of Home Affairs</span></span></em></p>
<p>Each year the Australia government sets the permanent immigration targets. Until recently this was set at 190,00. In practice just <a href="https://www.homeaffairs.gov.au/research-and-stats/files/report-migration-program-2017-18.pdf" target="_blank">162,000 immigrants have been admitted</a> over the past year or so.</p>
<p><strong>A token cut and 2 new visas</strong></p>
<p>In this context Prime Minister Morrison’s announcement that the <a href="https://theconversation.com/slimmed-down-migration-program-has-regional-focus-113847" target="_blank">permanent immigration target will be cut to 160,000</a> is really no change in immigration policy. There is nothing to see here if you dismiss the need to be loudly anti-immigration in the current populist political climate.</p>
<p>The announcement is linked to congestion-busting in the major cities of Sydney and Melbourne. It is accompanied by the <a href="https://www.news.com.au/finance/economy/federal-budget/immigration-cuts-and-regional-visas-to-ease-strain-on-sydney-and-melbourne/news-story/da7de88690966d4c202ab0d372a5b253" target="_blank">introduction of two new visa pathways</a> – the Skilled Work Regional (Provisional) Visa and the Skilled Employer Sponsored Regional (Provisional) Visa – for skilled migrants to live and work in regional areas for five years.</p>
<p>These visas offer the carrot of permanent residency at the end of three years to attract new immigrants to regional Australia. In addition, the budget announced that scholarships to the tune of $94 million over four years would be available to domestic and international students who study there.</p>
<p><strong>Temporary migrants exploited</strong></p>
<p>Most immigration policy debates centre on permanent immigration intakes, particularly of humanitarian immigrants and asylum seekers. Yet annual temporary migrant intakes – international students, <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/WorkingHoliday" target="_blank">working holidaymakers</a> and temporary skilled workers – are <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/MigrationStatistics#_Table_2:_Temporary%20_and%20214,583%20Working%20Holiday%20Makers%20on%20417%20and%20462%20Visas" target="_blank">three times greater</a> than the permanent intake. <a href="https://docs.jobs.gov.au/system/files/doc/other/mwt_final_report.pdf" target="_blank">Over 800,000 temporary migrants</a> were in Australia in June 2018.</p>
<p>One key policy issue is the exploitation of temporary migrant workers. The Turnbull government abolished the 457 temporary skilled migration visa because of increasing <a href="https://theconversation.com/457-visa-changes-wont-impact-on-wider-temporary-education-workforce-and-maybe-thats-deliberate-76579" target="_blank">reports of abuse and exploitation by employers</a>.</p>
<p>One <a href="https://apo.org.au/sites/default/files/resource-files/2017/11/apo-nid120406-1162971.pdf" target="_blank">recent survey</a> of 4,332 temporary migrant workers found “increasing evidence of widespread exploitation of temporary migrant workers, including wage theft”. <a href="https://www.mwji.org/highlights/2017/11/14/report-released-wage-theft-in-australia-findings-of-the-national-temporary-migrant-work-survey%20and%20other%20abuses%20of%20workers%20rights" target="_blank">Half of all temporary migrant workers may be underpaid</a>. About one in three international students and backpackers earned $12 an hour or less – about half the minimum wage.</p>
<p>This issue goes not just to the ethics of maintaining a temporary migration program largely premised on migrant worker exploitation. It also resonates with Labor’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-04-05/labors-budget-reply-was-a-careful-pitch-to-voters/10973572" target="_blank">campaign for a living wage and the restoration of penalty rates</a> for workers in response to the low rate of real wage growth in Australia, which constrains consumer demand.</p>
<p>The 2019-20 federal budget allocated extra funding to the Fair Work Ombudsman to bolster enforcement action against employers who exploit vulnerable workers and announced the National Labour Hire Registration Scheme to <a href="https://www.jobs.gov.au/migrant-workers-taskforce" target="_blank">target rogue operators in the labour hire industry</a>. However, the research suggests wage theft is widespread in the small business sector, a key target for tax relief in the budget. It is an area of immigration policy that requires considerably more resources and punch.<img src="https://counter.theconversation.com/content/113557/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><strong>Jock Collins</strong>, Professor of Social Economics, UTS Business School, University of Technology Sydney</em></p>
<p><em>This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dog-whistles-regional-visas-and-wage-theft-immigration-policy-is-again-an-election-issue-113557" target="_blank">original article</a>.</em></p>
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Dog whistles, regional visas and wage theft – immigration policy is again an election issue

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<p>A converted Prahran warehouse belonging to design and communications agency Grenade founder Ben Buxton has hit the market.</p>
<p>Buxton’s father is Melbourne property developer and Rich Lister Michael Buxton.</p>
<p>The two storey property at 2 Macquarie Street is on a 306 square metre site and has 473 square metres of office space.</p>
<p>Features include five car spaces, polished concrete floors, exposed steel trusses and beams, and strategically positioned skylights which, paired with the steel framed windows, provide all around natural light.</p>
<p>The property currently has short term leases generating $119,051 per annum with scope for improvement, according to marketing agents, Teska Carson’s Jack Kelliher and Matthew Feld.</p>
<p>“This is a proven commercial and residential location that’s underpinned by arguably the best lifestyle amenity Melbourne has to offer and that is going to attract a broad range of buyers,” Kelliher said.</p>
<p>“The combination of short term income with the flexible Activity Centre 1 Zoning provides fertile ground for a variety of mixed-use development options to be explored, but the property also has much to offer owner-occupiers and investors especially in terms of the location.”</p>
<p>The proximity to the Chapel Street retail strip is advantageous, Kelliher said.</p>
<p>“The area is also well served by public transport with Prahran and Windsor railway stations, both within walking distance, and tram lines along High and Chapel streets, while Dandenong Road and Punt Road provide access to Melbourne’s freeway network.</p>
<p>Kelliher said the area’s popularity had been underlined by the significant residential and commercial development within the immediate vicinity in recent years. </p>
<p>“The local area has seen continuous development in recent years due to the first rate amenity, the close proximity to the centre of Melbourne, and Melbourne’s strong population growth.</p>
<p>“These factors, along with historically low interest rates, will continue to drive demand, development and investment in this area for the foreseeable future.”</p>
<p>The property will be auctioned on Friday, May 24 at 1pm on site.</p>
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Converted Prahran warehouse listed by Ben Buxton

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<p>A new Ballarat child care centre, leased to Beginnings Early Learners, has sold for $4.7million, seven days after being listed with Savills Australia. </p>
<p>CBD &amp; Metropolitan sales agent, Mark Stafford, brokered the off-market deal for 2 Mia Street, Alfredton, following a failed expressions-of-interest campaign with a competitor agency.  </p>
<p>Mr Stafford said the sale price represented a 7.46 per cent yield.</p>
<p>It reflected a rate of $36,154 per place.  </p>
<p>“Savills was able to act swiftly for our vendor, with the property being snapped up by a local investor attracted by the high-growth location, strong rental yield and brand new building,” Stafford said. </p>
<p>“The deal highlights the strong demand we’re experiencing for income-producing assets with long-term leases.” </p>
<p>The transaction comes on the back of Savills recent sale of a childcare centre at 17 Station Street, Pakenham, which sold with a six-day settlement.</p>
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Ballarat sale shows childcare centres remain asset of choice for investors across Victoria

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<p>It's well known that most <a href="http://petewargent.com/2019/01/10/being-approximately-right-not-precisely-wrong/" target="_blank">market predictions</a> are a <a href="http://petewargent.com/2018/01/04/forecasting-fails/" target="_blank">waste of time</a>: they usually just project <a href="http://petewargent.com/2019/01/02/the-small-numbers-fallacy/" target="_blank">more of what's been happening</a>, and are rarely much chop at picking turning points. </p>
<div>With almost no housing market activity over the long Easter break, this does feel like a potential <a href="http://petewargent.com/2018/01/07/tipping-point/" target="_blank">inflection point</a> - for better or worse - and certainly it's as a good a time as any for a largely baseless opinion piece. </div>
<div> </div>
<div>It's clear that the speculative heat has been well and truly removed from the housing market by the credit squeeze and a range of other factors. </div>
<div> </div>
<div>In fact, the reverse is now the case, with investor credit growth running at the lowest level in Australia's history.</div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-Zj-1Sx_I9FE/XLrwf1FtTII/AAAAAAAAvoE/FiK8ITEj7oEO15XnZ3VSYZbmN0cb6Rd1wCLcBGAs/s1600/RBA.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-Zj-1Sx_I9FE/XLrwf1FtTII/AAAAAAAAvoE/FiK8ITEj7oEO15XnZ3VSYZbmN0cb6Rd1wCLcBGAs/s640/RBA.jpg" width="640" height="372" data-original-height="808" data-original-width="1388"></a></div>
<div> </div>
<div>The stock of interest-only loans has been spectacularly reduced by regulatory tweaks and is also at the lowest share on record: probably down to about 21 per cent of residential loans by value by the end of this quarter, representing an epic decline from 39 per cent in early 2017.</div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-vs6el-7xifQ/XLruWdo0rGI/AAAAAAAAvnc/6IwelGesDFw8hDZAAykHULqm7pmjhagtACLcBGAs/s1600/APRA1.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-vs6el-7xifQ/XLruWdo0rGI/AAAAAAAAvnc/6IwelGesDFw8hDZAAykHULqm7pmjhagtACLcBGAs/s640/APRA1.jpg" width="640" height="364" data-original-height="802" data-original-width="1409"></a></div>
<p><span>The share of high LVR lending is also tracking at around the lowest level on recent record.</span></p>
<div class="separator"><a href="https://1.bp.blogspot.com/-YnIw3fu1f_8/XLruWefabvI/AAAAAAAAvng/XwywLpxyE5U7YKH1xjFaJKSI52V8qzhRwCLcBGAs/s1600/APRA2.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-YnIw3fu1f_8/XLruWefabvI/AAAAAAAAvng/XwywLpxyE5U7YKH1xjFaJKSI52V8qzhRwCLcBGAs/s640/APRA2.jpg" width="640" height="368" data-original-height="798" data-original-width="1381"></a></div>
<p><br><span>Low-doc lending, meanwhile, has been all but eliminated over the past decade. </span></p>
<div>Average paper net rental losses (aka. 'negative gearing') claimed are at the lowest level in almost a decade-and-a-half, with further declines in the post on rising yields, lower mortgage rates, and changes to allowable deductions for plant and equipment depreciation and travel. </div>
<div><span> </span></div>
<div><span>With loans being tested for serviceability at 7¼ per cent lending metrics have, if anything, become too conservative, and borrowing capacity has in many cases been reduced by 20 to 40 per cent (or simply eliminated entirely for many portfolio investors).  </span></div>
<div><span> </span></div>
<div><span>Almost every way you look at it, credit has rarely been so tough to come by. </span></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Prices cooled since early 2017</span></strong></div>
<div> </div>
<div>If the housing market downturn was to end here then I reckon most sober commentators and respected international observers would applaud a job well executed. </div>
<div> </div>
<div>In any event, a lot of the 'bubble' talk is way overdone.</div>
<div> </div>
<div>There's a lot of debt on a gross basis; but mortgage serviceability isn't particularly stretched, while there's also been an unprecedented build-up in cash and cash equivalents, mortgage buffers, and balances in offset accounts.</div>
<div> </div>
<div>In Adelaide it's not all that hard to buy a house for the same price as a decade ago, which given where mortgage rates have gone must represent about a 50 per cent improvement in affordability (without backing this statement up with any hard numbers). </div>
<div> </div>
<div>In Brisbane apartment prices are often seen to be lower than they were almost a dozen years ago, so affordability is now stupendously high compared to where it was. </div>
<div> </div>
<div>Housing prices had already declined for years in Perth; and they've been roundly smashed in Darwin.</div>
<div> </div>
<div>The major house price gains since 2012 were seen in Sydney, where median prices have since declined over a period of more than two years by about 13 per cent, representing a real decline versus incomes nudging about 20 per cent from the peak (much more in parts of Western Sydney, according to a piece in the AFR this week). </div>
<div> </div>
<div>It seems that most of the regulatory actions taken to cool the housing market have all but washed through, but despite the lower fixed mortgage rates on offer lately market activity is still awfully gummed up.</div>
<div> </div>
<div>And there's still a non-trivial possibility that the actions taken to promote financial stability, in the end, sink it. </div>
<div> </div>
<div>The economy has been stymied for some time now, with two consecutive quarters of negative GDP growth in per capita terms possibly set to be repeated for a third quarter. Consumption and retail are weak. </div>
<div> </div>
<div>It's difficult to get an accurate real-time reading of housing market turnover but many experienced commentators seem to believe it's at the lowest level on record. </div>
<div>
<br>So, what gives?</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Responsible lending: level up</span></strong></div>
<div> </div>
<div>A major part of the challenge for activity in the housing market is some of the breathtaking pedantry related to mortgage applications, which I've experienced a bit of, but often only mortgage brokers have a really good feel for. </div>
<div> </div>
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<p> </p>
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<p> </p>
<div>There's always a chance that responsible lending morphs into a nanny state mentality, and this is now almost literally becoming so in some cases.</div>
<p> </p>
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<div>When lenders are stress-testing for scenarios incorporating up to the equivalent of a dozen or more rate hikes it defies belief that a homebuyer registering for Netflix or using Uber might be grounds for the refusal of a loan, but the banking Royal Commission brought this level of paranoia to the fore. </div>
<div> </div>
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<div>These sometimes amusing and apparently trivial examples are merely the tip of the iceberg in what has been at times a truly Titanic pile of administrative poppycock.</div>
<div> </div>
<div>Everyone involved in mortgage lending knows that consumer behaviour and discretionary spend changes post-purchase, so all this rigmarole is largely fruitless and may now be effectively adding to FS risks rather than reducing them. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Tipping point</span></strong></div>
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<div>Lower interest rates alone don't fix this; but in truth I don't know what does. </div>
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<div>Maybe it's the simply passage of time.</div>
<div> </div>
<div>Perhaps lenders need some assurance that they aren't going to be hauled over the coals even more than has already been the case. </div>
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<div>By the same token prospective homebuyers would doubtless like to see more certainty given the recent shifting of goalposts (with further changes to market dynamics now proposed by the Labor Party). </div>
<div> </div>
<div>Whatever's the case, something needs to get mortgages flowing dependably again, or else there's a risk that the measures to shore up risks in the housing market will no longer be hailed as a success, but instead blamed for capsizing it.</div>
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<div>
<em>PETE WARGENT 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><span> </span>
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pwargent-M4siyDbqQY

Speculative heat removed from the housing market by the credit squeeze: Pete Wargent

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<p>The Milson Point's QE Foodstores premises have been sold for $6 million.</p>
<p>QE has other stores in Balmain, Camperdown, Darlinghurst, Newtown, Randwick, Waterloo and Waverley.</p>
<p>The shopfront at <a href="http://commercialpropertysearch.savills.com.au/0bbda22c-73bc-e811-80e6-005056816353/Sale/Milsons-Point/88-Alfred-Street" target="_blank">88 Alfred Street</a> was listed with $5.5 million hopes in November, through Savills agents David Hickey, Tom Tuxworth and Nick Tuxworth.</p>
<p>They expected interest from local, interstate and offshore investors.</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/2019/4/11/QE2.jpg" alt=""></p>
<p>The property has a new 10 year lease, with two five-year options.</p>
<p>On its listing Hickey said the lease and strong annual increases will attract buyers looking for secure, super-prime investments in the sub $10 million category. </p>
<p class="p3"><span class="s1">“Throughout 2018, we have seen a weight of capital chasing retail properties in prime locations, particularly in highly populated and affluent inner-urban and suburban areas," Hickey said.</span></p>
<p class="p3"><span class="s1">“Investors are certainly looking for quality over quantity in the current market, and 88 Alfred Street fits that category.”<span class="Apple-converted-space"> </span></span> </p>
<p class="p3"><span class="s1">“QE Foodstores took a strategic view on the local Milsons Point, Kirribilli, McMahons Point and Blues Point precinct when they noticed the community had been starved of a quality supermarket for a very long period of time,” Hickey said.</span></p>
<p class="p3"><span class="s1">“The business decided to venture to Sydney’s North Shore and open its ninth grocery store to cater to this pent-up demand for fresh, quality and artisan produce.</span></p>
<p class="p3"><span class="s1"><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/2019/4/11/QE3.jpg" alt=""></span></p>
<p class="p3"><span class="s1">“At 88 Alfred Street, the store benefits from being situated in Sydney’s second most-liveable suburb, only a 10-minute walk from the Sydney CBD and North Sydney.”</span> </p>
<p class="p3"><span class="s1">Hickey said QE Foodstores appealed directly to a growing number of affluent Baby Boomer and Millennial shoppers, “who shop more frequently with smaller basket sizes”.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s1">“These shoppers demand personalisation, special services and quality products, which is what QE Foodstores has strived to deliver since opening its first store 16 years ago,” he said.</span></p>
<p class="p3"><span class="s1">“The owners’ goal is to keep growing and provide a great range of products and services to many more Sydney neighbourhoods.</span></p>
<p class="p3"><span class="s1">“They are constantly on the lookout for new sites in the inner city and east, and they’re now very seriously considering additional sites on the Lower North Shore.”</span></p>
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