<p data-end="256" data-start="0"><a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.</p>

<p data-end="446" data-start="258">The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.</p>

<p><img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.</p>

<p>The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.</p>

<p>The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”</p>

<p data-end="626" data-start="350">Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.</p>

<p data-end="928" data-start="628">“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”</p>

<p data-end="1147" data-start="930">Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.</p>

<p data-end="1510" data-start="1149">“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”</p>

<p data-end="1510" data-start="1149"><img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" /></p>

<p>&nbsp;</p>

<p>The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.</p>

<p>Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.</p>

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.</p>
</section>


Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

<p style="text-align:start">The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;</p>

<p>The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.</p>

<p>The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.</p>

<p>Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.</p>

<p>The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.</p>

<p>As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.</p>

<p><img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" /></p>

<p>The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.</p>

<p>An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;</p>

<p>The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.</p>

<p>The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;</p>

<p>It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.</p>

<p>Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.</p>

<p>“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.</p>

<p>“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;</p>

<p>Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.</p>

<p>“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.</p>

<p>“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”</p>


Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy 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

<html><body>
<p>Auction volumes are set to rise this week, with CoreLogic RP Data tracking 2,250 auctions, up from 2,118 last week. The number of homes going to auction this week is 33 per cent higher than one year ago, when 1,695 auctions were held. Last week, the final auction clearance rate across the combined capitals fell to 74.6 per cent after 76.9 per cent of auctions were successful the previous week.</p>
<p><strong>Melbourne</strong> is expecting 962 residential auctions this week, higher than both last week (908) and last year (758). Melbourne’s clearance rate last week was 76.5 per cent, down two percentage points when compared to the previous week. Meanwhile, across <strong>Sydney</strong>, Australia’s second largest auction market, the final auction clearance rate fell last week to 77.3 per cent, after having recorded a strong preliminary result. Auction volumes remain steady across the city this week, with 916 expected, compared to 915 the previous week and much higher than last year when 641 Sydney homes were taken to auction.</p>
<p>This week, <strong>Adelaide</strong> is the only city where the number of auctions expected (79) is lower than last week (83). The cities clearance rate fell substantially last week, down from 77.4 per cent the previous week to 68.1 per cent.</p>
<p>Across all other capital cities, auction markets are busier this week. <strong>Brisbane</strong> has 160 auctions scheduled, up from 130 last week; <strong>Canberra</strong> is expecting 77 auctions, compared to 50 last week, while <strong>Perth</strong> will be host to 41 auctions this week, up from 27 last week. This week, there will be 14 auctions held across <strong>Tasmania</strong>, compared to just 5 last week.</p>
<p>The suburb with the most auctions scheduled this week across Australia is Mount Waverley (Vic), where 18 residential auctions are scheduled to take place. Following on from this is the neighboring suburb of Glen Waverley where 17 homes are up for auction.</p>
</body></html>

smiller-vwPjRHTkST

Auction volumes to rise this week: CoreLogic RP Data's Shana Miller

<html><body>
<div>Total ABS Housing Finance for the month of May 2015 came it at a seasonally adjusted print of above $31 billion for the third time on record, with all three of the strongest months taking place consecutively over the three months to May.</div>
<div> </div>
<div>On a trend basis, therefore, monthly total housing finance surged to its highest ever level at $31.9 billion.<br><br>This was in spite a seasonally adjusted dip in the month of May after lending in April had threatened to explode off the top of the chart.</div>
<div> </div>
<div><a href="/images/2015/07/13/HF1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/HF1.jpg" alt=""></div>
<div> </div>
<div>
<div>On a rolling annual basis total owner-occupier lending has blazed upwards by 9 per cent over the past year to a record $212 billion.</div>
<div> </div>
<div>Meanwhile investor lending has screamed 22 per cent to $148 billion, obliterating all previous records by an enormous margin.</div>
<div> </div>
<div><a href="/images/2015/07/13/HF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/HF3.jpg" alt=""></div>
<div> </div>
<div>
<div>That said, total housing finance on a seasonally adjusted basis had been higher in April at a downwardly revised $32.5 billion, and therefore the less exuberant May result of $31.1 billion represented a decline of 5.3 per cent for owner-occupier lending and 3.2 per cent for investment loans.</div>
<div> </div>
<div>This suggests that initial action taken to tighten lending standards may have been taking some effect by the end of May.</div>
<div> </div>
<div>Overall this should be healthy news for the housing market over the medium term - rampant lending growth had been becoming far too skewed towards investors, and therefore it is doubly important for Australia that robust lending standards are maintained.</div>
<div> </div>
<div>The May figures showed investor lending as being "only" 19 per cent higher than in the prior year corresponding period following a blistering 23 per cent year-on-year increase in April - which suggests that APRA will have more work to do over the near term.<br><br>
</div>
<div>
<div>
<strong><span style="text-decoration: underline;">Premature extrapolation?</span></strong><br><br>This will doubtless result in the regulation "housing gloom" headlines, with commentators choosing to highlight the lower seasonally adjusted monthly figure rather than the trend hitting the highest level in history (the opposite of what they recommend we do when observing surprisingly strong <a href="https://petewargent.blogspot.com.au/2015/07/economy-adds-225000-jobs-in-year" target="_blank">Labour Force </a>data). </div>
<div> </div>
<div>You can make your own "captain's call" on this.<br><br>Below is the raw "Original" data - not seasonally adjusted - which shows May 2015 to be the third highest result on record for Housing Finance at $32.6 billion, with total lending actually well up on April, but a little below the $33.1 billion level seen back in March.<br><br>Westpac has already noted that the seasonal adjustment may be suffering from a technical glitch this month.</div>
<div> </div>
<div><a href="/images/2015/07/13/hf4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/hf4.jpg" alt=""></div>
<div> </div>
<div>
<div>Note that the May figures naturally would not have been affected by the latest interest rate cut, with market activity through June and July having suggested something of a lift.<br><br>Whether or not mortgage approvals and in turn property markets begin to tee off again around October/November time remains to be seen.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">4 observations</span></strong></div>
<div> </div>
<div>A few points to make here. </div>
<div> </div>
<div>Firstly, commentators have been calling a housing market slowdown for years now, yet over the three years from May 2012 the "Original" data shows owner-occupier lending has steadily increased to be 24 per cent higher, while investor lending has roared upwards by a whopping 73 per cent.</div>
<div> </div>
<div>Given the above it would be prudent to digest more than one month of near-record high figures before coming to too many hard conclusions.</div>
<div> </div>
<div>Secondly, a number of media observers seem to be labouring under the misapprehension that regulators would like to see dwelling prices declining, which is patently not the case.</div>
<div> </div>
<div>APRA sees its role at the present time as weeding out riskier lending and slowing the rate of investor credit growth down to a more sustainable pace.<br><br>One suspects that even at the first inkling of significantly falling prices the regulator will once again take a back seat.</div>
<div> </div>
<div>Thirdly, the cost of mortgage debt remains almost absurdly cheap - it's possible to obtain mortgage rates with a "3 handle" right now - so if credit is not unduly restricted there is plentiful untapped demand for mortgage credit with a strongly expanding population and around 225,000 new jobs created in the past 12 months.<br><br>The market hasn't run out of willing buyers and nor has underlying demand mysteriously dried up overnight; rather it has been temporarily curbed by regulatory intervention.<br><br>Recall that the latest ABS Finance &amp; Wealth data showed that in aggregate currency and deposits, superannuation balances and housing equity are all at new record highs, with total household wealth surging past a record $8 trillion<a href="https://petewargent.blogspot.com.au/2015/06/household-wealth-surges-past-8-trillion" target="_blank">.</a><br><br>
</div>
<div>Fourthly, if anything the softer result for May increases the likelihood of a further interest rate cut by November 2015.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Generalisation trap</span></strong></div>
<div> </div>
<div>By far the most important point, though, is that there is no "property market" (singular) in Australia, so it would be unwise to generalise too broadly, although due to necessity all of us do so at times.</div>
<div> </div>
<div>We already know that many resources regions are moving the process of experiencing very sharp corrections, particularly in Western Australian and Queensland.</div>
<div> </div>
<div>Owner-occupier lending has now been sliding lower in aggregate in Western Australia for 12 months, albeit fairly moderately, implying that some sectors of Perth property markets are set to lose ground.<br><br>Owner-occupier lending has also now been slipping lower in aggregate in the Northern Territory for the past seven months, so the outlook for Darwin looks to be soft too.</div>
<div>
<br>As for the Sydney market commentary - where pundits have been calling the peak every month for at the past two years - well, it's been pretty bad, hasn't it?</div>
<div> </div>
<div>There have been i<span>ndicators of the market mania waning for a little while now, yet auction clearance rates are still tracking at <span>~</span>80 </span>per cent or a little above, and the warmer months will be rolling around once again before we know it.<br><br>Meanwhile stock on market in Sydney remains at remarkably low levels.<br><br>Charted below is the rolling annual owner-occupier lending data at the state level.</div>
<div> </div>
<div><a href="/images/2015/07/13/HF2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/HF2.jpg" alt=""></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Lending standards tightened</span></strong></div>
<div> </div>
<div>On a seasonally adjusted basis owner-occupier lending declined in all states and territories in May, and fairly sharply in some cases.</div>
<div> </div>
<div>The question now is largely one of whether the regulator APRA continues to apply further pressure to outlying lenders, and if so, for how long.</div>
<div class="separator"> </div>
<div class="separator">This is all somewhat reminiscent of what we saw in England back in 2014, when the Mortgage Market Review (MMR) gummed up lending processes for several months, often with seemingly aimless box-ticking exercises and paper shuffling.</div>
<div class="separator"> </div>
<div class="separator">The pen-pushing and the SOX-style administrative obstacles certainly had the desired effect, taking the speculative heat out of the market for a fair period of time.</div>
<div class="separator"> </div>
<div class="separator">Yet borrowing rates remain remarkably cheap in Britain and average UK house prices have risen again to new record highs this month while quarterly mortgage approvals are up by 6 per cent according to the latest Bank of England data. </div>
<div class="separator"> </div>
<div class="separator">I expect that any material slowdown in Australian mortgage lending will be temporary and this housing market cycle will have a long way to run yet in Brisbane, Hobart, Canberra, and even Adelaide, despite its desperately weak full time employment trends.</div>
<div class="separator"> </div>
<div class="separator">Sydney's property markets are still gravitating higher for now, but must necessarily be closer to the end of their growth phase of the cycle than the beginning.</div>
<div class="separator"> </div>
<div class="separator">Greater Melbourne is also still humming along, but is waving through for approval extraordinary volumes of unit and apartments, which should stall rents and growth in that sector in time.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/07/13/BA2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2015/07/13/BA2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<div class="separator">Rhetoric has long suggested that the Reserve Bank needs lending finance and the housing market to be strong in order to drive consumption, particularly given the parlous state of other sectors of the economy.</div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">Supply of homebuyers</span></strong></div>
<div class="separator"> </div>
<div>An interesting aspect of this market cycle has been that the number of owner-occupier mortgage commitments has been considerably lower than we have seen in previous cycles.</div>
<div> </div>
<div><a href="/images/2015/07/13/hf6.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/hf6.jpg" alt=""></div>
<div> </div>
<div>
<span>One key driver of this has been the sheer number of first time buyers who are opting to buy an investment property as their first step onto the housing ladder.</span><br><br><span>Surveys indicate that the first time investor figures are very much material, a trend which has long been evident to anyone who works in capital city real estate, especially in Sydney.</span><br><br><div>Given the high transaction costs of buying and selling property - and with young people changing jobs and even careers more frequently than ever before - it makes a great deal of sense for many young buyers to rent where they live and invest elsewhere (provided they do so sensibly and with a long term time horizon).</div>
<div> </div>
<div>As for fading demand from homebuyers? Again, it's wrong to generalise too broadly, but here are the rolling annual <strong>numbers</strong> of mortgage commitments written by state.</div>
<div> </div>
<div><a href="/images/2015/07/13/hf5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/13/hf5.jpg" alt=""></div>
<div> </div>
<div>
<div>I know that in some inner Brisbane suburbs where house prices are now rising resolutely, only today in mid-2015 after years of stagnant prices since 2007/08 are many homeowners able to contemplate selling to downsize or move elsewhere.</div>
<div> </div>
<div>Some have been effectively trapped having paid top dollar at a preceding market peak - after stamps and holding costs only now are some vendors able to justify selling in order to move on. </div>
<div> </div>
<div>At the same time there increasingly appears to be a surge of interest from interstate investors, from New South Wales in particular.<br><br>In rolling annual terms the number of owner-occupier commitments has continued to increase in the three most populous states plus the Australian Capital Territory, but on the other hand has been declining moderately in Western Australia, South Australia, Tasmania and the Northern Territory.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div>
<br>It's worth remembering that most market commentary which looks for trends over the short to medium term is little better than educated guesswork.<br><br>After all, how many commentators were predicting Sydney prices would be up by close to 50 per cent since 2012? Not many!<br><br>The fundamentals haven't changed too much and demand for property remains close to its highest ever level.<br><br>Unemployment has declined steadily from 6.3 per cent to 6 per cent following 225,000 new jobs created over the past 12 months. Population growth has slowed to around 330,000 per annum, with the declines to be felt most keenly in the resources states. Mortgage rates are as cheap as we have ever seen.<br><br>X-factors may include heavy pressure on lenders from APRA, an implosion in China, or a black swan event.</div>
<div> </div>
<div>Finally for today, without properly dissecting the allocation of investor credit by state it is impossible to draw too many firm conclusions given that more than 40 per cent of credit is presently being written to investors.</div>
<div>
<br>I'll be back to analyse the Lending Finance figures in more detail - including investor loans by state.</div>
<div> </div>
<div>Recall that the April 2015 figures showed Lending Finance leaping to a 7 year high.</div>
</div>
<div><span><em> </em></span></div>
<div>
<span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

APRA taps on the brakes: Pete Wargent

<html><body>
<p><span>New South Wales (read: Sydney), Queensland (marginally), and Western Australia (ditto).</span></p>
<p><a href="/images/2015/07/13/alsts.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/07/13/alsts.jpg" alt=""></span></p>
<p> </p>
<p><span style="line-height: 1.3em;">Declining elsewhere.</span></p>
<p><span>No contribution to Q2 GDP to be found here.</span></p>
<p><span><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<p><span> </span></p>
</body></html>

Where is renovation activity increasing? Pete Wargent

<html><body>
<p>The Reserve Bank of Australia (RBA) was invited to make a submission to the Inquiry into Home Ownership. It's well <a href="https://www.rba.gov.au/publications/submissions/inquiry-into-home-ownership/pdf/inquiry-into-home-ownership.pdf" target="_blank">worth a read</a>. A few of the key points are summarised below.</p>
<p><span><strong>Home ownership rates</strong></span></p>
<p><span>While the media headlines chose to focus almost exclusively on a brief reference to tax legislation reform towards the end of the report, generally the Reserve was fairly moderately positioned in its viewpoints.</span></p>
<p><span>Home ownership rates at the time of the last Census in 2011 sat at 68 per cent, which represents a moderate decline, yet also a fairly stable result over the past five decades. Before the 1970s, home ownership rates were considerably lower.</span></p>
<p><a href="/images/2015/07/21/rba1.jpg">Click to enlarge</a></p>
<p><img src="/images/2015/07/21/rba1.jpg" alt=""><span style="line-height: 1.3em;"> </span></p>
<p><span>In particular, notes the RBA, home ownership rates in metropolitan regions were typically very low until the 1950s.</span></p>
<p><a href="/images/2015/07/21/rba2.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/07/21/rba2.jpg" alt=""> </span></p>
<p> </p>
<p><span>Home ownership rates in Australia today are fairly high compared to most of the world, and a little higher than those in several of the other most comparable countries.</span></p>
<p><a href="/images/2015/07/21/rba3.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/07/21/rba3.jpg" alt=""> </span></p>
<p><span><strong>Age of home ownership</strong></span></p>
<p><span>The data compiled by the RBA does show that the share of home-owning households in the 25-34 age bracket has declined over the past quarter of a century since 1980.</span></p>
<p><a href="/images/2015/07/21/rba4.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/07/21/rba4.jpg" alt=""></p>
<p><span>In part, this has been due to higher house prices, although the RBA also notes that people are doing most things later than they used to. For example, the median age of first marriage for women in 1974 was just 20.9 years.</span></p>
<p><span>There have also been a number of other significant demographic shifts according to the RBA, including higher divorce rates and an increase in the number of single-parent households.</span></p>
<p><span>The submission spent some time musing over the complex relationship between housing affordability and home ownership, where all is not quite as clear as it initially might seem.</span></p>
<p><span>For example, as the above chart shows, much of the decline in home ownership rates between the ages of 25 and 34 took place in the early 1980s, <strong>before</strong> the run-up in house prices, rather than after it.</span></p>
<p><span>Furthermore, in a curiously reflexive manner home ownership rates can oftentimes be lower in more affordable locations, with Queensland and South Australia having the lowest home ownership rates of the Australian states. </span></p>
<p><span>Another point raised by the RBA which is rarely discussed is that for some people renting makes more sense at certain points in their lives, particularly given the increased mobility of the modern labour force and the heavy transaction costs involved in buying and selling property.</span></p>
<p><span>The submission also spent some time looking at the composition of net immigration, including the projected surge in student arrivals. New South Wales and Victoria receive a disproportionate share of foreign students, with more than two-thirds of student migrants heading to those states (and to Sydney and Melbourne in particular).</span></p>
<p><a href="/images/2015/07/21/students.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/07/21/students.jpg" alt=""></span></p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><span><strong>Mortgage serviceability and the deposit hurdle</strong></span></p>
<p><span>Demand for housing was boosted for property in the 15 years or so to 2005 by financial deregulation and the structural shift to low interest rates, notes the RBA.</span></p>
<p><span>Thanks primarily low mortgage rates, <strong>initial</strong> repayments on new housing loans as a share of household disposable income are presently significantly lower than they have been, and are hovering well below the decade average.</span></p>
<p><a href="/images/2015/07/21/rba5.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/07/21/rba5.jpg" alt=""> </span></p>
<p> </p>
<p><span>The flip side to this is that rising house prices may require a higher deposit. It's also worth noting that households with two incomes today clearly have a significant advantage over those with a solitary income earner.</span></p>
<p><a href="/images/2015/07/21/rba6.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p> <img src="/images/2015/07/21/rba6.jpg" alt=""></p>
<p><span>However, the RBA does point out that 20 per cent deposits are no longer a requirement for first time buyers, where a 5 or 10 per cent deposit can often suffice:</span></p>
<p><span>"The maximum loan-to-valuation ratio (LVR) available in the Australian mortgage market has increased noticeably over recent decades, from the 80 per cent typical in the pre-deregulation period to around 95 per cent at present.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Equivalently, the deposit required of a first home buyer is no longer necessarily around 20 per cent of the purchase price, but rather, more often in the 5–10 per cent range.</span></p>
<p><span>This shift would have eased the accessibility constraint imposed by the deposit requirement more than would be apparent from a simple comparison of a fixed percentage of the median purchase price over time.”</span></p>
<p><span>In a discussion which is overwhelmingly dominated by generalisations it's inevitably tough to avoid generalising, but there's no doubt that housing markets close to the centre of Sydney have unsurprisingly become very expensive, with the population of the harbour city imminently set to surge past 5 million.</span></p>
<p><span>Though I don't follow the Melbourne market closely, I assume that inner city Melbourne presents similar dynamics.</span></p>
<p><span>The RBA submission implies that with a 5 per cent deposit requirement, areas further from the city are likely to present a more realistic entry point for first time buyers.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Unfortunately many first-time buyers in Sydney are not so keen on living in the more affordable areas such as Blacktown or the Canterbury-Bankstown region.</span></p>
<p><span>Based on the limited sample of first-time buyers I come into contact with, many prefer to buy an investment property in a so-termed "secondary location" and rent somewhere closer to the city themselves.</span></p>
<p><span><strong>"Be careful what you pray for..."</strong></span></p>
<p><span style="line-height: 1.3em;">Probably the most significant part of the RBA submission for my money was the section noting that there are "no examples of large falls in nominal house prices" either in Australia or overseas without there being significant reduction in the capacity to pay (which generally means very high interest rates, a deep recession or high rates of unemployment):</span></p>
<p><span>"There are no examples internationally of large falls in nominal housing prices that have occurred other than through significant reduction in capacity to pay (e.g. recession and high unemployment). </span></p>
<p><span style="line-height: 1.3em;">There is no mechanism to get a large and sustained level shift down in prices while a substantial fraction of the population can – safely and sustainably – service the obligations involved in paying the higher price.“</span></p>
<p><span>This echoes closely what housing economist <span>Michael Oxley</span> argued in London back in 2004. While an increase in the supply of dwellings is both necessary and desirable, this alone will not cause a material correction in house prices while the capacity for households to repay existing mortgage debt remains comfortable. </span></p>
<p><span>In larger cities, where only a small percentage of the housing stock is new in any given year, this is even more so the case.</span></p>
<p><span>This suggests that the risks of a material housing market correction are considerably higher in smaller cities and towns where unemployment rates are elevated - or at risk of becoming so - and where the new supply of dwellings as a percentage of existing stock can be higher.</span></p>
<p><span><strong>Tax legislation</strong></span></p>
<p><span>While the Pavlovian response in the media headlines called for a review of "negative gearing" legislation, what the submission really appears to be hinting at is a review of the way in which tax deductions on interest repayment interact with the capital gains tax discount in order to encourage property investment.</span></p>
<p><span>The RBA notes that tax legislation also to some extent favours owner-occupiers since capital gains are tax free and there is no taxation on imputed rent - although there are no deduction on owner-occupier mortgage repayments in Australia.</span></p>
<p><span>Recent data suggests quite clearly that a <span>greater number of Australians</span> are leaning towards buying property as an investment rather than as a home.</span></p>
<p><a href="/images/2015/07/21/HF3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/07/21/HF3.jpg" alt=""></p>
<p><span> </span></p>
<p><span>While unsurprisingly and perhaps reassuringly the greater share of household debt is held by those who can afford it - higher than average income earners - equally the evidence that wealthy Australians are "rorting" negative gearing through residential property as a tax shelter seems rather sketchy.</span></p>
<p><span>More than 90 per cent of those using negative gearing deductions are claiming deductions on only one or two investment properties - and nearly three quarters of them are claiming on just one.</span></p>
<p><span>As such, if the wealthy citizens of Australia are trying to rort this so-called "tax shelter" that is the prevailing tax legislation, they don't seem to be doing so very effectively.</span></p>
<p><span>Realistically, most genuinely wealthy Australians have better things to do with their money than rack up net rental losses through negatively gearing investments in the cottage industry that is property investment.</span></p>
<p><span>Noted the RBA:</span></p>
<p><span>"The ability to deduct legitimate expenses incurred in the course of earning income is an important principle in Australia’s taxation system, and interest payments are no exception to this. </span></p>
<p><span>To the extent that negative gearing induces landlords to accept a lower rental yield than otherwise (at least while continued capital gains are expected), it may be helpful for housing affordability for tenants".</span></p>
<p><span><strong>Sydney boom</strong></span></p>
<p><span>Finally, the RBA submission somewhat unsuccessfully attempted to divert some attention away from the booming Sydney property market through suggesting that the ratio of house prices in Sydney to those in other capital cities is merely reverting to trend.</span></p>
<p><a href="/images/2015/07/21/sydney.jpg" target="_blank"><span> Click to enlarge</span></a></p>
<p><span><img src="/images/2015/07/21/sydney.jpg" alt=""></span></p>
<p> </p>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</body></html>

RBA submits on home ownership: Pete Wargent

<html><body>
<p><span style="line-height: 1.3em;">Subdivision is one of the many ways you can develop property. It involves converting one piece of land or existing dwellings into several.  </span></p>
<p>Raw land subdivision entails legally and physically converting raw, undeveloped land into developed land so that one or more buildings - residential, commercial or industrial - can be constructed.  As you will be changing the lands usage and appearance for example perhaps from a rural rezoned paddock into a residential land subdivision, you’ll also be building the infrastructure required such as roads, paths, drainage systems, water, sewerage and perhaps even public utilities such as a park.  </p>
<p>You can also subdivide developed land (much more easily) by simply splitting a block in half.</p>
<p>Subdivision of existing buildings is the conversion of a single title to multiple titles. For instance, a block of 10 units on a single s title - often referred to as units ‘in one line’ – can be converted into individual titles such a strata title. This is a great way to add value to the properties and allows you to sell them off individually.</p>
<p>Subdivision is a great development strategy for the current market conditions.  It gives you flexibility to play is safe and sell off a newly created piece of land to reduce your loan, or to hold and add value to the property by registering the new lots and holding or further developing them. </p>
<p>The objective here is to have a creative outlook while searching for potential subdivision sites as it is this creativity that can determine the success of the development.</p>
<p><strong>So when would you subdivide?</strong></p>
<p>An investor might buy a dwelling that is on a large piece of land, where they can renovate a house and then subdivide or perhaps you are a homeowner living on a potential development site where subdivision may be permissible. The site will however, need to adhere to the council regulations.  The first question you need to ask council is ‘<strong>what is the minimum lot size?’</strong>  You can find this out from your council’s Development Control Plan (DCP) for Subdivision and their guidelines.  The minimum lot size will vary from council to council and from different zonings. </p>
<p>The residential minimum lot size will be smaller than the rural zoned land size.  One council Property Bloom works with has a residential minimum lot size is 450sqm.  So we can subdivide a 900sqm corner block into two lots. However, if we had a 900sqm piece of land that was <em>not</em> on a corner, then we could not subdivide this, as we also need to allow for a driveway to access the back lot and the area needed for the driveway is in addition to the minimum 450sqm.  So we need a block of land approximately 1100sqm in size to be able to subdivide and allow for our access handle.   Another type of property to look for is land with two street frontages, so if it is 900sqm in size and the minimum lot size is 450sqm you can literally cut it in half and each lot will have its own street frontage. </p>
<p><strong>Different types of Subdivision</strong></p>
<p>When looking to develop with subdivision, it’s important you understand the different types of subdivisions. Getting professional advice will help you to make the best decision for your site and also which potential purchase will make the process through council the smoothest. </p>
<p>Strata Subdivision – Dividing a property into separate units, apartments or villas.  Strata is land title based on the horizontal division of air space and may involve common areas shared by each title holder and usually managed by a strata manager.</p>
<p>Torrens Subdivision – Dividing one land lot into two or more separate land titles. This form of subdivision gives the owner complete autonomy with their land as they don’t have to answer to the strata manager or adhere to certain strata rules and regulations.</p>
<p>Community Subdivision – A development with common property such as roads may be used by all residents. </p>
<p><strong>The Figures</strong></p>
<p>When budgeting for your subdivision you’ll need to start with a realistic target for how much the completed development will be worth, and then subtract costs to calculate profitability. It’s important to run a feasibility analysis on the subdivision including possible costs for stamp duty, legal fees, surveyor services, council application and developer charges, civil works and service connections such as gas electricity and water.</p>
<p>Make sure you also discuss your subdivision strategy with an accountant and understand the tax and GST implications if you are planning to sell.  You will also need to estimate your holding costs such as interest on your loan and rates. Remember, if it’s a straight land subdivision you won’t have an income from the property to help offset your holding costs, so time is literally money in this type of development. </p>
<p><strong>Location</strong></p>
<p>Getting the location right can either make or break your development success. Research is essential to ensure you are developing property where people in that area want to live. You have to totally remove yourself from the development as you won’t be living in it, your target market will be.</p>
<p>Inner cities are limited with the availability of land so in this case strata division is being created through developments.  Looking at a radius of a few hours outside of a capital city allows you to be more creative in your development. There may also be more room for growth in the outskirts especially if there is investment in infrastructure taking place in that area. </p>
<p><strong>Choosing the Right Property</strong></p>
<ul>
<li>The first item you need to properly assess a potential subdivision site is a survey. It’s amazing how many sales contracts I review that do not include a survey.  You may need to pay for this before exchanging as you need to be sure of the land size and whether there are any easements affecting it.  </li>
<li>The next item I always ask for is the sewer diagram. You need to know where the sewer is located and if it is actually feasible, based on the slope of the land, to cost effectively extend the service to service a new lot. </li>
<li>You need to check the slope of the site for drainage issues.</li>
<li>Check the aspect of the site and think ahead of where any new dwellings will sit to take advantage of the aspect.</li>
<li>Research the zoning regulations and read council’s subdivision guidelines.</li>
<li>Compare market value – is vacant land in demand?</li>
<li>Check service connections – is there sewer available in the area, is there an electricity source close by?</li>
<li>Corner blocks are good for your first subdivision </li>
<li>Structure of Property – this is important if you are developing a strata division as the building will need to be structurally sound to handle the requirements such as firewalls between units.</li>
<li>Have your solicitor check for restrictive covenants or easements. You may find land in a new estate has a covenant over it that does not allow for further subdivision.</li>
</ul>
<p>There are many more things to consider when planning a subdivision, so make sure you engage professionals to assist you if you’re a beginner. A development project manager will be able to work with you on every stage of the process and you’ll be amazed at how much you learn along the way. </p>
<p><em>Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </p>
</body></html>

jochivers-wq5Bp59R5a

Understanding subdivision: Jo Chivers

<html><body>
<p>The preliminary auction clearance rate across the combined capital cities was 74.1% this week, across 1,784 reported results.</p>
<p>There were a total of 2,192 auctions held across Australia’s capitals this week, up from 2,118 last week. This week’s preliminary clearance rate remained relatively steady over a week on week basis (74.6 per cent) and this year’s result continues to track higher than one year ago, when 69.5 per cent of reported auctions were successful. The number of homes taken to auction this year is also much higher than over the same week last year (1,695) and on a year to date basis, there has been 7.6 per cent more auctions this year than at the same time last year.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Capital-City.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Capital-City.jpg" rel="wp-prettyPhoto[g5440]"><img class="aligncenter size-full wp-image-5444" src="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Capital-City.jpg" alt="20150824 Capital City" width="1076" height="816"></a></p>
<p><strong>Melbourne’s</strong> preliminary clearance rate of 73 per cent is lower than last week’s final clearance of 76.5 per cent and the lowest result for the city since mid-February. There were 943 auctions across the city this week, higher than both last week, when 908 auctions were held and last year, when 758 Melbourne homes were taken to auction. Last year, the final auction clearance rate over the week was 70.7 per cent. All of Melbourne’s individual sub-regions saw clearance rates of 70 per cent or higher this week, except for Inner Melbourne, which was host to the highest volume of auctions this week (206) and saw 69.5 per cent of the 190 reported results sell.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Melbourne.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Melbourne.jpg" rel="wp-prettyPhoto[g5440]"><img class="aligncenter size-full wp-image-5441" src="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Melbourne.jpg" alt="20150824 Melbourne" width="1086" height="730"></a></p>
<p>Across <strong>Sydney</strong>, 903 homes were taken to auction this week, with a preliminary clearance rate of 79.9 per cent. This week’s result for the city is higher than last week’s final clearance rate of 77.3 per cent and similarly, higher than over the comparable week last year (76.1 per cent). While the clearance rate for the city is higher, the number of homes taken to auction across the city over the last two weeks has been comparable, with just 12 less auctions this week compared to last week. Last year there were 758 auctions. Based on preliminary results, Sydney’s Central Coast recorded the strongest clearance rate this week, with 90.9 per cent of the 22 reported results successful. Following on from this, City and Inner South was the next best performer, with 89.2 per cent of the 74 reported results selling.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Sydney.jpg" rel="wp-prettyPhoto[g5440]"><img class="aligncenter size-full wp-image-5445" src="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Sydney.jpg" alt="20150824 Sydney" width="1082" height="732"></a></p>
<p>So far this week, 104 <strong>Brisbane</strong> auctions have been reported to CoreLogic RP Data, with a preliminary clearance of 54.8 per cent. There were 130 Brisbane auctions last week, with a clearance rate of 57.5 per cent, while one year ago, 51.2 per cent of the 134 auctions were successful. This week, 59 auctions were held across the <strong>Gold</strong> <strong>Coast</strong> with a preliminary clearance rate of 57.1 per cent across 35 results.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Brisbane.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Brisbane.jpg" rel="wp-prettyPhoto[g5440]"><img class="aligncenter size-full wp-image-5443" src="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Brisbane.jpg" alt="20150824 Brisbane" width="1067" height="712"></a></p>
<p><strong>Adelaide</strong> was host to 87 auctions this week and preliminary results show that 74.2 per cent of auctions were successful. Last week, Adelaide’s final auction clearance rate was 68.1 per cent, while one year ago 67.2 per cent of auctions were sold.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Adelaide.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Adelaide.jpg" rel="wp-prettyPhoto[g5440]"><img class="aligncenter size-full wp-image-5442" src="https://blog.corelogic.com.au/wp-content/uploads/2015/08/20150824-Adelaide.jpg" alt="20150824 Adelaide" width="1064" height="724"></a></p>
<p><strong>Perth’s</strong> preliminary clearance rate was 37.5 per cent this week, up from 30.4 per cent last week and 37.9 per cent one year ago.</p>
<p>The clearance rate for <strong>Canberra</strong> was 71.1 per cent this week based on preliminary results. Over the previous week Canberra’s clearance rate was 72.1 per cent, while one year ago, 70.7 per cent of reported results were sold. This week’s result for Canberra indicates the 4th consecutive week in which the cities clearance rate has been above the 70 per cent mark.</p>
<p>There were 6 <strong>Tasmanian</strong> auctions reported to CoreLogic RP Data this week, with 4 sales.</p>
</body></html>

Melbourne’s lowest clearance rate since February: CoreLogic RP Data's Shana Miller

<html><body>
<div>The latest APRA figures showed that loans with redraw and offset facilities have continued to flourish and become more popular than ever before. </div>
<div> </div>
<div>But check these two charts out below. </div>
<div> </div>
<div>Firstly, a massive $44 billion of loans of $96 billion new residential housing loans written in the June quarter were accounted for by interest only products.</div>
<div> </div>
<div><a href="/images/2015/08/26/IO2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/IO2.jpg" alt=""></div>
<div> </div>
<div><span>And secondly, to put this in its recent historical context, $44 billion reprsents an incredible 45.8 per cent of new loan exposures written.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/26/IO1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div> </div>
<div><span><img src="/images/2015/08/26/IO1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator">In summary, it is true that offsets and redraw facilities are included in new loan products more than has ever been the case before.</div>
<div class="separator"> </div>
<div class="separator">However, with somewhere now approaching half of new loans written not requiring immediate repayments against the loan principal there appears to be an increasingly heavy reliance on borrowers managing their personal finances responsibly.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</body></html>

Interest only loans boom: Pete Wargent

<html><body>
<p><strong><em>Hi Margaret,</em></strong><br><br><strong><em>I've recently purchased commercial real estate in the last 30 days in VIC (settlement has been completed).</em></strong><br><br><strong><em>I registered it under company "1 PTY LTD", however I wish to change this to a different company (I remain as the company director of the new company).</em></strong><br><br><strong><em>Stamp duty cost me 100k+ (I don't wish to pay this again).</em></strong><br><br><strong><em>Is the above possible without attracting stamp duty on the building if a mistake was made?</em></strong></p>
<p><span> </span></p>
<p><span><span>It may be hard for you to convince the office of state revenue that you made a mistake on this one - when you received the contract it would have asked for the purchaser's detail, the documents would have been signed by you as that purchaser and the State Revenue Office would have relied on these documents for the purpose of assessment of duty.</span><br><br><span>As this one is outside of my own area of expertise I consulted Paul Sande from Asset Conveyancing.  He is an expert in conveyancing in all states, as this area is markedly different from state to state.</span><br><br><span>He believes that there may be another avenue available to you.</span><br><br><span>Sec 250A of the Duties Act 2000 provides for an exemption from duty for an eligible transaction where there is a legitimate reconstruction of corporate groups. An eligible transaction is any of the following that occurs on or after 1 January 2004:-</span><br><br><span>1. A transfer of dutiable property from one member of a corporate group to another member of the group;</span><br><span>2. A relevant acquisition by a member of a corporate group from another member of the group to which Sec 83 of the Duties Act applies;</span><br><span>3. A declaration of trust to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by one member of a corporate group under which the dutiable property is held on trust for another member of the group; or</span><br><span>4. Any other transaction that results in the beneficial ownership of dutiable property moving from one member of a corporate group to another member of the group.</span><br><br><span>Paul says that the Commissioner needs to be satisfied, amongst other things, that the eligible transaction does not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of the corporate reconstruction exemption.</span><br><br><span>In your case you did this inadvertently and so there was no intent to gain any particular advantage here. Your best course of action is to consult your office of state revenue, explain that you wish to reconstruct the corporate group to have this property held by another member of that group, and see what they say about this.</span></span></p>
<p><span><span><em>Have a property question?       <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></em></span></span></p>
</body></html>

mlomas-KC9MUPZ6Ca

Ask Margaret: Convincing the Office of State Revenue

<html><body>
<p>Given the impact of technology on our everyday life it’s not surprising that any list of the world’s top brands is tech dominated.</p>
<p>If you own a smartphone you might well interact with one of these brands as the first and last thing you do every day, as you check the time or check your emails. As you might already have guessed currently the world’s number one brand is Apple, followed by Microsoft, Google, Coca Cola and IBM, it’s the tech brands that dominate the top 50 brands.</p>
<p>Ikea is the highest ranked brand that could be related to homemaking, however the value of a successful brand is an important part of property marketing. One reason is that as more of us continue to live in cities we are also looking to secure our identity, and where we live is central to this. The branding of suburbs, apartment buildings, housing estates, different states and right on to brand Australia, all of these tie into the essence of our marketing and as a marketing tool and part of the sales path, this topic deserves a lot attention.</p>
<p><strong>House Names to Brand Australia</strong></p>
<p>Perhaps the most common property related brand would be the name given to individual houses, this has been a long tradition in many countries including Australia. While house names might have originally helped the postman deliver the mail, they are a popular part of our residential history.</p>
<p>It does appear, and perhaps not surprisingly, that Australian house names are often associated with the sea, or at least an association with being near to or having a view of water. Some of the more obvious examples include Driftwood, Bay Cottage, Lakeview, Seaview, Waterfront and Seacrest, and at least a few of these have been recycled as names and brands for apartment blocks. I am sure we have all at least seen more than one Seaview or Waterfront apartment project name!</p>
<p>House names and terrace row names are really living history and add interest and colour to many an inner-city suburb across Australia. Then as far as real estate is concerned we have brand Australia itself.</p>
<p>Brand Australia has some both familiar, and some lofty aspirations and these include core values like: friendly people, an attractive natural environment, resources, quality lifestyle, sunny, confident, creative, outward looking and talented, grand and impressive!</p>
<p>In a very matter-of-fact but interesting way, many of these same values are the very attributes that attract offshore buyers to our country and our local property market. Such brand values are almost priceless but they do underscore beyond the dollars and bricks and mortar why we are such a popular market with offshore buyers.</p>
<p><strong>Creating Brand Value</strong></p>
<p>Brands aim to create a personality, brand awareness and it’s an ongoing and complex task. I am not an expert, here my aim is to acknowledge how important brands are in project marketing. For the actual success of projects, in the eyes and mind-set of buyers, for developers and for the marketing agents, we all benefit and can I suggest <em>need</em> strong brands, and this also extends to personal brands. In today’s world a personal brand is no longer something just for a handful of personalities.</p>
<p>I think it’s useful if we tick off some of the key ways any brand is created and sustained. Firstly there is a need to create energy around the process and the wide participation of all team members. Creativity is not something you can buy in a bottle or a neat package, that’s why team involvement in particular with a major project is a good idea. While there has to be a lead taken, to avoid an endless round of likes and dislikes, involving the project team never does any harm and is usually positive.</p>
<p>There are also some well-regarded measures for how the success of a brand is measured and this includes longevity, a brand that is easy to remember, is unique, keeps things fresh, reflects passion and must have consistency.</p>
<p>For buyers there might also be another test. If you happen to live in a block of 100 or 200 apartments you want the brand to be well regarded, in particular that’s important when it comes time to sell.</p>
<p><strong>I Can’t Imagine Living Anywhere Else!</strong></p>
<p>If every buyer we have dealt with was happy to say these words, then in every respect we have doubtless created a building or a new estate with a great brand.</p>
<p>When thinking about a residential project brand, one aim is to create and build the project’s reputation, to humanise the brand and encourage a strong word of mouth connection.</p>
<p>While there are graphic and design considerations, the appeal of a brand should also aim to reinforce key aspects of a project’s lifestyle. Inspiration can come from how potential residents might interact with the environment, for example by having a morning ritual or relaxing at or near home.</p>
<p>The creation of a strong brand that reflects all of the key aspects of a project can have considerable appeal and will also aid social media and can directly help create more web traffic. For larger, longer-term projects this sort of brand awareness has big up-side advantages.</p>
<p>There is also strong synergy between individual project brands and the brand qualities of the developer because the two are intertwined. Strong brand values for any developer will pay off handsomely as they help sustain off-the-plan sales, where the buyer’s trust in the end product is important.</p>
<p>Buyers, the future residents of a building or an estate are not only attracted by brands that represent the height of fashion, the core idea is to create ownership of the project in the most positive light. The brand can also then galvanise and give focus to all aspects of the project.</p>
<p><strong>Gentrification A Good Example</strong></p>
<p>Looking for a good example we need to look no further than how clever branding has been used to re-cast the gentrification of many former industrial areas on the fringe of many of our capital cities.</p>
<p>In areas like Sydney’s south-east entire groups of suburbs have been ‘re-branded’ with a great mix of residential, commercial and social infrastructure and innovative building design to create very desirable areas. The combination of facilities has been important in building the brand in these areas, and new shops, cafes and even supermarkets with extended trading have all played their part. This process of gentrification is perhaps one of the best examples I could use to show the power of brands in our field.</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
</body></html>

pchittenden-eLqUUC8TWW

The role of brands in marketing projects: Peter Chittenden

<html><body>
<p>Another fascinating week with Australia experiencing a significant stock market correction followed by the National Reform Summit which in all probability won’t amount to anything given the responsibility rests with our politicians. When it comes to anything economic in Australia we see a typical allergy where they are too frightened to come into contact with these issues.</p>
<p>Since 2013, the internet population grew approximately 20% – from 2.4 billion to 3.2 billion people yet for some strange reason we still struggle to understand data, or is it that the data we should be seeing is withheld? Australia’s misunderstood property markets are a prime example – with Sydney well ahead of the country in terms of inaccuracy in reporting.</p>
<p>One of the main areas for concern to come from the National Reform Summit was productivity where many believe Australia has come to a grinding halt which is replicated with our present GDP growth rates. For some time now I have been carefully watching property growth rates which (wait for it) closely resemble our GDP results.</p>
<p>To further explain we closely looked at sales data from 2009 to 2014 for house and apartment sales in Seaforth, Mosman, Cremorne, Neutral Bay, Cammeray and Northbridge where the total number of households equates to 39,227.<em>Source CoreLogic RP Data.</em></p>
<p>We need to bear in mind that when you closely examine individual suburb markets at five (5) per cent turnover per annum the market turnover is normal and slightly under-performing. When it gets to ten (10) % per annum turnover the market is considered strong and when the market hits fifteen (15) % turnover per annum that is a boom. The last time we witnessed the market hitting 15% was in 1988.</p>
<p>So we took the six year averages for sales and this is what we found.</p>
<ul>
<li>Seaforth – Average number of sales from 2009 to 2014 per annum – 120 houses which equates to 5.1% of the total market on a per annum basis.</li>
<li>Seaforth – Average number of sales from 2009 to 2014 per annum – 16 apartments which equates to 4.7% of the total market on a per annum basis.</li>
<li>Mosman – Average number of sales from 2009 to 2014 per annum – 312 houses which equates to 5.3% of the total market on a per annum basis.</li>
<li>Mosman – Average number of sales from 2009 to 2014 per annum – 492 apartments which equates to 4.9% of the total market on a per annum basis.</li>
<li>Cremorne – Average number of sales from 2009 to 2014 per annum – 62 houses which equates to 4.6% of the total market on a per annum basis.</li>
<li>Cremorne – Average number of sales from 2009 to 2014 per annum – 278 apartments which equates to 5.0% of the total market on a per annum basis.</li>
<li>Neutral Bay – Average number of sales from 2009 to 2014 per annum – 55 houses which equates to 4.95% of the total market on a per annum basis.</li>
<li>Neutral Bay – Average number of sales from 2009 to 2014 per annum – 323 apartments which equates to 4.8% of the total market on a per annum basis.</li>
<li>Cammeray – Average number of sales from 2009 to 2014 per annum – 56 houses which equates to 5.6% of the total market on a per annum basis.</li>
<li>Cammeray – Average number of sales from 2009 to 2014 per annum – 147 apartments which equates to 5.5% of the total market on a per annum basis.</li>
<li>Northbridge – Average number of sales from 2009 to 2014 per annum – 88 houses which equates to 4.3% of the total market on a per annum basis.</li>
<li>Northbridge – Average number of sales from 2009 to 2014 per annum – 28 apartments which equates to 5.5% of the total market on a per annum basis.</li>
</ul>
<p>When one takes into account that the cash rate at the beginning of 2009 was 3.25% and dropping to 2.50 at the end of 2014 we would have expected the number of properties to be rapidly increasing – which has not been the case. Moreover this reaffirms that business is not doing that well given households are not that interested in taking on more debt, which certainly resonated with a lot that was presented at the National Reform Summit.<br>.<br>The burning question is what is Canberra going to do about this?</p>
<h5>Mosman Houses Sold – Total Number 5,890 Houses</h5>
<p>2009 – 303<br>2010 – 325<br>2011 – 264<br>2012 – 276<br>2013 – 355<br>2014 – 350</p>
<h5>Mosman Apartments Sold – Total Number 10,020 Apartments</h5>
<p>2009 – 523<br>2010 – 453<br>2011 – 474<br>2012 – 443<br>2013 – 543<br>2014 – 514</p>
<h5>Cremorne Houses Sold – Total Number 1,135 Houses</h5>
<p>2009 – 71<br>2010 – 65<br>2011 – 56<br>2012 – 56<br>2013 – 66<br>2014 – 59</p>
<h5>Cremorne Apartments Sold – Total Number 5,481 Apartments</h5>
<p>2009 – 339<br>2010 – 302<br>2011 – 288<br>2012 – 218<br>2013 – 267<br>2014 – 255</p>
<h5>Neutral Bay Houses Sold – Total Number 1,109 Houses</h5>
<p>2009 – 61<br>2010 – 69<br>2011 – 51<br>2012 – 51<br>2013 – 61<br>2014 – 40</p>
<h5>Neutral Bay Apartments Sold – Total Number 6,638 Apartments</h5>
<p>2009 – 411<br>2010 – 362<br>2011 – 287<br>2012 – 283<br>2013 – 308<br>2014 – 286</p>
<h5>Cammeray Houses Sold – Total Number 1,275 Houses</h5>
<p>2009 – 58<br>2010 – 50<br>2011 – 50<br>2012 – 56<br>2013 – 64<br>2014 – 61</p>
<h5>Cammeray Apartments Sold – Total Number 2,610 Apartments</h5>
<p>2009 – 156<br>2010 – 194<br>2011 – 156<br>2012 – 107<br>2013 – 135<br>2014 – 137</p>
<h5>Northbridge Houses Sold – Total Number 1,914 Houses</h5>
<p>2009 – 88<br>2010 – 63<br>2011 – 68<br>2012 – 89<br>2013 – 102<br>2014 – 94</p>
<h5>Northbridge Apartments Sold – Total Number 504 Apartments</h5>
<p>2009 – 32<br>2010 – 33<br>2011 – 20<br>2012 – 23<br>2013 – 35<br>2014 – 27</p>
<h5>Seaforth Houses Sold – Total Number 2,317 Houses</h5>
<p>2009 – 113<br>2010 – 109<br>2011 – 113<br>2012 – 121<br>2013 – 138<br>2014 – 127</p>
<h5>Seaforth Apartments Sold – Total Number 334 Apartments</h5>
<p>2009 – 21<br>2010 – 11<br>2011 – 10<br>2012 – 14<br>2013 – 17<br>2014 – 26<br><em>Source – CoreLogic RP Data</em></p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 69</p>
<p>• Number of houses on the market last week – 53</p>
<p>• Number of houses on the market this week – 65</p>
<p>• Number of apartments on the market this time last year – 51</p>
<p>• Number of apartments on the market last week – 41</p>
<p>• Number of apartments on the market this week – 42</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 2</p>
<p>• Number of houses on the market this week – 4</p>
<p>• Number of apartments on the market this time last year – 15</p>
<p>• Number of apartments on the market last week – 15</p>
<p>• Number of apartments on the market this week – 18</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 4</p>
<p>•Number of houses on the market this week – 2</p>
<p>• Number of apartments on the market this time last year– 36</p>
<p>• Number of apartments on the market last week – 25</p>
<p>• Number of apartments on the market this week – 30</p>
<p> <em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
<p><em> </em></p>
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News