<p data-end="309" data-start="290"><strong data-end="309" data-start="290">Article summary</strong></p>

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
<p data-end="896" data-section-id="ojaazg" data-start="792">Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.</p>

<p data-end="1358" data-start="1137">The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.</p>

<p data-end="1358" data-start="1137">[smartcode_project:default project_id=90059 project_image_fid=374075]</p>

<p data-end="1577" data-start="1360">Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.</p>

<p data-end="1781" data-start="1579">The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.</p>

<p data-end="1977" data-start="1783">The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.</p>

<p data-end="1977" data-start="1783">[smartcode_project:default project_id=90059 project_image_fid=374059]</p>

<p data-end="2314" data-start="1979">One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.</p>

<p data-end="2423" data-start="2316">Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.</p>

<p data-end="2519" data-start="2425">"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.</p>

<p data-end="2688" data-start="2521">"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."</p>

<p data-end="2688" data-start="2521">[smartcode_project:default project_id=90059 project_image_fid=374060]</p>

<p data-end="2840" data-start="2690">Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.</p>

<p data-end="2900" data-start="2842">"Materiality tells the story of a place," Williamson said.</p>

<p data-end="3105" data-start="2902">"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."</p>

<p data-end="3300" data-start="3107">Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.</p>

<p data-end="3300" data-start="3107">[smartcode_project_cta:default project_id=90059]</p>


Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.</p>

<p data-end="1296" data-start="1013">The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion</p>

<p data-end="1296" data-start="1013"><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;</p>

<p>“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" /></p>

<p>Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.</p>

<p>“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.</p>

<p>“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.</p>

<p>“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" /></p>

<p>Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p>A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.</p>

<p>Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.</p>

<p>While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" /></p>

<p>Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.</p>

<p>Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.</p>

<p>The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" /></p>

<p>The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.</p>

<p>In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.</p>

<p>Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.</p>

<p>According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.</p>

<p>Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.</p>

<p>The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a></em></p>

<p>&nbsp;</p>


Alfred Street the latest North Sydney pocket to be transformed by residential development

<p>Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.</p>

<p>For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.</p>

<p>Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.</p>

<p>"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374893]</p>

<p>Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.</p>

<p>The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;</p>

<p>Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.</p>

<p>Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=269527]</p>

<p>Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.</p>

<p>"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."</p>

<p>The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.</p>

<p>"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374892]</p>

<p>Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.</p>

<p>Construction is underway with completion expected in mid-2027.</p>

<p>[smartcode_project_cta:default project_id=7354]</p>


Boutique Gordon townhomes now come with a BMW iX3 50

<p>Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.</p>

<p>The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.</p>

<p>The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.</p>

<p><a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.</p>

<p>The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359521]</p>

<p>The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359527]</p>

<p><a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.</p>

<p>"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.</p>

<p>"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.</p>

<p>"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.</p>

<p>"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359523]</p>

<p>The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.</p>

<p>Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.</p>

<p>EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.</p>

<p>WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.</p>

<p>"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.</p>

<p>"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."</p>

<p>Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145590]</p>


Vitale breaks Byron Bay records with EADE sales flurry 

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.</p>

<p>The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).</p>

<p>Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.</p>

<p>Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.</p>

<p>The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.</p>

<p>There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

<p>While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

<p>The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.</p>

<p>While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.</p>

<p>It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.</em></p>


Every First Home Owner Grant for new property by state

<p>In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.</p>

<h2>What is NatHERS?</h2>

<p>NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.</p>

<h2>How NatHERS Ratings Work</h2>

<p>NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.</p>

<p>The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;</p>

<p>Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.</p>

<p><strong>Cost Savings:</strong> Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.</p>

<p><strong>Environmental Impact:</strong> Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.</p>

<p><strong>Improved Comfort: </strong>Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.</p>

<p><strong>Market Value and Desirability:</strong> Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.</p>

<p><strong>Compliance with Building Codes:</strong> NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.</p>


The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.</p>

<h3>Convenience and accessibility</h3>

<p>Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.</p>

<h3>Vibrant lifestyle and community</h3>

<p>One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.</p>

<h3>Enhanced security and maintenance</h3>

<p>Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.</p>

<h3>Live-work-play balance</h3>

<p>One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.</p>

<p>The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe></p>

<h2>Who pays Stamp Duty?</h2>

<p>In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.</p>

<p>You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

<p style="line-height:1.38">Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.</p>


Ellen Walker

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

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

<html><body>
<p><span>The retired politician activist Peter Garrett has listed his Southern Highlands retreat.</span></p>
<p><span>The historic Queen Anne Federation Rowe Cottage has undergone extensive renovation since bought (pictured circa 1995) for $531,000 in May 1995 through Peter Shaw First National.</span></p>
<p><span><img class="attachment-big wp-post-image" src="https://www.drewlindsay.com.au/wp-content/uploads/2015/05/DSC4651-640x360.jpg" alt='‘Rowe’, Mittagong &lt;strong&gt;&lt;span style="color: #ff0000;"&gt;NEW&lt;/span&gt;&lt;/strong&gt;' title='‘Rowe’, Mittagong &lt;strong&gt;&lt;span style="color: #ff0000;"&gt;NEW&lt;/span&gt;&lt;/strong&gt;'></span></p>
<p><span>Previously Kangaroo Valley weekenders, the Garretts have been often based at the 5.8 hectare Mittagong since they sold their Balgowlah home for $585,000 in 1995.</span></p>
<p><span>But Peter and wife, Doris are now making a move back to their newly acquired $2.7 million Paddington terrace.</span></p>
<p><span>He retired from parliament at the 2013 federal election, selling his electorate abode earlier this month on Gordon Street, Randwick at $1,321,000.</span></p>
<p><a href="https://www.drewlindsay.com.au/?property=rowe-bong-bong-road-mittagong-new" target="_blank">Rowe Cottage</a> has been listed with $3.3 million plus hopes through Drew Lindsay Real Estate agent John Renouf.<span style="line-height: 1.3em;">They might buy a smaller retreat after the sale.</span><span style="line-height: 1.3em;">Rowe Cottage was among the </span><span style="line-height: 1.3em;">Mittagong Cottage Homes</span><span style="line-height: 1.3em;">, established from 1885 by the State Children's Relief Board.</span></p>
<p><span>They were houses that each held 20 children, ranging in age from infancy to adolescence.</span></p>
<p><span>The cottages had different functions, as hospitals, disability and truancy institutions, convalescent homes, transit points between foster placements and the reformatory Mittagong Farm School and Training School.</span></p>
<p><span>More than 30,000 state children passed through the cottages. </span></p>
<p><span>The Mittagong Cottage Homes had an important role in the New South Wales Government's child welfare system.</span></p>
<p><span>Mittagong, it was argued, had a healthy climate which enabled children to gain health and strength and education, surrounded by good farming land, which provided the food necessary to run the homes.</span></p>
<p><span>Their programmes included orcharding, dairying, general farming, tailoring, bootmaking, carpentry, poultry and pig farming.</span></p>
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jchancellor-FAypfDUnLy

Peter Garrett lists Mittagong, Southern Highlands cottage

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<div>The ABS released its <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8755.0" target="_blank">Construction Work Done</a> figures for Q1 2015 which saw total construction work done decline by 2.4% to $48.4 billion.</div>
<div> </div>
<div>It's a bit of an awkward data release with a few moving parts, but let's see if I can simplify a few of the key messages here in three short parts.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Total construction slips</span></strong></div>
<div>
<br>As you can see from my chart below, private sector building work is responding rather nicely to low interest rates.</div>
<div> </div>
<div>Unfortunately, on the other hand, spend in the public sector is contributing very little to the cause.<br><br>Quarterly public sector expenditure fell to below $2.2 billion, which is far below the more stimulatory levels seen through the financial crisis which peaked at more than $5 billion.<br><br>The economy could evidently use some infrastructure investment, though I'm not at all sure we'll get it.</div>
<div> </div>
<div>Meanwhile engineering construction, largely comprised of resources capital expenditure, continues to capitulate, now more than 20% lower over the past year to $24.8 billion in Q1, from a peak of $33.2 billion in 2012.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent1.jpg" alt=""></div>
<p> </p>
<div>The net result is that total construction work done declined further in the first quarter by 2.4% to $48.4 billion.</div>
<div> </div>
<div>This is still a very high level of activity in historical terms, but now some 8.8% lower than one year ago.</div>
<div> </div>
<p><img src="/images/2015/05/28/wargent2.jpg" alt=""><br><br></p>
<div>The one shining light for construction - which you will have seen with your own eyes if you live in one of the major capital cities - is residential construction, which continues to pulse along.</div>
<div> </div>
<div>House building work done is picking up sharply, while the value of building work done relating to units and apartments (denoted by the red line below) continues to surge to new record highs through this cycle.</div>
<div> </div>
<div>Higher density developments - which tend to be located in cities and come with associated expensive land remediation costs - are contributing a surprisingly high proportion of residential building work done in chain volume measures terms.</div>
<p> </p>
<div class="separator"><img src="/images/2015/05/28/wargent3.jpg" alt=""></div>
<div class="separator"><span style="line-height: 1.3em;"> </span></div>
<div>Major renovations work, denoted by the green line, continues to flatline, and is basically on life support outside Sydney.</div>
<p><strong><span style="text-decoration: underline;">Part 2 - State versus state building</span></strong></p>
<p><span style="line-height: 1.3em;">The value of building work done is being driven by activity in Melbourne, Sydney and Brisbane, in that order, which should continue to support construction employment in those cities, combined with the associated </span><span style="line-height: 1.3em;">multiplier</span><span style="line-height: 1.3em;"> effect.</span></p>
<div>The building boom is largely bypassing the southern states, and this has been reflected in benign (Hobart) or negative (Adelaide) employment growth in the respective capitals of these states. </div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent4.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>Looking at the major component parts, Melbourne continues to be the undisputed king of house building, while Queensland and Western Australia saw a decent lift in activity in the first quarter of this year.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargeent5.jpg" alt=""></div>
<p><br><span>But the real fun and games are taking place in the apartment construction sector.</span></p>
<p><span style="line-height: 1.3em;">Sydney and Brisbane may be approaching full capacity in this industry, which a dearth of bricklayers and project managers on the eastern seaboard being reported by the Reserve Bank's liaison, despite the legions of construction workers becoming available for transfer as they are released from resources contracts (more on this below). </span><span style="line-height: 1.3em;"> </span></p>
<div>Activity in New South Wales pulled back a little in Q1, but Melbourne apartment construction continues to rip to record high levels, with nearly $6.5 billion of work done over the past year in Victoria, and $1.8 billion in the first quarter of 2015 alone.<br><br>Heady times.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent6.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>Clearly this is the macro level data only, but the figures clearly imply a looming oversupply of units and apartments in some locations.<br><br>Prospective investors clearly need to understand the property markets at a suburb and micro level in this respect.<br><strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Part 3 - The mining cliff</span></strong>
</div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div>If you were hoping for good news for resources regions from this release, I'm afraid that there is none to report.</div>
<div> </div>
<div>Engineering construction work done held up reasonably well in Victoria, but everywhere else of note saw sharp declines, and particularly so the main mining states.</div>
<div> </div>
<div>The one exception in recent quarters had been the Northern Territory, with heavy spend related to the $34 billion Ichthys project pushing up engineering construction work done to record highs for the Top End over the preceding two quarters.</div>
<div>
<br>However, even the Northern Territory saw engineering construction work done decline from $2.1 billion to $1.7 billion in the first quarter, with some delays to the planned 2017 start-up date having been reported related to Inpex.</div>
<div class="separator"> <span style="line-height: 1.3em;"> </span>
</div>
<div class="separator"><img src="/images/2015/05/28/wargent7.jpg" alt=""></div>
<div> </div>
<div>The chart above tells its own story, and there is little else but woe ahead for a number of mining town economies. </div>
<div> </div>
<div>The ongoing capitulation of house prices in the Pilbara and Moranbah have been well enough documented, but there are many more echo-corrections in the post across regions which have been propped up through the once-in-a-century mining construction boom. </div>
<div>
<br>My chart packs have shown here previously that the pipeline for mining capital expenditure is desperately weak, and there will be further data to report on expected capital expenditure declines later this morning.<br><br>Capex related to Ichthys still has a way to run, granted, while Adani is hoping to proceed with its $10 billion thermal coal project (despite the minor inconvenience issue that at today's prices the project can barely be viable).<br><br>But these monster projects aside, weakening commodity prices will ensure that mining investment is heading all the way back down where whence it came, which is why we call it a commodity <em>cycle</em>.</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div>This negative result will breathe very life into the GDP result for the first quarter, while a further decline in Australia's terms of trade will also act as a drag.</div>
<div> </div>
<div>Economic growth may not be stone dead flat in Q1, but it seems unlikely to be a great deal better than that, which could drag the annual result down to well below 2% over the first half of this calendar year.</div>
<div> </div>
<div>With inflation forecasts having been revised down and further macro-prudential tools now being deployed by lenders, futures markets see every chance that the next move in interest rates will be down again to below 2%.</div>
<div> </div>
<div>Perhaps the twist in the tail here is that macro-prudential tools on lending to property investors mean lower interest rates for longer?</div>
<div> </div>
<div>
<em><span>PETE WARGENT</span> 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><p><em>His book '<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>' is out now.</em></p>
</div>
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pwargent-M4siyDbqQY

Major renovations work continues to flatline: Pete Wargent

<html><body>
<p><span style="line-height: 1.3em;">If you are confused by the acronym VPA, you’re not alone. The truth is, most of the REI and Real Estate Agents (REAs) don’t know how to properly account for this in their books. Most REAs are oblivious that they are flirting with deceitful conduct and are in breach of the REI Regulations by not disclosing and accounting, vendor paid advertising costs properly. </span></p>
<p><span style="line-height: 1.3em;">For many the term or acronym VPA is not well known. Expanded, it makes a little more sense: Vendor Paid Advertising. But only a little more, particularly when the REA is asking for: a commission and for a marketing fee. </span></p>
<p><span style="line-height: 1.3em;">For most agents, VPA is a lifeline to their existence. However, the majority of agents don’t realise the gravity of their failure to account for the advertising budget paid by the vendor. As much as it is a lifeline, it can also be the detriment to their agency. </span><span style="line-height: 1.3em;"> </span></p>
<p>You could well say that VPA is an industry in itself. Many agency’s guidelines and training manuals spend a lot of their focus on, “how to get the most VPA from clients”. There are industry icons and business leaders that charge large amounts of money to train wannabe agents on how to bask in the glorious platforms of the VPA-agent kingpins. </p>
<p>For me, the position I take is simply this. “What are agencies or REA’s offering that is so different to warrant for the vendor to pay on-top-off the commission?” Many are muted by this one simple question, and why? All because the answer is basically, not much. </p>
<p>Not discrediting VPA altogether, I believe it HAD a purpose and served a function perhaps as early as 5-7 years ago. At a time when most buyers were only just beginning to venture into the internet to look for property. From then onward, the internet has become the lifeline of REAs marketing and source of clientele to buy property and at a highly reduced cost to obtain interest in their client’s properties.</p>
<p> <strong style="line-height: 1.3em;">Why VPA was necessary - to an extent. </strong></p>
<ul>
<li>Before the strong internet drive, most agencies relied on print media to draw the crowd. However, is print media still necessary in this climate?  and </li>
<li>Stand-out features, offered by the main property search-engines. </li>
</ul>
<p>Are these features necessary to warrant for vendors to pay fees almost as much as commissions? </p>
<p>I believe the answer to both is unanimously, no. In light of my discussions with colleagues, it is a general consensus that VPA is mainly used to really “promote the agent”. The exception to the rule I believe to be more in “commercial and industrial real estate”. </p>
<p><span><strong>The anti VPA advocates, our beliefs are threefold. </strong></span></p>
<ul>
<li>First and foremost, if an agency receives funds from a vendor and is entrusted by the vendor for these to be used to advertise their property; it is deemed vendors funds and should be accounted for in the agency’s “trust account” not their general account. A practice not taught at the super giant VPA-seminar campaigns. </li>
<li>Second, and this goes back to my initial question; what is the agency offering for these extra funds (advertising costs) being charged to the client? </li>
<li>Third, is our own office belief that any funds provided by the vendor as an upfront marketing budget, the funds can be better spent on the presentation of the property. </li>
</ul>
<p><span><strong>A VPA agent’s reasoning for charging advertising fees:</strong></span></p>
<p>I asked a few colleagues that have attended the VPA training seminars and they are adamant that it is necessary to charge clients a marketing budget on-top-off their commission. Most of my colleagues referring to costs of running a business to justify their reasoning. Their arguments mainly center on the following notions: </p>
<ul>
<li>Signboards and print media is costly. <span style="line-height: 1.3em;">Hello! When was the last time you searched for property in a local newspaper and drove around neighborhoods till all hours of the night looking for signboards? </span>
</li>
</ul>
<ul>
<li>Advertising on the internet is costly. <span style="line-height: 1.3em;">Yes it is, but every business has a cost to market itself and its products. </span><span style="line-height: 1.3em;">Aren’t you receiving a commission to provide a service?</span>
</li>
</ul>
<ul>
<li>We can’t break/split costs across all our properties and it’s difficult to manage. <span style="line-height: 1.3em;">The regulations makes provisions to account for every expenditure to the client and in detail. Along with this is the requirement of disclosure of third party benefits received by the agency. Kickbacks, commissions and other fees paid for: printing and even online advertising, be it paid in shares or cash. </span>
</li>
</ul>
<p><span><strong>Showing the figures of costs to vendors:</strong></span></p>
<p>I have been criticized in the past for questioning the collective voice of the REI that we are not being paid enough and therefore VPA is critical to run a business. Placing the legislative requirements on how to account for VPA to one side, but not dismissing these, lets look at the numbers for a second. The numbers of current cost to do business. </p>
<p>Median property values approximately 3 years ago and average VPA charges.</p>
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="middle">
<p>Type Property</p>
</td>
<td valign="middle">
<p>Median Sydney</p>
</td>
<td valign="middle">
<p>Commission 2%</p>
</td>
<td valign="middle">
<p>VPA Average</p>
</td>
<td valign="middle">
<p>Cost To Vendor</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>HOMES </p>
</td>
<td valign="middle">
<p>$633,000</p>
</td>
<td valign="middle">
<p>$12,660</p>
</td>
<td valign="middle">
<p>$3,000</p>
</td>
<td valign="middle">
<p>$15,660</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>UNITS</p>
</td>
<td valign="middle">
<p>$460,000</p>
</td>
<td valign="middle">
<p>$9,200</p>
</td>
<td valign="middle">
<p>$1,500</p>
</td>
<td valign="middle">
<p>$10,700</p>
</td>
</tr>
</tbody></table>
<p> </p>
<p>Current values 2015. Median home property values and average industry VPA charges.</p>
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="middle">
<p>Type Property</p>
</td>
<td valign="middle">
<p>Median Sydney</p>
</td>
<td valign="middle">
<p>Commission 1.7%</p>
</td>
<td valign="middle">
<p>VPA Average</p>
</td>
<td valign="middle">
<p>Cost To Vendor</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>HOMES </p>
</td>
<td valign="middle">
<p>$850,000</p>
</td>
<td valign="middle">
<p>$14,450</p>
</td>
<td valign="middle">
<p>$5,000</p>
</td>
<td valign="middle">
<p>$19,450</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>UNITS</p>
</td>
<td valign="middle">
<p>$630,000</p>
</td>
<td valign="middle">
<p>$10,710</p>
</td>
<td valign="middle">
<p>$3,000</p>
</td>
<td valign="middle">
<p>$13,710<span style="line-height: 1.3em; color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;"> </span></p>
</td>
</tr>
</tbody></table>
<p><span><strong>My tips for people considering engaging an agent to sell a property.</strong></span></p>
<p>When confronted with a ledger of costs before you even engage the REA to sell your home, simply ask the following questions:</p>
<ul>
<li>Where will the money go to? General account or the Sales Trust account?</li>
<li>What are the individual costs for each proposed marketing idea/service that you recommend to be adopted?</li>
<li>How much commission does the office receive from third party service providers? And will these come off my bottom line?</li>
</ul>
<p>Most reputable agencies that do work with VPA, will issue clear statements and provide value added services. Some of the services I consider value-added are:</p>
<ul>
<li>Staging services</li>
<li>Professional photographers</li>
<li>Professional videos</li>
<li>Cosmetic make-overs of property in preparation for the marketing</li>
</ul>
<p>The most commonly used rebuttal used by the VPA-agent is: if you want better exposure than your neighboring competitive listing, then we need to make your listing stand out. If the agent/agency is more focused on a signboard and local print advertising to stand out just remember this; signboards mainly advertise the agent not your property. </p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
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ealmedia-arK4DBYLjS

VPA is not a dirty word: Edwin Almeida

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<p>Milbrovale, nestled at the base of the Brokenback Range, 7 kms beyond Broke, has been listed by the well known Newcastle couple Richard and Mary Owens.</p>
<p>The four hectare Hunter Valley estate has been listed for sale with Alan Jurd of Jurds Real Estate. </p>
<p>The home got its inspiration from a Frank Lloyd Wright Prairie House.</p>
<p><a href="https://www.realestate.com.au/property-lifestyle-nsw-broke-7741771" target="_blank">It was designed by Tanner &amp; Associates</a>, winning MBA Australian House of the Year when constructed.</p>
<p>The bespoke home featuring timber, stone, glass, metal and rendered finish, comes with home cinema and of course wine cellar.</p>
<p>There is a separate guest wing to accommodate up to twenty family and friends. </p>
<p>Milbrovale's grounds come with resort style billabong swimming pool, tennis and basketball courts.</p>
<p>Milbrovale's marketing campaign runs until offers close June 26 with repricing to more than $2.6 million.</p>
<p>Alan Jurd estimates the replacement value of the residence at above $6 million.</p>
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Milbrovale at Broke with $2.6 million plus hopes

<html><body>
<p class="Normal"><span style="line-height: 1.3em;">It’s sadly typical of real estate investment that the most popular places for buyers are also the worst places to buy.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Investors are piling en masse into a series of off the plan unit markets that will be the ruination of many people’s wealth dreams. The top five locations in terms of sales volumes are all places that property buyers must avoid.</span></p>
<p class="Body"><span style="line-height: 1.3em;">It’s a commentary on two issues, which are among the core problems for property investors. One is that most investors fail to conduct genuine research before making decisions that involve hundreds of thousands of dollars. The second is that far too many of them think that reading media reports constitutes research.</span></p>
<p class="Body"><span style="line-height: 1.3em;">When I spoke at two Performance Property Advisory seminars in Melbourne earlier this week, I told audiences that most of what they read or hear about real estate in mainstream media is misinformation. Most of what they read or hear is press release material (i.e. someone’s propaganda) regurgitated as credible information. There is no journalistic oversight on the material that is published, in most cases.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Among the most dangerous material is “research” which presents lists of, for example, the 10 best places to buy for high rental yields, or the 10 top buyers’ markets in the land, or the locations with the biggest growth in median prices in the past quarter.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">These lists are presented by incompetent journalists with the inference that these are the places investors should be buying. It amounts almost to criminal negligence. Those lists of the places with the highest yields or the ones described as the best buyers’ markets in the land comprise places where markets are in serious decline. Many of these markets are basket cases.</span></p>
<p class="Body"><span class="Body__Char">Earlier this week we saw a list of the most popular locations for buyers in Australia. These are the suburbs with the highest numbers of sales. The treatment given to this press release material from a publicity-hungry research business inferred that these were all great places to buy. If everyone’s piling into these places, then so should you. The inference is that the herd mentality is a viable method of making investment decisions.</span></p>
<p class="Body"><span class="Body__Char">Eight of the top 10 locations on the list were all locations that investors must avoid, if they are to escape a financial disaster. Those eight locations were apartments markets with heavy marketing of off-the-plan high-rise units in locations that already have, or will soon have, serious oversupplies.</span></p>
<p class="Body"><span class="Body__Char">The No.1 location in the list was the Melbourne CBD. Most of the 1,500 buyers who have purchased apartments there in the past 12 months will live to regret their decisions. Also on the Top 10 list were neighbouring unit market suburbs, Southbank and South Yarra. This is oversupply central for Australian real estate – a place where unit towers are being built not for local consumption but to be flogged at inflated prices to offshore investors. It won’t end well. </span></p>
<p class="Body"><span style="line-height: 1.3em;">Four of the top 10 places were occupied by unit markets on the Gold Coast, with Surfers Paradise No.2 on the national list. You have to wonder how many people have to lose money in this fools’ paradise before investors get the message to steer clear.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Gold Coast has just spent five years absorbing the previous surplus of high-rise units, with property values falling in virtually every suburb in Gold Coast City. The median price for Surfers Paradise is still lower today than it was five years ago, but in the past 12 months another 1,255 buyers dived headlong into this investors’ graveyard, even as developers are working hard on creating the next massive over-supply.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Brisbane CBD, which is working hard to outdo its Melbourne’s counterpart as oversupply central, is No.3 on the list.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">The latest research shows that only 10% of sales in the Brisbane inner-city unit market are to owner-occupiers. Investors are buying 90% of the stock and the great majority of them are distant investors – people from interstate and overseas. Many will wish they had left their money in the bank.</span></p>
<p class="Body"><span class="Body__Char">Vacancies in Brisbane’s inner-city suburbs range from 4% or 6.5% - and that’s before all the new supply now under construction hits the rental market. BIS Shrapnel research shows that a record number of new apartments will be completed this year, but more will be finished next year and even more the year after. These numbers are a red flag for sensible buyers.</span></p>
<p class="Body"><span class="Body__Char">Brisbane, like Melbourne and the Gold Coast, is building far too many apartments because they’re not being created for local consumption – they’re being conceived for sale to unsuspecting foreign buyers.</span></p>
<p class="Body"><span class="Body__Char">The developers will be happy because they will sell all their apartments and make lots of money, but the broader market and the people who own properties there will suffer, as high vacancies cause rents to fall, with values to follow.</span></p>
<p class="Body"><span class="Body__Char">If you’re an investor driven by the herd mentality or the FOMO (Fear Of Missing Out) syndrome, then you will dive into these markets. And when you lose money, you will thoroughly deserve it.</span></p>
<p class="Body"><span class="Body__Char">Be afraid, be very afraid.</span></p>
<p class="Body"><span class="Body__Char"><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
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terryryder-YECXbqmri2

Better in the bank than on Brisbane inner-city apartments: Terry Ryder

<html><body>
<div>The REINSW has noted a rise in vacancy rates in the NSW coastal regional city of Newcastle, up from 3.4 per cent to 4.6 per cent.</div>
<div>
<br>The Hunter also saw a rise from 3.1 per cent to 3.9 per cent, the April 2015 Real Estate Institute of New South Wales data revealed.</div>
<div> </div>
<div>It has been suggested the spike reflects unemployment rates of 8.4 per cent at Newcastle or even higher around the Hunter region at 11.8%, according to the ABS.</div>
<div> </div>
<div>
<h2>Unemployment Rates by Labour Force Region, April 2015 (15+) (%)</h2>
<div>
<table class="DataTable" border="1" rules="all" cellspacing="0"><tbody>
<tr>
<th scope="col">Labour Force Region</th>
<th scope="col">Unemployment Rate</th>
</tr>
<tr>
<td>Sydney - Northern Beaches</td>
<td>2.9</td>
</tr>
<tr>
<td>Sydney - North Sydney and Hornsby</td>
<td>3.6</td>
</tr>
<tr>
<td>Sydney - Sutherland</td>
<td>3.6</td>
</tr>
<tr>
<td>Sydney - Eastern Suburbs</td>
<td>3.7</td>
</tr>
<tr>
<td>Sydney - Baulkham Hills and Hawkesbury</td>
<td>4.2</td>
</tr>
<tr>
<td>Capital Region</td>
<td>4.5</td>
</tr>
<tr>
<td>Sydney - Inner West</td>
<td>4.6</td>
</tr>
<tr>
<td>Sydney - Outer West and Blue Mountains</td>
<td>5.3</td>
</tr>
<tr>
<td>Sydney - City and Inner South</td>
<td>5.5</td>
</tr>
<tr>
<td>Sydney - Parramatta</td>
<td>5.6</td>
</tr>
<tr>
<td>Far West and Orana</td>
<td>5.7</td>
</tr>
<tr>
<td>Central Coast</td>
<td>5.8</td>
</tr>
<tr>
<td>Riverina</td>
<td>5.8</td>
</tr>
<tr>
<td>Sydney - Outer South West</td>
<td>6.2</td>
</tr>
<tr>
<td>Sydney - Blacktown</td>
<td>6.4</td>
</tr>
<tr>
<td>Sydney - Ryde</td>
<td>6.5</td>
</tr>
<tr>
<td>Sydney - South West</td>
<td>7.0</td>
</tr>
<tr>
<td>Sydney - Inner South West</td>
<td>7.3</td>
</tr>
<tr>
<td>Coffs Harbour - Grafton</td>
<td>7.5</td>
</tr>
<tr>
<td>Mid North Coast</td>
<td>7.8</td>
</tr>
<tr>
<td>Central West</td>
<td>8.1</td>
</tr>
<tr>
<td>Illawarra</td>
<td>8.1</td>
</tr>
<tr>
<td>New England and North West</td>
<td>8.2</td>
</tr>
<tr>
<td>Murray</td>
<td>8.4</td>
</tr>
<tr>
<td>Newcastle and Lake Macquarie</td>
<td>8.4</td>
</tr>
<tr>
<td>Southern Highlands and Shoalhaven</td>
<td>8.7</td>
</tr>
<tr>
<td>Richmond - Tweed</td>
<td>8.8</td>
</tr>
<tr>
<td>Hunter Valley exc Newcastle</td>
<td>11.8</td>
</tr>
</tbody></table>
</div>
</div>
<div> </div>
<div>It is a lot tighter south of Sydney <span style="line-height: 1.3em;">Wollongong saw vacancies rise 0.8 per cent in the month to 1.8 percent.</span>
<div> </div>
<div>There was a 0.3 per cent increase in the Illawarra to 1.3 per cent.</div>
<div> </div>
<div>
<div>Sydney vacancy rates remained stable in April 2015, tightening in the inner and middle ring, but recording an <span style="line-height: 1.3em;">increase in vacancy rates in the outer.</span>
</div>
</div>
</div>
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Newcastle's worrying high rental vacancy rate: REINSW

<html><body>
<p>Just 15 months after purchasing it for $13 million, Halcyon Group has sold the landmark Buena Vista Hotel in Mosman through Ray White Hotels.</p>
<p>It was sold to a new hotel operation – The Public House Management Group (PHMG) at an undisclosed higher price.</p>
<p>The Medich family-operated Halcyon purchased the Buena Vista early last year.</p>
<p>It had submitted plans for a make-over of the pub which Ray White director Andrew Jolliffe advised helped seal the sale.</p>
<p>“The Buena Vista is patently one of those hotels that enjoys almost folklore status within the hotel industry,” said Andrew Jolliffe on the pubtic website.</p>
<p>Prior owners have included the Kelly family's <span>Newhaven Park Stud who bought it from Austotel in 1992 for around $3.3 million.</span></p>
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Medich family sells Mosman's Buena Vista hotel

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<p>The Australian Prudential Regulation Authority (APRA) released their quarterly Authorised Deposit-taking Institution (ADI) Property Exposures data for March 2015 earlier this week.  The data always provides a valuable insight into current and historic mortgage lending by domestic ADIs and this quarter’s release was no different.  Given the heightened vigilance from APRA around investment lending and overall lending standards as well as recent changes to mortgage policies from many banks, the latest release from APRA may also signal a cyclical peak in investment lending as well as interest-only mortgage lending.</p>
<p><img class="aligncenter size-full wp-image-4819" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-14.jpg" alt="Chart 1" width="500" height="180"></p>
<p>Based on the value of all outstanding mortgages by households to Australian ADIs, there was $852.5 billion outstanding to owner occupiers (65.4% of all housing loans) at the end of March 2015 and $450.2 billion to investors (34.6%).  Over the 12 months to March 2015, the total value of outstanding mortgages to owner occupiers has increased by 7.2% compared to a 12.4% rise in outstanding credit to investors.  This represents a reduction in the annual rate of increase in owner occupier lending over the quarter and the greatest rise in investor lending since September 2010.  Much like other data received more regularly, the chart indicates that there remains significantly more momentum in the investor lending space than that for owner occupiers where growth is more moderate.  With changes to investment lending criteria now being adjusted we are likely to see a slowing of that rate of change over the coming quarters.</p>
<p><img class="aligncenter size-full wp-image-4820" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-23.jpg" alt="Chart 2" width="500" height="182"></p>
<p>At the end of March 2015, a record high 38.6% of loans outstanding had an offset facility, up from 35.4% a year earlier.  Also a record high was the 37.4% of all outstanding mortgages which were interest-only, up from 35.4% a year earlier.  Just 0.2% of all outstanding mortgages were reverse mortgages and 2.3% were low documentation which was down from 3.1% a year earlier and at a record low proportion.  Other non-standard loans accounted for just 0.1% of all outstanding mortgages.  It seems that more and more mortgagees are accessing offset accounts in order to reduce the interest payable on their mortgages and maximise repayments of the principal while interest rates are so low.  The data also indicates that a high proportion of lenders are accessing interest-only mortgages which seem somewhat counterintuitive at a time when interest rates are so low.  Following APRA’s letter to ADIs in late in 2014 they specifically called out interest only lending as a risk and we would expect that over the coming months these types of mortgages will become harder to obtain.</p>
<p><img class="aligncenter size-full wp-image-4821" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-33.jpg" alt="Chart 3" width="500" height="179"></p>
<p>The average balance on all outstanding mortgages at the end of March 2015 was $243,500.  The average balance has increased by 3.6% over the past year, its fastest annual rate of growth since the year to June 2012.  Loans with an offset facility ($290,600) and interest-only mortgages ($315,100) have much higher average outstanding loan balances.  The annual growth in average outstanding loan balances has been slightly more moderate for mortgages with an offset and interest-only mortgages at 3.3% and 3.4% respectively.   The annual rate of growth for mortgages with an offset is the fastest since September 2012 and the rate of growth for interest-only mortgages is at its fastest pace since September 2010.  Encouragingly, the data indicates that outstanding balances are reducing for low documentation and other non-standard loans as they become less common.  Over the past year the average balance has fallen by -2.9% for low-documentation loans and by -6.7% for other non-standard loans.  With mortgage rates low and fewer of these loan types being written it seems those that have these types of loans are continuing to pay down these mortgages at a fairly rapid pace.</p>
<p><img class="aligncenter size-full wp-image-4822" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-43.jpg" alt="Chart 4" width="500" height="181"></p>
<p>Turning the focus to new loans written over the March 2015 quarter, 63.0% of the total value of new lending was to owner occupiers and 37.0% was to investors. The proportion of new lending to investors has fallen from a record high of 37.9% in the June 2014 quarter.  Based on this data it suggests that growth in demand for both owner occupier and investment lending may have peaked.  The annual change in new owner occupier and investment lending was recorded at 9.3% and 15.4% respectively.  The annual change in owner-occupied mortgages is growing at its fastest pace since March 2014 while the annual change in investment lending has been trending lower over the past two quarters.</p>
<p><img class="aligncenter size-full wp-image-4823" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-51.jpg" alt="Chart 5" width="500" height="180"></p>
<p>Over the March 2015 quarter, 0.7% of new loans approved were low-documentation, 42.3% were interest-only, 0.1% was other non-standard loans, 42.2% were third party originated loans and 2.8% were loans approved outside of serviceability.  The 42.3% of new loans which were interest-only was down over the quarter with the proportion at its lowest level since March 2014.  The data also seems to reflect the slowing of growth in investment demand, remember that interest only loans tend to be (but not always) reflective of lending for investment purposes.  The ADIs seem to be increasing the usage of their broker channels with 42.2% of loans originated by third parties.  With 2.8% of new mortgages approved outside of serviceability over the March 2015 quarter, this was down from 2.9% over the previous quarter.</p>
<p>In terms of the annual change in new lending, the value of new low documentation loans approved rose 31.1% year-on-year, interest-only loans rose 19.7%, other non-standard loans fell -24.3%, third party originated loans increased by 14.9% and loans approved outside of serviceability increased 25.2%.  Although low documentation and loans outside of serviceability make up a small overall proportion of lending, the significant increase in lending for these loan types over the year is a potential cause for concern.</p>
<p><img class="aligncenter size-full wp-image-4824" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-61.jpg" alt="Chart 6" width="500" height="183"></p>
<p>Looking at the loan to value ratios (LVR) of loans written over the March 2015 quarter,  25.7% of new loans had an LVR of less than 60%, 41.4% of loans had an LVR of between 60% and 80%, 21.7% had an LVR of between 80% and 90% and 11.1% had an LVR of 90% or more.  The 11.1% of new loans with an LVR of more than 90% is the lowest proportion since December 2010.  The 25.2% of mortgages with an LVR lower than 60% was the highest proportion since June 2013.  This falling proportion of loans above 90% LVR suggests there are proportionally less high-risk mortgages being written.  It should be noted that around a third of all new mortgages written (32.8%) had an LVR of more than 80%.</p>
<p>Looking at the year-on-year change in mortgage lending by LVR bands, mortgages with an LVR above 90% were the only segment to record a fall down -7.8%.  Mortgages with an LVR below 60% were up 18.6% year-on-year, LVRs of 60% to 80% were up 12.4% and LVRs of 80% to 90% rose 13.9%.  The 18.6% rise in mortgages with an LVR of less than 60% was the largest since December 2013, the 12.4% rise in mortgages with an LVR of 60% to 80% was the lowest since March 2013, the 13.9% rise in mortgages with an LVR of 80% to 90% was the lowest since March 2013 and the -7.38% fall in mortgages with an LVR greater than 90% was the largest fall since March 2011.</p>
<p>Given that we have recently seen many banks starting to implement changes in their lending policies, mostly focussed on investors we would anticipate that investor and interest-only lending will likely moderate over the coming quarters.  The decline in higher LVR lending is an encouraging development given a focus on mortgage serviceability at this time of low mortgage rates.  The increase in lending outside of serviceability and low documentation loans over the past year is likely to be an area of scrutiny for APRA over the coming months.</p>
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APRA data shows new low doc loans potential cause for concern

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<p>Print communications business Blue Star Group will consolidate three Melbourne offices to a single warehouse after signing a long term lease in the Melbourne south-eastern suburb of Keysborough.<span style="line-height: 1.3em;"> </span></p>
<p>The property, 70-86 Atlantic Drive, is part of Australand's Key Industrial Estate and was let on a long term lease of what is believed to be around $90 per square metre.</p>
<p><span style="line-height: 1.3em;">Savills Associate Director, Daniel Kelly, said access for staff was an important consideration for Blue Star Group when signing the lease.</span></p>
<p>"The tenant was in the market for a property which ticked all the boxes for a national manufacturing and distribution firm with a focus on ease of transport solutions and with the flexibility to grow the operation," Mr Kelly said.</p>
<p><span style="line-height: 1.3em;">"They were also attracted to the modern high-bay warehouse, on-grade loading and docks and ease of access to the CBD, docks and interstate via Melbourne’s freeway network."</span></p>
<p><span style="line-height: 1.3em;">The office and warehouse comprises a 6789 square metres. The high bay warehouse is 6452 square metres with the office space  sized 337square metres.</span></p>
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Australand warehouse let to Blue Star Group

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<p><span>The latest commercial property borrowing data has been released by the Australian Prudential Regulation Authority (APRA) </span><span>for the March 2015 quarter.</span><br><br><em>Quarterly ADI Property Exposures </em><span>contains information on ADIs’ commercial property exposures.</span></p>
<p><span>ADIs’ commercial property exposures were $234.2 billion, an increase of $15.1 billion (6.9%) over the year. </span></p>
<p><span>Commercial property exposures within Australia were $193.3 billion, equivalent to 82.5% of all commercial property exposures.</span></p>
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<p>As shown in<a href="https://www.apra.gov.au/adi/Publications/Documents/1503-QAPES-March-2015.pdf" target="_blank"> Figure A</a> (below):</p>
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<p><img src="/images/2015/05/27/Screen%20Shot%202015-05-27%20at%201.17.10%20PM.png" alt=""></p>
<ul>
<li><span style="line-height: 1.3em;">major banks held $202.3 billion of commercial property exposures, an increase of $6.6 billion (3.4%) on 31 December 2014 and $12.3 billion (6.5%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">other domestic banks held $14.0 billion, a decrease of $0.4 billion (2.7%) on 31 December 2014 and an increase of $1.5 billion (11.7%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">foreign subsidiary banks held $4.1 billion, an increase of $0.2 billion (5%) on 31 December 2014 and a decrease of $0.9 billion (17.8%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">foreign branch banks held $13.4 billion, an increase of $0.3 billion (2%) on 31 December 2014 and $2.3 billion (20.7%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">building societies held $211 million as at 31 March 2015, a decrease of $25 million (10.7%) on 31 March 2014; and</span></li>
<li><span style="line-height: 1.3em;">credit unions held $309 million as at 31 March 2015, a decrease of $38 million (10.8%) on 31 March 2014.</span></li>
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<span style="line-height: 1.3em;">The largest property exposures were office property ($70.3 billion) and retail property ($53.8 billion). These represented 30% and 23% of all exposures respectively.</span>
<p style="line-height: 1.3em;">Impaired commercial property exposures were $1.6 billion at 31 March 2015 and specific provisions and security held for commercial property were $1.6 billion. </p>
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