<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
</section>
</section>

<p>[smartcode_project_cta:default project_id=112661]</p>


SIERA kicks off construction at Northcliffe tower Exhale

<p data-end="320" data-start="79">Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.</p>

<p data-end="638" data-start="322">The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.</p>

<p data-end="864" data-start="640">Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352689]</p>

<p>Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.</p>

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."</p>

<p>“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352687]</p>

<p><a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.</p>

<p>“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352690]</p>

<p>The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.</p>

<p>“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.</p>

<p><a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.</p>

<p>[smartcode_project_cta:default project_id=112343]</p>


Eastern Suburbs buyers snap up ESTE Little Bay apartments

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


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

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

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


Every First Home Owner Grant for new property by state

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


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

Staff Writer

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

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


alisonwarters@gmail.com

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

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


Ellen Walker

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

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


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

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<p>EXPERT OBSERVER</p>
<p>Brisbane's once-rampant apartment construction has now righted itself, and indeed median unit prices were up a fraction over the past year in the Queensland capital. </p>
<div id="post-body-1517642067810614857" class="post-body entry-content">
<div>Victoria's apartment construction on the other hand has exploded to a record high (as expected from leading indicators), with the value of work done an astronomical 416 per cent higher than a decade earlier in chain volume measures terms. </div>
<div> </div>
<div>Sydney doesn't build so many houses, so a lot of activity is expected, but for Melbourne this is a boom-and-a-half!</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-j-L_Si8xu3M/W3zV5ZRFWuI/AAAAAAAArog/JQ9WfQ2ltJABfVf3KSePDeXcpAOZ8GZEQCLcBGAs/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-j-L_Si8xu3M/W3zV5ZRFWuI/AAAAAAAArog/JQ9WfQ2ltJABfVf3KSePDeXcpAOZ8GZEQCLcBGAs/s640/A1.jpg" width="640" height="376" data-original-height="800" data-original-width="1361"></a></div>
<div>
<br><div class="separator"> </div>
<br>It's an everything boom for Victorian construction with public and engineering works also going on a tear. </div>
<div> </div>
<div>Queensland engineering construction is also finally on the rise again after the state's multi-year downturn. </div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-hFMjIc58GKQ/W3zV5oAN67I/AAAAAAAArok/mtjusxcoA6AQzd36njWtlrRemzlXTHvYQCLcBGAs/s1600/A2.jpg"><img src="https://3.bp.blogspot.com/-hFMjIc58GKQ/W3zV5oAN67I/AAAAAAAArok/mtjusxcoA6AQzd36njWtlrRemzlXTHvYQCLcBGAs/s640/A2.jpg" width="640" height="374" data-original-height="803" data-original-width="1368"></a></div>
<br><div>Adding in detached housing construction, Victoria's construction super-boom over 16 consecutive quarters and counting helped to increase total work done nationally in the second quarter by 1.6 per cent in seasonally adjusted terms. </div>
<div> </div>
<div>Eight consecutive quarterly increases in South Australia have also helped to offset the resources and housing construction weakness in Western Australia.<br><br>Construction work in New South Wales is set to top out now as apartment starts decline. </div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-bkIHZFhTWcQ/W3zV5bE5mEI/AAAAAAAAroo/spw4riVZh3gpMf1FKh89PGOaA16E0CoqACLcBGAs/s1600/A3.jpg"><img src="https://4.bp.blogspot.com/-bkIHZFhTWcQ/W3zV5bE5mEI/AAAAAAAAroo/spw4riVZh3gpMf1FKh89PGOaA16E0CoqACLcBGAs/s640/A3.jpg" width="640" height="376" data-original-height="806" data-original-width="1371"></a></div>
<br><div><strong>Job ads stalling</strong></div>
<div> </div>
<div>In other news skilled job vacancies were up by 4.7 per cent from a year earlier to be 30.5 per cent above the October 2013 nadir in July 2018, according to the latest Department of Employment figures. </div>
<div> </div>
<div>The seasonally adjusted monthly result was up just a notch following three consecutive declines. </div>
<div> </div>
<div>Unsurprisingly Victoria scored well here too, with falling unemployment looking like a shoo-in for Melbourne. </div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-oDN5Lkggpdk/W3zV6M2hRaI/AAAAAAAAros/hdUwylmO0ccmBenJN0Gi8BlEILu59fHKQCLcBGAs/s1600/DoE.jpg"><img src="https://3.bp.blogspot.com/-oDN5Lkggpdk/W3zV6M2hRaI/AAAAAAAAros/hdUwylmO0ccmBenJN0Gi8BlEILu59fHKQCLcBGAs/s640/DoE.jpg" width="640" height="368" data-original-height="793" data-original-width="1374"></a></div>
<br><div>In Western Australia vacancies were up 16.3 per cent over the past year, pointing to brighter days ahead across the Nullarbor.<br><br>Nationally, though, the growth in job ads seems to have stalled, with an election to follow - and that rarely inspires confidence in employers.</div>
<div><em> </em></div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
</div>
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pwargent-M4siyDbqQY

Victoria's everything boom: Pete Wargent

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<p><em>“There’s lots of companies that are just wanting to make money. They basically just tell you whatever’s on their books is the right thing to buy. So, it’s hard to find someone you can trust. </em></p>
<p><em>“What we liked about Ironfish is that they’re a company that educates and takes on board your whole financial situation and goals, not just your ability to access funds to purchase property. There’s heaps of events and education sessions that help improve your general financial IQ as well.” </em></p>
<h4>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/chris-cindy-5-e1531102841752-300x244.jpg" alt=""> </h4>
<h4>CASE IN PROFILE</h4>
<ul>
<li>Brisbane based medical specialists</li>
<li>Experienced investors who were lacking a clear goal</li>
<li>Purchased 3 properties with Ironfish</li>
<li>9 investment properties in total</li>
</ul>
<h2>Not really ‘property investors’</h2>
<p>Chris and Cindy Aubrey are Surgical Assistants working in multiple private hospitals in Brisbane. Originally from far north Queensland, Chris and Cindy moved to Brisbane for work, and have a young family of 2 kids, aged 2 and 4. Prior to investing with Ironfish, they already owned 4 investment properties which are scattered around Queensland, Western Australia and New South Wales, along with a Victorian property in their SMSF.</p>
<p>“We wouldn’t have called ourselves ‘property investors’ though. We had a couple of investment properties because we didn’t know what else to do with our money and we thought property was a good vehicle!</p>
<p>“After investing with Ironfish we really started to look into financial education, and at that point get into property investment a little bit more as a passion and with a clear goal.”</p>
<h2>Finding someone you can trust</h2>
<p>Apart from 2 out of their 9 properties, Chris and Cindy’s investments were purchased through a company. Chris and Cindy’s main challenge before investing with us, was<a href="http://www.ironfish.com.au/blog/2018/02/07/cancelled-contract-another-property-investment-company-went-ironfish-instead/" target="_blank"><span class="Apple-converted-space"> </span>finding a company they could trust</a>.</p>
<p>“We’ve had experiences with other property companies where they’ve sold us a property and left us. With Ironfish, we don’t feel like we’ve just been ‘sold to’. We hear from our strategist Linna regularly, not only to help us review our current portfolio but also to invite us to<span class="Apple-converted-space"> </span><a href="http://www.ironfish.com.au/seminars/" target="_blank">events and education sessions</a>. There’s always lots to learn.”</p>
<h2>Knowing what you want</h2>
<p>Chris and Cindy had a chat with our Brisbane based strategist, Linna Reakes, who listened to what they wanted to achieve and also invited them to come along to some Ironfish events and property investment seminars.</p>
<p>“We’ve been to a few events and they’re really good, especially Joseph. He’s a great speaker. What we got out of those events was that it<span class="Apple-converted-space"> </span><a href="http://www.ironfish.com.au/blog/2018/02/23/secret-success-everybody-overlooks/" target="_blank">starts with the mindset</a>, it starts with goal setting – which is not what we did initially in our property journey. We leapt into it without knowing what we wanted out of it. Now we have a clear goal; we are aiming to replace enough of our income so we don’t have to work so hard and can spend more time with the kids while they’re still young.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/chris-cindy-2-1024x683.jpg" alt=""></p>
<h2>Property selection</h2>
<p>Chris and Cindy were very specific about what types of property they were targeting when they talked to Linna.</p>
<p>“We told Linna we were looking for house &amp; land, and she helped us acquire a package located in<span class="Apple-converted-space"> </span><a href="http://www.ironfish.com.au/blog/2018/07/04/record-numbers-looking-for-homes-in-queensland/" target="_blank">South East Queensland</a><span class="Apple-converted-space"> </span>which met our criteria. We also purchased 2 other units in Brisbane, which provide good cash flow and are good quality builds that are going to hold their value. Credit to Linna to understanding what we wanted and showing us what she thought was suitable.”</p>
<h2>The importance of follow up</h2>
<p>While the performance of the property is important, Chris and Cindy agree that ongoing service and support is what makes a real difference.</p>
<p>“We’ve had good and bad experiences with different companies. We can look back and see which properties have done well and which haven’t; that weighs in on deciding if we’re going to invest with them again.</p>
<p>“But it’s also about communication and follow up. Companies mostly make their money on the event of a sale, but if they have good after-sale service we’re more likely to go with them again. And that’s what we appreciate about Ironfish. There’s good follow up; Linna is great, and the property management service has been good, no problems at all. We’re very happy with the care we’re getting as customers and in our portfolio management. And now that we’ve built a decent portfolio, we’re looking at managing that over the long term.”</p>
<h2>Chris and Cindy’s property investment tips:</h2>
<ol>
<li>
<strong>Focus on your own education.</strong><span class="Apple-converted-space"> </span>We go to seminars, we have mentors and ask lots of questions. Don’t pay attention to mainstream media, look for reports from reputable sources.</li>
<li>
<strong>Get yourself a good team of people.</strong><span class="Apple-converted-space"> </span>We have a financial planner, accountant and mortgage broker – this is something we picked up from Ironfish. In the past 5 years, we’ve changed our accountant and planner to find people who understand and help us achieve our goals. That’s made a huge difference. For example, from an accounting perspective in structuring your properties: you may pay for advice upfront, but it could save you thousands down the track.</li>
<li>
<strong>Start with ‘why?’</strong><span class="Apple-converted-space"> </span>Set a goal for why you’re investing in property and what you want to achieve out of it before you leap in.</li>
<li>
<strong>Consider the benefits of investing in new or off-the-plan property.</strong><span class="Apple-converted-space"> </span>We initially just fell into this type of investment, but we’ve since learned about the tax depreciation advantages. And also, depending on the area, new home starts are a sign of potential growth in an area. We now have 9 properties, half house &amp; land, half apartment. Most are new properties.</li>
<li>
<strong>Look at each of your properties as a business.</strong><span class="Apple-converted-space"> </span>We haven’t even set foot in any of our investment properties. We’ve got friends who’ve not bought based on a property having a colour of paint they didn’t like. Don’t let emotion sway your decision making. Let the numbers make the decision.</li>
</ol>
<p> </p>
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jrobinson-rf4aSBido9

Dr Chris and Cindy Aubrey - surgical assistants and Ironfish customers

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<p>EXPERT OBSERVER</p>
<p>Over the past few weeks three of the four major banks in Australia have announced that they are going to be increasing variable mortgage rates. </p>
<p>While there has been a lot of adjustments to mortgage rates over recent years, the big difference with the latest announcement is that the higher mortgage rates are going to affect owner occupiers. </p>
<p>Most of the previous mortgage rate changes announced by the major banks have only affected investors and those with interest only mortgages.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/9/7/KUSH1.jpg" target="_blank">to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/7/KUSH1.jpg" alt=""></p>
<p>Many of the smaller regional banks have pushed mortgage rates for owner occupiers higher over recent months citing higher short-term funding costs. </p>
<p>Although until now the major banks had resisted making an adjustment to mortgage rates it seems they too have had their hand forced by higher funding costs.  The above chart highlights the cost of short-term funding to banks (the three-month bank bill swap rate) and it clearly shows that the cost of short-term funding has increased.  It currently sits at 2.26% compared to the official cash rate which remains unchanged at 1.5% since August 2016.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/9/7/KUSH2.jpg" target="_blank">to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/7/KUSH2.jpg" alt=""></p>
<p>Short-term funding costs have certainly risen recently however, it is also interesting to look at the composition of funding to Australia’s banks. Short-term funding is not an insignificant part of the funding profile (slightly more than 20%), although the share of funding from short-term debt has fallen over recent years as domestic deposits have increased. </p>
<p>There are other ways to handle higher short-term funding costs rather than lifting mortgage rates but that would likely mean cutting dividends which lenders seem reluctant to want to do or reducing deposit interest rates which would likely see a further reduction in the primary funding source: domestic deposits.</p>
<p>From a housing market perspective the timing of the announcement of higher interest rates is an interesting one. </p>
<p>After many years of strong value growth, Sydney and Melbourne housing is now well embedded in a downturn.  Tighter credit conditions, higher mortgage rates for investors and interest-only borrowers and reduced affordability have already led to the falls of -5.6% from the peak in Sydney and -3.5% from their peak in Melbourne.  This has occurred so far without higher interest rates for owner occupiers paying off principal and interest however, that is about to change.</p>
<p>The timing of the hikes to mortgage rates is also interesting in that it has been announced right at the beginning of the Spring Selling Season.  Although spring, in my mind and according to the data, is somewhat overhyped as a good time to sell, more stock does typically become available for sale over the period and buying activity typically increases. </p>
<p>The other usual occurrence at the beginning of spring is that lenders offer enticing mortgage rates to the market to jostle for market share.  By contrast this year, major lenders are announcing higher mortgage rates.</p>
<p>Higher mortgage rates have already driven a slowing of demand for investors over the past year.  Although the magnitude of the mortgage rate increases announced is fairly small (around 15 basis points by each lender) it is likely that the higher mortgage rates will impact on housing market sentiment. Furthermore it may end up further exacerbating the declines which are already occurring in Sydney, Melbourne, Perth and Darwin and the slowing of value growth being experienced elsewhere. </p>
<p>Overall this move seems likely to lead to a continuation of the currently weak housing market conditions over the coming months and may weaken the market further.  From the lenders perspective, clearly they realise that the housing downturn is becoming entrenched (particularly in Perth and Darwin, but more recently in Sydney and Melbourne) and they are doing what they can to maintain profitability in the face of lower mortgage volumes.</p>
<p><em><span>CAMERON KUSHER</span> is a property research analyst for CoreLogic</em></p>
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ckusher-ujnxiKuFQs

Higher mortgage rates likely to prolong the housing market weakness: CoreLogic

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<p class="p1"><span class="s1">EXPERT OBSERVER</span></p>
<p class="p1"><span class="s1">Over the weekend I spoke to crowds of people with their heads crammed full of media misinformation.</span></p>
<p class="p1"><span class="s1">The number one point of discussion was the general perception that prices are falling across Australia, thanks to simplistic analysis and inaccurate headlines.</span></p>
<p class="p1"><span class="s1">In reality, the latest monthly price report from CoreLogic (the source of most articles and headlines on prices) tells us that there are 14 major market jurisdictions across Australia (eight capital cities and six state regional areas) – and nine of the 14 have price levels higher than last year.</span></p>
<p class="p1"><span class="s1">I see plenty of potential for buyers to find locations where prices are rising or are on the cusp of a growth phase.</span></p>
<p class="p1"><span class="s1">How do you find them? Here are four markers that provides clues to future price growth …</span></p>
<p class="p1"><span class="s1"><strong>1 The underlying local economy is rising</strong></span></p>
<p class="p1"><span class="s1">In 2011 when the government changed in New South Wales, the state ranked as one of the weakest economies in the nation, according to CommSec’s <em>State of the States</em> report.</span></p>
<p class="p1"><span class="s1">But with proactive governance and increased spending on infrastructure, NSW rose steadily up the rankings to eventually become the nation’s strongest economy. Out of that came the Sydney property boom.</span></p>
<p class="p1"><span class="s1">There was a similar story in Tasmania. Traditionally Tasmania has ranked as our weakest economy but, following a major change of state government in 2014, the state rose up the national rankings, eventually reaching its current position of No.4, ahead of Queensland, South Australia and Western Australia.</span></p>
<p class="p1"><span class="s1">The marked improvement in the state economy gave rise to the growth in the Hobart property market, now the strongest among the capital cities for price growth.</span></p>
<p class="p1"><span class="s1">The linkages between capital city property markets and the underlying state economy are undeniably strong.</span></p>
<p class="p1"><span class="s1">So where does this marker point us for the next growth markets among the capital cities?</span></p>
<p class="p1"><span class="s1">There are definite signs of improvement in the economies of Western Australia, South Australia and Queensland.</span></p>
<p class="p1"><span class="s1">This, along with other indicators, suggests better growth in the property markets in Perth, Adelaide and Brisbane.</span></p>
<p class="p1"><span class="s1"><strong>2 Demand has risen but prices haven’t moved much - yet</strong></span></p>
<p class="p1"><span class="s1">Three capital cities stand out for this reason: Perth, Canberra and Adelaide.</span></p>
<p class="p1"><span class="s1">There has been significant uplift in sales activity in Perth, as the underlying state economy improves.</span></p>
<p class="p1"><span class="s1">Canberra sales activity is rising steadily also, and Adelaide currently has one of the most active markets among the capital cities.</span></p>
<p class="p1"><span class="s1">When demand rises, prices tend to follow. One major forecaster has tipped Canberra to lead on price growth in the next 2-3 years. I think the national capital will definitely be a contender, but so will Perth and Adelaide.</span></p>
<p class="p1"><span class="s1"><strong>3 Rents have risen strongly, but prices haven’t moved much - yet</strong></span></p>
<p class="p1"><span class="s1">Before Sydney prices started to rise, we saw a couple of years of strong growth in residential rentals. Before house prices started to move in Hobart, it was noticeable that vacancies were extremely low and that rents were rising. Prices followed.</span></p>
<p class="p1"><span class="s1">So where are those conditions most evident right now in capital city Australia? The clear answer is Canberra, where vacancies are below 1% and residential rents have risen strongly in the past year or so, according to SQM Research data.</span></p>
<p class="p1"><span class="s1">We’re also observing significant improvement in the Perth rental market, with vacancies declining and leasing activity rising.</span></p>
<p class="p1"><span class="s1"><strong>4 Prices overall haven’t moved much, but the Top End has had strong growth</strong></span></p>
<p class="p1"><span class="s1">Sydney’s growth cycle started at the Top End and rippled out over time. In Melbourne, the up-cycle began in the millionaire suburbs and gravitated from there to the middle ring and more recently to the outer ring suburbs.</span></p>
<p class="p1"><span class="s1">This is a common pattern in property cycles. And right now there are three capital cities where the million-dollar suburbs have had double-digit price growth in the past year, but the market overall has not had big price growth.</span></p>
<p class="p1"><span class="s1">Those three cities are Perth, Adelaide and Canberra.</span></p>
<p class="p1"><span class="s1"><strong>Where do all these markers point us?</strong></span></p>
<p class="p1"><span class="s1">Put all those indicators together and they point to strong price growth in the near future in three capital cities:</span></p>
<ul class="ul1">
<li class="li1"><span class="s1">Canberra: the underlying economy ranks third in the nation, it has the highest average incomes and lowest unemployment, vacancies are low and the rental growth is the highest in the nation, sales activity (demand) is increasing and the Top End prices have risen strongly.</span></li>
<li class="li1"><span class="s1">Adelaide: the state economy is improving and has big growth drivers in the system, vacancies are below average, demand is rising, yields are strong and Top End prices have risen at above-average rates.</span></li>
<li class="li1"><span class="s1">Perth: the state economy is recovering, vacancies are falling, rental activity is rising, sales activity is steadily improving and Top End prices have recorded double-digit annual growth in many of the millionaire suburbs.</span></li>
</ul>
<p class="p1"><span class="s1">Brisbane will get on board if the signals of an improving state economy and the promise of big spending on infrastructure actually come to pass.</span></p>
<p class="p2"><span class="s3">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p2"><span class="s4"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p3"><span class="s3"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

Four key markers for property investors of future price growth

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<div>There's an old tradition when it comes to job numbers that goes something like this: if the numbers are crap we're doomed; and if the numbers are good then they must be wrong.</div>
<div> </div>
<div>The technical term for this is <em>confirmation bias</em>.</div>
<div> </div>
<div>As ever this month's <a href="http://petewargent.blogspot.com/2018/09/enormous-jobs-growth-in-nsw" target="_blank">booming jobs numbers</a> were treated with anything from scepticism to outright derision.</div>
<div> </div>
<div>And yet the solid results have kept on coming, especially in the two most populous states. </div>
<div> </div>
<div>There's another bias that tends to impact people: when things have been bad, they expect bad things to continue.</div>
<div> </div>
<div>And quite understandably we're seeing a lot of this in relation to weak private sector wages growth.</div>
<div> </div>
<div>After all, soft nominal wage price growth has been around since 2015, so it's becoming quite hard to imagine that pay packets could soon begin to swell again. </div>
<div> </div>
<div>But take note, because in some states this may be about to change...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Private sector wages to lift</span></strong></div>
<div> </div>
<div>Although it never seems to get reported anywhere, I've shown <a href="http://petewargent.blogspot.com/2018/07/statistical-buggery" target="_blank">several times before</a> that while the underutilisation <strong><em>rate </em></strong>is high, in volume measures terms things have been very steadily improving for the past few years. </div>
<div> </div>
<div><span>That is to say, lots of people still want more hours of work, but the numbers of extra hours wanted has been declining over the past four years.</span></div>
<div><span> </span></div>
<div class="separator"><a href="https://2.bp.blogspot.com/-1YQRG8zAXOg/W51tO98q9RI/AAAAAAAAr6M/vjMLPeIRSGQWCmjRozgEk1kmQtCf41EOACLcBGAs/s1600/UU.jpg"><img src="https://2.bp.blogspot.com/-1YQRG8zAXOg/W51tO98q9RI/AAAAAAAAr6M/vjMLPeIRSGQWCmjRozgEk1kmQtCf41EOACLcBGAs/s640/UU.jpg" width="640" height="376" data-original-height="799" data-original-width="1355"></a></div>
<div> </div>
<div>Where is wages growth going to show up first?</div>
<div>
<br>The answer is Victoria, with construction firing up across the state <a href="http://petewargent.blogspot.com/2018/07/state-of-victoria-getting-under" target="_blank">on an unprecedented scale</a>.</div>
<div> </div>
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<div> </div>
<div><span>And sure enough this week's figures showed that the underutilisation rate in Victoria has dived from a seasonally adjusted peak of 16.1 per cent to 12.5 per cent, with the trend pointing straight down. </span></div>
<div><span> </span></div>
<div>If you listen to the brilliant Business Insider <em>Devils &amp; Details</em> podcasts you'd be well across the following point thanks to the awesome deep-dive analysis of Justin Smirk at Westpac.</div>
<div><span> </span></div>
<div><span>Even allowing for potentially rogue seasonally adjusted figures, the trend improvement points to private sector wages growth in Victoria returning to 3<span>½</span> per cent in due course. </span></div>
<div>
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</div>
<div>The recent improvement in New South Wales has been a little shallower, but the trend is quite similar, and in fact the unemployment rate in the state is now down to just 4.7 per cent in seasonally adjusted terms. </div>
<p> </p>
<div>Here's the paradox of immigration: of course, it adds to the supply of labour, but it also creates demand in the economy. </div>
<div> </div>
<div>Indeed, as Smirk has demonstrated previously, the underutilisation in the labour force has not been behaving in a way consistent with it being solely caused by immigration. </div>
<div> </div>
<div>And these numbers confirm that he's right, with the tightening labour markets being those where most immigrants are heading to.</div>
<div> </div>
<div>The numbers in Victoria and New South Wales keep on improving.<br><br>This certainly won't stop the calls for lower immigration, of course, or indeed the predictions of a recession, but these numbers suggest that wages growth should pick up from here. </div>
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Wages growth in NSW and Victoria is coming: Pete Wargent

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<p>EXPERT OBSERVATION</p>
<div id="post-body-5825783051489187345" class="post-body entry-content">
<div>The most timely JLL report showed that the residential construction pipeline is now shrinking fast on tighter lending criteria for developers and investors.  </div>
<div> </div>
<div>In time this will inevitably lead to tighter rental vacancies, especially as we head into and beyond the traditionally busy Christmas and New Year period, with more Airbnb offerings also set to eat into the rental market through this cycle. </div>
<div> </div>
<div>With the greatest volume of apartment construction through this cycle Sydney and Melbourne will be the last markets to know about the tightening (although when D-Day does come the presently record high population growth in these cities means that the tightening of rentals market may also be felt most acutely).</div>
<div> </div>
<div>We're already hearing more and more stories of failed or delayed settlements, so the slowing in supply could come about sooner than expected. </div>
<div> </div>
<div>The initial impacts will be felt in Hobart, Canberra, Adelaide, and an array of rental markets around regional Australia.</div>
<div> </div>
<div>Indeed, SQM's latest figures showed that rental vacancies had already fallen to the <a href="http://petewargent.blogspot.com/2018/11/lowest-vacancies-since-early-2014" target="_blank">lowest level since 2014</a> by the end of last month, so the process is well underway.</div>
<div> </div>
<div>The HIA forecast today in its National Outlook that housing starts will fall by more than 50,000 from the peak, noting (or lamenting) that:</div>
<div> </div>
<div>'APRA’s restrictions were designed to curb high risk lending practices but we are now seeing ordinary home buyers experience delays and constraints in accessing finance.'</div>
<div> </div>
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<div class="separator"> </div>
<div>Note that all of this is before Labor's proposed changes to negative gearing come about, which were originally designed to slow investor activity in the raging hot markets of 2016. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Arrivals hit record high</span></strong></div>
<div> </div>
<div>The ABS released its arrivals and departures figures for the month of September 2018 this morning, which showed permanent and long-term arrivals rising to 823,090 over the year to September. </div>
<div> </div>
<div>This represents an increase of 6 per cent from a year earlier, and is the highest figure on record for Australia (the equivalent figure around the time of the Sydney Olympics was about 300,000, which is a measure of just how popular migration to Australia has become).</div>
<div> </div>
<div>
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<div class="separator"> </div>
</div>
<div>Short-term arrivals into Australia have also boomed in recent years, rising to a record high of 9.2 million in September. </div>
<div>
<br>Interestingly the growth is no longer being driven by Chinese tourists, with a range of other countries picking up the mantle, including India.<br><br><div class="separator"><a href="https://2.bp.blogspot.com/-9e36O96FObc/W_IIPQ4rEKI/AAAAAAAAs8Y/sauXuXL3M88cp9P4W5h8nuuXZV_WA_JCgCLcBGAs/s1600/A2.jpg"><img src="https://2.bp.blogspot.com/-9e36O96FObc/W_IIPQ4rEKI/AAAAAAAAs8Y/sauXuXL3M88cp9P4W5h8nuuXZV_WA_JCgCLcBGAs/s640/A2.jpg" width="640" height="352" data-original-height="799" data-original-width="1447"></a></div>
<br>Education arrivals were also up by 5 per cent from a year earlier to a record high of 596,400.<br><br><div class="separator"><a href="https://2.bp.blogspot.com/-BeHBJ35BtQ0/W_IKs0Qkn9I/AAAAAAAAs8s/XzTDMdxiWHs0kmY8ed9iJjFEdByWn8HGgCLcBGAs/s1600/Education.jpg"><img src="https://2.bp.blogspot.com/-BeHBJ35BtQ0/W_IKs0Qkn9I/AAAAAAAAs8s/XzTDMdxiWHs0kmY8ed9iJjFEdByWn8HGgCLcBGAs/s640/Education.jpg" width="640" height="374" data-original-height="793" data-original-width="1357"></a></div>
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<div class="separator"> </div>
</div>
<div>Finally, at the state level short-term arrivals were up by 4 per cent in New South Wales to 3.45 million for the year to September, but growth was stronger in Victoria (up 8 per cent to 2.3 million) and Queensland (up 8 per cent to 2 million).</div>
<div> </div>
<div>
<a href="https://2.bp.blogspot.com/-BQ5Zsf2TBjQ/W_IIrT42XKI/AAAAAAAAs8g/vzjR8vNOBGA1kafBkeVaYabmGUZesD40gCLcBGAs/s1600/A4.jpg"><img src="https://2.bp.blogspot.com/-BQ5Zsf2TBjQ/W_IIrT42XKI/AAAAAAAAs8g/vzjR8vNOBGA1kafBkeVaYabmGUZesD40gCLcBGAs/s640/A4.jpg" width="640" height="358" data-original-height="797" data-original-width="1418"></a><br><br>Queensland was a little flattered here by the <a href="http://petewargent.blogspot.com/2018/04/gc2018hockey" target="_blank">Commonwealth Games XXI</a>, held at Gold Coast earlier this year...although that all seems like a long time ago now!<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>Both short- and long-term arrivals hit record highs for the year to September 2018, with accordingly significant implications for housing market demand over the year(s) ahead.<br><br>Australia's visa programme is tilted towards those aged under 30, so there are dramatic implications for rental market demand here as construction slows, as well as pent up demand for entrants to home ownership over the years ahead. </div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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Rental vacancies to tighten: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Australia abounds with locations where buyer activity is rising and there is strong potential for prices to rise, notwithstanding the general impression created by national media.</span></p>
<p class="p1"><span class="s1">The latest edition of the Price Predictor Index by Hotspotting has identified good quantities of growth markets within our smaller capital cities and, in particular, within the many solid regional markets that exist, especially on the eastern side of the nation.</span></p>
<p class="p1"><span class="s1">The very solid Adelaide market has large numbers of locations with rising demand, as does the recovering Perth market and the always-steady Canberra market.</span></p>
<p class="p1"><span class="s1">Regional New South Wales, as I noted in an earlier column, has strong growth markets right across the state. In some, prices have already risen strongly in the past 6-12 months, while others have the potential for growth based on the current demand trends.</span></p>
<p class="p1"><span class="s1">Regional Victoria has delivered the strongest price growth anywhere in Australia in the past year, in terms of locations where median prices have increased more than 20 percent. Other markets are now emerging, based on the sales trends, with the potential to deliver big growth.</span></p>
<p class="p1"><span class="s1">Regional Tasmania has numerous growth markets, led by Launceston, and collectively has provided some of the nation’s strongest price growth recently, based on CoreLogic figures.</span></p>
<p class="p1"><span class="s1">Regional Queensland is also sparking to life, led by double-digit growth in many of the suburbs of the Sunshine Coast and by recovering Central Queensland markets such as Mackay.</span></p>
<p class="p1"><span class="s1">I regard The Price Predictor Index as an important report because it scrutinizes one of the key parts of the property price equation – demand - by charting the number of sales occurring in every suburb and town in Australia.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">The surveys are conducted every three months to identify patterns of demand – whether demand is rising in key markets, or whether demand is falling – or, as is the case in many locations, whether there’s a pattern of consistent and steady demand, quarter by quarter, over time.</span></p>
<p class="p1"><span class="s1">The basic premise of this methodology is that prices respond to demand patterns – if demand is rising over time, prices will rise (all other things being equal).<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">If demand is falling, price growth will slow down, and may eventually stop, and – in some instances – prices will fall.</span></p>
<p class="p1"><span class="s1">The key factor here is that there’s a time lag. Prices don’t react instantaneously to changes in demand. It takes time for the changing demand patterns, whether up or down, to work through into property markets and create reactions in prices.</span></p>
<p class="p1"><span class="s1">Demand in the Sydney was steadily falling away in 2016 but it wasn’t until 2017 that we saw the first clear signs of a slow-down in price growth, looking across all the data from multiple research sources.</span></p>
<p class="p1"><span class="s1">And then in 2018, as the slow-down in demand continued, we saw prices falling in some parts of the Sydney market, although in most cases the decreases have been quite moderate.</span></p>
<p class="p1"><span class="s1">Right now, prices are rising strongly in other Australian markets, including in Hobart; in the million-dollar suburbs of Canberra, Adelaide and Perth; and in numerous locations in regional Australia. In each case, these price rises were preceded by increases in sales volumes – in other words, increases in demand.</span></p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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Demand in smaller capitals and solid regional markets will lead to property price growth: Hotspotting's Terry Ryder

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<p><span>EXPERT OBSERVER</span></p>
<p><span>Nationally dwelling values as at October 2018 have fallen by - 3.5% from their peak with much larger falls in Sydney, Melbourne, Perth and Darwin.</span></p>
<p><span>The reality is that there has been very little improvement in housing affordability; Sydney and Melbourne in particular are a little cheaper, but remain substantially more expensive than other capital cities.</span></p>
<p><span>Although house values in Sydney are now -9.3% lower than their peak, the cost of a house in Sydney is still substantially higher than elsewhere at $960,344. In fact, a house in Sydney is now more than double the median value of an Adelaide and Hobart house.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%201.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/22/corelogic%201.jpg" alt=""></span></p>
<p> </p>
<p>Source: CoreLogic</p>
<p><span>Looking </span><span>at house values over time is interesting.</span><span><br></span></p>
<p><span>Sydney has consistently </span><span>been the most expensive capital city housing market however, although at one point, Perth was slightly more expensive (after Perth values surged more than 40% annually at one point in 2006 on the back the resources boom). Relative to other capital cities the Sydney premium is recorded at: 23% for Melbourne, 76% for Brisbane, 105% for Adelaide, 100% for Perth, 101% for Hobart, 88% for Darwin and 44% for Canberra.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%202.jpg" target="_blank">Click here</a> to enlarge;</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/22/corelogic%202.jpg" alt=""></span></p>
<p>Source: CoreLogic</p>
<p><span>Despite recent value falls in Sydney</span><span>, the value gap has not been at such wide levels as it is currently for most cities since late 2003/early 2004. The one exception is the value differential for Melbourne, which over recent years has been substantially narrower than previously.</span></p>
<p><span>Similarly, the Melbourne value gap </span><span>compared to other capital cities (except Sydney) is the widest it has ever been. Historically, the value of houses in Melbourne have been quite similar to those in Brisbane and Perth however, this is no longer the case.</span></p>
<p><span>For units, the story is a similar one</span><span>. </span><span>Sydney’s </span><span>median unit value at ($740,394) remains more expensive than median house values in all other capital cities except for Sydney and Melbourne. Similarly, the median Melbourne unit value ($555,517) remains higher than median house values in all other capital cities except Sydney, Melbourne and Canberra.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%203.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/22/corelogic%203.jpg" alt=""></span></p>
<p>Source: CoreLogic</p>
<p><span>Over time, unit values have saw a consistent trend whereby Sydney has been more expensive than the other capital cities. </span></p>
<p><span>The current premium for Sydney compared to other capital cities sits at: 32% for Melbourne, 90% for Brisbane, 123% for Adelaide, 94% for Perth, 95% for Hobart, 134% for Darwin and 67% for Canberra. </span></p>
<p><span>As was the case for houses, the differential has not been as large as it is currently between Sydney and these other capital cities since 2003/2004. Melbourne was exception where the differential has been reducing over recent years.</span></p>
<p><span>With house and unit values falling in Sydney and Melbourne, Mr Kusher expects the premiums to reduce further over the coming months and year(s).</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%204.jpg" target="_blank">Click here </a>to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/22/corelogic%204.jpg" alt=""></span></p>
<p>Source: CoreLogic</p>
<p><span>While </span><span>this may be the case, any significant reduction in housing costs back to historic premiums would take a long period of declines or flat housing market conditions. Furthermore, it seems unlikely, given the economic strength and populations of Sydney and Melbourne that the value premium of housing in these two cities will revert to historical levels.</span><span><br></span></p>
<p><span><em><span>CAMERON KUSHER</span> is a property research analyst for CoreLogic</em></span></p>
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Very little improvement in housing affordability despite dwelling decline

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<div>EXPERT OBSERVATION</div>
<div> </div>
<div>It's a happy new year, and all that, but not so much for bankers, with lending growth continuing to flounder. </div>
<div> </div>
<div>The Reserve Bank's latest figures showed credit growth slowing to 4.4 per cent, down from 5.2 per cent a year earlier, and broad money growth at fresh quarter-century lows of just 1.86 per cent. </div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-1I8fNGCXk6k/XCqUFoyKJPI/AAAAAAAAtsc/xXakammeXQAlHhvGQp9I_UB9FnMLp02cwCLcBGAs/s640/RBA1.jpg" width="640" height="370" data-original-height="801" data-original-width="1383"></div>
<p> </p>
<div class="separator"> </div>
<div>It was noteworthy to hear last week that the RBA has been watching the gross household debt-to-income ratio as a main point of concern, especially as <a href="http://petewargent.blogspot.com/2018/12/debt-ratio-revised-lower-now-falling" target="_blank">this ratio has already peaked and is now falling</a>. </div>
<div> </div>
<div>The distinction from <em>housing</em> debt-to-income was quite interesting (to me at least) as the lines between housing, small business, and personal credit are blurred at best, with small business loans often secured against a home, and so on. </div>
<div> </div>
<div>As you can see in the chart below, changes in the direction of housing credit growth have tended to lead changes in dwelling price growth. </div>
<div> </div>
<div>You can also see that no such change had occurred by the end of November 2018. </div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-Dqi23bcB6-Q/XCqUHZwLEgI/AAAAAAAAtsg/RKoxndSCpVUL5OIvz-ZGLEb4G8XspSL5gCLcBGAs/s640/RBA3.jpg" width="640" height="378" data-original-height="795" data-original-width="1346"></div>
<p> </p>
<div>A simple credit impulse model as favoured by ANZ economists suggests that capital city (i.e. Sydney and Melbourne) dwelling price declines should moderate, although there are several factors unique to this cycle - not least the boom and bust in Chinese investors - that could throw the model a bit off course (this may have already happened to some extent since 2014). </div>
<p> </p>
<div class="separator"><img src="https://2.bp.blogspot.com/-hg19s7pQfzU/XCqUE6b5LmI/AAAAAAAAtsY/pvq8s6-v7MEhCHqgIJamHA7GeoF0vQUcQCLcBGAs/s640/RBA2.jpg" width="640" height="374" data-original-height="787" data-original-width="1341"></div>
<p> </p>
<div>Investor credit growth was already at the lowest level on record, and it fell to even lower levels last month, allowing APRA to remove another of its now-redundant arbitrary caps, this time on interest-only lending. </div>
<div> </div>
<div>Given the enormous growth in the population aged 25 to 34 in particular, this is now a remarkably low level of growth in investor credit, even if it did follow on from a boom. </div>
<div> </div>
<div class="separator"><img src="https://4.bp.blogspot.com/-LmCPOkyIAMs/XCqUDn5r1zI/AAAAAAAAtsU/43fTNK6yncENxThK3etijkbED9oHjaPAgCLcBGAs/s640/RBA.jpg" width="640" height="366" data-original-height="803" data-original-width="1402"></div>
<p> </p>
<div>Not surprisingly the growth in owner-occupier credit also declined for a ninth consecutive month.</div>
<div> </div>
<div>CoreLogic will release its latest home value index for the month of December, and this will show significant declines for Sydney and Melbourne in 2018.<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>In short, business credit was moderate, personal credit was negative, and housing credit has no pulse - let's hope that doesn't turn into a full-blown coronary.</div>
<div> </div>
<div>Happy New Year! </div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.</em></div>
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2018 finishes with housing credit having no pulse: Pete Wargent

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<p>National residential listings declined 9.2% in December 2018 to 328,203 from 361,619 in November 2018, according to SQM Research.</p>
<p>It noted that the stock reduction in all cities was expected during the festive and summer break, however, the decline in Sydney, Melbourne and Canberra were larger than expected.</p>
<p>Residential listings were down on November in Sydney 17.7%, Melbourne 17.2% and Canberra 15.5%.</p>
<p>Hobart recorded the smallest monthly decline at 5.8%.</p>
<p>But compared to a year earlier, national listings were up 2.8%, with Sydney, Melbourne and Canberra’s year-on-year listings up the most - Melbourne up 25.4%, Canberra 19.3% and Sydney up 16.5%.</p>
<p>Hobart on the other hand experienced a yearly decline of 5.8%, with residential property listings dropping from 2,426 in December 2017 to 2,286 in December 2018.</p>
<p>Adelaide and Darwin also experienced yearly declines of sale listings at 4.1% and 2.9%, respectively.</p>
<p><img src="https://www.urban.com.au/images/2019/1/8/SQM%20Table%201.JPG" alt=""></p>
<p>(Source: SQM Research)</p>
<p>Louis Christopher, managing director of SQM Research, said listings in December had some large falls however, let us keep in mind there was a surge in listings recorded in November and that December traditionally records a large fall in properties for sale as this is a holiday period.</p>
<p>“Our view remains in place that prices will likely fall in Sydney and Melbourne over the course of 2019.</p>
<p>"We note however that Melbourne house asking prices increased during the month by 0.3% as did unit asking prices in Sydney 0.7%.</p>
<p>"I also note that national listings are now only up 2.8% for the year, indicating that regional centres may well have outperformed the major capital cities in 2018.”</p>
<p><a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a></p>
<p>Asking prices were a different story as capital city asking prices rose 0.4% for units to $571,600 but declined 0.9% for houses to $924,500, for the month to 31 December 2018.</p>
<p>The largest monthly rise came from Canberra, where house asking prices rose 2.5%. However, Unit asking prices in Canberra declined by 1.1%.</p>
<p>Sydney recorded the highest increase in Unit asking prices of 0.7% but the largest decline in House asking prices of 1.6% over the month.</p>
<p>Year-on-year asking price gains were the strongest in Canberra for both houses and units, with house prices rising by 3.4% and Units by 7.9%.</p>
<p>Year-on-year prices fell in Sydney, Darwin and Perth for both houses and units.</p>
<p>Brisbane and Hobart recorded increases in house asking prices but unit prices declined year-on-year.</p>
<p>This was reversed in Adelaide and Melbourne which recorded decreases in house prices but increases in unit asking prices over the year.</p>
<p><img src="https://www.urban.com.au/images/2019/1/8/SQM%20Table%202.JPG" alt=""></p>
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