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

Joel Robinson

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

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

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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

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

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

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

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;

<h2>What is the Help to Buy Scheme?</h2>

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.

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).

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.

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.

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.

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.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<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>

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.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

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

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.

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.

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.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: 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.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: 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.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: 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.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

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.

Every First Home Owner Grant for new property by state

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.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

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.

<h2>What is NatHERS?</h2>

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;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

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.

<h2>How NatHERS Ratings Work</h2>

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.

The tools can model complex effects of building mass, insulation, window size, and other elements.

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.

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;

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.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: 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.

Cost Savings: 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.

Environmental Impact: 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.

Improved Comfort: 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.

Market Value and Desirability: 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.

Compliance with Building Codes: 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.

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?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

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.

<h3>Convenience and accessibility</h3>

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.

[smartcode_project:default project_id=114215 project_image_fid=204874]

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.

<h3>Vibrant lifestyle and community</h3>

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.

[smartcode_project:default project_id=107714 project_image_fid=214122]

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.

<h3>Potential for higher rental yields and property value appreciation</h3>

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.

[smartcode_project:default project_id=139989 project_image_fid=212887]

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.

<h3>Enhanced security and maintenance</h3>

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.

[smartcode_project:default project_id=108019 project_image_fid=212658]

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.

<h3>Live-work-play balance</h3>

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.

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.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<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>

<h2>Who pays Stamp Duty?</h2>

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.

<h2>How much does Stamp Duty cost?</h2>

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.

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!

Overall, the stamp duty you need to pay will depend on:

<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>

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.

Ellen Walker

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

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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A month out from a state election, the Victorian Napthine government has seriously stung the state's real estate agents.
Last week, the government announced that agents handling the sale or lease of commercial real estate valued over $15 million or at with floor space of least 10,000 square metres will no longer need a licence.
<a href="https://www.propertyobserver.com.au/https://twitter.com/geoffwhite/status/527206198949314560" target="_blank"><img src="/images/2014/10/29/tweet-oct-29-one.jpg" alt=""></a>
Some licensed real estate agents, including Geoff White of Lucas Real Estate, aren't happy.
The Real Estate Institute of Victoria has already pledged $1 million to campaign against the government's changes, which it claims will damage small business and increase risks for consumers as agents may not be required to use trust accounts or have insurance.
The Coalition government claims the measures will "reduce red tape".
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jrichardson-uRX5hFdKfN

Real estate agents push back against Napthine's reforms: Tweet of the day

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The speed of population growth into Australia has been winding down since reaching a recent annual peak in December 2012 when the national population grew by 1.78% over the year.
With overseas migration moderating and a slowdown in the rate of natural increase, the annual rate of population growth across the country has slipped to 1.69% over the year ending March 2014. The more timely overseas arrivals and departures data indicates that net overseas migration to Australia is continuing to slow down, so we should expect the rate of population growth to continue tapering over the near term.
Across the states there is a third component of population growth; interstate migration flows. The trends of migration flows between the states has been changing over the past few years with the mining states demonstrating a sharp slowdown in both overseas migration flows as well as less net migration across the state borders. Conversely, the non-mining states are seeing a pick-up in interstate migration flows as workers ‘bounce’ back from resources sector jobs that are no longer there.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/1-Rolling-annual-change-in-Australias-population.jpg" target="_blank"><img class="aligncenter size-large wp-image-3882" src="https://blog.rpdata.com/wp-content/uploads/2014/10/1-Rolling-annual-change-in-Australias-population-580x120.jpg" alt="1 Rolling annual change in Australias population" width="580" height="120"></a>
The following dashboards highlight the interstate migration flows for each state; what are the overall interstate migration trends, where are the migrants coming from and where are they going to?
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/2-Net-qtrly-interstate-migration-nsw-vic-qld-sa-wa.jpg" target="_blank"><img class="aligncenter size-large wp-image-3883" src="https://blog.rpdata.com/wp-content/uploads/2014/10/2-Net-qtrly-interstate-migration-nsw-vic-qld-sa-wa-580x120.jpg" alt="2 Net qtrly interstate migration nsw vic qld sa wa" width="580" height="120"></a>
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/3-Net-qtrly-interstate-migration-tas-nt-act.jpg" target="_blank"><img class="aligncenter size-large wp-image-3884" src="https://blog.rpdata.com/wp-content/uploads/2014/10/3-Net-qtrly-interstate-migration-tas-nt-act-580x120.jpg" alt="3 Net qtrly interstate migration tas nt act" width="580" height="120"></a>
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/4-Annual-net-interstate-migration-flows.jpg" target="_blank"><img class="aligncenter size-large wp-image-3885" src="https://blog.rpdata.com/wp-content/uploads/2014/10/4-Annual-net-interstate-migration-flows-580x166.jpg" alt="4 Annual net interstate migration flows" width="580" height="166"></a>
Across NSW interstate migration remains in negative territory (in fact there hasn’t been a single period over the ABS historical series where net interstate migration has moved into positive territory in NSW). With a net interstate migration figure of -1,036 over the 12 months ending March 2014, this is the smallest net loss of interstate migrants for NSW on record.
The improved interstate migration figures are largely being driven by an improvement in net migration between Queensland where the net rate of interstate migration was at a record low of -4,786 over the year to March 2014. To provide some context, in 2003 the net interstate migration deficit between NSW and Queensland was just under 26,000.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/5-NSW-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3886" src="https://blog.rpdata.com/wp-content/uploads/2014/10/5-NSW-IM-stats-453x580.jpg" alt="5 NSW IM stats" width="453" height="580"></a>
Victoria is now the national leader for interstate migration, taking the title away from Queensland since the September quarter last year based on annual net migration figures. Net interstate migration into Victoria is currently at a record high with a net 2,468 more residents moving to the state from other regions of Australia.
Net migrants from NSW were the most substantial interstate contributors to Victorian population growth; however the trend of interstate arrivals from the mining states to Victoria is at record levels and trending higher.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/6-VIC-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3887" src="https://blog.rpdata.com/wp-content/uploads/2014/10/6-VIC-IM-stats-453x580.jpg" alt="6 VIC IM stats" width="453" height="580"></a>
Queensland is no longer attracting the largest number of net interstate migrants, falling to second position after Victoria since the September quarter last year. Over the year to March 2014 the state of Queensland attracted an additional 5,772 net interstate migrants which is only slightly higher than the previous all-time low of 5,384 net interstate migrants recorded over the year ending December 2010.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/7-QLD-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3888" src="https://blog.rpdata.com/wp-content/uploads/2014/10/7-QLD-IM-stats-450x580.jpg" alt="7 QLD IM stats" width="450" height="580"></a>
Net interstate migration into South Australia hasn’t changed a great deal over recent years with the quarterly rate of net migrants typically bouncing between -1,500 and -500 over the past decade. The largest portion of state residents are lost to Victoria, where over the year ending March 2014 there was a net interstate loss of 1,827 residents to Victoria.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/8-SA-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3889" src="https://blog.rpdata.com/wp-content/uploads/2014/10/8-SA-IM-stats-448x580.jpg" alt="8 SA IM stats" width="448" height="580"></a>
 
Western Australia still lays claim to the title of ‘fastest growing state’ with an annual population growth rate of 2.5%, there has been a consistent moderation in the rate of growth since a recent annual peak of 3.72% over the year ending September 2012. WA is still attracting a positive net interstate migration rate, however there were only 256 net interstate migrants to WA over the March quarter, down from a recent high of 3,395 over the March quarter of 2012.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/9-WA-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3890" src="https://blog.rpdata.com/wp-content/uploads/2014/10/9-WA-IM-stats-452x580.jpg" alt="9 WA IM stats" width="452" height="580"></a>
Net interstate migration into Tasmania has remained in negative territory since late 2010, however the trend is showing some constancy and is now approaching a neutral rate of interstate migration. The last time net interstate migration was substantially positive into Tasmania was between 2003 and 2004 when housing markets were booming.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/10/10-Tas-IM-stats.jpg" target="_blank"><img class="aligncenter size-large wp-image-3891" src="https://blog.rpdata.com/wp-content/uploads/2014/10/10-Tas-IM-stats-453x580.jpg" alt="10 Tas IM stats" width="453" height="580"></a>
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tlawless-5VLUrbAk9s

Interstate migration to Victoria at record highs

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The New South Wales New Home Grant Scheme was introduced in July 2012 to stimulate the construction of new homes and some 16,474 New Home Scheme grants of $5,000 were paid in its first full year totalling $82 million.
But there was no restriction on its take-up, unlike the schemes that it replaced.
So one mystery Australian investor - or investment company - secured 149 grants totalling $745,000 to assist in their 149 new homes purchases. The total outlay of the investor is not known.
The scheme provided a grant of $5,000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.
Another applicant received 83 of the grants. One local got 56 grants, another 39, another 38 with one buyer receiving 36 and another 31.
Some 21 buyers got six grants, 72 got four, 199 investors got three grants while 1,181 received two. 
All up there were 1,553 multiple local recipients in the first two years, the Daily Telegraph's state political reporter, Andrew Clennell reported.
<a href="https://www.news.com.au/finance/real-estate/foreign-buyers-are-cashing-in-on-nsws-new-home-grant-scheme/story-fndban6l-1226817098977" target="_blank">But despite the fears</a> there were just the 31 overseas multiple recipients, budget documents provided to the upper house revealed.
One overseas investors received six grants, another received five and 21 overseas buyers received two grants.
The investors who seized the opportunity to grab more than one grant secured some $25 million over the past two years.
Changes to the New Home Grant Scheme were announced in the 2014 state budget when Treasurer Andrew Constance stopped overseas buyers accessing the scheme and also put a stop to buyers being able to get multiple grants.
For purchasers to be eligible to receive the grant, the value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000. 
The grant is not be available for the purchase of an existing home to knock down and build a new home on the land. 
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jchancellor-FAypfDUnLy

Rorting investor's $750,000 property plunge using 149 government grants under NSW new home scheme

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GUEST OBSERVATION
There has been much talk about the “search for yield” in investment markets. 
Investor interest in decent yield bearing investments has seen the price of such assets rise and their yields (or the cash flow they provide relative to their price) fall. This is clearly evident during the last three years. 
The chart below shows the yield available on various Australian assets today versus what they offered three years ago. All have seen a fall in their yields to varying degrees. 
<img src="/images/2014/10/23/oliver-oct-23-one.png" alt="">
But what's driving this? Is it a bubble? What warning signs should we watch? What does it mean for investors?
Why all the interest in yield? 
The first thing to note is that interest in the yield or cash flow an investment provides is a normal part of investing. But it seems to become a greater focus at various points in time. This is particularly so when interest rates are relatively low and investors are a bit wary about going for growth.
In Japan it’s become the norm as interest rates have stayed at/near zero for 15 years. In the US and Australia, yield focussed investing was in favour in the 1950s when interest rates were low and investors still cautious after the Great Depression and WW2. It became particularly apparent last decade as investors started putting more into yield plays like property, infrastructure and credit as bond yields remained relatively low only to be interrupted by the GFC. It has since returned with a vengeance.
There are three main drivers:
<ol>
<li>Low interest rates have pushed bank deposit rates and bond yields down, all of which is encouraging investors into higher-yielding alternatives. </li>
<li>Reduced fear of economic meltdown has helped investors feel comfortable taking on more risk but with memories of the GFC and its aftermath still fresh, this is only in a cautious fashion. So there is a desire for the comfort provided by investments that get a high proportion of their return from income. </li>
<li>Finally, aging populations are driving a longer term interest in yield. This started last decade as the first baby boomers moved into their pre-retirement phase and is intensifying now as they are starting to retire. This is driving demand for investments paying decent income in the form of dividends, rent, interest payments, etc. That said, trying to get a handle on the precise impact of this is nigh on impossible given increasing retirement ages and longevity driving a need for a decent growth exposure. </li>
</ol>
Is it structural of cyclical? 
The safest option in investment markets is to assume something is cyclical (ie short-term) rather than structural (ie long-term) until proven otherwise. Demographic influences are clearly structural and long-term. However, there is a structural aspect to low interest rates that cannot be ignored. 
First, to state the obvious, interest rates have been trending down with lower peaks and troughs since the 1980s. 
Second, the period of near zero/low global interest rates that has followed the GFC doesn’t look like it is about to end anytime soon. While the low global rates and easy money of the last few years have been constantly met with scepticism and concern about inflation and higher rates around the corner, the reality is that it hasn’t happened.
We are now into the fourth year in a row where the hoped for lift off to above trend global growth has not happened. Global growth remains OK at around 3 to 3.5%, but it’s below trend and uneven with periodic flare ups of concern about recession and deflation as we have seen during the last month or so in relation to Europe.
While it’s dangerous to say “this time it’s different”, quite clearly the world is different to the pre-GFC environment with excess levels of saving, spare capacity and more cautious attitudes to debt resulting in sub-par, uneven growth and low inflation/deflationary risks.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
The impact of low bond yields 
The logic of the chase for yield can be seen in relation to Australian commercial property (ie office, retail and industrial property). The next chart shows average commercial property yields relative to 10-year bond yields. While commercial property yields have fallen over the last 34 years from an average of 8.3% to an average of 6.6%, the yield on bonds has literally collapsed.
While the step down in bond yields was initially treated with scepticism on the grounds that “it’s just a bubble” or “inflation will soon take off forcing yields back up”, the longer it has persisted, thanks to sub-par growth and low inflation, the more investors have come to expect bond yields to stay down. So they increasingly invest in yield bearing alternatives such as property.
<img src="/images/2014/10/23/oliver-oct-23-two.png" alt="">
Faced with the choice of investing in a 10 year government bond yielding 3.2% as they are in Australia now, or allocating to commercial property with a 6.6% average yield and capital growth of, say, 2.5% pa (ie inflation) giving a total return of 9.1%, an investor might well conclude the latter makes more sense. 
In fact, looked at this way the property risk premium – ie the return potential property provides over current bond yields – at about 5.9% is about as high as it ever gets.
<img src="/images/2014/10/23/oliver-oct-23-three.png" alt="">
And of course, the same logic can be applied to investment in assets such as infrastructure, shares and corporate debt.
But is the chase for yield on borrowed time?
Is it wise for investors to behave this way? Probably yes… until it goes too far, bond yields surge or growth disappoints.
Has it gone too far? 
Inevitably the search for yield will be pushed too far as it was last decade. Perhaps the greatest risks are seen to be around corporate debt where the gap between US investment grade and junk bond yields and US government bond yields has fallen to the range that prevailed prior to the GFC.
However, credit spreads remained around these narrow levels for many years in the mid-1990s and mid-2000s before trouble arose. Nor have credit lending standards deteriorated like they did prior to the GFC.
<img src="/images/2014/10/23/oliver-oct-23-four.png" alt="">
In terms of equities, there has certainly been a narrowing in the gap between the forward earnings yield on shares and bond yields. But, as can be seen in the next chart, this gap – or a guide to the risk premium shares offer relative to bonds – still remains relatively wide compared to pre-GFC levels.
<img src="/images/2014/10/23/oliver-oct-23-five.png" alt="">
And finally for real assets (if commercial property is a guide), as indicated earlier, the risk premium offered by commercial property relative to bonds remains about as wide as it’s ever been.
So overall, it’s hard to argue the search for yield has gone too far. That said, corrections like the one we have seen in shares and corporate debt markets during the last month are healthy in ensuring this remains the case.
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
What about the risk of an upswing in bond yields? 
The events of the last month, with renewed worries global growth and deflation, tell us that the immediate threat from higher interest rates is low. The US is closest to raising rates but global risks and a strong US dollar importing low inflation to the US could see that pushed out to the second half of next year.
Australia is under no pressure to raise rates, with sub-trend growth and low inflation, and probably won’t start raising rates till after the US and for both it will be gradual. Rate hikes aren’t even on the horizon in Europe, Japan and China.
What about the risk of slower growth? 
Slower growth is perhaps a bigger risk globally, with the global economic recovery remaining fragile. In the absence of a major external shock or a major monetary tightening, however, it’s hard to see a sharp slowing in global/Australian growth.
What to watch?
Our basic assessment is that the search for yield hasn’t yet gone too far. Key indicators to watch for signs that it has include the following:
<ul>
<li>Valuation indicators - such as price to earnings multiples and the gap between earnings yields and bond yields for shares, corporate bond yield spreads and the return premium property offers over bonds;</li>
<li>Signs global growth is becoming more synchronised and picking up and that global inflation is rising as a guide to global monetary tightening.</li>
<li>Global business conditions PMIs as a guide to whether growth is slowing again.</li>
</ul>
So far so good, but they are all worth keeping an eye on.
What does it all mean for investors?
While the yields and return potential across most assets has continued to fall, shares, non-residential property and infrastructure continue to offer better prospects than low yielding cash, government bonds and term deposits. Some value has also been returned to corporate debt following the recent back up in corporate bond yields.
Shane Oliver is head of investment strategy and chief economist at <a href="https://www.ampcapital.com.au" target="_blank">AMP Capital</a>.
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soliver-smf6LQXgW9

The chase for yield: What it really means for investors

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Tasmania has been ranked third on a global listing of leisure islands, or 'getaway' location where ultra-high net worth individuals (UHNWIs) purchase second, third or fourth homes.
The new Candy GPS Report with research by Savills explains that most leisure island real estate is at the heart of the additional home market for UHNWIs and that these purchases are “nearly always discretionary” and a result of economic conditions providing excess cash.
This does leave those markets more exposed to economic downturns, the report notes.
The research came from Savills World Research and Wealth X, based on the volume of UHNWI additional home ownership. 
Ranking first and second are the USA’s Hawaiian Islands and Martha’s Vineyard respectively. Australia took out two spots in the top 10, with Tasmania ranking third and the Whitsunday Islands are sixth. Also featuring in the top five were Spain’s Balearics and Greece’s Ionian Islands. The rest of the top 10 was made up by Italy’s Sardinia, Scotland’s Islay, Malaysia’s Pangkor and Thailand’s Koh Samui.
“Leisure islands can be "visible" or "invisible", depending on the nature of amenities and pursuits involved,” the report explains. The USA’s top two rankings are “visible” leisure islands.
The top 10:
<ol>
<li>Hawaiian Islands - USA</li>
<li>Martha’s Vineyard - USA</li>
<li>Tasmania - Australia</li>
<li>Balearic Islands - Spain</li>
<li>Ionian Islands - Greece</li>
<li>Whitsunday Islands - Australia</li>
<li>Sardinia - Italy</li>
<li>Islay - Scotland</li>
<li>Pangkor - Malaysia</li>
<li>Koh Samui - Thailand</li>
</ol>
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jduke-EHk3XBmHkn

Tasmania ranks third in global listings of island playgrounds for the ultra-rich

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Australian fast food franchise Pie Face has quietly closed six of its seven stores in New York City.
After <a href="https://www.smartcompany.com.au/growth/economy/26195-pie-face-linked-to-casino-billionaire-as-us-expansion-continues" target="_blank">its seemingly successful expansion into the US in 2012</a>, local NYC news website <a href="https://www.dnainfo.com/new-york/20141016/union-square/pie-face-suddenly-closes-nearly-all-its-nyc-locations" target="_blank">DNAinfo New York is reporting</a> Pie Face has suddenly shut its Union Square, Chelsea, Murray Hill and Midtown stores leaving only a paper sign saying catering is still available at its Hell's Kitchen outlet.
New York customers have contacted the Pie Face New York arm on Twitter saying they are disappointed with the closure, but Pie face has not responded.
“I hate when businesses shut down overnight without notice. It's like a screw you to the customers. @PieFaceUSA - I'm looking at you,” said one Tweeter.
In 2012, the pie chain received a massive boost in popularity when it was featured on the American TV show Late Show with David Letterman after its first New York store opened up around the corner from Letterman’s studio.
American-born Pie Face chief Wayne Homschek, who worked as a Wall St banker before starting the chain in Australia in 2003, <a href="https://www.smartcompany.com.au/growth/economy/26533-pie-face-chief-tells---why-a-casino-billionaire-invested--15-million-in-my-company" target="_blank">accepted a $15 million investment</a> from casino mogul Steven Wynn in 2012.
In more recent years, the franchise attempted to expand into India and New Zealand without much obvious traction, and has announced it will look to move into South Korea and the Philippines.
Pie Face has also moved into the South Australian market, stocking its pies in On the Run convenience stores – the SA version of 7-Eleven.
Jason Gehrke from the Franchise Advisory Council said the closures would be a setback to Pie Face’s international presence.
“The closure in NYC is a huge blow to the company and the prestige of the brand in the US, and is also a huge blow to the local partners who invested in the chain,” says Gehrke.
“Not only will there be a difficulty to get back into the market, they will have to completely rethink their US strategy and may need time to regroup before consider going back.”
SmartCompany contacted Pie Face, but did not receive a response prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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krobb-aCrRNnPq6D

Pie Face quietly closes up New York shops

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Two waterfront development sites in Canberra’s Yarralumla Bay have sold for a combined $1.78 million to the neighbouring Canberra Girls Grammar School.
Located on the shores of Lake Burley Griffin, Block 15, Section 17 sold for $860,000 while Block 16, Section 17 sold for $920,000.
The two sites are three kilometres from Capital Hill and five kilometres from Canberra City.
JLL managing director for ACT Andrew Balzanelli and JLL head of investment sales for ACT Greg Lyons handled the Land Development Agency offerings.
There were six registered bidders.
The Canberra Girls Grammar School (CGGS) principal Anne Coutts said the acquisition presented an exciting phase in the development as the school moves towards its 90th anniversary in 2016.
Picture of Canberra Girls Grammar School courtesy of AY Arktos/<a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/2.5" target="_blank">CC BY-SA 2.5</a>.
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Canberra Girls Grammar School buys adjoining sites

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If you are a buyer, perhaps re-think your position.
The Inner Melbourne million dollar plus market is at its strongest levels in terms or bidders, sellers and action in three years. There is no evidence of an end in sight, despite the current mainstream media’s obsession with doom.
Yes, the market may change next week, but it hasn’t yet and your buying strategies need to be in sync with the current market (if you want to buy).
The Block is not real – it’s fairy tales and it’s not a true representation of the Inner Melbourne housing market – it’s a true representation of poorly thought out buying and selling procedures in the apartment market.
Below is the real market and we think real buyers know this.
We bought four last week (two off market) and missed a young buyer's home.
<ul>
<li>All bar one had competition and we have 12 auctions and negotiations next week (double Super Saturday). 
</li>
<li>We as James Buyer Advocates are experiencing significant client demand on good homes. The market right now is incredibly strong and robust and  the average amount of bidders per auction supports that again, as it has all year. 
</li>
<li>The long-term bidder average does not lie – if its consistently over two, then the market is strong and getting stronger – it’s all about buyer depth.</li>
</ul>
When will it end?
We have no idea, but it hasn’t ended yet.
Here is our good buyer plan till Christmas:
<ol>
<li>
Consider engaging a professional buying team. Break the ‘losing cycle’ and become a buyer … of a good home. Get on board your team, one that really understands property. No, not the accountant that always says don’t do it. Yes to an accountant that actually owns property, has his or her own wealth and is successful in business. No, not a financial planner that tells you to buy off the plan or ready made investments while they are trousering a big commission. Yes to a financial planner that understands and helps build your wealth through home ownership. No to a banker who’s name escapes you. Yes to a private banker or broker whom you have a longer term relationship with. No to a buyer advocate that can’t show you 50 similar homes they have bought, unless of course you want them to “learn” on your job. Yes to a good buyer advocate. But hold on, what about all those advocate fees? A good advocate can cost 1% – the market is moving more than that each month – bought two months ago and you are in front even after the professional fee. Plus, please do not think that many of your real competitors (other buyers in your price range) are not getting professional help. 
</li>
<li>
Consider a plan that works. Many people's plan revolves around a fear of paying too much. Too much last year is 15% below what you may have to pay now. 
</li>
<li>
Arm yourself with knowledge. Understand that you are not just embarrassing yourself when you bid without knowledge at auction, but you are also leaving yourself open to buying poorly. Being back on the market reselling your home in the near future is seven times more expensive (fees, stamp duty, reselling costs, interest) than the professional fee you may pay to buy well in the first place – and what about the emotional turmoil. 
</li>
<li>
You don’t trust the selling agent – in fact you know he stretches the truth, yet you use him to bid to buy your dream home because he is ‘free’. Do you think the selling agent from another company, will be helping your selling agent, help you buy well. Are you really thinking this through?</li>
</ol>
You have three to four more weekends of good stock before February.
Self interest in above comments – yes, no doubt. Self interest for us and self interest for you. That’s very different from a selling agent – self interest for them and their selling client, no self interest for you the buyer.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
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maljames-vHwm28JUAa

Your buying strategies need to be in sync with the current market

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GUEST OBSERVATION
DIY property management seems simple – and it can be – until something goes wrong.
The reality is that not everyone has the skills, time and temperament to successfully manage their own investment, particularly one of this size and scale.
With 20 year's experience in landlord insurance, I can tell you that tenancies being self-managed by investors go pear-shaped more often than assets that are managed by a professional – they are subject to more claims.
Why? Tenants with a poor record deliberately target private landlords who don’t have access to industry databases recording people who have defaulted in the past.
Also, private landlords can be slower to see the danger signs of a tenancy that’s turning sour and may fail to nip problems in the bud.
Some are too understanding for their own good, letting unpaid rent add up and being slow to initiate eviction proceedings.
It’s not always the tenant’s fault – sometimes landlords also prompt anger by failing to live up to their obligations when it comes to repairs.
Still not convinced of the value of professional property management? Ask yourself these questions before going DIY:
<ol>
<li>Do I understand tenancy legislation? </li>
<li>Am I organised and a great record-keeper? </li>
<li>Do I know going rates in the market, and have the confidence to negotiate regular rent increases? </li>
<li>Do I have access to quality, reliable trades people? </li>
<li>Am I available to supervise trades people at short notice, if required? </li>
<li>Do I feel comfortable with the tenant having my phone number, and effectively being on call to them 24 hours a day? </li>
<li>How will I verify that tenants are who they claim to be? </li>
<li>How will I find out if tenants have previously been evicted or have a poor history? </li>
<li>Do I know the warning signs for a clandestine drug laboratory or marijuana grow house? </li>
<li>Am I organised and assertive enough to chase up late rent immediately? </li>
<li>What am I going to do to manage the tenancy if I go overseas or on holiday? </li>
<li>Could I bring myself to evict a family, or a person who has fallen on hard times? </li>
<li>Do I have the time, expertise and confidence to go to a tribunal and publicly argue my case, if necessary? </li>
<li>Will my landlord insurer cover me if I self-manage – and, if so, will the premium rise as a result? </li>
<li>How much will I save, after tax, by managing my property myself? </li>
<li>Is my time worth more, or better spent, on other priorities, once the potential stress is taken into account?</li>
</ol>
Sharon Fox-Slater is general manager of <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance, which insures more than 120,000 tenancies around Australia, and is a division of EBM Insurance Brokers.
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sfoxslater-oVy9VUHSz9

Should you go it alone in property management? 16 questions to ask yourself first

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The Real Estate Institute of New South Wales (REINSW) is urging the New South Wales state government to reconsider land taxes on Sydney's Oxford Street.
According to REINSW president Malcolm Gunning, businesses on the retail and hospitality strip are struggling after a clearway was put into place.
"In recent years there has been a significant decline in this important commercial area," said Gunning.
"Sydney and Woollahra Councils are pouring money into revitalising the strip. It is now time for the state government to recognise the problems.
"REINSW is going to ask the Valuer General to take a look at disproportionate land taxes, which need to be reduced in order to revitalise Oxford Street," he said.
"Land taxes haven't fallen like the rents have because they are based on raw land value and building potential and do not take into account the heritage conditions associated with Oxford Street."
Gunning asserts that some tenants pay land tax which is 50% of the value of their rent.
The REINSW also claims traffic pollution has increased since the clearway was implemented.
"It is essential that Oxford Street rises again," said Gunning.
Photo courtesy of J Bar/<a class="mw-mmv-license cc-license" href="https://creativecommons.org/licenses/by-sa/3.0/" target="_blank">CC BY-SA 3.0</a>.
 
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