The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

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Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

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One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

Joel Robinson

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

Sherpa Group has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at Flourish Soleira in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with Flourish Amargo, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

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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Statistics don’t lie – but they can certainly mislead if the right questions don’t get asked.
Or, from another perspective, figures don’t lie – except when liars figure – which applies to the counting of first home buyers in the market, with the exploitation of dodgy data by people with dodgy motives.
Real estate people and organisations with vested interests have succeeded in creating the illusion that first home buyers are no longer active because they can’t afford to buy. This is despite the results of the two major affordability indexes, which say the opposite.
Headlines continue to shout that the Great Australian Dream is extinct, and we have a parliamentary inquiry into the affordability issue.
There is a strong argument that today’s generation of young adults are not interested in the heavy financial commitment of a mortgage. They witnessed their Baby Boomer parents slaving over a hot mortgage while struggling with a young family, and have decided to pursue other priorities.
The evidence from surveys is that Gen Y is a restless lot, who would prefer to rent while pursuing a good lifestyle. Commitments like families and mortgages can wait.
This, apparently, is reflected in the statistics. Australian Bureau of Statistics (ABS) data suggests that the market share of first-home buyers has been dropping since 2011.
For example, the number of first home buyer commitments as a percentage of total owner-occupied housing finance in late 2011/early 2012 was around 20%. This has slowly declined to 12-13% – according the ABS figures.
But here’s the thing. During 2012-2013 most states and territories implemented building stimulation strategies. Instead of offering the grants for all types of properties, the grants were available only to first-timers who built a new home or purchased off-the-plan.
Given that most first time buyers opt for established homes rather than new ones, this had a huge impact on the numbers of buyers accessing grants. The average price differential across Australia between new and old is $70,000 and it’s well over $100,000 in our largest cities, so $10,000 grants fail to act as an “incentive” to buy new.
This means most first-home buyers no longer apply for grants because they prefer to buy an established home, which is cheaper and often better located.
This is evident in statistics from the NSW and Victorian Offices of State Revenue (which distribute the grants). In the 2012 financial year, NSW distributed 37,464 grants and Victoria 19,051; in the 2013 financial year NSW distributed 17,297 grants and Victoria 21,898; but in the 2014 financial year, the numbers dropped to NSW 7,717 and Victoria 6,115. For NSW, that’s a fall of 79% in two years and for Victoria a decline of 72% in one year.
Western Australia went against the trend by increasing from 13,959 in 2011 to 22,135 in 2013. But Western Australia still offers a grant ($3,000) for first timers buying established homes.
The fact that Western Australia, the only state which offers a grant for both new and established homes, has rising figures for first-home buyers, highlights a discrepancy between states. Why does WA have a higher percentage of first-home buyers than all other states and territories?
Many across the real estate industry believe first-home buyers remain active and have begun to query the accuracy of the statistics.
So, are the right questions being asked? Where do the statistics on first-home-buyer numbers come from? Who collects the data?
The Australian Prudential Regulation Authority (APRA) collects the data from the banks and passes it on to the ABS.
Banks generally only capture what is relevant to their own business, i.e. anything necessary to a loan application. If the loan applicant doesn’t qualify for the first-home buyers grant, the information is not gathered – so many first-home buyers are not recorded as such by the banks.
According to the APRA reporting format, which has not been updated since 2008, commitments should be classified to the category "First Home Buyers" only if none of the borrowing parties to the commitment has previously drawn down on housing finance for owner occupation. Nowhere does it say whether the house is new or established, nor whether the buyer has received any form of grant.
With the changes to grant policies across the nation, many first-home buyers who are buying an established property will not qualify for a grant and, therefore, relevant information is not being passed onto the ABS and the data is becoming skewed.
The ABS is obviously aware of this now. In its June 2014 report on Housing Finance, it advises that an investigation is under way to evaluate the robustness of estimates of loans to first-home buyers.
I expect it to discover that there are more first-time buyers out there than the official data shows.
That parliamentary inquiry into affordability will again be shown to be a waste of time and taxpayers' money.
Terry Ryder is the founder of <a href="https://hotspotting.com.au" target="_blank">hotspotting.com.au</a>. You can contact him through <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email </a>or <a href="https://twitter.com/hotspotting" target="_blank">twitter</a>.
 
 
 
 
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terryryder-YECXbqmri2

We should question the data on first home buyers

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Like a B-movie horror flick villain that refuses to die, the first-home owner grant will limp into the new financial year to haunt us all despite the Victorian Treasurer’s valiant efforts in his May budget to curtail this beast.
Yes, the $7,000 grant for established property will be phased out on 1 July. But it will be increased from $7,000 to $10,000 for newly constructed homes.
I’m no fan of grants or concessions that distort the property market. I’ve been railing against the FHOG since it was introduced back in July 2000 ostensibly to offset the effect of the GST on home ownership. In its original guise, the FHOG was a national scheme funded by the states and territories and administered under their own legislation, with a one-off grant of up to $7,000 payable to first home owners that satisfied all the eligibility criteria.
Since then, this scheme has been tinkered with remorselessly to become the Frankenstein’s monster I alluded to earlier.
The scheme is meant to make property more affordable for first home buyers. Unfortunately, experience shows that the grants don’t achieve this end.  Instead, the nominal increase in purchasing power it delivers to first home buyers transmits directly into higher prices for the properties they hope to buy.
The real beneficiaries are the vendors of properties that first timers buy. It would have been simpler if the State Revenue Office of Victoria, who administers the grant, posted the grant cheque direct to the vendor!
The fact that the grant was economic lunacy – and costly to governments’ coffers to boot – didn’t seem to bother politicians in the noughties when state governments were basking in pre-GFC budget surpluses. But now that state treasurers across the country are struggling with fiscal deficits, one by one, they’ve been winding back the FHOG.
Victoria is just the latest.  More focus is now going to providing grants for new property. At first blush this seems like a good idea. The grant has been amended so that it boosts supply – by encouraging the construction of new apartments and houses – as well as demand.
However, I am concerned that there will be serious unintended consequences. The grant will continue to distort market conditions and performance. It will artificially skew property data, especially median values, possibly enough to make them virtually meaningless if the stock level is very high.
And, most worryingly, it will encourage many first-home buyers who otherwise would have opted for existing stock to purchase new and off-the-plan properties.
Why is that problem? Well, I’m afraid that many of these first home buyers will come to regret their decision.
Let me be blunt: much of the off-the-plan property under development is usually in windy Docklands or in fringe suburbs poorly serviced by transport; many properties are poorly built and deteriorate quickly; and, ultimately, many first home buyers and investors will lose money when they come to sell these properties in a few years because of developers’ need to cover their extensive marketing costs and to extract a profit.
In short, these properties are invariably over-priced in the first place relative to what they would sell for in an open market. Further, when the first time owner goes to sell the property, they will be competing against a glut of similar properties. We all know what happens when you’re faced with a buyer’s market!
I’m hoping that this is the penultimate chapter in the grant saga, and that sanity will finally prevail and we can get politically bipartisanship to kill it off. But I’m not holding my breath.
Monique Sasson Wakelin is director at <a href="https://wakelin.com.au/" target="_blank">Wakelin Property Advisory</a>.
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msassonwakelin-pDHXgmS5wA

Slow demise of first-home owner grant schemes: Monique Sasson Wakelin

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The auctions market has ended the financial year on a solid note, with first-home buyers rushing to take advantage of federal and state-based grants before they are downgraded.
But one expert says the next financial year may not differ so much from the last, in that investors and buyers should expect a slow, drawn-out recovery rather than any short, frantic bursts of improvement.
"We're not expecting any major recovery for the Melbourne market," SQM Research managing director Louis Christopher said.
As for the rest of the country, Christopher's opinion was unwavering – most capital cities will perform over the next 12 months as they have in the past year, assuming interest rates and the dollar remain relatively stable.
"We're still expecting any recovery to be modest and moderate," he says.
According to the Real Estate Industry of Victoria, Melbourne recorded a clearance rate of 73%, compared to 69% last weekend and 55% during this weekend last year.
"The slight increase in the clearance rate this week may be due to the first-home owners grant for established dwellings coming to an end on the 30th, June 2013," chief executive Enzo Raimondo said in a statement.
Various changes are being made to state-based first home owners' grants, including in Victoria and Queensland.
Such changes mean the first home owners' market is likely to taper off over the next few months, Christopher says.
"Melbourne is likely to track Sydney's changes in that regard, meaning there was a drop off in first-home buying over the few months after those changes came into effect.
"There was also a slow and gradual build up after that period."
As for the rest of the year, Christopher says there isn't much reason to expect anything other than what we've seen in 2012-13. Melbourne is tipped to record 2-5% capital growth during this calendar year, while Sydney "is the market we're most bullish about".
"We're seeing fairly strong pricing action now," he says, with more expected in the next few months.
Canberra, however, is expected to remain under pressure, while Christopher says Brisbane is simply "treading water".
"There is no major recovery with lots of stock in the market...and that's likely to continue in the remaining half of the year."
This article first appeared on<a target="_blank" href="https://www.smartcompany.com.au/property/056271-auctions-strong-as-first-time-buyers-spend-big-for-last-minute-grants"> Smart Company</a>.
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pmcstafford-pr9eMARWoN

Victorian first home buyer's market set to taper off: SQM

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Economist and property bear Steve Keen says housing grants are a “poisoned chalice” that inflate house prices leaving first-home buyers worse off, not better off.
<a target="_blank" href="https://www.propertyobserver.com.au/trends/housing-grants-a-help-to-sell-not-a-help-to-buy-steve-keen/2013070362962?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=realitytv">Speaking from Paris</a>, Keen said government housing schemes “drag people into the market who otherwise would not be able to get in" in an interview on the Keiser Report, a program on Russian English language news channel RT.
“What it does is increase the supply of buyers," said Keen.
“It’s a 'help to sell' not a 'help to buy' because those who are flogging their properties suddenly get a whole bunch of people with money in their pockets."
His comments were made in the wake of UK chancellor George Osborne’s heavily criticised ‘Help to Buy’ scheme, which provides state mortgage subsidies.
Keen said he agreed with the likes of the IMF and outgoing governor of the Bank of England, Mervyn King that Osborne's scheme is a bad idea.
Keen referred to the Australian experience of the government introducing first-home owner grants in an effort to bring more people into the housing market, which created housing bubbles each time such schemes were introduced, made housing more unaffordable and made buyers “worse off not better off”.
“When the Australian government doubled and trebled the scheme (through the first-home owner boost which ran from October 2008 to December 2009) house prices went up 8% and 12% per annum.
“[That is] 12% more unaffordable. If you can’t control it becomes a poisoned chalice."
Keen said governments sponsoring asset price bubbles to make themselves look like good economic managers was a “perennial theme” in Australia dating right back to when Bob Hawke came to power.
“One of the first schemes he introduced in the 1980s was a first home owners grant of a few thousand dollars, which started a little mini-bubble in housing
“After the 1987 stock market crash they did it again with a much larger amount of money that also started a huge bubble.
Prices rose 20% and 30% and then they fell 20% and 30% on the other side of it.
“In 2000 it was brought back and then doubled by John Howard in 2001. Eeach time they did it, it pumped up house prices even more.
“Housing grants have become part of furniture in Australia," he added.
By comparison, before the government began introducing these schemes, Keen says average house price increases were "one half of one percent" compared to consumer price increase over a year.
After the first scheme was introduced by Hawke, the average was 4% growth per year he said.
Keen also returned to his most controversial 2008 prediction about house prices falling 40%.
“House prices were falling when I made my call that they would fall 40% over 10 to 15 years.
“That’s when the government doubled and trebled the first-home owners scheme, which I renamed the first-home owners 'vendors' scheme.
“That restarted the bubble and they kept it going until mid-2010 when house prices started to fall again.”
“House prices fall much more slowly than the stock market. They don’t have the total crash.
“The biggest crash was in the US where house price did fall about 40% over four years.
“What I had in mind for Australia was the Japanese case of a slow bleed, where prices have fallen 70% over 20 years.”
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lschlesinger-FZcF9M3vE6

Housing grants a “poisoned chalice” that create bubbles and leave buyers worse off: Steve Keen

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The Reserve Bank of Australia (RBA) touches on some interesting points in its latest Financial Stability Review, including the paradox of low interest rates.
Household debt-to-income ratios have been flat for the past eight years, but the RBA quite rightly senses a risk that low rates could see this figure busting out to new highs and looks on cautiously.
<img src="/images/2014/10/7/RBA1.jpg" alt="">
The paradox is that low interest rates have made life pretty easy going for existing owners of property on variable rate mortgages, with the interest payments-to-income ratio falling from 13% to just 9%
Mortgage buffers
The RBA notes that aggregate mortgage buffers are at remarkably high levels, the equivalent of "more than two years" of scheduled repayments. A big reason for this, as I've experienced myself, is that banks have frequently left mortgage repayment amounts on auto-pilot despite declining mortgage rates:
"Households' ability to service their debt has been aided by ongoing low interest rates. The proportion of disposable income required to meet interest payments on household debt has stabilised accordingly, at around 9%.
"Households continue to take advantage of lower interest rates to pay down their mortgages more quickly than required. The aggregate mortgage buffer – balances in mortgage offset and redraw facilities – has risen to be around 15% of outstanding balances, which is equivalent to more than two years of scheduled repayments at current interest rates.
"Prepayment rates and the proportion of borrowers ahead of schedule on their mortgage repayments are also high according to liaison with banks. Part of this prepayment behaviour has been due to some banks' systems not automatically changing customer repayment amounts as interest rates have declined, while in many cases households have not actively sought to reduce their repayments.
"This might be a sign that household stress is currently limited. The household saving ratio, although trending down a little lately, remains high at just under 10%. Households' aggregate balance sheet position has continued to improve in recent quarters: real net worth per household is estimated to have increased by 4% over the year to September 2014."
Rental market
With dwelling prices rising we might expect to see rental vacancies increasing and yields declining. Historically speaking, however, Sydney's vacancy rate remains low despite pockets of forthcoming oversupply. RBA again:
"Despite the activity and housing price inflation in the Sydney and Melbourne property markets, rental yields have not declined to a significant extent and vacancy rates in these cities remain fairly low."
<img src="/images/2014/10/7/RBA3.jpg" alt="">
True, but vacancy rates are elevated and likely to rise in inner city Melbourne apartments as the RBA observes.
Household financial stress?
Generally 90 day+ loan arrears at now at very low levels at only 0.5 percent, but there are some indicators of household financial stress in Victoria. Back to the RBA:
"Aggregate indicators suggest that household financial stress is generally low, despite the increase in the unemployment rate over the past year. The share of banks' housing loans that are non-performing has declined for both owner-occupiers and investors since reaching a peak in the middle of 2011.
"Data on securitised housing loans show that the share that are 90  days or more past due has declined over the year for most states, coinciding with lower interest rates and rising housing prices. In Victoria, however, loan performance has deteriorated slightly."
<img src="/images/2014/10/7/RBA2.jpg" alt="">
The RBA notes instances of mortgage stress and arrears in "outer west and north Melbourne".
Interest rate rises?
So it's largely happy days for homeowners at present. But what about interest rate increases?
Previously we have covered off the possibility here that interest rates might yet fall further as the mining construction boom tails off.
So, what could lead to hikes? Mostly we'll be looking at inflation and the jobs market.
The TD-MI inflation gauge printed flat again for the month, leaving this particular measure sliding towards the bottom of the 2-3% range (now at just 2.2%) and suggesting little in the way of inflationary pressures or a pressing need to hike interest rates.
The declining Aussie dollar could well wash through a little more tradables inflation in due course, but sustained inflationary pressure would likely need the labour market to pick up, since there currently appears to be a fair amount of slack therein.
<img src="/images/2014/10/7/4br-tradeinf-small.gif" alt="">
Some heartening news on that front today with ANZ job adverts recording its fourth consecutive monthly gain to hit its best reading in two years.
Could this suggest that the labour market is picking up as was suggested here by last month's figures? Maybe! The next round of Labour Force figures on the 9th of this month is very eagerly anticipated for all of the above reasons.
In any case, interest rates will be very much stuck on hold today at 2.50%. It seems likely that prudent households will have at least another year of low rates ahead to keep building up those mortgage buffers.
 
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pwargent-M4siyDbqQY

Reserve Bank muses on housing stress

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The Australian Bureau of Statistics (ABS) released its Lending Finance data this week, and it was a pretty weak reading after a couple of apparently very strong months for commercial lending.
Total new lending fell by 10.3% in August from the previous month with a sharp 16% drop in commercial lending the driver of the result.
Owner occupier housing loans fell by 2% in the month of August on a seasonally adjusted basis, with most states seeing activity fall in the month (although notably not Queensland).
Note that the ABS classifies property investor loans separately from owner occupier loans and thus these come under the commercial lending header in the chart below.
<img src="/images/2014/10/15/1.jpg" alt="">
Year on year total new lending remains 11% higher, which is promising, and the rolling 12 monthly figures about do show that the overall trend has been a good 'un.
However, there is no getting away from the fact that August was a fairly rubbish result for commercial and business lending and quickly quells the enthusiasm of the markets from last month which saw some excitable claims that interest rates will be heading up imminently.
In short: No, they won't be.
Property investor loans
As for those property investor loans, in aggregate, property investor loans were pretty much flat in August on a seasonally adjusted basis.
On a trend basis, investor loans were down in all states, as one might expect. On a rolling 12 monthly basis, however, property investor loans across all of the main states continued to rise, with New South Wales and Victoria marching on to new heights.
New South Wales (read: Sydney) loans are a whopping 42.5% higher year-on-year on a rolling annual basis.
<img src="/images/2014/10/15/2.jpg" alt="">
Just looking at the straight raw monthly property investor loan data, New South Wales and Victoria are the clear standouts with 30% and 28% increases respectively.
Elsewhere activity has been softer, although evidently property investors are becoming more active in Queensland. Property investor activity has been solid in Western Australia and flat in South Australia.
<img src="/images/2014/10/15/3.jpg" alt="">
Macro-pru
Overall, it's not yet quite clear what this means for so-termed macro-prudential regulation to cool the investor market.
Clearly with property investor loans up very strongly over the past year, macro-prudential measures from the regulator (APRA) are very much in play in order to keep the proportion of lending to investors under some kind of check.
The August data taken by itself was far from alarming so there may be no knee-jerk announcements or reactions while the Reserve Bank and APRA await another month or two of data.
It's impossible to second guess these volatile data sets or indeed the actions of the regulator, although one generally gets the sense that dramatic macro-prudential measures are not really a preferred option.
Wayne Byres of APRA made the point the other day that although "people love the term" there is "nothing really new" about macro-prudential measures, which sort of implied moderation (to me at least).
I do just note in passing that AFG's more timely data for September showed record transactional activity for New South Wales as well as 49.7% investor loans.
<img src="/images/2014/10/15/4.jpg" alt="">
The Sydney property market marches on to new heights, and unlike in the previous boom cycle of a decade ago higher interest rates are not anywhere to be seen on the horizon in order to slow the market down (and vacancy rates remain much lower today too) - this cyclical boom will have to die of all age and of its own accord or be slowed by regulation.
 
 
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Sydney's property market reaches new heights

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A preliminary auction clearance rate of 78.0% was recorded across the combined capital cities this week having increased from 77.3% last week. There were 1,777 auction results reported this week with a total of 2,205 scheduled auctions showing that auction volumes have remained virtually unchanged when compared to the previous week (2,268). In comparison, over the same week last year 66.6% of the 1,991 homes taken to auction sold.
<a href="/images/2015/06/29/shana1.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2015/06/29/shana1.jpg" alt="" width="820" height="620">
The preliminary auction clearance rate across Melbourne was 78.5% this week, down from the previous weeks final result of 79.3% and stronger than at the same time last year (68.3%). So far this year, Melbourne’s weekly auction clearance rate has been, on average, 10.6 per cent higher than over the comparable week one year ago. Across Melbourne’s individual sub-regions, the strongest preliminary clearance rate this week was across the North East region at 85.8%, followed closely by the Inner East region where the preliminary clearance rate was 85%.
 
<img src="/images/2015/06/29/20150628-Melbourne.jpg" alt="" width="796" height="539">
There were 887 Sydney homes taken to auction this week and a preliminary clearance rate of 83.5% across 747 results. Over the previous week, the final auction clearance rate was 82.4% with 862 auctions held across the city. At the same time last year, 71.1% of the 861 homes taken to auction recorded a successful result. This week, the strongest sub-region performance across Sydney’s sub-regions was the Ryde region, with 90.6% of the reported results clearing at auction.
<img src="/images/2015/06/29/20150628-Sydney.jpg" alt="" width="811" height="556">
Brisbane’s preliminary clearance rate was 51.1% this week, compared to 52.2% last week and 42.2% at the same time last year. Across Brisbane, a total of 140 auctions were held this week which is higher than last week (128), but lower than at the same time last year (153).
<img src="/images/2015/06/29/20150628-Brisbane.jpg" alt="" width="801" height="539">
 
Adelaide hosted 81 auctions this week and across the 48 reported results, CoreLogic RP Data’s preliminary auction clearance rate is 70.8%. Last week, Adelaide’s clearance rate was 63.5% across 83 auctions in the city, while at the same time last year 62.7% of the 79 homes taken to auction were sold.
<img src="/images/2015/06/29/20150628-Adelaide.jpg" alt="" width="844" height="566">
For Perth, the number of homes taken to auction this week was 29, less than last week (47) and last year (39). Meanwhile, Perth’s clearance rate of 57.1% this week was higher than last week (38.9%) and last year (50.0%.
Across Canberra 72 homes were taken to auction this week and the preliminary clearance rate across 32 auctions was 81.3 per cent.
There were 22 auctions across Tasmania this week, with 10 successful results out of the 20 reported.
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National auction clearance rate rises: CoreLogic RP Data's Shana Miller

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The most common “common denominator” of boom property markets over time is an elevated level of spending on infrastructure.
It’s not coincidence that Sydney has been having its strongest market in 12 years at a time when the level of infrastructure development is the highest it’s been in 12 years. It’s not the only reason but it has played a significant role.
And as Sydney starts to shows signs of beginning the fade-out that’s inevitable after three years of heightened activity and prices, investors seeking long-term growth are well advised to follow the infrastructure trail.
Real estate that lies in the path of progress usually grows at superior rates.
The property cycle in Sydney has reached the point where investors need to be extremely careful with their locational choices.
The Sydney market has been percolating for three years and most locations have recorded significant price growth, including double-digit annual increases in median prices across much of the Sydney metropolitan area.
This scenario has meant that owning real estate almost anywhere in Greater Sydney has delivered good capital growth.
But it will not be so simple moving forward. There are already indications that the Sydney boom is beginning to fade. It was inevitable that this would occur and it was most likely to happen in the third year of heightened market activity – i.e. during 2015.
Our latest analysis of sales data shows that there are fewer growth suburbs (in terms of sales activity) than before, which is an indicator that the boom may be fading. I do not expect any dramatic decline, but the high level of price growth of the past 2-3 years is unlikely to continue.
I note that other research sources, including BIS Shrapnel and National Australia Bank, have also forecast that the rate of price growth in Sydney will decrease over the next year or so.
Investors now need to be selective to achieve capital growth – and the best strategy is to focus on locations where spending on new infrastructure, particularly transport infrastructure, will be a catalyst to real estate demand. 
Currently, the outer reaches of the metropolitan area are the market leaders in Sydney. Penrith, Camden and Campbelltown – as far as you can get from the CBD and still be in Greater Sydney – have the most upwardly-mobile markets.
Some Top End suburbs remain vibrant. But, increasingly, we are seeing the biggest growth in the middle and bottom tiers of the market. This continues a process which evolved throughout 2014, with the millionaire suburbs a little less prominent and the more affordable areas rising. 
Western areas are prominent, including the far south-west of the Sydney metropolitan area where both the Campbelltown and Camden LGAs still have numerous growth suburbs, the Liverpool LGA and the Rouse Hill precinct in the far north-west. 
These are all areas which will benefit from infrastructure spending, including projects currently under construction and those in the planning stages.
In some instances, the level of new transport infrastructure is quite exceptional. Take the north-west precinct centred on the emerging growth region of Rouse Hill. This area is an obvious and direct beneficiary of the $9 billion North west Rail Link, now under construction. 
Currently the main transport link to this precinct is the M2 motorway, where a significant upgrade was recently completed.
Other accessibility improvements are being made with the upgrade of Schofields Road,linking Windsor Road at Rouse Hill to Railway Terrace at Schofields. The two-lane rural road will be transformed into a major east-west connection between Windsor Road and Richmond Road over three stages costing about $200 million.
Stage one opened to traffic in July 2014. Stage two should be complete in early 2017 while stage three remains in the planning phase.
Richmond Road has also undergone a recent $46 million upgrade.
The north-west region of Sydney will benefit from the M9 Orbital road, which will connect it to the far south-west of Sydney. The M9 will link Camden in the south-west to Penrith in the west and continue north to Windsor, a near neighbour of Rouse Hill.
The link is in the early stages of planning, with $4.6 million set aside in the FY2015 State Budget for a feasibility study on the construction of the M9.
The north-west region will also benefit from the NorthConnex motorway, the $2.6 billion project designed to address the missing link between the southern end of the M1 Pacific Motorway at Wahroonga and the M2 motorway at its Pennant Hills Road interchange.
Spanning 9km, NorthConnex will be the longest road tunnel project in Australia. Construction of the tunnel is expected to be completed in 2019. It was announced in February 2015 that Lend Lease had won the contract to construct the motorway.
These infrastructure projects are part of the mix that will make the north-west a growth market long-term, beyond the current boom.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
 
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Property investors must follow the infrastructure trail: Terry Ryder 

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Two property groups have teamed up to debunk media myths – but have actually added to them.
In seeking to dispel misconceptions about negative gearing and capital gains tax, the Property Council of Australia and the Real Estate Institute of Australia have added to the great seething mass of misinformation about real estate.
They have also missed a clear opportunity by failing to address two of the biggest arguments in favour of negative gearing and other investment incentives. 
That’s a shame. The media hysteria around negative gearing and the CGT “discount” needs a strong and coherent response from the real estate industry.
The PCA and the REIA have sought to provide that by asking a consultancy group to put together an evidence-based examination of the issues. To a certain degree it’s been a worthy exercise because the report presents facts and reasoned analysis, in contrast to media treatment of the issues.
It provides cogent responses to some of the lies about negative gearing, using official figures to show that this is not a tax benefit to the rich, nor is it a massive burden to the Federal Budget with no benefits to society. It shows that investors do indeed contribute to the creation of new housing supply and therefore assist in making homes more affordable. 
But it adds to the problem by reinforcing the notion of a runaway national property boom with soaring prices. It refers frequently to the “current booming residential property market”, belief in which has caused the lunatic fringe to target the industry with a sustained series of irrational attacks.
It also reinforces the greatest myth in Australian real estate – the claim that a national housing shortage exists. It’s poor form by these groups to self-righteously claim to be debunking other people’s myths while re-stating their own equally-fallacious furphies.
The PCA and REIA have also failed themselves and their industry by missing the opportunity to make two of the strongest arguments in favour of investment incentives like negative gearing.
The report examines how much negative gearing costs Budgets but doesn’t consider how much other revenue would be lost if negative gearing was disallowed. If this incentive to investment was removed and Australians stopped buying investment properties (and other forms of investment which have negative gearing provisions), other revenue streams would reduce, including stamp duty (State Governments would be screaming from the high heavens), land tax and capital gains tax. 
Given that the total tax take from the property industry is over $70 billion per year, and the amount claimed in negative gearing benefits is a tiny fraction of that, what would be the overall long-term impact to all government budgets – state as well as federal – if negative gearing ended?
To my knowledge no one has addressed this because everyone is looking at the issue from their own narrow viewpoints and the big picture has been lost.
But there is a bigger issue not discussed in this “debate” – and I couldn’t find any reference to it in the REIA/PCA report. My contention is that the Federal Budget would be a massive loser long-term if negative gearing was disallowed.
Here’s why. The biggest problem for the Budget is the mounting cost of welfare, notably pensions paid to retired people. The problem will get considerably worse, because of our ageing population. Successive Governments have told Australians they have to invest to provide for their own retirement years, because the nation cannot afford to fund them with pensions.
The nation needs to provide incentives to invest. Negative gearing it one of them – and it applies to other forms of investment including shares, businesses and artworks, as well as to real estate.
If we remove negative gearing, it will have to apply across all investment vehicles, not just to real estate. It’s a reasonable expectation that if the incentives are removed, many people will not invest. They will stagger into retirement with a small amount of superannuation and a need to claim the pension. 
A small short-term saving to the Federal Budget will result in a major long-term loss.
The anti-gearing attack is based on the claims that it inflates prices and damages government budgets. There is no evidence that negative gearing results in rising prices, because it’s impossible to measure. 
What we can say with certainty that we currently have negative gearing in place and prices are not rising strongly in any of our major cities except Sydney. If negative gearing inflates prices, why is there no price growth in Perth, Darwin or Canberra, and only muted growth in Brisbane and Adelaide?
Another thing we know, from the experience of the last time negative gearing was disallowed (in the 1980s), is that it results in higher residential rents.
The true impact on government budgets will not be known until someone does a proper study which includes the impact on other forms of real estate revenue if people stop buying investment properties (and other types of investments, including shares) and those who currently own them sell them to home buyers.
My belief is that there would be a net loss to state and federal budgets in the short-term and a massive cost in the longer-term because there would be considerably fewer self-funded retirees. 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
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Property groups adding to market myths: Terry Ryder

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Hello Margaret, I am currently seeking (with my partner and my parents) to purchase land and put two dwellings onto it. The land we are looking at is greater than two acres with the houses approximately 200 square meters +. we are thinking sub diving but We are unsure of how to best address this and the processes involved as so many people tell you different things. Are you please able to provide us with an insight into the best was to approach this? Kind regards,
 Ian
 
Hi Ian,
Your first port of call will be to the local governing body, the council, to find out their individual policy on subdivision.  It's useful to note here that, while all local councils subscribe to their state's planning rules, each one will have different local rules surrounding what you can and cannot subdivide.  These rules will relate to the original zoning of the block, minimum lot sizes allowed, and a  whole host of other things.  For example, in some areas, apparently residential land may actually have a rural or semi- rural zoning, and this would mean that you may not be able to further subdivide at all, while in others you may be able to make this 2 acre block into two x one acre blocks, or even more. If the current zoning allows the subdivision you are after, you can commence, if it does not then you need to seek the council's advice around your chances of having that original zoning amended to allow the subdivision you want. A frank and open discussion with the local council should give you a good idea of what the current zoning is and their attitude to the plans you have for the land. Once you know what you are allowed to do, it's my advice that you contact a local town planner for phase two. A town planner will be able to clearly advise you on whether your ideas for this subdivision will progress smoothly through council, whether you face objections which may be overcome, or whether the entire idea is so far out of what is allowed that you have no hope. It's a worthwhile expense to have this feasibility study done as it could save you not only a lot of money, but time in satisfying the lengthy progress of seeking subdivision approval, only to find that your proposal is rejected. If the planner agrees that you have a hope then they will also oversee the obtaining of the required surveys, site and engineering plans. Remember that the town planner's fees will be on top of the fees that you pay each of these independent contractors. I have found that town planners usually know the rules intimately, and many have previously worked for council, so they are in the best position to develop a proposal with the greatest chances of success. I want to point out that the costs of subdividing are rarely accurately able to be forecast - in other words, whatever you think you will pay for all of this is likely to be so far below what you will actually end up paying that you will be surprised and possibly a little stressed out by the resulting project cost. These potential costs include, but are not limited to: drainage and sewerage, connection of services, access driveways if they are needed, cutting and levelling to prepare the site for building, potential retaining walls, connection of services, drafting fees, application fees, surveys and reports, environmental studies, permit fees, council contributions... the list goes on.  You will need to fund all of these costs yourself, and it's likely that such fees cannot be included in any bank loan you plan to get for the construction. My advice is to prepare a complete list of all possible costs with the guidance of the town planner, and then add at least 20% to the bottom line. You should also include what you believe to be the total costs of building the houses - and don't go by the advertised prices of houses built by the major project home builders.  My recent experience with this saw a property with an advertised price of $290,000, which purportedly included site costs, end up at a final price of $450,000, and this did not include much in the way of upgrades to the tile allowances and basic provisions - in my opinion project home building is a total rort that you only discover after you have signed the contract. If you can get a good understanding around what the homes will cost you to build, and add this to your projections on the subdivision costs, you'll then know if all the headaches of subdividing are actually worth it in the end. Being forewarned is being forearmed, so it's well worth your time to spend a great deal of time figuring all this out before committing to the deal. Have a property question?     <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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