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


Joel Robinson

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

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


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

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


Bottega House secures landmark riverfront site in St Lucia 

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


SIERA kicks off construction at Northcliffe tower Exhale

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


Eastern Suburbs buyers snap up ESTE Little Bay apartments

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


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

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

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


Every First Home Owner Grant for new property by state

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


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

Staff Writer

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

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


alisonwarters@gmail.com

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

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


Ellen Walker

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

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


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

<html><body>
<p><span>The Australian Bureau of Statistics (ABS) released its demographic data for the September 2014 quarter last week. The data showed that over the quarter, Australia’s population was recorded at 23.581 million persons having increased by 1.5% or 354,605 persons over the past year.</span></p>
<p><span><img class="aligncenter size-full wp-image-4440" src="https://blog.corelogic.com.au/wp-content/uploads/2015/03/Chart-13.jpg" alt="Chart 1" width="500" height="184"></span></p>
<p><span>The increase in population over the past year was actually the lowest increase in national population over a year since the 12 months to December 2011. Looking at the components of the national population increase, natural increase (births minus deaths) accounted for a 150,721 person increase in population and net overseas migration contributed to a 203,884 person increase. </span></p>
<p><span>The 150,721 person natural increase was the lowest annual increase since the 12 months to March 2007 while the additional 203,884 persons due to net overseas migration was the lowest since September 2011. As the first chart shows the sharp slowdown in net overseas migration in particular is having a big impact on the overall national rate of population growth.</span></p>
<p><span><img class="aligncenter size-full wp-image-4441" src="https://blog.corelogic.com.au/wp-content/uploads/2015/03/Chart-22.jpg" alt="Chart 2" width="500" height="190"></span></p>
<p><span>Looking at population growth across the states, the annual increase in population was greatest in New South Wales (106,365), Victoria (102,021), Queensland (69,423) and Western Australia (53,691). Annual population growth was much lower over the year in South Australia (14,303), Australian Capital Territory (4,403), Northern Territory 2,765) and Tasmania (1,602). Over the past year, 58.8% of total population growth occurred in NSW and Vic. </span></p>
<p><span>If you add Qld and WA, those four states account for 93.5% of total national population growth. In terms of the rate of annual population growth, it is currently strongest in WA (2.1%), Vic (1.8%), Qld (1.5%) and NSW (1.4%). Elsewhere, the rate of annual population increase was recorded at 0.9% in SA, 0.3% in Tas, 1.1% in NT and 1.2% in ACT.</span></p>
<p><span>Although the population of each state is continuing to grow, the rate of growth has slowed across the board.</span></p>
<p><span> In NSW the annual increase in population was the lowest since June 2013, in Vic it was the lowest since March 2013, in Qld it was its lowest since September 2001 and in WA it was at its lowest level since September 2010. </span></p>
<p><span>Across the remaining states and territories the rate of population growth in SA was its lowest since September 2011, in Tas it was its lowest since March 2014, in NT it was higher than the previous quarter but lower over the year and in ACT it was at its lowest level since September 2006.</span></p>
<p><span>If we look at the components of population growth at the state level we get even further insight into the trends taking place. </span></p>
<p><span><img class="aligncenter size-full wp-image-4442" src="https://blog.corelogic.com.au/wp-content/uploads/2015/03/Chart-32.jpg" alt="Chart 3" width="500" height="182"></span></p>
<p><span>Natural increase is basically a function of the overall population size and as a result natural increase is much greater within the largest states. Over the 12 months to September 2014, the natural increase was recorded at 43,069 persons in NSW, 36,794 in Vic, 34,603 in Qld, 6,932 persons in SA, 21,210 persons in WA, 1,503 persons in Tas, 2,882 persons in NT and 3,706 persons in ACT.</span></p>
<p><span><img class="aligncenter size-full wp-image-4443" src="https://blog.corelogic.com.au/wp-content/uploads/2015/03/Chart-42.jpg" alt="Chart 4" width="500" height="183"></span></p>
<p><span>Turning to net overseas migration, overseas migrants are finding NSW and Vic the most attractive states in which to settle. Over the 12 months to September 2014, 62.0% of the net gain from overseas migration was recorded in NSW and Vic. Across the individual states the net overseas migration was greatest in NSW (69,601), Vic (56,772), WA (32,190) and Qld (28,878). Across the remaining states and territories net overseas migration was recorded at: 10,304 in SA, 1,065 in Tas, 3,266 in NT and 1,798 in ACT. NSW and Vic have always attracted the greatest number of overseas migrants however, as the chart shows the gap has widened significantly over recent quarters.</span></p>
<p><span><img class="aligncenter size-full wp-image-4444" src="https://blog.corelogic.com.au/wp-content/uploads/2015/03/Chart-52.jpg" alt="Chart 5" width="500" height="182"></span></p>
<p><span>The profile of interstate migration has also changed significantly over recent years. Qld has historically been the powerhouse in terms of interstate migration however, Vic has now taken that mantle. Over the 12 months to September 2014 only Vic (8,455), Qld (5,942) and WA (291) recorded positive net interstate migration. On the flipside, each of NSW (-6,305), SA (-2,933), Tas (-966), NT (-3,383) and ACT (-1,101) recorded a net loss of residents to the other three states. This data set is published from 1981 onwards and over that time NSW has always recorded a net loss of residents to other states and territories however, the outflow is currently at a record low. In Vic, the inflow eased slightly from a record high over the previous quarter. Across the other states and territories, Qld net interstate migration is hovering around the lowest level on record, WA interstate migration is at its lowest level since September 2003 and the outflow of residents to other states and territories in NT is at a record high.</span></p>
<p><span>The data highlights an overall slowing of the rate of population growth which will undoubtedly have an impact on the wider economy. Economic growth is slower than it has typically been over the past 2 decades and is extremely weak on a per capita basis, lower population growth may exacerbate the slowing of economic growth. Dwelling approvals and construction are at record high levels, as we know over the past decade there hasn’t been an ample supply of new housing. The heightened level of construction will go some way to alleviating housing shortages however, it would take a number of years of heightened construction to totally rectify the shortage.</span></p>
<p><span>Looking at the data, the rate of population growth has slowed and the fall has been most noticeable across net overseas migration. Those migrants who are coming to Australia are favouring settling in NSW (Sydney) and Vic (Melbourne). This is creating further demand for housing in these cities, so too is the fact that Vic now has the highest net interstate migration of any state and the outflow of residents from NSW is at a record low level. </span></p>
<p><span>Given this, it is easy to see the impact demographics are having on the housing markets and why Sydney and Melbourne are seeing much greater housing demand and housing value growth. Fewer people are leaving those cities, more people are coming from interstate and most coming from overseas are choosing to settle in our two largest cities. On the other hand population growth has slowed significantly in other capital cities, fewer residents are leaving NSW and Vic to settle in these states and territories and they are attracting fewer overseas migrants.</span></p>
<p><span>With population growth now showing a consistent slowdown since the end of 2012 and new housing supply showing a consistent increase since late 2011, the gap between housing supply and demand has significantly narrowed. It is reasonable to assume that higher supply levels and lower housing demand will eventually dampen the exuberant housing market conditions that are so evident in Sydney and to a lesser extent in Melbourne. It is important to note that to-date the supply-side response has been nowhere near as strong in Sydney as it has been across most other capital cities.</span></p>
</body></html>

ckusher-ujnxiKuFQs

The rate of population growth remains strong but continues to slow: Cameron Kusher

<html><body><div id="post-body-5899603589334484546" class="post-body entry-content">
<div>It has long been apparent that since 2005 Sydney has not constructing enough dwelling stock to keep pace with the city's <a href="https://petewargent.blogspot.com.au/2015/03/help-commentary-on-demographics-and" target="_blank">burgeoning population growth</a>, which would inevitably lead to a surge in prices.</div>
<br><img src="https://1.bp.blogspot.com/-Qyzz354APPQ/VRPWZSpyqyI/AAAAAAAAT-o/RgOP6BmiWes/s640/Dem9.jpg" width="640" height="246"><br><br><div>Only from 2014 has this finally begun to be addressed, by <a href="https://petewargent.blogspot.com.au/2015/01/record-high-for-dwelling-commencements" target="_blank">construction ramping up</a> to a pace somewhat more appropriate for the massive and ongoing surge in headcount.</div>
<div> </div>
<div><img src="https://3.bp.blogspot.com/-z8YzjlNHmbg/VLfEY8cprII/AAAAAAAASd8/ejl6pzwobL0/s640/AA7.jpg" width="640" height="271"></div>
<div> </div>
<div>However, it should be emphasised that <a href="https://petewargent.blogspot.com.au/2015/03/help-commentary-on-demographics-and" target="_blank">data released last week</a> showed the population growth of New South Wales is still tracking at 106,400 per annum, which in absolute terms is the greatest population growth in the country. </div>
<div> </div>
<div>By the time the Q4 2014 data has washed through, it seems likely that Greater Sydney's population increased by close<span> to <span>~</span>90,000 persons in 2014.</span>
</div>
<br><strong>Housing finance soaring</strong><br><br><div>Contrary to what you might think, <a href="https://petewargent.blogspot.com.au/2015/03/housing-finance-commitments-burst" target="_blank">my analysis</a> of the latest <a href="https://petewargent.blogspot.com.au/2015/03/housing-finance-commitments-burst" target="_blank">Housing Finance</a> data showed that the number of owner occupiers buying into the Sydney market presently remains well below the levels seen in the preceding boom period (and in population-adjusted terms today's figures would be comparatively lower still).</div>
<div> </div>
<img src="https://1.bp.blogspot.com/-9aPwmEZpiQE/VP-UY7zQfPI/AAAAAAAATsI/aTiAlvbEI3k/s640/HF3.jpg" width="640" height="260"><br><br><div>However, what is certainly the case is that since the middle of 2013 the prices that Sydney homebuyers have been prepared to pay have been rising very sharply.<br><br>
</div>
<img src="https://3.bp.blogspot.com/-NXRIMoAFWjo/VP-UZ6Sn29I/AAAAAAAATsc/boVxqziPyD8/s640/HF4.jpg" width="640" height="263"><br><br><div>Meanwhile, investors became wise to the supply shortage and began piling into the market in <a href="https://petewargent.blogspot.com.au/2015/03/sydney-record-high-investor-loans" target="_blank">record numbers</a>. The volume of investor loans is now breaking <a href="https://petewargent.blogspot.com.au/2015/03/sydney-record-high-investor-loans" target="_blank">new highs by the month</a>.</div>
<br><img src="https://3.bp.blogspot.com/-8ckLfm5geVY/VQJEXp9qZsI/AAAAAAAATvY/9w_Mn0Y1CxA/s640/Loans1.jpg" width="640" height="261"><br><br><strong>Stock levels remain muffled</strong><br><br><div>Despite rising prices, data compiled by <a href="https://sqmresearch.com.au/" target="_blank">SQM Research</a> has shown that the level of stock on market remains below where it was a year ago, and far beneath the stock on market levels of the only equivalently sized Antipodean city.</div>
<br><div class="separator"><a href="https://1.bp.blogspot.com/-7IvMpCuJXio/VRcVTXTmesI/AAAAAAAAUB8/Ek4YKFQzUss/s1600/SQM%2Bsom.jpg"><img src="https://1.bp.blogspot.com/-7IvMpCuJXio/VRcVTXTmesI/AAAAAAAAUB8/Ek4YKFQzUss/s1600/SQM%2Bsom.jpg" width="640" height="260"></a></div>
<br><div>We are now at last beginning to see the first impacts of new developments coming online, with a furt<span>her <span>~</span>25,000</span> apartment approvals for Sydney in the past 12 months, and <a href="https://petewargent.blogspot.com.au/2015/01/record-high-for-dwelling-commencements" target="_blank">dwelling completions</a> also just beginning to hit their straps.</div>
<br><img src="https://1.bp.blogspot.com/-ZD2OaSeqgHA/VPUtgOVuliI/AAAAAAAATfI/uoYdFeE_voI/s640/approvals1.jpg" width="640" height="270"><br><br><span>At the present time vacancy rates in Sydney remain significantly lower than where they were in 2004 at the end of the preceding boom period.</span><br><br><div class="separator"><a href="https://4.bp.blogspot.com/-QWGY4ErVhvQ/VRcVTWnxWDI/AAAAAAAAUB4/_7ftk2qsucA/s1600/SQM%2Bvr.jpg"><img src="https://4.bp.blogspot.com/-QWGY4ErVhvQ/VRcVTWnxWDI/AAAAAAAAUB4/_7ftk2qsucA/s1600/SQM%2Bvr.jpg" width="640" height="262"></a></div>
<div class="separator"> </div>
<span>However, vacancy rates are finally being nudged higher around a few key construction hubs, which will put upwards pressure on apartment vacancy rates and an equivalent downwards pressure on unit rents.</span><br><div> </div>
<div>These include certain suburbs in the inner west (Erskineville), the inner south (Mascot, Green Square), north Sydney (Chatswood, North Sydney), and the surrounds of Olympic Park (Homebush Bay, Rhodes), to name a few.</div>
<br><div>For all that, we do need some perspective here.<br><br>Nationally, building approvals have <a href="https://petewargent.blogspot.com.au/2015/03/building-approvals-smash-record-high" target="_blank">smashed an all-time record high</a> at more than 200,000 on a rolling annual basis. Of these, Greater Sydney has approved 25,440 units and 13,337 houses in the past 12 months. </div>
<div> </div>
<div>That's a jolly good start. Yet even if every single one of those 38,777 approvals makes it through to completion - which they won't - then in aggregate even this will barely make a dent in Sydney's inherent supply shortage.</div>
<div> </div>
<div>Sure, there are doubtless dozens of vacant apartments up for rent way out at Australia Avenue. But what impact will this have on what is happening in the more popular established suburbs? Probably somewhere close to zilch, because of the diminished level of <a href="https://petewargent.blogspot.com.au/2013/11/planning-land-prices-and-house-prices" target="_blank">substitutability</a>.<br><br>It has been estimated that Sydney needs some 130,000 new dwellings. I'm not so sure about that, but I do know that it will take more than a few strong months of building approvals to redress an imbalance which was nearly a decade in the making.</div>
<br><strong><span style="text-decoration: underline;">Dwelling prices rising</span></strong><br><br><div>Unsurprisingly, CoreLogic-RP Data records Sydney home values as rising strongly. Its "<a href="https://www.corelogic.com.au/research/rpdata-corelogic-home-value-index" target="_blank">Daily Home Value Index</a>" has historically tended to record a mid-year dip which invariably leads to misplaced excitement, so we might expect to see prices on this chart dwindle across the next month or two.</div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-VxkwhIfBYOI/VRdUEcCW4SI/AAAAAAAAUC0/gtS3s15gLGs/s1600/RPD.jpg"><img src="https://3.bp.blogspot.com/-VxkwhIfBYOI/VRdUEcCW4SI/AAAAAAAAUC0/gtS3s15gLGs/s1600/RPD.jpg" width="640" height="248"></a></div>
<br><div>This weekend was the busiest auction weekend ever in Sydney with more than 1,100 properties scheduled to go under the hammer ahead of the traditional Easter break.</div>
<div> </div>
<div>All the way back in <a href="https://petewargent.blogspot.com.au/2013/08/how-white-hot-can-red-hot-sydney-market" target="_blank">August 2013</a> Australian Property Monitors (now under the Domain banner) reported that the auction market had shifted seamlessly from "red hot" to "white hot".</div>
<div> </div>
<div>This weekend's preliminary result busted all previous records with a massive 87.5 percent clearance rate reported. Domain circumvented the auction heat/pigment conundrum by simply declaring the market as the hottest it has ever seen. The <a href="https://news.domain.com.au/domain/real-estate-news/sydney-achieves-highest-clearance-on-biggest-auction-day-20150328-1m9vzq" target="_blank"><em>Sydney Morning Herald</em> reported</a>:</div>
<div> </div>
<div><span><em>"The Domain Group senior economist, Dr Andrew Wilson, says he's "absolutely astonished". "This could not have been rationally predicted – the highest clearance rate on the biggest auction day ever. This is the hottest of hot auction markets ever."</em></span></div>
<div><span><em> </em></span></div>
<div>
<span>The good Doctor Wilson has <a href="https://doctorandrewwilson.blogspot.com.au/" target="_blank">courted a little controversy</a> with the introduction of his divisive "<a href="https://doctorandrewwilson.blogspot.com.au/" target="_blank">Countdown to Sydney $1,000,000 median house price</a>" counter Pictured below). </span><span>Based upon current market trends, Dr. Wilson sees this as being 442 days away, though after this weekend's auction frenzy the $1 million median house price may hover into view sooner still.</span>
</div>
<div><span> </span></div>
<div class="separator"><a href="https://1.bp.blogspot.com/-wGM3cbY_e20/VRcbPb2iNCI/AAAAAAAAUCY/2DATbvGcARI/s1600/wilso.jpg"><img src="https://1.bp.blogspot.com/-wGM3cbY_e20/VRcbPb2iNCI/AAAAAAAAUCY/2DATbvGcARI/s1600/wilso.jpg" width="640" height="160"></a></div>
<p> </p>
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pwargent-M4siyDbqQY

Sydney apartment construction hubs need close monitoring by investors: Pete Wargent 

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<p>A speaker at a seminar in Melbourne told the audience they should buy in a particular suburb because the median unit price had jumped 20%-plus in the previous 12 months.</p>
<p>I’m not sure I’ve heard worse advice in a public forum.</p>
<p>But it’s a common syndrome in real estate - one that defies all logic, but common nevertheless.</p>
<p>For many years I have observed investors getting excited about buying in a location because they read/heard that it had shown exponential price growth in the recent past. </p>
<p>There are multiple reasons why this is a mistake. </p>
<p>The first is that they would be buying in a location <span>after</span> the big growth has happened. Publicity-hungry research firms that publish lists of the highest annual growth are telling you where you should have bought a year ago – maybe. </p>
<p>The second reason is that the figures show the rise in the median price, which doesn’t mean values have risen to the same degree. Given the way median prices work, it’s not uncommon for the median price to rise in an area where values have fallen.</p>
<p>The third reason is that the figures are often nonsense, wildly distorted by a small sales sample or a short time frame. </p>
<p>Here’s a recent example. RP Data, a persistent source of worthless information on real estate prices, recently spat a list out of its computer of the five locations in each state/territory which had shown the highest price growth in the most recent quarter. </p>
<p>Numerous locations on these lists had (allegedly) recorded median price growth between 25% and 35% in three months. </p>
<p>If this represented actual growth in values at those levels, this would be the greatest real estate boom in the history of the planet. But it did not mean anything of the sort. <span style="line-height: 1.3em;"> </span></p>
<p>In each case, it was a statistical aberration. There was not a single instance among those 40 locations where values were rising at the levels suggested. </p>
<p>In most cases, the statistical glitch was caused by a small sales sample. More than half of the 40 locations had fewer than 30 sales in the previous 12 months, which meant the quarterly data was based on only six or eight sales. </p>
<p>Some had only 10 or 12 sales in the year, providing a quarterly sales sample was just two or three sales. To publish median price results on samples so small is irresponsible as well as misleading. </p>
<p>In every case – i.e. in all 40 locations – the RP Data growth figures were contradicted by figures from other research sources. </p>
<p>RP Data claimed Harlaxton in Queensland had grown 28% in three months, but Domain recorded zero growth for the same location. RP Data said Cape Schanck in Victoria (a tiny market with only 14 annual sales) had grown 29% in one quarter, but Domain said its median price had actually dropped 1.3%. RP Data said Manjimup in WA had jumped 29% in three months, but Domain said it had declined 3% for the quarter and 1% for the previous 12 months.</p>
<p>The problem is that some media organisations, especially the online magazines, publish these furphies as if they’re nuggets of gold for information-starved investors. </p>
<p>“Australia’s top property markets revealed!” shout the headlines. </p>
<p>How can they be so careless?</p>
<p>A more accurate headline would: “Australia’s worst misinformation exposed!”</p>
<p><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> </em></p>
<p class="Normal"><span>Terry was recently joined by </span><em>Property Observer</em><span> 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 </span>here<span>.</span></p>
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Real estate advice syndrome a common problem: Terry Ryder

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<p><span>There are 1,822 capital city auctions scheduled this week which is an increase from 1,704 last week. The final auction clearance rate was recorded at 74.9% and was the lowest combined capital city result since the first week in March, when across the combined capitals, 74.5% of reported auctions were recorded as sold.</span></p>
<p><span>Across <strong>Melbourne</strong>, there are 759 auctions scheduled this week which represents a significant increase from last week when there were 655 auctions across the city and higher than last year’s auctions at 674. Melbourne’s final auction clearance rate for last week was 77.4%.</span></p>
<p><span>Currently, CoreLogic RP Data is tracking 795 <strong>Sydney</strong> homes to be taken to auction this week, similar to the volumes seen last week when there were 791 auctions across the city. Last week Sydney’s clearance rate was 78.8%; the lowest result for the city since the final week in January when only 154 Sydney homes were taken to auction and the clearance rate was 77.9%. This is also the first time in 22 weeks where Sydney’s clearance rate has dropped below 80%. Given the strong performance of the Sydney auction market this year, there is likely to be even further interest toward upcoming auctions this week.</span></p>
<p><span>There will be 112 <strong>Brisbane</strong> auctions this week, down slightly from 123 last week and 116 at the same time last year. Last week, 52.5% of Brisbane properties taken to auction were sold.</span></p>
<p><span>79 <strong>Adelaide</strong> homes are being taken to auction this week, up from 69 last week and also higher than over the corresponding week last year (67). Adelaide’s clearance rate fell to 66.1% last week, after having been recorded above the 69% mark over the previous two weeks.</span></p>
<p><span>In <strong>Canberra</strong>, 45 residential properties will be taken to auction this week, compared to 31 last week and 48 last year.</span></p>
<p><span>Across <strong>Perth</strong>, 22 auctions are scheduled this week after there were 26 in the city last week and 16 over the same week one year ago.</span></p>
<p><span>Across Australia’s individual suburbs, the highest volume of auctions this week is in Victoria’s <strong>Mount Waverley</strong>, where 13 auctions are scheduled, followed by <strong>Randwick </strong>(NSW) and <strong>South Yarra</strong> (Vic) with 12 auctions.</span></p>
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Capital city property auction volumes increase: CoreLogic RP Data's Shana Miller

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<p><span>The ABS released its consolidated <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8782.0.65.001Main+Features1Mar%202015?OpenDocument" target="_blank"><span>Construction Activity</span></a> data for the March 2015 quarter this week. </span></p>
<div id="post-body-7503557364222292087" class="post-body entry-content">
<div>No real surprises to be found here, based upon what we have already seen.</div>
<div> </div>
<div>Resources construction continues to decline apace, with engineering construction in chain volume measures terms declining by a further 7.0% in the first quarter of the calendar year, to be down by more than 20% year-on-year.<br><br>Recent commodity price action suggests that the pace of the decline may even accelerate from here. </div>
<div> </div>
<div>On the positive side of the ledger, as implied by record high building approvals, residential construction has begun to respond to low interest rates, increasing very strongly by more than 5% in Q1 to be up by 11.9% over the past 12 months.</div>
<div> </div>
<div>Non-residential building was up by 1.3% in the March quarter, but has increased only by a paltry 0.7% over the past year.<br><br>Here's the chart: </div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s1600/Construction1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s1600/Construction1.jpg"><img src="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s640/Construction1.jpg" width="640" height="280"></a></div>
<br><div>Piecing these figures together it's clear that residential construction alone will not fully compensate for the decline in mining capital expenditure, with total construction activity of $48.3 billion now declining back to the levels seen in Q4 2011.</div>
<div> </div>
<div>That said, $48.3 billion is still an elevated level of activity in historical terms...for now at least.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s1600/construction2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s1600/construction2.jpg"><img src="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s640/construction2.jpg" width="640" height="288"></a></div>
<br><div>The full force of the challenge will come when the last of the mega projects finally reaches completion, with a number of massive projects still in the construction phase such as the $34 billion Ichthys LNG project in the Northern Territory.<br><br><strong><span style="text-decoration: underline;">Regional centres</span></strong><br><br>The big picture is that as part of this rebalancing of the economy construction activity - and therefore employment - is shifting back away from the regions and towards the largest capital cities.<br><br>The latest unemployment rate figures for Sydney (4.7%), Brisbane (5.2%) and Melbourne (5.8%) may prove to be seasonally low, but the smoothed rolling 12 monthly data does suggest that unemployment rates in all three of the most populous cities may just be trending steadily down.</div>
<div> </div>
<div>
<a href="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s1600/CAPCITY.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s1600/CAPCITY.jpg"><img src="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s640/CAPCITY.jpg" width="640" height="290"></a></div>
<br>The economy is Sydney in particular is thriving. Indeed, with employment, retail trade and house prices all booming, monetary policy settings are all too easy for the harbour city.<br><br>Unemployment rates in Newcastle and Lake Macquarie seem to have steadied of late, but the trend in the Hunter is still upwards for now.<br><br>It's likely to be a tough period of adjustment for towns in the Upper Hunter such as Muswellbrook and Singleton, with further job cuts at BHP Billiton's Mr. Arthur reported to be "imminent".<br><br>It is worth noting that directly the mining industry is only a relatively small employer, but the reversal of the mining capital expenditure boom does have significant flow-on effects to other ancillary industries.<br><br>Labour market conditions had seemed to be picking up in the Illawarra, but it is nevertheless the case that the outlook for domestic steelmaking remains potentially bleak.<br><br><em>The Australian</em> put it fairly bluntly, stating that the closure of BlueScope's Port Kembla steelworks is "a matter of when, not if".<br><br>A recent poll in the Illawarra Mercury showed that more than 70% of respondents believe that the closure of the plant would cripple the Illawarra economy.</div>
<div> </div>
<div>
<a href="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s1600/NSW.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s1600/NSW.jpg"><img src="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s640/NSW.jpg" width="640" height="278"></a></div>
<br>Parts of regional Queensland have similar tales to tell.<br><br>Again, unemployment rates from month to month don't tell us a great deal, and things seem to have stabilised in some regions, but the general trend has been towards unemployment rates reverting higher as the resources investment boom phase falls away.</div>
<div> </div>
<div>
<a href="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s1600/QLD.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s1600/QLD.jpg"><img src="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s640/QLD.jpg" width="640" height="286"></a></div>
</div>
<br><div>Towns facing something of an uphill struggle include Dalby, Chinchilla, Roma, Moranbah, Emerald., Dysart, Bowen and others.<br><br>Gladstone has also been going through its own transition phase over the past year or two.<br><br>Tourism regions on the other hand should benefit from the ongoing depreciation of the Aussie dollar.</div>
<div> </div>
<div>
<a href="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s1600/tourism.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s1600/tourism.jpg"><img src="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s640/tourism.jpg" width="640" height="278"></a></div>
</div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>There is not a lot new here, of course, and the rapid decline of engineering construction has evidently been in the post for some time now. </div>
<div> </div>
<div>Although it is generally reported that a decline in construction is a "bad thing", it is also clear that Australia couldn't go on building mines for ever - at some stage they need to produce exports. </div>
<div> </div>
<div>
<em>Reductio ad absurdum</em>, if any decline in construction activity is bad, then Australia would've been better off not having a mining boom in the first place.</div>
<div> </div>
<div>That said, the rising<a href="https://petewargent.blogspot.com.au/2015/07/city-versus-regional-jobs-divide-widens" target="_blank"> </a>levels of regional unemployment reported over the past week represent compelling evidence that many resources-influenced regions are set to be hit hard by declining demand in the years ahead.</div>
<div> </div>
<div>On the other hand the largest capital cities are benefiting from a boom in residential construction in particular together with the associated multiplier effect.</div>
<div> </div>
<div>One consequence of this is that certain inner city areas will evidently end up with an oversupply of apartments, particularly of high rise stock. Unit developments marketed overwhelmingly to investors may include those to avoid.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Construction activity declines in the regions: Pete Wargent

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<div><strong><span style="text-decoration: underline;">Statistics fatigue</span></strong></div>
<div> </div>
<div>I've been suffering from quite heavily from a case of DSF recently - Demographic Statistics Fatigue.</div>
<div> </div>
<div>After putting the data series on hold for months, the statistics bureau has been releasing monthly data in rapid-fire succession in recent weeks. </div>
<div> </div>
<div>A bit like London buses, you wait seemingly ages for one to come along, and then...</div>
<div> </div>
<div>Anyway, we're nearly up to speed now with the May 2015 <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3401.0Main+Features1May%202015?OpenDocument" target="_blank">Overseas Arrivals and Departures</a> figures having been released.</div>
<div>
<br>Rather than re-cap on old ground too much, I'll just make four short observations here, starting with...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">1 - Migration slowing</span></strong></div>
<div>
<br>Firstly, net overseas migration on a rolling annual basis has continued to slow through 2015. </div>
<div> </div>
<div>With the economy moving through something of a sticky patch, population growth in Australia slowed from a massive 396,200 in calendar year 2013 to a somewhat more sedate 330,200 in 2014.</div>
<div> </div>
<div>The latest figures suggest that net overseas migration into Australia will be slower again in 2015.</div>
<p><a href="https://4.bp.blogspot.com/-P2laFJ2BRIQ/VbCdbx7Jo9I/AAAAAAAAXHc/vimFTm3OtTQ/s1600/A1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-P2laFJ2BRIQ/VbCdbx7Jo9I/AAAAAAAAXHc/vimFTm3OtTQ/s1600/A1.jpg"><img src="https://4.bp.blogspot.com/-P2laFJ2BRIQ/VbCdbx7Jo9I/AAAAAAAAXHc/vimFTm3OtTQ/s640/A1.jpg" width="640" height="286"></a></div>
<p> </p>
<div>While property observers in particular seem to love to see rampant headcount growth at any cost, the reduced population growth rate of 1.4 per cent that we have seen through 2014 has had one major benefit in particular.</div>
<div> </div>
<div>And that benefit is that over past year the economy has been stacking on new jobs faster - much faster - than the rate of population growth - with an employment growth rate of 1.9 per cent, or just shy of 225,000 new jobs.</div>
<div> </div>
<div>Indeed, since October alone the economy has added more than 205,000 new jobs, which in turn has seen the rate of total employment growth over recent months romping along at nearly <strong><em>twice </em></strong>the rate of the growth in population.</div>
<div> </div>
<div>Perhaps unsurprisingly, therefore, the unemployment rate has fallen from 6.3% at the beginning of the year to 6.0 per cent.<br><br>
</div>
<div>The latest Reserve Bank Board Meeting Minutes suggested that we may even see the unemployment rate falling further from this point, thereby contradicting earlier forecasts which had expected unemployment to run up to a peak of 6.5% in this cycle.</div>
<div> </div>
<div>And long may this particular dynamic continue.</div>
<div> </div>
<div>You can read more about employment growth and where it is (and isn't) taking place in Australia here. </div>
<p><br><strong><span style="text-decoration: underline;">2 - Rebalancing underway</span></strong></p>
<div> </div>
<div>The Australian dollar has now declined from a mining-boom-inspired peak of around 110 US cents to below 74 cents.</div>
<div> </div>
<div>It seems likely that the Aussie dollar will need to fall further too, in order to help the rebalancing of the economy.</div>
<div> </div>
<div>This depreciation of the currency will have a major impact on demographic trends.</div>
<div> </div>
<div>In short, fewer and fewer Aussies will be inclined to travel and holiday overseas, while more and more folk from foreign fields will see Australia as an attractive destination for a visit.</div>
<div> </div>
<div>Indeed, this enormous benefit to the tourism services industry is already well underway.</div>
<div>
<br>While it may sound like jargon, the ratio of short term departures to short term arrivals has declined to its lowest level in years. </div>
<div> </div>
<div>In plain English, more tourists are now coming to Oz, and fewer Aussies are taking overseas trips.</div>
<p><a href="https://3.bp.blogspot.com/-amAhvKUtOUs/VbChJ_9a81I/AAAAAAAAXIE/iIONagTCWqc/s1600/a6.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://3.bp.blogspot.com/-amAhvKUtOUs/VbChJ_9a81I/AAAAAAAAXIE/iIONagTCWqc/s1600/a6.jpg"><img src="https://3.bp.blogspot.com/-amAhvKUtOUs/VbChJ_9a81I/AAAAAAAAXIE/iIONagTCWqc/s640/a6.jpg" width="640" height="278"></a></div>
<p> </p>
<div>Looked at another way, the number of short term arrivals into Australia has blazed well past 7 million for the first time on record.</div>
<div> </div>
<div>And while the tide has only turned slowly to date, fewer Aussies are now electing to take overseas trips. </div>
<div> </div>
<div>The two lines representing these trends on the chart will meet again, possibly sooner than we think, and in time Australia will once again see a net inflow of short term demographic movements.</div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-ZLJHtYv4c5A/VbCdb5AdEcI/AAAAAAAAXHw/CXxv0GdI6RA/s1600/a2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-ZLJHtYv4c5A/VbCdb5AdEcI/AAAAAAAAXHw/CXxv0GdI6RA/s1600/a2.jpg"><img src="https://3.bp.blogspot.com/-ZLJHtYv4c5A/VbCdb5AdEcI/AAAAAAAAXHw/CXxv0GdI6RA/s640/a2.jpg" width="640" height="284"></a></div>
<p><br><strong><span style="text-decoration: underline;">3 - Chinese...and Kiwi visitors!</span></strong></p>
<div>The most notable of all demographic trends has been the incredible explosion in Chinese visitors to Australia, an obvious precursor to what lies ahead in terms of permanent migration.</div>
<div> </div>
<div>Over the last year there have been 1.25 million visitors from China, Hong Kong and Taiwan, and the latest data suggests that these extraordinary figures are set to accelerate plenty higher still in due course.</div>
<p><a href="https://2.bp.blogspot.com/-pgaRYzF4V4o/VbCdbz-kJqI/AAAAAAAAXHY/QczN1Dsy7Rk/s1600/a3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://2.bp.blogspot.com/-pgaRYzF4V4o/VbCdbz-kJqI/AAAAAAAAXHY/QczN1Dsy7Rk/s1600/a3.jpg"><img src="https://2.bp.blogspot.com/-pgaRYzF4V4o/VbCdbz-kJqI/AAAAAAAAXHY/QczN1Dsy7Rk/s640/a3.jpg" width="640" height="280"></a></div>
<p> </p>
<div>Chinese migrants are settling in Australia too, with 18,550 settlers in the year to May - essentially as high a figure as we have seen to date - while there were also a record 19,930 settlers hailing from India over the same 12 month period.</div>
<div>
<br>Watch this space, as these numbers are growing apace.</div>
<p><span>Indeed, the number of settlers hailing from Asia is now overwhelming compared to the numbers from all other continents - outnumbering European migrants by a ratio of five to one, for example.</span></p>
<p><span style="line-height: 1.3em;">Much has been made of the rapidly diminishing numbers of settlers from Oceania (essentially New Zealand), with permanent migrants effectively having halved since 2012. </span></p>
<div>There are also ever fewer Britons emigrating to Australia at present as the UK economy has become an "incredible job-creating machine" over the past few years.<br><br>
</div>
<div>For all that, it's worth noting that there were well over 1.25 million short-term arrivals from New Zealand over the past year - a record high - so it's hardly all one way traffic, bro.<br><br>
</div>
<div><a href="https://2.bp.blogspot.com/-j2_ZEM-cr5A/VbCddFNBaPI/AAAAAAAAXHs/qZZIxA2adOA/s1600/a5.jpg" target="_blank">Click to enlarge</a></div>
<p><a href="https://2.bp.blogspot.com/-j2_ZEM-cr5A/VbCddFNBaPI/AAAAAAAAXHs/qZZIxA2adOA/s1600/a5.jpg"><img src="https://2.bp.blogspot.com/-j2_ZEM-cr5A/VbCddFNBaPI/AAAAAAAAXHs/qZZIxA2adOA/s640/a5.jpg" width="640" height="280"></a><br><br></p>
<div>At the same time there were also a record 567,100 American visitors enjoying the turnaround in exchange rate in Australia over the past year...the delayed Oprah effect.</div>
<p><strong><span style="text-decoration: underline;">4 - Record foreign students</span></strong></p>
<p><span style="line-height: 1.3em;">Recent data from Reserve Bank of Australia (RBA) liaison projects a huge ramp up in the number of foreign students in Australia over the years ahead, one of Australia's fast-growing "export" industries.</span><span style="line-height: 1.3em;"> </span></p>
<div>In fact, this is already happening, with Chinese students playing a major role here too. </div>
<div> </div>
<div>The first quarter of 2015 witnessed record enrolments of foreign students in Australia.</div>
<p><a href="https://2.bp.blogspot.com/-_yQJnV4-_2c/VbCdcgG3JfI/AAAAAAAAXHk/HTPWS2Z482s/s1600/a4.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><a href="https://2.bp.blogspot.com/-_yQJnV4-_2c/VbCdcgG3JfI/AAAAAAAAXHk/HTPWS2Z482s/s1600/a4.jpg"><img src="https://2.bp.blogspot.com/-_yQJnV4-_2c/VbCdcgG3JfI/AAAAAAAAXHk/HTPWS2Z482s/s640/a4.jpg" width="640" height="280"></a></div>
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<div class="separator">The RBA data also confirmed that most foreign students are overwhelmingly bound for Sydney and Melbourne.</div>
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<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">The main themes here are that we can expect population growth in 2015 again to be slower than it has been in recent years.</div>
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<div class="separator">This slowdon has clearly had a positive effect on the unemployment rate to date, and it is hoped that if the economy continues to add jobs at the pace it has been since October the unemployment rate may fall into a range with a "5 handle".</div>
<div class="separator"> </div>
<div class="separator">The other obvious theme here which stands out is the sheer dominance of migration from Asia, a story which is only set to grow in Australia over the decades ahead.</div>
<div class="separator"> </div>
<div class="separator">The role of Chinese investment in Australia in particular is set to be very material over the next five years.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Foreign student numbers and other demographic property investor trends: Pete Wargent

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<p>It is becoming more common for generation Y to move to inner city or CBD areas and purchase properties using their family’s home equity, according to founder of Sydney-based Dream Design Do, buyer's agent Zaki Ameer.</p>
<p>“Upon finishing their studies, young adults find that their place of employment is located in the CBD, as well as all the amenities they want to access, such as nightlife, entertainment, and retail offerings,” says Ameer.</p>
<p>“In Sydney, these locations are typically the eastern suburbs and the inner city, and in Brisbane its Newstead and Fortitude Valley.”</p>
<p>“Property is priced way outside of capabilities of the salary of a career starter, so purchasing a property in the desired location of these Gen Y’s is impossible.”</p>
<p>This is forcing young people to draw on their family home equity which is becoming one of the easiest pathways for young people to tap into the property market, said Ameer.</p>
<p>“In many cases, the family home is already paid for, which creates substantial security when applying for the loan”.</p>
<p>“Provided the youngster is gainfully employed, purchasing in the area where it’s all happening is right within his/her foreseeable future.”</p>
<p>According to Ameer this option was not possible for past generations. The parents of today are likely to work longer and are not keen on downsizing or moving to a retirement complex for some years.</p>
<p>“Their parents do not see themselves as old, and therefore are in no hurry to sell the family home. They don’t want to live among retired people or senior citizens, and more than likely are perfectly happy in the family home surrounded by families and young people.”</p>
<p>Ameer said parents could use their children’s move to the city as an investment opportunity.</p>
<p>However, if parents aren’t in a position to draw down on their equity another option is renting which Ameer says is costly but manageable.</p>
<p>If renting is also too expensive and they are still keen to enter the property market, they may purchase a property in a cheaper area, and then work on building equity on that property so that they can buy in their target area in the future.</p>
<p>According to Ameer, another option is taking up employment in a different city where property and living cost is cheaper.</p>
<p>“In their 20s, they probably do not have a lot of personal responsibilities, and are more easily able to relocate,” he said.</p>
<p>“They will see it as an adventure; to work and live in another state than where they grew up, and also often take the opportunity to establish themselves when they are there, by purchasing property that is now affordable for them.”</p>
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owisniewski-RiYLqnXfKH

Young buyers leveraging family home equity to afford inner city purchases: Buyer's agent

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<p>Hi Margaret,</p>
<p>Can I move out from my own unit and rent a bigger place to live and claim my unit as an investment unit?</p>
<p>Kind regards,</p>
<p>Ramin</p>
<p><em><br></em><em>See Margaret Lomas' answer on the next page.</em></p>
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<p>Hi Ramin,</p>
<p>You can move out of your principal place of residence, rent out your former home and claim all expenses and interest costs as a tax deduction as soon as it becomes available for rental, and as long as you also declare the income you receive. </p>
<p>If you don’t have another property that you can apply your principal place of residence exemption to (for example, if you rent where you live) then you can have up to six years exemption from capital gains tax too, at the end of which you will need to either move back in, or sell.</p>
<p>Whether you <em>should</em> rent it out or not is another thing entirely.  Here are some things to consider:</p>
<ol>
<li>If the loan on your home is presently quite low, and the one on any new family home you intend to buy is larger, then potentially you might be upside down from a financial perspective.  As your own home is non- deductible, then the interest repayments might be a high, non- deducible amount while those on your newly created investment property would be low, and a taxable profit situation may result. In this case it may be better to sell the family home while it is still capital gains tax free, use the proceeds to buy your new home with a low loan, and then use the equity to get a fully deductible loan to buy an investment property elsewhere.<br><br>
</li>
<li>It’s rare that people happen to live in an up and coming hotspot – therefore keeping the current home may not be the best investment.  It’s easy to think that you live in a great area but the reality is that it might not have the fundamentals required to perform well from both a yield and growth perspective.  Therefore, keeping it becomes an opportunity cost or not buying a better investment in a better performing area.<br><br>
</li>
<li>It can be very difficult to watch a tenant move into a home that was once your pride and joy.  It’s a fact that it simply won’t be treated how you want it to, and your emotional attachment may make you a bad landlord!</li>
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<p>I have rarely seen the best option being to keep a former Principal Place of Residence. At this stage you need some good advice from a qualified property investment adviser who can help you make this decision as a part of a complete strategy which considers all of your financial and investing needs, rather than just this single, short term decision.</p>
<p>Regards,</p>
<p>Margaret</p>
<p><em><em>Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></em></em></p>
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mlomas-KC9MUPZ6Ca

Ask Margaret: Can I claim my unit as an investment if I move out?

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<p><span>When the Head Teller at the Reserve Bank of Australia dropped the cash rate to a record low of 2.00% this week the Head Cashier AKA Joe Hockey immediately started bellowing "Australians – spend – spend – spend."</span></p>
<p><span>So let me let you in on a secret Joe – Australians are spending up big, it’s just that they are using the online loophole where they don’t have to pay you GST. The other problem is that following the Global Financial Crisis many Australians (to save money) reverted back to paying cash for services simply because that way they get a significant discount.</span></p>
<p><span>Naturally those who have negatively geared their properties don’t engage in the cash for services given they need the receipts in order to gain their much required tax reduction. I guess that given nearly all developed countries have a tax structure where you do pay a tax when you sell the family home, however all monies spent – mortgage, maintenance and improvements – are a tax deduction. So I hope now that you can understand why GST receipts are in decline.</span></p>
<p><span>When the GST was introduced nearly 15 years ago a comparative analysis was undertaken to see what the online shopping receipts were likely to be for purchases under $1,000. The analysis which in all probability was done using a Commodore 64 with a flashy floppy disc drive found that it would cost as much to collect the GST on these purchases so the plan was shelved.</span></p>
<p><span>Today Australians are all over <a href="https://www.ozsale.com.au/default.aspx?cid=10" target="_blank">OZSALE</a> and <a href="https://www.dealsdirect.com.au/" target="_blank">DealsDirect</a> to name just two who just happen today to be hugely successful online businesses that turn over hundreds and hundreds of millions each year. According to the National Australia Bank’s (NAB) latest Online Retail Sales Index – Australians spent a record (yes record) $16.6 billion online in the year to January 2015. Given that the vast majority would be sales with no GST payable that’s at least $1.500 billion in missing revenue each year – now that’s embarrassing.</span></p>
<p><span>Deloitte has just readjusted the budget projections to take into account the latest economic news where last year’s budget deficit was $48.5 billion. Deloitte is predicting this year’s deficit will be $5.5 billion worse than predicted a year ago, and will be close to $45.9 billion. All will be revealed next week but rest assured it will be a shocker – although it’s difficult to agree with increasing the GST when we have all those ‘rivers of gold’ that the federal government is missing simply because they won’t reform.</span></p>
<p><span>Just as embarrassing was the announcement last week by Prime Minister Tony Abbott that foreign investors who have purchased illegally in Australia have until the end of November to come forward to avoid criminal charges and severe fines. Now I have no doubt that illegal property acquisitions will be huge in number but how about upgrading from Windows 2003 and start a proper National Property Register which has been promised for years.</span></p>
<p><span>The illegal buying debate does get amusing at times given some are saying that the best method is when buyers attend an auction to bid they must provide identity and that data is recorded – that then will stop illegal buyers. Well, sorry no it won’t. That legislation was brought in 2003/2004 in an effort to stop dummy bidding where records of identification are recorded should the Office of Fair Trading require an investigation. If a party attends an auction and they want somebody to bid on their behalf it is that person bidding who provides the identification not the eventual buyer who is not required to provide any identification – even though they may successfully buy the property.</span></p>
<p><span>Any buyers who have purchased illegally would now be contacting their respective legal representatives and immediately transferring ownership into the name of an Australian resident – the federal government has given them a six month window to conform and that’s based on the illegal owners coming forward. Brilliant plan that one!</span></p>
<p><span>With the Head Cashier now dutifully accepting the pseudo role of Housing Minister the forensic search for illegal purchasers across Australia has begun in earnest. Maybe Joe should spend a week of work experience at the NSW government who just collected more than $5.000 million from those naughty first home buyers who illegally applied for grants. Going back three years and with nearly 1,400 investigations they found 478 first home buyers who were forced to repay their illegal grants. A spokesman for the NSW Office of State Revenue said it routinely conducted ‘’random and targeted audits matching and data mining.”</span></p>
<p><span>All that Joe Hockey needs to do is find a way to get hold of that data and do a targeted audit through his Australian Taxation Office audits plus some additional data mining using stamp duty records.</span></p>
<p><span>Why is it that Canberra just doesn’t see the billions they lose each year from GST online sales and why it’s so easy to set up a National Property Register?</span></p>
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robertsimeon-hRNTwJyXkQ

Chaos in Canberra but that’s not unusual: Robert Simeon

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<p><span style="line-height: 1.3em;">Origin Energy chief executive Grant King and his wife Jenny have a $1.7 million price on their redundant Pittwater retreat.</span></p>
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<p>The Neutral Bay couple now own a pricier Palm Beach beachfront. </p>
<p><a href="https://palmbeach.ljhooker.com.au/33MF6Z/11-coasters-retreat-coasters-retreat" target="_blank">The waterfront reserve Coasters Retreat cottage </a>was bought it in 1995 for $307,500 before its extensive renovation and extension. </p>
<p><span style="line-height: 1.3em;">Accessed only by boat or a regular ferry service from Palm Beach, Noel Nicholson, of LJ Hooker Palm Beach, has the listing.</span></p>
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