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

Joel Robinson

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

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

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

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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GUEST OBSERVER
Stop eating smashed avocado. Stop taking overseas holidays. Live with your parents, save harder and set your sights lower – why don’t you just buy an apartment? The advice to millennials about how to afford the Australian dream of home ownership is as gratuitous as it is patronising.
New research from CoreLogic shows that owning an apartment as a “forever home” is largely a myth in Australia and not much of an option for millennials who are increasingly dependent on their parents for help to enter the property market.
The Perceptions of Housing Affordability Report identifies that while 72 percent of us live in houses, apartment dwellers make up just 15 percent of the population. Add to that duplexes and townhouses and the number of people living in shared title accommodation is still small at 28 percent. 
The data also shows there are just over 152,600 units currently under construction across Australia – 85 percent more than the decade average and virtually double the 30 year average. 
So why don’t millennials just buy into this cheaper housing stock?
There are multiple reasons. The first is that the data also shows that apartments – despite their lower prices when compared to houses - are still significantly more expensive and harder to afford than 15 years ago. The price to income ratio of apartment ownership across Australia is currently 6.6x income for units now compared with 4.8x 15 years ago. Back in 2002, it was not unheard of to snap up a unit within 10km from the city for under $300,000. Now, in Sydney and Melbourne, the figure is closer to $750,000.
The second reason is that saving for a unit is equally difficult. It now takes 1.3 years of average annual income to save the deposit for an apartment compared to 1 year back in 2002. And that’s not “just put some money aside for a year and a bit”. That means put every cent you get into a saving account until you reach 20 percent (and then save some more to cover stamp duty and other costs). You can see therefore for those who want to eat, put petrol in their car or have a roof over their head in the meantime, the time it takes to pull a deposit together can blow out.
According to the CoreLogic research, the biggest impediments preventing Millennials from buying a property are most likely to be finding the deposit (49 percent), interest rates (44 percent) and a combination of certainty of employment and getting loan approval (41 percent each).
The third reason is that the majority of stock currently under construction is not actually intended as long term occupancy. Most is high rise units and most developments currently under construction are one and two bedrooms, making it more suitable to investors and singles, rather than young families. 
Developers are building to where the demand is. Investors have historically comprised of 33 percent to 40 percent of housing demand however the latest data from the Australian Bureau of Statistics shows investors comprised closer to 50 percent of new mortgage demand nationally. 
Despite the emphasis on “rentvesting”, Millennials are the least likely to own an investment property (12 percent) compared to 19 percent for Gen X and 18 percent for Baby Boomers. Investment properties are also more likely to be owned by families with children living at home. It turns out investment properties are most likely to be owned by families with children aged 5-17 (22 percent), indicating that property is an important family investment strategy.  
So simply legislating to reduce the numbers of investors in the market so owner occupiers can step in, needs to be carefully managed. Investors affect the availability and therefore cost of rental accommodation and as we move through an unprecedented ‘boom’ in apartment construction, investors play a critical role in absorbing new unit supply and ensuring off the plan sales transition smoothly to settlement.  
All of this means that cashed up Baby Boomers and late Gen Xers, who are more likely to have paid off their home, more likely to have significant equity that they are looking to invest, and more capable of raising a deposit are the property winners if they are capable of servicing a mortgage. 
But there is no such thing as a free smashed avocado breakfast. The cost of this bounty will are children who stay at home longer with 21% not expecting now to move out until they are at least 30 and a further 38 percent expecting to move out between 25-29. 
Waiting til Mum and Dad either pop off the perch and leave them an inheritance, or stump up to help them fund their move, is now a real option for 30% of Australians, meaning housing affordability really is becoming a life/death issue.
 
Kylie Davis is the head of property services marketing at CoreLogic and the author of the CoreLogic Perceptions of Housing Affordability Report 2017. She can be contacted <a href="https://solutionsblog.rpdata.com/author/kylie-davis/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Millennials, apartment living and the myth of smashed avocado: Kylie Davis

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Some 24 three and four bedroom townhouses are slated for development alongside the grounds of the former Katoomba Golf Course.
The residential development, titled Escarpments Estate, is a partnership between Glenstone Group, Andrew Mencinsky and London 2012 Olympian turned property developer, Edward Fernon.
The former golf clubhouse and golf course will be redeveloped with the ex-clubhouse turned into a restaurant, health and fitness centre, and a golf shop servicing the Blue Mountains’ only driving range.
Fernon said it’s important that new developments in the area are unique and provide something valuable for the community as well as the new residents.
"Escarpments Estate will give townhouse buyers and the local community alike rejuvenated parklands and fantastic amenities that will really make the Blue Mountains area a notable option for those looking just outside of Sydney," he said.
"Where else can you match natural beauty with world-class amenities so close to one of the world’s major cities?
"In light of the Federal Budget 2017 plan announcing financial incentives to encourage older property owners to downsize, I expect interest in developments like Escarpments Estate to significantly increase."
Townhouses feature a range of fittings and fixtures from brands such as Smeg, Miele and Dulux. All the townhouses will look out over the former golf course,  which will be turned into acres of impressive parklands featuring walking paths, cycling trails and ponds. 
Dominic Hogan, director of Glenstone Group said interest in the Blue Mountains is sky rocketing,.
"Escarpments Estate townhouses will provide the best modern living has to offer on the Blue Mountains’ biggest backyard," he said.
"They are well appointed with a range of options to suit individual tastes, just 3.5 kilometres to Katoomba village with its shops and transport, and virtually next door to the Three Sisters and Scenic World.
Escarpments Estate has begun development with the townhouses already available to purchase off the plan. Local Blue Mountains agents Milton Player and Jonathan Crisp of Chapman Real Estate will oversee sales.
The development officially launches Friday 26th May 2017. To register your interest visit <a href="https://www.escarpmentsestate.com.au" target="_blank">www.escarpmentsestate.com.au</a>
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jonathanchancellor-7SQnKwU6yx

Olympian purchases former Katoomba Golf Course 

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SPONSORED POST
Savills has recently unveiled the findings of its 2017 Tech Cities research programme, which aims to understand the diverse factors that make places good locations for the tech sector. 
The Tech Cities programme currently measures 22 global centres against more than 100 individual metrics, but for the first time in 2017 Tech Cities has also considered how each city performs on buzz and wellness.
Cities attract young tech talent who increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office. The Tech Cities ‘buzz and wellness index’ specifically looks to capture these qualities and identify the liveable cities that deliver what this demographic desires by measuring ‘buzz’ (i.e. nightlife, entertainment and cultural offer), ‘wellness’ (i.e. pollution levels, quality of parks, healthcare, commuting times) and the cost of living (excluding property costs) in each location. 
These new metrics have seen some changes to the cities included in the programme, with Melbourne appearing for the first time as the top tech city in Australia. When looking specifically at buzz and wellness, Melbourne ranks 16th on city buzz, 13th on cost of living and 3rd for wellness.
The trade-off between buzz and wellness
Cities with high buzz scores tend to have great bars, clubs, restaurants, shops, music venues and museums, and radiate excitement and creativity. 
But buzzy cities can have downsides: being popular on a world stage tends to lead to high property and living costs, and can lead to overcrowding and congestion. This could lead to younger generations of talent increasingly looking for something different as more young workers aim to strike a better balance between living in fun, energetic cities and maintaining their physical and mental health. Buzz alone may not be enough to attract these potential workers to a city, many of whom are either already employed or are looking to start careers in tech and its related industries.
That’s why it’s also important to look at wellness in a city - low crime and pollution rates, quality parks and public spaces, and low congestion. Copenhagen, Stockholm and Melbourne are at the top of this list.
While there’s often a trade-off between ‘buzz’ and ‘wellness’, Amsterdam and Toronto balance the two. Occupiers looking to attract the new generation of talent therefore need to pay close attention to such factors when looking for new locations
Looking at the future, we suspect it is these cities which can balance both factors (representing shorter commutes, easier access to amenities and a better work/life balance), that will move up the rankings in future iterations of Tech Cities.
City Buzz and Wellness index
<a href="https://www.propertyobserver.com.au/images/2017/05/08/Buzz-and-wellness-Index-2017.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/08/Buzz-and-wellness-Index-2017.jpg" alt=""> 
City Buzz + Wellness + Cost of Living index*
<a href="https://www.propertyobserver.com.au/images/2017/05/08/City-buzz-wellness-index-separate-2017.jpg" target="_blank">Click to enlarge</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/08/City-buzz-wellness-index-separate-2017.jpg" alt="">
*Each of the three components is weighted then averaged together to get the final index score.
Source: Savills World Research, Tech Cities 2017. 
More Information
<a href="https://www.savills.co.uk/tech-cities" target="_blank">Savills Tech Cities</a> 2017 programme aims to understand the diverse factors that make places a good location choice for the tech sector; examining 22 global centres which have thriving and growing tech industries, home grown start-ups and incubators, and are at the top of global shopping lists for tech companies looking for space in which to locate. 
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>.
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What buzz and wellness mean to a tech city: Savills 

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An ATO rule was introduced to catch foreign sellers taking money overseas.
But it was applied to all Australian sellers of $2 million-plus properties - and will now cover all sales above $750,000 in an expanded audit which will also catch local hidden black market property sellers.
The rule classifies all sellers as overseas investors unless they get a special tax clearance.
That means that all buyers of $750,000 plus properties must deduct 10 percent from the purchase price and pay that amount to the Australian Taxation Office (ATO) unless the seller can furnish a tax clearance. 
The rule will affect everyone, including Australians, despite being aimed at overseas investors taking their property windfalls overseas.
The measure can be traced back to the days when former treasurer Joe Hockey caved into pressures to curb Chinese investment in Australian residential property in 2015.
In the process, the treasurer was convinced by the Australian Taxation Office to widen the net to cover local residents.
According to an ATO fact sheet, in May 2013, the government announced that it would introduce a 10 percent non-final withholding tax on payments made to foreign residents who dispose of certain taxable Australian property with a market value above a specified $2 million threshold.
The new legislation for this measure became law in February 2016.
The $2 million rule applied to vacant land, buildings, residential and commercial property, leaseholds and strata title schemes.
The ATO website says, "The government is strengthening our foreign resident capital gains tax (CGT) regime to assist in the collection of foreign residents' liabilities."
A purchaser who does not receive a “clearance certificate” from the vendor and does not send 10 per cent of the purchase price off to the ATO will be liable to pay that 10 percent to the ATO plus
In the majority of cases, local resident vendors will have no problem obtaining a clearance certificate, but it might increase the risk of a tax audit for property sellers who:
<ul>
<li>Have not filed tax returns for many years;</li>
<li>Have filed tax returns, which would indicate they could not afford such a property;</li>
<li>Are selling their residential house at the same time as their neighbours to a single developer, which may give rise to a profit making scheme (such that the principal residence capital gains tax exemption may not apply to the value uplift generated by selling the properties together); or</li>
<li>Where the ATO has gathered information that indicates the vendor is in the business of developing property, which means that the principal residence capital gains tax exemption may not apply.</li>
</ul>
It was inevitable that over time, the ATO would shift their audit target identification processes to lower than $2 million-plus property vendors.
If the vendor has a tax debt, the application for a “clearance certificate” may in some circumstances involve the ATO seeking to recover some or all of that tax debt from the purchaser by way of a garnishee notice. 
In June of last year Property Observer reported on the obligations for seller and buyers for $2 million plus clearance certificates.
Similarly in June last year Property Observer reported on new legislation on the sale of $2 million plus homes.
Property Observer also reported in May last year about the upcoming ATO legislation that will affect sales of $2 million.
Property Observer commented on how the new ATO rule on property deals for $2 million houses will affect Chinese buyers.
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All $750,000 plus property sales to be caught in ATO audit aimed at overseas investors

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From 1 July 2018 the Government will require purchasers of new residential premises to remit the GST directly to the ATO as part of settlement.
KPMG's Indirect Tax Partner Kate Law says this announcement comes as a surprise.
"It is a significant divergence from the way the GST system currently operates , where GST is collected from the supplier (developers).
"The Government has announced this change as a tax integrity measure," she noted.
Around four years ago, ATO compliance programs targeted illegal “phoenix” activity, purportedly from a number of property developers who repeatedly placed companies in liquidation with outstanding GST obligations, despite having claimed input tax credits on construction costs.
However, KPMG indicated it was not aware of industry consultation on this issue more recently.
"We question the practicality and administrative cost of imposing GST on unregistered ‘mum and dad’ purchasers.
"Where developers use the margin scheme to calculate the GST liability, the purchaser is unlikely to be aware of the amount of GST included in the purchase price.
"This measure will therefore require developers to change the way they disclose the price to ensure the GST liability is disclosed as a separate line item," it noted
The Budget papers state that this measure is estimated to increase GST revenue by $660 million and associated payments to the States and Territories, net of administrative costs, by $1.6 billion over the forward estimates period (4 years to 2019-20).
However, the Budget papers state that the difference is due to the timing of when GST is collected and recognised.
"This suggests that it is not a permanent GST difference - which is seemingly at odds with the Government’s statement that some developers are failing to remit the GST to the ATO.”
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j.ballantyne1990-6AQqhLzZaK

New residential GST surprise policy shift in 2017 Budget 

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Melbourne CBD’s office market is on an upswing, with vacancy rate at its lowest in five years, but a pause is likely before the second leg kicks in at the turn of the decade, according to BIS Oxford Economics.
The Victorian capital’s office market posted impressive results through 2016. The CBD vacancy rate fell by 140 bps to 6.4%—its lowest level since 2012—net effective rents increased by 14% and capital values surged almost 20% higher. 
The positive momentum is continuing this year and the trend is far from over, says the forecaster. However, it won’t be all smooth sailing and a looming slowdown in demand lies ahead coinciding with a spike in new supply, it said.
A similar trend was witnessed in the <a href="/expert-insights/investing/melbourne-city-fringe-office-vacancy-rate-declines-colliers">city fringe market</a> as well, with vacancy rate dropping to 3.47 percent in March from 4.96 percent in September 2016, according to a separate report by Colliers International.
“This is the lowest vacancy rate that Colliers International has ever recorded for the City Fringe market, and is the outcome of strong demand and very low levels of supply," said the Colliers report.
Last year’s strong run in the CBD market meant average prime net effective rents rose nearly 20% above post-GFC lows, while aggressive yield compression pushed values a 90% higher, said BIS Oxford Economics. That puts average prime values around 50% above pre- GFC peak levels. 
After a high like this, one might expect a muted outlook for the market. But BIS Oxford Economics expects further gains of more than 60% in prime net effective rents and almost 50% growth in values to a peak in the early 2020s. 
However, senior project manager and report author Maria Lee has a caveat.
“It won’t be smooth sailing through the upswing. In particular, Victoria faces several headwinds that are likely to cause economic growth to slow over the next few years, with a negative impact on the demand for office space,” Lee said. 
This slowdown in demand is likely to coincide with a substantial quantum of new supply coming on to the market. 
Six major towers are currently under construction in the CBD, with work on two more likely to begin shortly. These will be completed from the second half of 2018. 
Although substantially pre-committed, there is an as-yet uncommitted component which will result in considerable back-fill space becoming available, according to the forecaster.
The impact of these coming changes to the demand/supply balance would be more like a pause in the upswing rather than an end to the trend. 
“Melbourne retains a key affordability advantage over its northern neighbour and competitor, Sydney. This will help to insulate Melbourne somewhat from the negative impacts of the closure of the Hazelwood power station, the end of car manufacturing and a coming downturn in residential construction. For a national company looking to expand its back-office functions, the scales are tipped in Melbourne’s favour,” Lee said. 
The rental differential with Sydney is only set to increase over the next few years, according to BIS Oxford Economics, with Sydney’s CBD rents set to surge as the vacancy rate gets extremely tight for an extended period. 
Once Victoria has emerged from the challenges of the next few years, BIS Oxford Economics expects that Melbourne’s inherent advantages of plenty of skilled labour, a cheap and plentiful supply of land for residential, industrial and commercial building, and lower rents will come to the fore and support the second leg of the upswing. 
“Any near-term weakness should not discourage market participants from the longer term prize” concludes Lee. 
 
 
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Melbourne’s office market vacancy lowest since 2012, but slowdown likely: BIS Oxford Economics

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Foreign investors are facing a tax crackdown under the Budget package.
As of Tuesday's budget, foreign and temporary tax residents will no longer be exempt from a capital gains tax when selling their main residence in Australia.
Capital gains tax rules are being tightened for foreign investors, who will no longer be able to access the main residence exemption.
The new rule starts on budget night but will be grandfathered for existing properties until June 30, 2019, suggesting there might be an exodus arise to avoid paying the extended tax.
The Australian tax law is already complex when it is applied to domestic transactions, but its complexity increases when multiple jurisdictions and foreigner taxpayers are involved.
Accountants advise when evaluating Australian property as an investment, a foreign investor needs to fully understand their taxation obligations in both Australia and their own country of residence, which often requires the engagement of tax specialists in both countries.
It is suggested an individual will be an Australian tax resident if they reside in Australia or in Australia for over 183 days in the year of income.
Even though Australian tax residents will be taxed on worldwide income and the individual top marginal tax rate is relatively higher, there had been benefits of being tax residents until the budget announcement, including:
<ul>
<li>Access to the 50 percent CGT discount if the CGT asset is held for greater than 12 months;</li>
<li>Their main residence will be exempt from CGT upon sale (this would generally not apply to non-residents); and</li>
<li>There is no foreign stamp duty surcharge.</li>
</ul>
The withholding rate on capital gains tax that foreigners must pay when they sell property will increase to 12.5 percent from 10 percent beginning from July 1.
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Foreigners lose capital gains tax exemption on main residence 

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GUEST OBSERVER
The last two Budgets have contained tax integrity measures to impose GST on foreign entities who provide digital supplies and services (referred to as the ‘Netflix tax’) and low value goods to Australian consumers.
On Budget night, the Economics Legislation Committee announced its recommendation that the 2016 Budget initiative to impose GST on low value imported goods be delayed 12 months to 1 July 2018.
This Budget continues the theme of tax integrity measures by requiring that, from 1 July 2018, purchasers of new residential premises remit the GST amount directly to the ATO as part of the settlement process.
This announcement comes as a surprise and is a significant divergence from the way the GST system currently operates whereby purchasers pay the GST amount to the supplier as part of the total purchase price and the supplier is required to remit the GST to the ATO.
KPMG recalls that around 4 years ago, ATO compliance programs targeted illegal phoenix activity purportedly from a number of property developers who repeatedly placed companies in liquidation with outstanding GST obligations, despite having claimed input tax credits on construction costs.
However, KPMG is not aware of recent industry consultation on the issue of developers failing to remit GST on sales of newly constructed residential properties.
In the absence of such consultation, we question the practicality and administrative cost of imposing GST on unregistered ‘mum and dad’ purchasers.
Where developers use the margin scheme to calculate the GST liability, the purchaser is unlikely to be aware of the amount of GST included in the purchase price.
This measure will therefore require developers to change the way they disclose the price of newly constructed residential properties to ensure the GST liability is disclosed as a separate line item to enable the purchaser to remit the appropriate amount of GST.
Those involved in the settlement process (e.g. financiers, lawyers and conveyancers) will also need to be mindful of their obligations in terms of ensuring that purchasers meet their obligations.
What is not clear from the Budget papers is what penalties or avenues of recourse are available for the ATO in the scenario that a purchaser fails to meet its obligation to remit the GST amount to the ATO (whether inadvertently or deliberately).
The Budget papers state that this measure is estimated to increase GST revenue by $660 million and associated payments to the states and territories, net of administrative costs, by $1.6 billion over the forward estimates period (4 years to 2020-21).
However, the Budget papers state that the difference is due to the timing of when GST is collected and recognised.
This suggests that it is not a permanent GST difference, which is seemingly at odds with the government’s statement that some developers are failing to remit the GST to the ATO.
In another integrity measure, legislation will be introduced to give effect to previously announced changes to combat GST fraud in the precious metals industry.
Similar to the integrity measures in relation to the sale of new residential properties, these changes require a buyer of gold, silver and platinum to remit the GST to the ATO instead of the seller.
Changes are also made to clarify that gold, silver and platinum are not second-hand goods, to ensure that GST registered entities do not incorrectly claim input tax credits when acquiring gold, silver or platinum, regardless of its form.
These changes to the GST law are said to target criminal activity and not genuine participants in the second-hand jewellery and collectibles market.
This measure is estimated to have an unquantifiable gain to GST tax revenue as it ensures the GST payable is collected as intended and does not affect the amount of GST payable.
In a welcome measure that follows significant consultation and discussion with industry groups, the government will align the GST treatment of digital currency (such as Bitcoin) with money from 1 July 2017 to ensure it is no longer subject to GST.
This will eliminate double taxation in circumstances where GST applied to the purchase and trade of the digital currency.
This measure is estimated to have a small but unquantifiable decrease in GST collections and is said by the government to remove an obstacle for the Financial Technology (Fintech) sector to grow in Australia.
Kate Law is a KPMG Indirect tax partner and can be contacted <a href="https://home.kpmg.com/au/en/home" target="_blank">here</a>.
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GST on new property transactions to be collected by purchasers: Kate Law

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Five fully leased Victorian childcare centres have sold for more than $44 million – an average of $8.8 million each — have set new national benchmarks for the sale of individual centres, according to Savills and underscoring the booming childcare market. 
The five centres at Ashwood, Mentone, Blackburn North, Hughesdale, and Carnegie – all in Melbourne’s east, were listed last month as a whole or individually in the first such sale of its type in the Melbourne market. 
Their listing came amid the federal government’s push through its $1.6 billion childcare package reforms providing families with fee relief of up to $3,400 a year.
All the centres offered long, secure leases, blue-chip tenants, and modern buildings underpinned by strong land values, said the selling agents from Savills.
The five childcare centres generated an average 5.3 per cent yield. 
The previous record sale price for an individual centre in Australia was $7 million for a Vermont property in March and before that the $6.8 million paid for a property at Camberwell in March last year, also through Savills.
According to Savills’ Julian Heatherich, who marketed the properties with Clinton Baxter and Benson Zhou, expectations the centres would sell for $7 million to 9 million each, or $50 million for the whole portfolio had been borne out with two properties selling for more than $8 million and three for more than $9 million.
“This was a brilliantly assembled portfolio combining exceptional landholdings, quality buildings, geographic diversity and a tenancy profile that is rarely available elsewhere in the commercial property market,” said Heatherich.
“Put this together with built-in rental growth and significant income tax depreciation benefits in a rapidly growing, government backed industry and they represent great value and that was reflected in the results so far.’’ 
The five centres include:
<ul>
<li>66-70 High Street Road, Ashwood -   15 year lease at $486,218 pa net – sold $9.1 million on 5.34% yield</li>
<li>105A Kangaroo Road, Hughesdale (above) -   20 year lease at $545,879 pa net– sold $9.75 million on 5.6% yield</li>
<li>103-107 Koonung Road, Blackburn Nth -  20 year lease at $498,015 pa net– sold $9.28 million on 5.37% yield</li>
<li>1 Toolambool Road, Carnegie -   20 year lease at $438,697 pa net– sold $8.2 million on 5.35% yield</li>
<li>37 Venice Street, Mentone -   20 year lease at $367,822 pa net– sold $8 million on 5.44% yield</li>
</ul>
The tenants include several leading companies, including the ASX-listed G8 Education, national provider, Guardian Early Learning, and Nino Early Learning Adventures.
He said investor appetite for well-located childcare investment properties was as strong as ever, with an increasing number of local and off-shore investors appreciating the combination of fundamental investment attributes available within this booming sector of the market. 
Heatherich said key drivers of the childcare market had been the rapidly growing nature of the childcare sector, the confidence that comes from the strong support the sector has from the federal government, and Victoria’s strong population growth.
An estimated 1.67 million children attended approved care in 2015‑16, while approximately $7.3 billion was provided by governments in childcare fee assistance, according to Department of Education and Training data.
The commercial childcare property market has grown into a standalone asset class over the last few years with occupancy levels positive and income levels stable, adds Ray White Commercial’s head of Research, Vanessa Rader.
In New South Wales, the demand has continued to be robust in 2017 with strong yield compression, particularly in metropolitan Sydney, according to research by Ray White Commercial.
The real estate agency's NSW director, Michael Ajaka, said almost $120 million changed hands in the NSW childcare market in 2016 with 80.22 per cent of assets located within metropolitan Sydney.
“The start of 2017 looks to continue this increase in activity with the first four months representing more than $25 million in sales with a heavy weighting (61.03 per cent) towards regional areas,” Ajaka said.
 
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Five Melbourne childcare centres set record with $44 million sale: Savills 

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The Federal Budget has given seniors a nudge as part of its attempts to ease housing affordability by getting them to downsize. 
From July 1, 2018, people aged 65 and over will be able to make a non-concessional contribution (NCC) of up to $300,000 from the sale of their principal residence into their superannuation, if they have lived there for at least 10 years.
With this move, the government aims to encourage empty nesters to downsize to free up more multi-bedroomed properties.
The downsizing contributions will be outside of existing contribution caps, and both members of a couple will be able to take advantage of the measure from the same home. The scheme is expected to cost the government $30 million in lost revenue over the forward estimates period, News.com.au reported.
The new incentive is in addition to concessions already permitted and will be exempt from the age test, work test and the $1.6 million balance test for the NCC.
The measures apply from July 1, 2018.
The budget measure has been welcomed by the SMSF Association.
Association Chief Executive Officer John Maroney it would allow a couple to contribute up to $600,000 from the sale of their home to superannuation outside of the existing caps and balance restrictions.
"This means people can make a significant top-up contribution to their super funds, allowing them to fund a dignified and secure retirement,” he was cited as saying by moneymanagement.com.au.
"While the measure may not be a significant trigger to encourage downsizing, we welcome the ability for older Australians to top up their superannuation where downsizing their home provides them with funds to do so.”
But there are concerns for down-shifters on how the extra super assets would reduce their part-pension entitlement.
SMSF Association head of policy Jordan George had advised caution about such a move ahead of the budget.
“Incentives to encourage people to downsize their home is a sensible idea,” George told selfmanagedsuper. 
But while the exemption was a good idea in principle, George said it was crucial to consider any ramifications of such a measure for people’s pension entitlements. 
“The assets test for the age pension when people downsize and the profit from downsizing may affect their entitlement to the age pension – that could become a significant issue,” he noted. 
KPMG tax partner Damian Ryan said allowing older couples downsizing to contribute to their super funds was welcome news.
"This will allow some older Australians to sell the family home and contribute some of the proceeds into superannuation,” he said, adding, “Those on the age pension are unlikely to take up this initiative.”
He said the measure would be attractive to a group of members who would like to sell their family home but due to contribution caps would have been prevented from topping up their superannuation balance, essentially transferring funds from one tax-preferred asset to another.
Also, residence requirements for the Age Pension and Disability Support Pension are increasing to 10 years continuous residence, including five of a person’s working life, which will affect about 2,400 people.
 
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