Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

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>

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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:
Australian GDP rose by 1.1 percent in the December quarter 2016, following a 0.5 percent decline in the September quarter and beating market expectations (of a 0.8 percent rise).
Annual growth was running at 2.4 percent in December, which is below potential growth of around 2.75 percent. The key points from the GDP data are:
Much stronger-than-expected consumer spending growth of 0.9 percent quarter on quarter (contributing 0.5 percentage points to fourth quarter growth). The retail data showed a moderate contribution to spending from retail sales but the pick-up in household consumption was quite broad-based across services (recreation &amp; culture, transport services, health services, rent).
The household savings ratio fell further to 5.2% in the December quarter, well down from around 9% in recent years. The wealth effect from the surge in dwelling prices has encouraged households to draw down on their savings in the face of weak income growth, but given already very frothy housing market conditions in Sydney and Melbourne it’s hard to see this trend extending for much longer. Basically wages growth will need to pick up or else consumer spending will slow back a touch;
A rebound in dwelling investment (contributing 0.1 percentage points to fourth quarter growth), as expected, given the positive pipeline of residential construction still to be completed. This positive trend from residential construction will continue in 2017, albeit at a slowing pace;
Better-than-expected private business investment (contributing 0.2 percentage points to fourth quarter growth). Non-residential building growth was stronger than forecast, engineering construction rose (despite partial indicators suggesting a fall) and machinery and equipment capital spending also improved. The quarterly capital expenditure survey showed that mining capex has further downside over the next year and non-mining capex growth will be subdued so business investment growth is still likely to be constrained; Public spending contributed 0.3 percentage points to fourth quarter growth because of a solid lift in investment (following a large fall in the prior quarter). State capex budgets show that government investment are likely to remain elevated for the medium-term; Inventories detracted 0.2 percentage points from growth, as expected; and Net exports contributed 0.2 percentage points to growth, also as expected, with both export and import_ volumes lifting in the December quarter.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/image003.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/02/image003.png" width="729" height="475">
Source: ABS, AMP Capital
 
IMPLICATIONS: 
The overall sense from the GDP and the broader activity data is that the Australian economy remains in okay shape, but it’s hard to see a sharp further reacceleration of growth in the near-term. We see growth averaging around 2.5-3% in 2017. Mining investment will remain a drag on growth, housing investment is positive but slowing, net exports will be a positive driver of growth but consumer spending may still be constrained.
The big positive for Australia is in the sharp turnaround in nominal GDP - which is a measure of GDP that also allows for changes in prices. Nominal GDP was up by 3.0% in the December quarter and 6.1% over the year which is due to the surge in commodity prices recently. The upswing in nominal outcomes is also evident in the uplift in company earnings, observed in the just completed company reporting season.
The strength in nominal incomes will flow through to governments and businesses, but the flow back to households may be limited given the constrained Federal budget and uncertainty around how long commodity prices can remain elevated. 
The turnaround in Australia’s nominal income story, better activity data, stability in the labour market and excessive strength in the Sydney and Melbourne housing markets means that it will be hard for the RBA to cut the cash rate again in the months ahead unless we see a further leg down in underlying inflation. As a result we are dropping our forecast for another rate cut in May. Our base case is now for rates to be on hold this year. That said if the RBA is to do anything on rates this year a cut is more likely than a hike given the downside risks on inflation. A rate hike is unlikely until later next year.
CoreLogic dwelling price data today showed that the momentum in Sydney and Melbourne housing markets is not slowing down, with Sydney dwelling prices up by 18.4% over the year and Melbourne 13.5% higher (see chart below). Housing affordability issues are now reaching a critical point in Australia and Australian governments should up their efforts around this issue – with the May Federal Budget providing a good opportunity.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/image007.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/02/image007.png" width="743" height="484">
Source: ABS, AMP Capital
 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
 
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Australia avoids recession as growth rebounds: Shane Oliver

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GUEST OBSERVER
Approvals rose 1.8 percent in Jan, retracing most of a downwardly revised 2.5 percent fall in Dec.
The result was above market expectations of a 0.5 percent dip.
As always, January housing data should be treated with extra caution as the summer low season amplified what are already volatile month to month estimates.
Adding to this, the detail showed the Jan monthly gain was driven by ‘units’ – the lumpier, more volatile component up 6.2 percent/mth. In contrast, private detached house approvals were down 3 percent.
Looking by state, the rebound was led by a 24 percent jump in NSW, again suggesting volatility and seasonal adjustment are exaggerating the picture here.
Notably, the weakness in private sector house approvals was broadly-based with all the major eastern states recording declines. 
Details  Private houses  -3%mth, -9.4%yr Private 'units'    6.2%mth, -14%yr          
NSW     24%mth, 9.4%yr Vic       -5.3%mth, 1.5%yr Qld       -11.9%mth, -45.4%yr WA       3.5%mth, -21.8%yr SA        6.5%mth, -16.9%yr       
Alteration &amp; additions^   -17.7%mth, 2.4%yr Non-residential^                         -14%mth, -13.8%yr ^ value 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Australian dwelling approvals approvals rise 1.8 percent in Jan: Matthew Hassan

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GUEST OBSERVER
Suspicion of Chinese corporations investing in Australia is not well justified when you consider the growth of private enterprise in China and the state of the Chinese Communist Party.
The fierce public debate about Chinese corporations investing in Australia is spurred by several misleading ideas about how much control the Chinese government has and its intervention with private businesses. 
The fact is, massive privatisation has been ongoing in China since the 1980s, involving millions of business enterprises. Currently around 70 percent of Chinese industrial output is now produced by non-state controlled business firms, and over 80 percent of the industrial workforce in China is now employed in the private sector. 
Private enterprises have been the growth engine of the Chinese economy, providing 95 percent of the growth of the urban workforce in the past three decades, and many now compete with state-owned conglomerates for brand recognition and size. Inevitably, private firms have started expanding overseas to find new markets and diversify their investments.
A common claim is that despite many Chinese investors being private corporations, they are still effectively controlled by the governmentthrough the Chinese Communist Party.
It’s true that if there are more than three party members within any organisation in China, those members have the right to set up a Communist Party branch. This includes employees of private corporations, and there are currently party branches within approximately 13 percent of private Chinese firms, a figure which rises to 53.1% among larger private firms. 
But this does not necessarily result in party control over those corporations’ business decisions. Li Zhangzhu, the Deputy Secretary of the Chinese Communist Party branch within Yuanfang Group, a large private firm based in Henan Province, declared:
"What the boss of a private enterprise cares about most is business results. The boss will only pay attention to and support [Chinese Communist Party] building if it helps to promote the growth of the business and increases profits."
Academic Bruce Dickson found that attempts to build the Communist Party’s presence in the private sector actually promoted private business interests rather than those of the party’s leadership. 
The Communist Party simply cannot afford to alienate private entrepreneurs because it relies on them to deliver continuing economic growth and provide employment. Without this the party would lose its legitimacy and power. 
A recent survey of several hundred private Chinese corporations by Fan Xia of Shandong University found that if there was a time conflict between an activity scheduled by the firm’s Communist Party branch and their regular work duties, 91.8% of CCP members in private firms would not participate in the party activity unless their CEO gave them permission. 
Another assumption is that the party and the central government control Chinese society with an iron fist). In fact, there is plenty of evidence of massive corruption and policy divisions that cast doubt on whether the party can even control itself. 
In the current anti-corruption campaign, more than 447,000 Communist Party officials have been investigated since 2012, with over 230,000 of these criminally prosecuted in the courts, ranging from the lowest level apparatchiks right up to politburo (policy-making) members, Supreme People’s Court justices and military generals.
Some senior Communist Party officials have been convicted for accepting bribes totalling tens of millions of dollars, according to Chineseand Western media sources.
Many of these bribes were paid in return for promotions within the Party hierarchy or government bodies. For instance, 45 representatives were expelled from the National People’s Congress in September 2016, after evidence emerged that they had used bribery to obtain their nominations; and 454 delegates (out of 612) were expelled from the Liaoning Provincial People’s Congress for similar reasons. 
Research suggests that the party has lost control over its own personnel system and cannot guarantee that its officials are competent or honest. It also explains why a government communique in 2016 referred to many “dangers” that may threaten the very existence of the party, “including the slacking of officials, incompetence, isolation from the people and corruption”.
Contrary to the popular misconception that China is a highly centralised state, few laws and policies are enforced in a uniform way throughout the country. 
For example, in Shenzhen, a Southern Chinese city with over 10 million people, half the buildings within the city have no legal titles and have been rented or sold to millions of people illegally. Relying on the illegal private housing market was the only way for the local government to provide sufficient housing for the millions of migrants arriving in Shenzhen from other parts of China over the past three decades.
This example of decentralised decision-making also counters another assumption about large-scale investment by private Chinese firms in Australia - that it’s part of a “unified” Chinese government strategy to undermine our national security. 
In fact, outward foreign investment from China has become increasingly decentralised, so that the vast majority of investments under US$1 billion are now approved at provincial or municipal government levels. There is also a lot of competition between different Chinese regions and provinces in seeking the economic benefits of investment overseas. 
There needs to be more acknowledgement of the complexity of the influences at play within Chinese corporations rather than just jumping to the conclusion that all are controlled by the Chinese government. Especially if these businesses are bringing economic benefits by investing in Australian businesses and infrastructure.
Colin Hawes is associate professor, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/colin-hawes-111743" target="_blank">here</a>.
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China’s private companies are unjustly labeled as Communist Party plants: Colin Hawes

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Nearly 15,000sqm of developable land in Perth’s southern suburbs has been listed for sale with expectations of around $2.1 million.
The land, 535 Millar Road, Wellard, is 38km south of Perth and fronts the Kwinana Freeway. 
Ryan McGinnity from CBRE said the opportunity came at time when Western Australia’s residential market had received a considerable boost with changes to the First Home Owners Grant.
“Given the State Government’s recent decision to increase the First Home Owners Grant to $15,000 for new builds, residential development opportunities in high growth suburbs such as will be of strong interest to developers,” he said.
“With development approval to accommodate 22 green title lots, this property presents an attractive opportunity to undertake a residential project in a proven growth area.”
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Residential development land in Perth's Wellard growth zone listed

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The brains behind the world's biggest all cross-laminated timber building, architect Andrew Waugh from Waugh Thistleton is coming to Australia to discuss future building materials following his experiences building Dalston Lane. 
Dalston Lane (above) is a 121-unit development made of cross-laminated timber (CLT) structure and will become tallest of its kind in the UK once built. It will feature over 12,500 sqm, of residential space and over 3,460 sqm of commercial space.
Dalston Lane is built of cross-laminated timber (CLT).   CLT experts have calculated that the building will save 2,400 tonnes of carbon, compared to an equivalent block with a concrete frame.
By using CLT construction, the embodied carbon is 2.5 times less than that of an equivalent concrete frame. Taking into account that timber stores carbon by absorbing carbon dioxide (CO2) from the atmosphere, which is also known as ‘sequestered carbon’, the structure can be considered as ‘carbon negative’.
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The future of timber building

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A second two bedroom display suite at Parramatta's 20 storey residential development V by Crown Group has been opened.
The new display suite is located on level 20 and features two bedrooms, a study, a living and dining area and views across Parramatta Square to Sydney’s CBD.
It also includes LED strip lighting, SMEG appliances, mirrored splashbacks, LED strip ‘accent’ lighting and stone bench tops.
When completed, V by Crown Group will have 590 apartments, pool, gym, sauna, conference facilities, music room, theatrette, a library and a retail and restaurant precinct.
The development, designed by Sydney-based Allen Jack + Cottier and Koichi Takada Architects, won the Five Star Award for Residential High Rise Architecture Australia at the 2016-2017 Asia Pacific Property Awards.
<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/2017/01/17/VBC_Display_1_Apartment_009_LowRes.jpg" width="700" height="425">
Display apartments at V by Crown Group are available for inspection seven-days-a-week from 10am - 4pm.
For more information please visit <a href="https://www.crowngroup.com.au" target="_blank">www.crowngroup.com.au</a>.
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Parramatta’s V by Crown Group opens second display suite

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House and land packages at Sovereign Pocket, Deebing Heights, 10 minutes from Ipswich CBD, are on the market from between $150,900-$472,900.
The Stockland development has a range of land sizes available over 700sqm.
Surrounded by homes built by Queensland’s best builders residents will be able to enjoy the central park, its play equipment and BBQ facilities.
Great shopping and public transport are just around the corner.
Six homes, such as the one above, have already been built and are available on the on-site display village.
One home, <a href="https://www.realestate.com.au/property-house-qld-deebing+heights-124362482" target="_blank">50 Currawong St Deebing Heights</a> (above), is built by Bold and is on 498 sqm. It is on the market for $449,000.
Lot 557, Gem 138, is a <a href="https://www.realestate.com.au/property-house-qld-deebing+heights-124886890" target="_blank">three bedroom home</a> (below) on 280sqm and is on the market for $328,917.
<img src="https://www.urban.com.au/images/2017/03/3/Screen%20Shot%202017-03-03%20at%208.15.17%20AM.png" alt="">
CorelLogic estimate the median price of a home in Deebing Heights in 2016 was $385,000.
For more information, <a href="https://www.stockland.com.au/residential/qld/sovereign-pocket/life-at-sovereign-pocket" target="_blank">click here</a>.
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Affordable house and land in Deebing Heights now available

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GUEST OBSERVER 
The Reserve Bank Board meets next week on March 7.
We can be certain that the decision from the Board will be to hold rates steady.
Recall the comments from the Governor in his answer to a question during his appearance before the House of Representatives Standing Committee on Economics, “At the moment the market pricing is for interest rates to be constant right through this year. That seems a reasonable proposition to me.... The central scenario of a period of stability of interest rates is quite reasonable to me.”
Now we have never framed our medium term forecasts around the views of the Reserve Bank – after all they are only “mortal” forecasters like the rest of us . Their forecasts can go awry and policy can change accordingly. But for the immediate future ( like next week) we can take the Governor’s views as definitive.
Our view since the rate cut in May last year has always been for a follow up move in August and the steady rates throughout the remainder of 2016 , 2017 and 2018.
We assess that at least the Governor currently has that view for 2017 but has not commented on the market implied two rate hikes in 2018.
His growth forecast in 2018 is 2.75 percent-3.75 percent (down from 3-4 percent) well above our forecast of around 2.5% (with downside risks). Achieving the RBA’s growth forecast in 2018 might be consistent with market pricing but, certainly, our forecast for a slowdown in 2018 is not consistent with rate hikes – below trend growth signals steady rates at best.
In his comments to the House the Governor considers the case for rate cuts in 2017. He points out that inflation is below the target range ( “a bit low”) and the unemployment rate is “a bit high”. We would assess full employment at around 5% so, at 5.8%, there is clear excess capacity in the labour market. Of course, that spare capacity is further emphasised in the latest wages report which showed wages growth at a record low of 1.8 percent.
However, his clear problem with leaning further on interest rates is “The main effect (of a rate cut) would be more borrowing for housing, pushing up house prices...”.
His concerns with the impact of rate cuts on the housing market are well based.
Consider figures 1 and 2.
Figure 1 shows recent trends in house prices in Australia. The recent periods of rate cuts (first half of 2015 - February and May) and second half of 2016 (rate cuts in May and August) are associated with significant increases in house price inflation. However, note the trends in the intervening period. These will not be lost on the Governor.
During the period (second half of 2015) when the Bank and APRA imposed macro prudential guidelines to slow the pace of lending to investors the pace of house price inflation (national) slowed from 13.7% (six month annualised to August 2015) to zero (6 month annualised to March 2016). In response to the May and August rate cuts house price inflation has lifted to 10% (6 month annualised to February 2017). 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/Screen%20Shot%202017-03-02%20at%2011.52.00%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/02/Screen%20Shot%202017-03-02%20at%2011.52.00%20AM.png" alt="">
Figure 2 shows a similar trend for new lending for housing (key to Governor’s concerns about rate cuts just boosting household debt). In response to the rate cuts in 2015 new lending for housing peaked at $26.8 billion in August 2015 . It subsequently slowed to $23.8 billion by January 2016 (down 11%) only to pick up to $27.1 billion (up 14%) by December 2016 in response to the May and August rate cuts.
The conclusion that the Bank would have reached is that macro prudential policies do work and rate cuts stimulate prices and credit despite rates being so low.
Little wonder that the Governor noted at the Hearing when referring to recent macro prudential policies, “For us, that is a first order thing that we can do to limit the growth rate of investor credit and, I think, that has been a successful public policy intervention.” 
I assess that, given that both Sydney and Melbourne prices are up 14% (six month annualised – Core Logic data) the Bank and APRA may be considering even tighter macro prudential policies.
It is not only inflation and the unemployment rate that would be of concern to the Reserve Bank.
Throughout the Hearing he indicated a preference for a lower Australian dollar. He accepts that the AUD is probably around fair value but questioned the feed-back to activity from higher commodity prices with miners apparently reluctant to increase capacity and wage pressures in the sector continuing to ease.
He has also adopted a more conservative attitude to the consumer, expecting that the recent falls in the savings rate are unlikely to be sustained.
Most of this “mood” does not sit well with the expectation that growth will lift in 2018, particularly in the face of a downturn in residential construction. His “faith” that non mining investment will lift to reflect tightening capacity utilisation is not convincing particularly with the higher AUD and a more cautious consumer.
Overall we saw little in the comments at the Hearing to sway our expectation of a slowing economy in 2018. If, as we expect, the Bank will get around to adopting additional macro prudential policies to slow housing in the second half of 2017 the stage will be set for another year of steady rates in 2018.
With the economy slowing and macro prudential policies further tightening housing markets, the risks to rates in 2018 will be to the downside rather the upside as currently expected by markets. 
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. 
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RBA to hold interest rates next week: Westpac's Bill Evans

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Adult children inheriting or gifted wealth from their parents are more likely to start businesses, hold bachelor’s degrees and have more money in the bank, says a new study. 
 
The report A new look at the channels from housing to employment decisions, by RMIT University and Curtin University researchers working on behalf of the Australian Housing and Urban Research Institute (AHURI),
 
The report was authored by Melek Cigdem-Bayram and Gavin Wood of RMIT University and Rachel Ong of Curtin University.  
 
 explored how inter-generational wealth transfers, which are typically financed through housing wealth, influence the education and work careers of beneficiaries. 
 
The report shows that although the proportion of beneficiaries in the labour force is roughly the same as non-beneficiaries, a significantly higher proportion of beneficiaries are self-employed, said Professor Wood.
 
“Young Australians that receive inherited wealth and parental cash transfers financed from housing wealth are being helped by booming house prices,” Professor Wood said. 
 
“They have more financial assets that can act as a buffer to meet income shocks, and collateral to relax borrowing constraints. Therefore, they may be more likely to take risks, like financing their own business ventures.” 
 
Nearly 1.8 million Australians inherited money at least once between 2002 and 2012, with the average amount of each inheritance being $79,000. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/MumDadTable8.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/02/MumDadTable8.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/MumDadTable9.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/03/02/MumDadTable9.png" alt="">
 Beneficiaries of parental cash transfers also have average bank deposit account balances that are more than double those of non-beneficiaries, and their average net investment income is roughly one-third higher, the report stated. 
Children who received cash transfers or bequests from their parents are also more likely to hold a bachelor’s degree.
While this may seem like good news for young Australians lucky enough to be recipients of housing wealth, this could entrench and even exacerbate inequality in lifetime economic opportunities, says Professor Wood. 
“Intergenerational transfers are an important feature of contemporary family life and housing wealth is an important direct or indirect funding source for these transfers,” Professor Wood said. 
“The evidence presented in this report confirms expectations that intergenerational transfers help beneficiaries to ‘get ahead’. 
“But if intergenerational transfers become increasingly important as a pillar supporting educational, housing and business start-up opportunities, policy-makers will need to heed the consequences for those children of less well-off parents who are bypassed by the intergenerational circulation of housing wealth.” 
 
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‘Bank of Mum and Dad’ helps kids also get ahead in education and business start-ups

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The results of The Wealth Report Attitudes Survey, which this year are based on responses from almost 900 of the world’s leading private bankers and wealth managers, offer an window on the issues that are influencing UHNWI investment and lifestyle decisions, according to Knight Frank’s latest report.
According to the Attitudes Survey, only 15 percent of UHNWIs use private aviation for the majority of their business and personal flights.
However, the pattern varies widely around the world.
Latin America’s wealthy residents, perhaps worried about the risk of kidnapping, are the biggest users, with 40 percent opting to go private.
Just 4 percent of Australasian UHNWIs regularly choose to take a private jet, and in Asia their usage still lags behind the region’s rapid rise in wealth creation – only 9 percent of UHNWIs routinely travel on non-commercial flights.
<a href="https://www.propertyobserver.com.au/images/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.30%20pm.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/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.30%20pm.jpg" alt="">
In-depth data supplied by industry analysts JETNET and WINGX, confirm these broad patterns, but also reveal some striking emerging trends.
While the US (12,717), Mexico (950) and Brazil (786) are the top three nations by some margin when it comes to fleet size, JETNET’s figures show numbers are rising fast in Asia.
Hong Kong (+535 percent), Taiwan (+367 percent), China (+347 percent) and Macau (+300 percent) all feature in the top 10 list of locations where growth has been fastest over the past 10 years. China, with 277 jets, now claims eighth position in overall ownership levels.
In terms of flight numbers America dominates – over 75 percent of the world’s 1,000 busiest routes are within the US.
“Business aviation is deeply embedded as a complement to and in some cases a replacement for scheduled airline services,” says Richard Koe, Managing Director of WINGX.
“It wouldn’t be unusual for a firm with a turnover of US$50m to have its own plane,” confirms Hardy Sohanpal of international operator Global Jet Concept.
<a href="https://www.propertyobserver.com.au/images/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.43%20pm.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/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.43%20pm.jpg" alt="">
As our data shows, geopolitics can have a major impact on private aviation. Traffic between Cuba and the US, for example, has taken off sharply since 2012, while the opposite is true of flights between Russia and Ukraine.
Looking ahead, the Chinese market is set to see strong growth, says Mr Koe.
“The government is starting to see the importance of business jets as a competitive tool to support corporations in pursuit of regional trade opportunities.”
There is also the potential for growth in the US depending on how the new administration’s policies play out, adds Mr Sohanpal.
“We have had a number of enquiries recently from construction and finance companies.”
But growth in Latin America is likely to be more muted, particularly in oil-dependent countries like Venezuela, he notes.
“There are a lot of aircraft being put up for sale at the moment and now is the perfect opportunity to trade up or buy first time.”
<a href="https://www.propertyobserver.com.au/images/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.58%20pm.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/1/Screen%20Shot%202017-03-01%20at%201.26.58%20pm.png" alt="">
Globally, however, private jet numbers are likely to rise as the desire to travel efficiently with maximum privacy becomes more of a priority for corporations and private individuals, says Mr Sohanpal.
“The introduction of new apps and charter models that are competing to become the Uber of the airways is also likely to attract those who shuttle frequently between cities travelling first or business class.”
Definition: UHNWI: Ultra-high-net-worth individual – someone with a net worth of over US$30m excluding their primary residence and HNWI: High-net-worth individual – someone with a net worth of over US$1m excluding their primary residence.
 
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