One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

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>

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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?

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ING Direct has cut its lowest variable rate home loan for owner-occupiers by 15 basis points. ING’s Orange Advantage loan has been reduced to 3.79 percent, effective today.
They are for owner-occupier loans with a minimum LVR of 80 percent. Fixed rate changes include a rate of 3.69 percent available for a three-year fixed term.
For more information, <a href="https://www.ingdirect.com.au" target="_blank">click here</a>.
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jchancellor-FAypfDUnLy

ING drops variable rate to record low 3.79 percent

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REINSW and the Law Society of NSW have created a new edition of the Contract for Sale and Purchase of Land 2016 to comply with new legislation.
The new version highlights a law which was brought in on 1 July 2016, affecting foreign residents purchasing a property over $2 million.
Under the new law, vendors selling a property for over $2 million will need to apply for a clearance certificate to avoid the purchaser withholding 10 percent tax from the purchase price.  
It also affects companies buying a property, if any of the owners are a foreign resident. Find out more <a href="https://www.reinsw.com.au/imis15_prod/Web/Posts/Latest_News/201603/New_withholding_tax_regime.aspx?WebsiteKey=fc035f62-aa1d-4485-9a5d-f9989cc37ba9" target="_blank">here</a>.
As a result, to deal with this new law the REINSW and Law Society of NSW have updated the Contract for Sale of Land and Purchase of Land. This new edition is not available as a paper copy but can be purchased in digital form by visiting the <a href="https://www.lawsociety.com.au/ECOS/index.htm" target="_blank">ECOS </a>website.
The new 2016 edition of the contract has prompts and clauses to deal with the new withholding tax law, and also includes a warning about the new <a href="https://www.reinsw.com.au/imis15_prod/Web/Hot_topics/Swimming_Pools/Web/Posts/Topics/Swimming_Pools.aspx?hkey=0ca667d3-d548-451b-a6a0-64a0e782a0ce" target="_blank">swimming pool compliance</a>. Find out about the main changes <a href="https://www.lawsociety.com.au/cs/groups/public/documents/internetcontent/907643.pdf" target="_blank">here</a>.  
Barry Johnston, Principal of Balmoral Partners said: “REINSW CEO Tim McKibbin has spent a lot of time time lobbying the government to make sure the legislation is workable.
“The new contract reflects this - so it is best practice to make sure you are using the latest contract because it is there to protect us.”
To find out more about the Contract for Sale and Purchase of Land 2016, watch the webinar with Barry and Gary Newton, Partner in TressCox Lawyers, <a href="https://www.youtube.com/watch?v=-hxgbBC4M5Q" target="_blank">here</a>. 
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Property 101: The new NSW contract for sale

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Melbourne's median weekend house price was $860,000 with prices between $280,000 at Broadmeadows and $3.755 million at Albert Park. 
Apartments had a $600,000 median with prices between $255,000 at Broadmeadows and $1.533 million at Bentleigh.
Sydney's weekend medians were $1.35 million for houses and around $900,000 for apartments. The cheapest offering was $465,000 for a two bedroom Westmead unit with the dearest result being $3.05 million at Mona Vale.
The next highest was $2.8 million post auction in Woollahra. 
Trevor Sykes, the veteran Pierpont finance columnist, had knocked back $2.72 million when his Woollahra period home was auctioned through Debbie Donnelley of Phillips Pantzer Donnelley who secured bidding from just the two parties. The $2.8 million was paid post-auction by the underbidder for the <a href="https://www.realestate.com.au/property-house-nsw-woollahra-122992870" target="_blank">three bedroom, two bathroom house with cellar</a> (above). 
Skyes, once editor of the now defunct The Bulletin magazine, and wife, Daya had owned the Bathurst Street home on a 322 sqm corner block since 2001 when it cost $1.33 million.
Some 1,295 auctions were held across the capital cities, with 1,076 reported results so far. CoreLogic had the preliminary clearance rate of 70 percent - the same compared with last week’s result which showed 70 per cent of the 1,391 capital city auctions cleared.
"Melbourne and Sydney are once again showing the strongest clearance rates of 72 percent and 75 percent respectively," CoreLogic's Kevin Brogan noted.
"Both Sydney and Melbourne recorded a lower number of auctions this week when compared to last week.
"At the same time last year, the number of auctions held was still substantially higher at 2,143 with a success rate of 74 percent."
There were 918 Melbourne auctions held at the same time last year compared to the 550 on the weekend. 
Sydney was host to 448 auctions this week, and much like Melbourne, auction volumes in Sydney this week are substantially lower than one year ago, when 906 auctions were held across the city.  
Brisbane was next busiest, and its volumes were comparable to last year. There were 135 Brisbane auctions, compared to last week’s 120 auctions and 163 auctions last year. The preliminary clearance rate was 53 percent this week, up from 47 percent last week. At the same time last year 54 percent of Brisbane auctions were successful.   
But one Brisbane auction did not proceed as the two bedroom cottage with waterfront views at Victoria Point was badly burnt just hours before going to auction on Saturday.
LJ Hooker Birkdale agent Debbie Ward called the absentee owner with the news <a href="https://www.realestate.com.au/property-house-qld-victoria+point-122998470" target="_blank">4 Colburn Avenue</a> was gutted (pictured below).
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%209.03.19%20AM.png" alt="">
She made the phone call about 10.40am just ahead of the scheduled 1pm auction at 1pm which was cancelled.
The Gold Coast’s preliminary results show a clearance rate of 62 percent across 21 reported auctions, but all the action has been private treaty sales that have all given the prestige market some momentum.
A $15.5 million sale has been secured for a home on the Isle of Capri.
The sale of <a href="/expert-insights/buying/15-5-million-gold-coast-trophy-home-sale-highest-since-gfc">57-59 The Corso to Chinese buyers</a> is the highest price achieved on the Gold Coast since 2009 (below). 
<img src="/images/2016/07/25/700_capri.jpg" alt="">
The two-level semi-Balinese style mansion was first was marketed three years ago as having a replacement cost in excess of $20 million.
Meanwhile after selling his Cronin Island home, Summer House for $11 million (reported on the New Daily last week), the entrepreneur David Baird and wife Marion have snapped up another Surfers Paradise home. 
They have spent $7 million property on Commodore Drive for a five bedroom, six bathroom home on 1124 sqm.
It has a floor area of more than 800 sqm, spread over four levels.
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Reduced Sydney and Melbourne auctions continue to underpin market strength

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GUEST OBSERVER
The minutes of the July monetary policy meeting of the Reserve Bank Board confirmed the importance of next week’s June Quarter inflation report.
The key sentences in the concluding paragraph of the “Considerations for Monetary Policy” section state: “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”
So the minutes clearly leave the door open for another rate cut in August.
But this will depend upon the June quarter inflation report’s estimate of underlying inflation. The upper bound below which a rate cut can be expected is likely to be 0.5%.
Westpac’s forecast for underlying inflation in the quarter is 0.35 percent (up slightly on our preliminary estimate of 0.30 percent) which would support the need for another move given that core inflation would only have risen by 0.55 percent over the course of the first half of 2016, raising a genuine question mark as to whether even the Bank’s current 1.5 percent/yr mid-point forecast for December 2016 could be achieved. A lower result for 2016 would also place their 2.0 percent forecast for 2017 (the bottom of the 2-3 percent target range) in jeopardy.
What are the risks to our forecast and what is the level of June quarter inflation above which the Bank would keep rates on hold?
The tone of the minutes indicates that the Bank may be leaning toward another rate cut and may have a bit more flexibility on the inflation result than we had expected.
It is useful to note the Bank’s own expectation for the print.
In the Statement on Monetary Policy in May, it forecast underlying inflation would print 1.5 percent for the year to June. With nearly 1.0 percent already being reached in the first 3 quarters, we can conclude that the Bank is expecting a 0.5 percent print for underlying inflation in the June quarter. That result would therefore be interpreted by the Bank as being in line with its overall inflation outlook, which is for underlying inflation to print 1.5 percent for calendar 2016 and 2.0 percent for calendar 2017.
The result would provide support for its forecast changes in May and indicate that it had not overreacted to the very low print of the March quarter.
Recall that the May forecasts assumed “market pricing” on interest rates, which incorporated a fully priced second rate cut by early 2017.
I think it is therefore reasonable to conclude that a 0.5 percent print for underlying inflation, although representing a sharp jump from March’s 0.2 percent print would be consistent with a follow up rate cut at the August meeting.
Another way to look at it is that 0.5 percent would still represent an annualised “run rate” of 2.0 percent which is still at the bottom of the 2-3 percent target band.
In the May Statement on Monetary Policy, the Bank noted “Although some temporary factors contributed to the low result, the data indicate that there has been broad based weakness in domestic cost pressures, reflecting low wage growth, heightened retail competition, softer conditions in rental and housing construction markets and declines in the cost of industry inputs such as fuel and utilities.”
Theoretically the pass through from the fall in the AUD should be an offset to these pressures, but there has been only limited evidence of that effect and the fall in the AUD is starting to fade with the currency being broadly stable over the last 12 months – clearly margin squeeze has had a considerable influence on limiting the pass through from AUD depreciation.
Our forecasts for the June quarter expect these trends to be sustained. Lower than expected results across the spectrum of components are consistent, in particular, with low wage pressures and margin squeeze. That stood out in the March quarter result.
Clothing and footwear; processed food; household contents and services and holidays are likely to continue to capture the low wages and retail margin squeeze effects in the June quarter. We have made allowance for those factors in our forecasts.
However, by far the most important driver of the outcome for underlying inflation is likely to be housing.
Because rent and housing construction costs are not volatile and/or impacted by significant one off factors, they are almost always included in the 70 percent of items which make up the trimmed mean – the key measure of underlying inflation. With a total of 15.4 percent in the overall CPI (construction costs, 8.7 percent; and rents, 6.7 percent) these two components represent an effective 22 percent of the trimmed mean – by far the highest weighting of any component.
In recent quarters we have seen a collapse in housing pressures, particularly outside of Sydney and Melbourne.
In the December quarter last year, growth in construction costs slowed from 1.1 percent the year before to 0.1 percent; in the March quarter, we saw a continuation of that weakness, printing 0.2 percent from 0.9 percent the year before.
The slowdown in rents has been more gradual. The December quarter slowed to 0.2 percent from 0.5 percent a year ago and slowed further still in the March quarter to 0.1 percent from 0.4 percent a year earlier.
Housing pressures in the June quarter will be critical for underlying inflation. In our preliminary estimates, we assumed 0.1 percent for rents and 0.2 percent for housing construction. In our final estimate, we have cautiously lifted these estimates to 0.2% and 0.3% respectively, pushing the underlying measure up to 0.35 percent – still comfortably in the “rate cut” zone.
If the underlying result printed above 0.5 percent due to housing, then one combination would be both rents and construction costs printing at 0.6 percent or above. These results would defy a clear slowing trend in rents, and indicate a possible but unlikely sharp recovery in construction costs and builders’ margins. While entirely possible (e.g. construction costs/ margins lifted from 0.9 percent to 1.5 percent between March and June last year), particularly following the lift in house prices (rather than specifically construction costs) in April/May in Sydney and Melbourne, we think the outcome would be unlikely.
Arguably, an unanticipated “spike” in housing costs and rents that offsets the wages/margins forces that have structurally driven down inflation pressures would be an unwelcome outcome for the Bank.
In the event of an upside surprise in the Inflation Report that was largely attributed to a spike in housing costs, the Bank is likely to be more flexible with its ultimate rate decision, but a print above 0.5% would still make it very difficult to justify a cut.
In that event, markets would readily switch their focus to a November cut, expecting some correction to the housing “spike”.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Housing pressures in the June quarter will be critical for underlying inflation:  Westpac's Bill Evans

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GUEST OBSERVER
 It’s now four weeks since the Brexit panic on June 24 and since then US and European shares are up 6 percent, British shares are up 9 percent, Australian shares are up 7 percent and Japanese shares are up 11 percent.
Fears around Brexit’s global impact look to have been wildly exaggerated. The only really lasting impact (so far) has been on the British pound which is down another 3 percent leaving it down 11 percent from June 23rd, which understandably reflects the negative impact of Brexit on the UK economy.
Over the past week the rally in shares generally continued with US and European shares up slightly, solid gains in Japanese and Australian shares but a fall in Chinese shares. A combination of good economic data, good US profit results, the absence of a major negative impact outside the UK from Brexit and talk of more policy stimulus in parts of the world are continuing to help. 
Bond yields were generally flat to down, commodity prices were mixed and the $A fell partly in sympathy with NZ moves towards another monetary easing. 
The talk around Japan’s planned fiscal stimulus is continuing to get ramped up with the size of the package supposedly going from ¥10trillion, to ¥20trillion to maybe even ¥30trillion which is around 6 percent of GDP albeit it depends how many years it is spread over. If as we expect it’s focussed on encouraging consumers to spend more then it should have a reasonable chance of success. 
In maybe a sign of things to come in Australia – NZ looks to be heading for another rate cut. After a surprisingly low June quarter inflation outcome, the announcement of plans to tighten restrictions on residential mortgage lending and the Reserve Bank of New Zealand stating that “a decline in the [$NZ] is needed”, the RBNZ has clearly set the scene for a rate cut next month. In fact, it doesn’t mince words stating that “it seems likely that further policy easing will be required”.
The IMF downgraded it global growth forecasts to 3.1 percent for 2016 (from 3.2 percent) and to 3.4 percent for 2017 (from 3.5 percent) on Brexit risks - but hardly a surprise. It must often strike the ordinary investor as weird that much fanfare is given to the IMF downgrading its growth forecasts but share markets seem to largely ignore it. There are several reasons for this but in essence it’s because the market (and most economists) have already moved ahead of the IMF and the IMF global growth forecasts have been starting out too optimistic for years now. 
Since early this decade they have been starting out forecasting 4 percent global growth for the year ahead only to end around 3 percent. This is not great – but it’s not bad either! Just more of the same. 
 One positive from the last week – we learned that Trumps can say thoughtful things. Not to worry that they were Michelle Obama’s. In the week ahead it’s on to the Democrat convention which may be a lot calmer. 
Major global economic events and implications
US data on a roll. Housing data was strong (with solid readings for home builder conditions, starts, sales and home prices), jobless claims remain very low, leading indicators rose more than expected and while the headline Philadelphia Fed manufacturing index fell readings for shipments, new orders and employment rose solidly. The US housing recovery likely has a long way to go as housing starts at 1.2 million continue to run below underlying demand of 1.5 million with the overbuilding of last decade having been more than worked off. Buying a house in Detroit still looks like a good proposition! 
 Evidence is continuing to build that US profits bottomed in the March quarter. 115 S&amp;P 500 companies have now reported June quarter earnings to date and so far so good with 81 percent beating on earnings and 58 percent beating on sales. While the market expects profits to fall 3 percent from a year ago, this will translate into a rise in profits of 8 percent from the March quarter.
As expected the ECB remained in wait and see mode at its July meeting. However, President Draghi referred to greater uncertainties in reference to Brexit and reiterated the ECB’s “readiness, willingness and ability to act” if necessary. We remain of the view that its QE program will be extended beyond its current expiry of March 2017. 
Eurozone consumer confidence fell only fractionally in July suggesting little impact on confidence (or perhaps it was a case of good riddance). Interestingly the ECB’s bank lending survey showed an increase in demand for loans and a further easing in lending standards which is also a good sign as the survey was conducted before and after the Brexit vote.
Japan’s manufacturing conditions PMI showed a welcome improvement in July albeit it’s still weak.
The Chinese property market recovery remains a positive for Chinese growth – with residential property prices up another 0.8 percent in June or 7.8% year on year. Tier 1 cities are seeing most the gains but Tiers 3 and 4 have picked up. Meanwhile, the MNI Chinese business sentiment index rose in July and significant flooding in parts of China could have a short term positive impact on GDP from rebuilding and may temporarily boost food prices.
Australian economic events and implications
In Australia, the minutes from the RBA’s last Board meeting confirmed that the door is wide open for another rate cut at its August 2 meeting. 
While not as direct as the Reserve Bank of New Zealand, the RBA indicated that it was waiting on further information on inflation, the labour market and the housing market and the next update of the RBA’s economic forecasts. Since it has described the labour market and the housing market as “mixed” and recent data on both suggest no reason to change that assessment, the implication from the RBA is that should we see another low inflation reading when the June quarter CPI numbers are released on Wednesday then it’s likely that the RBA will cut the cash rate from 1.75 percent to 1.5 percent on August 2. A CPI outcome of 0.4% quarter on quarter  for headline and underlying – which is what we expect - would likely be enough to see the RBA cut again.
What to watch over the next week?
The focus in the week ahead will be on monetary policy -  with June quarter inflation data in Australia providing a guide to whether the RBA will cut rates again next month and both the Fed and Bank of Japan meeting – and European banks with another round of stress tests.
In the US, we expect the Fed (Wednesday) to leave rates on hold as it seeks to gain more confidence that US growth is back on track and that the impact from Brexit will be minimal but to indicate that it still expects to raise rates in a gradual and cautious fashion. 
The US money market is only implying an 8 percent chance of a hike in the week ahead but the Fed may try and push up the market’s probability of a hike going forward which is currently at just 25 percent for September and 45% for December. With US growth averaging around 2 percent, the labour market continuing to tighten with wages growth edging higher and inflation heading up towards target we see more like a 65% chance of a hike in December. The main brake on the Fed will be if the $US rises too strongly as it amounts to a de facto monetary tightening. On the data front in the US expect to see continuing gains in US home prices, a rise in new home sales but a fall in consumer confidence (all Tuesday), softish durable goods orders and a rise in pending home sales (Wednesday), a slight edging up wages growth according to the June quarter employment cost index and a bounce back in annualised GDP growth to 2.6 percent in the June quarter (both Friday) after just 1.1 percent growth in the March quarter. Earnings will also remain a focus with over 100 S&amp;P 500 companies to report June quarter earnings.
In the Eurozone, the focus will be on the latest ECB bank stress tests (Friday) which will indicate whether banks are sufficiently capitalised or not. Italian banks of course will be the main focus, and the stress tests should help clear the way for some of them to be recapitalised. On the data front expect June quarter GDP (Friday) to show moderate economic growth of around 1.5 percent year on year and confidence readings (Thursday) will provide a guide to the impact of Brexit on business confidence. Data will also be released for bank lending (Wednesday) and core inflation (Friday) is likely to have remained around 0.9 percent year on year on July.
The Bank of Japan (Friday) is likely to announce further monetary easing as the Japanese government prepares to unveil its much talked about fiscal stimulus package. While it’s doubtful this will involve “helicopter money” (ie direct BoJ financing of government spending), it is getting close. Rather its likely to involve further monetary easing through some combination of increased ETF purchases and corporate debt purchases and a another cut in the negative deposit rate. Japanese data due Friday is expected to show continued labour market strength and a bounce in industrial production but soft household spending and inflation.
In Australia, expect another low inflation reading on Wednesday for the June quarter to clear the way for an August RBA rate cut. While headline inflation is expected to rise 0.4 percent quarter on quarter thanks to higher petrol prices and a seasonal rise in health costs this is likely to see annual inflation drop to 1.1% year on year and low wages growth and competitive pressures are likely to have seen underlying inflation rise just 0.4%qoq or 1.4%yoy which is down from 1.6%yoy in the March quarter. Export, import and producer price inflation data will also be released. June credit data (Friday) is likely to show that credit growth remains moderate with the stock of lending to property investors continuing to show slower growth.
Outlook for markets
Brexit related risks, Italian bank risks, renewed $US strength as the Fed heads back towards tightening and seasonal September quarter weakness could still see more volatility in shares in the short term. However, beyond near term uncertainties, we anticipate shares trending higher over the next 12 months helped by okay valuations, very easy global monetary conditions and continuing moderate global economic growth. 
Ultra-low bond yields (with one third of the global bond index in negative yield territory) point to a soft medium term return potential from them, but it’s hard to get too bearish in a world of fragile growth, spare capacity, low inflation and ongoing shocks. That said, the recent bond rally has taken yields to pathetic levels leaving them at risk of a snapback. Renewed expectations of a Fed hike may be the driver.
Commercial property and infrastructure are likely to continue benefitting from the ongoing search for yield by investors. 
Dwelling price gains are expected to slow to around 3% over the year ahead, as the heat comes out of Sydney and Melbourne thanks to tougher lending standards and as apartment prices get hit by oversupply in some areas. Prices are likely to continue to fall in Perth and Darwin. 
Cash and bank deposits offer poor returns. 
The Australian dollar is still higher than it should be and the longer term downtrend looks likely to continue as the interest rate differential in favour of Australia narrows as the RBA continues cutting and the Fed eventually resumes hiking, the risk of a sovereign ratings downgrade continues to increase, commodity prices remain in a secular downswing and the $A sees its usual undershoot of fair value. The $A is still likely to fall to around $US0.60 in the years ahead. 
 <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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Low inflation to clear way for RBA rate cut: Shane Oliver

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GUEST OBSERVER
Private building activity is set to soften in 2016 after strengthening in four of the past five years.
Approvals have long since declined, led lower by the office market, with recent activity levels sustained by reducing the work pipeline. We anticipate only a relatively modest moderation in private activity.
By contrast, public works - accounting for 20 percent of total activity - is beginning to recover, after the downturn of recent times. This will provide only a partial offset to weaker private sector activity.
Click to enlarge
<img src="/images/2016/07/22/Screen%20Shot%202016-07-25%20at%208.14.53%20AM.png" alt="">
Activity: Real private building activity turned down in the March quarter, contracting by 6.7 percent to be 4.4 percent lower than a year ago. That follows a 31% expansion in the five years to December 2015, including a 7.8 percent increase in 2015.
Public works began to turn higher in the March quarter, advancing by 2.7 percent, to still be 11.7 percent lower than a year ago.
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.19.49%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.19.49%20AM.png" alt="">
Total real building work contracted by almost 5% in the March quarter, to be almost 6% lower than a year, having been broadly flat in both 2014 and 2015.
Total commencements lifted to be above par in the March quarter, valued at $8.9bn, up from a 2015 average of $7.5bn and averages for the previous five calendar years ranging between $8.2bn and $8.4bn. That said, the March result is insufficient to prevent a near-term moderation in activity.
Private commencements moved broadly sideways in Q1, at $6.2bn, relative to $5.9bn on average for 2015, which is down from the three previous calendar years, ranging between $6.3bn and $6.9bn. Public commencements lifted in Q1 to $2.7bn, the strongest quarterly result in four years, and up from a 2015 average of $1.5bn. The result was boosted by health projects proceeding across Tasmania, NSW, South Australia and the ACT.
The pipeline of work outstanding has been significantly reduced since mid-2014, to be at $20bn, down from a peak of $27bn, as work progresses on major health projects and office buildings across the states. For private projects, the work pipeline at $13.9bn currently, down from $20.7bn, is approaching the lows of 2009 to 2011. For public projects, the pipeline has lifted to a still low $6.2bn, up from $4.7bn in mid-2015.
•As to the prospects for a near-term moderation in building activity, it is notable that private commencements are running 13% below the current level of work done, while for the sector as a whole, the figure is about 7 percent below.
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.25.44%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.25.44%20AM.png" alt="">
Commencements and approvals
Commencements were above par in the opening quarter of 2016, coming in at $8.9bn, up from the 2015 average of $7.5bn. Strength was evident in public projects, at $2.7bn, up from a 2015 average of $1.5bn. Notably, a number of health projects commenced in the quarter, across Tasmania, South Australia, the ACT and NSW. Private commencements tracked broadly sideways in March 2016, at $6.2bn relative to a 2015 quarterly average of $5.69bn.
Notwithstanding the positive start to 2016, the broader trend remains that commencements and approvals have taken a step lower since the first half of 2014 - albeit a relatively modest one by historical standards.
As to the more timely building approvals, these have been broadly steady of late, but are down from earlier highs - see charts opposite. In the year to May 2016, total approvals increased by 2% relative to the year prior, leaving them 14 percent below the peak in the year to February 2014. For private sector projects, approvals are 15% below the peak of early 2014, including a 5 percent decline over the past year.
The office market is a key driver - but certainly not the only driver - of building approvals and building activity. Office approvals are characterised by large swings reflecting the long lead times for often large projects. Over the past decade, office approvals have moved through two cycles, with a pre-GFC peak in 2008 of $9bn and a post-GFC peak of almost $8bn in 2013, see chart opposite. Currently, office approvals are at cyclical lows, at $3.7bn, some $4bn, 50 percent, below earlier highs.
Total building approvals are only modestly below the highs of early 2014, in contrast to the sharp retreat in the office market. This divergence reflects a number of key trends, notably: strength and the growing importance of social building projects (which includes health, education, aged cared, accommodation and entertainment); the resilience of the retail sector, as competition for the consumer dollar intensifies; and a lift in public approvals during the past year, albeit from relatively low levels.
State-by-state 
Conditions and the outlook are quite varied across the states. As at the national level, the importance of social building projects, a lift in public investment, and resilience in the retail sector together add nuances to the state-by-state picture not apparent from differences in office markets across the capital cities.
Real building work nationally declined by 6% over the past year, down $0.5bn, centred on a softening of activity in: Victoria (from a high base); South Australia; and WA - which more than offset a lift in Qld and Tasmania, while the cycle was cresting in NSW.
In the mining state of WA, building activity in 2016 has further downside, notwithstanding firmer approvals over the past couple of months. By contrast, conditions in Qld are likely to be reasonably resilient with retail and social approvals strengthening of late. In Victoria, where the work pipeline is now relatively low, much of the pull-back in activity has occurred. In NSW, a sizeable work pipeline will support activity near-term, ahead of a likely moderation - one that may be relatively mild if a round of new projects receive the go ahead. In South Australia and Tasmania, a lift in public investment will support activity going forward, particularly in Tasmania. 
 
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Modest downturn in non-residential building sector:  Andrew Hanlan

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GUEST OBSERVER
Urban and regional planning, as an institutional practice, is increasingly criticised for failing to meet ordinary citizens' needs. Enter “hacktivism”.
Fusing hacking and activism, the term has previously referred to using information technology to achieve political goals. While “hacking” often entails malicious attacks on websites, it has another meaning. Hacking also means innovative problem-solving by combining new ideas with readily available materials.
Examples include taking an old DVD and using it as a drink coaster, bending a paperclip to reset a digital device, or twisting a coat hanger to unblock a drain. These are do-it-yourself “hacks” like those of the television character MacGyver.
Essentially, hacking is creative problem-solving. “Hackathons” are a case in point. Hackathons involve the “brainstorming, designing and testing of ideas with change-makers”.
Hacktivism in this sense refers to grassroots problem-solving by like-minded people who are willing to “go round the back” of established institutions to achieve social objectives. Hacktivism reflects a growing disenchantment with mainstream institutions, pervasive neoliberalism, and cultures of consumption.
Hacktivism is different to “place-hacking” by urban explorers. Recent examples of this include guerrilla gardens, pop-up libraries, repurposinginfrastructure and even disco traffic lights and street pong.
<h2>What’s driving hacktivism?</h2>
Hacktivism can challenge the trend among governing bodies to embrace neoliberal rhetoric about fast-tracking development. Cutting “red” and “green” tape disenfranchises residents.
Debates about urban consolidation are an example. Big developers seem to be able to bulldoze communities into accepting projects, which some residents feel will destroy the places they love, overshadow backyards, reduce privacy, increase congestion and noise, or even ruin neighbourhood character.
These concerns are often dismissed as “NIMBYism” and self-interest.
But streamlined development assessment processes and “consultation” typically limit citizen engagement. Who can blame residents for getting angry?
Citizen groups, civic-minded planners, environmentalists and others are beginning to resist the privatisation of public spaces and the erosion of public functions by offering alternatives. These range from interventions such as the parklets and pop-up venues of so-called “tactical urbanism” to more “activist”-oriented responses such as a Toronto group’s subversive use of advertising billboards.
<h2>Case studies in Australia</h2>
In Australia, a small but growing cadre of residents is experimenting with hacktivism in planning. Two recent examples are instructive:
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Gold Coast Hinterland and Environment Council’s (GECKO) initiative to “hack planning” by producing a community-led climate change action plan; and
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organised community resistance to the “West Village” development in West End, Brisbane, where residents have developed their own collaborative planning processes to create an alternative vision for the site.
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West End has a history of community-based resistance to evictions and inappropriate or undesirable development. It also has a history of challenging developers and governments to engage in a more sophisticated debate around best practice in planning and development.
The West Village development proposes seven 15-storey apartment towers and a large supermarket on an inner-city lot. This project highlights the ongoing struggle for social justice in inner Brisbane in the face of rapid development.
Stage 1 of West Village was deemed code-assessable, meaning no provision for public notification and no appeal rights. The full masterplan for the site is, however, impact-assessable.
Many residents saw the development proposal as flawed and creating many serious problems. Building on existing social ties and strengths, a group of residents and interested parties have begun to create an alternative vision (“Instead of West Village”) for the site. The aim is to pressure both the developer and government to engage with their concerns and aspirations.
Residents are using an open, collaborative, community-based planning process, similar to earlier grassroots engagements in the suburb. Community-led draft masterplans have been developed and discussed at various events. These plans are contrasted against community-generated models and images of the proposed development. Public meetings and workshops have enabled input from diverse quarters.
The alternative vision is still being finalised, but the collaboration and spirit of hacktivism underpinning it transcend the importance of the alternative master plan.
This hacktivism asserts a right to the city. It demands that planning be better: more just, more sustainable, more inclusive. In doing so, communities are beginning to “hack” planning itself.
GECKO’s recent Climate Change For Good Conference is a second example. This local non-profit organisation has partnered with the Queensland government to pioneer a new model of local climate-change adaptation.
The process began with a weekend of presentations by a range of experts and practitioners. These were accompanied by community-based problem-solving workshops. The forum closed with an innovative proposal to “hack planning”.
The intent is to devise a living document that crowdsources innovative adaptation ideas from the community to meet challenges such as health, food and water security, emergent business opportunities and place-making. This offers an alternative to Gold Coast City Council’s climate change adaptation plan, which has been shelved.
The community-led plan will enable engagement with diverse groups that are often marginalised in the planning process, such as Aboriginal groups, caravan park dwellers, migrants, youth and homeless citizens.
By giving a voice to real people living in everyday places, and by drawing on citizen knowledge and ingenuity, hacktivism promises action on issues beyond the remit of traditional planning. So, how could you “hack” your city?
Jason Byrne is associate professor of Environmental Planning, Griffith University and can be contacted <a href="https://theconversation.com/profiles/jason-byrne-6066" target="_blank">here</a>.
Natalie Osborne is lecturer, School of Environment, Griffith University and can be contacted <a href="https://theconversation.com/profiles/natalie-osborne-282804" target="_blank">here</a>.
Both are authors for The Conversation.
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Urban hacktivism: getting creative about involving citizens in city planning

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Ms Jianyong (Jenny) Mao, of South Brisbane, Queensland, has appeared in the Brisbane Magistrates' Court on a charge brought by ASIC of giving documents to a lender that were materially misleading.
ASIC alleges that in May 2011, Ms Mao caused documents, including banks statements and application forms which were materially misleading, to be given to a lender in support of a home loan application. ASIC alleges that the loan was subsequently granted on the basis of these documents.   
At a hearing on 18 July 2016, the matter was adjourned to 5 September 2016.
The Commonwealth Director of Public Prosecutions (CDPP) is prosecuting the matter.
<h2>Background</h2>
Ms Mao operated a home loan broking company, Diamond Lady Group Pty Ltd (Diamond Lady Group) which held an Australian credit licence from 2010 until 2014. 
Ms Mao was charged by ASIC under section 33(2) of the National Consumer Credit Protection Act 2009 in relation to her conduct while she was engaging in credit activity. Section 33(2) (the predecessor to s160D) makes it an offence for a person engaging in credit activities to give false or misleading information or documents to another person.
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jonathanchancellor-7SQnKwU6yx

Former mortgage broker charged with giving misleading information to lender 

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Almost two thirds of Australians think now is a good time to be buying residential property and believe the housing market is vulnerable to a significant correction according to the quarterly housing market sentiment survey by CoreLogic and TEG rewards.
The survey found Melbourne stands out as the region where respondents are most optimistic about selling conditions.
Some 60 percent of respondents think now is a good time to sell in Melbourne, 73 percent think the market is ripe for selling in Victoria and 53 percent think the time is right to sell in Sydney. 
<a href="/images/2016/07/22/Screen%20Shot%202016-07-22%20at%2011.21.51%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/22/Screen%20Shot%202016-07-22%20at%2011.21.51%20AM.png" alt="">
CoreLogic research head Tim Lawless said with such a large proportion of survey respondents thinking that now is a good time to buy a dwelling, it was surprising to see almost two thirds (65 percent) also indicated they thought dwelling values could suffer a significant correction.
"While the results suggest that survey respondents are concerned there could be a substantial fall in Australian home values, the proportion is lower from a year ago when 75 percent of respondents thought the market was vulnerable to a significant correction in values," he said.
"Sydney-based respondents, where affordability constraints are the most pressing of any capital city, were the most pessimistic about whether now is a good time to buy a property, however slightly more than half the respondents still felt it was a good time to buy. 
"Conversely, the regions where dwelling values have peaked and shown a downturn are where respondents are most confident about buying conditions. 80 percent or more of respondents in the Northern Territory, Regional Western Australia and Perth indicated they thought it was a good time to buy.
"Melbourne stands out as the region where respondents are most optimistic about selling conditions, with almost three quarters of respondents indicating they thought it was a good time to sell. Based on CoreLogic data, Melbourne is continuing to show the fastest average selling time, at 34 days and one of the lowest average rates of vendor discounting."
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Aussies believe now is the time to sell a property with Melbourne the most optimistic: CoreLogic

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The Dennis Family Corporation has launched medium density development Summerlin in the northern Brisbane suburb of Banyo.
Summerlin features a range of 248 boutique apartments and contemporary terrace homes across a three-hectare precinct.
Grant Dennis, executive chairman, Dennis Family Corporation said this is the first community development of its kind and of this scale in the local area
“Our master-planned community at Summerlin will bring the best of city living to this emerging neighbourhood and capitalise on the many great attributes of the site location, which include its close proximity to both Nudgee and Banyo train stations,” he said.
Summerlin’s terrace homes will contain three bedrooms, with two or three bedroom apartments. Interiors include walk-in-robes in the master bedroom, along with a breakfast bar and tile splashbacks in the kitchen.
The first-stage market release features 26 three bedroom terrace homes, priced from just $460,000. 
Facilities including a swimming pool with integrated lap pool, sun deck, fully equipped gymnasium, residents’ lounge with kitchen, and barbecues as well as 4,000 square metres of parklands and a separate yoga lawn.
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The sales office is located at 38 Ivedon Street, Banyo. For more information phone 1800 461 860 or <a href="https://www.summerlin.com.au" target="_blank">click here</a>.
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