<p>Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;</p>

<p>The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;</p>

<p>St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;</p>

<p>Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.</p>

<p>Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;</p>

<p>"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;</p>

<p>"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;</p>

<p>Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;</p>

<p>Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;</p>

<p>The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;</p>

<p>St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.</p>

<p>[smartcode_project_cta:default project_id=151826]</p>


Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<p><a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.</p>

<p>Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.</p>

<p>The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.</p>

<p>The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.</p>

<p>Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.</p>

<p>[smartcode_project:default project_id=7574 project_image_fid=351654]</p>

<p>Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.</p>

<p>“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.</p>

<p>“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.</p>

<p>“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.</p>

<p>“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”</p>

<p>2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.</p>

<p>The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.</p>

<p>A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.</p>


Sherpa acquires new site for second Brisbane apartment tower

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>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.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>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.</p>

<p>"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.</p>

<p><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" /></p>

<p>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.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>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.</p>

<p>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.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>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.</p>

<p>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.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>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.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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;</p>

<p>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.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"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.</p>

<p>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.</p>

<p>A major focus of the design has been the public domain.</p>

<p>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.</p>

<p>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.</p>

<p data-end="239" data-start="66">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.</p>

<p data-end="442" data-start="241">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.</p>

<p data-end="661" data-start="444">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.</p>

<p data-end="909" data-start="663">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.</p>

<p><em>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></em></p>

<p data-end="1339" data-start="1019">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.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">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.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">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.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">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.</p>

<p><em>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></em></p>

<p><em>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></em><br />
&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">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.</p>

<p data-end="843" data-start="497">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.</p>

<p data-end="1109" data-start="848">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.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>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.</p>

<p>"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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


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

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


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

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

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


Every First Home Owner Grant for new property by state

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


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

Staff Writer

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

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


alisonwarters@gmail.com

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

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


Ellen Walker

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

<p>Not all apartment amenities are immediately visible.</p>

<p>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.</p>

<p>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.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>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.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>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.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><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></p>

<p>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.</p>

<p>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.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>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.</p>

<p>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.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>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.</p>


Parcel delivery is joining the apartment amenity checklist

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<p>Sydney's auction clearance rate stayed below 70 percent yesterday, but the battered McGrath Estate Agency bucked the weekend trend.</p>
<p>There was an overall 69 percent sales rate, though McGrath, whose shares were suspended from trading on Friday, secured a 75 percent success rate. </p>
<p>Sales across Sydney ranged from $340,000 for a one bedroom Surry Hills unit to a pre-auction $5.775 million five bedroom Woollahra house.</p>
<p>CoreLogic RP Data had 330 scheduled auctions given reduced school holiday activity.</p>
<p>The McGrath agency secured secured sales ranging between $395,000 at Tumbi Umbi to $3.57 million at Coogee, a contemporary five bedroom home which had been tipped to fetch $3.5 million.</p>
<p>The real estate company asked to go into a trading halt until Tuesday as its reviews its earnings forecast from when it was<span> listed on the ASX share market last December.</span></p>
<p>Floated at $2.10 a share, it last traded at $1.30 a share. </p>
<p>McGrath, founded in Paddington by John McGrath in 1988, has a network of more than 70 offices.</p>
<p>The suspension came before <span>the Reserve Bank released its half-yearly snapshot of the financial system which warned the growth in </span>big city apartment developments was a key risk<span> to Australia's financial system.</span></p>
<p>Sydney's declining established home sales activity and the declining auction clearance rate have not helped the McGrath share price.</p>
<p>Sydney's clearance rate last April was well above 80 percent.</p>
<p>CoreLogic figures have put the Sydney clearance rate at below 70 percent for the past five weeks after a strong February start.</p>
<p>Strathfield was Sydney's busiest auction suburb yesterday with the preliminary results showing four of the five offerings finding buyers, with two sales through McGrath.</p>
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jchancellor-FAypfDUnLy

McGrath secures auction success

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<p><span style="line-height: 1.3em;">Sydney recorded a preliminary clearance rate of 69 percent at weekend auctions compared to 67 percent in the prior week.</span></p>
<p><span>The weekend’s top performing Sydney sub-region was the Eastern Suburbs with a clearance rate of 87 percent, followed by Sutherland on 84 percent and North Sydney and Hornsby at 80 percent.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Sales across Sydney ranged from $340,000 for a one bedroom Surry Hills unit to a pre-auction $5.775 million sale of a five bedroom Woollahra house.</span></p>
<p><span>CoreLogic RP Data had advised there were 330 scheduled Saturday auctions given reduced school holiday activity.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Sydney's clearance rate in April last year was well above 80 percent.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>CoreLogic figures have now put the Sydney clearance rate at below 70 percent for the past five weeks after a strong February start.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Strathfield was Sydney's busiest auction suburb yesterday with the preliminary results showing four of the five offerings finding buyers.</span></p>
<p><span>Some 880 Melbourne residential homes were taken to weekend auction with a preliminary clearance rate of 71 per cent, falling from 73 per cent last week and lower than one year ago when it was 79 per cent.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The busiest auction activity was held in the inner region where 170 homes went to auction and 73 per cent of reported auctions were successful. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>Melbourne's results ranged between a $260,000 Ormond one bedroom flat and $4,375,000 for a <a href="https://www.realestate.com.au/property-house-vic-brighton-122191682" target="_blank"><span>1960s Brighton home</span></a> (above) on an 830 sqm Middle Crescent block, that reportedly fetched $900,000 over reserve.</span></p>
<p><span>The cheapest house was $267,000 at Drysdale, on the outskirts of Geelong.</span></p>
<p><span>The REIV noted the Melbourne outer suburbs have seen a significant increase - about 25 percent - in the number of properties sold at auction this year.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Reservoir had the highest number of auctions listed with 17, followed by Glen Waverley with 13. Of the 15 reported results, only two of the Reservoir offerings did not sell. Some four did not sell at Glen Waverley's 13 results.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The preliminary clearance rate across Brisbane was 53 percent, up from 47 per cent and also higher than the 46 percent last year.</span></p>
<p><span>Some 145 Brisbane auctions were held, but with the two upcoming public holidays, it is expected that Brisbane’s auction market will be relatively quiet over the next two weeks.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Adelaide saw 99 auctions with a clearance rate of 66 percent.</span></p>
<p><span>Preliminary results for Canberra show the clearance rate for this week sitting at 71 percent, sharing the lead as best selling mainland capital with Melbourne.</span></p>
<p><span>The nation's cheapest weekend sale was $67,500 for a one bedroom 40 sqm Eagleby villa on the Gold Coast. It last sold at $85,000 in 2010.</span><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p><span>This week saw 1,667 capital city auctions held.</span></p>
<p><span>Preliminary results show that 68 per cent of the national auctions were successful, marking the third consecutive week of auction clearance rates below the 70 per cent mark. </span></p>
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Melbourne still strong, but Sydney's auction success rate settles sub-70 percent 

<html><body><div class="cq-article-content-paras section">
<p><span>Entrepreneur Mark Carnegie is looking at buying Ardent Leisure's marinas business a</span><span>s auctioneer McVay Real Estate works on the information memorandum's release.</span></p>
<p><span>The <em>Australian Financial Review's Street Talk</em> column revealed Carnegie's firm M.H. Carnegie &amp; Co is preparing its own search for an equity partner willing to team up on a bid.  </span></p>
<p><span>"We would be very interested in speaking to an international party working on this as we believe we are strategically well placed," Carnegie told <em>Street Talk</em>. </span></p>
<p><span>M.H Carnegie already owns Breakwater Marina in North Queensland.</span></p>
<p><span>Ardent's marina come with a $115 million book value unit. </span></p>
<p><span>Ardent's d'Albora Marinas business is the largest marina group in Australia with seven sites including three on Sydney harbour. </span></p>
<p><span>Private equity giant The Carlyle Group is one of the parties circling the theme park, marina, bowling centre and gym owner, Ardent Leisure. </span></p>
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Mark Carnegie seeks Ardent's marinas 

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<p>GUEST OBSERVER</p>
<p>Australia is the great innovator in the world of property ownership.</p>
<p>It was a South Australian, Robert Torrens, who introduced the modern Torrens Title system in his home state in 1857, a system now used across much of the world today. Torrens Title is an elegantly simple concept: all properties are recorded in a land register maintained by the government, and changes in ownership are recorded in the register.</p>
<p>It replaced the antiquated system of a physical and often ancient document known as the ‘title deeds’ being updated each time a transaction occurred – thereby creating a ‘chain of title’ –  and being passed from owner to owner. In the cumbersome pre-Torrens system, the whole ‘chain of title’ needed to be checked every time there was a transfer to a new owner.</p>
<p>Australia also developed strata title law first, in the 1960s. New South Wales was the leader on this occasion.  Strata title legislation underpins the sub-division of most apartment blocks in Australia, allowing individuals to own the portion of the block they reside in whilst having a shared ownership of and responsibility for common areas such as external structures, stairways, hallways and the land the building resides on.</p>
<p>These two legislative developments – around a hundred year apart – epitomises the Australian egalitarian spirit of ‘a fair go.’  By simplifying title rules, they made it easier for Australians to own, trade and subdivide property, which enabled more of us to become landowners.</p>
<p>In a testament to the confidence in which the modern titles system is held, banks routinely lend individuals 90%, 95% and sometimes 100% of a property’s value, effectively based on an ownership entry on a database in the state or territory’s land registry IT system.</p>
<p>But the 1960s isn’t actually that long ago and blocks of apartments began to appear on the landscape from the 1920s and 1930s. So you won’t be surprised that there are some older apartment blocks with title documents that pre-date the strata title system.</p>
<p>When owners of early apartment blocks considered how they could sub-divide and sell individual units, they turned to corporation law for a solution. A company was established which became the registered owner of the property. Unit owners were then sold shares in the ‘company’ which gave them exclusive access to their dwelling and shared use of common areas.</p>
<p>‘Company Share’ apartments are typically older architectural style and they tend to be found in the older suburbs in our older cities – Sydney, Hobart, Melbourne and Adelaide.</p>
<p>There are other forms of apartment titles as well. For instance, In Victoria, in the early 1960s Stratum Title was a forerunner to the strata title regime. It still involved a company share arrangement for common property, but owners also received a title to their unit. And in South Australia, a Moiety or Cross Lease system gave each unit holder a share in the land the apartment block sat on plus a lease to exclusive use of their property.</p>
<p>Beware that these older forms of titles are not just a historical footnote. Banks tend to have tighter lending restrictions – lending as little as 50% of the loan-to-value ratio currently – on non-strata titled apartments, and too often, won’t lend at all.  In the case of company share, banks are concerned that the collateral for their loan isn’t the title of a property but a share in a company. In the case of stratum title in Victoria, although the banks do have a title they can claim on, the stratum title legislation gives the stratum scheme’s service company (akin to the body corporate) first claim on a defaulting borrower’s mortgage to pay outstanding service company fees. Naturally, banks aren’t comfortable about potentially being second in line if there is a default.</p>
<p>Consequently, non-strata title apartment can trade at a discount to comparable strata title properties.  So make sure you always engage a good lawyer when buying apartments to check the title documents.</p>
<p> </p>
<p><em>When is a pre-purchase building inspection a must?  What do they entail?  How does one interpret the results?  What defects can be fixed and which ones should prompt you to walk away. Jarrod McCabe, associate director, Wakelin Property Advisory and Peter Alexander, building inspector, Safehome Building Inspections present a webinar for Victorian home buyers on April 20. <a href="https://wakelin.com.au/inspection" target="_blank">Click here to register</a>.</em></p>
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Property 101: Understanding property title with Wakelin Property Advisory

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<p><img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p>Is a royal commission into banking required? I think not. There have been many problematic incidents adversely affecting customers in the banking and financial sector in Australia – although whether they are more frequent and more substantive than elsewhere is open to question.</p>
<p>Moreover, examining those incidents, determining whether there are systemic causes, and identifying possible solutions can be done in simpler and potentially more effective ways. Indeed, even to the extent that the objective is to pinpoint responsibility for past wrongdoings, it is not clear that a royal commission has advantages over investigations by well-resourced and empowered financial regulators.</p>
<p>Royal commissions are likely to work best when there is one specific major issue to be addressed or where there is some substantive matter of policy formulation on which a primarily legal, inquisitorial, analysis can shed light. The current and recent concerns involve a wide range of different types of problems resulting in financial consumer detriment.</p>
<p>They involve actions of individuals within various types of financial organisations as well as how the objectives, culture, ethics and governance of the organisations themselves encourage, induce or incentivise particular types of behaviour.</p>
<p>These are not topics that are best addressed from a primarily legal perspective, or analysis of which requires the trappings and powers, and costs, of a royal commission. Rather, there is a need for analysis of what gives rise to these perceived problems and what policy (legislative or regulatory) changes might be made to reduce such problems.</p>
<p>And ultimately, some form of (at least implicit) cost-benefit analysis is warranted since the bad behaviour of concern is a byproduct of institutional arrangements and structures for providing financial services and products to meet the needs of consumers. Designing policy to balance efficiency and fairness in provision with mitigation of adverse effects is not a simple task.</p>
<p>Identifying problems and designing policy solutions can be done either via existing financial regulators with their existing (or enhanced) powers or through some other form of less costly and disruptive method of inquiry.</p>
<p>The recent David Murray-led Australian Financial System Inquiry (of which I was a member) examined the financial sector from a very broad perspective. Its terms of reference included reference to corporate governance and implications for outcomes for consumers of financial products and services consumers. But this was only one item on a long list of issues required to be investigated within a very short time frame.</p>
<p>The Murray Inquiry made a number of recommendations related to improving outcomes for consumers of financial products. One could argue that it would make sense to see whether the recommendations of the Murray Inquiry (once fully implemented), together with ongoing changes in global financial regulatory standards, improve the performance of the financial sector in this regard before undertaking another major review.</p>
<p>On the other hand it might be argued that the Murray Inquiry did not, reflecting the constraints of its terms of reference and short time frame, delve far enough into issues of ethics, culture, and governance. While these were front of mind in its deliberations, its approach was to design policy recommendations which would induce better outcomes.</p>
<p>These included addressing incentives created by conflicted remuneration arrangements, introducing manufacturer and distributor responsibilities for appropriate design and marketing of financial products and services, and improved resourcing and powers of financial regulators. That approach reflected a view that “good” ethics and culture cannot be created by regulation, that they are the responsibility of the leadership of financial institutions, but that policy settings can influence incentives to create and maintain good ethical standards and culture.</p>
<p>If it is believed that the problems are more deep seated, then perhaps further inquiry is warranted – but on topics which hardly warrant or need a royal commission. A number of issues come readily to mind. One is whether enforced structural separation of financial institutions would facilitate improved governance, risk-taking, staff-customer interrelationships, and remuneration and incentive structures.</p>
<p>Another is whether requiring directors of banks to put interests of depositors ahead of shareholders (much as occurs in insurance where policy holders interests are legally accorded priority). Yet another would be what increase in penalties for wrongdoing and increased resourcing for investigation by regulators would appropriately limit wrongdoing while not unduly harming efficient and innovative supply of financial services.</p>
<p>These types of issues require “research” more than “inquiry”. They are not the sorts of questions that a royal commission process is suited to answer. Calling for a royal commission looks to have been a smart political move. But like the Abbott Government’s Royal Commission into Trade Unions it would be tainted by political overtones associated with the inquisitorial nature of the process.</p>
<p>Far better to find an approach that will be seen to reflect the more explicit analytical approach necessary to answer the very complex questions involving the interplay between ethics, culture, incentives, governance and behaviour.</p>
<p><em><span class="fn author-name">Kevin Davis is r</span><span style="line-height: 1.3em;">esearch director of Australian Centre for FInancial Studies and professor of Finance at Melbourne and Monash Universities, Australian Centre for Financial Studies and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/kevin-davis-3497" target="_blank">here</a>.</span></em></p>
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Why Australia doesn't need a banking industry royal commission

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<div>It looks increasingly as though 2016 is going to be a becalmed year for Sydney's property markets.<br><br>Some articles doing the rounds this week suggested that apartment prices had already fallen in Sydney, but as you would expect different market sectors and sub-regions have behaved somewhat differently.</div>
<div> </div>
<div>Mainly these declines would relate to new stock or "off-the-plan" or high-rise apartment purchases, some of which in my opinion is quite over-priced and quite risky, and some outer suburban or secondary locations where auction clearance rates have tanked. </div>
<div> </div>
<div>Residex released its April market update on Friday which showed that <em>median</em> apartment prices in Sydney had increased by +11.5 per cent over the year to March, to a fresh all-time high of $691,500.</div>
<div> </div>
<div>Following a +2.4 per cent increase in March, the median unit price growth has all but overhauled median house price growth in the harbour city, which has slowed to +12.2 per cent over the year to March. <br><br>This need not be such a surprise - at this stage in the cycle the stamp duty on detached housing in desirable locations has become increasingly prohibitive, acting as a drag on price growth.  </div>
<div> </div>
<div>Sydney's median house price is now $1,042,500 which is +$271,500 higher than when the latest round of doomsday predictions were rolled out at the beginning of 2014. And this median price is also +$381,500 than in the middle of 2012 when some other crash predictions were being bantered around.<br><br>With the additional stamp duty burden ramping up by nearly $18,000 over the past four years, rational buyers will increasingly look towards properties they can add value to, or scale down their entry price accordingly. <br><br>While auction results are still throwing out some enormous results (for example, this <a href="https://www.realestate.com.au/property-terrace-nsw-potts+point-115126003" target="_blank">Potts Point terrace</a> was resold for a thunderous $13 million this week, almost doubling the record price for a Sydney terraced house) it does look as though the wider market away from the inner suburbs has now slowed in accordance with APRA's wishes. </div>
<div>
<br>According to Residex medians, there was a continued steady growth in the year to March for Brisbane houses (+3.5 per cent) and Brisbane units (+4.2 per cent). <br><br>
</div>
<div><strong><span style="text-decoration: underline;">Economy more upbeat</span></strong></div>
<div> </div>
<div>There have been quite a few positive signs for the economy of late - an extraordinarily strong NAB business survey saw conditions at their equal highest level in 8 years, and the AIG Performance of Manufacturing Index gauge surging to its highest reading in 12 years. <br><br>Lately there has been a strong bounce in commodity prices, sending some of the oversold major resources companies on a serious bull run.<br><br>The March Labour Force figures showed that the national unemployment rate has kept ticking down to its lowest level in two-and-a-half years, and quite a bit sooner than had been expected. <br><br>More detailed employment figures due out on Thursday will confirm that Sydney's economy is rather enjoying its infrastructure and building boom. </div>
<div> </div>
<div class="separator"><a href="/images/2016/04/18/UE.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/18/UE.jpg" alt=""></div>
<div class="separator"> </div>
<div>As for the much-feared "mining cliff", well that  has all but been and gone, meaning that resources construction will no longer be such a significant drag on the economy in about 12 to 18 months time.</div>
<div>
<br>The latest available data only runs to December 2015, but as we are now about three-and-a-half years beyond the peak estimates have shown that some three quarters of the decline may now be in the rear view mirror, while record residential construction activity has helped to offset the decline.<br><br>That said, Western Australia and the Northern Territory still evidently have quite a way to fall back yet.</div>
<div> </div>
<div class="separator"><a href="/images/2016/04/18/C1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/18/C1.jpg" alt=""></div>
<div class="separator"> </div>
<div>Good news, and futures markets are now less than convinced of the need for a further interest rate cut in this cycle.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Financial Stability Review (FSR)</span></strong></div>
<div> </div>
<div>In other news the Reserve Bank of Australia (RBA) released its April 2016 Financial Stability Review (FSR) on Friday. </div>
<div> </div>
<div>The RBA noted that spreads on Australian banks' wholesale funding costs had increased a little over the past six months, partly due to one-off factors related to international regulation. </div>
<div> </div>
<div>That said, spreads have declined a bit of late as the outlook has brightened, and having successfully issued some $50 billion in bonds since the beginning of the year Australian banks are set to comfortably meet their funding requirements through this calendar year.</div>
<div> </div>
<div>Despite the moderate increase in spreads, banks' long and short debt pricing spread to swap remains a world away from where it was in, say 2012, let alone from the unholy spike of 2008.</div>
<div> </div>
<div>In any event Australian banks are now less exposed to wholesale funding risk because first deposit funding and now equity funding have been stepped up respectively.</div>
<div> </div>
<div>There has been very little impact on deposit rates. </div>
<div> </div>
<div><a href="/images/2016/04/18/FUNDING.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div>
<img src="/images/2016/04/18/FUNDING.jpg" alt=""><br><br>
</div>
<div>Non-performing asset ratios on domestic books are generally speaking in pretty good nick, having continued to improve in the latter half of 2015.</div>
<div> </div>
<div>
<div class="separator"><a href="/images/2016/04/18/FSR1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/18/FSR1.jpg" alt=""></div>
<div class="separator"> </div>
<div>For the majors non-performing loans are also in very good shape, although the resources regions and mining towns of Western Australia and Queensland are expected to cop some default action, an unfortunate occurrence which has been known about for some time. </div>
<br><div class="separator"><a href="/images/2016/04/18/FSR2.jpg" target="_blank">Click to enlarge</a></div>
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</div>
<div>The RBA highlighted the potential for apartment oversupply and possible related settlement risks, while noting that there has been little evidence of the latter to date, and also little evidence of any meaningful slowdown in demand from China. <br><br>Despite the high levels of apartment construction, I'm coming around the view that with more than half of the dwelling stock effectively financed by offshore investors - overwhelmingly from China - such a ratio of apartments may never make it to the rental market that the actual impact on supply could yet prove to be a fizzer. <br><br><strong><span style="text-decoration: underline;">No stress?</span></strong><br><br>The RBA remains relatively unperturbed with household debt levels, for although gross household debt has increased so too have aggregated mortgage buffers (balances held in offsets and redraw facilities), up to an enormous 17 per cent of outstanding loan balances - that's the equivalent of more than 2.5 years of mortgage repayments at current interest rate levels.<br><br>The RBA reiterated that most household debt is held by the households that can afford to service it, with half of household debt held by the top quintile of income earners. Meanwhile, indicators of stress on overall loan portfolios remain low. <br><br>However, this review did acknowledge that the households without mortgage buffers are often those in the lower income brackets, which may present a market risk in time. <br><br>As such, housing markets in lower socio-demographic areas may be at greater risk if either interest rates or unemployment rates rise. <br><br>This certainly rings true in the case of Sydney where house prices in the west and at the city fringe have recorded particularly punchy price growth since 2012 - a dynamic which tends to mask any underlying household mortgage stress - but with auction results pointing to ongoing weakness, the fundamentals out west all look rather fragile.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

The becalmed market: Pete Wargent

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<p><img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p>The latest Australian housing finance statistics back-up what we already know: the national housing market is starting to cool.</p>
<p>Local housing economists have been pouring water on the notion of a “property bubble” recently, arguing instead that rather than a bubble pop, we are on track for a gradual easing.</p>
<p>And at the aggregate level this is what’s happening. Home loan commitments are continuing to grow. However, this growth is occurring at a rate that has been slowing since the middle of last year.</p>
<p>The seven charts below unpick the latest housing finance figures.</p>
<h2>1. National growth in loans</h2>
<p><a href="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" alt=""></p>
<h4><span class="caption">Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016.</span></h4>
<p>According to data released this week by the ABS, the overall growth in loans for housing increased a modest 1.5% in February (seasonally adjusted terms). Despite a bounce after the slow January month, growth over the past 12 months sits below the last five years' average annual loan commitments. (It’s the same story if we look instead at the value of loans.)</p>
<p>Where the picture gets really interesting is in the change in commitments to loans for the purchase of new dwellings. The number of loans in this category fell over 15% from January into February. Where this was the fastest growing category of housing finance at the end of 2015, it is now the leading area of contraction.</p>
<p>All-in-all this points to a market that, following a recent upsurge in building, is nearing saturation.</p>
<h2>2. Distribution of loans by state</h2>
<p><a href="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" target="_blank">Click to enlarge</a></p>
<h4><span class="caption"><img src="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" alt=""></span></h4>
<h4><span class="caption">Source data:</span></h4>
<p>The majority of housing finance is going to property purchases in NSW (30%) and Victoria (28%).</p>
<h2>3. Lending and house prices - National</h2>
<p><a href="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" alt=""></p>
<h4><span class="caption">Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</span></h4>
<p>Growth in the value of Australian housing loans over time roughly tracks the Australian house price index.</p>
<p>The rapid increase in building, particularly high-density developments in urban growth centres in Sydney and Melbourne, in late-2015 saw loan value growth outpace broader property prices.</p>
<p>As property prices adjust to a new supply-driven equilibrium, easing loan volumes is expected.</p>
<h2>4. Lending and house prices - State-by-state</h2>
<p><a href="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" alt=""></p>
<h4><span class="caption">Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</span></h4>
<p>Year-on-year growth in property prices and housing finance by state shows massive diversity. Where Sydney, Melbourne and Hobart (who knew!) have recorded near- and above double digit average property price growth, it is still a struggle for resource-heavy parts of the country.</p>
<p>Brisbane, Perth and Darwin are experiencing the flip-side of the two-speed economy which through the mining boom saw their housing markets pull ahead of Sydney and Melbourne.</p>
<h2>5. Household wealth, income and debt servicing</h2>
<p><a href="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" alt=""></p>
<h4><span class="caption">Source data: RBA Household Finances (E2)</span></h4>
<p>Overall, households are getting more wealth, relative to their income. This is coming from a combination of housing asset and financial asset capital gains.</p>
<p>It comes at a cost, however. Owner-occupier debt as a proportion of income is trending higher. Coupled with an increase in late 2015 of the proportion of income going to mortgage interest repayments, housing affordability issues may soon come into play.</p>
<h2>6. First home owners are missing out</h2>
<h4><a href="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" target="_blank"><span class="caption">Click to enlarge</span></a></h4>
<p><span class="caption"><img src="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" alt=""></span></p>
<h4><span class="caption">Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016</span></h4>
<p>As a proportion of all housing loans, the value of loans going to first-home buyers make up around 15% of the national market, and NSW is the worst place for first-home buyers.</p>
<p>The latest ABS figures show that first-home buyers are making up a smaller and smaller part of the loan market. The proportion of loans to first-home buyers decreased in every state except Tasmania in the beginning of 2016.</p>
<p>First-home owners in NSW make up only 12% of the value of housing finance commitments, the lowest of any state and representing a significant drop-off from a high of around 30% in 2009-10 (after which point the First Home Owners Grant was scaled back).</p>
<h2>7. Big banks are also missing out…</h2>
<p><a href="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" alt=""></p>
<h4><span class="caption">Source data: ABS Housing Finance, Australia (5609.0), Release</span></h4>
<p>Comparing the performance of the banks against non-bank lenders in terms of owner-occupier loan issuance, the traditional banks are lagging.</p>
<p>Banks are feeling the burn doubly: while their grasp of the market is trimmed by a more competitive offering from alternative lenders, the average Australian loan size is also falling.</p>
<p>Smaller loans are partly a response to a national housing market cool-down. It could also be attributed to APRA’s review of lending practices aimed at mitigating risk of property overvaluation introduced in December 2014.</p>
<p>This means the banks have to work harder (and their stock prices appear to be factoring that in!)</p>
<p class="x_author">Danika Wright is l<span style="line-height: 1.3em;">ecturer in Finance, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/danika-wright-121868" target="_blank">here</a>.</span></p>
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Australia’s housing finance in seven charts: Danika Wright

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<p>The list of the most affordable capital city suburbs in each state and territory highlights the dramatic difference in the cost of housing between the most affordable and most expensive capital cities.</p>
<div>
<p>When we are talking about affordable prices for capital city housing, Hobart is the location of choice with property prices much lower there than across the mainland capital cities.</p>
<p>To highlight this we have looked at selling prices for the bottom decile of homes over the three months to January 2016.  A decile simply divides a group into ten equal parts.  What this means is if there were 20 sales over the three months and we lined the sales up from lowest to highest we would take the 2nd price as a representation of the most affordable segment of the market.</p>
<p>Over the three months to January 2016, the 10th percentile price of a house across the combined capital cities was $315,000 and the 10th percentile unit price was $255,000.  Over the same period, the 10th percentile house price across the combined regional markets was $175,000 compared to $180,000 for units.  This again highlights that housing tends to be much more affordable outside of the capital cities.</p>
<h3>10th percentile price of houses and units <br>3 months to January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-29--img1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-29--img1.jpg" alt=""></p>
<p><br>Hobart has the lowest 10th percentile house and unit prices at $205,000 and $167,000 respectively.  Darwin is the second most affordable for houses at $229,000 and for units Adelaide is in second place with a price of $222,000.  At the other end of the spectrum, the 10th percentile house price is highest in Sydney and Darwin (both $430,000) and the unit price is highest in Sydney at $360,000.</p>
<p>The table below highlights the five most affordable capital city suburbs for both houses and units in each state.  The data is based on median values and we have only included suburbs that had at least 10 sales over the 12 months to January 2016.</p>
<h3>Suburbs with most affordable median values, January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-29--img2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-29--img2.jpg" alt=""></p>
<p><br>The much more affordable nature of Hobart housing is evident when you look at the most affordable lists for each city, particularly for houses.  The five most affordable suburbs for houses in Hobart are all more affordable than the most affordable suburbs in each other capital city.  The data also highlights that housing costs in Sydney, Darwin and Canberra tend to be more expensive than the remaining capital cities.</p>
<p>For units, Adelaide suburbs actually have the most affordable suburbs and certain suburbs in Brisbane are also cheaper than those in Hobart where medium to high density development is less common.  On the other hand, unit values in the most affordable Darwin and Canberra suburbs are much higher than elsewhere.</p>
<p>The data shows that affordable housing options are available in most capital cities however, they tend to be located on the outskirts of the capital cities.  Of course Hobart, Adelaide and Brisbane tend to have much more affordable housing options relative to the other capital cities.  Meanwhile, regional markets often offer up even more affordable housing alternatives.</p>
<p> <em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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ckusher-ujnxiKuFQs

Hobart housing much more affordable than other capital cites

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<p><span>The list of the most exclusive suburbs in each state reiterates just how much more expensive real estate is in Sydney relative to the rest of the country.</span></p>
<p><span>Sydney is by far and away the nation’s most expensive housing market. To put this into some perspective we have looked at the top decile of selling prices over the three months to January 2016. A decile simply divides a group into ten equal parts. What this means is if there were 20 sales over the three months and we lined the sales up from lowest to highest we would take the 18th price as a representation of the most expensive segment of the market.</span></p>
<p><span>Over the three months to January 2016, the 90th percentile price of a house in the city was $1.5 million and the 90th percentile unit price was $980,000.  Over the same period, the two capital cities with the next highest 90th percentile house price was Melbourne at a still high but much lower $1,050,000.  This highlights just how much more expensive housing is in Sydney and to a lesser degree Melbourne is relative to other capital cities.  As an example the next highest 90th percentile price is Perth at $870,000.</span></p>
<div>
<h3>90th percentile price of houses and units 3 months to January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-21--img1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-21--img1.jpg" alt=""></p>
<p>There is also a large difference between the cost of premium housing in capital cities and non-capital cities.  The 90th percentile house price across the combined capital cities is $1,010,000 compared to $675,000 in combined regional markets.  Similarly, 90th percentile unit prices are $830,000 in the combined capital cities compared to $600,000 outside of the capitals.  This data points to the fact that non-capital city areas are the great un-tapped resource for more affordable housing.  Of course employment opportunities in these areas are the main factor holding back the regional areas of the country.</p>
<p>The table below highlights the five most expensive suburbs for both houses and units in each state.  The data is based on median values and we have only included suburbs that had at least 10 sales over the 12 months to January 2016.<br><br></p>
<h3>Suburbs with most expensive median values, January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-21--img2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-21--img2.jpg" alt=""></p>
<p>The Sydney premium becomes very evident when we look at the most expensive suburbs in each state based on median values.  The data shows the 5 most expensive suburbs for houses in NSW (all of which are in Sydney) all have a median value of more than $4 million.  In comparison, the most expensive suburbs for houses in Vic and WA are more than $3 million, in SA it is more than $2 million, in Qld, NT and ACT it is more than $1 million and in Tas it is less than $850,000.</p>
<p>Similarly for units, all of the 5 most expensive suburbs in NSW (Sydney) have a median values of more than $1 million.  Tennyson in Brisbane is the only other suburb outside of Sydney with a median unit value of more than $1 million.</p>
<p>There is a large premium for housing in our largest city.  Of course the city also has an abundance of waterfront homes which contributes to the higher overall cost of housing.  While employment opportunities remain significant in Sydney and employers limit the opportunities for workers to work remotely we would expect that a substantial Sydney premium will remain.  Elsewhere housing is generally much more affordable but of course not everyone has a choice when it comes to potentially leaving Sydney and heading to another area of the country where housing is cheaper.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Sydney’s premium suburbs are much more expensive than anywhere else: Cameron Kusher

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<p><span style="line-height: 1.3em;">Housing finance data for January 2016 shows that the value of housing finance commitments was recorded at $31.9 billion over the month. </span></p>
<p>Based on this figure, mortgage lending fell by -3.4 percent over the month.  Even though the data is seasonally adjusted, we often see falls in mortgage lending over January so perhaps we need not read too much into the fall, however, this is the largest January fall in lending since 2011.</p>
<p><a href="/images/2016/04/15/Chart-1-1-580x213.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/Chart-1-1-580x213.jpg" alt=""></p>
<p>Looking at the two major components of mortgage lending: owner occupier and investors both have recorded a fall over the month. In January there was $20.5 billion worth of finance commitments to owner occupiers and $11.4 billion in commitments to investors. The value of owner occupier commitments fell by -4.3 percent over the month but was 15.9 percent higher year-on-year.</p>
<p>Investor commitments fell by -1.6 percent in January and were -14.8 percent lower year-on-year. With investor demand having slowed over recent months, they now account for 35.6 percent of all mortgage commitments which is virtually right on its decade average after peaking at 43.3 percent of all housing finance commitments in May of last year.</p>
<p><a href="/images/2016/04/15/Chart-21-580x210.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/Chart-21-580x210.jpg" alt=""></p>
<p>Of the $20.5 billion in commitments to owner occupiers in January, $1.9 billion was for construction of dwellings, $1.2 billion was for purchase of new dwellings, $7.2 billion was for refinancing of established dwellings and $10.2 billion was for the purchase of other established dwellings.  Construction of dwellings was the only segment of lending to rise over the month (+0.7 percent) with falls in value of lending for purchase of new dwellings (-5.2 percent), refinancing established dwellings (-2.3 percent) and purchase of other established dwellings (-6.4 percent). </p>
<p>Despite monthly falls, year-on-year all segments have seen an increase in lending with construction of new dwellings rising 6.1 percent, purchase of new dwellings up 35.6 percent, refinances up 36.0 percent and purchase of other established dwellings having increased by 4.8 percent.  Although lending is up over the past year, there is a clear downwards trend in owner occupier lending, particularly for established dwellings, over recent months.  It will important to monitor whether this trend persists in coming months as it could point to slowing value growth.</p>
<p><a href="/images/2016/04/15/Chart-3-1-580x213.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/Chart-3-1-580x213.jpg" alt=""></p>
<p>Following intervention in the market by the regulator, we have seen a sharp slowdown in lending to the investment segment over the past 8 months.  As earlier mentioned, investors accounted for 43.3% of all housing finance commitments in May of last year with their proportion falling to 35.6% in January 2016.  Looking at the two components, in January 2016 there were $899 million worth of commitments for new construction and $10.5 billion worth of commitments for established housing stock. </p>
<p>Over the month, the value of commitments fell by -4.2% for new construction and by -1.4% for established housing stock.  Year-on-year the value of lending is 3.2% higher for new construction but -16.0% lower for established stock.  Much like the owner occupier chart, it shows that demand for established stock has eased and is trending lower, albeit at a slower pace.  In fact, the value of commitments for established investment stock is at its lowest level since April 2014.</p>
<p><a href="/images/2016/04/15/Chart-4-1-580x215.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/Chart-4-1-580x215.jpg" alt=""></p>
<p>The CoreLogic Mortgage Index which is published weekly and tracks mortgage activity across our proprietary platforms indicates that January was a weak month for housing finance commitments.  We would expect that housing finance commitments will rise in February and so far March also points to increasing demand.  However, mortgage demand remains lower than it was at the end of last year and lower than it was a year ago.  While housing finance commitments should increase from their January levels it is unlikely that demand will start to grow as strongly as it was in the early part of last year or late in 2015.</p>
<p>The constraints on investment lending have been extremely effective and have resulted in a swift and significant pull-back in demand, in fact the value of investment housing finance commitments in January was -20.0% lower than its April 2015 peak.  Although the CoreLogic Mortgage Index points to a rebound in demand over the coming months, we expect that growth in housing finance commitments will remain more subdued than what we saw over recent years. </p>
<p>Of course, the direction of housing finance will ultimately be determined by housing demand.  After demand weakened over the second half of 2015 we have seen stronger demand early in 2016 with much stronger auction clearance rates falling property listings in a number of cities and a rise in property transactions.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
<p> </p>
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