<p>The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.</p>

<p>The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.</p>

<p>The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.</p>

<p><img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" /></p>

<p>&nbsp;</p>

<p>Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.</p>

<p>At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.</p>

<p>Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.</p>

<p>"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."</p>

<p>"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."</p>

<p><img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" /></p>

<p>DKO said the design had been shaped by the site's landscape setting and surrounding open space.</p>

<p>"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."</p>

<p>"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."</p>

<p>The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.</p>

<p>The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.</p>

<p>Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.</p>


Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

Joel Robinson

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

<p>Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.</p>

<p>The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.</p>

<p>The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.</p>

<p>Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.</p>

<p>Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.</p>

<p>The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.</p>

<p><img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" /></p>

<p>Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.</p>

<p>"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."</p>

<p>"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."</p>

<p>The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.</p>

<p><img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" /></p>

<p>DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.</p>

<p>Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.</p>

<p>"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."</p>

<p>The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.</p>

<p>If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.</p>

<h2>Project Snapshot</h2>

<p><strong>Project:</strong> Honeysuckle Garden Redevelopment</p>

<p><strong>Address:</strong> 494-516 Military Road, Mosman</p>

<p><strong>Developer:</strong> Abadeen and Phoenix Property Investors</p>

<p><strong>Architect:</strong> DKO Architecture</p>

<p><strong>Lead Architect:</strong> Matthew Ritchard</p>

<p><strong>Value:</strong> $230 million</p>

<p><strong>Residences:</strong> 100 apartments</p>

<p><strong>Key features:</strong></p>

<ul>
	<li>
	<p>Ground-floor retail</p>
	</li>
	<li>
	<p>Rooftop wellness precinct</p>
	</li>
	<li>
	<p>Gym and sauna</p>
	</li>
	<li>
	<p>Outdoor entertaining and BBQ areas</p>
	</li>
	<li>
	<p>Landscaped communal gardens</p>
	</li>
	<li>
	<p>Multi-use recreation court</p>
	</li>
	<li>
	<p>Retained mature blue gum tree</p>
	</li>
	<li>
	<p>Connecting with Country design process</p>
	</li>
	<li>
	<p>Harbour, CBD and Balmoral views from upper-level apartments</p>
	</li>
</ul>


Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

<p>The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.</p>

<p>Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.</p>

<p>The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.</p>

<p>Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.</p>

<p><img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" /></p>

<p>Doroch Architects said the building had been designed to reinforce Mosman's established character.</p>

<p>"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.</p>

<p>The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.</p>

<p>The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.</p>

<p>The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.</p>

<p>&nbsp;</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a></em></p>

<p>&nbsp;</p>


First look: Another major apartment proposal signals Mosman's development boom

<p>A new State Significant Development Application (SSDA) could reshape a prominent vacant site in Gosford's CBD, with Ming Tian Real Property proposing a mixed-use precinct that combines affordable housing, retail activation and a new public plaza.</p>

<p>The proposal for 43-45 Beane Street and 2 Keevers Lane would deliver a <a href="https://www.apartments.com.au/new-apartments/43-45-beane-street-gosford-nsw-2250">two-building development</a> comprising a 26-storey residential tower and a five-storey affordable housing building above ground-floor commercial space. A key focus of the project is the delivery of dedicated affordable housing alongside new public domain improvements designed to transform Keevers Lane into a more active urban destination.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/tony-owen-partners">Tony Owen Partners</a>, the development would provide 130 apartments, including 20 affordable housing dwellings managed by a registered community housing provider for at least 15 years. The market housing component comprises 110 apartments across a mix of one, two and three-bedroom residences, while the affordable housing includes six one-bedroom, 13 two-bedroom and one three-bedroom apartment. The proposal also incorporates 416 sqm of ground-floor retail, three basement levels accommodating 140 car spaces, 42 bicycle spaces, communal open space and extensive landscaping.</p>

<p><img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="9b858791-9060-4ee7-9178-44cb9e640a85" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20b_0.png?VersionId=_jbY0mqPEs7.jBZxozR7d6T4u85FoPmb" /></p>

<p>The affordable housing component has been distributed across both buildings, with four apartments located within the main tower and a dedicated five-storey building delivering a further 16 affordable homes. The project also includes 12 adaptable apartments and 24 dwellings designed to Silver Level Liveable Housing Guidelines.</p>

<p>The architectural design draws inspiration from Indigenous storytelling.</p>

<p>"The design is based on the indigenous motif of the Rainbow Serpent," Tony Owen Partners said in the Design Verification Statement.</p>

<p>"The Rainbow Serpent is a traditional totem of coastal eastern Australia. It represents natural forces, creation, change, and rebirth and is often associated with bodies of water. This motif can be seen in the undulation of the balconies rising on the building," Tony Owen Partners said in the Design Verification Statement.</p>

<p>Beyond the residential offering, the proposal seeks to revitalise the surrounding public realm, particularly Keevers Lane.</p>

<p>"The ground floor streetscape includes a commercial and dining precinct which will significantly improve the amenity of the area. This strategy transforms a currently inhospitable laneway into a thriving centre of urban renewal and day and night time activation to compliment the new adjoining UNC facilities," the architects said.</p>

<p><img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="36b0ca6b-af15-424c-81db-9f3049c07b0c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20podium.png?VersionId=QCAv7bCitrg3zIGZUHI2z_HR8qVfKbp1" /></p>

<p>The Environmental Impact Statement notes that the project aims to "improve the provision of diverse housing options within Gosford City Centre, enhancing the mixed-use precinct by delivering high quality residential development, whilst concurrently providing a diverse range of housing choices through the provision of affordable housing, which is in growing need within the Gosford City Centre."</p>

<p>The site occupies approximately 2,070 sqm in the Gosford city centre, around 250 metres from Gosford Railway Station and within walking distance of Gosford Hospital, Mann Street's retail precinct and the University of Newcastle's Gosford campus currently under construction. The currently vacant site previously received approval for a lower-scale residential development, with the new proposal leveraging the NSW Government's in-fill affordable housing pathway to increase density while introducing dedicated affordable housing.</p>


First look: Rainbow Serpent inspires bold new Gosford apartment tower

<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>


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

<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>News Corp Australia has partnered with property website realcommercial.com.au for a new premium multi-platform advertising solution for commercial property clients. </p>
<p>Combining the audience of <a href="https://realcommercial.com.au/" target="_blank">realcommercial.com.au</a> with the reach of News Corp Australia mastheads including <em>The Australian</em>, <em>Herald Sun</em>, <em>The Courier-Mail</em> and digital edition of <em>The Wall Street Journal</em>, commercial property advertisers can now expect to reach up to 9 million people both in Australia and internationally.</p>
<p>“This is the first time News Corp Australia has partnered with realcommercial.com.au and the first time we have bundled one of our international mastheads into the mix,” said The Australian general manager-sales Rachel Savio. </p>
<p>“2016 is set to be an active year for commercial property investment in Australia with increasingly more interest from overseas investors. According to real estate firm CBRE a total of $28.4 billion of commercial property encompassing office, industrial and retail, was sold last year in Australia.”</p>
<p>Commenting on the partnership, realcommercial.com.au’s executive general manager Joseph Lyons said, “This partnership brings together the power of realcommercial.com.au, News Corp Australia’s mastheads, and <em>The Wall Street Journal Asia </em>to help our clients reach potential buyers and tenants in Australia and internationally.</p>
<p>“We are seeing increasing interest in commercial property from interstate and overseas buyers and this multi-platform bundle will offer customers more reach than they have ever before had access to in one package. The opportunity speaks for itself with an audience of up to nine million people.”</p>
<p> </p>
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prateek24-ezbwHMbNAk

News Corp Australia partners realcommercial.com.au for commercial real estate listings

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<p>When I keep thinking about the possible ramifications with Bill Shorten’s tax reform announcements I shake my head with utter disbelief – this is just plain dumb policy. Since the mining boom collapsed property has been a major shining light for the Australian economy.</p>
<p>By announcing that from July 1, 2017 negative gearing will only apply to new properties, the argument that 93 per cent of negative gearing goes to existing properties is a flawed one. Many suburbs see very few new developments each year so it’s those existing properties that add equilibrium to keeping rents competitive.</p>
<p>It should also be noted that it was not mentioned that with the new properties that there would be no adjustments to the previous Labor policy in 2008 that permits 100 per cent of off – the – plan purchases to foreign owners. What we are seeing today is new developments being offered off shore and many properties never hit the local market with many of these properties being land banked. It should also be legislated that all off – the – plan foreign purchases must be rented out with all properties that are currently land banked to be issued with a divestment order unless they are rented out.</p>
<p>What I believe will happen with negative gearing is that we will see a cap put on the number of properties that are allowed to be claimed as well as a limit to annual tax deductions that can be claimed. In the meantime one could expect property investors to be front and centre in the markets prior to the upcoming Budget announcements.</p>
<p>It is becoming pretty obvious that it will be some time before the Australian budget gets itself back in the black – more particularly now that an increase to the GST has been formally pooh – poohed.</p>
<p>Instead of looking at increasing taxes maybe the federal Government would be better suited to looking at what it can do with its massive property portfolio to pay down more debt. The Australian Government is the largest property landlord in Australia with property holdings across the country.</p>
<p>HMAS Penguin for example which occupies some prime Middle Harbour front land is just one of thousands of examples of land that could be put to much better economic use. Now before you start yelling and screaming all I am saying is that the federal Government should be taking a closer look at its property portfolio with a view to possibly cashing – in. The NSW Government has been active over the past few years selling off Housing Commission properties that has eventuated in quadrupling budget expectations on the likely market values.</p>
<p>Australia’s population hit 24,000,000 this week so it makes plenty of sense to start a conversation on how our cities are going to cope with this rapid expansion. Public golf courses will come under huge pressure to remain with their respective land values going through the roof. Although before we see those being developed the federal Government has thousands and thousands of hectares of vacant land sitting idle.</p>
<p>No doubt some will say it’s time to put Australia’s land resources to better and more practical use and many will say it should remain as it is. One would have to admit that it would be an interesting debate. The Australian population clock now adds one extra person to our population every one minute and 31 seconds. On top of that we also have record net overseas migration. Our population growth is now higher than that of Indonesia.</p>
<p>The reality is that we need to start developing more land, so that conversation should start with Australia’s biggest landlord.</p>
<p>No time like the present to start this long overdue conversation.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 79</p>
<p>• Number of houses on the market last week – 53</p>
<p>• Number of houses on the market this week – 59</p>
<p>• Number of apartments on the market this time last year – 52</p>
<p>• Number of apartments on the market last week – 46<br>• Number of apartments on the market this week – 44</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 8</p>
<p>• Number of houses on the market last week – 17</p>
<p>• Number of houses on the market this week – 18</p>
<p>• Number of apartments on the market this time last year – 19</p>
<p>• Number of apartments on the market last week – 17</p>
<p>• Number of apartments on the market this week – 22</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 9</p>
<p>•Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year– 38</p>
<p>• Number of apartments on the market last week – 27</p>
<p>*Number of apartments on the market this week – 28</p>
<p> </p>
<p><span> </span><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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robertsimeon-hRNTwJyXkQ

Property is the gift that keeps on giving: Robert Simeon

<html><body>
<div>The ABS released its all-important Labour Force data for Janaury 2016. It is perhaps the most important of the data releases, so let's take a canter through it in the three short parts.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Employment growth</span></strong></div>
<div> </div>
<div>In seasonally adjusted terms, total employment declined by -7,900 in January to 11,894,500. In trend terms, total employment increased by +19,800.</div>
<div> </div>
<div>Although this was a decline for the headline result which missed market expecations, given the strength of what has gone before, in context it wasn't too bad a result. </div>
<div> </div>
<div><a href="/images/2016/02/19/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A1.jpg" alt=""></div>
<div> </div>
<div><span>In trend terms total employment increased by +302,500 over the past year or +2.6 per cent, which is a high rate of employment growth in historical terms. </span></div>
<div><span> </span></div>
<div><span>Click to enlarge</span></div>
<div><span><img src="/images/2016/02/19/A7.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>However, the composition of employment does not look quite so pretty, with full time employment decreasing by -40,600 in January, and part time employment increasing by +32,700. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>While full time jobs growth has been solid over the past year in rising by +2.0 per cent, the rate of part time jobs growth has been exceptionally high at +3.9 per cent. This probably represents a structural shift towards more casual jobs.</div>
<div> </div>
<div>Total hours worked increased by a modest +2.0 per cent over the past year, perhaps a rather more realistic indicator of the strength of employment growth. </div>
<strong><span style="text-decoration: underline;"><br>Part 2 - NSW &amp; QLD create the jobs</span></strong><br><div> </div>
<div>After some previously massive months of jobs growth, employment in New South Wales (and Victoria) pulled back in January, while Queensland went on to record further gains. </div>
<div> </div>
<div>Over the past six months the economy has created +143,400 jobs, with New South Wales (43 per cent) and Queensland (38 per cent) accounting for more than four-fifths of them.</div>
<div> </div>
<div><a href="/images/2016/02/19/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A3.jpg" alt=""></div>
<div> </div>
<div><span>Over the past year employment growth rates have ranged from an enormous +4.7 per cent in New South Wales and +3.3 per cent in Queensland, to a distinctly uninspiring -0.9 per cent in Tasmania. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A4.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 3 - Unemployment rates converge</span></strong><br><br><div>The headline result showed a seasonally adjusted increase in the unemployment rate to 6.0 per cent, which will excite the pessimists. However, the result was probably more middle of the road than anything.</div>
<div> </div>
<div>The participation rate has crept up to 65.2 per cent, the highest level in nearly four years, and while the number of unemployed persons recorded is volatile, it was down by 2.6 per cent over the year.</div>
<div> </div>
<div>The trend unemployment rate ticked down a notch to 5.8 per cent, for a 27 month low. </div>
<div> </div>
<div><a href="/images/2016/02/19/A5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A5.jpg" alt=""></div>
<div> </div>
<div><span>At the state level the monthly figures were absolutely wild once again, lurching all over the place. The trend figures point towards convergence rather than divergence between the states, with New South Wales looking to be in the best nick on this measure. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">The 95 per cent confidence interval figures provided by the ABS (which ranged from -66,500 to +55,700 for the month) serve as a reminder that as estimates the monthly data shouldn't be taken too literally.</div>
<div> </div>
<div>The big picture suggests that although annual headline employment growth is high by historical standards, the quality of employment growth is underwhelming, with part time work and under-employment aplenty in evidence. </div>
<div> </div>
<div>As a result ongoing low wages growth is likely to be the order of the day due to the inherent level of slack in the workforce.</div>
<div> </div>
<div>The employment figures weren't too bad on the whole, but notably Goldman Sachs is now forecasting interest rate cuts of 25 basis points in both May and July, so hold on to your hats.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
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pwargent-M4siyDbqQY

NSW & QLD are creating the jobs: Pete Wargent

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<div class="middle-content-section">
<div class="section">
<p><span>Median house rentals in metropolitan Melbourne increased $10 a week to $410 with regional housing rent decreasing 4.9 percent to $290, to December 2015, according to the REIV.</span></p>
<p><span>The REIV's rental market snapshot to December 2015 found the level of vacant properties in metropolitan  Melbourne at 3.1 percent, staying at 2.3 percent for regional Victoria.</span></p>
</div>
<div class="section"><span style="line-height: 1.3em;"> </span></div>
<div class="section">
<table dir="ltr" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td> </td>
<td rowspan="1" colspan="2" data-sheets-value='[null,2,"Vacancy Rate"]'>Vacancy Rate</td>
<td rowspan="1" colspan="2" data-sheets-value='[null,2,"Median Rent"]'>Median Rent (Houses)</td>
</tr>
<tr>
<td> </td>
<td data-sheets-value='[null,2,"July 2015",null,null,null,1]'>Dec 2015</td>
<td data-sheets-value='[null,2,"June 2015",null,null,null,1]'><span>Nov 2015</span></td>
<td data-sheets-value='[null,2,"July 2015",null,null,null,1]'>Dec 2015</td>
<td data-sheets-value='[null,2,"June 2015",null,null,null,1]'><span>Nov 2015</span></td>
</tr>
<tr>
<td data-sheets-value='[null,2,"METRO"]'>METRO</td>
<td data-sheets-value="[null,3,null,2.9]">3.1</td>
<td data-sheets-numberformat='[null,2,"0.0",1]' data-sheets-value="[null,3,null,3]">3.0</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400]">$410</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400]">$400</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"REGIONAL"]'>REGIONAL</td>
<td data-sheets-value="[null,3,null,2.4]">2.3</td>
<td data-sheets-value="[null,3,null,2.3]">2.3</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,290]">$290</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,290]">$305</td>
</tr>
</tbody></table>
<p><a href="/images/2016/02/19/Vacancy-Rates-Dec-2015.jpg" target="_blank"> Click to enlarge</a></p>
<img src="/images/2016/02/19/Vacancy-Rates-Dec-2015.jpg" alt="">
</div>
<p> </p>
</div>
<div class="web-part"> </div>
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po-LsXgBTHBmX

Melbourne unit rental price up, house rentals down: REIV

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<div><span style="line-height: 1.3em;">Properties sold in Australia without an agent account for less than one percent of all property sales in Australia, according to research by real estate comparison service Which Real Estate Agent.</span></div>
<div><span> </span></div>
<div><span>In figures, of the half-a-million homes sold in Australia in the 12 months to November, just 5,300 were sold by an owner without an agent.</span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/properties-for-sale.png" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/properties-for-sale.png" alt=""></span></div>
<div><span> </span></div>
<div><span>The UK’s property market is more mature than Australia's, and local property analysts often use UK data to predict Australian trends, it says.</span></div>
<div>
<p>According to the research, for sale by owner has similar market penetration in the UK as in Australia. Of the 1.2 million properties sold in the UK every year, just 10,000 are sold by owners who don’t use agents. That’s less than one percent of all property sales.</p>
<p>This suggests that unless a disruptor arrives and turns the entire property industry on its head, Australia’s for sale by owner market isn’t about to change. It hasn’t happened in the UK, and it’s unlikely to happen here.</p>
<p><a href="/images/2016/02/19/For-sale-by-owner-property-sales.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/19/For-sale-by-owner-property-sales.png" alt=""></p>
<p>Other key findings include: </p>
<div>
<ul>
<li>Half of the for sale by owner websites analysed had sold fewer than 200 properties in the past year</li>
<li>For sale by owner websites sold an extra 300 properties this year compared to last, but that growth dwarfs when compared to the thousands of homes sold every year by agents. </li>
</ul>
<p><span>For the research, Which Real Estate Agent </span>examined sales data for 12 for sale by owner websites to see how many properties sold in the last 12 months (December 2014 to November 2015), and in the 12 months before that (December 2013 to November 2014).</p>
<p><a href="/images/2016/02/19/growth.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/19/growth.png" alt=""></p>
<p>To derive sale numbers, they counted the number of sales listed on each website’s agency profile on realestate.com.au.</p>
<p>While hiring an agent will cost you, it is probably better to hire one if you are not experienced in the property market. There's also the downside risk of selling for a lower price than what you could have achieved with an agent. </p>
<p>The full article can be found <a href="https://whichrealestateagent.com.au/ultimate-guide-australias-sale-owner-market-sell-agent/" target="_blank">here</a>.</p>
</div>
</div>
<div> </div>
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j.ballantyne1990-6AQqhLzZaK

Homes sold without an agent make up only 1 percent of Australia's property market: research

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<p>Melbourne buyers agent Secret Agent has noted the local market is slowly starting come alive, although in which direction is not as yet clear due to early sample data.</p>
<p>According to the latest Secret Agent report, market conditions in <span style="line-height: 1.3em;">Prahran, Richmond and South Melbourne were on the up late 2015 and so far in 2016 with</span><span style="line-height: 1.3em;"> Brunswick, Brunswick East, Middle Park, North </span><span style="line-height: 1.3em;">Melbourne and South Yarra markets going bust. </span></p>
<p><span style="line-height: 1.3em;">Secret Agent said t</span><span style="line-height: 1.3em;">hese suburbs had been performing strongly throughout the </span><span style="line-height: 1.3em;">middle of 2015 and were due for a quieter period.</span></p>
<p><span>"The townhouse market has also noticed a softening across the <span>board, while houses performed best at 3% over the rolling </span><span>quarter. Houses have been the standout performer over the </span><span>past few years as their inbuilt scarcity of land and building </span><span>help this market grow," Secret Agent said.</span></span></p>
<p><span><span>"Apartments have continued to fall in value with Docklands, <span>East Melbourne, Hawthorn, Melbourne CBD, North Melbourne </span><span>and Southbank losing value. What may have softened the blow </span><span>is the decreasing stock of apartments on the market. With </span><span>stock inventory likely to grow again we should expect further </span><span>downward pressure on apartment pricing in the early parts of </span><span>this year.</span></span></span></p>
<p><span>"The rental market continues to stratify with strong demand </span><span>and price growth for stand alone homes near places of work </span><span>and rich in lifestyle options. New apartments are finding it </span><span>harder to establish tenancies with the continued supply of </span><span>new dwellings. The falling rent among these apartments gives </span><span>prospective tenants plenty of choice and this is a concern for </span><span>recent investors."</span></p>
<p>The report warned of<span> property valuations which help determine financing for </span><span>purchasers, with Secret Agent noting a a pull back in some values </span><span>that valuers are placing on real estate after auction sales which </span><span>might ripple into the market over the coming few months as </span><span>caution continues to creep in, stalling growth.</span></p>
<p><span style="line-height: 1.3em;">Quarterly Scorecard</span></p>
<p>OCT, NOV, DEC 2015 &amp; JAN 2016</p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%201.13.17%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%201.13.17%20PM.png" alt="" width="823" height="444"></p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%201.15.48%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%201.15.48%20PM.png" alt=""></p>
<p> </p>
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mick.cee-iDmgDDAmu8

Melbourne's Brunswick, South Yarra bust, Prahran, Richmond show momentum: Secret Agent

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<p><span>Queensland’s Toowoomba, Australia’s second largest inland city, has been identified by McGrath Estate Agents chief executive John McGrath as an important growth area.</span></p>
<p><span>“Toowoomba is an area that has all the hallmarks for growth," McGrath said, indicating his confidence in the South East Queensland property market.  </span></p>
<p><span>"We believe its strong focus and investment on infrastructure, retail, and lifestyle precincts will have an impact on both interstate migration and employment opportunities.  The relatively new airport is having a positive effect on the accessibility of the region, both domestically and into Asian markets. </span></p>
<p><span>“With a median house price of $350,000, the affordability of housing will not only be attractive to treechangers and downsizers but also to the investor market, as major construction is currently underway on several multi-million dollar projects."</span></p>
<p><span>The median house price was $364,000 towards the end of 2015, according to <span>RP Data</span>, while for units it was $256,000.</span></p>
<p><span>Major projects include the $1.6 billion Toowoomba Second Range Crossing and the $500 million Grand Central Shopping Centre.   </span></p>
<p><span>The transformation of Toowoomba Parkland’s Railway Precinct into an urban village and parkland is also ready to begin, with the Toowoomba Regional Council expecting up to 3,300 jobs during construction and a further 1,800 jobs in retail and service industries.</span></p>
<p><span>Toby Sandell, principal of McGrath Toowoomba, echoed the same confidence.</span></p>
<p><span>“We have seen fewer investors due to the tightening of lending criteria by the banks, however on the flipside, there are more and more first home buyers and upgraders, taking advantage of affordable buying and lower interest rates. There is good demand for quality properties in the right areas.”</span></p>
<p><span>Sandell said that younger families have been targeting South Toowoomba and Centenary Heights due to proximity to the shops and schools, with homes selling in the $350,000 to $500,000 range. </span></p>
<p><span>At the higher end, East Toowoomba and Rangeville fetch $500,000 to $800,000.</span></p>
<p><span>The dwelling composition of the city was made up of about 81% houses and 12.5% for apartments, while the semi-detached or terraced townhouses made up the rest, RP Data showed.</span></p>
<p><span>The population of Toowoomba was 99,482, according to the last ABS Census. </span></p>
<p><span>The city also remains a hotspot for residential property investors, according to valuation firm <span>Herron Todd White's recent report</span>.</span></p>
<p><span>Unit construction</span><span> is on at a rapid pace, adds HTW.</span></p>
<p><span>Last year, Property Observer had also reported on <span>Toowoomba topping Queensland's property market recovery</span>.</span></p>
<p><span>Author and blogger Pete Wargent has also spoke about <span>Toowoomba's success story.</span></span></p>
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McGrath earmarks Toowoomba for growth

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<p><span style="line-height: 1.3em;">A fairly simple development strategy for a first time developer wanting to boost their property portfolio is a dual occupancy project; buying land where you can build two dwellings and subdividing. </span></p>
<p><span style="line-height: 1.3em;"> The dwelling/villas may be attached or freestanding, either way you are basically halving the land cost for each and that is where the value lies.</span></p>
<p>Where Property Bloom develops, there is usually opportunity to create well over $150,000 in equity through a dual occ development, this is created within about twelve months and doesn't take into consideration the capital growth that also may occur during the development period.</p>
<p>The equity position of a project is determined when you take costs of the project away from the end value. However, be aware that you can't access the entire amount of equity created if you are refinancing on completion as the banks will most likely lend you around 80% of the value, leaving some equity in the project.</p>
<p>Timing your development can also boost the equity creation. If you are developing in an area experiencing good capital growth whilst your project is underway then you have timed your development well. Even if the market is flat, you can still manufacture some equity. Equity created is through the development and subdivision process because you are adding value to the land not with one dwelling but with two. By subdividing, you are halving the land cost for each dwelling.<span style="line-height: 1.3em;"> </span></p>
<p>Here’s an example of a dual occupancy project we recently completed:</p>
<p>Land cost: $270,000</p>
<p>Stamp duty: $2,940</p>
<p>($5,000 NSW New Home Grant* applied so the government contributes $5,000 this off sets the stamp duty cost)</p>
<p>Legal fees: $1,500</p>
<p>Build cost, including plans, council fees &amp; charges, subdivision costs, for duplex; three bedroom, two bathroom villas:  $450,000</p>
<p>Total cost:  $724,440</p>
<p>Actual end valuations:  $920,000 or $460,000 per villa</p>
<p>Equity created:  $195,560<span style="line-height: 1.3em;"> </span></p>
<p>Gross Yield 6.7% based on renting each villa at $480 per week. </p>
<p><span style="line-height: 1.3em;">If you are borrowing at around 4% then the project may be cash flow positive for you. This is when the rent and depreciation benefits combined cover the costs of interest, insurance, council, water rates and management fees.</span></p>
<p>There are strong depreciation benefits too, expected depreciation $20,000 Year 1 (using the diminishing method)</p>
<p>* <a href="https://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_nhg1.pdf" target="_blank">click here</a> for more.</p>
<p><span style="line-height: 1.3em;">Want to know how to do it? </span></p>
<p>Of course I'd recommend using an experienced project manager to guide you through but you can have a go yourself - it will depend on the resources or skills you have available; time, experience, knowledge, contacts with a bit of patience thrown in. </p>
<p>The steps involved in a dual occupancy development strategy are:</p>
<ol>
<li>Finance preapproval. It’s important before you start looking at development sites or any property, that you have a preapproval from a lender in place.</li>
<li>Understand the council requirements for dual occupancies in this area. Study the council’s Local Environment Plan (LEP) and Development Control Plan (DCP).  This will let you know the size of land you’ll need for your dual occ and what is permissible.</li>
<li>Conduct due diligence on the area you want to develop in; understand the zoning for dual occupancies. Having correct zoning doesn't always mean you can carry out a dual occ. There may be covenants on the land preventing building more than one dwelling.</li>
<li>Search for land that meets a number of criteria; size – look at the frontage and know what the minimum width is for your dual occ. Look at the depth and size to ensure the land is large enough to meet the DCP including the minimum outdoor private space requirements. Check the aspect, north facing living areas are desirable and will make meeting the BASIX requirements much easier. Make sure there are services to the site; electricity, sewer, gas. Then ensure the land is relatively flat with a slight slope to the street unless there is a drainage easement at the back. </li>
<li>Check the Planning Certificate to see if the land is in a bushfire or flood zone.  You can still develop in these areas but it will add to your build costs. </li>
<li>Have your builder look at the site. This is very important as the builder will look at the land from a different perspective.</li>
<li>Run a feasibility to ensure the project will be viable. Find recent comparable sales references to base your end value estimates on. Talk to agents about the current rental market and what rent could be expected and calculate the projected yield on completion. Most importantly, you need to have a good understanding of the build costs. The build costs will evolve over the design and planning process. Your builder can give you an estimate once a concept plan is available, but as the full Development Application (DA) plans and documentation is available, the builder will then need to run a full tender. Cross check this against your original estimate. If it’s in line, lodge the DA if it’s not, go back to the design and look at areas where you can reduce costs. Once the plans are approved, the builder may update their tender if council asked for any changes. If not, then a final tender will be generated once the engineer’s plans for the Construction Certificate (CC) are available.</li>
<li>When securing the land, request a long settlement period with permission to lodge a DA from the vendor. You can get all the design work and perhaps even have the DA and CC approved before you settle on the land, this will reduce your holding costs.</li>
<li>Once you have the DA &amp; CC approvals, you can then go back to your lender to obtain your unconditional construction loan. As soon as this is in place, construction can commence.</li>
<li>The build phase for a dual occ should be around three to four month, depending on weather. You need to be on site each week to check the builder’s progress and put out any ‘fires’ that may arise as you are under construction. I've heard some stories of build times taking up to twelve months, so make sure you conduct due diligence on your builder before appointing them.</li>
<li>Once the building works are completed, an Occupation Certificate will be issued. You can now have your villas tenanted. Don’t forget to order a depreciation schedule to maximise your tax rebates.</li>
<li>You can now apply for the subdivision certificate and once council issues this, you can register the subdivision (after your lender has signed off on it).  There is no need to register immediately if you are planning to hold and not planning to refinance as you may find costs such as rates may be a little less if the villas are kept on one title.</li>
</ol>
<p>I’ve summarised the process briefly, but it’s actually not that straight forward. You really do need the time to work on this development strategy closely as mistakes can be costly. If you're a first time developer, use an experienced property development project manager. Our clients enjoy the peace of mind that we've found the right location and development site for them and that their project is being managed efficiently, they also benefit from our long term relationship with our builder. All the fine details are reported to them in a written weekly report, so they are learning from the process but still have time for their own career and family. It's an easy option.</p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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jochivers-wq5Bp59R5a

Boost your portfolio using this development strategy: Jo Chivers

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<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>GUEST OBSERVER</p>
<p>Much of the current tax debate is mangled by poor analysis and misconceptions. Let’s consider three topics: “bracket creep”; corporate tax rates; and negative gearing.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>The fact that inflation, more precisely wages growth, pushes individuals into higher marginal tax brackets has been advanced as the rationale for a variety of tax proposals. But the unacknowledged elephant in the room is the simple, rational, response to bracket creep – index the tax scales.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>That is, if inflation was 5% over the past year and the 37% marginal tax rate previously started at an income threshold of $80,000, that threshold would be increased to $84,000 (that is, an increase of 5%).</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>It is legislatively and administratively simple. A low inflation environment makes this the ideal time to implement such a beneficial change which can counter profligacy of future governments, should high inflation return and induce higher tax revenues from bracket creep.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>That one is simple. The real issues in the corporate tax rate debate, where many advocate lowering the rate, are more subtle – and missed by most of those advocates. Under our dividend imputation tax system, company tax payments are offset by lower investor tax payments when earnings are paid out as franked dividends to Australian investors. For such investors, lowering the company tax rate has (subject to a few caveats) no effect on their after tax returns from investment.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Who would benefit? Foreign-owned companies for one, for which the after-tax returns from Australian operations are increased (assuming they haven’t structured affairs to avoid tax anyway). That might induce more of them to establish or expand operations in Australia – although it should be stressed that our corporate tax rate, while above that of some Asian neighbours, is below that of a number of advanced countries. So arguments that our corporate tax rate is “uncompetitive” do not obviously cut the mustard.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Other beneficiaries would include private Australian companies owned by wealthy individuals on (hopefully) high marginal tax rates. For them, there are significant tax benefits from retaining earnings in the company rather than paying franked dividends.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Doing so avoids the extra tax payable at the personal level (after allowing for franking credits) due to their marginal tax rate exceeding the company rate. Instead retention of earnings (and franking credits) generates capital gains which may eventually be taxed at the concessional capital gains tax rate. So lowering the company tax rate would benefit these wealthy individuals (and does nothing for small private companies struggling to make a taxable profit).</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>A third set of beneficiaries might be Australian companies – but the source of any such presumed benefit is subtle. A benefit would arise if the cost of equity capital was reduced through a lower company tax rate.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>As explained above, there is unlikely to be any such effect from a change in the required rate of return of Australian investors. Foreign investors might lower their required rates of return, but that is, at least, debatable.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Of course, one doesn’t need to lower the company tax rate to achieve this – a rebate of tax on dividends paid to foreign investors would achieve the same outcome. And the political resistance that would undoubtedly occur in response to such a proposal should indicate that relying on this argument for reducing company tax is untenable. And remember, our company tax rate is in the middle of the pack for advanced economies.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Finally, negative gearing. There is nothing wrong with negative gearing itself (although fraught with risk due to leverage). The problem is that there are undesirable tax benefits associated with it, arising from claiming current tax deductions for interest paid on financing an investment on which tax on returns will be deferred and at a concessional rate.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>The solution? Removing concessional capital gains tax (or at least returning to full taxation of real capital gains) is part of the solution. But it is only part – because deferring tax payments until realisation of the asset sale implies a lower effective tax rate.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>It would not be feasible to tax capital gains as they accrue, given the adverse cash flow consequences for investors. However, we could use a variant of the tax treatment of companies with carry forward tax losses, which are compounded up at the government bond rate to keep their real value until usable.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>Quarantining currently deductible interest costs on negative gearing to offsetting income earned on the investment, plus carry forward of additional unused interest costs is one way to go. When the investment is eventually sold, or when income exceeds interest expense, those accumulated unused costs could be claimed for tax purposes.</p>
<h4><a href="https://theconversation.cmail20.com/t/r-l-vkiihjl-qitldhiii-yh/" target="_blank"></a></h4>
<p>This is not administratively complex, would be fairer for other taxpayers who ultimately pay for the concessions, and might reduce incentives for excessively leveraged investments.</p>
<p><span class="fn author-name" style="line-height: 1.3em;"><span style="line-height: 1.3em;">Kevin Davis</span> 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.</span></p>
<p><span style="line-height: 1.3em;">He can be contacted <a href="https://theconversation.com/profiles/kevin-davis-3497" target="_blank">here</a>.</span></p>
<p> </p>
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jchancellor-FAypfDUnLy

Property 101: Understanding bracket creep, negative gearing and corporate taxation

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<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">2016 will be the year the residential property cycle starts to ease, with growth in both pricing and development set to trend lower. </span></p>
<p><span style="line-height: 1.3em;">As the residential property cycle recedes, the focus will shift to commercial property. Although investment activity is already running at a high level, interest in commercial property is set to intensify further in the year ahead. </span></p>
<p>With pricing likely to be pushed one notch higher to reach record levels, emphasis will turn to increasing returns through improvements in rental levels or a property’s net operating income. Each commercial property sector and market offers very different growth potential.</p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.23.40%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.23.40%20PM.png" alt=""></p>
<p><strong>Residential development set to ease </strong></p>
<p>Recent years have seen an unprecedented rise in residential development, driven by high rise and high density apartments. The extraordinary growth across the industry reflects a surge in investor activity and a significant shift to apartment living in all of Australia’s major cities. </p>
<p>However, apartment development is likely to slow this year ― following a trend that emerged in the middle of 2015, when approvals started to drop. A decline in approvalsasshown in <strong>Chart 1, </strong>is typically a signal the commencement of new construction activity will ease within six to 12 months. </p>
<p>With fewer approvals, commencements have indeed tapered, although they’ve plateaued at a high level. This is likely to see buoyant construction activity continue into 2017.</p>
<p>During the next phase of this unwinding process, as projects are completed, fewer will commence to take their place. The overall effect will be an eventual reduction in development activity which is likely to then continue at a more sustainable level.</p>
<p>Ultimately, this means some of the developments approved over the last few years will not proceed in this cycle. Owners may choose to sell those sites, providing an opportunity for others to develop uses more aligned to the changing demand-side conditions of 2016.</p>
<p><strong>Brisbane and Melbourne to lead site sales</strong></p>
<p>The markets which have pushed hardest in apartment approval and development over the last few years are most likely to witness site sales in 2016. Brisbane and Melbourne stand out as the cities where developers are most likely to sell sites, as markets with sufficient demand for alternative uses in both the short and long term.</p>
<p>Although the Australian economy is forecast to grow below trend in 2016, underlying demand conditions in some sectors are sufficient to support alternative inner-city uses provided for in new development outlined in C<strong>hart 2</strong>.</p>
<p>Tourism-related activity is growing on the back of the lower value of the Australian dollar and high growth in tourist arrivals from Asia, particularly China. This is leading to demand for more tourist accommodation to cater for various consumer markets.</p>
<p>Similarly, demand for education is enjoying steady growth, particularly for higher education from international students. Purpose-built student accommodation is considered a pre-cursor to provide for this demand. </p>
<p>The easing back of the apartment development sector could be the opportunity student accommodation providers need ― enabling them to secure their desired sites in strong locations at more reasonable prices. </p>
<p>Other uses may underpin development or refurbishment of existing buildings on sites previously earmarked for residential. These include boutique retail, office, medical, child care, service industrial, car parking or mixed use.</p>
<p>Local or State Governments may also see an opportunity in 2016 to buy sites to provide for public uses, such as schools, medical or transport-related, to better serve the large and fast-growing high density <span style="line-height: 1.3em;">residential communities of these inner-city locations.</span></p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.24.59%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.24.59%20PM.png" alt=""></span></p>
<p>Alternatively, existing developer-owners in these areas may look to purchase sites to consolidate properties and plan for projects in the next residential development cycle</p>
<p><strong>Turning to investment</strong></p>
<p>Beyond the likely shake-out in the residential development sector, interest in commercial property as an investment is expected to continue at a high level in 2016.</p>
<p>As uncertainty grows in global financial markets, more investors are driven to purchase quality commercial property. The start of 2016 has already been marked by volatility in markets around the world, including Australia.</p>
<p>With increased investment activity over the last few years, pricing has been pushed to an all-time high, across all price points. However, although prices are high, interest rates remain low making it attractive to buy quality real estate at current prices.</p>
<p>However, its also important at this point of the cycle to take into consideration factors which create a high quality commercial property asset, in both the short and long-term. These include:</p>
<p>•Strength of location for the use(s);</p>
<p>•Prospect of re-letting in the case of a vacancy;</p>
<p>•Strength of the tenant as a leasing covenant;</p>
<p>•Length and terms of the lease;</p>
<p>•Level of the rent relative to the prevailing market;</p>
<p>•Prospects for rent or other property income increases;</p>
<p>•Physical condition of the property and the need for any capital expenditure;</p>
<p>•Redevelopment potential;</p>
<p>•Land use zoning; and</p>
<p>•Any building operating costs which cannot be passed onto the tenant</p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.26.58%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.26.58%20PM.png" alt=""></p>
<p><strong>Leasing demand holds strong</strong></p>
<p>Purchasing commercial investment property at a high price places greater emphasis on the ability to increase income from the property and improve future returns.</p>
<p>The prospect for property income growth is driven by the strength of both leasing demand for a property and its location, as well as the number of available suitable properties competing for tenant.</p>
<p>In 2016, the strength of leasing demand for commercial property is likely to be highest in Sydney and Melbourne. In these two cities, growth in population, employment and the economy generally is leading the country and providing the best short-term conditions to reduce market vacancy and increase rents or other property income. </p>
<p><strong>New opportunities in the mining capitals</strong></p>
<p>A significant trend in 2016 will be investors turning back to consider commercial property in Perth and Brisbane. Although these two markets have been adversely impacted by the restructure of their economies as the mining sector winds back, it seems the downturn phase of this restructure is largely over.</p>
<p>Looking ahead, recovery is the next phase for the Western Australian and Queensland economies and their commercial property markets. This may take some years, but it looks like the worst is over –and both Perth and Brisbane are likely to enjoy an increase in investment interest and activity over the next few years.</p>
<p><a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.28.10%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.28.10%20PM.png" alt=""></p>
<p><strong>Expansion into growing markets </strong></p>
<p>Higher investment yields can be found in Adelaide and Canberra commercial property and this started to stimulate investment activity in both markets in 2015. We expect this activity to increase in 2016 as relatively higher yields will continue to be found in these markets, compared to those in larger cities.</p>
<p>This is also in the context of downward pressure on yields being maintained across Australian commercial property, particularly for quality assets.</p>
<p>There will also be opportunities to invest in commercial property in regional Australia in 2016. However the outlook in these locations varies considerably and is tied to local economic and property drivers as well as being very sensitive to tenant competition.</p>
<p>Those factors which contribute to a quality asset, as outlined on page 2, need to be very carefully considered and applied in smaller markets, as the level of underlying tenant demand is lower and the economies of these cities continue to be heavily impacted by industry restructure.</p>
<p><strong>What does it mean for investors? </strong></p>
<p>While 2016 is expected to be a volatile year and one underpinned by an acceleration of change to property drivers, there is still plenty of opportunity to engage with the market.</p>
<p>The easing in high density apartment development is likely to see an increase in the sale of sites once earmarked for residential projects. These sites may provide the opportunity to offer uses to service the market created by a fast increasing population in these new high density suburbs. Ideally, shorter-term uses in existing buildings may provide the option for more intensive development in the future, when the residential development cycle strengthens once again.</p>
<p>In the meantime, the popularity of commercial property as an investment is set to increase further in 2016, amidst volatility of global and local financial markets. </p>
<p>The challenge will be buying the right property at the right price and working to improve income returns into the short to medium-term. While the larger cities offer greater short-term possibilities in this regard, buyers need to be selective elsewhere, as the timing around improvement in the fundamentals is less clear.</p>
<p><em> </em></p>
<p><em>Kevin Stanley is head of property strategy and research, Corporate Financial Services, <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.</em></p>
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