<p>Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.</p>

<p>Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.</p>

<p>The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372212]</p>

<p>Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.</p>

<p>"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.</p>

<p>"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372227]</p>

<p>Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.</p>

<p>A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.</p>

<p>The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.</p>

<p>Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372225]</p>

<p>While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.</p>

<p>The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.</p>

<p>The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372222]</p>

<p>The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.</p>

<p>Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.</p>

<p>"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.</p>

<p>The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.</p>

<p>The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.</p>

<p>Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.</p>

<p>"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.</p>

<p>"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."</p>

<p>Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.</p>

<p>[smartcode_project_cta:default project_id=146717]</p>


Joel Robinson

Lowe Living launches Jardin House in Camberwell

<p>As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.</p>

<p>Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.</p>

<p>At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6395]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.</p>

<p>Rothelowman says the site itself shaped much of the architectural response.</p>

<p>“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6399]</p>

<p>Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.</p>

<p>The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.</p>

<p>Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.</p>

<p>“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=353235]</p>

<p>A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.</p>

<p>The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.</p>

<p>The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6390]</p>

<p>“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”</p>

<p>At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.</p>

<p>ALAND has commenced construction, and is expecting a completion date in 2028.</p>

<p>[smartcode_project_cta:default project_id=134323]</p>


The Walden pairs house-scale living with North Sydney connectivity

<p>The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.</p>

<p>The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.</p>

<p>"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=350986]</p>

<p>The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.</p>

<p>The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.</p>

<p>New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.</p>

<p>While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.</p>

<p>The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.</p>

<p>The latest reform removes one of the final barriers facing first home buyers in Canberra.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=359152]</p>

<p>The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.</p>

<p>Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.</p>

<p>From July, those restrictions disappear.</p>

<p>Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.</p>

<p>Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.</p>

<p>Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.</p>

<p>"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.</p>

<p>"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.</p>

<p>"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."</p>

<p>Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.</p>


15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

<p>A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.</p>

<p>The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.</p>

<p>A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=370648]</p>

<p>Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.</p>

<p>For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.</p>

<p>A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=370647]</p>

<p>The attention to detail extends beyond the rooftop.</p>

<p>Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=372541]</p>

<p>The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.</p>

<p>Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.</p>

<p>Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=351535]</p>

<p>Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.</p>

<p>Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.</p>

<p>For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.</p>

<p>[smartcode_project_cta:default project_id=134800]</p>


Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<p><a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.</p>

<p>Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.</p>

<p>Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.</p>

<p><img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" /></p>

<p><a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.</p>

<p>The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.</p>

<p>&nbsp;</p>

<p><img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" /></p>

<p>Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.</p>

<p>Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.</p>

<p>Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.</p>

<p>[smartcode_project:default project_id=135247 project_image_fid=262183]</p>

<p>Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.</p>

<p>The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.</p>

<p>[smartcode_project:default project_id=135247 project_image_fid=364995]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.</p>

<p>Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.</p>

<p>[smartcode_project_cta:default project_id=135247]</p>


Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

<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>Are mortgage holders set to get a reprieve from the RBA in 2026?</p>

<p>Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.</p>

<p>NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.</p>

<p>“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.</p>

<p>"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.</p>

<p>Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.</p>

<p>“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”</p>

<p>Dr Auld said inflation risks and labour market outcomes would be important to watch.</p>

<p>“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”</p>

<p>She said tighter financial conditions are expected to weigh on housing and activity.</p>

<p>“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”</p>


Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

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<p>Affordability nationwide improved in the five years between 2011 and 2016 – that’s one of the more interesting facts to emerge from the 2016 Census data. </p>
<p>An analysis by population analysts profile.id finds that the median mortgage payment in 2011 was $1,800 per month, but in 2016 it was $1,755. Over the same period the median household income increased from $5,330 to $6,205 per month. </p>
<p>Of course, these are national average figures and they conceal myriad differences among the various states and cities. The biggest improvements in affordability, in terms of the reduction in mortgage payments, occurred in Queensland and the ACT. </p>
<p>But there was even a small improvement in New South Wales, notwithstanding the big price rises in Sydney. </p>
<p>Unsurprisingly, the biggest single factor in the reduction in mortgage payments was the decrease in interest rates. In 2011, the official cash rate was 4.5 percent and by 2016 it was 1.5 percent. Glenn “the Census expert” at profile.id says: “While the banks have passed on less and less of these cuts, it’s certainly the case that mortgage interest rates being paid by home owners in the past five years have reduced.” </p>
<p>Perhaps the most startling fact is that the median mortgage payment for the Greater Sydney area was the same in 2016 as it was in 2011. And in Melbourne the median mortgage payment reduced slightly. </p>
<p>The analysis examined mortgage payments for people aged between 18 and 34 who have a mortgage and don’t live at home with their parents – i.e. looking at the profile most likely to include first-time buyers. This is where the improvement in affordability was actually the highest, in terms of the reduction in median mortgage payments between 2011 and 2016. </p>
<p>In the ACT, for example, median monthly payments dropped from $2,460 to $2,140, while in Queensland they fell from $2,165 to $1,958. Even in NSW, the median mortgage payment for this demographic dropped from $2,182 to $2,129. </p>
<p>As Glenn points out: “There are very large falls in mortgages in the ACT ($320/month) and Queensland ($207/month). But even in Sydney and Melbourne, which have seen rapid escalation of housing prices, there have been modest declines in what 18-34 year olds are actually paying on their mortgages when they have them. </p>
<p>“So in fact, a larger part of the decline (in mortgage payments) is in this key group. Probably because they have the larger mortgages and are more affected by changes in interest rates. So, while we have seen that children are delaying leaving home longer (though not much longer), once they do leave home they are actually paying less to buy a house.” </p>
<p>These figures put another perspective on the general issue of housing affordability. </p>
<p>But here’s the thing: every day the Hotspotting team scours media sources for information on residential real estate and, to date, we haven’t found any coverage of this very thorough and professional analysis of the affordability situation. </p>
<p>No newspaper or other media outlet has run this story. Why not? Because it doesn’t suit the pre-conceived storyline, the much-beloved theme of everyone being priced out of the market. </p>
<p>Another reflection of media bias on this subject came earlier in the year when one of the major affordability indexes published the latest findings. There were two scenarios: in annual terms, affordability had improved in most states and territories, but comparing the latest quarter to the previous quarter, affordability had declined in most states and territories. </p>
<p>Every media outlet which ran an article in this report focused on the quarter-to-quarter deterioration and totally ignored the annual improvement. </p>
<p>Media has created a “crisis” by selectively using data to support the favoured theme which says no one can afford to buy any more. It’s obviously rubbish but that’s what they keep telling us – and so when someone runs a survey on the issue, a majority of citizens say they believe young people are priced out of the market everywhere. </p>
<p>It’s sad how dishonest our media is and also sad how easily people are deluded by it. </p>
<p>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></p>
<p> </p>
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terryryder-YECXbqmri2

Affordability actually improving in terms of mortgage payments: Terry Ryder

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<div>
<p>APRA announced further measures to cool certain sectors of the housing market last week.</p>
<p>Every man and his dog has written about this already, with a few excellent insights and some interpretations that were just plain weird - so let's keep this post as short as possible, shall we? </p>
<p>OK, here we go...</p>
<p>APRA wants lenders to place strict internal limits on the volume of interest-only lending at loan-to-value ratios (LVRs) above 80 percent, so firstly some lenders will immediately require a 20 per cent deposit for this type of loan. A shift in this direction has already taken place to some extent, so the impact of this may be marginal.</p>
<p>Lenders must now also ensure there is "strong scrutiny and justification of any instances of interest-only lending at an LVR above 90 percent", so interest-only loans with a deposit of less than 10 per cent will generally go the way of the dodo and the lo-doc loan. </p>
<p>Again, this has by and large already happened, but will have the ongoing effect of knocking a few more first-time buyers out of the market, while having no impact on incumbent owners with existing equity.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/02/C2.jpg" target="_blank">Click to enlarge </a></p>
</div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C2.jpg" alt=""></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Speed limit</span></strong></div>
<div> </div>
<div>The existing 10 per cent cap on growth for investment mortgage books will remain in place. I've spoken to branch managers and bank owners, and their view is generally that this won't have too much impact since new loans can always be pushed back a month.</div>
<div> </div>
<div>But a third impact may be that some lenders have to wind their necks in just a little bit further. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/02/C4.jpg" target="_blank">Click to enlarge</a> </p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C4.jpg" alt=""></div>
<p> </p>
<div>Fourthly, there will likely be a shift in the investor loan segment of the market towards private financiers or non-bank lenders, perhaps some of whom may offer commercial-style rates. </div>
<div> </div>
<div>Fifthly, banks have been presented with an open goal here for raising the rates on their investor loans, so rates will inevitably be ratcheted higher in due course. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Switch...</span></strong></div>
<div> </div>
<div>Between July 2015 and February 2017 some $50 billion of loans were switched from investor to owner-occupier mortgages following the introduction of an interest rate differential between the two types of loan. A sixth impact will therefore be yet further switching of loan purpose. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/02/C3.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C3.jpg" alt=""></div>
<p><strong><span style="text-decoration: underline;">Why worry?</span></strong></p>
<div>
<span>So far, so unremarkable. </span><span>But there's more...</span>
</div>
<div><span> </span></div>
<div><span>By far the most important impact will be a new 'speed limit' on interest-only loans in Australia, with APRA now aiming to limit the <strong><span style="text-decoration: underline;">flow</span></strong> of new interest-only lending to 30 per cent of total new residential mortgage lending.</span></div>
<div><span><br>At the heady peak more than 45 per cent of new loans were interest-only in nature, with investors in particular favouring this type of product in order to maximise their tax deductible expenses.  </span></div>
<div><span> </span></div>
<div><span>A seventh impact will be that new owner-occupiers wanting to use this type of product in future may be given their marching orders, and possibly some aged borrowers too. </span></div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/02/C1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C1.jpg" alt=""></div>
<div class="separator"> </div>
<div>Eighthly, if that is even a real word, two of Australia's major banks have been rolling over interest-only loans more or less automatically at the end of the interest-only period, and these lenders will almost certainly now require a far more stringent assessment. </div>
<div> </div>
<div>Of course, few borrowers will default on a loan when they've seen the value of their Sydney property double over the preceding five years, though they might choose to sell off their investment if the repayments become too arduous. The impact in markets where dwelling prices have declined might prove to be an altogether more dramatic story.</div>
<div> </div>
<div>The ninth impact - perhaps an over-arching point really - is that far too many investors have simply assumed they will continue rolling interest-only debt <em>ad infinitum, </em>and they may now have to get it into their heads that they will be paying back principal sooner or later.</div>
<div> </div>
<div>Seemingly every other week an article surfaces featuring 'young gun investors' with a dozen interest-only loans having been used to buy high-yielding properties in far-flung areas. </div>
<div> </div>
<div>Credit markets tend to move in cycles, so APRA's changes may or may not be permanent, but in the prevailing market conditions some borrowers could get caught short if they've simply planned to continue rolling interest-only debt on an endless loop. </div>
<div> </div>
<div>Oh, and there may be further macroprudential measures to come!</div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
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pwargent-M4siyDbqQY

APRA offers further measures to cool certain housing market sectors

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<p>There are growing signs that some regional markets impacted by the resources sector have passed the worst and are starting to improve.</p>
<p>These are locations where increased dwelling supply coincided with a downturn in demand as the mining investment boom subsided (or miners built workers camps), causing sales and prices to fall.</p>
<p>Places where demand appears to be rising again include NSW towns impacted by the coal industry (Muswellbrook, Singleton and Mudgee), WA centres for the iron ore and gas sectors (Port Hedland and Karratha), and Queensland towns impacted by coal (Emerald, Mackay and Moranbah).</p>
<p>But that’s not a signal for investors to start buying in these places again. I would hope the many boom-bust scenarios that occurred over the past 4-5 years has left a lasting impression on investors across Australia.</p>
<p>Before the end of the resources investment boom, far too many investors jumped into these markets without understanding the extreme volatility of them and/or their own risk profiles.</p>
<p>The extent of the slump in some of these locations is demonstrated by these figures: at the pinnacle of the resources investment boom, the median house price for Port Hedland in WA was well above $1 million. The latest figures shows a median price around $400,000, following a further 33 percent decline in the past year.</p>
<p>In the coal-mining town of Moranbah in Central Queensland, the median house price has fallen from above $700,000 at the peak of the boom to around $160,000 today.</p>
<p>These are some of the most extreme examples of decline but there are many others, including Queensland centres like Gladstone, Mackay, Emerald and Surat Basin towns such as Chinchilla.</p>
<p>In many cases the downturn in local markets was not caused by any decline in the key resources industry (in many cases it was the CSG/LNG sector which continued to create jobs and economic activity in the affected locations) but by a fundamental switch in the approach of the mining companies to accommodating personnel in workers camps.</p>
<p>Developers who built lots of new product in these places found out, too late, that there was not the expected demand for local dwellings. Places like Gladstone in Queensland and Newman in WA had a boom economy but a doom property market.</p>
<p>Now there is evidence that sales activity is rising in some of these places, after slumping significantly in the past three years. In 2015, each quarter had fewer than 45 sales for Port Hedland and South Hedland combined. But the past three quarters have each had more than 60 sales, with a pattern of rising sales numbers.</p>
<p>In Karratha, residential sales numbered fewer than 55 in most quarters throughout the three years covering 2013 to 2015. But sales activity rose noticeably in 2016, with the past three quarters each delivering more than 75 sales. The general trend is up and we await evidence that 2017 will continue the pattern.</p>
<p>In the meantime, I urge extreme caution for investors considering dipping a toe in these dangerous waters. Resources-related markets are at the high-risk end of the spectrum - there are periods of sharp rises, often followed by catastrophic decline.</p>
<p>I would never buy in these places, because the risks are too high. And the modern trend of workers camps mean that the dwelling demand generated by major mining projects is considerably lower than in the past.</p>
<p>A warning is timely because there is renewed confidence in the resources sector. New projects are being planned and mothballed ventures are being reactivated, particularly in Queensland and WA. As sales activity rises in resources centres, the industry will be pumping out press releases suggesting the boom days are returning.</p>
<p>Hopefully the massive price and rental decline of recent years will live long in the memories of investors.</p>
<p><span>T</span><em>erry Ryder is the founder of </em><a href="https://www.hotspotting.com.au/"><span class="s2"><em>hotspotting.com.au</em></span></a><em>. You can  </em><a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E"><span class="s2"><em>email him</em></span></a><em> or follow him on </em><a href="https://twitter.com/hotspotting"><span class="s2"><em>Twitter.</em></span></a></p>
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Growing signs resources-heavy regional property markets on the improve

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<p>GUEST OBSERVER</p>
<p>Those who find Sydney a tad rich don’t have to go too far to find major markets with greater affordability and good growth prospects.</p>
<p>Newcastle has a rising economy, a strong property market and appears to be settling into a sustained period of growth.</p>
<p>The city, about 160km north of Sydney, presents an appealing formula for property investors: relatively affordable prices, an overall solid growth record and major impetus from economic activity in and around the city.</p>
<p>It has delivered steady price rises over the past three years and in the past 12 months several Newcastle suburbs have recorded double-digit median price growth. There’s more to come, I think.</p>
<p>Key projects keeping the Newcastle economy strong include the CBD revitalisation, residential construction, upgrades to transport infrastructure and expansion of the Newcastle port.</p>
<p>Newcastle is already the world’s biggest coal export port and major upgrades to export facilities occur regularly. A $1 billion upgrade to the Newcastle Airport and RAAF Base is also under way.</p>
<p class="BodyCopy">The airport – where the runway is shared with the RAAF Base Williamtown – is already a major employer, with around 3,000 military and civilian personnel working at the base.</p>
<p class="BodyCopy">Newcastle is Australia’s seventh largest city and one of its oldest. It has a busy harbour, many beaches and plenty of elegant historic buildings. Despite its reputation as an industrial city, Newcastle is ranked the sixth most visited place in Australia, attracting 9.6 million visitors per year.</p>
<p class="BodyCopy">It thrives as part of the Hunter Region, which is the largest economic base in NSW outside of Sydney. The Hunter region is also well known for its primary industries, notably equine breeding and winemaking. It’s also a key area for mining and power generation.</p>
<p class="BodyCopy">But in recent years, much of Newcastle’s employment growth has been experienced within the services sector, especially in health and the tertiary education sector.</p>
<p class="BodyCopy">Generally, Hotspotting regards Newcastle as one of Australia’s most under-rated markets. It has strong prospects as an affordable alternative to Sydney, offering an attractive beach lifestyle, proximity to the Hunter Valley and to Port Stephens, plus solid job prospects in a growing economy.</p>
<p class="BodyCopy">The impetus of the State Government’s Urban Renewal Strategy for Newcastle has become clearly evident; building activity has been rising for the past 3-4 years – especially with unit construction – as the city strives towards higher-density living to cater for population growth.</p>
<p class="BodyCopy">Over 100,000 new dwellings will be needed in the Lower Hunter region by 2031, according to the NSW State Government.</p>
<p class="BodyCopy">The affordability of Newcastle relative to Sydney is shown in the median house prices in the Mayfield suburbs ($445,000 to $484,000), Shortland ($380,000), Wallsend ($415,000) and Waratah ($500,000), as well as the median unit prices in New Lambton and Waratah (both $380,000), and Adamstown ($405,000).</p>
<p class="BodyCopy">There are good prospects for real estate in Newcastle, based on extensive spending on infrastructure and property developments.</p>
<p class="BodyCopy">Newcastle has recently been the beneficiary of investment activity, largely stimulated by the $6.55 billion State Government investment mandate covering projects such as the new light rail system on Hunter Street, the transport interchange at Wickham and construction of the Newcastle City University Campus.</p>
<p class="BodyCopy">A June 2016 map of Newcastle building activity showed 28 residential projects with a combined value of $1.6 billion in the construction pipeline, with more proposals in planning. Around 3,000 apartments will be added to the city’s housing stock as a result, including 1,200 in the west end.</p>
<p class="BodyCopy">Work on revitalising the CBD began in December 2014, with the $73 million transport interchange at Wickham expected to open late in 2017. The interchange will integrate trains, buses, taxis, light rail, cyclists and car drop-off and pick-ups, alongside a light rail service from Wickham to the beach.</p>
<p class="BodyCopy">The Hunter Street Mall is also receiving a serious makeover, transforming the CBD into 50 percent residential and 50 percent commercial/retail. Included in the plans are an “eat street”, an entertainment precinct and around 500 apartments.</p>
<p class="BodyCopy">The State Government plans to move sections of Newcastle University into the CBD to help revitalise the inner-city.</p>
<p class="BodyCopy">Key projections for the university over the coming decade include increasing its student numbers to 40,000, making it one of the top three regional universities in Australia.</p>
<p class="BodyCopy">Construction has started on the $95 million NewSpace campus, with the NSW Government contributing $25 million towards the cost. By 2020, the university expects to have moved its business, law and creative arts faculties entirely to the CBD.</p>
<p class="BodyCopy">All this activity is helping to keep the Newcastle economy vibrant, providing a strong underpinning to a growth property market.</p>
<p class="BodyCopy"><span>T</span><em>erry Ryder is the founder of </em><a href="https://www.hotspotting.com.au/"><span class="s2"><em>hotspotting.com.au</em></span></a><em>. You can  </em><a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E"><span class="s2"><em>email him</em></span></a><em> or follow him on </em><a href="https://twitter.com/hotspotting"><span class="s2"><em>Twitter.</em></span></a></p>
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Housing affordability and price growth prospects in Newcastle

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<p>GUEST OBSERVER</p>
<p>It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6 percent in February; the largest fall in lending for investment purposes since September 2015. </p>
<p>While this is only one month of data, it is likely that investment lending has moved, or is moving through the peak of the cycle.</p>
<p>The February 2017 housing finance data which was released today by the Australian Bureau of Statistics (ABS). </p>
<p>The data showed that in February 2017 there was $32.9 billion worth of housing finance commitments which was -2.7 percent lower over the month but 3.5 percent higher compared to the value in February 2016. </p>
<p>To highlight how much lending is going to housing it is interesting to note that five years earlier, $20.4 billion worth of housing finance commitments was recorded in February 2012.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-1-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-1-1.jpg" alt=""></p>
<p>The $32.9 billion of housing finance commitments in February 2017 consisted of $20.0 billion to owner occupiers and $12.9 billion to investors. </p>
<p>The value of lending to owner occupiers has changed very little over the past eight months and was -0.5 percent lower over the month and -2.3 percent lower year-on-year. </p>
<p>The value of lending to investors fell by -5.9 percent in February but is still 14.0 percent higher year-on-year. </p>
<p>The -5.9 percent monthly fall in the value of lending to investors was the largest monthly fall since September 2015 and is a dramatic change in direction for investment lending which has been trending higher since January 2016.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-2-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-2-1.jpg" alt=""></p>
<p>Owner occupier housing finance commitments are split into four types: construction of dwellings ($1.8 billion), purchase of new dwellings ($1.0 billion), refinancing of established dwellings ($6.2 billion) and purchase of established dwellings ($11.0 billion).  Construction of dwellings and purchase of new dwellings rose over the month and were also the only commitment types higher year-on-year. </p>
<p>Lending for refinances in particular have been in a steady decline since December 2015, at that time there were $7.3 billion in commitments over the month with the $6.2 billion in February 2017 tracking -15.6 percent lower. </p>
<p>This does seem a little counter-intuitive given that since December 2015 there has been substantial repricing of mortgage rates since that time and investors have returned to the market which could have involved refinancing of their owner-occupied properties to fund the investment.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-3-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-3-1.jpg" alt=""></p>
<p>Lending to investors slowed markedly in February 2017 with the two components: new construction ($1.0 billion) and established dwellings ($11.9 billion) each recording a fall over the month. </p>
<p>Lending for construction was -13.6 percent lower in February while lending for established dwellings fell by -5.2 percent. </p>
<p>The decline in housing finance commitments predates the new policy announcement from APRA to lenders a week ago notifying them of changes to lending policies, in particular for interest-only lending which is popular amongst investors. </p>
<p>Although the letter was only recently published, the discussions about the lending policy changes have probably been ongoing with lenders for a number of months and may help to explain the fall in investor lending in February. </p>
<p>Over the next few months it will be interesting to see the direction of lending to investors, if it falls like it did after April 2015, it could lead to a slowdown in the rate of value growth in the housing market although there is little evidence of this occurring as yet.</p>
<p>Click to enlarge</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-4-1.jpg" alt=""></p>
<p>The above chart shows the value of lending for new housing compared to the value for existing housing, note that refinances are excluded from this data.  New housing is defined as: owner occupier construction of dwellings, owner occupier purchase of new dwellings and investment construction of dwellings which totalled $3.9 billion in February 2017 compared to $22.9 billion for existing housing. </p>
<p>New housing accounted for 14.5 percent of total housing finance commitments over the month. Even though we are in the midst of a housing construction boom there has been no substantial increase in the value of finance commitments for new housing over recent years. Keep in mind though that there are substantially more established properties than new with the 9.8 million dwellings nationally only increasing by 1.8 percent over the past year.</p>
<p>The next few months of housing finance commitments data will be interesting to follow to see if the softness in investor demand continues.  Also with many lenders repricing mortgage rates since February there may be an increase in refinance activity which has been slowing since the end of 2015. </p>
<p>Overall the nature of the mortgage market is changing with higher interest rates and a fresh round of macroprudential controls recently implemented. The next few months should provide insight into whether these tools can ultimately slow some of the current exuberance being shown by investors.</p>
<p class="p1"><span class="s1"><em>Cameron Kusher is research analyst for CoreLogic. You can contact him </em><a href="https://blog.corelogic.com.au/about/"><span class="s2"><em>here</em></span></a><em>.</em></span></p>
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Investor lending slows in February before the APRA crackdown was announced

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<p>Household finance data released by the Reserve Bank (RBA) each quarter looks at the ratios of household debts and assets to disposable income. The latest RBA update shows that while households debt is growing, asset wealth is simultaneously increasing. </p>
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<p>According to the RBA, the ratio of household debt to disposable income was recorded at 193.7% at the end of June 2017 and now sits at a record-high having increased by 2.0% over the quarter and by 3.9% over the year.</p>
<p>According to CoreLogic research analyst Cameron Kusher it was not surprising to see that most of this debt is housing related; the ratio of housing debt to disposable income is recorded at 136.4% having increased by 1.4% over the quarter and 3.9% over the year.</p>
<p>Kusher said, “Clearly, household and housing debt has increased over time relative to disposable incomes. Of note is that since the financial crisis, the rate of escalation has slowed.”</p>
<p>Further data from the RBA reveals that of the 136.4% ratio of housing debt to disposable income, 103.2% is held by owner occupiers with the remaining 33.2% held by investors.</p>
<p>At the end of June 2017 the ratio of household assets to disposable income was recorded at 935.6% and the ratio of housing assets to disposable income was 516.5%, both of which were record highs. Over the past year household assets and housing assets have increased by 6.6% and 7.8% respectively, well in excess of the increase in household and housing debt.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher1.png" target="_blank">Click to enlarge</a></p>
<p> <img src="https://www.urban.com.au/images/2017/10/05/Kusher1.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher2.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher2.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher3.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher3.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher4.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher4.png" alt=""></p>
<p>By comparing the ratios of assets and debt the RBA also produces ratios of household and housing debt to assets. Mr Kusher said, “The data reiterates that although debt levels are high, at this stage debt is well supported by assets which are valued substantially higher.”</p>
<p>Over recent years the ratios of household and housing debt to assets has actually been falling. In June 2017, the ratio of household debt to assets was recorded at 20.7% and the ratio of housing debt to assets sat at 26.4%.</p>
<p>According to Kusher, a big contributor to the declining ratio of debt to assets over recent years has been the ongoing fall in interest rates to their current lows. At the end of June 2017 the ratio of household interest repayments to disposable income was 8.7% and for housing it was 7.1%. Lower interest rates also mean that where there is a debt, debtors have the ability (if they choose) to maintain previous repayments which in turn means additional debt is repaid as interest rates fall.</p>
<p>He said, “The latest household finance data from the RBA highlights that Australian households are heavily indebted, largely due to housing. While debt levels are high, the value of household and housing assets are, at this stage, considerably greater than the level of debt.”</p>
<p>“Of course, if household and housing asset values begin to fall in the future, the accompanying debt may not fall at the same rate and that remains the main concern with the ongoing increase in household and housing debt.</p>
<p>“Although Australia survived the financial crisis with much less damage than many other countries, of note was the fairly sharp rise in the ratio of household and housing debts to assets over that period. A more sustained downturn could potentially see a much greater increase in these ratios as asset values fall but the debt against these assets remain,” Mr Kusher said. </p>
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Household debt growing slower than asset wealth as both hit record highs

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<p>Building activity data for the June 2017 quarter was published by the Australian Bureau of Statistics earlier this week. The data contains additional insight to the housing construction sector, tracking quarterly dwelling commencements, completions and counts of dwellings under construction. The data is showing a softening in commencements as approvals have slowed but still heightened levels of completions and dwellings under construction. </p>
<h3>Dwelling commencements</h3>
<p>Over the June 2017 quarter, seasonally adjusted data showed that 28,087 new houses and 24,380 new units commenced construction nationally.  The number of houses commenced was 3.3% higher over the quarter but -7.1% lower than a year earlier while unit commencements were down -0.8% over the quarter and -6.6% lower over the year.  <br> <br>Year-on-year new house commencements were lower in each state and territory, recorded at: -3.5% in NSW, -7.2% in Vic, -3.1% in Qld, -10.6% in SA, -12.2% in WA, -7.0% in Tas, -29.1% in NT and -37.9% in ACT.<br> <br>Year-on-year new unit commencements were higher in NSW (3.3%), Vic (3.2%), SA (35.0%) and Tas (153.1%) and they were lower in Qld (-30.4%), WA (-40.5%), NT (-40.9%) and ACT (-17.7%).</p>
<p>Commencements for houses picked up over the quarter but are lower across all regions over the year.  Meanwhile unit commencements are trending lower in most states and territories with notable exception of NSW, Vic and Tas.  NSW and Vic have been home to the two strongest housing markets over recent years (Sydney and Melbourne) and are seeing the largest increases in population fuelling housing demand.  Meanwhile, dwelling values in Tasmania’s largest city (Hobart) are rising at the fastest rate of any capital city while stock levels are very low so it seems a supply response is occurring.</p>
<h3>Dwelling completions</h3>
<p>Seasonally adjusted data nationally shows that over the June quarter there were 28,251 houses and 25,090 units completed nationally.  Interestingly these figures are fairly closely aligned to commencements so what was completed was effectively replaced as having started construction.  Over the quarter, new house completions were down -1.2% and new unit completions were -10.2% lower.  Year-on-year new house completions were -9.0% lower and new unit completions were down -5.2%.<br> <br>State and territory data which isn’t seasonally adjusted shows that year-on-year, new house completions rose in NSW (8.6%), Qld (18.3%) and ACT (73.3%) while completions were lower in Vic (-12.8%), SA (-3.7%), WA (-45.3%), Tas (-29.8%) and NT (-44.2%).<br> <br>New unit completions increased over the year in Vic (11.1%), Qld (13.7%) and ACT (29.6%) and were lower in NSW (-20.4%), SA (-41.6%), WA (-22.3%), Tas (-40.0%) and NT (-69.9%)</p>
<p>Completions remain at high levels however, they have eased back a little.  Given that there remains a high volume of stock under construction (as we will analyse shortly) it’s anticipated that completions are likely to remain elevated for some time.</p>
<h3>Dwellings under construction</h3>
<p>At the end of the June 2017 quarter, there were 216,242 dwellings under construction nationally.  Although the number of dwellings under construction is down from its historic high of 224,314 in September 2016, it is still at an extremely elevated level.  As a comparison, the long-term average number of dwellings under construction at the end of a quarter is 106,774 and even over the past 10 years the average has been recorded at 153,545.  In June 2017, there were 62,409 new houses and 151,510 new units under construction nationally.  Again, both are well above the long-run averages of 48,329 and 38,964 respectively.<br> <br>Looking at the data across the states, at the end of the quarter the number of new houses under construction was recorded at: 17,845 in NSW, 21,401 in Vic, 8,605 in Qld, 4,726 in SA, 7,669 in WA, 1,227 in Tas, 276 in NT and 660 in ACT.  By comparison, the long-term average number of houses under construction across the states is recorded at: 13,566 in NSW, 15,186 in Vic, 7,250 in Qld, 3,681 in SA, 7,455 in WA, 1,548 in Tas, 544 in NT and 938 in ACT.  All states and territories except for Tas, NT and ACT currently have more new houses under construction than the long-term average.<br> <br>The number of new units under construction is where there is generally a substantial deviation from the long-term average.  Across the states, at the end of the June 2017 quarter the number of new units under construction was recorded at: 64,470 in NSW, 43,240 in Vic, 27,420 in Qld, 4,230 in SA, 6,360 in WA, 391 in Tas, 495 in NT and 4,904 in ACT.  Tas is the only state or territory with fewer new units currently under construction than its long-term average which is recorded at 431.  Across the remaining states, the long term average number of new units under construction is: 17,162 in NSW, 10,854 in Vic, 7,897 in Qld, 1,955 in SA, 3,382 in WA, 445 in NT and 1,235 in ACT.  The current number of new units under construction in NSW (+276%), Vic (+298%), Qld (+247%), SA (+116%) and ACT (+297%) is well in excess of double the long-term average.</p>
<p>The volume of new housing stock under construction remains at dizzying heights, albeit not quite as high as a few quarters ago.  The surge in stock under construction is being driven by units which by nature take longer to build and deliver more stock in a single project than houses. Interestingly, the number of units under construction has slowed in Vic and Qld but continues to climb in NSW.  This is probably to do with the fact that many property purchasers in NSW can simply no longer afford houses (particularly in Sydney) so units become their only housing purchase option. </p>
<h3>Conclusion</h3>
<p>Although dwelling approvals have eased from their record high levels, over recent months they have been fairly steady.  They seem to have settled at a level which is well above long-term average levels.  While this means that commencements won’t be as strong going forward they are likely to remain high relative to historic levels.  There is a significant number of new dwellings (particularly units) under construction which means that completions are likely to remain elevated for some time. Once they do fall we would expect them to stabilise at a level well above the long-term average.  With the national population increasing rapidly, these people need to be housed so although housing construction is unlikely to remain as strong as it has been recently, we do expect that a substantial volume of housing construction is likely to continue to take place.</p>
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Pipeline of housing stock has peaked but pending supply remains well above long term average levels

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<p>Despite a surging population and record high levels of new construction, a lower proportion of housing stock is selling. </p>
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<p>The analysis, paired annual settled sales data with dwelling counts over time to show that the proportion of total housing stock turnover on an annual basis. </p>
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<p>The analysis found that over the 12 months to September 2017, just 5% of the national housing stock transacted; the lowest proportion of stock-turnover since April 2012 when it was at an historic low of 4.9% of stock transacted. Over the nine years of data available, an average of 5.5% of the national housing stock transacts in a given year.</p>
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<p>Across the combined capital cities, a record-low of 4.7 percent housing stock transacted over the past year which was well down on the 5.6% average. Across the combined regional markets, 5.6% of housing stock transacted which was slightly higher than the 5.5% average. In both the capital city and regional housing markets stock turn-over is slowing. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/26/Total.jpg" alt=""></p>
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<p>Housing turnover is impacted by supply and demand factors. From the demand side of things the contributors are the rate of population growth, growth in household incomes, levels of investor demand and accessibility to credit. </p>
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<p>From the supply side the factors include the level of new housing construction and how much stock is actually available for sale at any given time. Other factors include the costs associated with buying and selling properties as well as government policies such as incentives for first home buyers.” </p>
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<p>Across the states and territories, the trends are interesting: </p>
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<p>NSW: In Sydney an historic low 4.7% of housing stock transacted over the past year and in regional NSW the figure was 5.9%. In each region turnover has slowed. </p>
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<p>Vic: Historic low 4.4% of Melbourne housing stock turned-over throughout the past year compared to 4.9% of regional Vic stock. Both of the regions are seeing a fall in turnover.</p>
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<p>Qld: Stock turnover is well above record lows in Brisbane (5.8%) and regional Qld (5.8%). Brisbane turnover is only slightly below average (5.9%) while regional Qld turnover is at average levels. </p>
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<p>SA: Turnover is fairly steady in SA recorded at 5.7% in Adelaide and 5.8% in regional SA. In each region turnover is slightly above long- term average levels. </p>
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<p>WA: After a large fall over recent years, turnover has stabilised at a record low in Perth (3.6%) and has increased slightly from record lows in regional WA (4.2%). </p>
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<p>Tas: In Hobart, 5.9% of housing stock sold last year compared to a long-term average of 5.4% annually and in regional Tas 6.1% of stock sold compared to a long-term average of 5.3% </p>
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<p>NT: 4.2% of housing stock transacted over the past year in Darwin and 4.7% of stock in regional NT. There has been a significant fall in turnover across the state as dwelling values have fallen.</p>
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<p>Canberra: Over the past year, 4.8% of housing stock sold which is an historic low level. </p>
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<p>The figures are stark given just how little of the Australian housing market actually sells in any given year.</p>
<p>A big driver of the low level of turnover over the past year has been relatively low levels of stock for sale, particularly in our largest capital cities and the high costs associated with stamp duty when buying a property.</p>
<p>The impost of stamp duty discourages turnover as we have recently seen with the removal of stamp duty for first time buyers under certain price thresholds in NSW and Vic.</p>
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<p>Once removed there has been a surge in housing finance commitments by first home buyers.</p>
<p>The final consideration for the low turnover is the high cost of housing in Australia, because the cost is high it is a significant consideration for households as to whether or not to purchase a property. </p>
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Dwelling construction surges yet housing turnover falls

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<div>There's quite a bit been said on the apparent mass exodus from Sydney.</div>
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<div>Again, there's a strong element truth to this story.</div>
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<div>But it's equally important not to take away the wrong visual image from this. </div>
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<div>The fact is, New South Wales always loses people interstate, and it always will, largely to Brisbane, south east Queensland, and even to Melbourne.</div>
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<div>In reality, though, the numbers leaving the state on a net basis were dramatically lower in the 2011-2016 Census period than they were in the preceding five years.<br><br>And they were much, much lower than they were in the five years before that, with net interstate migration tracking at way under the half the rate of seen from 2001 to 2006.</div>
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<strong><span style="text-decoration: underline;">To the regions...</span></strong><br><br>Now it's true that more people, especially Baby Boomers, have been taking their newly-boosted Sydney equity to move out to regional New South Wales, such as to the Hunter Valley, or to the South Coast.</div>
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<div>However, this has been offset by a marked <a href="https://petewargent.blogspot.co.uk/2017/09/population-growth" target="_blank">increase in immigration to Sydney</a>, as migrants seek employment opportunities.<br><br>The harbour city of Greater Sydney is growing at a faster pace than previously, probably now at somewhere close to 100,000 per annum, which is well ahead of the decade average.</div>
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<div>This will presumably continue for as long as Sydney continues to create <a href="https://petewargent.blogspot.co.uk/2017/09/jobs-boom-to-continue" target="_blank">record job openings</a>. </div>
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<div>The net impact of this dynamic - high immigration and resident Sydneysiders moving outwards or interstate - is that Sydney has a substantial foreign-born population (which now comprises more Chinese-born residents than British-born, a remarkable statistic in its own right).<br><br>There's plenty of disingenuous 'analysis' of the capital city economies, focusing on resources exports and ignoring services exports, for example, while also ignoring Australia's record levels of household wealth and the comparative improvement in standard of living for so many immigrants.<br><br>The Productivity Commission ("PC") has delivered another long report on the importance of the large cities to Australian wealth, and why services industries and employment growth fare best within them, in part due to proximity to other businesses and labour supply.<br><br>The fact is that over the most recent year Sydney (38.6 per cent) and Melbourne (28.4 per cent) have unsurprisingly dominated contributions to Australia's GDP growth, according to analysis by Terry Rawnsley of SGS Economics &amp; Planning.<br><br><strong><span style="text-decoration: underline;">Challenges abound</span></strong>
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<div>All of the above having been said, it's reasonable expect to see interstate migration to south east Queensland accelerating again over the next five years.<br><br>One of the most noteworthy challenges identified by the PC is that about 60 per cent of new jobs are created within 10 kilometres of the Central Business Districts, but housing supply in those locations is not keeping up with this pace of growth by about half.<br><br>The PC found that most jobs that can be reached within 45 minutes by car are located in the inner city, while on the city fringe this is the case for fewer that 20 per cent of jobs.</div>
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<div>By 2050 an additional 10.8 million people are projected to be living in Australia's capital cities, as well as an extra 2.4 million people in the non-capital city areas. </div>
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The population exodus from Sydney: Pete Wargent

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<p>Canberra has recently joined the biggest cities with strong price growth, if you can believe the numbers.</p>
<p>As is the case with all our capital cities, the level of growth in Canberra house prices depends on which research source you favour.</p>
<p>The latest figure from the Australian Bureau of Statistics records annual growth of 6.6 percent, while the Real Estate Institute of Australia says 5.1 percent. But Domain, SQM Research and CoreLogic, using their various mysterious methodologies, all have Canberra house prices (on average) rising by more than 10 percent in the past 12 months.</p>
<p>The uplift in price growth in the national capital is quite recent. Unlike Sydney three hours up the highway, Canberra has not been pumping for the past 3-4 years. It went through a period of malaise when the Federal Government downsized the public service and the market was also impacted by an oversupply of apartments.</p>
<p>Canberra has got those negative symptoms out of its system and appears to be growing again. Certainly that aligns with my analysis of sales activity, which have been elevated in the past two years.</p>
<p>But what really stands out for me is the uplift in activity and prices in New South Wales locations close to Canberra.</p>
<p>The proximity of Queanbeyan (now part of the newly-formed Queanbeyan-Palerang Regional Council area) to the nation’s capital is certainly helping local property markets.</p>
<p>The region has strong population growth, unemployment is low and new housing estates are under construction – helped by Queanbeyan’s affordability relative to Canberra, with median prices for both houses and units generally below those in the national capital.</p>
<p>Canberra prices are kept artificially high by the tight control of land releases and general dwelling supply by the ACT Government. But Queanbeyan, while closer to central Canberra than many ACT suburbs, is in NSW and has cheaper prices. Many of its suburbs have median house prices in the $400,000s while Queanbeyan, Queanbeyan East and Crestwood all have median unit prices in the $200,000s – something that’s difficult to find within the ACT.</p>
<p>Property sales activity in Queanbeyan increased in 2015 and 2016, leading it to become a standout region for growth, as identified in the Autumn edition of the Price Predictor Index published by Hotspotting.</p>
<p>Good rental yields are another attraction, with several suburbs having median yields around 5 percent for houses and 6 percent for units.</p>
<p>Goulburn, about 80km from Canberra, also benefits from being close to the national capital and having much cheaper house prices. It’s a growth market, partly because of local events, partly its proximity to Canberra and partly a Ripple Effect from Sydney’s growth market.</p>
<p>Sales activity has been rising steadily in the past 18 months and this has generated solid growth in Goulburn’s median house price (up 7% to about $350,000 in the past 12 months).</p>
<p>Goulburn (the LGA’s population is around 30,000) has long been a solid regional centre servicing the Southern Tablelands area of NSW near the ACT border.</p>
<p>Long-term, it will benefit from its location in the growth corridor linking Canberra with Sydney – with growing numbers living in affordable Goulburn and working in Canberra.</p>
<p>It would also be a key beneficiary of plans for high-speed rail links between Canberra and Sydney, if that grand plan ever happens.</p>
<p>Goulburn has more diversity to its economy than your standard regional centre, with a big wind farm industry, the presence of the NSW Police College and also the Goulburn Correctional Centre.</p>
<p>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a></p>
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