Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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GUEST OBSERVATION
The first comprehensive review of Australia’s competition laws and policies in more than 20 years is underway and has encouraged the retail sector to consider extended opening hours. Late last year we saw Western Australia’s first 24 hour store open in the small south-west town of Eaton, causing landlords, tenants and consumers to question if this will be a catalyst for change to come. 
Trading hours are treated differently across the country, with varying restrictions applied to different zones such as metropolitan and tourist areas. To continue with Western Australia as the example, retail trade exemptions in the Shire of Dardanup allow stores to trade 24 hours, seven days a week, unlike the neighbouring city of Bunbury where hours remain restricted.
Extended opening hours during the Christmas period are a common sight, however we need to question if this type of trading a realistic throughout the year and consider how these potential changes could impact both landlords and tenants.
What could it mean for landlords?
There are a number of factors worth considering when looking at extending opening hours.
Firstly, landlords will need to familiarise themselves with the legislation relevant to their state and zone and know what they can and cannot enforce. Tenants cannot be forced to trade for longer hours against their will unless the lease states so.
If landlords decide to enforce longer opening hours, it’ll need to be written into new leases and expressed in person with tenants.
Consider whether extended opening hours will create more foot traffic and be welcomed by the existing tenants’ customer base.
There might be a select number of stores for whom it’s worthwhile staying open into the night.
In this case, landlords may need to design a new layout of the centre to enable sectioning off of particular areas. 
What could this mean for tenants?
Tenants should consider if customer base would support extended opening hours to determine if it would have a positive impact on their bottom line. 
Department stores and supermarkets which run power 24/7 (lighting and refrigeration etc.) will not see a drastic increase in overhead costs compared to a store whose primary focus is perishable goods such as a bakery; usage of their machinery and skilled staff would double to ensure products are sold fresh. 
Don’t be fooled into assuming longer trading hours will increase the stores profitability. While it may be more convenient for some customers to shop outside of normal opening hours, it doesn’t necessarily mean they will spend more. In fact, it may mean there is a redistribution of this income among a greater number of retailers all trading later trying to catch it.
Be aware that in the medium to long term (after extended trading hours have been introduced) landlords may ask tenants to move within the centre to accommodate sectioning off for stores remaining open for longer.
When considering extended opening hours, balance the costs associated with longer hours (overheads and staffing) vs. consumer demand to help influence your decision. Perhaps consider extending the hours one day a week to gauge consumer demand. 
Gerry Gerrard is general manager of property at <a href="https://www.bakersdelight.com.au" target="_blank">Bakers Delight</a>. 
Bakers Delight has more than 700 bakeries, employing more than 15,000 people and serving 2 million regular customers per week throughout Australia, New Zealand, and Canada.
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How extended opening hours will affect retail property landlords and tenants: Gerry Gerrard

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Foreigners approved to buy established residential properties will have to pay extra when they purchase through the Foreign Investment Review Board (FIRB) under laws proposed by the federal government.
A $5,000 fee will be payable on FIRB approved properties valued under $1 million, while a $10,000 application fee will apply at over $1 million. It will be $20,000 above $2 million, then rising incrementally.
Fines of up to 25% of the value of the property will be made for non-compliance as part of the Abbott government's new regime.
There will be a four week community consultation to consider the proposals by the <a href="https://www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/Strengthening-Australias-foreign-investment-framework" target="_blank">Australian Treasury</a>.
There are big changes which will affect the off the plan market, though no plan to put a buyer fee for off-the-plan.
Property developers seeking an advanced off-the-plan certificate will instead be levied an application fee based on the number of dwellings sold to foreign investors, based on the $5,000 under $1 million fee, and then the rising scale. 
Currently, property developers can apply for an advanced off-the-plan certificate to sell new apartments in a development of 100 or more to foreign investors (the investor does not then need to obtain separate approval). 
These certificates are granted on the condition that the apartments are marketed in Australia, as well as overseas, to ensure that domestic buyers have the same opportunity to purchase the apartments. However, there are currently no penalties for breaching this condition.
The House Economics Committee report recommended a tightening of the rules around advanced off-the-plan certificates to ensure developers comply with their obligations to market properties to domestic buyers.
Recognising these concerns, the Government proposes to strengthen enforcement options by subjecting developers to civil and criminal penalties under the Act.
In addition, the Government is proposing to tighten the rules around the use of advanced off-the-plan certificates by limiting the value of all apartments that can be bought by a single foreign investor to $3 million in any single development. 
If foreign investors want to purchase apartments above this value, they would have to seek individual approval. This would reduce the scope for any criminal behaviour (such as money laundering) by ensuring that high wealth investors are subject to the upfront screening process. 
Many of the proposals go further than those recommended by Kelly O'Dwyer's Parliamentary committee, but Prime Minster Tony Abbott said it will mean that foreigners who aren't playing by the rules won't be in the system.
"There are millions of Australians who want to realise the dream of owning their own home," said Abbott.
"Obviously we want the dream to continue."
Abbott said the fee structure was comparable with a system in New Zealand, through less punitive than regimes in Singapore and Hong Kong.
The fees would raise $200 million a year which would fund FIRB scrutiny and the establishment of a register of foreign home owners.
Non-resident foreign persons are generally prohibited from purchasing established dwellings in Australia.
However, reflecting the fact that foreign persons who are temporary residents need a place to live during their time in Australia, temporary residents can apply to purchase one established dwelling to use as a residence while they live in Australia. 
The purchase of an established dwelling is conditional on the foreign person selling the property when they leave Australia.
Temporary residents cannot acquire established dwellings for investment (rental) or holiday purposes.
Under the Act, it is a requirement that each proposed acquisition of real estate be individually notified and reviewed, unless specifically exempted.
However, property developers (Australian or foreign) can apply for an advanced off the plan certificate to sell all new dwellings in a development of 100 or more dwellings to foreign persons, provided the development is marketed locally as well as overseas.
Foreign persons purchasing dwellings in a certified development do not require separate approval. 
But the government seeks feedback on proposed changes to advanced off the plan certificates, including:
<ul>
<li>Should penalties be introduced for developers that fail to comply with obligations to market domestically?</li>
<li>If so, what should developers be required to do to prove they have marketed domestically?</li>
<li>What level of penalty would be appropriate for developers that fail to comply with obligations to market domestically?</li>
<li>Are there alternative approaches that should be considered </li>
</ul>
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$10,000 FIRB fee to buy $1 million plus home: Tony Abbott policy unveiled

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All the advertising around low home loan interest rates was stimulating activity, the outgoing head of Mortgage Choice Michael Russell told an investor briefing.
But rates will get to a point where it will not be material enough to bring forward future buying demand, he suggested.
"We have to be getting close to that point now," he added, though not for refinancing loans.
Mortgage Choice Limited today announced its financial results for the six months ending 31 December 2014. 
The company's net profit after tax was $10 million, up 3.3% annually. Total group revenue was $97 million, up 11% on 1H14 with its total loan book reaching $48.4 billion. 
"This was up 4.5% from $46.4 billion at 31 December 2013 and is poised to hit $50 billion by 1H16," Russell advised.
"We are about to smash through the $50 billion milestone," he told the investor briefing. He said the biggest lending boost within their boost had been derived from CUA lending given their sharp lending rates.
Some $6.9 billion worth of housing loan approvals were written in the six months to 31 December 2014, up from $6.2 billion in 1H14. 
It's annual share of new home loans remained at 3.9%, although strong growth was achieved especially on Queensand's Gold Coast were it held a 10% plus market share.
Micheal Russell said the group had adopted a "steely focus" to boost its lending book.
"Victoria was starting to hit its straps," he said in what was the mortgage broker chief executive's swan song half year results.
Mortgage Choice has previously announced the appointment of John Flavell as its chief executive officer, set to join the company in April 2015.
Michael Russell will work alongside Flavell in a transition phase and then depart the business at the end of the 2014/15 financial year.
Russell joined Mortgage Choice as CEO in 2009, developing two three-year plans to expand the company.
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Low interest rates almost at tipping point: Mortgage Choice

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There's a little-known government reverse mortgage scheme, the pension loan scheme (PLS), which will necessarily become part of Minister for Social Services Scott Morrison's solution to the pension assets test conundrum.
Most people may not be aware that the scheme exists and although the PLS is listed <a href="https://www.humanservices.gov.au/customer/services/centrelink/pension-loans-scheme" target="_blank">on the Centrelink website</a>, it does not appear prominently. 
My barber told me about it. 
The issue has arisen given the proposal that family homes should be included in the assets test, raised last year in the Abbott government’s National Commission of Audit and <a href="/expert-insights/investing/scott-morrison-re-considering-family-home-inclusion-in-pension-assets-test">a hot topic last wee</a>k. 
Morrison suggested he would be addressing the rules that deter the elderly from selling the family home and then downsizing to a smaller, cheaper properties, while allowing pensioners to retain some cash without reducing their entitlements.
However the government scheme is currently only available to better-off retirees exchanging equity in their homes for a loan that is repaid from the proceeds when the home is eventually sold, the interest on the loan being capitalised.
The Centrelink and Department of Veterans' Affairs scheme is restricted to those on a part age pension, who own their own home or investment property.
The loan has to be taken as an income stream and is limited to that which, when added to the part-pension, takes them to the maximum pension.
The interest rate is 5.25% and fixed, which is much lower than the variable interest rates charged by reverse mortgage providers in the wider marketplace.
But oddly retirees who are poor enough to be on the full age pension and who own their own homes are currently unable to boost their income through the government scheme.
Self-funded retirees who own property can access the scheme if they are ineligible for the age pension under either the income test or the assets test, but if they are ineligible for the age pension under both tests, they cannot access the scheme.
The Australia Institute says the scheme<a href="https://www.tai.org.au/content/can-you-eat-family-home" target="_blank"></a> is available to retirees who need it the least and says the scheme should be made available to everyone of pension age.
"This may seem consistent with the broad goals of means testing," the institute suggested in the 2014 report, <a href="https://www.tai.org.au/content/boosting-retirement-incomes-easy-way-0" target="_blank">Boosting retirement incomes the easy way - Extending the Pension Loan Scheme to all retirees</a>.
"Those with both high income and high value assessable assets cannot use the PLS.
"But it also has consequences that seem perverse. A retiree with income just under the threshold and very high value assets can use the PLS, as can a retiree with very high income but assessable assets just under the threshold.
"But a single retiree with just over $202,000 in assessable assets and just over $160 private income a fortnight cannot access the scheme, as their pension is reduced under both tests."  
On the Australia Institute's numbers complied by researchers, Richard Denniss and Tom Swann, the scheme could be expanded without significant cost to the budget. 
"A simple modification to the PLS that would, in making it fairer, significantly help to boost the retirement incomes of a large number of current retirees," the report said. 
The Australian government will spend around $36 billion in 2014-15 on tax concessions for superannuation, the stated purpose of which is to increase retirement incomes.
The PLS has been in place in some form since at least 1986, and the interest rate has since been adjusted.
The researchers noted it was unlikely that governments and policymakers would have let a costly but regressively targeted loans scheme remain in place without it attracting attention – especially given current concern about budget deficits.
They then noted that the PLS is not mentioned in the 2012-13 Department of Human Services Annual Report and the Australian Instutute could not find mentions in previous annual reports.
Nonetheless, it is likely the scheme is run at a low cost to the government and could be expanded on a cost-neutral basis, it is suggested.
Indeed, given current concerns about the budget deficit now and down the track, the Abbott Hockey government could readily reform the scheme so that it actually generates revenue.
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Scott Morrison's budget solution rests with revised pension home loan scheme

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GUEST OBSERVATION
With Sydney’s clearance rate hitting 87% on the weekend and a modest three bedroom weatherboard homes selling for $1.36 million, (some 40 minutes commute from the CBD), concerns over the role of speculative investment continue.
The ‘golden ticket’ to fast track residential status, the Significant Investment Visa (SIV), has seen <a href="https://news.domain.com.au/domain/real-estate-news/significant-investor-visa-approvals-increase-fivefold-in-a-year-20150220-13kkzr" target="_blank">a five-fold increase in applications</a> over the last year. This program has attracted$3.2 billion in investments. Direct investments in real estate are not recognised as a qualifying factor.
The federal government has expanded such incentives with the Premium Investment Visa, developed for those willing to make a $15 million investment in non-real estate related investments. We commend the government for recognising further investment in real estate undermines the competitiveness delivered by lower land prices.
However the carefully worded statement by Minister Robb <a href="https://trademinister.gov.au/releases/Pages/2014/ar_mr_141017.aspx" target="_blank">announcing the Premium Investment Visas said</a>:
"Minister for Trade and Investment Andrew Robb said that direct investment in residential real estate would not be a complying investment under the government’s proposed new Premium Investor Visa (PIV)."
Repeat – ‘no direct investment in real estate’. This implies real estate investment trusts (REITs) and other managed investments into real estate are allowed, encouraging both the further centralisation of economic power and additional investments in land. Those in the finance and real estate sectors will be delighted.
The chair of the parliamentary inquiry into foreign investment, Kelly O’Dwyer, said <a href="https://www.kellyodwyer.com.au/housing-supply-affordability-and-investment-address-to-the-committee-for-economic-development-of-australia/" target="_blank">in a speech last week:</a>
"Non resident foreign investors, while they can purchase new dwellings cannot generally purchase existing dwellings.
"Applications to purchase new dwellings are therefore generally granted, while applications to purchase existing homes are only granted if the purchaser is a temporary resident.
"So who is a temporary resident and what are the rules? Temporary residents in Australia, that is those people who have a visa to reside in Australia for over 12 months, are allowed to purchase an existing dwelling as a home but they must divest that home within three months of leaving the country at the expiry of their visa...
"The Committee found that there were loopholes in the current framework – that far from penalising individuals who made illegal purchases, in some instances it rewarded them.
"Let me give you an example. If a non-resident foreign person purchased an existing home this would be contrary to the rules. Just as it would be if that non-resident foreign person purchased multiple existing homes.
"Under the current regime, if FIRB found out and successfully divested that person of those properties – and those properties had appreciated in value from the time of purchase to the time of sale, that non-resident foreign investor would get to keep the windfall gain.
"Clearly this loophole needs to be closed."
Finally a recognition of windfall gains! If the naturally rising value of land is not fit for unlicensed foreign investors, does that mean in time the public will question all windfalls as <a href="https://www.prosper.org.au/georgist-glossary#Unearned%20Income" target="_blank">Unearned Income</a>? If the community creates that value through their development, their existence, shouldn’t they too benefit? O’Dwyer continues:
"All foreign investors in residential real estate must apply for approval from the FIRB prior to purchase.
"According to the most recent FIRB statistics, last financial year, FIRB approved foreign investment into residential property of around $34 billion, double the $17 billion approved during 2012-13.
"Much of this investment is concentrated in the Melbourne and Sydney markets. Approximately 80% of total investment is attributable to new property, which at over $27 billion 2013-14 is 170% higher than 2012-13.
"The total number of established property approvals for 2013-14 is nearly 8,000 as compared to just over 5,000 for 2012-13."
The 8,000 approved foreign investments averaged $3,375,000 – with totals up 170%!
We fear the foreign investment ‘tightening’ further elaborated on in O’Dwyer’s speech will do little to stem the tide of international capital.The capital gain on a $3,375,000 investment at the national average of 6.8% for the last year equated to $229,500 (<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0" target="_blank">ABS 8 Capital Cities</a>). A $1,500 application fee for purchases limited to new stock only, alongside the rigmarole of applying via the Foreign Investment Review Board, will do little when such large amounts are being invested on average.
If the windfall gains for an illegal foreign investor are to be forfeited to the government, then why not all such capital gains? The conflict between sovereignty and savvy investment is mounting in the eyes of <a href="https://www.prosper.org.au/2015/02/19/the-rotting-fruits-of-a-100-year-old-trend/" target="_blank">the speculative onslaught</a>. Foreign investment is a direct challenge to the control of national resources.
Singapore has taken <a href="https://www.smh.com.au/business/a-highendproperty-collapse-in-singapore-20150219-13jkf5#ixzz3ScPhbzcR" target="_blank">a more direct approach</a>.
As progressive as that is, refinement is needed. A <a href="https://www.prosper.org.au/2012/10/02/council-rating-subsidies/" target="_blank">property tax penalises improvements</a> – install solar or renovate and you are penalised under this perverted system. This is not productive. The tax should focus on land values. Rising locational land values are the trigger for property price increases, so that is where the focus need be. The <a href="https://www.iras.gov.sg/irasHome/page04.aspx?id=2094" target="_blank">Singaporean property tax does the opposite, by not including any land value</a>. This will encourage run down properties (accompanied by generous depreciation allowances no doubt).
It must be noted Singapore has also imposed additional measures limiting debts to income ratios.
Despite the property tax shortfalls, Singaporean property prices fell 4% last year, with further falls to come. After a close election with foreign investment a major election issue, we hope the political elite can hold their nerve in the face of the predictable vested interests backlash. Perhaps the recent five year extension of <a href="https://www.bloomberg.com/news/articles/2015-02-23/singapore-to-extend-tax-breaks-for-property-trusts-by-five-years" target="_blank">the tax amnesty on REIT foreign earnings</a> is a payback for such reform.
For Australia, the much vaunted housing supply mantra is being undermined by foreign investment in new homes. New re-zonings are being snapped up off the plan as a safehaven to park money. The mobility of capital is set to increase alongside technology, ensuring the commodification of housing escalates as the global housing marketplace matures. Housing supply alone cannot keep up with international demand for a commodity returning (barely taxed) huge capital gains.
<a href="https://www.prosper.org.au/wp-content/uploads/2014/11/Speculative_Vacancies-2014_final.pdf" target="_blank">Our recent report</a> highlights the underutilised nature of many prime locations. It is important this measure expands to other cities to help the public understand just how extensive speculative holdings of housing are becoming. Then perhaps a more vocal political opposition will develop.
Until the unearned incomes in real estate are more highly taxed, the pressures on those trying to find a place to live will continue to grow.
Karl Fiztgerald is project director of <a href="https://www.prosper.org.au/" target="_blank">Prosper Australia</a>.
This article first appeared on Prosper's website.
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KarlFitzgerald-5HzVbxHhJb

Foreign investment is a direct challenge to the control of national resources: Karl Fitzgerald

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GUEST OBSERVATION
A key objective of Plan Melbourne is to create a city of 20 minute neighbourhoods, suggesting that 20 minute neighbourhoods are healthy communities, where “housing is within walking, cycling or public transport distance of employment, education, social, cultural, recreational and health facilities, and where people have access to open space and places where they can gather.”
The idea is that the provision of these services will encourage a 'walkable neighbourhood', from which in turn flow the health benefits of a more active lifestyle.
We are all about using hard data to support business decisions, so we have decided to test out whether proximity to transport and services does indeed encourage walking.
The Victorian government undertakes the Victorian Integrated Survey of Travel and Activity (VISTA). The most recent survey was undertaken in 2009/10 and classifies a household as being located within 1 kilometres of a train station (approx 10 mins walk), within 3 kilometres of a train station (approx 30 mins walk), and greater than 3 kilometres of a train station.
As retail and services, as well as other public transport options, are often based around train stations, we have taken the train station as a proxy for the likely centre of a 20 minute neighbourhood.
Chart 1 (below) shows the average number of walking movements per person per day across total Metropolitan Melbourne and for Outer Melbourne regions only. In this instance we refer to a “movement” as a journey from one destination to another, or a component of a journey with more than one mode of travel.
<img src="https://www.bis.com.au/verve/_resources/Walkable_Melbourne_Chart_1.png" alt="">
For total metropolitan Melbourne, those within 1 kilometres of a train station had a much greater propensity to choose to walk, with an average 1.3 walking movements a day undertaken across the whole population. The average dropped to 0.9 movements per day for those living 1 to 3 kilometres from a train station, or around 10 minutes to half an hour walk, and 0.57 movements per day for those living further than 3 kilometres from a train station.
In contrast, the propensity to be walking for those living in outer Melbourne was stable, and lower, at around 0.4 to 0.5 walking movements per day regardless of distance from a rail station.  
Similarly, the amount of walking is greater for those closer to a train station (and consequently the services surrounding most train stations). Across total Metropolitan Melbourne, walking movements of those within 1 kilometres of a train station averaged 1.2 kilometres per day, with the average distance walked steadily decreasing as the distance from a train station increased—thereby increasing the need for other forms of transport such as motor vehicles.
The average daily distance walked by those within 1 kilometres of a train station across total Melbourne is six times larger than for those within 1 kilometres of a train station (at 0.2 kilometres per day) in outer Melbourne, which in turn was also approximately the average distance walked across the all of outer Melbourne regardless of distance from a train station. This suggests that proximity to a train station played little part in encouraging walking in outer Melbourne. 
 <img src="https://www.bis.com.au/verve/_resources/Walkable_Melbourne_Chart_2.png" alt="">
Given most activity centres around a train station in outer Melbourne contain a similar array of services as much of the rest of Melbourne, other factors must be at play that make a neighbourhood conducive to walking. In this regard, outer suburban train stations are more likely to be surrounded by a large amount of car parking and lower density housing, while many activity centres in outer Melbourne also contain freestanding shopping centres that are inwardly focussed and are surrounded by significant parking.
In contrast, train stations in inner and middle Melbourne suburbs typically have a greater level of housing density close by. Retail and services also face the street and passing walking traffic. This encourages interaction between transport modes, services and housing when travelling between each. The increased density in these locations also provides a catchment of sufficient size to support these services at the local level.
This suggests that a neighbourhood not only needs the services required by the surrounding community, but also good design and density that encourages walkability. The challenge for planners in creating new neighbourhoods is to ensure the design will be conducive to walking and avoid the design mistakes of previous town centre developments that discourage walkability.
But why would you want a walkable neighbourhood?
The National Physical Activity Guidelines recommend 30 minutes of moderate-intensity physical activity on most days of the week as the minimum requirement for good health. Walkable neighbourhoods go a long way to more of the population achieving this target. With a study commissioned by Medibank Private putting the cost to the economy of the population not meeting this threshold at $13.8 billion per year in 2008, everybody benefits from the improved health outcomes.
<a href="https://www.bis.com.au/key_people/name/angie_zigomanis" target="_blank">Angie Zigomanis</a> is senior manager of <a href="https://www.bis.com.au/" target="_blank" title="BIS Shrapnel" rel="nofollow">BIS Shrapnel.</a>
This article first appeared on BIS Shrapnel's blog.
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angiezigomanis-VT64gGbExQ

Encouraging walkable neighbourhoods is about more than proximity: Angie Zigomanis

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Hi Margaret,
My name is John and I am first home buyer living in Sydney's west.
I am very confused about buying property because of high rates. We are newly married young couple and We can't afford $600,000 property but we don't see any good property in our area under this price. I
I am very confused; for some time I have been considering moving to Melbourne - we can buy a new house there for $400,000.
Can you suggest something what should we do? Do you think moving to Melbourne is going to be a good move or not? Regards,
John
Hi John,
It’s understandable that you feel that prices have risen so much that you are now priced out of the market. 
I’m guessing that, in order for you to live in an area that you see as suitable in terms of its proximity to your work, family and friends, you have to pay $600,000 and so are not willing to consider starting smaller, with say a unit in an area which may require some commute.
At $600,00 plus fees and buying costs, with a 5% deposit, you would be looking at around $690 a week in repayments.
If this is out of your price range and considerably more than you are paying in rent payments, what may be needed is a change of thinking.  While the 'Great Australian Dream' is to own your own home, I feel it is time that young people have a considerable paradigm shift and begin to think differently.
For the older generation, home ownership was crucial as their parents suffered through the unsure times of the Great Depression, where no one could really afford their own homes.  To avoid the same fate, this generation bought their own homes, paid them off over 25 years and then waited for the gold watch upon retirement and lived on the aged pension.
Today we are far more informed and many understand the important need to consider more than just home ownership.  As such, many also invest, in a variety of assets, with residential property being very popular.
What I am now suggesting to you is that, rather than think of property ownership as meaning that you must buy a property in which to live, why not consider the more achievable prospect of jumping on the property ladder by becoming a landlord? 
There are many benefits to this, including:
<ul>
<li>You are free to buy property anywhere in Australia, and can access some great, affordable markets where property is still under $300,000.  These markets have great growth drivers and will appreciate over time, adding to your net worth and, in a sense, boosting your savings through equity growth; 
</li>
<li>Many of these markets have high rental yields – often over 6%, and with rates so low, the rent, plus your tax breaks, is highly likely to cover all costs and loan interest payments; 
</li>
<li>You can buy as many investment properties as you like and, as long as you do not live in them, still have access to any future government First Home Owner’s Grant (at the time of writing), and 
</li>
<li>You can rent where you want to live – and in a market like Sydney, where rental yields are relatively low, renting can often be almost half the cost of making a mortgage repayment.</li>
</ul>
There is little to criticise about this strategy, which is one which allows you to stay living where your family and work are, but still create wealth with property by buying elsewhere. 
To get started, you must learn more about how to buy well, by completing a good course (offered by someone who doesn’t have the <a href="/news/property-experts-warn-that-spruikers-out-in-force-in-hot-market">agenda to also sell property to you</a>) and read as much as you can to ensure you know how to chase down those strong yield, good growth, affordable markets!
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I get on the property ladder?

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Any Sydney property correction will be one of stagnation not a short sharp drop, the Melbourne buyer's agent Richard Wakelin has forecast.
Describing the run-up in Sydney prices as "rational", the director of Wakelin Property Advisory suggests it was "reasonable to assume they will stop pushing up prices once a point is reached where valuations can't be justified based on rental returns or mortgage servicing costs".
"Yes, we might see an overshoot and a correction, but the correction will probably be characterised by a period of stagnant prices for several quarters rather than a short sharp drop in prices," he told the Australian Financial Review noting Sydney property prices rose 29% over the two years to December 2014.
The growth in Melbourne was 14% while most other capitals saw price growth in single figures.
He notes much of the strong price growth in Sydney had been "catch-up" with prices in Sydney only up 57% since September 2003, based on ABS data, while Melbourne was up 89%.
"To some extent, we may well be seeing a return to normal circumstances where Sydney property enjoys a 20% premium over its southern counterpart due to higher incomes, a larger population and a greater scarcity of land."
But he warns any RBA policy mistake in relation to Sydney property carried greater consequences than elsewhere noting, with the media concentrated in Sydney, any downturn could be amplified in a manner that could damage confidence nationwide.
{mijopolls 93}
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Sydney's property correction will see stagnation, not short sharp drop: Richard Wakelin

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GUEST OBSERVATION
Land tax is a tax levied on the owners of land as at midnight of the relevant date of each year depending on the state in which the property is located (refer below for dates for respective states).
Land tax may apply to land regardless of whether income is earned from the land depending on the state jurisdiction applicable. Each state is responsible for the calculation and collection of land tax and it is only applied to land held in a respective state.  (The tax is not applied to cumulative holdings of land across Australia.)
Assessment Dates     
<ul>
<li>   NSW – 31 December</li>
<li>   VIC - 31 December</li>
<li>   QLD – 30 June</li>
<li>   SA - 30 June    </li>
<li>   WA - 30 June</li>
<li>   TAS - 30 June</li>
<li>   ACT - 30 June</li>
</ul>
Note: NT does not apply land tax
Land Tax Registration
It is a requirement for individuals and entities to register their interests in land with the respective State Revenue Office (OSR).  
In some states this a requirement regardless of whether the individual or entity is below any land tax threshold. For example, many self-managed superannuation (SMSF) trustees have acquired investment property during the past few years (this includes SMSFs that have acquired their own business premises).  
The acquisition of one investment property would often result in the land value of this investment being below the respective land tax threshold. Regardless the SMSF trustee may be required to register the entity’s interest in the property with the appropriate OSR. The same principle applies for all individuals and entities. 
It is not essential to derive income from a property to have it subject to land tax. A holiday home used exclusively by the family may be subject to land tax and be subject to registration.
Land Tax Thresholds and initial rate for values above threshold
<ul>
<li>  NSW: $432,000  -  $100 + 1.6% per $ (scaled)</li>
<li>  VIC: $250,000    -  $275 + 0.2% per $ (scaled)</li>
<li>  QLD: $599,999   -  $500 + 1% per $ (scaled)*</li>
<li>  SA:  $316,000    -  0.5% per $ (scaled)</li>
<li>  WA: $300,00      -  0.11% per $ (scaled)</li>
<li>  TAS: $24,99       -  $50 + 0.55% per $ (scaled)                           </li>
<li>  ACT: $1             -  0.41% per $ (scaled)</li>
</ul>
Refer to the respective state Office of State Revenue (OSR) for further information (website details set out at the end of this article).
* (individuals only)
Other state specific exceptions:
<ul>
<li>  NSW - Special trusts – zero land tax threshold</li>
<li>  NSW - Fixed property trust – individual land tax threshold</li>
<li>  VIC - Special trusts - $25,000 land tax threshold and separate scaled rates</li>
<li>  QLD - $349,999 threshold for trusts, companies and SMSFs.</li>
</ul>
NSW &amp; Victoria apply different rates and thresholds for trusts.
In NSW, trusts (with the exception of fixed property trusts (FPT) and SMSFs) do not receive a land tax threshold and are described as “special trusts”. These include: discretionary, hybrid, unit and Property Investor trusts. Land tax is applied at a rate of 1.6% from the first dollar up to the premium land tax threshold and then at 2% thereafter.
A FPT enables the unit holder(s) to utilise their individual land tax threshold in determining the land tax applicable. In some instances it is possible to have a “special trust” altered to a FPT to obtain the benefit of the land tax threshold in future years.
In Victoria, if you own land as trustee of a trust you are required to pay land tax at the surcharge rate (subject to various exclusions) if the aggregate Victorian land holdings of the trust is valued at or over $25,000. The surcharge rate is 0.375 per cent above the general land tax rate for land holdings valued between $25,000 and $1.8 million. The surcharge rate tapers away for trusts with aggregate land holdings valued between $1.8 million and $3 million and for land holdings valued at or over $3 million, the surcharge rate is the same as the general land tax rate.  Victoria does not differentiate between the type of trust other than SMSFs.
Queensland has a separate land tax threshold for non-individuals (i.e. SMSFs, trusts and companies). Land tax is assessable for land values in excess of $349,999 at $1,450 + 1.7% per dollar (scaled).
OSR Land Tax audits
Some states are undertaking land assessment audit activities.  With the enhancement of computerisation of land records State Revenue Offices are able to cross match land holdings and ownership changes.  We have experienced a considerable increase in NSW OSR audits in recent times.  Interest penalties may be applied to prior year assessments if land tax payment has not been made.
We encourage all clients to check their land holding values and the appropriate jurisdictions website to check whether they should be registered for land tax.
State Office website addresses:
<ul>
<li>NSW:  <a href="https://www.osr.nsw.gov.au/" target="_blank" title="OSR - NSW">https://www.osr.nsw.gov.au</a>
</li>
<li>VIC:    <a href="https://www.sro.vic.gov.au/" target="_blank" title="OSR - VIC">https://www.sro.vic.gov.au</a>
</li>
<li>QLD:   <a href="https://www.osr.qld.gov.au/" target="_blank" title="OSR - QLD">https://www.osr.qld.gov.au</a>
</li>
<li>SA:     <a href="https://www.revenuesa.sa.gov.au/" target="_blank" title="OSR - SA">https://www.revenuesa.sa.gov.au</a>
</li>
<li>WA:    <a href="https://www.finance.wa.gov.au/" target="_blank" title="OSR - WA">https://www.finance.wa.gov.au</a>
</li>
<li>TAS:   <a href="https://www.sro.tas.gov.au/" target="_blank" title="OSR - TAS">https://www.sro.tas.gov.au/</a>
</li>
<li>ACT:   <a href="https://www.revenue.act.gov.au/" target="_blank" title="OSR - ACT">https://www.revenue.act.gov.au</a>
</li>
</ul>
Clive Nelson is a senior partner at <a href="https://www.chan-naylor.com.au/parramatta/" target="_blank">Chan &amp; Naylor Parramatta</a>.
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What you need to know about the approaching land tax deadlines: Clive Nelson

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Westfield shopping centre operator Scentre Group chief executive Peter Allen says the group had benefited from the recent demerger.
“The establishment of Scentre Group has allowed management to focus exclusively on the opportunities in Australia and New Zealand,” he said.
Scentre Group announced results for the six months to 31 December 2014 with arising from its ownership of 47 Westfield centres, including 14 of Australia’s top 20 performing centres, and has assets under management of $40.9 billion.
At 31 December 2014, the portfolio remained more than 99.5% leased, while average specialty retail sales in Australia had increased to $10,200 per square metre.
For the 12 months to 31 December 2014, comparable property net operating income across the Australian and New Zealand portfolio increased 2.2%.
Scentre Group has an identified future development pipeline in excess of $3 billion.
This year it commenced new developments at Chatswood and North Lakes with a combined value of $190 million, with the Scentre Group share being $150 million. 
In 2014, Scentre Group completed the $410 million development at Westfield Garden City in Brisbane and the major stage opening of the $475 million (Scentre Group's share $238 million) development at Westfield Miranda in Sydney.
Scentre Group’s development activity also includes two design and construction projects that are being undertaken for AMP Capital. The $440 million development at Macquarie Centre was opened in the second half of 2014, and the Group continues to make good progress on the $670 million development at Pacific Fair that is expected to be completed in 2016.
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