Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Joel Robinson

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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?

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Discussion around Australia’s overvalued housing market, as a result of the propping up from negative gearing statistics from Moody’s, suggesting that nationally 9% is added to property prices, or some $44,000, from these tax breaks.
This isn’t something that has recently dawned on Moody’s, and in their Stress-Testing Australia’s Housing Market report from earlier this year Glenn Levine and Fred Gibson from Moody’s used the study to explore the possible impacts for each state and territory’s housing market should potential significant, plus plausible, national and international “shocks” occur.
<blockquote>
“Investors should beware of the state’s vulnerability to international shocks, especially a scenario that results in lower commodity prices such as downturn in the Chinese economy.”
</blockquote>
They note that each state performs differently in their modelling when looking at the vulnerabilities of the markets to the different possibilities.
They also note that Australia’s favourable tax regime for property investors – and in particular negative gearing – as well as stringent bankruptcy laws, lack of available development land, together lending and prudential requirement all help keep risk levels relatively low.
They used international scenarios of a global slowdown, and a global recession similar to the GFC, as well as domestic shocks such as interest rates and supply changes, to identify the sensitivities of the markets.
YOU MIGHT ALSO WANT TO READ:
<a href="/expert-insights/buying/moody-s-says-property-market-may-be-overheating-and-could-face-a-correction">Moody’s says property market may be overheating and "could face a correction"</a> <a href="/expert-insights/investing/house-prices-arguably-at-unsustainable-levels-moodys">House prices “arguably at unsustainable levels”: Moody's</a>
Here are the key takeaways from the experiment:
<ul>
<li>National rental increase average: 89% 
</li>
<li>National income increase average: 61%</li>
</ul>
KEY CHARTS
<img src="/images/2014/07/25/moodys-july-25-one.gif" alt="">
 
<img src="/images/2014/07/25/moodys-july-25-two.gif" alt="">
Victoria
<ul>
<li>“House prices are overvalued relative to Victoria’s long-run drivers and fall by more than the national average under four of the five shocks, suggesting that the market is vulnerable.” 
</li>
<li>Negative gearing offset well below national average. 
</li>
<li>Highly sensitive to rising unemployment. 
</li>
<li>Exposed to export-facing manufacturing industry. 
</li>
<li>Least supply-constrained of all the states. 
</li>
<li>Low rental return, high sensitivity to adverse demand shock. 
</li>
<li>“Victoria stands out as one of the most vulnerable of all the states.”</li>
</ul>
 
Tasmania
<ul>
<li>“Tasmania’s housing market went from highly overvalued in 2005 to close to fairly valued today, according to our long-term measure, as incomes have continued to rise and prices have flatlined.” 
</li>
<li>Moderately responsive to supply. 
</li>
<li>Data generally less robust than other states.</li>
</ul>
 
Western Australia
<ul>
<li>“Western Australia’s housing market was highly overvalued in 2005, but surging incomes linked to the mining boom, rising rents, the country’s highest negative gearing offset, and falling interest rates have pushed it into undervalued territory.” 
</li>
<li>House prices have risen 206% since 2001, and rents have increased 191%. 
</li>
<li>Under a global recession scenario, prices would be expected to fall 30%. 
</li>
<li>Sensitive to changes in global GDP and commodity prices. 
</li>
<li>“Investors should beware of the state’s vulnerability to international shocks, especially a scenario that results in lower commodity prices such as downturn in the Chinese economy.” 
</li>
<li>Sensitive to interest rate changes and the unemployment rate. 
</li>
<li>Not overly sensitive to supply changes.</li>
</ul>
Please turn over page for the other states and territories
<hr class="system-pagebreak">
Northern Territory
<ul>
<li>“House prices in the Northern Territory are close to fair value and the least vulnerable to shocks.” 
</li>
<li>Prices sensitive to commodity prices, but are otherwise uncorrelated with the global economy. 
</li>
<li>Data generally less robust than other states.</li>
</ul>
 
Australian Capital Territory
<ul>
<li>“[It] remains close to fair value and relatively insulated from international shocks.” 
</li>
<li>Little reaction to changes in commodity prices or global GDP. 
</li>
<li>Unemployment rate is less responsive.</li>
</ul>
 
South Australia
<ul>
<li>“Houses in South Australia are the most undervalued of any state relative to long-term drivers and under normalized interest rates, and are the cheapest of any state after Tasmania.” 
</li>
<li>Baseline outlook has been for modest growth. 
</li>
<li>Prices are sensitive to global GDP but less so to commodities markets, despite their growing mining sector. 
</li>
<li>Only moderately vulnerable to shocks.</li>
</ul>
 
New South Wales
<ul>
<li>“The effective tax rate in New South Wales is among the highest in the country, providing greater benefits through negative gearing, which lifts the equilibrium house price.” 
</li>
<li>Large and diversified economy. 
</li>
<li>House prices in this state are among the most sensitive to interest rates and the unemployment rate. 
</li>
<li>Also among the most sensitive to changes in housing supply, with a current chronic shortage.</li>
</ul>
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jduke-EHk3XBmHkn

Australia’s housing market vulnerabilities: State by state lessons from Moody’s

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Merrylands secured a new record price last weekend when a commanding two-storey home sold under the hammer for $1,405,000.
It was 64 Belmont St, Merrylands (pictured above) that bettered the previous record by around $130,000.
The modern home on a 714 square metre holding has five bedrooms plus office. It sold through<a href="https://www.realestate.com.au/property-house-nsw-merrylands-117315615" target="_blank"> Laing + Simmons Granville agents Ray Fayad and Anthony Shalala</a> with 10 registered bidders at the auction. It was built after the block cost $370,000 in 2002.
The opening auction offer was $1 million. 
The previous record was at <a href="https://www.realestate.com.au/property-house-nsw-merrylands-116073231" target="_blank">53 Murray Street</a> (pictured below) which sold for $1,271,000 earlier this year.
<img src="/images/2014/07/25/merrylands%20july%2025%20two.jpg" alt="">
There are 509 auctions scheduled this weekend in Sydney well up on last weekend’s 404 and 174 more than the 335 homes auctioned over the same weekend last year.
The south will host 88 followed by the city and east with 63, the inner west with 57, the upper north shore with 54 and the west with 50, according to Australian Property Monitors.
The most popular suburbs for auctions this weekend in Sydney are Blacktown in the west and Surry Hills in the city and east each with nine.
Last weekend's 404 listings will likely prove to be the low point for auction listings this winter with numbers now set to rise through to spring, APM senior economist Dr Andrew Wilson said.
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jchancellor-FAypfDUnLy

Merrylands $1.4 million record price as winter auctions soar

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Each week I receive phone calls from people who have started a property development and then fallen into trouble.  
I can't help taking these SOS calls from fellow developers but I've noticed a pattern...there seems to be three different areas in which the issues fall:
<ul>
<li><a href="/expert-insights/the-three-most-common-first-time-property-developer-mistakes-site-selection">Site selection</a></li>
<li><a href="/expert-insights/the-most-common-first-time-property-developer-mistakes-team-selection">Team selection</a></li>
<li>Not understanding the development process</li>
</ul>
The development process is complex - there is no two ways about it. Even what may seem the most simplest development can turn into a very time consuming project.  Although Property Bloom has completed over 80 developments, all of which I have personally overseen, I still find tiny nuances that make each development unique and challenging. 
However, if you have some understanding of the steps needed to be taken on your property development journey, then the development process can be simplified.
The development process can be broken down into a number of steps:
 
<ul>
<li>
Research or due diligence  Most of your research should have been done by now because choosing  the right location for your development cannot be underestimated. Once you've narrowed down the area you're going to work in, you need to research the needs of your target market.  Your target market is either the people you'll be renting to if you hold onto the dwellings you build or the people you'll be selling to. What do they want in a property? You need to balance this with what you can afford to build, always be careful not to overcapitalise by assuming you have to give everything. 
</li>
<li>
Designing your project is the next step in the process. Use either a builder's design and make some minor changes to suit your needs or use an architect or drafting service to design exactly what you want. In more upmarket areas, you may want to deliver something more unique so spending time and money on coming up with the right design is important. 
</li>
<li>
The planning process is another very important processes. Ensure you are meeting the requirements of the local council's Development Control Plan and Local Environmental Plan. This is complex and unless you want to spend days studying these enormous documents, engage a planning consultant or architect that understand these local requirements. This should save time so when you lodge your DA there should be little hold up in having to make changes to your plans. 
</li>
<li>
Engineering for storm water management, driveways and slab design is required to obtain the final approval of your Construction Certificate. Again, engage a good engineer but make sure you have a basic understanding of what they are designing.  Don't be afraid to ask questions. I was able to reduce some costs on a three villa project by questioning the number of storm water detention tanks required under the driveway. I knew each tank meant more costs so just by asking the engineer to check the water volume calculations meant  if we could cut two of the eight tanks required in that project. 
</li>
<li>
Once you have all your Planning Consents, then it's important to have a good understanding of the building process which will help you as you review your builder's contract. You need to understand terms such as 'Provisional Items' and 'Excluded items' as if one of these blows out, so can your development profit.  Check the contract and discuss with the builder so that they can explain clauses to you. You can also have your solicitor look over the contract. Many builders will use a standard Housing Industry Association contract. Check the drawdown schedule as this will impact on your holding costs. 
</li>
<li>
Maximising your finance and getting the best deal is an important step in the process.  Your bank will need a number of documents such as the consents and builder's contract before they can give you unconditional finance approval. Make sure you allocate four to eight weeks in your schedule to get your finance in place. This often draws out depending on how slow your bank is. The longer they take, the more holding costs you are paying waiting for finance. Your builder cannot start construction without a Letter to Commence from your bank. 
</li>
<li>
Once the builder has this permission to commence work, you move into an exciting but still risky part of the development - the build phase. The main area for cost variation can be in the site preparations and slab work. Until your site is cut, retained and slabs are piered and then laid you will not really know the true costs of your building works as most Provisional items are loaded into this early stage of building works. 
</li>
<li>
It's exciting to see your project come out of the ground and as the building works draw to a close, the process then moves into the completion stage. Now you need to maximize your rental and depreciation benefits or sale return. You will need to choose your management or sales agent carefully. Brief your quantity surveyor at this point to start work on your depreciation schedules and make sure you include all consultant fees, including project management if you have used a professional project manager.   
</li>
<li>
You cannot relax just yet. You need to, attend the practical completion and handover inspections with your builder and have a good understanding of their warranty periods. You need to obtain Occupation Certificates which will not be issued unless everything is complete.
</li>
</ul>
 
As project managers, our job is to manage all the fine details of the development process. There are many areas that need your undivided attention at the time. 
As part of our project management process, we prepare a detailed weekly report for clients including milestones met that week, goals for the following week to achieve and photos showing the progress. Also included is news reports in the local area that may impact on the end result. Our job is to focus entirely on the process so that our clients don't have to. It can be beneficial for inexperienced developers to use a project manager to minimise and help them through the challenges a property development can bring.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

The most common first time property developer mistakes: Not understanding the development process

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GUEST OBSERVATION
A large portion of commentary on foreign investment in Australia is based on scant data, as recent submissions to the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/foreigninvestment/index.htm">inquiry</a> into foreign investment in residential property show.
At the moment it seems the only body collecting any data on this sensitive issue is the Foreign Investment Review Board, and that appears limited. Even the Australian Bureau of Statistics and Reserve Bank <a href="https://www.canberratimes.com.au/federal-politics/political-news/abs-has-patchy-figures-on-foreign-investment-in-homes-20140625-3atp4">admitted</a> to the O'Dwyer inquiry its staff rely on trade magazines and newspapers to identify foreign real estate purchases.
The concept of foreign investment
In economics investment means the flow of additions (positive or negative) to a stock of assets, or store of value, over time in the economy. Investment is important because it contributes to the productive capacity of the economy. Residential property investment increases the flow of services from housing.
The term foreign investment is very often loosely used. It includes additions to assets by foreigners, such as internally financed additions or improvement to the assets, or externally through the purchase of new equity. But it also may include transfer of ownership of existing assets from local to foreign, such as through purchase of existing equity. By itself this would leave the stock of assets unchanged.
Prices in transactions are subject to supply and demand. They can vary from increases or improvements to production, through to speculation as in the lead up to the global financial crisis. This is another reason why the measurement of foreign investment may not be able to easily distinguish between additions to assets and the exchange of existing assets. Moreover the foreign exchange transactions which may be used to identify foreign investment do not record the reasons for the transaction.
Many foreign investment transactions involve selling and buying by entities which are themselves a mixture of domestic and foreign ownership. The IMF has rules about the how to categorise the various levels of foreign ownership involved in the transactions. “Direct investment” is that where a resident in one economy has control or a significant degree of influence directly or indirectly in the management of an enterprise resident in another economy. A rule of thumb is more than 10% of the worth of the entity is involved in the transaction.
Data collection needs resources
As in the case of any data, the quality of foreign investment data is only as good as the amount of resources devoted to the collection, and that has been determined historically. There are primarily two sources of data for foreign investment in Australia, the FIRB and the ABS.
The state titles and transfers offices do not record the nationality of parties in property transfers. The addition to cost for improving data collection needs to be weighed up against the benefits of the additional information gained from that data. For national data, this is invariably a political question, not only in determining the total funding or addition for data collection, but also within that the allocation to each area, as indicated in the ABS submission.
The Treasury budget <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2013/PBS%202013-14/Downloads/PDF/02_ABS.ashx">documentation</a> provides no plan to increase ABS resources, nor is the purpose of expenditure identified (except for the Census).
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Property as a special category of foreign investment
The difficulties of recording foreign investment data are widespread - Australia is one of the few countries that produce data of any sort on foreign ownership of land.
In the case of real estate, the stock of assets includes land (and improvements), buildings and other constructed physical structures. A problem for measurement of property as foreign or domestically owned arises because the land itself has to stay on Australia’s national balance sheet as an asset even though it may have a foreign owner. This involves separate valuation of the land. Otherwise the land would appear in the balance sheets as an asset of another country.
The ABS data on real estate cannot be split between foreign and local ownership, nor between commercial and residential. The ABS includes foreign investment in property in purchases of Australian equity in “other business services” which includes legal, accounting, marketing, computing and scientific services, amounting to about A$33 billion in 2013. The data is obtained by survey of the businesses involved.
FIRB data is collected for a different purpose
The ABS also makes use of data from the FIRB on investment intentions by foreign investors outside the Australian corporate structure, estimated at a value of A$24 billion for 2013. The FIRB data are based on applications it receives. It would only include the value of foreign investments where the amounts are greater than the threshold requirement for applications, currently A$248 million for business investment from most other countries. Lower or zero thresholds apply for real estate or for government investors. It is not clear how repeat and unsuccessful applications are accounted for.
Emigrating Australians increase foreign investment assets - by another A$48 billion. Overall foreign holdings of Australian real estate appear to add about 3% to total foreign investment. The RBA estimates that foreign investment is at most 5-10% of dwelling turnover value and half that in volume because the investment is in higher value houses. This leaves the likely proportion of total housing stock which is foreign owned unknown but likely to be very small.
What is needed?
The ABS recommends that if comprehensive data on foreign investment in real estate is a priority, the FIRB and the state offices for transfers and titles could be required to collect the data. The data required, according to the ABS, would include:
<ul>
<li>the market value of property transacted</li>
<li>settlement date</li>
<li>residency of investor</li>
<li>Australian residency status of purchaser</li>
<li>seller residency, and</li>
<li>whether purchaser is a corporation or individual.</li>
</ul>
Whether the foreign investor is a government could be added to the list. While the ABS proposal would need to be costed and the political will to be implemented, it appears to be a sensible suggestion to improve the data in this area.
Margaret McKenzie is lecturer, School of Accounting, Economics and Finance at <a href="https://www.deakin.edu.au/" target="_blank">Deakin University</a><a href="https://theconversation.com/institutions/deakin-university"></a>.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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MMcKenzie-5kQhUd2GMj

Little hard data in the hard area of foreign investment

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The Gold Coast market has finally entered a recovery.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/05/Gold-Coast-area-image-for-missive.jpg"><img class="alignnone size-full wp-image-7281" src="https://matusikmissive.com.au/wp-content/uploads/2014/05/Gold-Coast-area-image-for-missive.jpg" alt="Gold Coast area - image for missive"></a>
This recovery started in earnest this year.  It followed a market correction and long stagnation period.  This ‘reset and rest’ was needed, as the Gold Coast had overheated in terms of price and even rents in the mid-to-late 2000s.  Property values on the Gold Coast appreciated in the order of 165% between 2001 and 2008.
What next?
This time around, values are expected to lift, but mildly in comparison.  Potentially, house values could rise by another 9% and attached property values by as much as 11%.  This takes into account the current low interest rate setting.
The Gold Coast’s current recovery and pending upturn is likely to be short in duration this cycle, with the market peaking in early 2016, depending on interest rate movements, local employment trends and dwelling supply.
Demand
One of the driving factors behind the Gold Coast property market and overall economy is its population growth.  The already high rate of population growth is expected to accelerate in the future.  Much of this growth is imported, from interstate and overseas.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/GC-Report-P.-12.jpg"><img class="alignnone size-full wp-image-7284" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/GC-Report-P.-12.jpg" alt="GC Report P. 12"></a>
The Gold Coast also has a relatively young demographic profile, with the strongest demand over the next 10 years coming from young renters and first home buyers.
This will see the need for more affordable property.  This will likely fuel the need more townhouses plus one and two-bedroom apartments in low-to-midrise developments, mostly, away from the beach.
The size of the downsizing market is also quite large and this market, too, is looking towards smaller dwellings, but at affordable prices and in their local area.
Again, the key message here is affordable dwellings.  On average, Gold Coast households have limited income.  Increasingly detached housing is priced out of the majority’s reach.
What to buy
Investors should look to buy property priced largely under $400,000 for second-hand stock; under $500,000 for new apartments and house and land.  Property at these price points should be met with strong rental demand and should attract owner-resident buyer interest at presale.
Another big plus to the Gold Coast property cycle this time around is the undersupply of new stock and also the very tight local rental market.
Despite all the hoop-la about the Commonwealth Games, employment growth on the Gold Coast – or the general lack of it – remains a drag on the local economy and dwelling price growth.
Whilst speaking about jobs, investors should look to buy property in or within close proximity to the Gold Coast’s major employment nodes. These include Robina/Varsity Lakes and Southport/Benowa.
Moving forward
With already over 500,000 permanent residents; strong population growth, a young demographic profile and tight supply (at present), the Gold Coast property market is in its best shape for almost a decade.
We stress that the Gold Coast property play moving forward is more about jobs and buying what I call “capital city stock” rather than the traditional lifestyle coastal property. So beachfront, top-end, luxury homes or apartments might not make the best investment on the Gold Coast for the next cycle or two – the underlying demographics don’t really support such.
Our modelling suggests a growing need for more residential construction on the Gold Coast and this will further help increase employment. The city has a very strong future Property Pulse™ suggesting a growing demand for property in the region.  We stress, however, that until jobs and incomes improve on the Gold Coast, price growth, despite rising demand, will be constrained.
Final word
Now looks like a good time to buy a Gold Coast investment.  Prices should increase over the next 12 to 24 months.  Rents are rising.  But investors need to buy affordable, mainstream rental property, not lifestyle-orientated stock.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

Now looks like a good time to buy a Gold Coast investment

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It may be a wide brown land, but 80% of the dollar value of all goods and services in Australia is generated on just 0.2% of the nation’s land mass according to a study released this week.
While it is <a href="https://www.smartcompany.com.au/growth/economy/42737-did-you-know-you-spend-11-000-each-year-while-at-work?utm_source=SmartCompany&amp;utm_campaign=7fc71d8377-Friday_9_July_201409_07_2014&amp;utm_medium=email&amp;utm_term=0_234118efee-7fc71d8377-93033274">notoriously expensive to work in the CBD</a>, the study by the Grattan Institute shows nearly all of the dollar value of Australia’s goods and services is coming out of our central business districts.
The <a href="https://grattan.edu.au/static/files/assets/d9ea2b85/814-mapping-australia-economy.pdf">study</a> shows workers in Perth’s relatively small CBD were the most economically productive employees in the country, generating the highest value of economic activity per working hour in 2011-12, at $124 per hour.
Sydney workers produced $100 in value for every hour they worked there, while workers in the Melbourne CBD (including Docklands and Southbank) produced $87 per hour.
Grattan Institute cities researcher Paul Donegan told SmartCompany Perth’s productivity is tied to the mining boom, with one in three employees of mining companies located within the Perth CBD.
“Jobs such as engineers and software programmers, those jobs play a very important role in generating productivity, just as important as fly in fly out workers,” says Donegan.
If workers employed in the mining industry are excluded form Perth’s figures, the area’s labour productivity drops to below $90 per hour.
The report shows the combined CBDs of Sydney and Melbourne alone – 7.1 square kilometres – generate nearly 10% of Australia’s economic activity, three times that produced by the agricultural sector.
Donegan says there are two major reasons why the CBD produces the greatest wealth – because it has the best access to skilled workers and because it places businesses close to other businesses.
“As the workforce becomes more skilled and specialised, you want to have best choice of possible employees,” says Donegan. He says being in an area well-connected to public transport is particularly important to make it as easy as possible for the best talent to access a company.
“Being close to other businesses makes it easier for businesses to come up with new ideas, get deals done and meet people face to face,” says Donegan.
He says the Australian economy has shifted its reliance from regional agricultural areas, to manufacturing areas dispersed across the country, and now to highly digitised industries found in CBDs. Industries such as professional and financial services now makes up a large percentage of Australia’s wealth generation.
Donegan says the major challenge this concentration will create moving forward is the issue of population growth away from city centres.
“Employment growth is highest in the centre of the city, meanwhile population growth is the highest further away from the city,” he says.  
“These are areas not well serviced by public transport and are a long way from where employment growth is happening.  People in those areas, to some extent, are cut off form opportunities created by concentrated economic growth.”
Donegan says this will in turn harm the economy if business can’t get the best access to the deepest pools of skilled employees.
“If people can’t access those potential employers, that is bad for business because they won’t find the best fit.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Australia’s top money-making hotspots revealed

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While it’s often not obvious, a sign of a poorly performing property market can be a low level of residential sales.
It reflects a low level of confidence; owners may be relucent to sell for fear of achieving a low price and buyers may also be reluctant to make the significant commitment that is required when entering into a home loan.
Low transaction levels have a range of negative consequences; professions related to property suffer, state government incomes drop and buyers can find it more difficult to find the right home due to a lack of choice. It's the reason why the number of transactions is an important metric to follow if you are interested in the state of the market – sometimes it can be even more important than prices.
For the Melbourne market, the current level of transactions suggests a healthy market below its peak. The first indication of this is that home values are at a peak in nominal terms but are still around three years worth of inflation below their value in real terms.
The second indication is that the overall number of settled sales at the end of April was only 1.3% higher than a year ago. This is better than 2012 by a reasonable 4.4% but well below the all-time record in 2007 when there was 105,194 sales in Melbourne and four months into this year we are still 22.2% lower.
This data may be surprising to anyone who has seen the record number of auctions this year but as that only accounts for around 31% of sales it can’t provide an accurate picture of the entire market.
As volumes rise, there are 665 auctions scheduled this week in Melbourne compared to 637 for the same time last year.
The market returned to trend last week following the aberration the week before. Along with an increase in volumes, demand continues to build slowly  in the lead up to spring when buyers will find more choice at auctions and improvement for the range of homes on offer.
On a Melbourne-wide basis, the number of days houses are taking to sell by private sale remained above 40 over the last week, higher than was the case over much of summer and autumn. The likelihood of the private sale market tightening substantially will be mitigated by the lack of growth in buyers based on mortgage market activity.
Key data
<ul>
<li>Clearance rate week ending 20 July: 68.4%</li>
<li>Melbourne auctions expected week ending 27 July: 665</li>
<li>Melbourne private sales time on market week ending 20 July: 43 days (houses)</li>
<li>Melbourne vendor discounting market week ending 20 July: -5.2% (houses)</li>
<li>Listings being prepared for market are 0.5% lower in month ending 20 July (seasonally adjusted)</li>
</ul>
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Melbourne transaction numbers slowly rising: RP Data's weekend auction preview

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The first homes and roads at Mirvac’s Harold Park residential Glebe development have been opened, marking the completion of Harold Park’s first precinct, Locarno.
It comprises 298 apartments and terraces in the precinct that will see around 2,500 people live in the 10.6 hectare park side development.
It was August 2011 when Mirvac began marketing its proposed <a href="https://haroldparkbymirvac.com" target="_blank">Harold Park</a> development less than a week after taking ownership of the former harness racing ground. The first sales came in November when prices started from $499,000 for studios, one bedders from $550,000; two bedroom apartments from $775,000; and three bedroom units from $1,245,000.
<img src="/images/2014/07/24/locarno%20harold%20park.jpg" alt="">
Mirvac’s CEO and managing director, Susan Lloyd-Hurwitz, said today that Harold Park set a benchmark for residential development, balancing density, sustainability and quality of life.
“The inner-city will gain a new park that leads right down to the harbour, another two km of cycle paths, easier access to Jubilee light rail station and a new community space with the proposed future restoration and adaptive reuse of the Tramsheds." Ms Lloyd-Hurwitz said.
"Sustainability was at the heart of the way in which Mirvac conducted its business, developing land for housing and employment,” she said.
Harold Park exceeds BASIX targets by 25%.
"That in turn means it offers a better quality of living for residents and becomes an asset for the whole community,” she added.
Lord Mayor Clover Moore said the project was an "achievement for the city".
"The people who will live here will be blessed," she said.
<img src="/images/2014/07/24/harold%20july%2025%20one.jpg" alt="">
Buildings and roads at Harold Park acknowledge the champions of the paceway from 1911 until the final race in December 2010. 
The first precinct, Locarno, was named after the 1980 Miracle Mile Winner, driven by New Zealand owner-trainer Robin Butt, who was at Harold Park for the official opening.
The newly opened streets, Grattan Close and Scotsman Street, were inspired by 1974 Miracle Mile winner Hondo Grattan and the 1979 winner The Scotsman. 
Construction of Harold Park began in 2012, with completion anticipated in 2017. More than 4000 jobs will be generated throughout the life of the project. 
Strong sales have meant that release dates for the six Harold Park precincts have typically been brought forward to meet demand. The most recent precinct release, Altivolo, sold out in a day and Mirvac is currently awaiting DA approval for the fifth precinct.
Some 900 sales have been achieved to date.
With an estimated $30 million cost, the Tram Shed Depot at the northern end of the site, built in 1904 to serve Sydney’s growing network of tram lines, will be adaptively reused to become a market style retail destination and community hub.
HISTORIC TIMELINE FOR HAROLD PARK 
1828 – Suburb of Glebe proclaimed
1890 – Harold Park established with pony racing, trotting, bicycle races and athletics the featured events. 
1904 – Rozelle Tram Depot built to the north of the racecourse and brought punters in their thousands. 
1929 - The racecourse was officially re-named Harold Park 
1939 – US Army commandeered the park for use through the Second World War. 
1958 – Rozelle Tram Depot closed when the Glebe line shut down. 
1967 – Harold Park’s signature race, the Miracle Mile, was introduced. 
1987 – Greyhound racing, which had begun in the inter-war period, ended. 
1987 – Live televising of races which marked the end of the big crowds at Harold Park. 
2009 – The NSW Harness Racing Club moved to Tabcorp Park at Menangle. 
2010 – Site sold to Mirvac 
2010 – On Friday 17 December, the last race meeting was held at Harold Park. 
2012 – City of Sydney Lord Mayor Clover Moore turned the first sod 
2014 – On 24 July, The Lord Mayor and Mirvac CEO and Managing Director Susan Lloyd-Hurwitz declare the first precinct, Locarno, officially open. 
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"Blessed" buyers start residing in Mirvac's Harold Park 

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Yesterday, the Commonwealth Bank cut its five-year fixed mortgage rate by 70 basis points to 4.99%, prompting cuts from competitors NAB and Westpac.
It's a record low for the bank. As <a href="/expert-insights/finance/competitive-cba-cuts-five-year-rate-to-record-low-as-inflation-quickens">Jonathan Chancellor reports</a>, Westpac and NAB matched the Commonwealth Bank's rate within a few hours. 
Westpac's 0.80% cut only comes into effect on July 28. Their offer includes a discount of 0.2% under the bank's Premier Advantage Package. It will be available to both new and existing customers for a limited time.
NAB dropped its five-year fixed rate by 70 basis points, matching the Commonwealth Bank's 4.99% rate. The new rate will be available from tomorrow. It also cut rates on its three and four-year fixed rate home loans, with a 4.99% rate for its four-year product and 4.94% rate for its three year fixed rate loan. 
ANZ is the only of the "big four" banks to hold the interest rate on its five-year fixed rate loan after yesterday's Consumer Price Index figures were released. Its offers a 5.94% rate on the product. Michelle Hutchison of rate comparison website Finder.com.au says those worried about potential interest rate rises should consider adopting a fixed loan while rate remain competitive.
"Long-term fixed rates such as five-year terms are riskier than shorter terms for one or two years because you have potentially more to lose because you're betting over a longer period of time," said Hutchison. However, she warns borrowers against taking up a loan purely because of a low interest rate.
"It's great to see the big banks dropping their rates and being more competitive but borrowers need to look into all the conditions and details before jumping into a fixed home loan. For instance, Commonwealth Bank's five-year fixed rate of 4.99% must be taken out in their packaged deal which means it has an annual fee and you need to open other accounts with the bank too," she says.
"The problem with fixing your home loan right now is that there's a chance more lenders will follow the major banks' lead and drop their five-year fixed rates even further so borrowers could miss out on even bigger savings. 
"Borrowers are also betting on their fixed rate staying below variable rates for most of the next five years. But fixing brings reassurance that your mortgage repayments won't move which can be worthwhile if you're budget is tight or you're planning to have a reduced income for starting a family or going overseas in the next few years," Hutchison explains.
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NAB and Westpac meet CBA's rate cut

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Charter Hall launched the start of construction for their 333 George Street office building project last night, with the support of Lord Mayor Clover Moore.
The new office building at <a href="https://333george.com.au/" target="_blank">333 George Street</a> will include 12,500 square metres of open, flexible office space on 15 levels, aiming to be part of the wave of flexible working, or hot-desking, that has been an increasingly popular trend. It has been designed by Grimshaw and Crone Partners, with construction partners Watpac.
It also includes 2,100 square metres of retail at street level. The entire development is valued at $250 million.
Typical office spaces will be 970 square metres in adaptable configurations, and the entire building is targeting a 5 star NABERS rating.
Moore explained to Property Observer that the revitalization of George Street is one of the city's larger current ongoing projects, and will take some years to complete. While surrounding laneways such as Angel Place will be the focus of revitalisation efforts, Moore pointed to Town hall as a potential next project.
<img src="/images/2014/07/24/ignite-july-24-three.jpg" alt="">
Speaking at the construction launch, held at 1 Martin Place, Moore said developments like the 333 George Street project are Sydney needs to stay abreast of its international competitors.
However, the journey has not been straightforward for the site. This was Charter Hall's third acquisition, and among all of their $7 billion worth of office buildings, managing director David Harrison said it was one of their most exciting. They have 100% ownership as the developer, through Core Plus Office Fund.
Despite being an early acquisition, it took some time for the project to be completed. Harrison said that the GFC did delay the project, but that it was always a “crappy building in a magnificent location… Martin Place is the business core of Sydney CBD”. The existing building, that's currently in demolition phase, is a 1970s construction.
The building is neighboured by retail outlets including Louis Vuitton, Burberry and an Apple store.
Tenant pre-commitments for the development are being sought, with completion expected for mid-2016.
Charter Hall is well known for their Melbourne work on 171 Collins Street.
It seems the City of Sydney and Charter Hall are focused on one word: "vision".
The concept of a vision for the site was mentioned by many at the launch event, and is the focus of their marketing material for the development.
<img src="/images/2014/07/24/ignite-july-24-one.jpg" alt="">
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