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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GUEST OBSERVATION
I'm so angry!
It is the property market equivalent of Storm Financial just waiting to implode and no one seems prepared to do a damn thing about it. I am one of a handful of people who have been proactive in lobbying for new legislation to protect property investors from vested interest groups for some years. Yet we keep seeing deals being done between property developers and white-collar service providers.
Currently, there is no law in this country which prevents people such as mortgage brokers, accountants, and financial planners from profiting out of persuading consumers to purchase a property from a product list, even though they have no qualifications or skills whatsoever in this field.
Just this week, a home loan group announced that they will offer “independently graded and valued” property.
“Independently graded” means “product which one gets a good kick-back through the strategic use of smoke and mirrors”.
They said that their scheme would reassure customers that the properties hadn’t been overpriced to account for massively inflated sales commissions. They were referring to some groups, including mortgage brokers, who are reportedly receiving up to 8% of a property sale price as a rebate from developer’s marketing arms.
How wonderfully comforting that is. Not!
The price of an asset being supported by a valuation report does not determine whether or not the asset has strong investment fundamentals and a healthy outlook. It disgusts me when people try to portray a white-knight status with a north-pointing moral compass when the truth of the matter is that greed and opportunity are the real behaviour drivers.
They said that they're providing a range of investments that can be confidently offered to their clients... but what's to stop them from offering clients opportunities to buy shares in the next ABC Learning or HIH Insurance?
The reality is that, unless studying property markets is your core business, I’d suggest that you’d know as much about what constitutes a good investment property as my mechanic would about stock markets. But, at least my accountant is giving stock tips and getting a clip on the ticket from the ASX.
This article continues on the next page. Please click below. 
<hr class="system-pagebreak">
The federal and state governments are whom I’m most angry with over this disgraceful fiasco.
Amongst other things, I’ve personally met separately with senior officials of the federal government’s financial services ‘police’ (aka ASIC) and the Queensland state government’s Attorney General’s Office. Responses that I have received range from “we can’t intervene because property isn’t considered to be a financial instrument”, to “we must be careful not to deprive people of earning a living”, and “we are looking in to it”.
It is not uncommon for my office to receive approaches from marketing companies who represent property developers and offer us in the vicinity of $50,000 per property. They are dud investments. These companies offer to supply us with all the glossy brochures, website portals, and all of the jazz words and crappy stats which they purport to be ‘research’. Regardless of where the property is located, who the developer is, or whatever spin they use, the common denominator is always brand new property. Always!
How else can those big fat rebates payable to brokers, accountants, and financial planners get funded?
No matter what spin they choose to use they are selling property. Let’s face it, in many cases it wouldn’t be too hard for them to persuade someone to buy one of the properties on their product list because the relationship and a sense of trust is already established as a result of their core business as a specialist in home loans, tax, or managed funds. Is it just me, or can anyone else see a problem with these people selling property?
For over a century there has been a recognised profession for selling property in Australia – they are called real estate agents. The law requires them to pass exams, acquire a license, hold professional indemnity insurance, complete ongoing training, understand and respect property legislation. They also work for and are paid by the property owner, and most do a good job for their client. But, how is it possible that others can exploit a pre-existing relationship from another profession and sell property with nothing more than a nod and a wink?
If they want to sell real estate, go for it. Get the license and put the sign out the front. But present yourself for what you are – someone selling property – not a property guru who very conveniently happens to have a list the best investment properties out of the 9.3 million in Australia.
An accountant is no more qualified to determine whether property ‘x’ is a good investment than a real estate agent is qualified to give tax advice. Mortgage brokers and financial planners are not property investment advisors. And, a glossy brochure containing a few graphs, some generic statistics from Census, and key words such as ‘urban renewal’ or ‘inner city’ does not constitute comprehensive market research.
It is unrealistic to expect that we will ever be rid of the white-shoe-brigade property spruiker. But, in my opinion, the people whose core business is another profession while they line their pockets pretending to be property gurus are worse than the spruikers. Their greed-driven behaviour is no better than the used car salesman who sells you a lemon that he knows has a broken chassis. At best, these people are ‘reckless distributors’ of properties with low-grade investment potential.
No matter what other services they have previously obtained from a firm, property investors would be wise to question the motives of their so-called ‘trusted advisor’. Property investors would do well to question why not one of the other 9.3 million properties in this country.
Property investors would do well to consider how a brand new property could have the best potential for capital growth when 40% of the price is made up of the various taxes associated with developing a new property.
Simon Pressley is managing director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and Australia’s (REIA) Buyer’s Agent of the Year (2012+2013+2014).
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spressley-sBoeMhannA

Think property spruikers are bad? How about these guys

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Several times in recent weeks the RBA has made statements about the price of Australia’s housing. 
The first was that overseas buying is having little impact on price; the second was that owners shouldn’t expect prices to rise every year and the third, that if price growth slows, then many would be better off renting.
With only one real tool now left in the tool box – i.e. interest rates – there is little that The Guv can do but jawbone. 
Nothing wrong with that – you, I and many others do it on a regular basis.  The difference is we don’t get front page coverage (well, you do sometimes) or a mention on the nightly news. 
Overseas buying
Well the RBA, in my view and according to our research, is wrong.  Somewhere between 25% and 50% of new attached residential property is being sold directly overseas.
We are about to release a series of apartment sales and performance reports – which cover buyer profiles and origins, along with resale plus rental results – and the recently settled projects have all got very high overseas buyer origins.
Also, having given over 60 market outlook presentations over the past 12 months, I can tell you that many in the audience – especially in Sydney and Melbourne – are recent migrants and they tell me during our one-on-one discussions, after the formalities are over, that they are buying for not only themselves, but friends and relatives currently living overseas.  Interestingly, many think that ownership gives their friends and relatives the right to occupy.
Despite the recent low interest rates, why is it this housing recovery has been quarantined (so far) largely to Sydney and Melbourne?  Little has happened over the past 18 to 24 months, outside of these two capitals.  Is it just coincidence that both Sydney and Melbourne attract the most overseas migration and direct overseas interest?  Come on, let’s get real. and the RBA have no control over this.
Price growth to slow
Once interest rates normalise (rise) then the housing market will slow.  But more importantly, ageing demographics, especially the contraction in the size of the upgrading market, will be a big drag on house spending.  Ditto persistently high unemployment and fewer full-time jobs being created. 
Annual price growth, say, post mid-2016 (when I think interest rates will rise, due to the Federal Reserve’s action rather than anything here), would at best be 5% per annum.  So, well under 2.5% in real terms.
Article continues on the next page. Please click below.
 
<hr class="system-pagebreak">
<a href="/expert-insights/finance/no-property-bubble-but-rba-pinpoints-the-possible-future-wisdom-in-renting">Better off renting?</a>
Statistically yes, but only if households wisely invested the difference; the quality of the owner resident homes and rental properties in this country were the same and that pride, security and self-worth weren’t generated out of security of title and the ability to improve your lot.
It is amazing how a really boffin-ish academic study can get so much airplay.  But it does reiterate that the RBA expects less residential growth in the future.
I think more will rent in the decades to come, as many will be priced out of the ownership marketand/or don’t want to commit to the mortgage.  Ironically, we are likely to see fewer investors – well, first time investors mostly – as the past and easy property growth rate has gone.  It will take real skill and focus to buy the right investment product and even if investors buy wisely, gone are the days of double digit annual price growth, once this current upturn is over. 
What’s going on
Let me share some statistics with you:
<ul>
<li>
16,000 new jobs were created across Australia in June, but just 3,800 were full-time.  The unemployment rate is now at 6%.  Less wage growth is the result and about half of that experienced just five years ago.  Half of the new jobs created across Australia over the last year have been part-time.  This is now a growing trend.
</li>
<li>
Mining capex is in decline and has not (yet) been replaced by non-mining stuff – i.e. retail, tourism, gas projects, public transport and especially construction.  Things look increasingly encouraging in this space, especially with housing commencements finally starting to move upwards, but many of these new jobs will not pay as well as resource-related ones and a lot will be part-time.
</li>
<li>
94.9 is the current reading of the Westpac/Melbourne Institute index of consumer confidence – a reading above 100 signals optimism.  So, we are pessimistic. and it is more than just the federal budget or PUP and this Senate; we have been pessimistic for some time. I think many believe that Australia has been living ‘above its means’ for some time and that we need to do something about it,and now, rather than leaving it to our children/grandchildren to deal with.  This means having less.  Hard to do and such change usually zaps confidence.
</li>
<li>Investment housing loans are up over 20% on last year.</li>
</ul>
My reading is that the RBA is having a bet each way: rates to remain steady for some time, or if things continue to soften economically, then the cash rate will need to fall sometime over the next couple of months – down another 0.25%  – to help boost employment and help boost the non-mining capex industries along.
If rates do fall, this will add strength to the housing cycle, increasing prices above a sustainable growth path and level (they have already passed this point in many centres – seriously so in Sydney, Melbourne and to some degree Perth).
This collateral damage is the price we will be paying for having only one tool now to work with (we have no money left in the bank) and it is why the RBA is megaphoning about such housing matters now.
And sometime in the future – let’s say for now, in 18 or so months, the USA will start increasing their cost of funds. Why?  Because their economy will be improving and higher interest rates will be warranted. The world will have to follow suit, Australia included.
For mine, Australia’s housing markets are at a watershed – the future is much less generic price and even rental growth, real issues with affordability, acceptance of more compact and cheaper housing, plus the dire need for major changes to town-planning regulations and practice. Taxation on housing, new and established, will also need a major overhaul.
Fewer are likely to invest in property as a result; many will age in place; look to take in a tenant to help pay their way and where it is allowed, many owners will redevelop their homes – adding granny flats; creating duplexes; making extensions, but not for ‘pleasure’, rather for income generation and/or accommodating children at home for longer, or housing their ageing parents at home.
Sadly, the RBA isn’t megaphoning about this.
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michaelmatusik-49YzLvdmNv

Australia’s housing markets are at a watershed moment

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The current tax treatment of investment property losses, through a combination of negative gearing and capital gains tax, has come under fire for putting the financial system at risk, according to the federal government’s Financial System Inquiry interim report.
Currently, <a href="https://www.smartcompany.com.au/finance/investment/34310-should-negative-gearing-be-scrapped-experts-weigh-in" target="_blank">negative gearing</a> means that interest costs and other property expenses are fully tax deductible, while capital gains tax on properties is applied with a 50% discount.
The Financial System Inquiry, headed up by David Murray, states in its interim report that these arrangements “encourage leveraged and speculative investment — particularly in housing”.
“Because of these tax arrangements, owners of residential property have an incentive to repay their mortgage as slowly as possible to maximise the tax deductions they can accrue,” says the report.
“Loans with interest-only periods help to maximise these tax deductions in the early years of a loan, although these loans also give borrowers more flexibility with repayments. The tax system, therefore, encourages individuals to take on more risk, which does have implications for risks to lenders.”
Aside from negative gearing and the asymmetric tax treatment, the report identifies additional tax-related factors that are also distorting the housing market.
“In addition to the more favourable tax treatment, individuals have an extra incentive to put more of their wealth into their primary residence because of the means test for the age pension, which excludes the primary home. This leads to higher allocation of wealth to housing and, for some, an inefficient level of consumption of housing services,” the interim report states.
Current arrangements also mean family homes are a key savings vehicle for many Australians.
“Returns on owner-occupied housing (including imputed rent and capital gains) are exempt from tax, although this is not unusual by international standards. This makes housing a very attractive vehicle for savings,” the report states.
The favourable tax treatment for property investment has created a situation of increasing mortgage indebtedness, which in turn has created risks for the financial system.
“Since the Wallis Inquiry, the increase in households’ mortgage indebtedness has been accompanied by banks allocating a greater proportion of their loan book to mortgages; the share of loans for housing has increased from 47% in 1997 to its current share of 66%,” says the report.
“A large enough disruption to the housing market could have significant implications for household balance sheets, financial stability, economic growth, and the speed of recovery in household spending and broader economic activity following a shock.”
Mark Chapman, head of tax with lobby group Taxpayers Australia, told SmartCompany the report is correct in identifying that tax deductions people claim over the life of a property are greater than the losses they claim at the end.
“For high income earners, it’s an astute way to reduce their tax rate. But 70% of those using negative gearing are not high income earners, and are required to buy an asset to get a tax deduction,” Chapman says.
“It needs to be reformed. From a tax policy perspective, [negative gearing in its current form] makes little sense. In most jurisdictions, offsets for losses on property investments can only be claimed against profits on other properties, or be carried forward against future profits.”
Philip Soos, a research Masters candidate at the School of Management at Deakin University specialising in property tax law, told SmartCompany that since 2001, most investment property rents have not been high enough to cover interest and expenses.
“Around 60% of investor loans are interest only. It’s a big leverage bet on a capital gain – as long as wages are high enough to sustain the rents,” Soos says.
“While the argument is that it encourages new property development, around 96% of all investment property loans by value are spent on existing properties.”
“Abolishing negative gearing would be better than reform, but that’s unlikely, so quarantining it or reforming it so it’s limited to new, rather than existing properties, is probably the best option,” says Soos.
Brian Chant, managing director of Property Asset Planning, told SmartCompany negative gearing has some important benefits when applied to new properties.
“I think it’s very effective when used on brand new property. It allows you to turn over the economy, and when you turn over the economy, you employ people. It allows you to build new homes and new affordable housing,” Chant says.
“It needs to be reviewed and discussed further, but when it’s applied to new homes, it’s brilliant.”
However, Property Tax Specialists' Shukri Barbara told SmartCompany reforming negative gearing too quickly could create its own risks.
“One important issue is the banks, who lend up to 90%, are heavily dependent on negative gearing. If you remove it too quickly, the values will drop and create the risk that people will sell their properties for less than they owe on their mortgages,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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asadauskas-o9wSWMRiAW

Negative gearing could be putting the Australian financial system at risk: Murray inquiry

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Geelong's most notorious eyesore is on the market once more, after a 30 year development saga.
Tim Truong has relisted the vacant corner site at 10 Bellerine Street through <a href="https://www.realcommercial.com.au/property-retail-vic-geelong-501209787" target="_blank">KBL Commercial Real Estate</a>.
The 1,548 square metre property, first opened as the Belle Vue Hotel in 1853, is listed with a $3 million to $7 million price guide.
Although Truong pulled the site off the market after less than a month last year, selling agent Michael Lewin told The Geelong Advertiser that this time, he was ready to sell.
"We have been dealing with the vendors for many years and he is a genuine seller,” said Lewin.
“We have an authority signed by the vendor to sell by way expression of interest.”
He also said that Truong's family was open to discussions about the price.
Months before last year's short-lived listing, Truong reportedly said he had plans to spend $40 million developing the property.
According to The Geelong Advertiser, Truong previously lodged plans to develop on the site with the council five times: in 1984, 1988, 2003, 2004 and 2006. It currently falls within the council's Activity Central Zone.
KBL Commercial Real Estate will accept expressions of interest until Thursday 31 July at 4pm.
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jrichardson-uRX5hFdKfN

Putting on The Ritz: Geelong eyesore relisted

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Vegetarian favourite in Melbourne’s Fitzroy, The Bear Café, is closing up shop – but just for renovations.
At 439 Brunswick Street, they initially started with VIP coffee deliveries in late-2012 to Fitzroy, before expanding and including retail with food and coffee, and specialised groceries.
The café has been a more recent staple at the same address of "Animal Lovers by Neo Tokyo's" retail store, which has operated since 1998. Their focus is on gluten-free and dairy-free alternatives, but they do also provide dairy options.
It seems there was some online speculation that they are closing up for good, with outraged online comments lamenting and calling the believed closure ‘sad,’ despite no official word out from the owners themselves.
However, vegetarians and Brunswick Street lovers can breathe a sigh of relief – it’s just believed to be a temporary closure as the owners carry out renovations.
A sign out front says 'The Bear is hibernating', however Property Observer understands that it will be back up and running in three to four weeks.
<a href="https://www.propertyobserver.com.au/https://www.facebook.com/pages/The-Bear-Cafe/411756705573879" target="_blank">The Bear Cafe Facebook page</a> has been silent since January, however they had been open and busy until earlier this month.
Picture courtesy of Facebook.
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jduke-EHk3XBmHkn

The Bear Café, Brunswick Street hibernates, but for reno only

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In what is potentially many an investors' childhood dream, a Dunsborough theme park investment freehold property opportunity has hit the market.
A high level of interest expected, according to exclusive sales agents CBRE’s Ryan McGinnity and David Kennedy, who note that it is offered with a long-term lease.
The Xscape at the Cape Fun Park is on Caves Road, and includes an 18-hole mini golf cause, water slides, a Mine Shaft Maze and an ice-creamery.
Owner and operator, Douglas Campbell, is selling the property to further invest in his growing theme park business – also being the operator of Mirrabooka’s Action Park and Hillary Boat Harbour’s The Greast Escape.
“Xscape at the Cape is outstanding opportunity for those looking for a long term secure investment,” McGinnity said.
“Mr Campbell’s experience in the theme park sector, and his willingness to take a long term lease of the property, means the investment is secured by one of Australia’s best operators.”
The site also includes a kids train, a Jump N Tramp, the bouncy castle Tiki Island and state of the art playground Jungle Mountain.
The site is being offered by private treaty.
“Set on over a hectare of land, this property represents an outstanding investment opportunity, with a net rental of $160,000 per annum and initial 15-year lease with two 10 year options,” said Kennedy.
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Western Australia theme park up for sale, with long-term lease

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In the light of high commercial vacancy rates along the retail strip on Sydney’s Oxford Street, stretching from Hyde Park to Bondi Junction, Raine &amp; Horne’s Max Raine has weighed in with support for calls to the Sydney City Council to take over management from Woollahra Council.
Raine, a local property owner and recognised industry member, said that the growing vacancies are affecting Oxford Street’s name as a leading fashion and lifestyle destination, and that it’s time boundaries were changed to bring it under the financial clout of the City of Sydney.
“As a lifetime resident of Sydney’s Eastern Suburbs, I am truly gutted that this famous retail strip, which is also home to many heritage buildings such as the Paddington Town Hall and Victoria Barracks, has fallen on such hard times,” said Raine.
“Oxford Street is at the risk of becoming a retail white elephant like Newcastle’s once bustling Hunter Street, and it would be a significant blight on the history of this great city if this iconic strip is not restored to its past glories.”
A Property Observer survey in February 2013 found <a href="/news/nsw">35 out of 198 storefronts on the north side of Paddington’s Oxford Street shopping strip</a> – between Barcom Street and Jersey Road – were empty. Some were recorded as having been unoccupied for more than six months.
Notably, <a href="/expert-insights/investing/darlinghursts-oxford-square-retail-centre-listed-with-70-million-plus-hopes">Darlinghurst's Oxford Square retail centre was listed with $70 million-plus hopes in April 2013</a>.
Then, in February this year, a <a href="/news/nsw/oxford-street-retail-building-offered-for-sale">1,946 square metre retail building was offered up for sale in the Paddington section of Oxford Street</a>.
And in April 2014, <a href="/expert-insights/investing/oxford-street-sydneys-oldest-gay-hotel-venue-up-for-sale">Sydney's oldest gay venue on Oxford Street, Darlinghurst hit the market</a>.
The call comes a few months after a comprehensive Sydney Morning Herald feature on Oxford Street, which noted a mass retail and restaurant exodus from Oxford Street had the empty shops numbering 29 in the City of Sydney, 41 in Woollahra and 19 in Waverley. Paddington, bearing the brunt of the storm, clocks up 46, a vacancy rate of just over 18 per cent. In the area immediately surrounding Jersey Road, it is as much as 65 per cent.
The Activate Oxford St draft proposal commissioned by Woollahra Municipal Council was welcomed by Raine, although he notes it misses the problem of a parking station.
“The report suggests ways to improve the struggling street, such as creating new uses for vacant shops, the introduction of street theatre activities, as well as implementing improvements to the operation of Paddington Markets, however what the strip needs more of is parking, to attract shoppers back to the boutiques, cafes, bars and restaurants,” he said.
“It’s pretty simple, if you can’t park, then you can’t shop and there are some properties along Oxford Street that would make perfect sites for additional parking, including the site of the underutilised St Matthias Church on the corner of Oxford Street and Moore Park Road.” Improvements in parking infrastructure will be a costly exercise, which is part of the reason the Sydney City Council is being called upon to control the strip.
“Woollahra Council has done its best but Oxford Street desperately needs the financial clout of Sydney City Council to help return it to its former glories,” he said, promising his support behind any representations to the New South Wales Local Government Minister Paul Toole around boundary changes.
Photo of Oxford Street Mall courtesy of Wikimedia Commons.
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Oxford Street at risk of becoming a "retail white elephant": Max Raine

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A new zoning plan and planning controls for much of the City of Sydney’s employment lands has been endorsed by the council for exhibition. This covers much land currently zoned for business or industrial purposes.
Some industrial areas are expected to be retained for traditional uses, while other zones are to be introduced or expanded. This includes a B6 Enterprise Corridor zone to add to the B7 Business Park zone.
Knight Frank’s manager of town planning for Sydney, David Workman, said that the proposed changes are extensive and it is crucial to be aware of the implications on an individual property basis.
“A small change can often make a significant difference either positive or negative, particularly in terms the type of development permitted within a new zone and at what density,” Workman said.
The report that had been prepared for the Council included the following proposed changes:
<ul>
<li>A core industrial zone in the South West part that will continue to accommodate ‘traditional industrial’ uses;</li>
<li>A flexible enterprise corridor zone through the centre part that will accommodate lower density industrial and commercial uses; and</li>
<li>Business park zones in the North West and South East parts that are close to transport, services and amenities and that will provide for denser commercial activity over time.</li>
</ul>
Source: Knight Frank
It’s noted that private residential development will be restricted on the employment lands, with the exception of a Botany Road section that currently permits shop-top housing and senior housing.
Affordable housing opportunities may also be provided for.
Daniel O’Brien, Knight Frank South Sydney agency director, said that the rezoning for some of those currently zoned IN1 General Industrial means good things with the potential for higher order commercial uses than currently allowed. He also noted that it’s expected to drive employment, and therefore commercial development.
“The trend for older industrial style buildings, to be regenerated into funky office space will only gather more pace and as long as the current demand for this type of office accommodation remains strong, it will be a win:win for developers, tenants and occupiers and building owners,” Mr O’Brien said.
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How the City of Sydney’s new zoning plan affects commercial property: Knight Frank

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GUEST OBSERVATION
Growth can be hard to find in the property market. However, a hidden jewel could be dug up in the industrial sector. 
A secret missed by many investors is the strong historical correlation between house prices and industrial land prices.
While house prices get all the publicity, the industrial sector may be a useful long-term bet.
Here are four reasons why industrial property is Australia’s sweet spot:
<ol>
<li>
Industrial is the hidden growth market  As cities continue to sprawl, industrial land becomes increasingly useful.Companies like Goodman Group are converting industrial sites into apartment blocks, sometimes quadrupling property value. 
</li>
<li>
Warehousing laps up a confidence boost  People are confident during housing booms and strong consumer spending correlates with increased imports, increasing activity in distribution centres. While consumer confidence may still be low now and keeping some buyers out of the market, it will not always be that way. 
</li>
<li>
Industrial property can be a relatively reliable investment  Major developers will not undertake new projects without commitment from tenants. 
</li>
<li>
Market dynamics are good  Supply is kept relatively low, rents have been rising and vacancy rates remain muted at the high end.</li>
</ol>
Julia Forrest is REIT Portfolio Manager at <a href="https://www.btim.com.au" target="_blank">BT Investment Management</a>.
Listen to BT Investment Management’s <a href="https://www.btim.com.au/adviserbriefing/">webinar</a> to find out more.
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jforrest-H4ErufrJeZ

Four reasons there may be diamonds in industrial property

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Quest Serviced Apartments is more than doubling its room numbers in Western Australia over the next two years. 
<div>
<div>Three of the properties are located in central <a href="/news">Perth</a> on Adelaide Terrace, Kings Park Road and Mounts Bay Road, in response to increasing demand from a thriving corporate sector.
</div>
<div> </div>
<div>The other two properties are located on Flinders Lane in <a href="/news">Rockingham </a>and the corner of Pakenham and Short Streets in <a href="/news">Fremantle</a>. 
<div>
Providing accommodation to around 30,000 business travellers annually, Quest currently operates nine properties in WA at <a href="/news">Bunbury</a>, Harbour Village, <a href="/news">Mandurah</a>, on James, <a href="/news">Rheola</a>, <a href="/news">Scarborough</a>, <a href="/news">South Perth</a>, <a href="/news">West End</a> and <a href="/news">Kalgoorlie</a>.
When doors open on the five new properties, Quest will offer a total of 871 rooms across the state, anticipating hosting more than 60 thousand extended-stay business travellers each year – a 128% increase on the existing number.
All five properties have received development approval with construction commenced on all except Fremantle and Adelaide Terrace, both of which are expected to see works start in the next month.
Quest chief Zed Sanjana said Perth had leading occupancy rates with high room yield growth.
“The demand in the West is being primarily driven by the corporate market and we feel the time is right to capitalise on these strong economic indicators and push our growth, with five new developments underway to more than double our current room numbers.”
</div>
</div>
</div>
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