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?

<html><body>
A new bar is opening in Sydney’s CBD western corridor and it will be the first video-gamed themed small bar in the entire city.
Set to be located at 199 Clarence Street, and close to Baxter Inn, Lobo Plantation, Papa Gede’s and Since I Left You, the premises were leased by Spawn Point through John Skufris from Ray White Commercial for a private owner.
 “199 Clarence Street offered a lower ground whole floor tenancy with its own amenities, the availability of after hour access and was previously leased as storage space,” Skufris said.
“We were informed this is the Sydney CBD's first and only video gaming-themed small bar.”
The site is between Town Hall and Wynyard.
<img src="/images/2014/07/08/dev-plan-july-8-one.jpg" alt="">
Source: City of Sydney 
“The top floor is currently available for lease with an internal staircase to the building's rooftop area,” he said.
The entire building is six-storeys with a sandstone façade, and comes with independent air conditioning and its own amenities. It had been advertised as having the potential for a small bar subject to council approval – which it appears has been successfully achieved.
Spawn Point, founded by IT-professional and Sydney gamer Ben Mudie and Welder and Central Coast gamer Ben Shute, has taken a three year lease at gross rental of $475 per square metre per annum. The space is 88 square metres.
In June they managed to achieve Licensed Premises status from council.
They will have some tables with in-built arcade machines, and will offer cocktails, locally brewed beer on tap and they will also be accepting BITCOIN payments using a QRCode system via smartphones. Consoles include Xbox, Playstation, Game Cube, Nintendo and a number of vintage systems. These include Super Nintendo Entertainment System, Nintendo 64 and the Mega Drive 2.
“The small bar will target a different culture of people rather than the typical bar crowd,” documents submitted to <a href="https://development.cityofsydney.nsw.gov.au/Datasource/DANotifications/1141038_007.pdf" target="_blank">Council explain</a>.
The notes indicate that the bar has a maximum of 39 sitting, with a total of 60 patrons (not including staff) at any one time.
"The closest residential building is Windsor On Kent located at 365 Kent Street that is approximately 100 meters away. The next closest residential building being Broughton House located at 181 Clarence Street that is approximately 160 meters away," it explains. According to an acoustic report they provided, there shouldn't be adverse ambient noise problems noticed by the residents.
Windsor on Kent's two-bedroom apartments sell for around $700,000 to upwards of $900,000. 
"Signage will be put in place advising our patrons to leave in a quiet fashion to avoid any disturbance to residents of the CBD."
<img src="/images/2014/07/08/dev-plan-july-8-two.jpg" alt="">
Source: City of Sydney 
The proposed hours of business operation included Monday to Sunday 0800 to 0100 the next day, with alcohol to be served from 12.01 to 0045, though it's likely the bar will actually open from mid-afternoon onwards.
Casual and full time staff are expected to be hired.
Some renovations were noted as necessary, including to remove existing carpeting, removing a non-structural wall to create a single large room and removing the kitchenette to be replaced with a bar. Floating wood floor over concrete slab will be in place of the carpet. The bathrooms are also undergoing a re-tiling and replacing the vanities.
The lighting will retain the fluorescent that is currently in the building, and will include directional low powering lighting.
The street façade is the only aspect that would cause issues in regards to heritage listing – and no plans have been proposed to alter this. The internals had been previously modernised.
While it’s the first video game bar, and will likely see vast interest, there have been a number of board game bars and cafes around Sydney.
Glebe’s Bar 99 featured traditional boardgames such as Battleship and Trivial Pursuit, while Madam FlingFlong in Newtown featured Yahtzee, Cluedo and Connect Four. Both no longer operate.
Melburnians will be looking on with interest, following Mana Bar, a similar video game offering, which closed in September last year.
<a href="https://www.spawnpoint.com.au/" target="_blank">Spawn Point’s homepage</a> is currently “coming soon”. The name Spawn Point is taken from the video game colloquialism 'Spawning', which means the creation of a character. Most will be more familiar with the term 'Respawn' which is what occurs after a character dies and needs to re-appear in the game. The spawn point is where the characters appear in the game.
Previous estimates suggested that plans are for a door-opening in August.
For those looking to arcade-ready their home, here’s one <a href="/expert-insights/building/renovation-recreation-how-to-turn-your-bedroom-into-an-arcade">gamers take on a home renovation where he turned his bedroom into an arcade</a>.
</body></html>

jduke-EHk3XBmHkn

First video game-themed bar for Sydney

<html><body>
<div>
A three storey, seven bedroom Concord mansion, with a very long lap pool, set a record price for the Sydney suburb on the weekend.
</div>
No. 11 Ludgate Street, Concord was sold for $2.79  million, some $90,000 above the $2.7 million reserve <a href="https://www.realestate.com.au/property-house-nsw-concord-117145251" target="_blank">through listing </a><a href="https://www.realestate.com.au/property-house-nsw-concord-117145251" target="_blank">agent Joseph Georges from Georges Ellis &amp; Co</a>.
Bidding opening at $2.3 million with a crowd 10 registered bidders amid the 150 people at the 1.30pm auction. Sold to a local family, the agents had been initially advising $2.45 million plus.
The 700 square metre block had cost $1,305,000 in 2010 for the owner builder.
Ludgate St, Concord had another sale on the weekend with No.13 selling later Saturday afternoon for $2.28 million, but it's sale was marked down by most to the successful piggybacking the neighbouring auction.
The Sidney Koh-designed house had been for sale since June last year, with an auction sign posted soon after 11's went up.
Property Observer gleans the Concord record was for the five-bedroom home at 7 Links Avenue at $2.61 million last November.
</body></html>

jchancellor-FAypfDUnLy

Concord hits new heights with new suburb record for seven bedroom mansion

<html><body>
A Bexley vendor and their estate agent have publicised their reserve price ahead of its 19 July auction.
The unusual tactic has already garnered a boost for its marketing with a feature in yesterday's Daily Telegraph, and featured on a Channel 10 news report by Daniel Sutton.
Their web marketing doesn't actually give the reserve price, so presumably inspectees of 15A St Georges Road have been advised of it when they turn up or ring the agent.
The LJ Hooker listing agent confirmed to Property Observer that there was no marketing of the reserve price as he needed to engage possible buyers in a conversation which might not happen if the reserve price was publicly available.
Which highlights the concern of disclosed reserves in the lead up to any auction. 
<a href="https://www.realestate.com.au/property-house-nsw-bexley-117327823" target="_blank">There is a $570,000 disclosed reserve price for the two bedroom, two bathroom property</a> which traded at $400,000 in 2004.
My view is that disclosed reserves are worthy for run of the mill property, but likely to work against any vendor with a property tapping emotional purchase aspirations.
I am a bigger supporter of price guidance, as long as vendors and buyers are being told the same figure.
The last survey reported by Property Observer on the gap between real estate agent price guides and actual auction results in Sydney sat at 12%, according to an August 2013 survey by Intelligent Property Services.
In 2012 there was an 9% variation and in 2011 an 8% variation.
Head of research at Intelligent Property Services, Joe Kotevich, suggested the surge came more as a result of buyer demand than any deliberate lowballing by agents.  
Intelligent Property Services obtains the price guides after the first week of showing the property, allowing time adjustment of expectations. The auctions are monitored following inquiry from its buyers agent department.
</body></html>

Bexley pre-auction reserve disclosure the one swallow before spring

<html><body>
The Australian Veterinary Association (AVA) in conjunction with the Australian Companion Animal Council have put out their 2014 guides, one for landlords and one for renters, around allowing pets in investment properties.
They provide <a href="https://www.ava.com.au/sites/default/files/AVA_website/ASAVA/CF142757%20ACAC%20Tenants%20with%20Pets%2007%2005%2014%20WEB.pdf" target="_blank">10 reasons they think animals should be allowed</a>:
<ol>
<li>Pet owning tenants are generally willing to pay more rent. 
</li>
<li>Pet-friendly properties rent faster. 
</li>
<li>Responsible pet owners can make excellent tenants. 
</li>
<li>Tenants with pets want to hold longer leases. 
</li>
<li>Reduce your advertising spend. 
</li>
<li>No more problems with ‘hidden’ pets. 
</li>
<li>Most Australians feel their pet is part of the family and care for them as such. 
</li>
<li>Reduce animal euthanasia; animal welfare agencies indicate that as many as 30% of dogs and cats are surrendered by owners who are unable to locate adequate accommodation. 
</li>
<li>“Considering pets” will not lock you into a pet- particular outcome. 
</li>
<li>Pet application and agreement forms are available to help landlords and managing agents implement a successful pet management policy and help tenants understand how to responsibly manage pets.</li>
</ol>
Source: AVA
In fact, when it comes to paying more rent, the research they cite suggests that renters are prepared to pay 7% to 14% more to bring their beloved pet along.
Basing their thoughts on US research that may reflect behaviours in Australia as well, they note that 25% of renters in the Companion Animal Renters and Pet-Friendly Housing in the US study were seeking pet-friendly accommodation, with applicable properties receiving twice as many applicants and renting out 10 days faster. The research from the US also suggests that longer leases are desired by tenants with pets, with some wanting to stay more than double the length of time as those without.
They also note that current Australia-based research suggests that 11% of pet-owning tenants keep their pets secretly, without telling their landlord, and usually it’s cats.
If you’re tempted to allow your tenant to keep pets, there are ways to go about it. Consider pet agreement forms, where you lay out your expectations, pet application forms for new tenants and, for Western Australian landlords, pet bonds.
</body></html>

10 reasons landlords should consider allowing tenants to have pets: AVA

<html><body>
The 10 most expensive homes in the country sold this week are all located in Queensland and New South Wales.
While <a href="https://www.myrpdata.com/" target="_blank">RP Data</a>’s top 10 sales list is usually dominated by east coast cities, Melbourne usually makes an appearance. Not so this week, when three Queensland properties made the top 10 list, with the remainder coming from Sydney.
The most expensive sale of this week is $1.5 million down from last week’s top sale, when <a href="/news/madame-korner-sells-longtime-double-bay-home">Judit Korner secured $7.2 million</a> for her Double Bay home. 
<ol>
<li>
<a href="https://www.offermann.com.au/buying/6_belmore_tce_sunshine_beach/" target="_blank">6 Belmore Terrace, Sunshine Beach, Qld </a><img src="/images/2014/07/08/ex1.jpg" alt="" style="line-height: 1.3em;"> The week’s top selling home was a two storey beach-facing house designed by John Mainwaring. The architect happened to also design another top 10 trophy home – the house at 145 Ryan St, West End, was last week’s eighth highest sale, selling for $2,475,000. This <a href="/news">Sunshine Beach</a> contemporary home (pictured in the gallery above), with six bedrooms and five bathrooms, sold for $5,700,000 through Tom Offerman Real Estate. According to the agent, the vendors tasked Mainwaring to design a “robust, calm and intimate” home. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-church+point-114770779" target="_blank">2101 Pittwater Rd Church Point NSW <img src="/images/2014/07/08/ex2.jpg" alt="" style="color: #333333; line-height: 1.3em;"> </a><a href="https://www.realestate.com.au/property-house-nsw-church+point-114770779" target="_blank"> </a>Edenwood, a four bedroom, four bathroom house, sold through Re/Max for $5,075,000 this week. Set on a 3,465 square metre plot, the double storey home has panoramic views of Pittwater through mature gum trees. The home comes with a heated pool and spa, with a tennis court and pavilion. The vendors purchased the property for $2,080,000 in 2000.<a href="https://www.realestate.com.au/property-house-nsw-church+point-114770779" target="_blank"> </a>
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-vaucluse-115911775" target="_blank">2 Macquarie Road, Vaucluse, NSW </a> <img src="/images/2014/07/08/ex3.jpg" alt=""> This five bedroom, five bathroom home sold for $4,050,000 through Laing + Simmons Double Bay after 158 days on the market. The corner-positioned full brick three storey residence is set on 670 square metres of land. It opens with a double height marble foyer and continues through to several living and lounge areas, including an octagonal sitting room. It was advertised by the agents as having “good fung choi [sic]”. The listing information also says that the vendors would “now meet the market” for the sale. They made a loss on the property, paying $4,250,000 in 2010. 
</li>
<li>
<a href="https://%20%20%20http:/www.realestate.com.au/property-house-nsw-vaucluse-116319743" target="_blank">50 Hopetoun Avenue, Vaucluse, NSW</a> <img src="/images/2014/07/08/ex4.jpg" alt=""> A north facing house on a 940 square metre plot also secured $4,050,000 when sold through 1st City Hasemer &amp; Caldwell.Eyles Double Bay. The five bedroom, three bathroom house has a formal living room, separate dining and separate rumpus room with kitchenette and media room. Outside, there is a saltwater pool and courtyard. The house had last changed hands 38 years ago. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-vaucluse-115094859" target="_blank">36 Olola Avenue, Vaucluse, NSW</a> <img src="/images/2014/07/08/ex5.jpg" alt=""> Another Vaucluse home made the top 10 list, with this house selling for $3,370,000 through Raine &amp; Horne Double Bay. Situated opposite Vaucluse park, the contemporary home has four bedrooms, five bathrooms, a study and a lobby and gallery area with a cathedral ceiling. There is a self-contained one bedroom area downstairs, with an office area and bathroom. Outside, there is a heated pool. The vendors unsuccessfully attempted to sell the home at auction in December last year. They held the property for 27 years – it was purchased for $833,500. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-dover+heights-117141091" target="_blank">33 Military Road, Dover Heights, NSW</a> <img src="/images/2014/07/08/ex6.jpg" alt=""> This home secured $3,250,000 at a mortgagee in possession sale through BradfieldCleary Double Bay. With coastal views, the house has four bedrooms and three bathrooms, with open plan living areas. The property has a lap pool, wine cellar and a four-car garage, with a rooftop terrace. The master bedroom has its own private balcony. It was purchased in 2010 for $4,250,000. The former owner attempted to sell the house in March last year, but it failed to move after 194 days on the market. 
</li>
<li>
<a href="https://www.raywhite.com/qld/south-brisbane/1062220/" target="_blank">51/410 Stanley Street, South Brisbane, QLD </a><img src="/images/2014/07/08/ex7.jpg" alt=""> A four bedroom, four bathroom South Brisbane apartment sold for $3,200,000 through Ray White Clayfield – more than eight times the <a href="/news/qld/what-can-you-buy-for-brisbane-and-the-gold-coast-s-median-unit-price">Brisbane and Gold Coast median unit price</a>. The north-east facing home has 731 square metres of floor space across a single level. The master bedroom has a marble en suite, walk in robe and private sitting room with access to a covered balcony with city views. Each of the apartment’s four bedrooms has balcony access, while the apartment also comes with a private rooftop pool and spa.</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-concord-117145251" target="_blank">11 Ludgate Street Concord, NSW</a>
<img src="/images/2014/07/08/ex8.jpg" alt=""> This three storey Sydney home sold for $2,790,000 through Georges Ellis &amp; Co Strathfield. The seven bedroom, four bathroom house is set on an elevated 697 square metre block with views of the Harbour Bridge and Sydney’s skyline. The vendors purchased the property for $1,310,000 in 2010. 
</li>
<li>
<a href="https://www.raywhite.com/qld/new-farm/1149315/" target="_blank">106 Villiers Street, New Farm, QLD</a> <img src="/images/2014/07/08/ex9.jpg" alt=""> A contemporary home situated on Teneriffe Hill secured $2,605,000 when sold this week through Ray White New Farm. The entire top floor of the home is a dedicated master suite, while downstairs there are various living areas, a kitchen with marble and stainless steel benches and four more bedrooms. The lower living areas open on to a tiled outdoor entertaining area with barbecue and a lap pool. The vendors purchased the property for $1,175,000 in May 2008. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-nsw-queenscliff-117335575" target="_blank">7 Hill Street, Queenscliff, NSW</a> <img src="/images/2014/07/08/ex10.jpg" alt=""> This semi-detached home sold for $2,450,000 through Cunninghams Property Balgowlah. The bright four bedroom, three bathroom house is located 400 metres from Queenscliff beach, with schools, shops and public transport within walking distance. The entire second storey is taken up by the master bedroom and a “parent’s retreat”, with a full en suite and north facing balcony. After just over two years of ownership, the vendors sold the property for around $500,000 more than the purchase price. They bought the home in April 2012 for $1,915,000.
</li>
</ol>
</body></html>

jrichardson-uRX5hFdKfN

The 10 most expensive home sales of the week: RP Data

<html><body>
Brisbane went the closest for many months to recording the weekend's top national auction sale.
It was almost a photo finish, according to the APM results:
<ul>
<li>$2,790,000 - 11 Ludgate St, Concord NSW 2137, 7 br house, Georges Ellis &amp; Co</li>
<li>$2,605,000 - 106 Villiers St, New Farm QLD 4005, 5 br house, RW - New Farm</li>
<li>$2,350,000 - 21 Clancys La, Doncaster VIC 3108, 5 br house, Jellis Craig Doncaster</li>
</ul>
The five bedroom New Farm property (pictured above) - marketed as one of the most exceptional addresses of the year - is set on Teneriffe Hill.
The 380 square metre block which cost $1.175 million in 2008, now comes with 480 square metres of living.
<a href="https://www.realestate.com.au/property-house-qld-new+farm-117172127" target="_blank">Matt Lancashire of Ray White</a> said the entire top floor had been designated as a superb master suite which sets a new standard in luxury.
The street's previous record was $2.2 million for a <a href="https://lockyerarchitects.com.au/news/?p=352" target="_blank">Lockyer Architects-designed house</a>.
</body></html>

 New Farm mansion with whole floor master suite sells for $2.6 million

<html><body>
An interesting release from Australia's largest mortgage aggregator Australian Finance Group, showing some notable trends in the Aussie property market.
The index is highly seasonal, of course, as we are now into the cold winter months - and most certainly in Sydney we are!
Stripping out seasonality, mortgage demand sits some 23% higher than it was a year ago.
Even allowing for any possible shifts in AFG's market share, this implies a huge annualised uplift in mortgages sold:
 <img src="https://1.bp.blogspot.com/-Y6RNrL1ZFBc/U7SvsRlQbvI/AAAAAAAAOOs/cVdY8ya1T7o/s1600/AFg6.jpg">
The average mortgage size by state shows that how it has been New South Wales and specifically Sydney which has driven the property boom over the past 18 months.
Queensland has also been a strong performer over the 12 months from July 2013.
Elsewhere, markets have been solid enough, but relatively much more subdued:
 <img src="https://2.bp.blogspot.com/-KTJ0y5gnZqs/U7Svs_LC0gI/AAAAAAAAOOc/rF4Cf7JvuvE/s1600/Afg1.jpg">
One trend we are watching is the role of investors by state, and in particular whether investors will spread their wings to look at the Sunshine State of Queensland next up in seeking yield and value.
There has been an uplift in the share of investors in the Queensland market, but Sydney remains the speculator's paradise with more than 45% of the mortgage market being sen up by investment purchases:
 <img src="https://3.bp.blogspot.com/-sHzCLOouTno/U7SwGxPWEVI/AAAAAAAAOO0/0YWRcv0ET_g/s1600/AFG7.jpg">
In terms of mortgages sold for the state, New South Wales demand has ripped upwards by +33% year on year, despite the low number of reported first home buyers.
It will be interesting to see if NSW mortgage demand resumes its upwards trajectory from July through to December as it did in 2013:
 <img src="https://1.bp.blogspot.com/-ceaR2JP-uZ8/U7Svro9UdXI/AAAAAAAAOOQ/B8kauromDCo/s1600/AFg4.jpg">
Overall, a strong release, and stripping out seasonality mortgage demand appears to remain in a secular uptrend which has been in place since 2011.
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
Housing construction boom still on track?
I put forward the view some time ago that residential building approvals would likely hit all-time record highs, driven on by rising dwelling prices over the past couple of years.
Although is is argued by some that supply is effectively strangled by planning restrictions and NIMBY-ism (to some extent, this obviously does play a part, particularly in established inner- and middle-ring suburbs), there has been another factor at play.
And that is, with high labour and construction costs in Australia combined with government charges, dwelling prices were simply not high enough to encourage developers to build.
The numbers are clear - if Sydney's apartment prices were to dip much below $550,000, construction will quickly dry up, even with today's lower financing costs.
In short, projects would not be sufficiently profitable for developers to build and there would be no adequate return on investment.
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8-small.gif" alt="Graph 8: Construction Costs">
It's that simple. Ask anyone who works for a major developer in a residential division and they will tell you the same thing.
Dwelling values were previously too low and price action not strong enough for developers to be interested, until recently.
Indeed, RBA Governor Glenn Stevens confirmed as much in a speech this morning.
However, with prices moving up, there is clearly no shortage of approvals being waved through now in Sydney, thus underscoring the point.
In some areas, every second block appears to be under construction, especially in a number of inner south suburbs where thousands upon thousand of apartments are due to come online.
After three months of softer data, most commentators had already called the end of the approvals boom.
Admittedly, things were looking a tad shaky, but at the end of the day monthly approvals data is always necessarily going to be all over the shop.
In the event, after three weak readings building approvals in May jumped by 9.9% month on month to be up 14.3% year on year:
 <img src="https://3.bp.blogspot.com/-OmJ3i3uomTc/U7UFvwEANpI/AAAAAAAAOPk/YFCx_BAwDfQ/s1600/a+approvals.jpg">
This data is always easier to read when smoothed out on a rolling monthly basis.
As you can see, rolling 12 monthly approvals are approaching the highest level ever recorded in Australia, now tracking at well over 190,000.
The previous annualised record was recorded in 1994 after the cash rate had been slashed from the nosebleed level of 17.5% to just 4.75%, resulting in higher prices and and a construction boom:
 <img src="https://3.bp.blogspot.com/-OmJ3i3uomTc/U7UFvwEANpI/AAAAAAAAOPk/YFCx_BAwDfQ/s1600/a+approvals.jpg">
The major driver in this cycle has been a big ~20% year on year uplift in apartment approvals, casting a lot of doubt over the sticky supply response theory.
In fact, apartment approvals are booming to new record highs:
 <img src="https://4.bp.blogspot.com/-WdLE8tX-6IU/U7UH3Da_DEI/AAAAAAAAOQI/JhEwwZ3HirU/s1600/3+units.jpg">
New South Wales, a state with both a dwelling and an infrastructure deficit, has been leading the way with gusto in recent years:
 <img src="https://4.bp.blogspot.com/-9oOHSiKj9R8/U7UFveRjdOI/AAAAAAAAOPc/CbrADiFPzO0/s1600/4+NSW.jpg">
In NSW's case too, it's also been largely an apartment story, with nearly seven in every 10 approvals over the past year relating to unit and apartment stock in Sydney and the state-wide level of apartment approvals soaring:
 <img src="https://2.bp.blogspot.com/-DiMTITiI9rE/U7UFvl0XoWI/AAAAAAAAOPg/68ayXXSzr38/s1600/5+NSW+apartments.jpg">
That said, it's notable that what started as a New South Wales and Western Australia boom is now becoming more broad-based.
Only in the Australian Capital Territory jurisdiction, where new supply is essentially not really needed, are building approvals not materially higher than a year ago.
In terms of the capital cities, approvals are generally very strong as detailed by RP Data's Cameron Kusher here:
 <img src="https://1.bp.blogspot.com/-d-JzbvPy290/U7UJMz1CTPI/AAAAAAAAOQc/lbcukkrH_hA/s1600/7RPD.jpg">
Source: RP Data, ABS.
"As you can see from the above chart, across each of the major capital cities there has been an upswing in dwelling approvals.
"The most significant upswing has occurred in Sydney and Brisbane however, the number of approvals remains much higher in Sydney and Melbourne than in all other cities.
"The number of dwellings approved for construction is at an all-time high currently in Perth, is very close to its record high in Sydney and at its highest level since the 12 months to June 2004 in Brisbane," wrote Kusher.
No signs of any constipated supply response there, rather the market just seems to be doing exactly what it should do, and the dwelling construction boom remains - albeit tentatively - still on track.
Acquirers of property, particularly buyers of units and apartments, must be wary of pockets of oversupply.
Great wall of foreign capital hits Sydney &amp; Melbourne
Some years ago when I wrote my first book, I noted that one day in the not too distant future, the Aussie dollar would depreciate again and certain parts of our property markets would likely be hit by a great wall of foreign capital.
It's all part of a global shift towards storing wealth in real estate which I discussed in more detail here, and which we have seen playing out in London over the past two decades with ever-widening eyes.
However, as I noted in my book, foreign buyers generally aren't interested in smaller cities and regional centres.
Instead, they will be predominantly interested in buying medium-density properties in the areas they are generally most familiar with - that is to say, inner Sydney and inner Melbourne.
Credit growth in Australia is only just rebounding from 40 year lows and yet prices are surging, with Sydney prices up by 15.4% in the last 12 months alone.
Well, that unprecedented great wall of foreign capital is now here.There has been a lot of debate about foreign buyers purchasing illegally, but even approved annualised spending is up by a whopping 93% to an annualised equivalent of more than $33 billion.
The always-excellent Chris Joye <a href="https://www.afr.com/f/free/blogs/christopher_joye/foreign_buyers_purchase_homes_to_VCVDT4m60HAlgpYbdGrCSL" target="_blank">highlighted in the AFR</a> how foreign buyers are buying up to 40% of newly constructed homes in Sydney and Melbourne (while simultaneously completely disregarding the southern states):
"Foreign investors are likely key drivers of the Sydney and Melbourne housing booms, according to new UBS data, potentially buying up to 40% of all newly constructed homes, and accounting for up to one in eight Australian sales overall.
"Unprecedented levels of foreign buyer activity, combined with the ability of the $559 billion self-managed super fund sector to leverage its cash five times when making property purchases, could be two reasons why this Australian housing cycle is different to anything we’ve seen before."
<img src="https://www.afr.com/r/AFR/Blogs/christopher_joye/201406/Images/housing414x727.png" width="227" height="400">
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
Lucky 888 Visas take-off
An interest sub-plot which has not received much airtime in the mainstream media is that the controversial "Significant Investor Visas" are being issued overwhelmingly in New South Wales and Victoria too - 85% of them.
The investor "Golden Ticket" or "Lucky 888" visas (doubtless that subclass was chosen as they will be mainly issued to Chinese immigrants) require a minimum $5 million of investment in qualifying assets in exchange for a visa, and the rules allow them to be processed very rapidly.
Another 81 visas were issued in April and May taking the tally to date up to 255, but the big story is that another 928 applications for Golden Ticket visas have been lodged.
Tally all of that up and that's another $5 billion of investment coming overwhelmingly into the two major states, not to mention the additional wealth that the new visa holders will bring with them.
And this is doubtless only the beginning.
Canada recently shut down its equivalent visa scheme with there still being a staggering 59,000 shut out in the waiting lists, most of them wealthy Chinese.
Throw in all of that together with another new advent - SMSF lending for property investment - mixed in with record low interest rates, and I continue to see little prospect of dwindling prices in inner Sydney any time soon.
Yesterday's <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3401.0Main+Features1May%202014?OpenDocument" target="_blank">Overseas Arrivals and Departures</a> data revealed some very interesting trends.
The number of short-term visitors to Australian shores reached a new record high of 583,600 in May on a seasonally adjusted basis.
The first key point of note today, which has actually been quite evident to me, both in the capital city and up and down the coast, has been the very substantial increase in the number of Chinese visitors to Australian shores. 
It's long been argued by commentators that Australia will become a playground for wealthy Asians.
Not to say that all Chinese visitors are wealthy, of course! 
But what has certainly been the case that there has been a strong and increasing interest in Sydney and Melbourne for $5 million Significant Investor or "Golden Ticket" Visas, with nearly 1,000 applications reportedly now in the queue to be processed in addition to those already dished out (85% of which were issued in Victoria and New South Wales). 
The number of Chinese tourists in May alone hit 66,700 (+5.9% y/y) - which was 11.4% of the total visitors for the month - helping to pump the short-term visitor levels to new heights:
 <img src="https://3.bp.blogspot.com/--gsHtO-E4vQ/U7oxWXGUQFI/AAAAAAAAOWE/fwePpA6uUPc/s1600/Arrivals1.jpg">
The number of long-term arrivals tailed back marginally to a shade under 760,000 on a rolling annual basis, from a peak level of close to 800,000:
 <img src="https://1.bp.blogspot.com/-9D_5bScSZ-0/U7oxX-0yt2I/AAAAAAAAOWY/GWTByl0-Ykg/s1600/arrivals2.jpg">
After accounting for long-term and permanent departures, rolling annual net long term migration came in at just a little over 376,000 in May, which is also down from its most recent peak of approximately 408,000 a year ago:
<img src="https://4.bp.blogspot.com/-HsHrOAudybA/U7oxWUUc7_I/AAAAAAAAOV8/PALex_CKoOo/s1600/Arrivals3.jpg">
Australia's population growth is now accounted for by approximately 60% net long term migration and 40% natural increase. These figures appear to be commensurate with annual population growth tailing back from searing highs of well above 400,000 to slightly more moderate (although still undeniably strong) levels, perhaps somewhere in the 300,000s range in 2014.
 
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
Asian century
The Permanent Movements - Settlers data series showed that significant numbers of today's migrants hail from countries such as the Phillipines, Vietnam, Sri Lanka and Malaysia. From the Middle East, Iraq was another surprisingly strong contributor, at least, to me. 
An interesting point of note is how the number of settlers from New Zealand, and in particular, the United Kingdom, have dropped off dramatically since peaking in January 2009 and February 2008 respectively on a rolling annual basis.
In Britain's case, I'm fairly certain from my own experience that this is in part due to dramatic shifts in the exchange rate caused by the respective fortunes of those economies, and therefore the relative cost of living for Poms in Australia, as I discussed in <a href="https://petewargent.blogspot.com.au/2014/07/currency" target="_blank">this timely post</a>.
For my money, the biggest news of today's data set is explained by the graph below:
<img src="https://4.bp.blogspot.com/-6pk7fLfq3Ok/U7oxWgrwrjI/AAAAAAAAOWA/EfOZeuorEq4/s1600/Arrivals4.jpg">
Note how permanent settlers from both China and India are now tracking at or close to record highs.
Incredibly, approximately one in every eight permanent settlers in Australia hails from China (12.3%), and nearly one in every seven from India (13.7%).
Unevenly spread
The above charts show how clearly Australia has increasingly embraced a "populate or perish" mentality in recent years, and this decade and the next are likely to be noteworthy for the dramatic impact of immigration from Asia.
It's worth noting here though how the population growth differs greatly by state and by region:
<img src="https://4.bp.blogspot.com/-KcPgnQY8UAk/U7oxXf3UhGI/AAAAAAAAOWc/-qaoiH6hynI/s1600/Arrivals5.jpg">
The <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0" target="_blank">Australian Demographic Statistics</a> for the year to December 2013 showed how the New South Wales population increased by a thumping +110,300 in the 2013 calendar year, with the overwhelming majority of that taking place in Greater Sydney.
Many of the highest growth rates are being seen in the inner and middle-ring suburbs if the harbour city, placing a colossal strain on existing infrastructure and housing markets.
This population and labour market growth has occurred, and is occurring, at the expense of nearly every New South Wales regional centre where population growth rates below the national averages have been seen.
On the other hand, net absolute population growth in Tasmania, the Northern Territory, the Australian Capital Territory and South Australia remained fairly minimal in 2013:
<img src="https://3.bp.blogspot.com/-6EzgEBHbvTg/U7oxXrENM-I/AAAAAAAAOWU/_o0bgEAQNdE/s1600/Arrivals6.jpg">
Summary
Population growth in 2014 looks set to be driven more by China and India than ever before, as well as a number of other south-east Asian and far-east Asian countries. 
However, the absolute Australian population growth figure looks to have peaked for this cycle and perhaps may be closer to 300,000 than 400,000 in this calendar year. 
On the face of it this ongoing strong population growth is all great news for property investors.
However, some alarm bells are starting to ring in a number of areas as higher prices and lower interest rates are driving a glut of new supply in some regions.
In particular, certain parts of Melbourne and regional Victoria appear to have worryingly high vacancy rates, as do some parts of regional New South Wales and Queensland.
Moreover, there has been plenty of questinable advice over the last couple of years about investing for high yields in overpriced mining towns.
Yet in some mining locations we now we have the prospect of a potentially devastating trifecta of declining commodity prices, a crunching drop-off in mining construction and a jumping in unemployment in the resources sector.
Each to their own, but personally I'd be giving the one-trick mining towns a very wide berth.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
</body></html>

pwargent-M4siyDbqQY

Lucky 888 Visas take-off and is the housing construction boom still on track?

<html><body>
NSW Treasurer Andrew Constance has confirmed just how much Sydney’s real estate boom is adding to the general fortunes of the state.
The 2014 budget papers show that "a resurgence in the property market has significantly lifted transfer duties in 2013-14". Transfer duty, including stamp duty, contributed $938 million of state budget revenue. This result was seen as a ‘windfall’ and measures to further stimulate the rate of new home construction were also announced in the budget.
The Treasurer also announced that the threshold for the first home buyer $15,000 grant will be boosted to $750,000 – an increase of $100,000. From 1 July 2014, the NSW government will boost the threshold of the First Home Buyers Grant for new homes by $100,000, which means entry level buyers can spend up to $750,000 on a new property.
However extending this to established homes appears to be totally off the agenda given the level of demand and the increased prices over the last six to 12 months. Still, eligibility for the grant will from 1 July 2014 be restricted only to citizens who are permanent Australian residents.
The NSW government has also pledged to freeing up land supply and speeding the delivery of some infrastructure to help boost construction activity.
Property Plays a Big Part in State’s Economy
However when looking at the government’s revenue papers in the budget, it is easy to see how important a robust property market is. But at the same time the extent of revenue from property and some related areas may be placing too great a burden on the sector.
Comments in the budget also underline how relatively volatile, even fragile this revenue stream can be, and so I think it’s worth looking in more detail at some key points. What we can see is how reliant the government is on this revenue and why any move to abolish stamp duty as part of a possible review of state-based tax reforms looks a long way off, if ever, although remaining mortgage duty is being abolished in 2015.
One of the most telling figures in the revenue statement is the comparison between GST revenue and transfer duty. GST revenue in 2014-15 is estimated at $6.094 billion rising to $6.9 billion in 2017-18. By comparison transfer duty revenue in 2014-15 is estimated at $6.095 billiob but is anticipated to rise more than GST to $7.256 billion in 2017-18. On top of which Land Tax will add $2.4 billion – $2.8 billion in the same time frame, while we should not forget the parking space levy set to reach $115 million by 2017-18 and so adding these figures we see that by 2017-18 direct property related revenue for the state will be some $10.24 billion.
The budget papers do point out that the 2013-14 results were expected to increase by 20.5% but in fact the increase looks set to be closer to 35%. Further the current budget anticipated an increased volume of sales at 6% but the final figure was much more at 18%. And residential property prices have increased by some 10% over the past budget period, however those figures are not expected to be maintained, but any slow down is expected to be gentler than previous cycles. And in the four years to 2017-18 the government is expecting a growth rate of 7% over the four years. In today’s market this looks a conservative estimate.
What Has Been Driving These Figures
The Office of State Revenue might be expected to be conservative in its views, however key facts driving the revenue in 2013-14 have, according to the Office, been: historically low interest rates, pent up demand, under supply, improved consumer confidence and of course the obvious big increase in house prices.
When looking at the impact of house prices, the Office points out that activity was initially driven by sales of less than $600,000 but now strong growth in sales of homes valued over $1.2 million is apparent, however the Offices argues that this trend might also mark a peak in the housing cycle.
A Keen Eye Out for Strong Construction Activity
Given the potential of $10 billion in annual revenue by 2017-18 the government is also keen to keep the recovery in new construction on a robust footing. In the December quarter 2013 private sector dwelling approvals were 44% higher than the decade average, as were dwelling commencements while completion were 14% above the decade average.
The hope is that these strong results will continue over the next 4 years, as this appears vital for the health of NSW. However the reality is that the sector and those home buyers paying stamp duty (and that’s the majority) are doing some heavy lifting when it comes to government revenues and any adjustment to the GST needs to address this reality.
</body></html>

pchittenden-eLqUUC8TWW

New South Wales reliant on the property market for revenue

<html><body>
What are we to believe about the state of the mythical national property boom?
We were told it was over, based on the figures for May, but now the data for June suggests it’s still very much still on.
When RP Data rushed out its findings for May, commentators competed to be the first to declare “the boom is over”. It didn’t seem to bother any of them that the boom had been declared to be finished twice before, only to be contradicted by subsequent data from the same source.
Now it’s happened again. June figures show a 1.4% index rise for the combined capital cities. Annualised, that equates to double-digit growth - if you believe the figures.
I’ve been scouring media sources over the past week to read the apologies from all those self-proclaimed analysts who misled the Australian public by declaring the death of something that appears very much alive.
To date, no apology has been forthcoming.
Do they all deem it of no consequence that they grossly misinformed consumers about a matter of considerable importance? Is it just a game they play in the pursuit of publicity? Are they really that shallow and lacking in ethical substance? Apparently so.
In reality, none of these monthly movements in median prices or price indexes mean a damn thing. That is the core message of this latest media fiasco on the state of the mythical property boom.
Monthly movements are meaningless. That is true of house prices, just as it is for retail spending or building approvals or the jobless rate. The graph depicting data on any economic or real estate subject is never smooth. There are always monthly aberrations.
The only thing of any relevance is the longer-term trend.
I’m quite certain most of the people publishing or commenting on real estate data know this to be true. If they do not, they’re incompetent and have no right to put their views into the public arena.
So, why do they do it? Because they don’t care if they misinform and confuse the public, so long as they further the end game - publicity for themselves and their businesses.
They’re shysters, every one of them.
The data for the financial year just ended shows why I term the national property boom “mythical”. The annual figures suggest that only Sydney has had a property boom.
A true national boom is when all - or, at least, most - capital cities plus major regional centres have double-digit price growth.
If we are to believe RP Data, five of the eight capital cities, plus the regions, had annual growth lower than 6% in the 2014 financial year. Only Sydney among the major markets across the nation had double-digit growth.
Brisbane grew 7% and Melbourne about 9%. Solid markets, but not booming ones. Not yet, anyway.
Bogus analysts, including most economists, simply look at the national average figure - 10% in this case - and declare that to mean something: a national boom, or a bubble, and then start looking around for someone to “blame” for runaway house prices across the nation.
The usual suspects are negative gearing, first home buyer grants, foreign investors, property taxes, low interest rates and the equally mythical housing shortage. One commentator recently tied himself in knots trying to construct an argument that other countries’ economic policies were to blame.
The reality is that Sydney’s data has inflated the national figure. The national city average might be 10% but only Sydney has recorded growth that big.
Some of those analysts know no better. They look at a graph on their computer screen, which is the extent of their knowledge of real estate matters, and pontificate about the “national property market”.
Others do know better but are too lazy or dishonest to put together a thoughtful and thorough analysis.
As a result, the great seething mass of misinformation grows larger by the day.
</body></html>

terryryder-YECXbqmri2

Latest media fiasco shows exactly why monthly movements are meaningless

<html><body>
A preliminary weighted average clearance rate of 69.4% was recorded this week across capital cities compared to 66.6% last week and 65.1% this time last year.
Prior to this weekend the national year to date clearance rate was 67.3%. This is very healthy compared to the 63.2% recorded last year and in 2012 when less than half of all auctions resulted in sales when the clearance rates was 49.1%.
<img class="aligncenter size-large wp-image-3456" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Capital-city-580x423.jpg" alt="RP Data national auction update" width="580" height="423">
This week a preliminary clearance rate of 74.6% was recorded in Sydney, a significant rise on the 71.1% last week.
<img class="aligncenter size-large wp-image-3457" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Sydney-580x383.jpg" alt="RP Data Sydney auction update" width="580" height="383">
In Melbourne there was a preliminary clearance rate of 68.4% recorded compared to 68.3% last week. The Melbourne market has been delivering very consistent results for sellers in the past four weeks.
<img class="aligncenter size-large wp-image-3458" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Melbourne-580x380.jpg" alt="RP Data Melbourne auction update" width="580" height="380">
In Brisbane a preliminary clearance rate of 59.3% was recorded compared to 42.2% last week.
Adelaide recorded a clearance rate of 75.6% compared to 62.7% last week.
In Canberra a clearance rate of 48.4% was recorded and in Perth there was a clearance rate of 52.6%.
In Tasmania two auctions resulted in sales from the six held.
<img class="aligncenter size-large wp-image-3459" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Brisbane-580x383.jpg" alt="RP Data Brisbane auction update" width="580" height="383"><a href="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Brisbane.jpg" rel="wp-prettyPhoto[g3455]"> </a>
<img class="aligncenter size-large wp-image-3460" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140706-Adelaide-580x382.jpg" alt="RP Data Adelaide auction update" width="580" height="382">
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News