<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>


Joel Robinson

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

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366760]</p>

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366769]</p>

<p>A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.</p>

<p>“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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366762]</p>

<p>The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=95289]</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=13181 project_image_fid=348530]</p>

<p>For Fortis, that combination of location and scale was what made the site unique.</p>

<p>"<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.</p>

<p>"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."</p>

<p>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.</p>

<p>"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=13181 project_image_fid=348533]</p>

<p>The emphasis on walkability has also resonated with buyers.</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=13181 project_image_fid=348549]</p>

<p>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.</p>

<p>Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.</p>

<p>"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.</p>

<p>"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."</p>

<p>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;</p>

<p>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;</p>

<p>Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.</p>

<p>[smartcode_project_cta:default project_id=13181]</p>


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>

<p data-end="859" data-start="714">Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.</p>

<p data-end="1044" data-start="861">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.</p>

<p data-end="1317" data-start="1046">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.</p>

<p data-end="1317" data-start="1046"><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" /></p>

<p data-end="1507" data-start="1319">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.</p>

<p data-end="1806" data-start="1509">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.</p>

<p data-end="1965" data-start="1808">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.</p>

<p data-end="2278" data-start="1967">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.</p>

<p data-end="2457" data-start="2280">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.</p>

<p data-end="2457" data-start="2280">[smartcode_project:default project_id=147777 project_image_fid=319846]</p>

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

<p data-end="2595" data-start="2520">Celeste would take a different form to the twin 19-storey buildings at SOL.</p>

<p data-end="2767" data-start="2597">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.</p>

<p data-end="3095" data-start="2769">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.</p>

<p data-end="3351" data-start="3097">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.</p>

<p data-end="3351" data-start="3097"><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" /></p>

<p data-end="3577" data-start="3353">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.</p>

<p data-end="3751" data-start="3579">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.</p>

<p data-end="4049" data-start="3753">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.</p>

<p data-end="4158" data-start="4051">The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.</p>

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

<p data-end="4301" data-start="4204">Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.</p>

<p data-end="4580" data-start="4303">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.</p>

<p data-end="4752" data-start="4582">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.</p>

<p data-end="4993" data-start="4754">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.</p>

<p data-end="5063" data-start="4995">Celeste now provides the clearest indication yet of what comes next.</p>

<p data-end="5303" data-start="5065">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.</p>

<p data-end="5656" data-start="5532">For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.</p>

<p data-end="5986" data-start="5658">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.</p>

<p data-end="6204" data-is-last-node="" data-is-only-node="" data-start="5988">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.</p>


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

<p data-end="294" data-section-id="19m9s1w" data-start="191">For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make</p>

<p data-end="477" data-start="296">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?</p>

<p data-end="947" data-start="479">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.</p>

<p data-end="1099" data-start="949">As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.</p>

<p data-end="1490" data-start="1101">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.</p>

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

<p data-end="1593" data-start="1521">Most Australians are familiar with independent ratings in everyday life.</p>

<p data-end="1748" data-start="1595">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.</p>

<p data-end="1930" data-start="1750">Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.</p>

<p data-end="1979" data-start="1932">That gap is what iCIRT was designed to address.</p>

<p data-end="2559" data-start="1981">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.</p>

<p data-end="2822" data-start="2561">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>.</p>

<p data-end="3082" data-start="2824">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.</p>

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

<p data-end="3254" data-start="3128">For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.</p>

<p data-end="3388" data-start="3256">It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.</p>

<p data-end="3773" data-start="3390"><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.</p>

<p data-end="3837" data-start="3775">That doesn't mean buyers should rely on a single rating alone.</p>

<p data-end="3978" data-start="3839">Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.</p>

<p data-end="4092" data-start="3980">However, an independent assessment can provide another source of information alongside those traditional checks.</p>

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

<p data-end="4188" data-start="4140">The conversation isn't only changing for buyers.</p>

<p data-end="4296" data-start="4190">Developers are also recognising that trust has become an increasingly important part of the sales process.</p>

<p data-end="4389" data-start="4298">Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.</p>

<p data-end="4538" data-start="4391">Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.</p>

<p data-end="4734" data-start="4540">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.</p>

<p data-end="4910" data-start="4736">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>.</p>

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

<p data-end="5049" data-start="4964">The influence of independent construction ratings is also extending beyond consumers.</p>

<p data-end="5281" data-start="5051">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.</p>

<p data-end="5612" data-start="5283">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.</p>

<p data-end="5770" data-start="5614">As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.</p>

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

<p data-end="5855" data-start="5803">Victoria's apartment market is entering a new phase.</p>

<p data-end="6014" data-start="5857">The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.</p>

<p data-end="6131" data-start="6016">For buyers, that means there are more tools available than ever before to research the businesses behind a project.</p>

<p data-end="6261" data-start="6133">For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.</p>

<p data-end="6464" data-start="6263">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.</p>

<p data-end="6464" data-start="6263">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>.</p>

<hr data-end="6469" data-start="6466" />
<p data-end="6861" data-start="6471"><em data-end="6861" data-start="6471">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.</em></p>

<p data-end="7088" data-start="6863"><em data-end="7088" data-start="6863">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.</em></p>

<p data-end="7191" data-start="7090"><em data-end="7191" data-start="7090">Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.</em></p>


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

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


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

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

<p>The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.</p>

<p>While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.</p>

<p>It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.</em></p>


Every First Home Owner Grant for new property by state

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


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

Staff Writer

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

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


alisonwarters@gmail.com

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

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


Ellen Walker

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

<html><body>
<p><em>Property Observer</em> has looked at the highest, lowest and average interest rates on CANSTAR’s database for home loans, term deposits and credit cards.</p>
<p><span>Their research manager, Mitchell Watson said</span><span> there were virtually no changes to home loan interest rates over the past week.</span></p>
<p><span>"Nor have there been any changes to term deposit rates.</span></p>
<p><span>“Mortgage holders in particular can still save significant money though by being aware of the interest rate they are being charged and what else is available.</span></p>
<p><span>"Currently on CANSTAR’s database there is a 1.85% difference between the highest and lowest standard variable home loan rate.</span></p>
<p><span>"On a $400,000 mortgage over a 25-year term, that potentially equates to around $440 in additional repayment cost per month.</span></p>
<p><span>"Even the difference between the average and lowest is around $210 per month.</span></p>
<p>"Th<span>ere are also some very competitive fixed-term deals, with offers as low as 3.95% for one year fixed and 5.30% for five-year fixed," said Watson.</span></p>
<p>Here is a rundown of the current state of the interest rate market.</p>
<p><strong>Home Loans</strong></p>
<p><img src="/images/2014/07/01/table-july-1-one.gif" alt=""></p>
<p><strong>Term Deposits</strong><span style="line-height: 1.3em;"> </span></p>
<p><strong style="line-height: 1.3em;"><br><img src="/images/2014/07/01/table-july-1-two.gif" alt=""></strong></p>
<p><em>Source: <a href="https://www.canstar.com.au" target="_blank">www.canstar.com.au</a>.  Rates on the CANSTAR database as at 30/6/2014, based on a deposit amount of $250,000.</em></p>
<p><strong style="line-height: 1.3em;">Credit cards</strong><strong style="line-height: 1.3em;"><em> </em></strong><em><br></em></p>
<p>Credit card interest rates remain stubbornly high compared to the official cash rate. Overall, the credit card products surveyed are as follows:</p>
<p><strong style="line-height: 1.3em;">Low rate</strong></p>
<p><img src="/images/2014/07/01/table-july-1-three.gif" alt=""></p>
<p><strong><strong>Standard</strong><br><img src="/images/2014/07/01/table-july-1-four.gif" alt=""><br></strong></p>
</body></html>

jchancellor-FAypfDUnLy

A 1.85% difference on standard variable home loans

<html><body>
<p>Property investors feel the effects of interest rate changes just as much as home owners do, although that impact may be disguised in the short-term by negative gearing.</p>
<p>Investors receive a tax deduction on mortgage interest expenses, so paying more interest on an investment property loan may not seem as bad as when rates rise on the loan that funds the family home. A bigger interest bill means a bigger tax deduction, after all.</p>
<p>But interest rate increases do hit the bottom line of investment returns. Higher costs, without accompanying rent increases, reduce the income the investor receives each year. This means the investment must achieve a higher capital gain to produce the same total return.</p>
<p>Accounting firm, HLB Mann Judd has crunched some numbers for <em>Property Observer</em> that demonstrate the effect of interest rate rises on a fairly typical property investment.</p>
<p>The property in the example is worth $465,000 and achieves a weekly rent of $400. An investor buys the property with a loan of $418,500 (having paid for 10% of the property in cash). The mortgage is taken over 25 years with monthly repayments. In the example, the investor has decided to repay the principal as well as interest.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Loan details</h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Property Value</h5>
</td>
<td valign="top" nowrap width="130">
<h5 style="text-align: right;">$465,000</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Loan Amount</h5>
</td>
<td valign="top" nowrap width="130">
<h5 style="text-align: right;">$418,500</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Rate</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">5.1%</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Term of Loan (years)</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">25</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Repayment Frequency</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">Monthly</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The property generates an annual rental income of $20,800 and there are no periods of vacancy throughout the year.</span></p>
<p>Annual expenses total $6,306.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="177">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5> </h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5>Rental income (at $400/wk)</h5>
</td>
<td valign="top" nowrap width="94">
<h5>$20,800</h5>
</td>
<td valign="top" nowrap width="208">
<h5>Strata Levies ($470/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,880</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Council Rates ($270/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,080</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Water Rates ($160/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$640</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Management Fees (5.8%)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,206</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Repairs &amp; Maintenance</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,000</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Landlord Insurance Premium</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$500</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5> </h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5>Total Income</h5>
</td>
<td valign="top" nowrap width="94">
<h5>$20,800</h5>
</td>
<td valign="top" nowrap width="208">
<h5>Total Expenses</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$6,306</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 5.1%</strong></p>
<p>In the first case, the interest rate on the loan is the Reserve Bank of Australia’s indicator rate for a discount variable mortgage, current as of May 2014, of 5.1%.</p>
<p>At that rate, the investor pays $2,471 a month for the mortgage, or $29,651 over the year. This comprises of $21,147 in interest and $8,505 in principal repayments.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments (at 5.1%)</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,471</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$29,651</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$21,147</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$8,505</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$741,286</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$322,786</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">That means the property generates a taxable loss of $6,653 for the year. Taking into account the principal repayments, the property has generated an annual cash loss of $15,158.</span></p>
<p>The principal has reduced by $8,505 so there is $409,995 outstanding on the mortgage.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$21,147</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,653</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$8,505</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$15,158</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 5.6%</strong></p>
<p>Say the interest rate was 0.5 percentage points higher at 5.6%, while rent and other expenses on the property remain the same.</p>
<p>Repayments on the loan are $2,595 a month, or $31,140 over the year. The amount of interest paid increases to $23,235 for the year. However, the amount that is repaid off the principal reduces to $7,905.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,595</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$31,140</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$23,235</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$7,905</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$778,503</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$360,003</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The annual taxable loss on the property increases to $8,742. The total cash loss is $16,647 and there is still $410,595 outstanding on the mortgage.</span></p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$23,235</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$8,742</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$7,905</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$16,647</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 6.1%</strong></p>
<p>If the mortgage interest rate was higher again, at 6.1%, repayments on the loan would go up to $32,664 for the year.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,722</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$32,664</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$25,326</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$7,339</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$816,612</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$398,112</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The taxable loss for the year would be $10,832 and the cash loss, after principal repayments would be $18,171. Just $7,339 would have been paid off the principal, leaving a $411,161 outstanding on the mortgage.</span></p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$25,326</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$10,832</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$7,339</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$18,171</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">After tax comparison</strong></p>
<p>In the first example, the investor made a taxable loss of $6,653 and ended the year with $409,995 outstanding on the mortgage.</p>
<p>Let’s assume the investor’s annual taxable income (from employment and other sources) is $100,000. In the example where interest rates were 5.1%, the taxable loss on the property reduces the investor’s taxable income to $93,347 for the year, cutting the investor’s tax liability for the year by $2,462 and leaving them with an after-tax income of $70,862.</p>
<p>That means the after-tax cost of the investment (not including the principal repaid) is $4,191 and the total after-tax cash loss including the principal repaid is $12,696.</p>
<p>In the second example, the investment’s after-tax cost is $5,507 and the total after-tax cash loss is $13,412. The investor is $1,316 worse off at the end of the year in this case than if the interest rate was 0.5 percentage points lower.</p>
<p>In the third example, the after-tax cost is $6,824 and the cash loss after tax is $14,163. The investor is $2,633 worse off at the end of the year than when the interest rate was 5.1%.</p>
<p>Interest rate changes have a real impact on the returns from investment properties. To recoup higher interest charges, investors have a choice to increase rent, cut costs elsewhere (which might not be practical or possible), or cross their fingers for greater capital gains to compensate.</p>
</body></html>

zfielding-GvX3Uq9KTa

Negative gearing disguises short-term impact of rate changes on investors

<html><body>
<p>New South Wales has topped the dominated the prestige market again this week, taking out with seven of the top 10 sales located in Sydney according to <a href="https://www.myrpdata.com/" target="_blank">RP Data</a>. </p>
<ol>
<li>
<strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/71_bay_street_double_bay_nsw_2028/2116749">71 Bay Street, Double Bay, NSW</a></strong><br><p><img src="/images/2014/07/01/a.jpg" alt=""><br><br>Judit Korner, of the Madame Korner beauty empire, <a href="/news/madame-korner-sells-longtime-double-bay-home">sold her five bedroom house</a> (pictured above) opposite Steyne Park for $7.2 million at auction through Richardson &amp; Wrench Double Bay. </p>
<p>The home is set on a 765 square metre block with dual street entrance, through a private road. Her late husband, George Korner, bought the home for £22,000.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3/18-20_coast_avenue_cronulla_nsw_2230/2011079">3/18 Coast Avenue, Cronulla, NSW</a></strong></p>
<p><img src="/images/2014/07/01/b.jpg" alt=""><br><br>A whole floor, four-bedroom apartment sold prior to auction through Highland Property Agents Cronulla for $5.202 million. Located in the four-apartment COAST development, the apartment has an ocean front balcony and ocean views from several rooms.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/34_kennedy_street_glen_waverley_vic_3150/11086112">34 Kennedy Street, Glen Waverley, VIC</a></strong></p>
<p><span style="line-height: 1.3em;"><img src="/images/2014/07/01/c.jpg" alt=""><br><br>This house in Melbourne’s eastern suburbs sold at auction through JRW Property International Glen Waverley for $3.2 million. Set on a 755 square metre plot, the home has six large bedrooms, five bathroom, with a tiered theatre room and home office. The vendors purchased the home for $909,800 in March last year. In March 2011, it was advertised to rent for $425 per week.</span></p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/7_kywong_avenue_pymble_nsw_2073/5641743">7 Kywong Avenue, Pymble, NSW</a></strong></p>
<p><img src="/images/2014/07/01/d.jpg" alt=""><br><br>A double storey, six-bedroom house secured $3.0 million when sold through Burns &amp; Burns Real Estate after 25 days on the market. It was purchased by the vendors for $2.3 million in September 2003. The home has substantial al fresco dining space and a pool with spa.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/71_henley_marine_drive_rodd_point_nsw_2046/5901661">71 Henley Marine Drive, Rodd Point, NSW</a></strong></p>
<p><img src="/images/2014/07/01/e.jpg" alt=""><br><br>This four-bedroom contemporary house sold through Raine &amp; Horne Five Dock for $3.0 million. The house, with uninterrupted views of Iron Cove Bay, has European Oak flooring throughout. It was purchased by the vendor in March 2011, for $1.35 million.  </p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/21_dock_road_birchgrove_nsw_2041/1445052">21 Dock Road, Birchgrove, NSW</a></strong></p>
<p><span><img src="/images/2014/07/01/f.jpg" alt=""><br><br>A three-bedroom terrace house sold through Belle Property Balmain for $2.735 million. The Victorian era house, with views over Mort Bay to the city and Harbour Bridge has a contemporary renovated interior. The sellers bought the house for $2.38 million in September 2010.</span></p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/16_abbott_street_balgowlah_heights_nsw_2093/1228594">16 Abbott Street, Balgowlah Heights, NSW</a></strong></p>
<p><img src="/images/2014/07/01/g.jpg" alt=""></p>
<p>McGrath Estate Agents sold this home for $2.58 million this week. The art deco inspired home was built four years ago. Outside, there is a solar heated pool, cabana, lawn and covered entertaining area. There is also a rooftop entertaining area, with panoramic views from Middle Harbour to Manly. The land and former house was purchased for $1.2 million in 2007.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/145_ryan_street_west_end_qld_4101/8214696">145 Ryan Street, West End, QLD</a></strong></p>
<p> <img src="/images/2014/07/01/h.jpg" alt=""></p>
<p>The only Queensland home on the top 10 list is a four-bedroom house, sold through Place Bulimba for $2.475 million. The three level house, designed by John Mainwaring, is set on 582 square metres of riverfront land. The land was originally purchased in 1985 for just $95,000, and was transferred to the couple’s daughter for $600,000 in 2011.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/9_vista_avenue_kew_vic_3101/11357589">9 Vista Avenue, Kew, VIC</a></strong></p>
<p> <img src="/images/2014/07/01/j.jpg" alt=""></p>
<p>A 1930s era, English inspired home on a cul de sac sold at auction by Kay &amp; Burton Hawthorn for $2.431 million. The agents advertised the house in Melbourne’s private school heartland as “just moments from Genazzano College”. The four bedroom, two bathroom house was purchased for $785,000 in 2006, with the vendors more than tripling their purchase price in eight years.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61b_shadforth_street_mosman_nsw_2088/4504813">61B Shadforth Street, Mosman, NSW</a></strong></p>
<p><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61b_shadforth_street_mosman_nsw_2088/4504813"><img src="/images/2014/07/01/k.jpg" alt=""></a></p>
<p>This four-bedroom house was auctioned by Vernon Partners Mosman, securing $2.39 million. The 1930s era home was purchased is within walking distance of the ferry, Mosman Prep and Queenwood Junior School. The vendors purchased it in 1997 for $665,000.</p>
</li>
</ol>
</body></html>

jrichardson-uRX5hFdKfN

The 10 most expensive sales this week: RP Data

<html><body>
<p>Hindmarsh, a national property development company, has launched Zest, a Brisbane project in the Kelvin Grove Urban Village precinct that will bring 144 apartments to market.</p>
<p>Each apartment will have either an outdoor courtyard or a balcony with a 600 square metre rooftop terrace and views to the city. The <a href="https://zestkelvingrove.com.au/" target="_blank">Zest development</a> spans over 15 levels and is designed by NettleTribe. Twelve of the levels will be residential.</p>
<p>The 60 one-bedroom apartments are priced from $320,000, with 84 two-bedroom apartments from $375,000.</p>
<p>This comes as the cheaper option to CS Developments’ Kelvin Grove offering, Victoria Park Residences, with <a href="/news/kelvin-grove-to-welcome-cs-developments-third-project-victoria-park-residences">one-bedroom apartments from $343,000 and two-bedroom apartments from $469,000</a> – however, they are notably larger offerings.</p>
<p>A rooftop terrace will also be built in Zest including a seating area, BBQ facilities and an open-air pool.</p>
<p>Kelvin Grove’s Evoque development was <a href="/news/qld/no-gym-and-no-pool-a-selling-point-for-kelvin-grove-s-evoque">using the fact they had “no pool” as a selling point in February</a>.</p>
<p>Hindmarsh Queensland development manager Bill McClanachan said that the project includes glass balustrades and textured pre-cast panels.</p>
<p>“Zest has been designed to offer a modern, easy and convenient inner city lifestyle,” said McClanachan. </p>
<p>“We have already received more than 60 expressions of interest from both investors and owner occupiers so the value and design appeal of Zest is evident,” he said.</p>
<p>It will include one and two bedroom apartments ranging from 50 to 82 square metres internally.</p>
<p>“Landscaping and a street-side park at the base of the building will create a restful fringe of green and enhance the outlook from the upper level balconies and podium-level apartment courtyards,” he said.</p>
<p>The apartments have been designed with the aim of keeping body corporate power bills lower, using sunshading, fresh air flows, thermal massing and glazing, with each apartment serviced by individually-metered gas hot water.</p>
<p>“Quality carpets throughout the bedrooms combine with the generous living and dining areas to give a feeling of comfort, while the expansive windows and glass doors to the balconies drench the rooms in natural light. When night falls, feature LED lighting in kitchens and bathrooms adds an energy-efficient touch of style,” he explained.</p>
<p> All the apartments are cabled for wireless broadband, Pay TV, free to air HD digital TV, regular telephones and include TV, data and phone points installed to both living areas and the main bedroom.</p>
<p>It includes two levels of retail and commercial space, as well as a suspended level of parking and two basement levels.</p>
<p>The project launches on 5 July. It will be on the corner of Musk Avenue and Carraway Street.</p>
<p>According to the project’s marketing, Zest has the potential for “long-term capital gain” with prices outstripping the Brisbane average previously.</p>
<p>In Kelvin Grove, a notable 60% of the population rent, median rental yields throughout 2013 sat at 4.24% and rents increased by a median of 3.15% in the past 12 months. According to RP Data, the <a href="/news">median unit price in Kelvin Grove</a> is $499,475, with median advertised weekly rent of $450.</p>
<p><em>Correction: The photo accompanying this article has been updated since publication. The initial photo featured another development project in the same suburb.</em></p>
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jduke-EHk3XBmHkn

National developer launches 144-apartment Zest in Brisbane

<html><body>
<p>Victoria's auction clearance rate decreased to 74.6% for June, down from 75.4% in May.</p>
<p>For June, the strongest region was Melbourne's Outer East. Data from the Real Estate Institute of Victoria (REIV) shows that the area had a June clearance rate of 82.7%, up from May's result of 80.5%.</p>
<p>The weakest auction results were recorded in the West, where only 65.1% of homes auctioned in June sold at auction. The previous month's result was slightly better, with a clearance rate of 65.3%.</p>
<p>The biggest monthly improvement (on a percentage point basis) was recorded in North. There, the May clearance rate was 67.5%. In June, 73.6% of homes auctioned sold at auction. Victoria's North East region saw the largest drop, with the clearance rate falling from 78.4% to 72.5%. </p>
<p>This weekend saw strong clearance rates in Victoria, with all regions except the North and West recording a higher proportion of auction sales than were recorded at the same time last year. The total clearance rate for this weekend (29 June) was 75.0%. </p>
<table style="width: 460px;" border="0"><tbody>
<tr>
<td>
<h6>Region</h6>
</td>
<td>
<h6>June clearance rate</h6>
</td>
<td>
<h6>May clearance rate</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner Urban</h6>
</td>
<td>
<h6>73.2%</h6>
</td>
<td>
<h6>77.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner East</h6>
</td>
<td>
<h6>78.1%</h6>
</td>
<td>
<h6>78.8%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner South</h6>
</td>
<td>
<h6>75.0%</h6>
</td>
<td>
<h6>78.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>South East</h6>
</td>
<td>
<h6>72.3%</h6>
</td>
<td>
<h6>72.2%</h6>
</td>
</tr>
<tr>
<td>
<h6>Outer East</h6>
</td>
<td>
<h6>81.8%</h6>
</td>
<td>
<h6>80.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>North East</h6>
</td>
<td>
<h6>72.5%</h6>
</td>
<td>
<h6>78.4%</h6>
</td>
</tr>
<tr>
<td>
<h6>North</h6>
</td>
<td>
<h6>71.3%</h6>
</td>
<td>
<h6>67.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>West</h6>
</td>
<td>
<h6>65.8%</h6>
</td>
<td>
<h6>65.3%</h6>
</td>
</tr>
</tbody></table>
<p>This weekend's clearance rates by region, from <a href="https://www.reiv.com.au/" target="_blank">REIV</a>:</p>
<table style="width: 460px; height: 218px;" border="0"><tbody>
<tr>
<td>
<h6>Region</h6>
</td>
<td colspan="3">
<h6>29 June 2014</h6>
</td>
<td colspan="3">
<h6>30 June 2013</h6>
</td>
</tr>
<tr>
<td>
<h6> </h6>
</td>
<td>
<h6>Weekend Total</h6>
</td>
<td>
<h6>Sold</h6>
</td>
<td>
<h6>%Sold</h6>
</td>
<td>
<h6>Weekend Total</h6>
</td>
<td>
<h6>Sold</h6>
</td>
<td>
<h6>%Sold</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner Urban</h6>
</td>
<td>
<h6>28</h6>
</td>
<td>
<h6>22</h6>
</td>
<td>
<h6>79.0% </h6>
</td>
<td>
<h6>24</h6>
</td>
<td>
<h6>18</h6>
</td>
<td>
<h6>75.0%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner East</h6>
</td>
<td>
<h6>17</h6>
</td>
<td>
<h6>14 </h6>
</td>
<td>
<h6>82.0%</h6>
</td>
<td>
<h6>31</h6>
</td>
<td>
<h6>22 </h6>
</td>
<td>
<h6>71.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>Inner South</h6>
</td>
<td>
<h6>10</h6>
</td>
<td>
<h6> 9</h6>
</td>
<td>
<h6>90.0%</h6>
</td>
<td>
<h6>4 </h6>
</td>
<td>
<h6>2 </h6>
</td>
<td>
<h6>50.0%</h6>
</td>
</tr>
<tr>
<td>
<h6>South East</h6>
</td>
<td>
<h6>78 </h6>
</td>
<td>
<h6>55 </h6>
</td>
<td>
<h6>71.0% </h6>
</td>
<td>
<h6>80</h6>
</td>
<td>
<h6>54</h6>
</td>
<td>
<h6>68.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>Outer East</h6>
</td>
<td>
<h6>118</h6>
</td>
<td>
<h6>102</h6>
</td>
<td>
<h6>86.0% </h6>
</td>
<td>
<h6>97</h6>
</td>
<td>
<h6>77 </h6>
</td>
<td>
<h6>79.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>North East </h6>
</td>
<td>
<h6>34</h6>
</td>
<td>
<h6>29 </h6>
</td>
<td>
<h6>85.0% </h6>
</td>
<td>
<h6>39 </h6>
</td>
<td>
<h6>29 </h6>
</td>
<td>
<h6>74.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>North</h6>
</td>
<td>
<h6>48</h6>
</td>
<td>
<h6>38 </h6>
</td>
<td>
<h6>79.0%</h6>
</td>
<td>
<h6>37</h6>
</td>
<td>
<h6>32 </h6>
</td>
<td>
<h6>86.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>West </h6>
</td>
<td>
<h6>74 </h6>
</td>
<td>
<h6>46 </h6>
</td>
<td>
<h6>62.0% </h6>
</td>
<td>
<h6>63</h6>
</td>
<td>
<h6>44 </h6>
</td>
<td>
<h6>70.0% </h6>
</td>
</tr>
</tbody></table>
</body></html>

Victoria's auction clearance rates down for June: REIV

<html><body>
<p>It's the end of financial year, and here's how RP Data's much loved Daily Home Value Index finished up very strongly for the month of June, after 'falling' in May.</p>
<p>The best performing major capital city market over FY14 was, unsurprisingly, Sydney (+15.5%), actually tracking just a shade ahead of our forecasts for the calendar year to date. </p>
<p>The weakest performing capital city market of those covered by the index was Adelaide (+2.9%), where prices were recorded as being down over Q2, despite interest rates near record lows. </p>
<p>And the rest of the cities, erm, well, somewhere in between:</p>
<div class="separator"><a href="https://2.bp.blogspot.com/-pAd_TLLatJs/U7FGyWJzPMI/AAAAAAAAOKo/mhszokKu7F4/s1600/RPDJune2014.jpg"><img src="https://2.bp.blogspot.com/-pAd_TLLatJs/U7FGyWJzPMI/AAAAAAAAOKo/mhszokKu7F4/s1600/RPDJune2014.jpg"></a></div>
<div>RP's index is a useful enough indicator over time, but not a reporting tool to take too literally on a day-to-day, or even month-to-month basis.</div>
<p><span>Over the past quarter, the index has shown moderate gains for Sydney (+1.14%), Brisbane (+0.83%) and Perth (+0.62%), and declines in Melbourne and Adelaide.</span></p>
<p><span>The most likely outcome for H2 appears to be continued moderate price increases in all of the major capital cities, with ongoing headwinds in Canberra, and perhaps Hobart.</span></p>
<p>It's been a great year for creating wealth, largely thanks to ongoing low interest rates which continue to drive capital away from fixed interest products and into shares and property. I wrote yesterday whether shares of property has been a better bet over the past 10 to 20 years.</p>
<p>This past year, as usual, some people would have lost money on the share markets through chasing fast returns.</p>
<p>But had you simply held the XJO (ASX 200) index you'd be on track for a very smart +14% annual return even before dividend payments are thrown in. </p>
<p>Adding in the dividend component, annual returns would be approaching +19%.</p>
<p>As it transpired, all of the share market uplift was in the first half of the financial year.</p>
<div><img src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=D12&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=2014062716185457" width="400" height="275"></div>
<p>All of which, by the way, all comes off the back of a romping +20% gain in the 2013 financial year.</p>
<p>These are the best back to back gains that have been seen since the heady pre-financial crisis days.</p>
<p>Meanwhile, Australian property prices are up by around +10% in the past year too, with Sydney comfortably leading the way.</p>
<p><a href="https://www.news.com.au/finance/real-estate/sydney-unit-market-set-to-rise/story-fnd91nhy-1226944060822" target="_blank">BIS Shrapnel</a> recently came out with a paper which stated that the Sydney apartment market boom has plenty of gas left in the tank, predicting another +15% of capital gains in the next two years.</p>
<p>We tend to agree that certain parts of the Sydney market will likely keep rising in price until interest rates do.<span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;">We won't be right all the time, of course, and since property markets are illiquid, the timings of market movements are much harder to predict than they may appear.</span></p>
<p><span style="line-height: 1.3em;">But we'll never be wrong through lack of research.</span></p>
<p><span style="line-height: 1.3em;">Our extensive chart packs which track hundreds of metrics and are updated daily (and not only for Australia, but also for the US, UK, Europe and China) would not allow it.</span></p>
<p><span style="line-height: 1.3em;">For example, we could never have predicted an Adelaide property boom over the last five or six years as many experts have, because every metric - population growth, jobs growth, the unemployment rate, household formation, interstate migration, GSP, State Final Demand, private new capex, real wages growth, building approvals, housing finance, investor loan finance...everything - told a different story.</span></p>
<p><span style="line-height: 1.3em;">And that still continues. </span></p>
<p><span style="line-height: 1.3em;">When RP Data releases its June 2014 figures later this week, it will record dwelling price declines of around -0.5% for Adelaide in Q2.</span></p>
<p><span style="line-height: 1.3em;">On the flip side, I was comfortable calling out Sydney as the standout capital city market </span><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Get-a-Financial-Grip/968/productview.aspx" target="_blank" style="line-height: 1.3em;">in my book</a><span style="line-height: 1.3em;">, even after Keen had predicted a 40% crash, because the data suggested that the market fundamentals were strong.</span></p>
<p><span style="line-height: 1.3em;">If market consensus is right, the ABS series will confirm that Sydney dwelling prices are up by around +47% over the past five years:</span></p>
<div><a href="https://2.bp.blogspot.com/-nnQBABXlP3o/U7Covlw1XbI/AAAAAAAAOJg/COjU3wcqNd4/s1600/ABSSydney.jpg"><img src="https://2.bp.blogspot.com/-nnQBABXlP3o/U7Covlw1XbI/AAAAAAAAOJg/COjU3wcqNd4/s1600/ABSSydney.jpg"></a></div>
<p><a href="https://2.bp.blogspot.com/-nnQBABXlP3o/U7Covlw1XbI/AAAAAAAAOJg/COjU3wcqNd4/s1600/ABSSydney.jpg"></a>Past of the problem with a lot of (most) Aussie property market commentary is that it comes from the point of vested interest i.e. "I own a property here, so it must always be referred to as a great location to invest."</p>
<p><span style="line-height: 1.3em;">We've seen a lot of this with regards to some very ordinary regional centres and even some capital cities over the past half decade, and it appears likely that there will be more of it to come with regards to several mining towns as the resources construction boom turns to bust.</span></p>
<p><span style="line-height: 1.3em;">The awesome thing about comprehensive chart packs which are updated daily is that, whether you like it or not, they force you to change your opinions as the outlook shifts. </span><span style="line-height: 1.3em;">You can't easily ignore reversing trends when </span><span style="line-height: 1.3em;">the daily data sets give it to you straight between the eyes.</span><span style="line-height: 1.3em;"> </span></p>
<p class="post-body entry-content"><strong style="line-height: 1.3em;">New home sales plateau</strong></p>
<p class="post-footer"><a href="/expert-insights/buying/current-cycle-peak-concerns-as-new-home-sales-down-for-first-time-in-2014-hia">New home sales slipped in May</a> for the first time in 2014, down by 4% on the month, suggesting that investment in new housing may be set to plateau.</p>
<p class="post-footer">Sales of detached new houses were still up by a very healthy +5.7 quarter on quarter, but this was offset by falls in multi-unit sales in the month, which declined quite sharply to be down by -5.2% quarter on quarter.</p>
<p class="post-footer">Notably, and concerningly, the HIA cited a "shortage of titled land in Sydney and Perth", which will continue to put upwards pressure on those two housing markets, especially since they both have very heavy population growth numbers:</p>
<div class="separator"><a href="https://3.bp.blogspot.com/-w3crXLyyWFo/U7DMoU73VmI/AAAAAAAAOKY/CkX8DXEvnog/s1600/HIA.jpg"><img src="https://3.bp.blogspot.com/-w3crXLyyWFo/U7DMoU73VmI/AAAAAAAAOKY/CkX8DXEvnog/s1600/HIA.jpg"></a></div>
<p class="post-footer"><em>Source: HIA</em></p>
<p class="post-footer">New dwelling sales fell again by another 6% this month in South Australia, down to just 490 in the month of May.</p>
<p class="post-footer">A weak market, where city dwelling prices declined in Q2.Yesterday's release from the Housing Industry Association (HIA) appears to be consistent other recent data sets - including softening building approvals, and construction finance for owner occupiers which seemingly hit a peak back in March 2014:</p>
<p class="post-footer"><img src="https://4.bp.blogspot.com/-buq9F4meLFE/U7DJ_Fo13FI/AAAAAAAAOKE/F9MxlL3ngbI/s1600/CFOO.jpg" style="line-height: 1.3em;"></p>
<p class="post-footer"><span>Housing finance for construction investment actually peaked in February 2014:</span></p>
<div class="post-footer">
<p class="separator"><a href="https://2.bp.blogspot.com/-EbBZ9p2_ovA/U7DKWqCmjdI/AAAAAAAAOKM/8MNG3H5Ggxc/s1600/CFI.jpg"><img src="https://2.bp.blogspot.com/-EbBZ9p2_ovA/U7DKWqCmjdI/AAAAAAAAOKM/8MNG3H5Ggxc/s1600/CFI.jpg"></a></p>
<p><strong>Established stock under pressure from investors</strong></p>
<p>However, a closer look at the more timely <a href="https://www.rba.gov.au/statistics/frequency/fin-agg/2014/fin-agg-0514" target="_blank">Financial Aggregates data</a> from the Reserve Bank, tells a slightly different story:</p>
<p class="separator"><a href="https://2.bp.blogspot.com/-NMbQV-4COEw/U7DIYvsLcvI/AAAAAAAAOJ4/bGRleRzJ_WU/s1600/RBAFA.jpg"><img src="https://2.bp.blogspot.com/-NMbQV-4COEw/U7DIYvsLcvI/AAAAAAAAOJ4/bGRleRzJ_WU/s1600/RBAFA.jpg"></a></p>
<p>Housing credit growth is tracking at +6.2% year-on-year, having increased by +0.5% m/m in May.</p>
<p>More notably, drilling into the data shows that investor credit for housing jumped by another +0.8% m/m in May to be up a scorching +8.3% y/y.</p>
<p>Why? </p>
<p>Because domestic investors are focusing on established dwellings which offer far superior bang for the buck.</p>
<p>A large percentage of new housing stock is presently being sold offshore, perhaps as much as 40% of it in Sydney and Melbourne according to a UBS report today.</p>
<p>The new housing market may be hitting a plateau, but the established market certainly has not done so.</p>
<p>Housing credit for investment as recorded by the RBA's Financial Aggregates has now increased for an incredible <a href="https://marketscuttlebutt.com/2014/06/30/net-australian-housing-investment-lending-8-3-yy-to-459-6b-66th-consecutive-monthly-increase/" target="_blank">66 consecutive months</a>, and with interest rates stuck down at record lows the trend look set to continue.</p>
<p><strong>Inflation to soften</strong></p>
<p>On a related note, the TD-MI inflation gauge was stuck dead flat at 0.0% m/m in June to be +3.0% y/y.</p>
<p>While the 3.0% reading sits at the top of the Reserve Bank's 2-3% target range, the inflation seen previously was largely <a href="https://marketscuttlebutt.com/2014/06/30/td-mi-inflation-gauge-back-at-rba-ceiling-likely-to-fall-in-the-second-half-of-2014/" target="_blank">a result of the falling Aussie dollar</a> as opposed to labour market pressures or wages growth, and thus is likely to soften again in the 2nd half of 2014. </p>
<p>In fact, this month's 0.0% month on month reading may just be the start of that very softening.</p>
<p>Interest rates on hold for ages yet; established dwelling prices to keep rising.</p>
<p class="separator"><em>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>.</em></p>
<p class="separator"><em>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>' .</em></p>
</div>
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pwargent-M4siyDbqQY

The financial year in review: Home values up, interest rates on hold for a while yet

<html><body>
<p>Last week a New York real estate listing started making the rounds on Twitter creating a great deal of debate.</p>
<p>The author tweeted: “New barrier breached in NYC real estate? The US$1 million STUDIO.” The New York based broker had listed a 532 square feet (49.4 square metre) studio for almost US$1.1 million (AUD$1.172). What’s more, the particular studio was described in a somewhat down-beat way as “not even in a coveted block!”</p>
<p>The Twitter activity started a conversation about how realistic this claimed ‘record’ was and for my part, back in Australia, and for Sydney in particular, I also find myself asking if the $1 million price benchmark needs to be updated, specifically when it comes to apartment values.</p>
<p>Back to New York for a minute. In reality the listing was not “a new barrier breached” for the city. It’s not even the most expensive studio listed because right now there’s a range of studios from 400 square feet at US$1.05 million to an eye watering US$1.8 million (which last sold in 2009 for US$925,000) for just 689 square feet that’s 64 square metres which is a much more familiar size and price for a quality well-designed one bedroom unit or for some two bedroom units here.</p>
<p>Recently, in just a few hours, Colliers International <a href="/expert-insights/buying/bondi-junction-aqua-off-the-plan-sellout-leaves-buyers-scrambling-to-secure-apartments">sold out Aqua at Bondi Junction</a> where 66 of the 129 apartments were sold for an average of $1,000,000 plus.</p>
<p>Today Sydney has around 170 suburbs with a median house price of $1 million. In fact, one in five Sydney suburbs is a $1 million plus area, which underlies the city wide trend, but this also argues the case for another benchmark to be used to gauge evolving values.</p>
<p>It’s also estimated that half of Sydney’s home owners will find themselves ‘millionaires’ by 2020, by virtue of the fact that an estimated 625,000 houses across the metropolitan area will have a value of more than $1 million, when twenty years ago, we weren’t even at $200,000.</p>
<p>Prices, even for some prime one bedroom apartments are now, as the Bondi Junction example shows, long past the $1 million price point. At Sydney’s Barangaroo that price has been achieved for an off the plan one bedroom apartment with parking at around 60 square meters, ($16,600 per square metre). While at just below this price a 60 square metres one bedroom apartment on level 36 at The Cove, on Harrington Street The Rocks could today be purchased at $950,000, ($15,833 per square metre).</p>
<p>Many if not most buyers are now very comfortable with per square metre rates being used to underpin process. And for apartments, that might be a much better city-wide guide than the $1 million sale price measure.</p>
<p>The use of a rate per square metre I think better reflects the location, quality and facilities of individual apartments and also gives a more accurate reflection of the total project. We also need to try and more fully factor in the big leap forward in quality and design that apartments in 2014 now deliver. There has been a massive increase in quality, finishes and design and we also need to better reflect location and building facilities and there is sound reason to suggest that a rate per sqm benchmark would do this.</p>
<p>Otherwise like the New York example demonstrates, the raw price can give a flawed or even misleading impression.</p>
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pchittenden-eLqUUC8TWW

The $1 million apartment yardstick is no longer relevant

<html><body>
<p><span>Australia’s banks are the most profitable in the world, according to the latest <a href="https://www.bis.org/publ/arpdf/ar2014e6.htm" target="_blank">annual report</a> from the Bank of International Settlements.</span></p>
<p><span>The big four last year pocketed $27 billion in profit, up 9.5% on the previous year.</span></p>
<p><span>Australian banks lead the world in terms of pre-tax profits (as a percentage of total assets) at 1.28%, with the US coming in a close second at 1.24%. Australia also showed the third best net-interest margin, the fifth best loan loss provisions and the third lowest operating costs.</span></p>
<p><span>Australia’s insurance sector also stood out as the best performing in the world.</span></p>
<p><em>This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.</em></p>
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krobb-aCrRNnPq6D

Aussie banks the world's most profitable

<html><body>
<p>Melbourne narrowly outshone Sydney with its weekend auction clearance rate. But Sydney retains the strongest market despite some winter weakening.</p>
<p>Australian Property Monitors noted Sydney’s home auction market continued to fade with the <a href="/expert-insights/buying">weekend’s auction clearance rate falling to 74.1%</a> - the lowest non-holiday weekend result for over a year.</p>
<p>Meanwhile Melbourne<span style="line-height: 1.3em;">’s weekend auction market bounced back recording its best result at 74.6% for seven weeks and the second best result since early March.</span></p>
<p><span style="line-height: 1.3em;">It was the second time this year that Melbourne narrowly pipped Sydney in the APM weekend results.</span></p>
<p><span style="line-height: 1.3em;">Overall activity in Sydney’s home auction market had shifted down a gear over recent months, according to APM senior economist Dr Wilson who noted initial weekend clearance rates averaging 74.6% over June compared to the 77.6% in both May and April, and the 82.3% averaged in March.</span></p>
<p><span style="line-height: 1.3em;">In Melbourne, APM had </span><span style="line-height: 1.3em;">June weekend averages of 72.7% down slightly on the 74.1% weekend average reported over May,</span><span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;">On the last June weekend Sydney’s inner west had the leading clearance rate of 84.6% followed by the lower north shore with 84.3%.</span></p>
<p><span>Melbourne’s outer east produced another strong clearance rate at the weekend to clearly lead the suburban regions with 87.3%. APM senior economist Dr Andrew Wilson noted the outer east had been a consistently strong performer over the past year, with surging activity from mid-priced range changeover buyers fuelling prices growth.</span></p>
<p>There were two $10 million sales in Bronte but the most expensive Sydney property reported as sold at auction at the weekend was a four bedroom home at 253 Darley Road, Randwick (pictured below) sold for $3,350,000 by Phillips Pantzer Donnelley.</p>
<p><img src="/images/2014/06/30/randwick%20june%2030.jpg" alt=""></p>
<p>The most affordable property reported sold at the weekend was a three bedroom home at 36 Catalina Road, San Remo (pictured below) sold for $310,000 by R&amp;H Charmhaven.</p>
<p><img src="/images/2014/06/30/sam%20remo%20june%2030.jpg" alt=""></p>
<p><span>The most expensive Melbourne property reported sold at auction at the weekend was a three bedroom home at 150 Simpson Street, East Melbourne (pictured below) sold for $2.6 million by Caine Real Estate.</span></p>
<p> </p>
<p><span><img src="/images/2014/06/30/east%20melbourne%20june%2030.jpg" alt=""></span></p>
<p><span>The most affordable property reported sold was a one bedroom unit at 1/11 Findon Street, Hawthorn (pictured below) sold for $235,000 by Jellis Craig.</span> </p>
<p><img src="/images/2014/06/30/hawthorn%20june%2030.jpg" alt=""></p>
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Melbourne briefly outshines Sydney in weekend auctions

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<p class="Default">New home sales fell 4.3% in May, according to the Housing Industry Association (HIA).</p>
<p class="Default">The decline, recorded in HIA’s New Home Sales Report, which surveys Australia’s largest volume builders, is the first recorded this year.</p>
<p class="Default"><img src="/images/2014/06/30/hia-juune-30-one.gif" alt=""></p>
<p class="Default">According to Harley Dale, HIA’s chief economist, new home sales may have reached their peak for the current cycle.</p>
<p class="Default">“The overall profile for new home sales is a healthy one, given that May marks the first decline in new home sales this year,” said Dale.</p>
<p class="Default">“Sales grew by 3.8% over the three months to May 2014 to be up by 21.0% compared to the same period in 2013.</p>
<p class="Default">“Further upward momentum may be a challenge and it is a distinct possibility that new home sales have peaked for the cycle,” he said.</p>
<p class="Default">“The volume of new home sales nevertheless remains consistent with further growth in detached house building and the continuation of historically elevated levels of multi-unit construction in 2014/15.</p>
<p class="Default">“Detached house construction has the potential to grow faster in 2014/15 than in 2013/14, but land supply constraints are again being exposed in this current upcycle, including a shortage of titled land in Sydney and Perth,” noted Dale.</p>
<p class="Default">“Inadequate land supply is one prominent example of supply side constraints preventing new home construction reaching its full potential, highlighting the need for a focus on housing policy reform.”</p>
<p class="Default">Sales for detached new houses decreased by 2.2% nationally over May, but were up by 5.7% for the quarter to May. Multi-unit sales also fell for the month, by 16.1%. For the three months to May, multi-unit sales were down 6.2%.</p>
<p class="Default"><span style="line-height: 1.3em;">In Victoria, detached house sales were up by 3.3%, and 0.5% in Queensland for May. On a monthly basis, detached house sales were down 6.7% in Western Australia, 5.8% in South Australia and 5.4% in New South Wales.</span></p>
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