Sydney developer <a href="https://www.apartments.com.au/developers/odus">ODUS Property Group</a> is continuing to expand its local Gold Coast development pipeline, filing plans for a new 40-storey tower in the Southport CBD.

Odus, which bought two luxury Main Beach projects, now La Mer and Le Reve, to make its move into the booming Gold Coast apartment market, has secured its third site. But it is tweaking the plans for a previously proposed 50-storey skyscraper, now seeking to deliver 40 storeys.

The project, dubbed <a href="https://www.apartments.com.au/new-apartments/80-marine-parade-74-80-marine-parade-southport-qld-4215">80 Marine Parade</a>, sits on a prime&nbsp;2,032 sqm amalgamated corner site at 74–80 Marine Parade and 4 Welch Street, across the road from the Gold Coast Aquatic Centre. It will have unobstructed, never-to-be-built-out views to the east given its position opposite the Broadbwater Parklands.&nbsp;

The plans are for 316 apartments, ground-floor retail, and resort-style resident amenities. The project sits within Precinct 1 (Central Business District) of the Southport Priority Development Area, where high-density residential and commercial development is actively encouraged.

BGD, ran by Bayden Goddard and the architecture firm behind Le Reve, has revised the original concept plans, substantially reworking the built form. Basement parking has been replaced by an expanded podium designed to improve functionality while reducing the tower's overall visual impact.&nbsp;&nbsp;

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0f13d065-2cf5-45ec-aa17-1a03754d93d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%202.png?VersionId=.9QS2n7kBc_U3PyaI247uOyNSXIqnXSE" />

The tower rises above the eight-storey landscaped podium with a distinctive architectural language defined by sweeping arches, integrated greenery, bronze-toned glazing, and a sculptural rooftop crown.

The development will comprise 104 one-bedroom apartments, 208 two-bedroom apartments, and four four-bedroom penthouses across levels 9 to 36. Apartments are designed to accommodate both permanent residents and short-term accommodation within the same building.

A double-height lobby and reception will anchor the ground floor alongside a 23 sqm food and drink outlet, activating the Marine Parade frontage.

Parking will be accommodated within the podium, providing 288 vehicle spaces and 74 bicycle spaces, accessed from Welch Street.

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="d7528b91-2c47-4094-98b3-5eecbacc0041" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%20podium.png?VersionId=efF5oWs4T9PDvxJwJEDHu5kSQ5eE3IBy" />

Residents will have access to an extensive suite of amenities spread across multiple levels. A podium recreation deck will include a swimming pool, spas, sauna, steam room, cinema, residents' lounge and children's games room, while a second wellness level near the top of the building will feature a gym, co-working spaces, reading room, dining areas and communal kitchen. Extensive podium landscaping wraps the building to soften the built form and strengthen its interface with the surrounding streetscape.

The planning report notes the project responds directly to Southport's ongoing urban transformation.

"Consistent with much of Southport, the surrounding area is undergoing significant transition, with many older low-rise developments progressively being redeveloped for higher-intensity urban outcomes, as envisaged within Precinct 1."

It also states that the proposal "will contribute to a defined and legible eastern gateway to the Southport CBD, reinforcing the area's high-density urban character while maintaining a strong visual connection to the adjoining public open space network."

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0b9fdebd-4b35-400b-a287-6bd1cdbcdb1b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da.png?VersionId=4LG35XR5mfir7jvG2TShtQx.utMLYBxu" />

Located opposite the Broadwater Parklands, the site enjoys immediate access to the Gold Coast Aquatic Centre, Australia Fair Shopping Centre, TAFE Queensland Southport campus, the G:link light rail corridor and Southport's established commercial precinct. The location places future residents within one of the Gold Coast's fastest-evolving mixed-use centres, where numerous high-rise residential projects are reshaping the CBD skyline.

Odus is headed by development professionals Byron Sakha, Jarrod Younan and Sebastian Younan. The Younans also head family-owned builder Nazero Constructions, established in the 1960s.

They are currently delivering La Mer, 24 luxury apartments on Main Beach Parade, and Le&nbsp;Rêve, on the same street but on the prized beachfront side of the sought-after strip.

Joel Robinson

ODUS plans landmark 40-storey tower for Southport's Broadwater gateway

A boutique collection of just 10 residences could become the catalyst for the next phase of renewal along the southern end of Surfers Paradise Boulevard, with new plans laid for a mixed-use tower designed to transform a long-vacant site.

The proposal for <a href="https://www.apartments.com.au/new-apartments/3098-surfers-paradise-boulevard-surfers-paradise-qld-4217">3098 Surfers Paradise Boulevard</a> has been conceived as more than a standalone residential project. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the development aims to spark the revitalisation of what the design team describes as the "South Boulevard" precinct, creating an active streetscape with retail uses at ground level beneath a collection of full-floor luxury residences.

The application, by PR Property Holdings, an entity directed by the Brisbane-based Ryan and Petrovic families, seeks approval for a 17-storey, 62.2-metre mixed-use development on a compact 427 sqm site between Surfers Paradise Boulevard and Appel Street.

The project will comprise just 10 apartments, including eight full-floor residences and two duplex apartments, positioned above a two-level retail podium. Three podium parking levels will accommodate 26 vehicle spaces, while a recreation deck is proposed on Level 4.

<img alt="First look: PR Property Holdings plans boutique apartment tower to kickstart Surfers Paradise's 'South Boulevard' revival" data-entity-type="file" data-entity-uuid="46cfa37d-5051-4449-8d8e-6724f8ca0d59" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_8.png?VersionId=e7UkeV1eTZAC2lXhdq72E3jpUbwiFD2t" />

Rather than pursuing apartment volume, the proposal focuses on large-format homes with a slender tower form intended to maximise outlooks while limiting visual bulk.

BDA Architecture said the proposal has been designed to become an urban renewal catalyst for the precinct.

"The ambition of 3098 Surfer's Paradise is that it provides the catalyst for incremental infill redevelopment and upgrade of what is coined the 'South Boulevarde' of Surfers Paradise which connects to the beating heart of Cavill Avenue."

The architects added: "An incremental approach to development that provides quality ground plane interface, human scale design, integrated subtropical landscape and semipublic permeable frontage can over time entirely upgrade a precinct."

The architecture adopts soft curves, articulated balconies and a slender tower profile rising from a human-scaled podium. The design report describes the project as delivering "bespoke residences of enduring distinction, sculpted with precision and quiet sophistication," with a focus on timeless coastal architecture.

The application also includes retail tenancies addressing Surfers Paradise Boulevard, reinforcing the site's role as an active mixed-use destination rather than a purely residential address. The planning report states the combination of the podium, landscaping and active frontage is intended to strengthen the pedestrian experience while contributing to the evolving character of the boulevard.

The site occupies a prominent position in the southern section of Surfers Paradise, directly opposite the G:link light rail corridor and within walking distance of Surfers Paradise Beach, Cavill Avenue, the Nerang River and Bruce Bishop Car Park. It is currently vacant, having previously accommodated a single-storey commercial building that was demolished in 2022. The planning report notes the surrounding area is characterised by a mix of commercial buildings and residential towers, with unlimited building height provisions applying under the Centre Zone.

The proposal also replaces an earlier 2022 approval for a restaurant and bar on the site, instead introducing a permanent mixed-use development that combines retail activation with boutique residential living.

Boutique apartment tower to "kickstart" Surfers Paradise's 'South Boulevard' revival

One of Hervey Bay's best-known waterfront landmarks could undergo its biggest transformation in decades, with plans lodged to redevelop the Hervey Bay Hotel &amp; Resort into a four-tower mixed-use precinct combining apartments, retirement living, a new hotel, wellness facilities, retail and an expanded hospitality offering.

The proposal seeks approval to redevelop the 8,981 sqm site at 249 Esplanade, Pialba, transforming much of the existing 1980s-era hotel and resort into a staged masterplanned precinct while retaining the Hervey Bay Hotel as its centrepiece.

Rather than a conventional apartment project, the proposal has been designed as four distinct towers delivered across four stages, each with a different role within the precinct.

<img alt="First look: Four-tower transformation planned for iconic Hervey Bay Hotel site" data-entity-type="file" data-entity-uuid="89db2163-cdf2-484e-90a0-9804ece86a31" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Pialba%20da%201.png?VersionId=JsYhCwLtFk2p72uhjPQBqQ57.vWoIPeB" />

The largest hospitality component sits within Stage Two, which combines a refurbished tavern, sports bar, gaming lounge, bottle shop, lobby café and wellness facilities beneath a new 52-room hotel and 55 apartments, including 30 dual-key residences. The tower rises 14 levels above the Esplanade and includes gym, spa and wellness facilities together with more than 260 car spaces.

Stage One introduces a retirement living component comprising 69 retirement apartments alongside communal facilities, while Stage Three delivers 59 apartments overlooking the Esplanade. Stage Four includes a retail tenancy at ground level with a further 45 apartments above. Collectively, the masterplan provides 228 apartments across the four towers in addition to the new hotel accommodation.

Urban Planet Town Planning Consultants, acting on behalf of Herbay Pty Ltd, says the redevelopment builds on the long-standing role of the hotel within the Fraser Coast community.

"The Hervey Bay Hotel is an iconic use (notwithstanding the current format) and the retention for this facility in the community as an effective and successful business will advance the goals of the Planning Scheme," the town planner noted in its planning documents.

<img alt="First look: Four-tower transformation planned for iconic Hervey Bay Hotel site" data-entity-type="file" data-entity-uuid="cca3617b-693f-40e2-8fa3-f609c2c95d00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Pialba%20da%202.png?VersionId=8.hhkMuikoiLvoD6ei655Pj9mTKob4xV" />

The planning report argues the redevelopment responds to demand for greater housing diversity, additional tourism accommodation and expanded hospitality offerings within Hervey Bay's established urban area, rather than continued greenfield expansion.

"The delivery of contemporary services in the form of hotels, dining opportunities and short-term accommodation will be the cornerstone of the proposed development and does have a significant community outcome in the retention and expansion of existing services."

The masterplan has been prepared by <a href="https://www.apartments.com.au/architects/oge-group-architects">OGE Group Architects</a> and features three basement parking levels beneath towers rising to around 14 storeys, creating one of the largest integrated mixed-use developments proposed for the Fraser Coast. The design also incorporates gym and wellness facilities, communal recreation areas, retail space and new landscaped public interfaces across the four street frontages.

The site occupies a prominent waterfront block bounded by the Charlton Esplanade, Thomas Street, Watson Street and George Street, immediately opposite the foreshore and within walking distance of Hervey Bay's city centre, Wetside Water Park and surrounding commercial precinct. The existing Hervey Bay Hotel &amp; Resort currently occupies the site, with buildings dating largely from the 1980s.

First look: Four-tower transformation planned for iconic Hervey Bay Hotel site

The transformation of the Gold Coast’s CBD of <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> is underway with the official commencement of one of the area’s first ‘next generation’ towers, the $200 million Maris residences.

More than 250 onsite and offsite workers will deliver the project being delivered by Malaysian company <a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> and its build partner, <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a>.

The start of construction by Binah follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since its market launch less than a year ago.

The project has attracted predominantly local buyers and downsizers, many of whom who live and work in the CBD or the nearby Health and Knowledge precinct.

[smartcode_project:default project_id=134403 project_image_fid=372756]

The commencement of construction was marked by an official sod turning ceremony on site today (Friday, August 7).

MRCB International CEO Ravi Krishnan said MRCB was delighted to be playing a part in the transformation of the Southport precinct.

“We’re very aware of the importance of Southport as the CBD hub of the Gold Coast and the need for high-quality residential facilities for locals who live and work in the area,” said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

&nbsp;

[smartcode_project:default project_id=134403 project_image_fid=350661]

Binah's Managing Director Khalil Hafza said the company was delighted to be constructing Maris in its first foray into the Gold Coast market.

“Binah has been in Queensland for some time but we are very pleased to be given the opportunity to construct a project of such magnitude on the Gold Coast,"&nbsp;Hafza said.

“Some 250 on and off-site tradespeople and consultants will work on Maris over the course of the next two years bringing significant economic benefits to the Gold Coast community.”

Maris will deliver 192 residences across 20 levels. The project forms part of an Australian and New Zealand development pipeline by MRCB now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70% of residences sold.

[smartcode_project:default project_id=134403 project_image_fid=372760]

Positioned next to the Broadwater in the Southport CBD, Maris will sit directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

MRCB and Binah mark start of construction on $200m Maris Residences in Gold Coast CBD

To say Frank Licastro is keen on Wyandra Street, the small 400m strip that straddles Teneriffe and Newstead, would be an understatement.

Licastro, who runs Frank Developments, first jumped onto the street with <a href="https://www.apartments.com.au/new-apartments/ducale-teneriffe-33-wyandra-street-teneriffe-qld-4005">Ducale Teneriffe</a>, just 26 apartments at 33 Wyandra Street.

With those apartments heading towards construction completion later this year, Frank went again just a few doors down with the recent launch of <a href="https://www.apartments.com.au/new-apartments/murano-teneriffe-37-wyandra-street-new-farm-qld-4005">Murano House</a>, a further collection of 41 apartments at 37 Wyandra Street.

Now Licastro is planning his third building on the strip.

Frank Developments has submitted plans to Brisbane City Council for a considerably larger 147-apartment project across an amalgamated 1,928 sqm site at <a href="https://www.apartments.com.au/new-apartments/22-40-wyandra-street-teneriffe-qld-4005">22-40 Wyandra Street</a>, which also runs through to Wyatt Street.

The Cavill Architects-designed proposal, on the opposite side of the street to Ducale and Munro House, will rise to 22 storeys at its tallest point, stepping down towards Wyandra Street as the building transitions between the higher-density Newstead skyline and the lower-scale character of Teneriffe.

<img alt="Frank" data-entity-type="file" data-entity-uuid="fe60dd88-c9f1-495c-b918-ddfd5dbae504" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-17%20at%207.57.08%E2%80%AFAM.png?VersionId=0cxIChr_1aSNoE3K3VbVl8qNyENf4a90" />

The plans comprise just two one-bedroom apartments, with the project overwhelmingly geared towards larger apartments. There will be 80 two-bedroom apartments, 58 three-bedders, six four-bedroom apartments and a single five-bedroom residence.

The apartment mix continues the owner-occupier focus Frank has pursued across its recent inner-Brisbane developments.

There will be 222 resident car spaces and seven visitor spaces across four basement levels, along with 166 bicycle spaces.

Cavill has approached the architecture as a transition between two very different parts of inner Brisbane.

The site effectively sits on the dividing line between Newstead's high-density mixed-use precinct and Teneriffe's medium-density residential area, something that has heavily influenced the massing of the building.

Rather than presenting as a single 22-storey tower, the building steps up from a 13-storey form towards Wyandra Street to its taller 22-storey element towards Wyatt Street and Newstead. The design documents describe the taller component as the "backdrop massing", with the lower form creating the transition towards Teneriffe.

The architecture itself also changes as it rises.

At the lower levels, Cavill has drawn from Teneriffe's heritage buildings and the tuff stone found below ground, before shifting towards a more contemporary Newstead-inspired tower expression with continuous balconies higher up.

<img alt="Frank 2" data-entity-type="file" data-entity-uuid="3c6953c7-f65c-4ca5-bba0-08c1782b72af" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-17%20at%207.56.33%E2%80%AFAM.png?VersionId=NxHPok5FY.omKhxPVqVWIN9ONqfoQV53" />

Frank is also proposing a significant amount of resident amenity throughout the building rather than concentrating everything on one recreation level.

Amenity terraces are proposed at levels 13 and 16, before another major rooftop terrace at the top of the building. The plans show a pool terrace and landscaped outdoor spaces, with shaded outdoor rooms, tree planting and protected "City Rooms" incorporated into the shared areas.

At street level, the project will also seek to open up the connection between Wyandra and Wyatt streets.

A currently constrained pedestrian laneway along the northern boundary would be expanded, while a double-height "City Room" would be created on Wyandra Street. A separate two-storey outdoor arcade would run through the site from Wyandra Street to Wyatt Street.

The ground floor plans also show food and beverage tenancy space alongside the residential lobby, lounge, office and landscaped public areas.

Cavill says the intention is to create a more generous and heavily landscaped Wyandra Street frontage, with weather protection and public spaces designed to encourage people to spend time at street level.

Frank has been busy across Brisbane and the Gold Coast in recent years, with two ultra-luxury projects under construction in Surfers Paradise, as well as several projects in the pipeline across New Farm and Hamilton in Brisbane.

&nbsp;

First look: Frank Developments triples down on Teneriffe's Wyandra Street

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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The Reserve Bank of Australia has left the official cash rate unchanged at 2.5%, in line with analysts' predictions.
It’s the second month in the row the Bank has left rates unchanged at a 53-year low.
All nine analysts queried by Finder.com.au <a target="_blank" href="/news">predicted no movement in the official cash rate</a>.
And all 33 economists surveyed by Bloomberg predicted no change for October.
But 12 of the 33 predicted a rate cut of 25 basis points for November.
The next RBA Board meeting is on November 5.
The Bank has previously cut rates in August 2013, May 2013, December 2012, October 2012, June 2012, May 2012, November 2011 and December 2011.
RP Data's Tim Lawless says the current interest rate setting is providing an appropriate level of stimulus. 
He says housing values across the combined capital cities have recently reached a new historic high after recording a 7.7% peak to decline correction between October 2010 and May 2012. 
"Not only are home values up by 8.7% since the recovery trend kicked off in June last year, but there has also been a sharp improvement in the level of credit demand for new housing," Lawless says.
The number of mortgage commitments for new housing has risen by more than 50% over the 12 months to July, mortgage activity is continuing to trend higher indicating that housing finance demand is continuing to gather momentum as the market moves through spring.
"Dwelling approvals have also been trending higher which is another positive sign that the low interest rate setting is flowing through to new housing investment which is one of the key desired outcomes from the low cash rate setting," he says.
"While the housing market is broadly tracking consistently higher in value, the benefits of the low mortgage rate environment aren’t being felt across all regions.  Dwelling values across Australia’s third largest city, Brisbane, have hardly budged over the last year and dwelling values are lower over the year in both Adelaide and Hobart. 
"Additionally, momentum has left the Perth and Darwin housing markets with values rising by just 1.3% and 0.1% respectively over the past three months.  These cities would certainly benefit from mortgage rates remaining at their low setting."
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RBA leaves rates unchanged

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A reputable, licensed mortgage broker, who has lending agreements with a wide range of lenders, should be able to tell how much you can realistically afford to borrow based on your financial position, goals and income and  provide you with a number of suitable options.
Always ensure there is enough of a buffer in your budget in case interest rates rise and your monthly repayments increase.
Alternatively, consider taking out a fixed-rate home loan if you want certainty or splitting your home loan between fixed and variable to hedge your bets.
Be aware that some brokers and lenders will try to charge you a higher interest rate for an investment loan, insisting it carries more risk.
However, other lenders do not differentiate between investors and owner-occupiers, so keep a look out.
Before signing up, ask the lender to waive the establishment fee.
Many lenders will waive these to secure your business.
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Speak to your mortgage broker and banker to know what you can afford with a nice buffer

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In my 20 odd years as a quantity surveyor, I have never seen more “mortgagee in possession” properties for sale than in the last few years. And this is particularly true for commercial property.
In fact, recent studies indicate that a whopping 25% or more of all commercial properties for sale have been distressed sales.
So what does this say about the commercial real estate market? Well, aside from the fact that now might be a good time to start snapping up bargains, there are other substantial tax benefits to be made. And it all relates to paragraphs 41 &amp; 42 or Tax Ruling 97/25;
Construction cost exceeds purchase price
41. Damian is a property developer who constructs a condominium of 38 units in a popular holiday resort. All units are intended for sale. During the construction period, he sells 28 of the units off-the-plan. After completion of the project, real estate prices drop significantly and he decides to sell the last of the units below cost.
42. David, an investor, buys one of the last units for $95,000. The actual construction cost of the unit to Damian was $105,000. David is entitled to a deduction under Division 43 based on construction expenditure of $105,000.
You see, the capital works deduction is based upon the actual construction cost, in comparison to most depreciating assets that are based upon what you pay for the item.
And as quantity surveyors, we are now preparing depreciation schedules where the construction cost is close to or exceeds the purchase price, just like the above example.
And as far as I’m aware, there is no other way under the Australian taxation system where you can get a deduction greater than what you actually pay for something.
When you buy a car from Mazda, for instance, you don’t ring up Mazda and ask what it cost them to manufacture the car - do you?
Buildings are different.
And if you don’t know the construction costs, TR 97 / 25 states that a report from a quantity surveyor will be accepted.
Remember, you can claim capital works (sometimes called building allowance) on commercial property if construction commenced after July 1982.
For residential buildings, construction must have started after July 1985.
Certain items within commercial properties also attract a higher rate of depreciation – like carpet.
That’s because office carpet gets more wear and tear than carpet in a home.
And it’s not just commercial property prices that have dropped close to or below construction costs. We have also seen this trend in relation to residential property prices in some holiday regions such as Noosa and Cairns.

<hr>
Tyron Hyde is director of <a target="_blank" href="https://www.washingtonbrown.com.au/">Washington Brown Quantity Surveyors</a>. 
His book <a target="_blank" href="https://www.claim-it.com.au/?utm_source=wbsite&amp;utm_medium=image&amp;utm_campaign=homepagebanner">CLAIM IT!</a> helps property investors maximise their tax benefits through smart deprecation.
 
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Claiming capital deductions on commercial property: Tyron Hyde

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For well over a decade I have been grappling with property markets consistently showing us the increased performance of concentrated inner urban areas, particularly those that are in a close proximity to the CBDs of our major Australian cities.  
But there’s really no point fighting against it. The fact is, CBDs are the highest performing areas, and that makes them the key areas for investors.  
When looking at investing in your first, second or hundredth property, the location is always the most important factor to take into account, and there’s always going to be an element of risk when making that decision. The whole notion of investing applies an assessment of risk, but I would argue that that risk is mitigated by investing in areas which have robust employment, infrastructure and lifestyle choices.  
Mining towns may seem like the prime area to make a profit, but there’s no promise that these areas will still be populated and have a reliable stream of tenants in 10 or 15 years’ time. But in our inner cities, you know that this will always be the case – and that’s a fact!  
The buyer’s agents in my business specifically look for properties within a five-10 kilometres perimeter of the CBD. The reason for this? People will always cluster where trade and commerce present themselves.
Cities form around landscape and natural bounties such as beautiful harbours and inlets, they’re nice places to live and people are social and community-based creatures - they relish in living near the action. In fact, the old cities around the world show how communities of all racial, cultural and religious backgrounds thrive in these cities.  
This very phenomenon has been played out across the world, city after city, on every single continent in the world and is our key to success. It is your guarantee that we too will populate our cities in exactly the same way as places like London, New York and Shanghai.  
The land in capital cities will always be an asset that will grow in demand.  
At present, I stick to the top six cities in Australia in order of population:  
1). Sydney
2). Melbourne
3). Brisbane
4). Perth
5). Adelaide
6). Gold Coast  
I usually recommend heading for Sydney or Melbourne to consolidate the core purchasing strategy. Australia is now one of the most urbanised countries in the world, with 89% of our population living in urban centres and investing in these areas will almost definitely offer you the most upside to your 10–15 year plan.
Go where the land is scarce and, once you’ve decided on your area, ask yourself the following questions before purchasing.
a). Where is the employment centre of the city?
b). Is there a diversity of employment in this region?
c.) What is the history of this employment, i.e. does it ebb and flow or is it historically always strong?
d). Can I buy close to good infrastructure, or if the citizens of a city are better serviced elsewhere, what is stopping them from leaving?
e). What is the history of infrastructure in this city? I.e. how has the government [state and local] achieved the objectives set by its citizens over a good (minimum 15 years) period of time?  
Once you know these answers, you’ll know if you’re in an area that will grow and thrive – and your property will grow and thrive with it. A safe bet for anyone entering, or well experienced, in property investing.  
 
<hr>
 Gavin McPherson is the CEO of <a target="_blank" href="https://www.oasisproperty.com.au/oasis-buyers/oasis-property-buyers.php">Oasis Property</a> and author of "Value Investing in Property: What would Warren Buffet do if he was investing in property in Australia?"
 
 
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Some things never change; inner city investment is the best bet: Gavin McPherson

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It’s a curious factor in 21st Century Australia that whenever housing prices rise, even moderately as they are currently, hordes of attention-seekers start looking for someone to blame. 
   The first curious thing is that anyone would think “blame” is appropriate. Apparently rising home prices is a bad thing, although two-thirds of Australian households (those who own their homes) have good reason to feel it’s a very good thing. And indeed, given that we’re all required to provide for our retirement and the family home is (for most people) the basis of their ability to do that, it’s also a good thing for the nation.   The second curious thing is that the finger-pointers never get it right in apportioning blame. Popular but misguided options are property investors (supercharged by negative gearing tax benefits, apparently), foreign investors (who pay silly prices, according to popular theory) and first home buyers (driven by government grants and stamp duty concessions).   The third curious thing is that the many people shouting “crisis” never produce any research data to support their theories that investors/foreigners/first-timers are the guilty parties in creating the outrage of increasing home values. This is because the data doesn’t exist. There’s no basis for any of the theories.   The reality is that the bulk of property buyers are next-time buyers – i.e. home buyers other than first-time buyers. Unlike first-timers, next-time buyers have the capacity to pay a top price and, unlike investors, they have the motivation to do so. Next-time buyers are more than half of the market (more than foreigners, first-time buyers and investors combined) and have the bulk buying power to cause prices to rise.   Curiously, no one ever blames them – the real movers and shakers in the property markets.   But, wait, we have a new contender. The Reserve Bank has come up with another candidate in the blame game: mums and dads who start self-managed super funds and buy real estate.   Those of you who thought that you were doing the right thing by your family and the nation by seeking this method of providing for your retirement, think again. You’re naughty boys and girls because you’re pushing up house prices. The RBA wants you to have assets in your SMSF that don’t grow in value, apparently, if that makes sense to anyone.   I think it’s time for the whole nation to take a collective cold shower on the issue of house prices. Since mid-2010, the last time we had serious price growth in the capital cities, we have had two years in which prices generally declined.   In the past 12 months the weighted average across the eight capital cities is a rise of 5% to 6%, depending on which research source you prefer. That is moderate growth only, roughly in line with the rise in incomes.   Keep in mind that the weighted city average in the ABS House Price Indexes in June quarter 2010 was a rise of 18.4%. Every city except Brisbane was in double digits, headed by Melbourne’s annual rise of 24.3%.   Growth of that sort might justify the current frenzy of comment about booms, bubbles and blame. But, right now, rather than the “white hot” markets that some are screeching about, we have lukewarm markets only. And no one deserves to be blamed for that.
 
<hr>
 Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
 
 
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It's time for a collective cold shower on house prices: Terry Ryder 

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Well it has only taken just under 14 days for GST to be back on the political and taxation agenda. As I noted in <a target="_blank" href="/news">my post election comments</a>, over the next few years the federal government’s review of the tax system is set to possibly be one of the biggest impacts on the housing industry and real estate market.
It’s an important issue because any variation to the structure of the GST could have a negative impact on affordability but any extra funds might also help state governments deliver better infrastructure.
When it comes to the woes and opportunities in the housing markets these two topics are frequently tied up in the same argument. Better infrastructure will assist the market and help create more supply but a high GST may well add to costs if we were to move from 10% to 12.5% or even to 15% as is the case in New Zealand.
Any reforms must finally address stamp duty. While I have already noted that the new government in Canberra has promised a big picture tax review, as far as the housing market is concerned this is an essential undertaking. Stamp duty cannot be quarantined or offset because of this or that occasional government grant or incentive scheme, what we need is real reform.
Given the need for more revenue the GST was always going to be back under the spotlight. But as I and others have noted time and time again, any review of the GST must include a review of property related taxes and in particular stamp duty. Our professional industry bodies need to ensure our case is understood and answered in Canberra.
Here again I have previously pointed out that local and state governments still gain 45% of their revenue from property related taxes. Transaction taxes alone account for 14% of that revenue, which are according to the OECD among the highest rates in the world. These taxes impact almost every part of the housing market, they can and do present a hurdle to some first time buyers, but they also hurt people looking to trade an established home.
In any GST review this is one of many essential factors to keep in mind because as Dr Tim Williams CEO of the Committee for Sydney noted in his report <a target="_blank" href="https://mckellinstitute.org.au/wp-content/uploads/2012/04/McKell_HomesForAll_A4.pdf">‘Homes for All’</a> that a fifth of the population owns 50% of all homes. Many of these established owners are reluctant to move because of the burden of stamp duty and its possible impact on retirement savings. And it is also claimed that in some areas the burden of stamp duty may, in spite of changes to some planning regulations, also unintentionally prevent re-development and so limit the supply of new homes.
Additional costs by way of a higher GST, while they may be at least three or four years away must also be introduced as a part of meaningful reforms of other taxes, and in respect of the housing market, high on that list is the removal of stamp duty. One very clear reason for this is the possibility that in three or four years time today’s historically low interest rates may well have disappeared.
The burden of higher interest rates and a higher GST, without a commensurate reduction in the rate of stamp duty, or even better its complete removal could have the potential of making home affordability even worse than it is today even with low interest rates. For the property development industry and state governments this is a long avoided debate that can no longer be put off!

<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Reductions to stamp duty must be part of the GST agenda: Peter Chittenden

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Professional renovator Belinda Grundy has seven top tips for the best ways to spend $10,000 to maximise return when renovating. While some of it involves direct cash spending some involves more of a change in thinking.
 
TIP One – Think like a buyer!
You have to disconnect yourself from the property and start looking at it from a buyer’s point of view. Walk through your home and inspect it like a house-hunter and take note of the things or areas you liked and disliked. This will give you an idea on the areas that you need to repair or change. Don’t think like an owner and change hats. This will save you some money.
TIP Two – Know your market.
Time to quiz your real estate agent. Ask them the type of buyer who will buy your home. Also, you have to ask your agent the type of buyers who buy homes in your neighborhood. The information you get will be very useful in deciding how you will charm these kinds of buyers to your home. As an example, if your home is suitable for retirees, then you should highlight the areas that you think most seniors would love to see. These are the parts of your home that you need to spend on to give your prospective buyers a ‘something to consider’ in their decision in buying your home.
TIP Three – The street appeal.
Make the exterior of your home a real ‘head-turner’.  You want to pull those buyers in. Give them the ‘love at first sight effect’. So how do we do this? Stand back and look at your property. You might paint the exterior of your home, pull out all the weeds, add some stones and neat and tidy plants – make your home look picture perfect even from afar.
Do not think that painting your home is costly. Actually, this is the best cost-cutting solution to make something old brand-new. So you want to budget your cash, right? This will really make your home appear well-maintained and even stand out.
TIP Four – WOW rooms.
Choose your room that you want to highlight and devote some of your budget to make this a WOW room. The WOW room is usually the room that made you buy the property. We want the buyers to feel an emotional buy in to this room. We want them to imagine themselves in that room spending their afternoon after a hard day’s work or with their children. For an investor, this room needs to be the room that they know the tenant will suit and love.
How do we create this WOW room? Easy – you can position your furniture to make the room look as large as possible. Make the room feel airy and spacious. Leave good walkways through the room so that people can move around easily.
Creating the WOW room need not be expensive. If you think your furniture seem outdated, you can always hire this in the weeks you need to present your home. Always remember that WOW rooms are about showing off, not overdoing it… and remember it is for your target market.
TIP Five – It’s the little things!
If you’re planning to change something in your home, like your door knobs or furniture, don’t just buy the first thing that you see in improvement stores. First, be mindful of the design you want. Then, you have to scour what’s available. You will be surprised to know that you can find the perfect items for your home at a cheaper price. 
Putting more effort in looking for anything that you need for your renovation can save you more dollars.  Some of my favourite and creative ways are exactly that, going with a contemporary theme of little things like changing fittings - for example tap ware accessories and door handles. 
You would be amazed that a spray of tiles in a 60s bathroom, fix any window furnishings and changing the furniture to replicas can work wonders, all for minimal dollars. A bathroom, for example, with a spray, glass shower screen and fittings could be $1,500
TIP Six – Declutter, clean, organise.
This is probably the simplest way to give your home the appeal it needs and could be free! Everyone wants to enter a home that is clean and neat. Make the floors sparkling clean, remember hygiene sells – doing this will catch the eye of anyone. It gives the impression that this house is really well maintained. If you want to get a cozy effect, aside from being clean, put some fresh flowers on the counter of your kitchen. The smell of fresh flowers gives a feeling of being cared for. Appeal is not only seen through the eyes. Stimulating the senses and allowing no clutter or mess distractions are other ways of putting more appeal to your home and allowing buyers to imagine themselves or their tenant there.
TIP Seven – Light it up!
Install new lights to brighten and open up your home. It’s quite attractive to see a home full of contemporary subtle lights as it gives us a welcoming and cared for impression. Install lights outside your home for the ‘drive-bys’, the entryway, the hallways, the living room – everywhere as much as possible. Having lights all around your home will help highlight the WOW rooms, your street appeal, and the cleanliness and size of your home.
Making your home the ‘beauty queen’ of the market is not costly at all. Just by knowing where to put your money to maximise your home appeal on the market can definitely save you dollars along with broadening your market appeal.
 
<hr>
 Belinda Grundy specialises in pre-sale property presentation. She has a <a href="https://www.propertystylingonline.com.au" target="_blank">DIY Sellers Property Styling Program</a> and an <a href="https://www.bgpropertystyling.com.au" target="_blank">in-home consultation service</a> in Sydney’s Northern Beaches.
 
 
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Belinda Grundy's seven pre-sale renovation tips

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The voting public believe online mortgage providers loans.com.au have the cheapest loans in Australia.
More than 28,000 customers of the mortgage comparison site Mozo.com.au voted  to award Loans.com.au the title of “Australia’s cheapest home loans”.
Loans.com.au has variable home loans rates from 4.49% (5.51% comparison rate).
Managing Director Marie Mortimer encouraged mortgage holders to switch lenders.
“We have interest rates on par with rates in Australia during the 1950s. These awards are always a good reminder for people to consider their loans and decide whether they are paying too much.”
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Loans.com.au has cheapest perceived cheapest loans

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I wrote a few weeks ago about <a target="_blank" href="https://www.propertyobserver.com.au/economy/are-we-in-a-dwelling-boom-a-rally-bubble-or-a-recovery-inside-our-bubble-mentality-catherine-cashmore/2013081864317">housing bubbles and the misconceptions commonly related to the term</a>.  A bubble is typically an illusion of economic strength which draws buyers in, whilst masking underlying fragilities - and in some areas of Australia, the recent investor lead rally in property prices from an already inflated base is concerning.
However, unlike other economic bubbles, housing markets have plenty of complexities which can delay a severe correction – not least the stimulus of easy monetary policy, incentives, and speculation buoyed on by tax policies that encourage heated investor activity in the established housing terrain around our most desirable capital city locations.
Even in markets where housing has suffered dearly from the 2008 financial crisis, such as the UK, and USA, there is a fragmented nature to the falls dependent on location and the openness to attract foreign speculation.
In the south-eastern regions of England for example, where foreign money has propped up London’s prime central market creating a ripple across the outer lying suburban towns, the falls in capital have been far less severe than the northern districts where the market has dipped some 20%, and in regional areas, even more.
Not that this has in anyway helped Briton’s younger population who are now commonly termed ‘generation rent,’ with the numbers of unemployed living in the family home almost doubling between 2008 to 2012, and the productive areas of economy failing to pick up fast enough to drive innovation and generate new sources of growth.
Although house prices in the UK have started to rise again with the help of various schemes such as ‘funding for lending,’– other areas of productivity aren’t fairing so well.  As UK regulator Lord Adair Turner pointed out in a recent speech to London’s central bankers and economists, only 15% of total financial flows in the UK have gone toward investment projects, the rest have instead been used to support unsecured personal finance or existing assets - significantly real estate.
However, do we really fair much better in Australia? Our low interest rate environment, coupled with a honeymoon period of post-election confidence, is predictably forcing investors to seek out any area of imagined opportunity that can provide a better return on their dollar.
This runs the risk of stimulating higher levels of household debt (currently at around 150%) directly tied to speculative behaviour.  And in the Australian culture which veers towards the perceived safety of bricks and mortar, based on the somewhat fool hardy view promoted widely in the industry that limited supply and rising population growth can forever prevent a sharp correction, you don’t need a second guess as to where a large proportion of undiversified debt is currently being allocated.
Some interesting research was released last week by Jonathan Mott of financial services firm UBS, highlighting the above point aptly;
“If we compare Australia, New Zealand and the UK, all three countries have similar cultures, demographics and home ownership. However, investment property contributes 32% of Australian mortgages, 20% of NZ mortgages and 12% of UK mortgages. ….57% of Australian landlords are leveraged (ATO data suggests this is closer to 81%) compared to 28% in NZ and just 13% in the UK”
This would be less of a concern if effective supply was keeping pace to soak up the overflow of demand, and thereby reduce volatility in values. However, in areas of limited supply, the bubbly nature of the price gains disproportionally advantages those with existing assets, at the expense of those struggling to get a foothold.
When viewed against a less than desirable economic backdrop of rising unemployment, an unwinding mining boom, and weak wage growth, with a rise in the cash rate at some future point inevitable, you’d be foolish to think the current trend can continue without some correction.
Notwithstanding, our politicians continue to miss the point, as Tony Abbot said on 3AW last week;
“Don’t forget … if housing prices go up, sure that makes it harder to get into the market, but it also means that everyone who is in the market has a more valuable asset,”
What a sad world it is, when the most essential item young and old aspire to alike, for both their health and continued well being, gradually becomes less affordable over time, requiring a greater level of debt to be serviced despite the somewhat falsely perceived advantage, that low interest rates somehow make the buying environment and purchase of property easier.
And yet as a direct consequence, we have falling rates of ownership – particularly in the younger generations, an increase in overcrowding of accommodation, rising waiting lists for social housing, and the average age of ownership for those not benefitting from a gifted deposit, pushing closer to 40 years.
The housing market no longer revolves around promoting home ownership for the sake of personal well being, it’s Australia’s largest domestic asset class with an aggregated value of over $4 trillion, and understandably it’s now suggested that ASIC should recognise it as such.
Countless hours can be spent arguing what the term ‘bubble’ actually means – definitions are numerous. Equations are done regularly comparing price to rent, debt to GDP, price to wages (a somewhat skewed calculation due to the inclusion of compulsory super,) however do we really need a meteorologist to tell us what the weather’s like outside?
Whether you call it a bubble matters not, Australian house prices have been pumped up with many ingredients over the decades to get to such elevated levels.  As a result, we have a market that is both overpriced and undersupplied, with the first home buyers' share of new home loans sitting at its lowest point in a decade.
Monetary policy alone is a blunt instrument, and whilst Governments can allocate at their discretion where to spend our tax dollars, they have limited influence on where cheap credit is spent, or for which asset it is lent into the economy.
Nor do they currently have the ability to direct it into areas where it’s needed most – which in terms of housing would principally be construction. Hence why the sector continues to call out desperately for another rate cut.
Instead buyers are punting a lot of unproductive dollars on second hand houses, and the proportion of cheap money finding its way into a limited pool of dwellings, should not be brushed aside as merely part of a typical property cycle, when we have a number of economic and social factors combining, which left unregulated, have the potential to create the perfect storm.
<a target="_blank" href="https://www.afr.com/p/blogs/christopher_joye/why_we_should_be_worried_about_australia_9gqc2CPE2hrAcikkRvyOGM">Much commentary has been written on this matter of late</a>, and it’s not isolated to Australia. The Bank of England this week voiced how it was watching the UK market “closely” as price rises in London reached 10% in the year to July, warning “that if risks to the stability of the financial system were to emerge from the housing market, both it and the micro prudential regulators had a range of tools available to address those risks."
However, the RBA continue to sit on their hands, not wanting to pull a regulatory lever, instead taking on a stern expression and wagging a finger at investors whilst pleading with them to employ caution, as if they will all fall into line like a bunch of secondary school kids in a playground.
This idea that investors will employ a sense of rationality is ambitious in a market that has corporate regulator ASIC, once again warning against the propensity of spruikers.
But even without these spruikers buyers face difficulties - fed daily with house price statistics from RP Data. Closely comparable sales data is not readily available – computer generated “estimates” are a guess and more often than not, hopelessly inaccurate.
Furthermore, there are plenty of other variables that need to be assessed prior to investing in any residential listing.  Prospected development projects which may spike the stock being taken to market, thereby diminishing the level of capital growth being assumed based on a cursorily look at historical data.
Local vacancy rates, the time on market you can expect your rental property to reasonably sit before finding a tenant, the predominant area demographic any said property will appeal to in order to attract and maintain consistent buyer demand - the list continues.
I mention this, because the broader implication of a large proportion of inexperienced buyers making unwise acquisitions without educated due diligence, is a worry unto itself. However, the number of real estate investors is set to rise. Although presently, only a relatively small proportion of total investment in the property market stems from SMSFs, it’s going to rapidly increase.
As mentioned in the AFR this week, the most mobile pot of cash is in the self-managed super system. About one third of the $500 billion in SMSFs is held in cash, or about $150 billion.
On the back of this, there is a theory that self-managed super will have a mean reversion to normal cash weightings of about 10%. If that proves accurate, about $100 billion in cash will move – leading to the question –where will it move?
As it stands, only 23% of investment into residential property comes from SMSFs, against 77% invested in commercial.  Albeit, when the direction of that percentage is into established areas suffering an elastic band of restricted supply, the recent boom in Sydney for example, against the backdrop of slow credit growth - will have no doubt been exaggerated by SMSF demand.
However, banking regulation aside, our politicians should be moving to restrict policies that encourage disproportionate speculation, such as the tax treatment of negative gearing (which should be phased out) and capital gains, or implementing a transition toward a broad based land tax system which is long over due.
My only comment to those with short-term spectacles on who think the recent boom is good news - enjoy it whilst it lasts, because I suspect it won’t end without unpleasant consequences.

<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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catherinecashmore-6LXia3pPQj

Enjoy the housing boom while it lasts, it won't end without unpleasant consequences: Catherine Cashmore

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With some of our most talked about stories of last week revolving around experiences with valuations, it was no surprise that Property Observer's editorial inbox was seeing responses from both sides of the fence.
If you weren't around last week, fill yourself in with these articles: - <a target="_blank" href="https://www.propertyobserver.com.au/finance/off-the-plan-values-coming-back-at-15-below-purchase-price/2013092365217">Off-the-plan values come back 15% below purchase price </a>- <a target="_blank" href="https://www.propertyobserver.com.au/finance/calls-for-an-overhaul-of-the-valuation-industry/2013092565271">Calls for an overhaul to the valuation industry</a><a target="_blank" href="https://www.propertyobserver.com.au/finance/off-the-plan-values-coming-back-at-15-below-purchase-price/2013092365217"> </a>- Patrick Bright asks <a target="_blank" href="https://www.propertyobserver.com.au/news/why-do-some-valuers-get-it-so-wrong-patrick-bright/2013092565285">'Why do some valuers get it so wrong?'</a> - <a target="_blank" href="https://www.propertyobserver.com.au/finance/valuers-speak-out-what-s-happening-from-their-perspective/2013092765328">Valuers speak out: What's happening from their perspective </a>
Here are a couple of the highlights.
From: Gavin Hegney, Founding Director, LMW Hegney
We do over 50,000 valuations per year in Perth, and have valued half of the city over the last 23 years.
Valuers are asked for the most recent relevant and settled sales available as evidence to the valuation. The only problem is that by definition this makes any property only worth as much as the last sale, which is just not the case in a moving market, whether it be up or down.
In a boom market we are often too low, and conversely, in a falling market too high.
Low fees and high volumes place a lot of pressure on the valuer today, along with ever increasing litigation and liability, and like any profession there are both good and not so good operators.
The talked about cases are often the minority, not majority.
Of course we all have an emotional attachment to our homes and hence I have found nine out of 10 have an overinflated view of their value. I put myself in that group too.
The worst thing we can do is to be over geared to an overinflated view of our property. That helps nobody and if it goes wrong will end up in pain. I have seen this too many times.
Sometimes new projects have over inflated prices that people get caught up in paying. This too usually ends up in pain unless the market drastically increases in value soon after the purchase.
Often a good valuer will spot these issues, and alert the person and lenders to the issue so appropriate risk and pricing can occur. The developer is usually not that happy though.
So I view a good valuer as someone who is there to assist you to build wealth and financial security safely.
People with excessive problems just haven't found a good valuer, yet. From: Nathan Wagner, Managing Director, Me &amp; Nathan
I am an avid reader and the articles on valuations have caught my interest.
With respect to full disclosure, I run an ethical property marketing company that provides outstanding packages with great inclusions for well below market price, I do not put high comms on the projects, my negotiating and volume pricing has me make a suitable income and ensures my win/win focus never changes and other than one instance I have never had a valuation issue, anyway, I thought I’d send this to you to give you some actual facts.
In December 2012 I sold a house and land package to a client in Doreen.
The package was $387,800 (Land was $170,000 including a rebate I negotiated for the client of $30,000, the construction was $217,800).
Block size 400 square located in Delfin’s Laurimar Estate in Doreen.
The house was a 24.3 turnkey with an extremely impressive inclusions list such as stone bench tops, feature wall, 9ft ceilings, 2,340 x 1,020 stained entrance door and evap cooling.
When I put this package together the market had similar (some smaller, all with much less inclusions) packages recently sold and for sale ranging from $399,000 to $430,000.
The valuation came back with a horrifying low ball of $360,000. The strange part here is on the valuation the valuer approved the price of the build and the price of the land but decided to drop it by nearly $30,000 as he simply thought bigger blocks were better, and whilst I agree bigger blocks are attractive, they are not always feasible or necessary and the land developer has the control over this.
In disputing the valuation I was told by the mortgage broker that the valuer is well known for being jaded and that he is very out spoken about how bad the market is. The valuer used comparable sales of three-bedroom houses with studies and during the dispute advised the studies could easily be [counted] as a fourth bedroom. Below is information obtained from the mortgage broker.
“I have had several long phone conversations with the valuer on this; he said the biggest bearing here is land size in comparables used. I asked him why the comparables are three bedroom and not four bedrooms and again he pointed this back to land size. He stated in his opinion most three bedrooms will also have a study and second living area too, so land and total construction size become the reason for the valuation pricing again in his opinion.”
Obviously the valuer had no clue and was jaded, the three bedroom houses he was comparing to were roughly 20sq, they barely had enough room for three bedrooms and two living areas. Even after I provided comparable sales reflecting four bedrooms on 400sq in the same estate he still refused to budge and simply used the worst possible houses in different sub par estates with poor finishes.
Add to all this that I have sold several properties in the area for over $410,000 including a couple I bought myself however as these projects were house and land they did not appear on any comparable sales reports.
This email is not about me, but I have a principal in my business which means I only sell what I would personally buy, and that’s exactly what I did, I bought a 400sq block one street over and built the same house, last month I decided to refinance it and the valuation came it at $450,000. Doreen and in particular Laurimar has had continual growth even during the last few years, but I don’t believe it has gone up by some 25%
Fortunately the client gave little weight to the valuation, he did his own homework and realised it was a bargain, equally fortunate is that the client had enough cash to cover the difference.
That’s a horrifying $90,000 difference that could have easily scared a client off not just me but off investing for ever.
I completely respect valuations are required and I feel proud of what I do when I hear about other companies that heavily load properties getting adverse valuations but the above example is as true as it is ludicrous and my main concern here is that it could have easily jaded my client which possibly means when we wind the clock forward twenty years he ends up retiring broke simply due to one idiot’s reckless and unaccountable actions
If you would like to comment on the debate, contact: <a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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