The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

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?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

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A growing number of land developers are conspiring to advertise high-risk house and unregistered land packages that hasn’t been titled by local councils.
Inexperienced first-time buyers need to beware before purchasing these properties.
Buyer’s agency DPP Property founder Zaki Ameer warns that when developers promote unregistered land, there’s usually a hidden risk attached.
First-time buyers may be conned into paying deposits for the packages with the aim of utilising the $25,000 HomeBuilder grant, which will finish at the end of this year.
However, in most cases, councils delay title processing on unregistered land, often up to 12 to 18 months.
“So, immediately, [first-time homebuyers] are giving back $25,000 on any savings they might have made on the package”, Ameer said.
Buyers are also locked into the contract until the full payment due date, which could be up to 48 months away, leaving them at risk of being sued by developers and builders if they have to forfeit the land purchase.
Ameer is calling for state governments to tighten land sale regulations, especially to first time home buyers who can easily fall prey to colourful marketing tactics.
The DPP Property founder also hopes governments put an end to delayed settlements.
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j.ballantyne1990-6AQqhLzZaK

First home buyers urged to avoid buying unregistered land

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Sales results from 195 projects representing a sample of 23% of active apartments surveyed across Perth, Brisbane, The Gold Coast, Sydney and Melbourne study areas. 
2,300 projects monitored across all stages of potential new supply.
Data in the second quarter of 2020 (April to June) represents the first full quarter of COVID-19 trading in Australia following measures introduced in March to contain the virus.
Impact on off the plan sales can be seen with the clearance of available stock dropping to 10% as a national average. Whilst this represents a 5 percentage point drop on the previous quarter (which registered 15%), the speed of sale for the quarter remains comparable to the average over the last 18 months (10%).
Prior to COVID19 the apartment market was showing signs of momentum on the back of wider housing market growth. The first signs of impact from COVID-19 are visible in the second quarter, although demand levels have remained at similar levels seen this time last year in Q2 2019 data. 
New Apartment Rents
Data from the Urbis Rental Tracker shows well located new apartments continue to attract a premium over the wider market rent but have also been impacted in the short term by restricted people movement and economic challenges.
New product rents peaked in February in most markets nationally.  Rapid drops in rent were seen in March (6%) and April (3%) as inner-city markets were hit by a halt to in-migration and a spike in listings (average listing volume is 14% up on this time last year).  However, this quickly stabilised in June and July indicating the rental market has been able to adjust to supply and demand conditions rapidly. 
New Apartment Supply
New Project Launches have continued to decline, enabling existing stock to be absorbed. Only 23 new projects launched nationally in Quarter 2 2020 – compared to 60 projects a year ago in Quarter 2 2019.
Data for the first half of 2020 follows a continued downward trend. If the current rate of launches were to continue for the remainder of 2020 this would bring the annual total to around half the volume of projects launched in 2019, which was already half the average of the previous four years.
With the volume launching, in marketing and under construction all diminishing, market attention switches to absorbing newly completed stock. This offers buyers the advantage of viewing the finished product and suits those residents seeking a move in the short term. Owner occupiers were the most active purchaser group in each state surveyed in the quarter.
Across all projects there is an overall reduction in volume selling of 8% compared to this time last year with further reductions in volume to come given the declining launch rate.
Change in volume of apartments selling nationally by project status
While the apartment market adjusts to changing conditions, any associated reduction in housing delivery impacts upon economic activity in the short term and housing supply and affordability in the longer term.  Therefore, we expect stimulus and innovation to be in focus in the year ahead as industry and government seek to sustain housing production throughout the cycle.
This presents opportunities to stimulate build to rent housing supply and more diverse tenure options that help meet the absorption of current stock and affordability needs of customers.
The Melbourne market
Like the national results, speed of sale dropped in Melbourne from 11% of available stock clearing in Q1 2020 to 9% in Q2 2020 as prices held firm.
The apparent resilience of the market, much like the people of Melbourne will continue to be tested throughout the lockdown periods of 2020.
The supply story in Melbourne was mixed for the quarter. The volume of new project sales launches continued to trend down, with only 6 new projects launched in the quarter, compared to a quarterly average of 19 throughout 2019. However, approvals increased in the quarter to levels last seen in Q4 2018.
This bucking of the trend on approvals reflects the proactive response from government in fast-tracking shovel ready projects and the confidence of the development industry in Melbourne’s future.  This is encouraging for supporting future supply as the market recovers ground from the pause on demand placed by border and movement restrictions.
We expect further engagement will benefit housing delivery in this part of the cycle to drive economic activity in the short-term and speed up Melbourne’s response to future changes in demand.
National Build to Rent Insights
There has been an inverse between the build to sell apartment pipeline and that for Build to Rent, with build to sell supply declining and build to rent gaining momentum. 
We have seen decreasing rates of sale of available stock (exacerbated by COVID 19), leading to the increasing supply in apartments. 
Developers are shifting to Build to Rent, as an option to diversify their portfolio and reduce financial risk, while also moving sights quicker while there is minimal traction in the build to sell market.
APARTMENT SALES DOWN IN Q2 BUT SHOWING SIGNS OF RECOVERY New Apartment SalesSales results from 195 projects representing a sample of 23% of active apartments surveyed across Perth, Brisbane, The Gold Coast, Sydney and Melbourne study areas. 2,300 projects monitored across all stages of potential new supply.Data in the second quarter of 2020 (April to June) represents the first full quarter of COVID-19 trading in Australia following measures introduced in March to contain the virus.Impact on off the plan sales can be seen with the clearance of available stock dropping to 10% as a national average. Whilst this represents a 5 percentage point drop on the previous quarter (which registered 15%), the speed of sale for the quarter remains comparable to the average over the last 18 months (10%).Prior to COVID19 the apartment market was showing signs of momentum on the back of wider housing market growth. The first signs of impact from COVID-19 are visible in the second quarter, although demand levels have remained at similar levels seen this time last year in Q2 2019 data. New Apartment RentsData from the Urbis Rental Tracker shows well located new apartments continue to attract a premium over the wider market rent but have also been impacted in the short term by restricted people movement and economic challenges.New product rents peaked in February in most markets nationally.  Rapid drops in rent were seen in March (6%) and April (3%) as inner-city markets were hit by a halt to in-migration and a spike in listings (average listing volume is 14% up on this time last year).  However, this quickly stabilised in June and July indicating the rental market has been able to adjust to supply and demand conditions rapidly. New Apartment SupplyNew Project Launches have continued to decline, enabling existing stock to be absorbed. Only 23 new projects launched nationally in Quarter 2 2020 – compared to 60 projects a year ago in Quarter 2 2019.Data for the first half of 2020 follows a continued downward trend. If the current rate of launches were to continue for the remainder of 2020 this would bring the annual total to around half the volume of projects launched in 2019, which was already half the average of the previous four years.With the volume launching, in marketing and under construction all diminishing, market attention switches to absorbing newly completed stock. This offers buyers the advantage of viewing the finished product and suits those residents seeking a move in the short term. Owner occupiers were the most active purchaser group in each state surveyed in the quarter.Across all projects there is an overall reduction in volume selling of 8% compared to this time last year with further reductions in volume to come given the declining launch rate.Change in volume of apartments selling nationally by project statusWhile the apartment market adjusts to changing conditions, any associated reduction in housing delivery impacts upon economic activity in the short term and housing supply and affordability in the longer term.  Therefore, we expect stimulus and innovation to be in focus in the year ahead as industry and government seek to sustain housing production throughout the cycle.This presents opportunities to stimulate build to rent housing supply and more diverse tenure options that help meet the absorption of current stock and affordability needs of customers.The Melbourne marketLike the national results, speed of sale dropped in Melbourne from 11% of available stock clearing in Q1 2020 to 9% in Q2 2020 as prices held firm.The apparent resilience of the market, much like the people of Melbourne will continue to be tested throughout the lockdown periods of 2020.The supply story in Melbourne was mixed for the quarter. The volume of new project sales launches continued to trend down, with only 6 new projects launched in the quarter, compared to a quarterly average of 19 throughout 2019. However, approvals increased in the quarter to levels last seen in Q4 2018.This bucking of the trend on approvals reflects the proactive response from government in fast-tracking shovel ready projects and the confidence of the development industry in Melbourne’s future.  This is encouraging for supporting future supply as the market recovers ground from the pause on demand placed by border and movement restrictions.We expect further engagement will benefit housing delivery in this part of the cycle to drive economic activity in the short-term and speed up Melbourne’s response to future changes in demand. National Build to Rent Insights There has been an inverse between the build to sell apartment pipeline and that for Build to Rent, with build to sell supply declining and build to rent gaining momentum. We have seen decreasing rates of sale of available stock (exacerbated by COVID 19), leading to the increasing supply in apartments. Developers are shifting to Build to Rent, as an option to diversify their portfolio and reduce financial risk, while also moving sights quicker while there is minimal traction in the build to sell market. 
 
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Apartment sales showing signs of recovery: URBIS

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EXPERT OBSERVER
The inner-city Brisbane unit market, already hit hard by unit oversupply, continues to remain a huge danger zone for investors since the advent of COVID-19.
Not only is equity risk the major issue for investors, increased vacancy rates and risk to cash flow are also heavily impacting the market.
According to RiskWise Property Research CEO Doron Peleg, things have not improved in the market since the pandemic hit and, if anything, have become worse.
“RiskWise reported in July 2018 that there were 14,813 units in the pipeline in inner-city Brisbane for the next 24 months, being an addition of 20.1 per cent of the current stock,” Mr Peleg said.
“Two years later and there is still a very high level of supply with 5,431 units in the pipeline, making up an addition of 5.9 per cent of the current stock.”
Pete Wargent, co-founder of Buyers Buyers, a national marketplace now offering affordable buyer’s agent services to all Australians, said that rental demand had been weak for CBD apartments for some time.
“The trend has been exacerbated by the pandemic, and CBD rents have been very soft” Mr Wargent added.
Analysis by RiskWise in 2018 showed unit over-supply in inner-city Brisbane had created weakness in the market leading to an elevated level of risk for investors and, therefore, lower valuations and rising defaults on settlements.
“The issue of oversupply is not a new problem and has been there for a few years and the continuous weakness of the unit market in inner-city Brisbane should raise red flags for developers and lenders,” Mr Peleg said.
“Defaults have been rising and will continue to do so.
“One of the key factors has been developers’ lack of foresight regarding unit oversupply as well as the impact of lending restrictions introduced from 2014. It seems there has been no methodological and structured risk-management approach including identification, assessment, and mitigating action plans to address those risks.
“This takes us back to the feasibility stage which includes the assessment of the projected fair market value and the likelihood of defaults and their potential consequences. Developers and lenders must find the right balance between taking risk and making profit.
“COVID-19 has only served to increase the risk. Currently, there are many high-rise properties being offered to a smaller number of investors. This is because there are less investors in the market due to the pandemic.
“The point is that if developers and lenders had put more proper risk-management practices in place, this could all have been avoided.”
Mr Peleg said it must also be remembered the value of off-the-plan property could decrease between the original contract date and settlement resulting in capital loss, as the equity in the home could be reduced, and this was well known in inner-city Brisbane.
He also stressed that investors buying rental apartments unsuitable for families were taking an enormous gamble, with both equity and cash flow risk expected to materially increase. Serviceability is also a major factor for investors who rely on a stable rental income to cover the costs associated with property and particularly the mortgage.
Mr Wargent of Buyers Buyers said houses for investors often carried significantly lower risk for those with the right budget because renters, especially in the more established suburbs, included families and, in many cases, those with permanent full-time jobs. They were also more likely to deliver good medium and long-term capital growth.
Additionally, as rental properties are not fully substitute products with owner-occupied dwellings, there is inherent risk associated with them as they do not appeal to families looking for three bedrooms, with outdoor space, close to schools, transport, and employment hubs.
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Unit oversupply remains an issue in Brisbane CBD: RiskWise's Doron Peleg

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Aussies want the best of both worlds when it comes to their home loan interest rate, according to new research by Finder.
Finder recently surveyed 1,000 Australians about how they would structure their mortgage if they were to refinance.
The data revealed that 1 in 5 (20%) would opt for a split mortgage, dividing their loan into fixed and variable portions.
Around 19% would refinance to a variable loan, while 17% would prefer to lock in their rate for a set period of time with a fixed-rate mortgage. The remaining 43% said they were unsure if they’d opt for fixed or variable.
Graham Cooke, insights manager at Finder, said that fixed-rate loans come with both risks and benefits.
“With the cash rate set to remain at 0.25% for some time, it’s unlikely the big banks will lower their standard variable mortgage rates any further for now."
“This means fixed-rate loans are back in vogue. For some homeowners, locking in their rate for a year or more may offer greater savings than a variable rate would."
“We’re currently seeing rock-bottom rates across the board with fixed rates as low as 1.95% from Easystreet, and the lowest variable rate even lower at 1.89% from Reduce Home Loans,” he said.
The research found that it’s the younger generations who place the most value on flexibility when it comes to their loan.
Over a quarter of Gen Z (27%) would split their mortgage – more so than any other generation – while Millennials are the most likely to choose a variable loan (23%).
Baby Boomers were more likely to refinance to a fixed rate (19%).
By state, Victorians (23%) are the most likely to choose a variable loan, followed by 1 in 5 NSW residents (20%).
Queenslanders are the most likely to choose either a split loan (25%) or a fixed-rate loan (21%), but the least interested in a variable one (12%).
Would you opt for a fixed rate home loan if you were buying or refinancing?  <img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/5e8a692e-f073-4f7e-ba22-75595725eea4.png" data-imagetype="External">
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Aussies prefer split rate mortgages: Finder

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EXPERT OBSERVER
Consumer confidence continues to improve in September. Sentiment has lifted in four of the past five weeks.
Importantly, households are showing increased appetite for making a major household purchase.
In fact, the ANZ-Roy Morgan sub-index measure of whether it was a ‘good time to buy a major household item’ rose by 5.3 per cent to 1.8 points last week – the highest level since late June.
‘Stay-at-home’ Aussies have shown a strong desire to upgrade their homes during the pandemic. CBA credit and debit card spending on household furnishings and equipment over the week to September 11 is up 28 per cent on a year ago. And annual spending is above 30 per cent across all states and territories except Victoria (up 6.1 per cent).
Post-lockdown retail spending has been boosted by greater mobility, government payments and superannuation withdrawals. And household savings and potential tax cuts – along with closed international borders – could see pent up demand from consumers even as stimulus is tapered into year-end.
What do the reports and figures show?
Consumer sentiment – Week ended September 13
The weekly ANZ-Roy Morgan consumer confidence rating rose by 1.4 per cent to 92.4 (long-run average since 1990 is 112.6). Confidence has lifted in four of the past five weeks. Sentiment is up by 41.5 per cent since hitting record lows of 65.3 on March 29 (lowest since 1973).
Four out of five of the major components of the index rose last week:
The Commonwealth Bank (CBA) credit card data – Week ended September 11
According to Commonwealth Bank (CBA), card spending in the week to September 11 was up 4.7 per cent on a year ago, compared to a 5.2 per cent lift for the week ended September 4. Online spending rose 17.4 per cent on a year ago (previous week: +21.9 per cent), but in-store spending was down 0.6 per cent (previous week: -2.1 per cent). Victorian card spending fell by 11.3 per cent on a year ago (previous week: ‑10.3 per cent), but Tasmanian spending was up 16.4 per cent (previous week: +18.2 per cent) compared to a year ago.
CBA noted, “Annual spending growth in all jurisdictions broadly tracked sideways over the past week. Spending on eating and drinking out has firmed over the week. In‑store spending is edging higher nationally and in Victoria it looks to have passed the trough.”
The Commonwealth Bank (CBA) Household Spending Intentions Series (HSI): August
According to the CBA, “The impact of the stage 4 lockdowns in greater Melbourne throughout August are clearly evident in the CBA Household Spending Intentions series for the month. The improvement seen during July in Home Buying, Retail, Travel, Entertainment and Education spending intentions all stalled in August. Health and Fitness spending intentions picked up in August, while Motor vehicle spending intentions continued to edge higher.”
On home buying intentions: “Home buying spending intentions for August retreated from their July highs. While there was a further increase in home loan applications, Google searches related to home buying declined slightly on the month.”
On retail spending intentions: “Retail spending intentions pulled‑back in August, consistent with our high‑frequency CBA credit/debit card spending data.”
On travel spending intentions: “The recovery in Travel spending intentions stalled in August, impacted by the restrictions imposed in Victoria.”
On health &amp; fitness spending intentions: “Health &amp; fitness spending intentions picked up in August. While actual spending was a little lower on the month, Google searches related to health saw an increase.”
On entertainment spending intentions: “Entertainment spending intentions pulled‑back a little in August, led lower by declines in food (eating out) and alcohol spending on licenced premises.”
On education spending intentions: “Education spending intentions were little changed in August, with some softness in spending and in Google searches for the education sector.”
On motor vehicle purchase intentions: “Motor vehicle spending intentions picked up in August and are back in positive territory for the first time since the start of the Covid‑19 pandemic.”
Kepler index of retail sales activity – Week ended September 13
The Kepler index of retail sales reported that aggregate sales fell by 13.2 per cent last week (September 13) to be down 26.9 per cent on the year. Average transaction value rose 0.1 per cent last week to be up 22.6 per cent on a year ago. Passer-by traffic fell 1.9 per cent last week to be down 52.6 per cent on the year. The weekly store shut down rate rose to 29 per cent (prior week: 27 per cent) with Victoria’s rate at 87 per cent.
OpenTable restaurant reservations – Week ended September 13
Australian restaurant reservations were down 9 per cent on September 13 from a year earlier, firmer than the 40.7 per cent drop recorded on September 6, according to OpenTable. Sit down diners fell by 99.7 per cent in Victoria (previous: -99.9 per cent), but were up by 61.6 per cent in Queensland (previous: up 146 per cent) and up 35.2 per cent in NSW (previous: +127 per cent).
Moovit change in public transport demand – Week ended September 13
Demand for public transportation – as measured by the urban trip planning app Moovit – was mixed over the week to September 13 (compared with the pre-pandemic level of January 15) from a week earlier in most of Australia’s biggest cities:
<ul>
<li>Sydney &amp; NSW: -43.7 per cent (previous week: -43.3 per cent)</li>
<li>Perth: -32.7 per cent (previous week: -36.5 per cent)</li>
<li>Brisbane &amp; South-East Queensland: -41.5 per cent (previous week: -41.1 per cent)</li>
<li>Melbourne &amp; Victoria: -83.1 per cent (previous week: -83 per cent).</li>
</ul>
What are the implications for investors?
Consumer confidence continues to improve due to increasing mobility in virus ‘free’ states and territories. Outside of Sydney and Melbourne, Aussies are more confident about going about their daily activities with the virus all but supressed. The notable weakening in sentiment last week in the two biggest cities and virus ‘hotspots’ – Melbourne (down more than 5 per cent) and Sydney (down over 3 per cent) – suggests that consumer caution remains elevated, weighing on the broader economic recovery.
Next week’s standout data release will be much-anticipated preliminary retail trade figures for August. The CBA Household Spending Intentions survey released today suggests that retail spending intentions pulled back in August. High frequency weekly CBA card spending and the Kepler Analytics retail gauge also imply a decline in spending during the month. Of course, Melbourne entered stage 4 lockdown restrictions in August with Victorian retail spending adversely impacted by social distancing measures and temporary retail store closures. But greater mobility in the ‘virus free’ states and territories are supportive of consumption and could yet offset the decline in Victorian spending.
RYAN FELSMAN is a Senior Economis at CommSec
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Consumer spending intentions hit 11-week high: CommSec's Ryan Felsman

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Investor activity in Warrnambool is currently strong and is forecast to stay strong into the long term, according to the August Herron Todd White (HTW) residential report. 
The valuation firm took a look at investor activity across the nation. 
"Having been crowned Australia’s most liveable region by Ipsos’s annual Life in Metropolitan and Regional Australia report and offering affordable entry into the investment space, especially when compared to other major regional centres, Warrnambool has great prospects moving forward," the valuation firm said. 
Warrnambool provides a bevy of potential investment opportunities, the report suggests. 
Opportunities range from large scale land subdivisions, city infill, renovate and flip, short stay accommodation as well as the relatively affordable new land and house depreciation path. 
"While larger scale development and investment remains dominated by out of town money, the overall investment landscape is still in favour of the local," the valuation firm said. 
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Most recently, Warrnambool has seen a strong investment drive for the acquisition of larger allotments vacant or featuring older, low quality dwellings, the report suggests. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/7/warrnambool%201.jpg" alt="">
A prime example of this is the centrally located <a href="https://www.realestate.com.au/sold/property-house-vic-warrnambool-132326478" target="_blank">53E Lava Street, Warrnambool</a> (pictured above).
It was sold for $442,500 on 13 December 2019. 
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Set on approximately 888 square metres and comprising two titles, this property also featured an older, conite clad, two-bedroom dwelling providing a very basic standard of accommodation.
Also representative of this demand is 212 Merri Street, Warrnambool ($400,000 on 18 May 2020). 
This property is situated opposite the Warrnambool train station and features a two-bedroom dwelling of average condition set on an allotment of approximately 1,541 square metres.
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Warrnambool investor activity to stay strong: HTW residential 

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A home in the north-eastern Adelaide suburb of Windsor Gardens has been listed for mortgagee sale.
The four-bedroom, two-bathroom home is being offered at $550,000.
Located at 14 Hart Street, the thoughtfully-designed home is set on a 469 sqm block.
Its offerings include a low maintenance yard with a swimming pool and combined spa, and an alfresco entertaining area.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-09%20at%202.44.32%20pm.png" alt="">
According to CoreLogic data, the median house price in Windsor Gardens is $468,000.
The property is located less than 10 kilometres to the CBD, vibrant North Adelaide and quality primary and secondary schools.
Boffo Real Estate’s Jimmy Wu and Carlos Carosi hold the listing.
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Mortgagee home in Adelaide's Windsor Gardens listed

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A mortgagee unit in Bruce, ACT has come onto the market.
Set on a 136sqm block, the property offers three bedrooms and two bathrooms.
The home is listed with a price tag of $650,000, well above the median value price for units in Bruce at $442,203, according to CoreLogic.
Situated at 30/101 Kinloch Circuit, the home offers two courtyards, private alfresco area, dark panel flooring and a walk-in pantry.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-09%20at%202.27.14%20pm.png" alt="">
The two-storey unit is only one kilometre to the University of Canberra and an eight minute drive to Westfield Belconnen.
The home is listed through the real estate agency buyMyplace.
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Two storey Bruce, ACT mortgagee unit listed

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A mortgagee property in Western Australia’s Greenfields has come onto the market.
The three-bedroom, one-bathroom home has been listed with hopes of between $190,000 and $200,000.
Located at 4 Lorikeet Court, the 703 sqm block is situated at the end of a quiet cul-de-sac.
The property’s offerings include a large enclosed patio room, storage sheds and decent yard area.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-09%20at%202.10.20%20pm.png" alt="">
It last traded for $260,000 in 2014.
The home is in close proximity to the amenities in Mandurah, as well as being less than an hour to Perth.
Acton agent Greg Kent has the listing.
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Greenfields, Western Australia mortgagee home listed for $200,000 

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Struggling airline Qantas are set to sub-lease half of its Mascot HQ in an attempt to continue to cut costs.
They're trying to get $9 million for the two standalone Bourke Road spaces, offered at $450 per sqm for the 20,000 sqm of space.
Qantas will be retaining the head lease for another 12 years, from the building owners Cromwell Property Group.
The two buildings, part of four which house Qantas staff, have just undergone a full fitout.
One building has 14,690 sqm of office space across six levels, which if leased separately at $450 per sqm would equate to $6.61 million.
There is the option to lease each floor separately.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/15/Qantas%201%20copy.jpg" alt="">
There's just over 5,000 sqm of space in the other two level building next door, will be leased in one line. That would be $2.26 million per annum.
Colliers International agents Michael Crombie and Neil Murray are marketing the sub-lease.
“These are two of the best buildings in Mascot, occupied and recently refurbished to a very high standard for one of Australia’s leading companies, and are now being offered at highly competitive rates of around $450 per sqm gross effective rent,” Mr Crombie said.
“We are seeing an increasing number of Sydney CBD and fringe tenants looking at South Sydney as a great alternative, we still have incredible access to rail and amenities, yet the rent will be the major selling point, especially when occupiers see the quality of this fit out. 
Colliers have also listed for sub-lease 2,000 sqm of space in Melbourne's 333 Collins Street, as well as 1,500 sqm at the Qantas Premium Contact Centre in Hobart.
 
 
 
 
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