Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Joel Robinson

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

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

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

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

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

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

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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<div id="profile_stats">
Founder, Rockpool Group
Born in: Sydney
Friends: <a href="https://www.propertyobserver.com.au/https://www.thepowerindex.com.au/business-bosses/alan-joyce/201206201425">Alan Joyce</a> | <a href="https://www.propertyobserver.com.au/https://www.thepowerindex.com.au/business-bosses/james-packer/201206111420">James Packer</a> | Heston Blumenthal | Thomas Keller | <a href="https://www.thepowerindex.com.au/food/kylie-kwong">Kylie Kwong</a>
Home town: Sydney
</div>
You can't escape Neil Perry – even if you want to.
His Rockpool Group runs eight venues across three states, which have garnered 11 Good Food Guide hats between them. For nearly a decade he's been popping up on our TV screens and in our magazines. Even in the air you're eating Perry's tucker, thanks to his 16-year relationship with Qantas. Add in his connections with James Packer’s Crown, and you'd be hard pressed to find an industry Perry hasn't dipped his finger into for a taste.
But it's his famous ponytail that most Australians remember him for.
"I'm getting to the stage where I’m thinking, 'Should I be cutting it off?" but I just can't think of any other look,” the ex-hairdressing apprentice says, laughing down the phone line . “Single-minded, you see. It's been part of a brand for me. I didn't think of it that way, but I've become synonymous with it in the industry."
With over 30 years working in hospitality, the Rockpool founder has become synonymous with a lot of things: Modern Australian and Asian cooking. Steaks. Relationships with the big end of town. A love for quality Australian produce. And a one-eyed obsession about everything he does.
Food industry insiders say Perry exists in his own world: “Planet Perry”. “We're very single minded about what we do and I think you've got to be to be successful,” admits Perry. “Sometimes people say I'm arrogant or whatever. That generally comes across [because of] just not having enough time to do the things I'd like to do.”
What he does like to do is open successful restaurants -- although he’s had his fair share of unsuccessful ones over the years. His Rockpool Group runs three restaurants in Sydney (Rockpool on George, Rockpool Bar &amp; Grill and Spice Temple), four in Melbourne (Rockpool Bar &amp; Grill, Spice Temple, The Waiting Room and Rosetta, which opens September 14) and one in Perth (Rockpool Bar &amp; Grill). The company is budgeting to spend $26 million on staff wages in 2013.
The location of Rockpool’s venues also hints at Perry’s powerful connections. As one food reviewer puts it: “Half of their restaurants are in a hideous, disgusting casino.” All of Perry’s Melbourne restaurants are located in the Crown Casino complex. His Perth restaurant sits in the Burswood Entertainment Complex, a casino and entertainment complex owned by Crown Limited.
Plus, flagstaff restaurant Rockpool on George is widely assumed to be a loss leader, helpful for gaining foodie cred, but useless at making money. Instead it's the highly profitable relationship with Crown – which gives support in the form of cheap rent, fit-out and marketing support – that helps make his restaurants so successful.
Not that he hides his gambling connections. Perry names James Packer as one of his business mentors: “James is just fantastic and has been very generous with his time and advice.”
There's a strong relationship between the two businesses. “I sort of think that Rockpool Bar &amp; Grill brand and Spice Temple co-exist with the Crown brand," says Perry. That's particularly interesting since Crown just announced a Crown Towers hotel in Perth and a new entertainment precinct in Sydney's Banagaroo.
Since 1996 Perry and his Rockpool Consulting team have determined what travellers dig in to while onboard a Qantas flight. Six full time staff work on the project all year long, examining the strengths and weaknesses of catering centres around the airports of the world. Former Qantas CEO Geoff Dixon and current CEO Alan Joyce are the other two names that come up when Perry talks about his mentors.
But Perry is also known for his own mentoring role. His passion for Aussie produce has meant he’s pushed the careers of several now well-known farmers, seafood producers and growers. “The amount of Australian food producers that he has supported along the way is a reflection of his influence and power,” declares chef Kylie Kwong.
As a former apprentice of Perry’s, Kwong is just one of many of Perry’s “young disciples” -- as she calls them -- to have gone on to run their own restaurants. Others include Ross Lusted from The Bridge Room and Mike McEnearney from Kitchen by Mike. Perry is known for paying staff well and many are deeply loyal to him.
His personal endorsements and media appearances have also helped make him a wealthy man. Perry's six cookbooks are beloved by foodies and home cooks alike and he pens a weekly column for Fairfax’s Good Weekend magazine.
Although Perry’s longevity is impressive, Rockpool’s restaurants no long appear in the San Pellegrino Top 50 lists. Perry was credited as one of the pioneers of the Modern Australian food movement, but several restaurant reviewers and food writers tell The Power Index that younger chefs and other restaurants push the boundaries more than Perry and his venues these days.
Not that the 55-year-old is complaining. Ultimately he sees himself more as a restaurateur than a chef, and he’s planning to open five more venues in the next five years.
Rockpool can live on without its founder, claims Perry. “I try and build restaurants in their own right to stand for an experience and stand for quality and value, and that's why I don’t have a restaurant called Neil Perry or plates with my name on it, which I think is a bit of a doomsday situation.
His 18-year-old daughter already works at Rockpool and his other children express interest in continuing the family business, although Perry quips that he'd prefer them to be doctors. No word on who'll carry on the ponytail tradition.
This article originally appeared on <a target="_blank" href="https://www.thepowerindex.com.au/">The Power Index.</a>
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Neil Perry planning to open five more restaurants in next five years

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New home sales got off to a bad start in the new financial year, with July sales down 5.6% following three consecutive months of modest but rising sales, according to the latest HIA New Home Sales report.
The HIA recorded just over 4,000 new home sales over the month, compared with more than 5,500 in June, based on its monthly survey of Australia's largest volume builders.
Three years ago monthly new home sales were close to 8,000, peaking at around 8,600 in August 2009 helped by the federal government-funded first-home buyer boost, which ran from October 2008 to December 2009, providing a bonus $7,000 for those first-home buyers who bought a new home, on top of the $7,000 for all first-home buyers.
Over July the HIA recorded a 5.5% fall in the “persistently weak detached housing segment”, with a 6.4% drop in the more volatile multi-unit market.
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Across the major markets, Queensland was the only state to buck the trend, with a seasonally adjusted rise of 11.1% in detached new home sales in July.
New detached house sales fell by 6% in New South Wales, 4.6% in Victoria, 8.9% in South Australia, and 14.4% in Western Australia.
“New home building is the weakest sector of the Australian economy. Despite interest rate cuts in 2011-12, the two updates for this financial year – new home sales and the Australian Industry Group- HIA Performance of Construction Index – both point to deteriorating conditions in July," says HIA chief economist Dr Harley Dale.
“Now is a good time to build a home. Interest rates are lower, it’s a very competitive market, and there is less pressure on skilled labour availability.
"However, consistently weak consumer (and business) confidence is weighing very heavily on new housing investment, far more so than is the case for retail expenditure," Dale says.
“Combine that low confidence with very tight credit conditions and excessive taxation, and you have the unpalatable recipe for the recessionary conditions facing new housing.
“Leading indicators suggest this situation will persist well into 2012/13," says Dale.
More insights into the state of new home building will be revealed when ABS building approval figures for July are released on Thursday.
In June the ABS recorded a 1.1% seasonally adjusted fall in approvals for private sector houses, but with rises in Queensland (5.3%), Western Australia (4.4%) and South Australia (0.4%).
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lschlesinger-FZcF9M3vE6

Queensland the only bright spot as new home sales fall 5.6% in July: HIA

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Melbourne recorded $629.5 million worth of commercial office CBD investment sales over the first six months of year, trumping Sydney, which managed $478.6 million of sales, according to new research by Colliers International of sales worth $20 million or more.
The biggest whole asset sale in Melbourne over the first six months of the year was 150 Collins Street, which was purchased by GPT Wholesale Office Fund for $181 million on a yield of 6.77%.
Sydney’s most expensive single asset sale was Macquarie Bank’s $131 million vacant possession purchase of 48 Martin Place on yield around 7% and 7.5% (as estimated by Knight Frank).
The only premium-grade asset sale in Sydney during the first half of 2012 was the 25% acquisition of 126 Phillip Street for $176 million by Investa Commercial Fund from Investa on a yield of 6.35%.
Of the two office markets, Sydney has the brighter short-term outlook, with Melbourne's vacancy rate expected to continue to rise.
Colliers says that despite a large number of buyers chasing better-quality assets across Melbourne’s CBD office market, “the short-term outlook for transaction volumes remains subdued”.
“This is a function of the lack of investment-grade stock on the market for sale, as opposed to low levels of demand.
“As a result we expect face rents to remain stable while incentives will experience further increase, as landlords look to offer more to attract and secure tenants. This will in turn lead to further declines in effective rents across all grades over the next 12 months.”
In the case of the Sydney CBD market, Colliers expects leasing and tenant enquiry activity to remain “buoyant from smaller non-CBD based tenants who are looking to take advantage of softer market conditions to evaluate and upgrade their tenancies”.
“Limited supply entering the market and positive absorption over the remainder of 2012 is expected to see vacancy rates decline across the Sydney CBD office market.
“This is expected to result in subdued rental growth and a stabilisation of incentives over the period.”
The most recent Property Council of Australia office report recorded that the Melbourne CBD office vacancy rate increased from 5.2% to 5.6% from January to July, while Sydney recorded a 1.5 percentage point contraction from 9.7% in January to 8.2% in July – the largest decline of all CBD markets over this period.
Colliers International forecasts the Sydney CBD vacancy rate to decline further over 2012 to 7.9% by January 2013, before rising slightly to 8.2% as of July 2013.
In contrast the Melbourne CBD vacancy rate is expected to trend upwards to peak at 7.5% by July 2013 as 234,000 square metres of new supply comes on board over the next two years – before starting to trend downwards again.
Colliers attributes the decline in the Sydney CBD office vacancy rate to a “distinct lack of supply”, with only 13,225 square metres entering the market over the first six months of the year, combined with a positive absorption result of 45,300 square metres during the period.
Renting premium and A-grade office space in Melbourne remains significantly cheaper than in Sydney.
According to Colliers, top-of-town Melbourne premium office rents range from $480 to $665, with A-grade office rents ranging from $392 to $457.
Premium core Sydney CBD office rents start from $800 to $1,295 while core A-grade rents range from $650 to $820.
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Rental returns are quite similar for premium-grade and A-grade assets in both capital cities.
Premium Sydney office yields have remained stable in six months to July 2012, sitting between 6.25% and 6.75%, while A-grade yields also remained stable during this period, recording between 6.75% and 8.15%.
Premium Melbourne yields also remained stable in six months to July 2012, sitting between 6.50% and 7% while A-grade yields also remained stable during this period, falling in a range between 7% and 7.75%.
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John Marasco, Colliers International managing director of investment services, says Sydney prime grade yields have stabilised, while the yield spread between high- and low-quality secondary-grade assets has continued to widen.
“Quality office buildings, particularly premium and A-grade, that offer a weighted average lease expire (WALE) of four years or greater continue to be in high demand from investors.
“A lack of this type of property on the market for sale has seen sales volumes remain low, and this has led to the stabilisation of prime grade yields during the first half of this year,” he says.
“The outlook for the next six months is overwhelmingly positive, as the number of genuine enquires for investment properties in Sydney’s CBD has increased since the end of the 2011-12 financial year,” he says.
“We predict this will translate into a greater number of assets sold in the second half of 2012, with Sydney ending the year on a definite high.”
Nerida Conisbee, Colliers International national director of research, says Melbourne CBD office property remained highly sought after despite a rising vacancy rate and declining rents, with Premium and A-Grade stock experiencing particularly strong demand.
Marasco says good quality Melbourne CBD assets continue to attract “keen interest and this interest is coming from a range of different buyer types.
“A high proportion of demand is coming from offshore, but there should also be no underestimating the level of active domestic capital.”
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Melbourne trumps Sydney on office investment sales activity but not on short-term outlook: Colliers International

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Both local and offshore commercial property investors have continued to pour money into Australian CBD office assets with around $2.4 billion worth of property changing hands so far in the first six months of 2012, according to new Colliers International research.
Year-to-date national office sales are on a par with the same time last year with Canberra notable for having racked up over $500 million in sales –accounting for a fifth of all investment sales, just behind Melbourne and Sydney.
In its latest series of CBD Office Research &amp; Forecast Reports, Colliers International found that while global economic conditions remain delicate and uncertainty surrounds some leasing markets, investment in Australia’s CBDs remains strong.
Colliers International recorded 34 transactions with a combined value of $2.4 billion for the first six months of 2012, compared with 38 transactions Australia-wide with a combined value of $2.4 billion for the first six months of 2011.
Net effective rental growth was positive in all markets over the past 12 months, with the exception of the Melbourne CBD which recorded a decline, despite positive net absorption in this market.
“Across the board, we are seeing soft tenant demand in our CBD office markets, but this is not being reflected in investment demand, which, in general, is very strong,” says John Marasco, Colliers International managing director of investment services.
Simon Hunt, Colliers International managing director of office leasing, says improved levels of tenant demand are being recorded nationally. “In the first half of the year we saw the gap between mining and non-mining driven markets widening, however, based upon an upswing in enquiry during July, we believe the disparity is unlikely to become any more pronounced in the second half of the year,” Hunt says.
“There are still deals happening in well-positioned and well-presented assets, with options that provide quality fit-outs requiring minimal adjustment leasing well, particularly up to 2,000 square metres
“Despite widely publicised cuts in the finance, retail and manufacturing sectors, the Australian unemployment rate fell in July and is currently at 5.2%. This has been reflected in positive net absorption in all CBD office markets.”
The highlight over the first six months of the year has been Canberra, which has recorded “outstanding investment growth”.
Marasco said Canberra CBD had shown exceptional performance over the first half of 2012, with a marked increase in foreign investment propelling total sales volumes to more than twice the amount record over the entire 2011 calendar year.
“This is the highest volume of foreign transactions in Canberra over the past four years,” Marasco says, with investors particularly attracted to ‘green’ buildings –highly sought after by tenants and in plentiful supply in Canberra.
About 82% ($308.89million) of the total sales volumes in Canberra ($504.07million) were to offshore investors, with the remainder bought by the government.
Steady investor interest has meant that yields for A Grade assets in Canberra have remained unchanged over the last two years, while B Grade assets have reached the bottom of the market cycle in over the first half of 2012.
Recent sales of such assets is 50 Marcus Clarke in Canberra, a 6-Star Green Star and 5 Star NABERS building which sold to CIMB Trust Capital, a Malaysian investor for $226 million - the highest Canberra sale in four years.
“Importantly, it had a 15-year lease to a Government tenant which is another key attraction in the Canberra market – secure cash flow is always in demand.”
Average A-grade net face rents in the Canberra CBD range from $375 to $425 per square metre with yields ranging from 7% to 8%.
According to Colliers, over the next six months eight buildings, comprising around 141,000 square metres of space, are expected to be delivered in the Canberra region with the biggest project being the ASIO Headquarters in the suburb of Parkes currently under construction and which will add 40,000 square metres of space to the Canberra market - representing 26% of the overall new supply anticipated to be delivered over the next twelve months.
A new office development at the St. John’s Ambulance site at 18 Canberra Avenue providing nearly 10,000 square metres of office space has been fully leased to the Department of Human Services. It is being developed by the Doma Group and due for completion in the second half of 2012.
For transactions above $20 million Melbourne had the leading tally of $629.5million, compared to $478.6million of sales recorded in the Sydney CBD.
In the Brisbane CBD, various investor types, namely institutions and foreign buyers, made approximately $408.5million worth of major purchases in the first half of 2012.
Investment-led economic activity in Perth persisted, despite a reported slowing of economic growth in China and a trouble-plagued European Union.
There had been four major transactions in the Perth CBD for the year-to-date, with a total value of $276.3million, with <a href="https://www.propertyobserver.com.au/news/st-georges-terrace-perth-paved-with-bronze-as-office-block-sells-but-for-less-than-last-time/2012082756264">another sale</a> yesterday.
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Government leases draw offshore investors to Canberra in strong six months of CBD office investment: Colliers

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On the one hand, increasing the ability of prospective home owners to get a foot hold in the market is admirable. After all, home ownership in Australia is all but considered a right of citizenship. However, to date, the only way governments have done so is to encourage greater debt levels by way of incentives, lower loan-to-value ratios, negative gearing, low interest rates and so forth.
Consequently, even overpriced homes have looked tempting to emotionally led home buyers who’ve heavily invested their future wealth and income into the principal place of residence. They – along with investors – were more than eager to take advantage of the pre-GFC decade-long property boom stimulated principally by debt. According to RateCity, from a random selection of more than 2,000 home loans in mid-2008, more than a quarter had a loan-to-value ratio of 100% – LVR’s now rarely encountered.
However, the above policies that increased funding without adequate investment in infrastructure to ease supply have pushed property ownership (despite the health of the economy) out the reach for an increasing number of would-be home buyers. We’re now facing a situation where the cost of living and subsequent debt levels against housing are an issue of growing concern.
For market watchers, reading the terrain ahead is somewhat clouded by the emotional aspect to property, hence why so many mis-forecast the measure of percentile change in their predictions.  The essential need for shelter, along with our creative capacity to make the home “a castle”, pins a far greater emphasis on consumer sentiment.
Each sale is the result of a carefully negotiated contract between two parties with differing needs and priorities.  In most cases, it’s a long way from being just a simple business arrangement and shouldn’t be classed as such.  Furthermore, because each property marketed has its own intrinsic qualities – which are valued differently from buyer to buyer – trying to lump residential housing alongside stocks and shares, for example, leads to errors when reading and analysing statistics.
The latest data from Residex has indicated that Australia-wide, there’s been a marginal return to growth in the house-and-land market. The news is often jumped upon as a positive sign of recovery.  However, with overall turnover back at levels not seen since the 1990s, how can we herald it as such?
Residex recorded a marginal improvement in transaction figures, however, not significant enough to prove we’ve turned a corner.  Therefore, the figures feeding into the median are representative of a comparatively small composition of properties selling and most likely stimulated by home buyer sentiment.  Broadly speaking, buyers are still taking a back seat, first-time buyers are hamstrung by stricter lending conditions, and increased supply isn’t providing feasible or affordable options to ease the consequential stagnation.
As an outsider – looking at Australia’s current environment of low interest rates, broadly dormant house prices, coupled with the “on paper” health of the economy – you’d be forgiven for wondering why overall transaction figures are so low. As a home buyer however, the increasing cost of living, as well as a general unease about the future of the economy – despite government and RBA insistence of a prospective “lucky country” outlook – is starting to bite.
Consumer sentiment is further hampered when there’s more circulating disagreement regarding the “boom” or “not so boom” cycle in the resource industry than there is surrounding residential property movements.  It’s not helping reassure Australian buyers or sellers of future market stability or job security.
As if we need further evidence of the above fact, the predominant headline from last week – picked up by every major news outlet – was the significant increase of Australian home owners <a href="https://m.smh.com.au/domain/real-estate-news/home-owners-raid-super-to-pay-mortgage-20120818-24fda">seeking access to their super</a> to fund outstanding home loans.  There’s been a 25% rise in claims between 2011-12 totalling $99.38 million. It’s a worrying statistic.
Meanwhile, the ABS has recorded a 0.1% drop in owner-occupier housing finance for the month of June ,and Westpac’s Consumer Sentiment Survey indicates a drop of 2.5% in August.
 
<hr class="system-pagebreak">
 
There’s general disgruntlement with the current government and as far as the property industry is concerned there remains a healthy standoff between vendor expectation and buyers. Consequently, those wanting to upgrade or downsize are finding themselves unable to make a move through lack of buyer activity and as our population increases, this is causing a mismatch of ownership as downsizers hold onto property too big for their needs and families struggle with an inability to find suitable accommodation in which to upgrade.
The recent census proved the continued downward trend of home ownership figures, which – should it continue – could result in 50% of the population renting within a generation. Along with this, the current strain on both available and affordable rental accommodation is locking a significant proportion out of the property market for the foreseeable future, with renters struggling to service increasing yields – up 50% on the last census figures.
Home owners are also under pressure – median mortgage payments as a percentage of median household income are also on the rise.  ABS data indicates a 4.5% increase since 2006, currently above the broadly accepted stress level of 30%. To cut to the chase – residential property is too expensive for a growing majority – with the cost of shelter depicting more of a ball and chain than a “dream”.
Pundits in the financial and property sphere tend to pump the proposal that all we need to spike a return to growth is a lift in consumer sentiment to enable Australia to get back to its pre-GFC trajectory. However, when you consider the data above, there are some worrying rumblings under the surface that are not going to disappear when the clouds clear.
Whether you see the cup as half full or half empty will no doubt depend on personal circumstance.  We’re not currently looking at market collapse of 40% or so, as witnessed the USA or parts of Europe, due to relatively stable employment.  According to Finch Ratings, default rates are still low by world standards despite a marginal increase Queensland – up 18 basis points to 1.6%. However, the low numbers transacting on property are a concern and producing figures not dissimilar to countries in more dire straits – countries that have witnessed a 40% drop in values.
While a loss on the balance sheet of property prices would cause pain to the economy, the catch-22 is that high property prices are equally unfavourable – increasing the cost of living and leaving less in the pocket for wealth-creating projects to stimulate greater economic recovery.
Australia currently has the world’s highest household debt-to-annual disposable income at around 150%, and despite the movers and shakers in government telling us it’s OK based on debatable “responsible” lending practices, you have to wonder: what will happen when Australia can no longer shelter itself behind a mining boom?
The RBA is not ignorant of the risks outlined above, the fact that is has chosen to address the subject in detail in this year’s annual conference  <a href="https://www.rba.gov.au/publications/confs/2012/index">‘Property Markets and Financial Stability’</a> outlines that lessons reaped from booms and bust cycles in other countries are bringing the risks associated with our highly leveraged housing market to the forefront.
One of the areas addressed in detail is the housing shortage.  It was noted that cities producing an adequate supply of affordable accommodation in the USA had experienced lower long-term inflation in house prices.  The example offered in the study was Atlanta – however, you could equally cite Dallas Fort-Worth.
In 1981 both cities were of a similar size and a similar population growth trajectory as Sydney and Melbourne, yet both Dallas and Atlanta provided cheap land on the outskirts of their city boundaries and unlike Australia, developed adequate infrastructure at the same time (train lines, schools, hospitals etc) to entice their growing population.
In Australia, the limited affordable options open to first-time buyers have been by way of poor planning policies coupled with a lack of adequate investment in infrastructure. Often, the only way home buyers and investors can be incited to soak up the oversupply of “Lego” houses or high-rise rabbit hutches is when they’re lured with generous off-the-plan or new home incentives. Incentives that a significant number regret taking advantage of, when a few years later they find themselves stuck in nowhere land with little capital growth and three-hour commutes into their places of work.
The debate is both endless and tiring, and yet we never seem to move past first post. As always the most vulnerable to be hit are would-be buyers and those who reach retirement either renting or still servicing hefty mortgage repayments.  If we continue on our current path we face some undeniable certainties – certainties an adjustment in interest rates, or “talking up” the economy, will not change.
While some may be satisfied with a life living in rental accommodation rather than opting for ownership, Australia doesn’t have any “long-term” rental strategies to provide this security and protect against rising yields.
You can’t solve the dilemma by building new homes first-home buyers can’t afford to purchase or that are located in areas not suitably supplied with enough essential amenities to inspire relative demand. Furthermore, according to the Australian Taxation Office, self-managed super funds are now the “largest and fastest-growing segment of the super industry” and corresponding data proves a large proportion of this wealth is invested in established residential property – totalling over $14 billion.  In light of this, investment policies affecting the housing sector need to come under greater scrutiny, especially as they predominantly encourage activity in the established market rather than promoting regional growth and investment.
Like it or not, a core part of any housing affordability strategy needs to focus on driving down costs in areas prone to inflation due to heated demand via stimulation in the investment or home buyer sector. There’s inevitably going to be a growing need for social housing and therefore this needs to be integrated within the framework as well as tacking inevitable problems of social residualisation.
Australia once had a dream – a dream for the “right of all Australian people to have access to (land) at fair prices”. However, unless we seriously address the issues above and make serious moves to lower the cost of living and price of housing - that once held dream will become an “unobtainable nightmare” – effectively placing a huge burden on government assisted housing and our future ability to prosper and grow.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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The Australian dream of home ownership becoming unobtainable

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Over the last three years of negotiating with the ATO to achieve an ATO-approved product ruling for our Property Investor Trust ® (PIT®) we have learned a few things that we thought was interesting to share.
Firstly some background information:
The use of privately held trusts in Australia has had a long history dating back many decades. Over the years many taxpayers inadvertently began using trusts incorrectly and in some cases exceeded the boundaries beyond what was acceptable in the eyes of the ATO.
This national exposure led four years ago to the ATO reviewing their position with a specific focus on hybrid trusts. As a result in March 2009 a tax determination was issued TD 2009/17.
Unfortunately the 2009 determination TD 2009/17 created significant confusion and lack of certainty regarding eligible interest tax deductibility in the marketplace at a client, advisor and accounting professional level.
In short it stated that the uncommercial use of trusts could lead to the denial of full interest deductibility on borrowed funds.
Many well-meaning and respected commentators, including accountants, interpreted that to mean that all hybrid trusts were illegal, and many practitioners ceased using hybrid trusts. This was compounded by the fact that many banks also ceased lending to hybrid trusts.
Commerciality means that there must be a motive to make a profit. Some trust deeds were written where they would never make a profit and thus never need to pay tax.
For example, when the property went from negative gearing to positive gearing and tax was due to be paid, some trust deeds allowed an event to occur such that the positive rental was driven else where and no tax was ever payable.
While many hybrid trust deeds did not do this, the ATO took a blanket view and the tax determination in 2009 created sufficient confusion that most people ceased using hybrid trusts. This was a great way for the ATO to win the war without the battle.
While our legal advice, backed up by Queens Counsel was that a properly constructed hybrid trusts was fine and certainly our Property Investor Trust® fell into that category, the tax determination created sufficient confusion that many accountants and commentators argued among themselves. We were divided into two camps: Those for hybrid trusts and those vehemently against hybrid trusts.
In the meantime Andrew Forrest (Twiggy) of Fortesque fame took the ATO to court on a similar matter in respect to his hybrid trust.
Three High Court judges ruled in Forrest’s favour, ruling that interest was fully deductible for monies borrowed to buy income units in his hybrid yrust. However, the ATO argued that apportionment (which was not in its draft ruling issued at the time) was not considered in the Forrest case and retained its position in the final tax determination TD2009/17.
Apportionment is when interest deduction is not fully allowable and maybe restricted to the net rental received by the taxpayer where the unit holder was not entitled to both income and capital.
A tax determination is not law, and it’s simply the judges’ view.
Of all the thousands of cases that end up in court it’s been reported that the ATO only wins approximately 50%. That excludes the thousands of cases where the taxpayer had simply conceded without a fight even though they may have been legally correct but did not have the financial means to see it through the courts.
 However the tax determination created enough confusion that those who were conservative in nature simply followed the tax determination and the ATO would have succeeded in stopping something that would have taken years to pass through Parliament.
Tax determinations, whether they are legally correct or not, is a cost-effective and practical tool for the ATO to achieve its means.
The ATO product ruling granted to the Chan &amp; Naylor Property Investor Trust® brings certainty to the community and opens the way for others to pursue this course if they believe that holding a property in a trust is for them.
This will have also opened the door for many banks to once again begin lending to hybrid trusts. Certainly the banks are lending to our PIT®, with the evidence of an ATO approved product ruling behind it.
This will have huge positive ramifications for property investors in Australia.
Is a “product ruling” the same as a “private ruling?”
A “product ruling” is NOT the same as a “private ruling”. While some have been able to achieve a private ruling for themselves this is not automatically transferable to another taxpayer. Relying on someone else’s private ruling in the hope that the ATO will also see your situation in the same light and the same facts is not recommended.
A private ruling is specific to the individual taxpayer and may not be relied upon by another taxpayer.
A product ruling such as the Chan &amp; Naylor product ruling on the Property Investor Trust® is an approval on the product itself and is applicable for all who own a Property Investor Trust Deed® as long as the ATO conditions are followed strictly.
Our negotiations with the ATO have reviewed some major points (among many smaller ones) they wanted to see in one’s trust deed:
<ol>
<li>There needed to be a fixed entitlement to both income and capital. Many trust deeds were not clear and left open the ability for the trustee to distribute income and capital at their discretion.</li>
<li>The income units needed to have some capital/market value attached to it</li>
<li>The ATO would apportion the interest deduction if there was not a definitive fixed entitlement to both income and capital, meaning they would not allow interest deductions in full and maybe restrict it to the net rental income of the property.</li>
<li>There must be commerciality in your dealings, meaning there must be an intent to make a profit, albeit it could be at a later date. </li>
</ol>
In summary, the ATO will apportion the interest deduction if someone other than the taxpayer can or will benefit from the transaction.
We hope this article helps you understand the background to the ATO’s challenge to hybrid trusts and in so doing assist you in structuring your affairs correctly.
 Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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What we learned from the ATO about property and hybrid trusts

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Unfortunately, you simply can't avoid experiencing some pain whenever structural changes occur within the economy.
However, these changes also provide considerable opportunities for the shrewd commercial property investor. But more on that later.
The reality
It is a huge mistake when governments rush to provide financial support to declining manufacturing industries.
Clearly, those industries will never sustain a profitable position, given Australia's relatively small population, and the consequential short production runs.
The sad reality is that some companies need to be allowed to fail (or be absorbed) so the more competitive and profitable companies can become more productive.
The unemployment truth
There has been much publicity given to recent layoffs from companies downsizing. But interestingly, unemployment levels have remained steady — and in some months, even fallen.
Sure, the mining sector is chasing more employees — to the point of having to "import" them. But not all those laid off are heading west or north. And besides, the mining boom will not continue for ever.
Looking deeper 
As such, there must be something else going on within the Australian economy that is helping to sustain growth now, and into the future.
<img src="/images/stories/2012/08/langaug27.gif">
Source: <a href="https://www.afr.com.au/" target="_blank">Australian Financial Review</a>
And the above graph provides you with the answer.
The sector-by-sector comparison shows that services alone currently contribute around 77% of Australia's GDP.
And manufacturing, mining and agriculture combined are contributing only about 23% of GDP.
Looking forward
Therefore, Australia needs to focus upon its obvious strength — providing highly educated specialist skills to local and overseas markets.
For example, our mining firms have not flourished simply because Australia has resources, which the rest of the world needs.
Much of the profit stems from the cutting-edge engineering solutions adopted by our companies — which have provided them with clear cost advantages.
Furthermore, many of the world's breakthrough technologies and techniques have been developed by Australian scientists, doctors, engineers, architects and the like.
Bottom line: This is where governments need to be investing heavily — rather than propping up failing industries with little or no competitive advantage.
Compared to many Western countries, Australia already punches well above its weight for productivity in the knowledge and service sectors.
And for commercial property investors, this surging service sector will always be needing offices, design studios and related accommodation into the foreseeable future.
That augers well for the suburban strata-office market.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Suburban strata office market looking good for commercial property investors

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Modern journalism is about sitting around twiddling your thumbs, before springing to life whenever a media handout from a company or lobby group comes across your desk. 
This is when 21st-century journalists earn their pay. Quickly and expertly, they stylishly re-write the press release. Job done. Then it’s off to the cafeteria for another coffee. 
Surveys have found that most of the articles in newspapers today are press release re-writes. I track the output of hacks writing about real estate for big-city newspapers and find that many never stray from the easy-street path of regurgitating propaganda from industry groups. All their articles have just one source: the individual or organization who sent in the press release. 
This is how the idea of “a housing shortage crisis” has come to be accepted as fact by media outlets around Australia. 
The people who send them press releases say it’s the case, so why would they doubt it. 
Here’s the problem. It’s a lie. Not a mistake, but a lie – one that has been carefully and obsessively constructed by vested interests over several years. 
There is no shortage. Indeed, all the evidence contradicts it. The evidence is so compelling that there is only one explanation for journalists’ inability to see it: extraordinary incompetence and laziness in equal measure. 
The argument put forward, almost daily, by the building industry is that Australia is not building enough new homes. Their talking heads claim there is strong demand but the nation has failed to satisfy that demand, to the extent that we have a shortfall of over 200,000 homes. I keep asking where those 200,000-plus households are living (under bridges? in tents?), but no one has an answer. 
Economic laws dictate that this means we should have rising prices and rents. Indeed, given the serious nature of the shortage – usually characterised as “chronic” – prices and rents must be soaring, with double-digit annual growth. 
But the opposite has happened. Prices, generally speaking, have fallen in all our major cities over the past two years. Strong demand, a chronic shortage, yet prices have fallen. Have we slipped into a parallel universe? 
Vacancies in many parts of Australia tend towards the low side of the 3% mark considered to be a balanced market, but not by a great margin. In “a chronic housing shortage crisis” vacancies would be near zero, but the average across Australia is around 2%, according to SQM Research. 
Here’s further evidence: In several of Australia’s biggest residential markets, including Melbourne, Sydney and the Gold Coast, developers are offering incentives to induce consumers to buy their products. Free tropical getaways, new cars, fees waived, all kinds of monetary inducements. 
Why? Because they can’t shift their product any other way. There are too many new dwellings and not enough demand.
 
 
<hr class="system-pagebreak">
 
The weakest part of the “housing shortage crisis” argument is the way the industry comes up with its figures. It compares how many houses have been built with how many “should have” been built. They call this latter figure “underlying demand”, which some media sources accept as gospel but which is, in fact, a piece of self-serving speculation. 
The reality is that the number of houses built is dictated by consumer demand. When a first-home buyer secures a block of land and puts in a building application, a new dwelling gets built. If 1,000 new homes are built in a given area, it’s because consumers have directly demanded that number. It’s ridiculous to claim that 2,000 “should have” been built. Where’s the demand for the extra 1,000? 
The final nail in the coffin of the shortage argument is this simple question: if the building industry genuinely believes there is unsatisfied demand for new houses, why don’t builders construct more houses? That’s their function in society, isn’t it? Stop whingeing and start building. 
But in many of Queensland’s major markets there are already too many dwellings, particularly new apartments and townhouses. The Gold Coast, the Sunshine Coast, the Fraser Coast, Townsville, the Whitsundays and Cairns all fit this category. Prices today are lower than they were five years in many of these places. 
In Surfers Paradise, the median unit price has dropped almost 10% in five years. In Noosa, the median today is 22% lower than it was in 2007. 
A shortage? Get real. 
Recently I saw a stark example of how the shortage propaganda comes to be accepted as fact. 
Someone sent off a press release that claimed north-east Victoria was in “a housing crisis”. Population growth was set to far outstrip building starts over the next 20 years. Demand would artificially inflate rents and push many people into tenancies and mortgages they cannot afford. Homelessness and demand on public housing would worsen. 
Naturally, The Border Mail newspaper in Albury-Wodonga published it all as fact, under a headline that screamed “Housing crisis to get worse”. 
But note that the “housing crisis” and all those nightmarish consequences are nothing more than a prediction by an organisation that consults to the building industry. It’s all based on someone’s forecast that the region won’t build enough houses over the next 20 years. Do they have a crystal ball?  A time machine? 
I can’t think of a part of Australia less likely to have a chronic shortage than Albury-Wodonga. There’s buckets of land available, with local councils eager to facilitate new development. The Wodonga Council has just published plans for a new town of 35,000 to cater for demand over the next 40 years. Other locales that are part of the twin border cities are projected to grow exponentially over the next 30 years, including Thurgoona and Wirlinga. 
So there’s no land shortage. And affordability isn’t a major issue: the median house price for North Albury is $195,000, while Lavington, Wodonga and West Wodonga are all typically priced in the low-to-mid $200,000s. 
Housing crisis? This is the worst kind of fiction.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
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Australia's so-called housing shortage is a lie constructed by vested interests

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Property Observer has scoured the most well-known mortgage comparison websites to determine the lowest variable rate home loan and one- and three-year fixed home loans currently available.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of August 27:
Lowest variable rate offerings:
<table cellpadding="0" cellspacing="0" border="1" width="470"><tbody>
<tr>
<td valign="top" width="158">
Provider
</td>
<td valign="top" width="151">
Loan name
</td>
<td valign="top" width="123">
Rate
</td>
<td valign="top" width="132">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="158">
UBank (NAB)
</td>
<td valign="top" width="151">
UHomeloan Refinance
</td>
<td valign="top" width="123">
5.62%
</td>
<td valign="top" width="132">
5.62%
</td>
</tr>
<tr>
<td valign="top" width="158">
Nationwide Mortgage
</td>
<td valign="top" width="151">
True Saver Home Loan
</td>
<td valign="top" width="123">
5.65%
</td>
<td valign="top" width="132">
5.65%
</td>
</tr>
<tr>
<td valign="top" width="158">
Loans.com.au
</td>
<td valign="top" width="151">
Dream Catcher
</td>
<td valign="top" width="123">
5.65%
</td>
<td valign="top" width="132">
6.02%
</td>
</tr>
<tr>
<td valign="top" width="158">
My mortgage freedom.com.au
</td>
<td valign="top" width="151">
My mortgage freedom
</td>
<td valign="top" width="123">
5.66%
</td>
<td valign="top" width="132">
5.97%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table cellpadding="0" cellspacing="0" border="1" width="470"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
V Plus Home Loans
</td>
<td valign="top" width="123">
V Plus 1 Year fixed
</td>
<td valign="top" width="95">
5.44%
</td>
<td valign="top" width="114">
5.74%
</td>
</tr>
<tr>
<td valign="top" width="137">
My mortgage freedom.com.au
</td>
<td valign="top" width="123">
My mortgage freedom. fixed rate
</td>
<td valign="top" width="95">
5.44%
</td>
<td valign="top" width="114">
6.06%
</td>
</tr>
<tr>
<td valign="top" width="137">
Reduce Home Loans
</td>
<td valign="top" width="123">
Reduce Fee Free 1 Year Fixed Rate
</td>
<td valign="top" width="95">
5.54%
</td>
<td valign="top" width="114">
6.16%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank (NAB)
</td>
<td valign="top" width="123">
UHomeLoan for Refinance – Fixed Rate Loan
</td>
<td valign="top" width="95">
5.58%
</td>
<td valign="top" width="114">
5.81%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table cellpadding="0" cellspacing="0" border="1" width="470"><tbody>
<tr>
<td valign="top" width="133">
Provider
</td>
<td valign="top" width="133">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="108">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="133">
V Plus Home Loans
</td>
<td valign="top" width="133">
V Plus 3 Year fixed
</td>
<td valign="top" width="97">
5.44%
</td>
<td valign="top" width="108">
5.70%
</td>
</tr>
<tr>
<td valign="top" width="133">
My mortgage freedom.com.au
</td>
<td valign="top" width="133">
My mortgage freedom. fixed rate
</td>
<td valign="top" width="97">
5.44%
</td>
<td valign="top" width="108">
6.06%
</td>
</tr>
<tr>
<td valign="top" width="133">
UBank (NAB)
</td>
<td valign="top" width="133">
UHomeLoan for Refinance – Fixed Rate Loan
</td>
<td valign="top" width="97">
5.54%
</td>
<td valign="top" width="108">
5.69%
</td>
</tr>
<tr>
<td valign="top" width="133">
Bank of Queensland
</td>
<td valign="top" width="133">
3 Year Fixed Loan
</td>
<td valign="top" width="97">
5.55%
</td>
<td valign="top" width="108">
6.67%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
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Lowest rate home loan offerings from 5.44%: Fixed and variable as of August 27

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In this post I am going to look at the links between project websites, pre-sales, and the importance of display materials.
Firstly I wanted to briefly outline how the site can be used to support an ROI (registration of interest) campaign. I also want to reinforce how essential it is for small projects to accurately target key markets, which will help appreciate the role of online activity. Because no matter how good a website looks, or how well it is constructed, there is a need to create awareness of the site, as it is not a source but a medium of enquiry.
The real estate industry is one of the largest users of online advertising, with an ever-increasing level of spending. Real estate was one of the first industries to exploit this media, and so we have already established a wealth of experience. Now the big changes taking place revolve around how funds are spent online.
Project marketing online expenditure usually involves email, commonly referred to as eDM (electronic direct marketing), targeted display advertising on the major property portals, paid search such as Google AdWords, organic search (search engine optimisation), video – usually via YouTube –and online audio or podcasts.
The understanding of how to benefit from online advertising is still evolving. The main reason for this stems from the reality that this is not a simple formula- or template-driven environment. We are dealing with a highly literate and experienced audience, therefore it is exactly the opposite.
There has been a big increase in the number of projects using ROI campaigns with the aim of securing pre-sales, in particular the sale of apartments off the plan. However, despite the popularity of ROI campaigns, I feel it is timely to emphasise that a solid framework built around a complete strategy is required. An experienced sales team should always have an existing quality database that can be a solid launch point.
Key aspects of ROI campaigns
While there can always be some buyer resistance in gaining pre-sales, there are also strong buyer motivations that can help to make the process worthwhile. Timing and the use of a well-structured website will be essential for the project to gain traction.
By comparison with larger projects, the motivation of buyers interested in small projects is frequently far less speculative. This group may well include experienced buyers looking for a particular area, or buyers driven by very specific lifestyle considerations.
While such buyers may not be easy to identify, during the course of a ROI campaign, they can be engaged via quality communications, including a well-managed online campaign and website to capture the leads.
At the start of such projects the value of existing quality databases will, as already highlighted, be an obvious advantage.
However, any database will only be of value if it is up-to-date and matches the needs of those who have taken time and effort to register. Because we are dealing with a smaller number of potential buyers, communication needs to be constructed with care, and a general scattered approach is a big negative. Our target may well lose interest if ongoing contact is poorly managed.
ROI campaigns will suffer if the marketing is not in tune with local conditions and buyers’ expectations. Flawed timing and inaccurate collateral would be a costly mistake. This is where we also start to see an overlap with the display material that will be required to support a small project.
I also stress that the same “rules” will still apply even when a small project, by its very nature, has a strong level of pent-up demand. While the buyers might not be camping on the streets, from a marketing perspective, they still share one important facet and this relates to the timing and accuracy of information available.
A major CBD apartment project can be flexible or staged, and the potential buyers will normally have more choice. Buyers can also take their time and possibly cherry-pick available stock, but in a small project this will not be the case. Once buyers have been attracted they need to be taken on a sales path that will readily secure the purchase.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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