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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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An August rate cut was always going to be improbable, barring a rogue core inflation number (something equal to or less than 0.3%) or a “surprisingly” negative shock out of Europe, which takes some effort these days. The RBA has for a long time been banking on heightened global economic volatility, so the day-to-day ructions rumbling out of Europe should not change its already very stimulatory stance.
How do I assess the impact of today's inflation data? The policy-making decision should be clear. Firstly, the most credible information we have on economic growth ­–the first quarter National Accounts – surprised the RBA (and dovish economists) significantly on the upside. Over the 12 months to March, GDP was at trend or higher – certainly nothing that ostensibly warrants 125 basis points worth of cash rate cuts (or punishment for prudent savers).
Secondly, as the Governor revealed yesterday – and I had argued here for some time – the unemployment rate has remained stubbornly below the RBA's current forecast of around 5.5%. That's not to say it will not get there in due course. But, as the Treasury's David Gruen has shown, the geographic dispersion in unemployment has also declined over time, rather than an increase one might expect with an economy undergoing structural adjustment. So the labour market, which is a key variable the RBA uses to forecast future inflation, has also surprised the Bank on the positive side.
Thirdly, rightly or wrongly, the RBA's board decided to cut the cash rate on four separate occasions since the start of November last year, which has pushed variable mortgage rates a chunky 50 basis points below their inflation-targeting average. If we stretch our time horizon back further – say to 1980 – current housing finance rates look even more accommodating. While the RBA was likely disconcerted by the weakening in house prices in April and May on purely financial stability grounds, it would have been equally comforted by the striking rebound in prices over June and July (see chart below). I expect APM's index results for the June quarter to be similarly benign.
<img height="284" width="469" src="/images/stories/2012/CJ_graph.jpg" alt="CJ_graph">
The bottom line is that the bulk of the RBA's rate cuts since November were rationalised on the basis it needed to furnish Australians with "insurance" against adverse future contingencies (specifically, the December, May and June cuts). The good news is that these catastrophes have yet to materialise, notwithstanding the efforts of some in the popular media to convince us otherwise.
The point that some analysts appear to miss is that the RBA's research indicates that a cash rate change today takes two years to have its full affect on inflation. Accordingly, we have not come remotely close to yet understanding the practical influence of the RBA's repeated (and seemingly reflexive) spate of cuts.
What we have seen in the producer and import price data is that the absence of currency appreciation has translated almost immediately into elevated (import) price pressures. With core inflation apparently troughing at the bottom of the RBA's deliberately “wide” 2% to 3% band (note most central banks consider inflation of 2% per annum quite normal), and much economic stimulation yet to be fully transmitted through the system, the RBA is understandably keen to watch and wait.
This is why I expect most of the remaining economists predicting a rate cut in August to discard their calls. As I previously showed here, a total of 10 economists had dropped their August cuts over the last month. I suspect most (although not all) of the holdouts will quickly follow. To be clear, a cut is still a possibility, albeit a low probability.
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Watch economists run from rate cut calls: Christopher Joye

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The Consumer Price Index (CPI) rose 0.5% in the June quarter 2012, compared with a rise of 0.1% in the March quarter 2012.
This reading was just below forecasts of a 0.6% quarterly rise, according to a poll of 24 economists by Bloomberg last week.
The CPI rose 1.2% through the year to the June quarter 2012, compared with a rise of 1.6% through the year to the March quarter 2012, well within the RBA's target 2% to 3% per annum inflation band, leaving room for the RBA to cut rates later in the year, should it need to.
Annualised CPI is now at its lowest rate in 13 years, CommSec points out. The most significant price rises in the June quarter 2012 were for medical and hospital services (+2.8%), rents (+1.1%), vegetables (+5.2%) and furniture (+4.5%).
The most significant offsetting price falls were for domestic holiday travel and accommodation (–4.0%), audio, visual and computing equipment (–3.8%) and cakes and biscuits (–2.8%).
CommSec expected underlying inflation to come in at 0.6% for the June quarter and 1.9% for the year and said this should “make the Reserve Bank even more comfortable that over the mid-term inflation remains well contained” providing scope for a rate cut over the next couple of months.
JP Morgan economist Ben Jarman says today's CPI figures won't surprise the RBA "in any meaningful way".
The Commonwealth Bank is now forecasting the next rate cut in November, having previously forecast one on August 7.
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Inflation up 0.5% in June quarter, slightly below expectations, leaving room for future rate cuts

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RBA governor Glenn Stevens has suggested that Australian households are coping well with their mortgage repayments as part of his very well received “Lucky Country” speech delivered to the Anika Foundation Luncheon in Sydney yesterday.
Stevens says the amount of household income required to repay the median mortgage is at its lowest level in more than a decade, excluding the GFC blip.
In addition, a high proportion of households are ahead on their mortgage payments, while house repossessions have also fallen from their peaks in Australia’s two biggest housing markets, NSW and Victoria – with the national repossession rate standing at 0.15% compared to 2% in the US.
"Dwelling prices have already declined, relative to income, and it is in fact not obvious that they are particularly high compared with most countries. Housing ‘affordability’ has improved significantly; over 99% of bank-held mortgages are being serviced fully," he said.
Stevens presented this chart (below) to show that on average, households are spending about 22% of their disposable income to repay their home loan – the same amount they were paying in 2002.
<img src="/images/stories/2012/sp-gov-240712-graph7-small.gif" alt="sp-gov-240712-graph7-small" height="404" width="400">
The chart shows that housing affordability has been improving over the past two years – with Australian households coming under the most strain in 2008 when the percentage of household income to loan repayments peaked at above 30%.
The standard accepted definition of mortgage stress is that you spend 30% or more of disposable household income on mortgage repayments.
“As a result of lower house prices and therefore lower loan sizes, somewhat lower interest rates and a good deal of income growth, the repayment on a new loan on a median-priced house as a share of average income is now at its lowest for a decade (except for the "emergency" interest rate period in 2009),” Steven said.
“It is true that a low unemployment rate is a key factor helping here, but it is also true that the proportion of households that are ahead on their mortgage payments is also high – with some evidence pointing to over half – which would provide a buffer of some months for those households in the event a period of lower income was experienced.
"If we look at applications for possessions of dwellings, they have been running at about 0.15% of dwellings on an annualised basis. Such applications have actually declined since their peak in both NSW and Victoria, though they have risen over the past couple of years in WA and Queensland. In the United States the most comparable figure for repossessions – "foreclosures started" – peaked at over 2% of dwellings.
The conclusion to be drawn from this and other positive indicators (a banking system in good shape; the correct macroeconomic response to the GFC, demand from China rebounding strongly after the GFC among others) Steven said was that “ingredients” the RBA would look to as signalling an imminent housing crash seem, “if anything, less in evidence now than five years ago”.
Stevens said stress tests carried out over recent years showed that "even with substantial falls in dwelling prices, much higher unemployment and associated higher levels of defaults, key financial institutions remain well and truly solvent".
As a result of this upbeat assessment of the Australian economy and the resilience of the financial system highlighted in the speech, <a href="https://www.propertyobserver.com.au/economy/august-rate-cut-hopes-dim-further-following-upbeat-glenn-stevens-lucky-country-speech-commsec-anz/2012072455710">both Commsec and ANZ said the chances of rates being cut in August had dimmed even further</a>.
Commsec chief economist Craig James said that on the question of whether housing is over-valued, Stevens' arguments show that he isn’t convinced, pointing to Stevens' observation that " the housing market bubble, if that's what it is, seems to be taking quite a long time to pop".
James also highlighted that in terms of bank funding vulnerabilities, Stevens said there are grounds for optimism, while also showcasing a number of developments that have worked to strengthen the Australian economy.
James highlighted this statement from Stevens in relation to the strength of the economy:
“Some of the adjustments we have been seeing, as awkward as they might seem, are actually strengthening resilience topossible future shocks. Higher – more normal– rates of household saving, a more sober attitude towards debt, are-orientation of banks' funding, and a period of dwelling prices not moving much, come into this category.”
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RBA’s Glenn Stevens pours cold water on mortgage stress fears with affordability at 10-year high

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I hate being stuck in traffic and, if you’re like most Australians, so do you.
So if you’re a Sydneysider it’s unlikely to surprise you that a recent NSW Department of Transport survey reports that except for New York City, Sydney now has the <a href="https://www.bts.nsw.gov.au/ArticleDocuments/112/BR2012_04_transport_facts.pdf.aspx">longest reported commute time in the world</a>.
In fact, the average Sydney commuter spends nearly an hour longer travelling to work each week than the average Los Angeles commuter, as Sydney's average work trip travel time have blown out to 34.3 minutes one-way.
Even longer commutes ahead 
And as if that isn’t bad enough, Sydney's densification planning policies seem likely to lengthen commute times even more in the future.
It is therefore not surprising that more and more people are swapping their backyards for balconies and choosing to live in Sydney’s inner suburbs, with demand coming not only from young people but families wanting to live closer to the city.
The result is a shortage of established apartments that is pushing up property values and rents.
Residex <a href="https://www.residex.com.au">www.residex.com.au</a> reports that Sydney apartment rents increased almost 10% over the last 12 months and, in certain areas, such as pockets of the inner-west, the rate of increase has been significantly higher than this.
The Sydney market is segmented
 While the overall Sydney property market has been reported as flat over the last few years, it is in fact segmented. Apartments in the inner west and eastern suburbs have performed strongly, with double-digit growth not uncommon in a number of suburbs.
On the other hand, at the upper end of the market, luxury house prices have faltered, as have home values in the outer suburbs.
However, with the undersupply of good near-city apartments pushing up rentals, first home buyers are coming back to the market. At the same time, savvy property investors are getting ready for the next stage of the cycle.
The good news is the Sydney property market is moving out of the doldrums, but it doesn’t mean the next boom is upon us.
Typically, the next stage of the property cycle is the stabilisation phase. Buyers come back and slowly more sellers, including some who couldn’t move their properties over the last few years, are going to put their properties back on the market and we’ll have a period of unspectacular growth.
What smart property investors are doing 
Over the next year strategic property investors are going to set themselves up for the next Sydney property boom by buying the right type of property at the right price.
They will have learnt from the last few years and rather than speculating, they will buy a property with an element of scarcity that will be in continual strong demand by owner occupiers (because these are the ones who push up property values) and tenants.
Others who sit on the sidelines will look back in a few years time and say, “I wish I’d bought in 2012”.
I’ll be sharing my thoughts on the Sydney property markets at my upcoming National Property Market and Economic Updates around Australia. <a href="https://propertymarketupdate.com.au/">Click here</a> for further details.
 
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myardney-DFoGhGbSJX

What will Sydney's long and lengthening commute times do to property? 

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The upbeat assessment of the Australian economy by RBA governor Glenn Stevens in his <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712">“Lucky Country” speech in Sydney yesterday</a> has further dimmed chances of rates being cut in August, according to both Commsec and ANZ.
Commsec chief economist Craig James says the governor’s speech was designed to “outline the facts rather than fallacies about Australia’s economic performance and the potential to handle future shocks”.
“The Reserve Bank governor reportedly noted that policy settings are about right. While that doesn’t preclude a rate cut in August, the factors would need to present, such as further instability in Europe and a low domestic inflation result."
“CommSec is still pencilling in a rate cut over the next few months,” James says.
A similar assessment of the tone of the speech was made by ANZ Research in its latest economic update.
“RBA governor Glenn Stevens today delivered a fairly upbeat assessment of the Australian economy in his speech entitled ‘The Lucky Country’,” says Craig Michaels and Dylan Eades of ANZ Research.
Michaels and Eades note Stevens' argument that Australia has made its own luck in delivering a “remarkably good” performance against a very turbulent international background, Stevens' contention that concerns underlying weaknesses in the Australian economy are overstated; and that even if downside risks do materialise, Australia is well placed to manage them.
“Importantly, the tone of the speech suggests that the hurdle for significant interest rate cuts is much higher than markets are currently pricing,” they say.
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August rate cut hopes dim further following upbeat Glenn Stevens "Lucky Country" speech: Commsec, ANZ

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This home theatre is for stars, not just cinephiles. It comes with inspired overhead lighting.  
This home theatre is in a <a href="https://www.realestate.com.au/property-house-qld-coolum+beach-107392615">Coolum Beach property</a> named Casa Del Mar. The seats are made from Italian leather and there’s a bar at the back of the room. Fear not, the rest of the house is just as ostentatious with complex lighting systems, a removable glass ceiling over the master bedroom, a 10-person spa and an extravagant pool.
It was sold in 2011 after being listed through Leon Butt Oracle Realty Sunshine Coast.
<img width="470" src="/images/stories/2012/07/hometheatre6.jpg">
To see which home theatres placed ninth and tenth click here and here. For the list of theatres in 11th to 20th place click here.
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Stars overhead in this eighth-placed home theatre in Property Observer's Top 20 home cinemas 

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Hotspot suburbs are the Holy Grail for property investors, but they oughtn’t be.
By the time of common knowledge or publication in national property magazines on newstands, locations with a red-hot reputation have most likely passed their invest-by date.
Picking and purchasing gems before they have got their shine is the wisest strategy.
The Residex forecaster John Edwards says this involves buying at the right price, in the right place and at the right time. Not an easy trifecta. 
Investors shouldn’t totally ignore the tipsters’ industry that surrounds the spruiking of hotspots, but sensibly should be seeking out individual property that represents good buying value, where ever it’s located. The much published hot spot lists are a terrific resource, but I'd suggest they be more a reference book, and template for individual suburb research, rather than a call to action. 
Much of the current hotspots buzz centres on mining towns.
And there’s no better example of the hotspotting herd getting it wrong that Zeehan, the picturesque small west coast Tasmanian town with a population of around 850.
It saw significant speculative investment from 2003 to 2008, largely driven by mainlanders seeking dwellings with good rental returns at the cheapest end of the national market.
The investor demand had been driven by a number of exposés of the town promoting it as a hotspot.
Things really took off after a 2006 segment on Channel 9’s A Current Affair that highlighted the town as the cheapest for housing in Australia.
Prices that were around $10,000 in the early 2000s, jumped to $80,000 post the ACA story and then typically went as high as $150,000 at the time of the Avebury nickel mine opening. They’re now back to $100,000 according to a recent Australian Housing and Urban Research Institute (AHURI) study by Professor Andrew Beer.
While the June 2008 opening of the mine assisted prices along, the mothballing of the mine in December 2008 – and the loss of almost 200 jobs – has since caused house prices to plummet dramatically.
In its wake there’s been a procession of residential investors defaulting on their mortgages and business closures are all too common.
These have continued into 2012, with the worst case found by Property Observer reselling at $55,000 – its 2004 sale price – after having peaked in 2008 at $190,000.
Currently, Zeehan’s housing market is described as depressed by Beer and unlikely to recover from this position until the Avebury mine reopens. Property Observer has noted however a few very small upticks since 2011, suggesting it might be bouncing along the bottom.
But with poorly maintained stock, lack of services and funding for local infrastructure, along with the poor overall Tasmanian economy, it’s very much a case study of a town in decline.
Professor Andrew Beer wrote in June 2012 that Zeehan was emblematic of the mining industry generating a whole new housing dynamic with great volatility.
Of course, the mere term “hotspots” implies volatility – investors getting in and out of a market in quick succession. None of the wise "property is for the long haul" strategy embedded in this approach.
Boom/bust markets ought to be treated with utmost caution – and are not necessary within the sustainable portfolio of the savviest of investors.
It is true that sometimes the greater the risk, the greater the reward, so for some it represents an engaging endeavour.
Property Observer has the advantage of cherry-picking some of the good ideas of many experts with national profiles.
But do your homework on what's suitable for your individual investment strategy.
Our recently published eBook – <a href="https://bit.ly/O6ekCX">Tools for getting through the Hotspot Tipping Maze</a> – doesn’t intend to scare investors off hotspots altogether, but to ensure that they have their wits about them.
Not only when it comes to the property and its location, but also its promotion.
Investors ought to bear in mind who is making the recommendation, what interest they may have in the hotspot and whether they will earn income from the sale of real estate in this area. By all means proceed with a good deal purchase, so long as you are happy with the transaction transparency.
Investors need to arm themselves with sufficient research to make a considered investment.
The due diligence should include a thorough investigation of the local rental market, vacancy rates in the area and zoning issues. Investors should also do a study incorporating a cashflow analysis, looking at return on investment and depreciation.
And endeavour to bounce off any investment ideas with a team of advisors. Start with an estate agent or two and add an accountant. Try to touch base with the local valuer. Ensure you have a good solicitor. Then maybe extend it to include an architect, or town planner, if there’s the possibility for improving its value beyond its current state.
Remember of course even the local experts can get it wrong, not just the tipsters in the national magazines.
For advice on navigating hotspots, download our free eBook: <a target="_blank" href="https://bit.ly/O6ekCX">Tools for Getting Through the Hotspot Maze.</a>
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Why hotspot suburbs should not be the Holy Grail for property investors

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Twitter was unusually abuzz with positivity following Glenn Stevens' speech today about Australia’s status as “The Lucky Country”.
Clearly delighted with the tone and content of Steven’s address, Rismark and Yellow Brick Road’s Christopher Joye (<a href="https://twitter.com/cjoye">@cjoye</a>) tweeted:
<img src="/images/stories/2012/chrisjoye.jpg" alt="chrisjoye" height="77" width="487">
Joye was joined in his praise of the RBA governor by his frequent Twitter sparring partner, Stephen "The Kouk" Koukoulas (<a href="https://twitter.com/TheKouk">@TheKouk</a>) – former Gillard economic adviser and soon-to-be economic scribe for Alan Kohler’s Business Spectator website, who used an unusual adjective (perhaps tongue-in-cheek) to describe his appreciation of the speech:
<img src="/images/stories/2012/stephenkouk.jpg" alt="stephenkouk" height="79" width="495"><a target="_blank" href="https://t.co/BQNKcxsk"></a>
Self-interested Federal Treasurer Wayne Swan (<a href="https://twitter.com/SwannyDPM">@SwannyDPM</a>) was so excited about the Stevens' speech, he tweeted not once, but twice to his 20,687 followers, beginning with an attack on the “doomsayers":
<img src="/images/stories/2012/wayneswan1.jpg" alt="wayneswan1" height="111" width="497">
Followed by:
<img src="/images/stories/2012/wayneswan2.jpg" alt="wayneswan2" height="96" width="501">
It was left to The Age’s Chris Zappone (<a href="https://twitter.com/chrizap">@chrizap</a>) to restore some bearish balance to the debate. Not surprisingly perhaps, given Melbourne has been the last (and most recent) city to experience the house price downturn, he tweeted:
<img src="/images/stories/2012/chriszappone.jpg" alt="chriszappone" height="93" width="491"><a href="https://twitter.com/search/%23in"></a>
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Tweet of the day: Glenn Stevens' “lovely” speech gets thumbs up

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The US housing market is now an “outlier” when it comes to making international comparisons, says RBA governor Glenn Stevens, who appears to be questioning whether we should compare ourselves with the US when considering the likelihood of possible future housing corrections.
Stevens says that simply comparing the two markets – Australian and the US – it would be “hard to avoid the impression that gravity will inevitably exert its influence on Australian dwelling prices”
But when you compare Australia with other international housing markets, Stevens says, “the picture is much less clear”.
“To the extent that we can make any meaningful statements about international relativities, the main conclusion would be that Australian dwelling prices, relative to income, are in the pack of comparable countries. In this comparison, the United States seems the outlier,” <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">he said in a speech to the Anika Foundation Luncheon in Sydney today</a>. 
Stevens presented two charts to show how Australian housing affordability has diverged from the US since 1986, but performed in line with many other comparable countries.
The first of these charts just compares Australia to the US on the basis of dwelling prices to income ratios and shows that the two countries were last on a comparable footing in 1986 – but since then have diverged marketedly.
<img alt="dwelling1" height="380" width="470" src="/images/stories/2012/dwelling1.gif">
Between now and 2011 Australian house prices have trended up from a ratio of 2:1 to 4.1 – with slight correction around the GFC while US house prices relative to income have remained below a ratio of 2:1, having accelerated towards a ratio of 3:1 from around 1996 until the GFC brought about a dramatic fall in prices.
Comparing Australia with a host of other international housing markets on the same ratio measure, Stevens presented a difficult to read spaghetti-like chart (below).
It does however show that countries like New Zealand, the Netherlands and the UK have housing markets performing in the realm of the Australian market, while Japan is now more closely linked to the US.
<img alt="dwelling2" height="400" width="470" src="/images/stories/2012/dwelling2.gif">
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available.
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom.
“In the United Kingdom the fall was smaller – at about 15%–20%.
“In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available."
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom."
“In the United Kingdom the fall was smaller – at about 15%–20%. In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
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Australia has its own place in the world when it comes to housing affordablility: RBA’s Glenn Stevens

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Inner city infill residential property developments have the advantage of being close to the CBD and benefiting from nearby established infrastructure, but the returns can be mixed, Monique Sasson Wakelin has warned.
She says investors should tread carefully when considering these investments.
“Done well – built in a good inner suburban location, with quality design and construction – a new estate can perform reasonably well, eventually,” says Wakelin, director at Melbourne-based Wakelin Property Advisory.
“But they do tend to struggle capital growth-wise for the first few years. Moreover, they never seem to quite match the performance of top grade, established investment property."
“When the property market is booming, it is understandable that some budget-constrained investors who struggle to outbid others for established property resort to buying in new estates."
“But in a slow property market where competition is light, and it is possible to buy into the established inner suburban market, there’s really no need to settle for second best.”
As an example, house prices in an established suburb like Albert Park have risen 321% over the past 15 years, while a suburb like Port Melbourne, where Mirvac built its Beacon Cove project on former industrial land in 1996, have only recorded 249% growth.
Over the last three years, houses prices have risen by 51% in Albert Park compared to 26% in Port Melbourne.
In a column penned for the Eureka Report, Wakelin writes that while much of the new housing construction will take place in fringe suburbs, there is a drive among governments and developers to reassign large tracts of former industrial and other redundant land within inner and middle suburbs for residential use.
Wakelin says there are a number of positives about infill development closer to the city compared to new greenfill housing in the fringe suburb counterpart.
“The most obvious is location. Many of these new residential estates are only a few kilometres from the CBD, as opposed to 40 or 50 kilometres,” says Wakelin, writing for the Eureka Report.
Aside from shorter commutes to the city, she says the other positive factors in favour of infill developments are the existing hard infrastructure in the surrounding area (roads, schools, childcare facilities, medical facilities) as well as closer proximity “to the things that give an area a 'soul’,” – shops, cafes and restaurants.
But she warns investors to keep in mind the experience of Beacon Cove in Port Melbourne, which shows that there is a lifecycle for infill developments.
She quotes Biggin &amp; Scott Port Melbourne agent David Lack, who says there were long queues and people camped overnight when the project first came on the market in 1996.
But according to Lack, the Beacon Cove properties struggled at first on the resale market in the early years and it was only from around 2001 that they started to show a good profit on resale.
Lack also says Beacon Cove properties may have been overpriced at their first offering, asking $305,000 for a three bedroom house.
“The lesson from Beacon Cove for investors considering buying into infill developments is to tread carefully,” she says.
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