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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The Commonwealth Bank has cut its one and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
The new rates take effect from tomorrow (July 13) and are available for new borrowings over $150,000.
This means the bank is offering one of the cheapest fixed rates currently offered in the market, matching the three-year fixed rate offering of the Greater Building Society and QT Mutual Bank (QTMB), according to mortgage comparison website RateCity.com.au.
The Greater Building Society offers a one-year fixed rate mortgage at 5.64% per annum.
The Commonwealth Bank is now offering its lowest fixed rate home loans for more than three years and the lowest three-year fixed package rate of all the major banks.
“This latest rate cut is good news for customers looking to lock in rates, giving them greater certainty,” says Michael Cant, executive general manager of retail products and customers at the Commonwealth Bank.
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lschlesinger-FZcF9M3vE6

Commonwealth Bank cuts fixed rates by 20 basis points to 5.79%

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NSW is home to the cheapest land prices, with Murray’s median lot price at $71,000. South Australia had the most regions on the top 10 cheapest land prices  list, with Tasmania featuring strongly.
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Murray, NSW, has cheapest land prices in Australia: RP Data-HIA

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Expectations that the NSW housing market might be on the road to recovery have been quashed in the latest NAB Australian Residential Property Survey. 
NSW house prices are expected to fall by 0.4% over the next two years, according to the June survey of more than 300 property market participants. 
This compares with an expectation just three months ago in the March NAB Australian Residential Property Survey that NSW house prices would rise modestly by 1.6% over the next two years. 
According to survey respondents, NSW house prices will fall by 1.5% over the next 12 months, with the pace of decline slowing from mid-2013. 
The outlook for NSW is worse than that for the national housing market. 
While the national outlook has also declined, there is still an expectation that house prices will rise by 1% over the next two years. 
In the March survey, survey participants anticipated a 1.4% increase in national house price over the next two years. 
This change in mood is reflected in the NAB Residential Property Index (a measure of housing market confidence and expectations), which fell 11 points in the June quarter compared with a five-point rise in the first quarter of the year.
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NSW is not the only market expected to struggle over the next two years. 
Property market participants are most pessimistic about Victoria, with weak demand, low rates of economic growth and slower population growth underpinning a further 0.7% fall in prices over the next two years.
 
The outlook for these two markets is in contrast to the outlook for the mining states, with improved forecasts for both WA and Queensland as well as South Australia/Northern Territory. 
In WA, house prices are forecast to rise by 4.1% over the next two years, compared to a previous forecast of 3.4% while Queensland prices are tipped to rise 2.5% compared to the March estimate of a 1.5% gain.
House prices in SA/NT are expected to rise 1.9% over the next two years. 
Nationally, those surveyed say the recent rate cuts and the prospect of a further rate cut in the third quarter of the will slow the pace of house price declines.
“Combined with an underlying national shortage of housing that is unlikely to be rectified soon given currently low levels of building activity, we would expect house prices to start growing again in 2013 and beyond,” says NAB. 
The survey found that positive rents and falling home values were still supporting rental yield growth, however national rental growth slowed to 0.4% in the second quarter of 2012, from 1.1% in the first quarter of the year. 
“This largely reflected a softer Victorian rental market where rising vacancy rates, slower population growth and higher construction rates saw rents fall by 1% in the second quarter of 2012,” says NAB. 
However, the rental outlook has softened relative to the March quarter survey, with rents now expected to grow by 3.5% (4.3% previously) over the next two years. 
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Expectations softened in all states except WA (6.7% from 5.7% previously), where vacancy rates are likely to continue tightening as population increases are driven by strong state economic growth. 
Rental expectations in the next two years are weakest in Victoria (1.4%), followed by NSW (3.4%) and SA/NT (3.5%). 
The other key findings of the report are: 
<ul>
<li>First-home buyers and resident investors were more active in the new property market in the second quarter. </li>
<li>Demand is strongest for inner-city houses and lo-rise apartments/townhouses, but overall demand still very soft.</li>
<li>Tight credit conditions and housing affordability the most “significant” constraints on new housing development. </li>
<li>The extent of concern over interest rates falling rapidly as official rates continue being cut.</li>
<li>Demand for existing property weaker in most locations and for most property types in the June quarter.</li>
<li>Houses are still the most preferred type of property, especially in the inner city. Owner-occupiers are still the biggest players in the market. </li>
<li>Capital growth expectations are strongest in the sub-$500,000 price range, while the outlook for properties over $2 million remains “poor”.</li>
<li>Employment security now viewed as the biggest impediment to purchasing existing property, especially in Victoria and Queensland. </li>
<li>Access to credit is also still a major issue.</li>
</ul>
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False dawn for NSW housing price recovery but mining state sentiment improves: NAB June residential property survey

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Sydney tenants are now paying almost the same weekly rent for apartments as they do for houses, according to June quarter rental report released by Australian Property Monitors (APM).
Over the three months to June, the median weekly asking rental for Sydney units increased by 4.4% to $470 while weekly rentals for houses remained unchanged at $500.
There was a $50 a week gap in the previous quarter. In June 2010 the gap was $40, with houses at $480 a week and units at $440 a week.
Sydney house rents have not changed in the year to June 2012.
APM attributed the gains in Sydney unit rentals in the June quarter to increasing demand by tenants for apartments, “with this rental market remaining highly competitive for prospective tenants, with low vacancy rates being recorded in most areas”.
“In the Sydney market, the price increases in units over the quarter reflect growing demand for this type of accommodation that typically is located closer to the CBD and provides more established urban infrastructure,” says Dr Andrew Wilson, senior economist at APM.
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Nationally median asking rents for houses rose over the quarter by 0.7% while units rose by 2.5% over the three months ending June 2012.
Perth was the other mainland capital city rental market that performed strongly, with house rents up 7.5% to $430 and unit rents up by 8.6% to $380.
Perth has also delivering strong returns for investors over the past 12 months, with year-on-year gross rental yields of 14.4% for houses and 15.2% for units.
In comparison, Sydney has returned a gross rental yield of 2% year-on-year for houses and 3.3% for units.
<img src="/images/stories/2012/07/apmjuly122.gif">
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Despite the big rise in Perth rents, many tenants there would be better equipped to cope with rises than those in Sydney, where rents are already $70 higher for houses and $90 more for units than they are in the WA capital.
The most recent Australian Bureau of Statistics data shows WA's median gross weekly income was $1,466 in 2009-10, compared with $1,319 in New South Wales.
<img src="/images/stories/2012/07/apmjuly124.gif">
Among the smaller capital city rental market, Darwin house rents soared by 14% over the quarter to a median of $650, which is $150 more than they are in Sydney.
Darwin units increased by 8.7% over the June quarter to a median of $500, making them $30 more expensive than Sydney.
Darwin has delivered investors gross rental yields of over 20% for both houses and units year-on-year to June.
In contrast to Sydney and Perth, Melbourne remained a stagnant market for landlords and the most tenant friendly market of all the mainland capitals, with rental growth for both houses and units remaining subdued.
Weekly rentals for Melbourne house and units remain at the same price they were a year ago of $360 and $350 respectively.
In the closely watched Brisbane apartment market – <a href="https://www.propertyobserver.com.au/developments/construction-of-david-devines-madison-heights-tower-begins-with-87-of-units-sold-off-the-plan/2012071155517">there are over 40 new apartment projects underway in the inner-city suburbs</a> – unit rents fell by 1.4% over the June quarter from $365 to $360 and are unchanged over the 12-month period.
Brisbane house weekly rents were unchanged over the quarter at $380 but up 2.7% over the 12 months to June
Canberra unit rents rose 2.3% over the quarter to a median of $440.
Outside of Sydney, particularly in Perth, Darwin and Canberra, Wilson says “ongoing shortages of accommodation and low levels of new supply are placing upward pressure on rentals, which can be expected to continue over the rest of 2012”. 
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Demand for inner-Sydney apartments drives up rents while Melbourne rents stagnate: APM

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Reserve Bank deputy governor Philip Lowe returned to theme of higher funding costs pushing up bank lending rates at a speech in Sydney today.

Lowe presented the following slide as part of a talk on the euro crisis at The Economist Bellwether Series showing that average bank lending rates have risen more or less in tune with increases in funding costs.

<img src="/images/stories/2012/07/rbajuly12.gif">
Yesterday, at an economist conference in Melbourne, Lowe said the Reserve Bank reduced the cash rate by around 150 basis points more than it would otherwise have done to compensate for the widening gap between the benchmark lending rate and interest rates set by the banks.
Speaking at an economists’ conference in Melbourne yesterday, Lowe said that due to both market and regulatory developments there had been an “increase in most interest rates in the economy relative to the cash rate”.
“This is something that the Reserve Bank has spoken about at length, and it has been an important factor in the setting of monetary policy over recent years.
“In particular, this increase in interest rates relative to the cash rate has been offset by the bank setting a lower cash rate than would otherwise have been the case. While it is difficult to be too precise, the cash rate today is in the order of 1.5 percentage points lower than it would have been in the absence of these developments,” said Lowe.
According to mortgage comparison website RateCity.com.au, the average standard variable rate stands at 6.38%, compared with a cash rate of 3.5% with banks passing on around 80% of cash rate cuts since November last year.
Westpac economist Bill Evans, who is tipping the cash rate to fall to 2.75% by year-end, said that following the 50-basis-point cash rate cut in May the average standard variable mortgage rate (SVMR) fell by 35 basis points, “blunting the potential impact”.
A week after the June decision to cut the cash rate by 25 basis points, Evans said just one major bank had announced that it would cut its standard variable mortgage rate by the full 25 basis points.
But Lowe also acknowledged the increasing costs that banks have had to bear since the GFC due to increasing regulation.
These include having to keep high reserves of cash, improving the quality of the capital held and holding more liquid assets.
“These changes are occurring not just because of new regulations, but also because they are being demanded by the marketplace,” he said.
“Together, these various changes are increasing the cost of financial intermediation conducted across the balance sheets of banks.
“In effect, the choice that our societies are making – partly through our regulators – is to pay more for financial intermediation and, perhaps, to have less of it.”
Lowe says the benefit of these changes and having to pay a higher price is “a safer and a more stable financial system”.
“As the world is being painfully reminded, the losses in output during a crisis and in subsequent years are substantial, and some of the losses may be permanent,” he said.
Lowe said Australia’s banks, alongside those in other countries, would continue to feel the impact of regulatory changes, as well as a “global loss of trust in financial institutions” that had led to all banks paying more for their funds in capital markets.
“These various changes are increasing the cost of financial intermediation conducted across the balance sheets of banks,” Lowe said.
“In effect, the choice that our societies are making – partly through our regulators – is to pay more for financial intermediation and, perhaps, to have less of it.
“The benefit that we hope to receive from paying this higher price is a safer and a more stable financial system.”
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RBA cash rate could have been around 5% if banks had passed on full rate cuts: Philip Lowe

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The national office vacancy rate eased by 0.6 percentage points to 7.8% in the second quarter of the year despite a net absorption of 73,900 square metres of office space, according to statistics released by Jones Lang LaSalle Research. 
Net office absorption is the amount of space leased minus the amount of space vacated over a given time frame. 
Of the 73,000 square metres absorbed over the three months to the end of June, Perth accounted for 64,000 square metres or 88% of the total.
 
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Prime gross effective rents in Perth increased by 3.2% over the quarter and are now up 31.8% from the cyclical low in the third quarter of 2010.
During this period the Perth vacancy rate increased from 2% to 2.9% principally due to the completion of Brookfield’s 45-storey City Square office tower in June, which has added 85,000 square metres of office and retail space to the CBD.
Mining giant BHP Billiton is the tower’s anchor tenant, taking 60,000 square metres of space.
Perth now has only 8,633 sqm of new office space under construction, equating to 0.5% of total stock.
Prime gross effective rents in Perth increased by 3.2% over the quarter and are now up 31.8% from the cyclical low in the third quarter of 2010.
“The price signals from the space market in Perth have yet to translate into development activity. We expect that a number of pre-commitments will conclude over the next six to 12 months,” says Kevin George, Jones Lang LaSalle’s national head of office leasing.
“Nevertheless, the first completions in the next development cycle are unlikely to occur until 2015 at the earliest, keeping Perth vacancy at a very low rate over the next three years.”
The other big project to complete over the June quarter was GPT’s 111 Eagle Street in Brisbane, which consists of 44 levels and 64,000 square metres of net lettable space.
George says the completion of City Square North 111 Eagle Street “finally dispels the myth that these markets have significant development pipelines”.
“Both of the projects were substantially leased before practical completion, vacancy is low and the development outlook is moderate,” he says.
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In the Brisbane CBD, net absorption was 11,700 square metres, with the office vacancy rate increasing from 6.1% to 8.8%.
“Projections of mid-teen vacancy rates in the Brisbane CBD following the completion of 111 Eagle Street have proven to be inaccurate,” says George.
“The pre-production phase of large-scale resource and energy projects is very labour intensive and continues to underpin the demand for office space. Similar to Perth, I expect a number of pre-commitments to be announced over the next 12 months.”
Net absorption was essentially flat (+1,000 square metres) in the Sydney CBD, but the vacancy rate tightened by 0.1 percentage point to 8.6% in the second quarter. Prime gross effective rents were unchanged over the quarter.
George says the pre-commitments made by Westpac, KPMG and Lend Lease to the first two commercial towers planned for Barangaroo South shows that major leasing transactions can still be concluded.
The Melbourne CBD was one of the weakest markets, recording negative net absorption of -16,400 square metres with the vacancy rate increasing from 5.8% to 7.4% in the second quarter.
“The 2011-12 financial year will be remembered as Melbourne’s annus horribilis. The finance sector contracted, while the Victorian government confirmed 3,500 public sector job cuts in the May budget. As a result, sub-lease availability increased to 1.3% of total stock,” says Jones Lang LaSalle head of capital markets research Andrew Ballantyne.
There is a further 236,700 square metres of space under construction in the Melbourne CBD to be delivered by the first half of 2014.
“If demand remains weak in the 2012-13 financial year, vacancy could be moving out towards 10% in Melbourne,” says George.
The Adelaide CBD office market recorded net absorption of 5,800 square metres, with the vacancy rate tightening to 7.7%.
Canberra recorded a fourth successive quarter of positive net absorption of 7,800 square metres with the vacancy rate tightening to 9.9% – the first time vacancy has been below 10% since the fourth quarter of 2009.
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Perth steams ahead as best-performing CBD office market: Jones Lang LaSalle

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The Mitre Tavern – the nooky thriving English-style pub with a Queen Anne feel dating back to its 1910s makeover – is listed for August 10 Alexander Robertson auction with $6.5 million-plus hopes.
Set on Bank Place, between Collins and Little Collins streets, it last traded at $6.3 million in 2008 when bought by the Toorak investor Ian Hicks from the hotelier Robertson family. There was a $4.6 million transfer in 2006 and a $5.75 million transfer in 2004.
It has one of the city's largest outdoor beer spaces.
Classified as being of historical and social significance to Victoria, the Mitre claims to hold one of the oldest continuous pub licences, granted in 1868 when a two-storey private dwelling was converted to a drinking house.
The bluestone coaching house Mac's Hotel in Franklin Street has been operating since 1853.
In 1930 <a target="_blank" href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/ndp/del/article/4107472">The Argus</a> noted no other pub was like it.
The selling agents Kristian Peatling and Warwick Bramich say its current net annual income is $430,000 plus GST.
It's being offered with a long-term lease.
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Mediaeval Melbourne pub the Mitre Tavern up for auction

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Across each capital city housing market there is a significant gap between those houses that have the lowest rate per square metre and those that have the highest.
All figures quoted in this report are based on median sale prices over the 12 months to January 2012 and the average lot size of those properties that have sold. Although the analysis doesn't take into account qualitative factors such as the quality or size of the home, views, state of repair or other factors, the analysis provides a simple proxy for the premiums being paid for housing in certain areas.
Generally it is the inner-city suburbs within each capital city that have recorded the highest average rate/sqm over the past year. Not only are these suburbs characterised as being close to the city centre, they have also recorded a subsequent high median selling price and tend to have a fairly small average lot size. As a result of these conditions the rate/sqm is highest in these inner city areas and representative of the premium residents will pay to purchase in these regions even if it means they are acquiring a relatively small lot.
Focusing on those suburbs with the cheapest rate/sqm within the capital cities, it is typically acreage areas and/or those on the outskirts of the city that have made the list. Not only are these suburbs further away from the city but their acreage nature means that demand is typically lower for these properties. It is also important to note that often houses in these areas are not linked to town water and sewerage.
The table below details the five most expensive and five most affordable suburbs on a rate/sqm basis across each capital city.
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The beachside suburb of Tamarama in Sydney recorded the highest rate/sqm ($11,449/sqm) based on a median house price of $4,337,500 and an average lot size of 379 sqm over the past year. Tamarama has a relatively limited supply of houses and the fact that many have ocean views has resulted in the high median prices. In recent years the area has also seen the introduction of a lot more small lot housing which has contributed to the higher rates/sqm.
In fact, the five most expensive suburbs on a rate/sqm basis in Sydney were more expensive than any other suburbs across the other capital cities capital cities.
Sydney and Melbourne were the only two cities to have suburbs with an average rate/sqm of more than $5,000. Across Sydney, 26 suburbs had a rate/sqm in excess of $5,000 and in Melbourne seven suburbs did. Not surprisingly, all of these suburbs with a rate/sqm in excess of $5,000 were located relatively close to the city centre and many had a relatively small average lot size.
With a median house price of $398,000 and an average lot size of 72,387 square metres, Mt Mee in Brisbane had the lowest rate/sqm at just $5/sqm. Although the suburb is undoubtedly desirable, it is located 47 kilometres away from Brisbane and has very little local amenity. The large average lot size of 72,387 square metres also contributes to the low rate/sqm. Overall the evident trends are to be expected, residents pay a significant premium to be located close to the city centre and this is reflected by the fact that those suburbs close to the CBD have a much higher rate/sqm compared to those situated further away. Acreage properties on the outskirts of the city on the other hand may have a relatively high median sale price however, the large lot sizes result in a fairly low rate/sqm.
As inner-city areas continue to undergo densification we would expect that the rate/sqm in these suburbs will continue to increase. The reason being that not only is demand likely to remain strong and possibly increase for inner-city properties but also as many homes get knocked down and replaced by higher density construction, there will be fewer opportunities to purchase houses in these areas. As a result, the prices paid for these homes is likely to be higher as the supply of these homes is actually lower than it has been historically.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Cameron Kusher is senior data analyst at <a href="https://www.rpdata.com.au/" target="_blank">RP Data</a>.
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Buyers pay a high premium for every square metre of inner-city living: Cameron Kusher

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An imitation Gothic castle in Paradise Point that sold for $5,325,000 at auction was this week’s top reported sale, according to RP Data.
With seven bedrooms and nine bathrooms, <a href="https://www.propertyobserver.com.au/queensland/imitation-gothic-castle-on-sovereign-islands-loses-its-crown-at-auction-as-buyers-have-less-kingly-inclinations/2012070455420">the Paradise Point property</a> had a $20 million tag when it first listed in 2010.
It was finished in 2009 on a 1,458-square-metre block bought for $3.75 million in 2007.
This week’s second place spot was taken by a five-bedroom house in the Sydney suburb of Burwood, which sold for $3.02 million at its Saturday auction.
{yoogallery src=[images/stories/2012/07/july11burwood]}
This was $520,000 above the reserve, according to Richard Matthews Agent Matthew Everingham.
The 2,340-square-metre property includes three bathrooms, leadlight detail, high ceilings and a tennis court.
No Victorian properties made the top 10 list this week, with seven of the top 10 in NSW and the rest in Queensland. 
1. <a href="https://www.myrp.com.au/n/55-knightsbridge-parade-west-paradise-point-qld-4216/myrp-490?propertyId=6753124">55 Knightsbridge Parade West, Paradise Point, QLD, 4216</a>, seven-bedroom house, sold at auction on June 3 by Ray White The Runaway Bay Group for $5.325,000
2. <a href="https://www.myrp.com.au/n/8-minna-street-burwood-nsw-2134/myrp-490?propertyId=1653802">8 Minna Street, Burwood, NSW, 2134</a>, five-bedroom house, sold at auction on June 7 by Richard Matthews Real Estate for $3.02 million
3. <a href="https://www.myrp.com.au/n/66-evans-street-rozelle-nsw-2039/myrp-490?propertyId=5982687">66 Evans Street, Rozelle, NSW, 2039</a>, five-bedroom house, sold at auction on June 7 by Belle Property Annandale for $2.4 million
4. <a href="https://www.myrp.com.au/n/58-milroy-avenue-kensington-nsw-2033/myrp-490?propertyId=3291870">58 Milroy Avenue, Kensington, NSW, 4670</a>, six-bedroom house, sold after auction on June 7 by Ray White Maroubra for $1.92 million
5. <a href="https://www.myrp.com.au/n/47-phillip-road-putney-nsw-2112/myrp-490?propertyId=5635153">47 Phillip Road, Putney, NSW, 2112</a>, four-bedroom house, sold at auction on June 7 by McGrath Estate Agents for $1.91 million
6. 90 Little Chester Street, Newstead, QLD, 2360, three-bedroom house, sold at auction on June 7 by Ray White New Farm for $1.9 million
7. <a href="https://www.myrp.com.au/n/32-heeley-street-paddington-nsw-2021/myrp-490?propertyId=5268768">32 Heeley Street, Paddington, NSW, 2021</a>, four-bedroom house, sold at auction on June 3 by Bradfield Cleary Real Estate for $1.84 million
8. <a href="https://www.myrp.com.au/n/20-radio-avenue-balgowlah-heights-nsw-2093/myrp-490?propertyId=1231236">20 Radio Avenue, Balgowlah Heights, NSW, 2093</a>, four-bedroom house, sold on June 6 by Richardson &amp; Wrench Seaforth for $1.805 million
9. <a href="https://www.myrp.com.au/n/16-snowbell-close-stretton-qld-4116/myrp-490?propertyId=14183033">16 Snowbell Close, Stretton, QLD, 4116</a>, five-bedroom house, sold at auction on June 7 by L J Hooker Sunnybank Hills for $1.8 million
10. <a href="https://www.myrp.com.au/n/18-darvall-road-eastwood-nsw-2122/myrp-490?propertyId=2206597">18 Darvall Road, Eastwood, NSW, 2122</a>, five-bedroom house, sold at auction on June 7 by McGrath Estate Agents for $1.75 million
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Paradise Point castle takes out top sale of the week, with five-bedroom Burwood property next at $3.02 million: RP Data

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Regional areas have outperformed capital cities in the year to March, according to ANZ.
"Despite being lower in annual growth terms, regional house prices have been more stable than capital city house prices, which have seen larger price falls across all major states and territories," notes the Australian Housing Chartbook.
The bank expects the ACT market to remain soft in the year ahead.
"While we continue to expect continued divergence within South Australia and ACT regional housingmarkets, a broadly soft economic outlook for the South Australia and ACT economies combined withrelatively balanced housing markets should contain house price growth in the coming year across most regions."
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/anzjuly103.gif"><img src="/images/stories/2012/07/anzjuly103thumb.gif"></a>
Source RP Data, Rismark, ANZ
 
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