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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These last few years have been confusing for Australians thinking about retirement: when they look at what the experts have done with their money, they see it going backwards, or growing very slowly.
The 2010-11 APRA figures over the decade to June 2011 show that the average return in large super funds was 3.8%per year. That was the overall average: retail funds earned just 2.9%. After accounting for inflation, which has averaged about 3% over the same period, savers have received little-to-no “real” return.
One of the standard “expert” remarks about investing is that you have to skew your super to higher-returning equities, or you won’t have enough to retire on. But global shares suffered 40-50% losses in 1987, 2001, and again in 2007-08.
The other extreme is to ask you to accept very low returns on your money for little or no risk.
I believe in a “middle way” solution: a portfolio comprising a mix of short-term bank accounts and term deposits combined with variable rate bonds.
By diversifying your portfolio across these investments, the risk you are taking is not much higher than cash and much lower than equities – while receiving very attractive returns.
Many big fund managers and most financial planners do not steer their clients into these products. While many offer bond-based products, when you select the ‘default’ setting in your super fund, you are normally placed in a “balanced fund”, which typically gives you a total exposure to cash and bonds of not much more than 10%.
In other words, the super option most Australians are in – “balanced” – will have you about 80% to 90% exposed to Australian shares, global shares, and “equity” risk in commercial property, private companies, and hedge funds.
Recently, one of our branch principals at Yellow Brick Road dealt with a retiree in Queensland with $800,000 in a bank account, earning less than 2% per annum. By putting his cash into a portfolio that exposed him to both institutional bank accounts and variable-rate Australian bank bonds, this retiree will now earn an extra $25,000 per annum.
Another case is a Sydney family who sold an investment property and needed to park $705,000 before they bought another home in six to 12 months’ time. This family was going to put the money in a bank’s “bonus” savings account paying 5.2% for a few months, which then dropped to a very low 3.5%.
Instead, they will now likely earn an extra $9,000 per annum by investing in a diversified portfolio of bank deposits and bonds.
The point I try to get across to those who are worried about retirement – or who are unhappily retired – is that they have to get their minds out of the approach of 100% or 100% bank accounts.
There are smarter solutions out there for you. Start by becoming informed, and always get advice before you act.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. 
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A smart savings portfolio comprises property, bonds, bank accounts and term deposits

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It was Bank of America Merrill Lynch analysts who suggested in April that prospective suitors might want to look past the lax retailing environment and focus on David Jones’s potential as a property play.
This afternoon the UK-Luxembourg firm EB Private Equity has offered to buy the retailer in a $1.65 billion takeover deal.
<a href="https://www.ebpe.net/">EB Private Equity's website</a> describes the group as a Luxembourg and UK real estate investor and developer.
"EB Private Equity has developed an expertise in real estate investments that ranges from investments in commercial (office and retail), leisure and alternative asset class investments,'' the group's website says.
David Jones's share price had surged nearly 14% to $2.59 at today, after chairman Robert Savage said the company had received an unsolicited takeover offer.
After Friday’s big jump in the value of David Jones shares, the company’s market capitalization sat at just $1.4 billion.
Merrill Lynch in April said its Melbourne and Sydney CBD sites could be worth anywhere between A$500 million and A$1 billion, providing a potential cash injection to acquirers if they were sold off.
Some market watchers have done quick research into the EBPE company website <a href="https://www.ebpe.net/" target="_blank">(www.ebpe.net) </a>noting its carries little substantial information except some feel-good quotes from JPMorgan and John D. Rockefeller.
The AFR note some of the text looks like it has been copied from the website of another UK real estate investor named Moorfield.
The company’s URL is registered to a mailbox address in the UK with a July 27 expiry and lists Yahoo! addresses as contacts.
Data collector Dealogic says it has no record of EB Private Equity.
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jchancellor-FAypfDUnLy

Little known UK-Luxembourg group EB Private Equity makes property play for embattled retailer David Jones

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Tax experts have welcomed a decision by the federal government to delay changes to the Living Away From Home allowance for a further three months, although a survey of clients made by accounting firm PwC shows businesses are already changing their plans.
The changes, which restrict who can claim the allowance, were expected to <a href="https://www.smartcompany.com.au/tax/048546-smes-employing-overseas-workers-to-be-hit-by-changes-to-living-away-from-home-allowance">come into effect</a> from this Sunday, July 1. But federal Assistant Treasurer David Bradbury announced yesterday the changes will start from October instead.
"These reforms will better target the tax concession for LAFH allowances and benefits to people who are legitimately maintaining a home away from their actual home in Australia for an initial period," Bradbury said.
The introduction of the laws will now be shifted to October 1.
"This deferral will give employers and employees more time to prepare for the new arrangements," Bradbury said.
The changes mean temporary residents will need to maintain a home for their own use in Australia to get the concession, and all individuals will need to substantiate their expenditure on accommodation and food.
In the budget, the government also announced changes requiring permanent residents to maintain a home for their own use in Australia if they are to claim the concession, and a 12-month limit on how long individuals can use the concession.
Senior tax counsel at the Tax Institute Robert Jeremenko says the delay is a welcome change.
"The government really did listen to the concerns of the Tax Institute and the fact you need an appropriate amount of time in this case to help employers adjust."
"Of course, it doesn't change the overall policy, but they do deserve plaudits for delaying this for three months, particularly as they introduced the bill yesterday."
But according to a new survey from PwC, businesses are already getting their affairs in order. Out of a survey of 121 clients, 14% said at least one employee has left or changed plans because of the new laws.
Also, 99% had considered the impact the changes will have, and 55% said attracting new employees as a result of the changes was a concern.
One participant pointed out they have had two employees give notice to return home before June 30 as a "direct result" of the changes.
PwC director Jennifer Miller said in the report the reality of the reforms "is now being felt by a number of organisations".
"Employees are returning home, both voluntarily and at the direction of employers. Recruitment strategies, remuneration strategies and assignment policies are being changed."
"A broad range of support measures are being implemented to help impacted employees adjust to the change in their financial position."
Jeremenko says while there are still details to be worked out, an initial reading of the draft bill suggests the government has listened to the industry's concerns with regard to transitional arrangements.
"The changes are coming, but the government does deserve some recognition for the delay."
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Tax experts welcome federal government delay for living away from home changes

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Another day, another report on our growing housing supply crisis.

Today the COAG Reform Council, headed by Paul McClintock, released its <a target="_blank" href="https://www.coagreformcouncil.gov.au/reports/housing.cfm">third annual report</a> on performance against COAG's 2009 National Affordable Housing Agreement, covering 2010-11.

The report's conclusions are disheartening. It finds that rental affordability got worse between 2007 and 2010: more than 40% of low-income households are now in "rental stress" (defined as rent higher than 30% of gross household income), up from 37% in 2007. Some 60% of people in the lowest 10% of incomes face rental stress, up from just under 50%. And the problem is worst in NSW, which has been identified in other reports by the <a target="_blank" href="https://www.crikey.com.au/2011/12/22/national-housing-supply-council-report/">National Housing Supply Council</a> and from <a target="_blank" href="https://www.crikey.com.au/2012/06/22/census-reveals-the-consequences-of-a-national-housing-myopia/">the census</a> as the worst state for housing supply.

The Reform Council's report also concluded that housing had become less affordable through the period, though primarily as a consequence of interest rate rises. The problem was particularly acute in capital cities, and Queensland was the worst state for affordable housing for low-income earners. But the overall level of mortgage stress for low income households remained the same over the period.

The report also concluded that the gap between the level of housing supply and demand had more than doubled to nearly 187,000 since 2008. The numbers are a little more conservative than the most recent National Housing Supply Council <a target="_blank" href="https://www.nhsc.org.au/content/publications/housing_supply_affordability/exec_summary">update</a>, which revised its estimates of the dwelling gap to 200,000 in 2010. Both reports agree, however, the NSW was the worst state, with a dwelling gap of about 73,000-74,000, but Queensland was getting worse.

The COAG report is separate from the process initiated in April 2010 -- Kevin Rudd's last COAG meeting -- where COAG agreed <a target="_blank" href="https://www.coag.gov.au/coag_meeting_outcomes/2010-04-19/docs/Communique_20_April_2010.pdf">"a housing supply and affordability reform agenda"</a> with a tight timeframe for a comprehensive series of reports and reviews examining housing supply and government policies that acted as impediments to the delivery of more housing stock. All of the activity associated with the agenda was scheduled to be completed by the end of 2010, except for one project that was given until mid-2011.

Since then the agenda has disappeared without trace, as if it was all a figment of Rudd's imagination. According to the National Housing Supply Council, from the time COAG announced the agenda to the end of 2011, the dwelling gap blew out by another 28,000 to 228,000.

The COAG report noted that it was having difficulty reporting on the relevant partnerships between state and Commonwealth governments that contribute to the housing agreement, because it "cannot link the activity reported to the outcomes and objectives in the National Agreement. Reports on national partnerships generally provide information on activity without evidence of the effect the activity has on outcomes ... We cannot clearly mark progress against commitments or analyse them comparatively."

That is, the states are good at saying what they're doing but not so good at saying whether they're meeting outcomes or making progress in a way that enables the council to compare across states.

We're thus left with only a limited number of indicators, and chiefly that ever-growing dwelling gap, to illustrate government failure.

As the history of the COAG housing agenda shows, this was briefly a priority for federal Labor, but the Gillard government appears to have lost interest in it. Low-income earners across Australia will continue to suffer the consequences.
This article originally appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey</a>.
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cknowlton-QnEa6ntUYP

Housing affordability fell between 2006 and 2010: COAG

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The May 2 cash rate cut of 50 basis points has failed to stimulate demand for mortgages, with just 0.3% growth in housing credit issued by lenders over the month, according to RBA seasonally adjusted figures.
Annualised growth has now fallen to 5.1% setting a new record low for RBA records dating back to August 1977.
The last time monthly mortgage growth slumped to 0.3% was in June last year. Monthly mortgage growth has not been above 1% since June 2007, when it rose 1.3% over the month.
The May 0.3% figure follows growth of just 0.4% in February, March and April and 0.5% in January.
Owner-occupier lending rose 0.3% over May, and loans for investment housing rose 0.4%.
Savanth Sebastian, economist at CommSec, says the housing sector has been a "key area of weakness over the past year"
"And the latest data on housing credit suggest that the sector is not turning around all that quickly.
"Granted there does seem to be a pickup in enquiry levels as more potential homebuyers are enticed by the attractive lower interest rates on offer, but it will take time for activity levels to pick up," he says.
Also commenting on the figures, John Peters senior economist at the Commonwealth Bank says consumer sentiment surveys reveal "deep household pessimism regarding Australia’s economic outlook, employment prospects, and consumer’s future financial situations".
"Combined with softening house prices and wilting local equities, consumers are currently unwilling to take on additional debt, and are in fact paying down debt at a great rate of knots," he says.
The total value of owner-occupier mortgages increased from $838.2 billion to $840.8 billion.
The total value of loans for investment purposes increased from $401.8 billion to $403.8 billion.
Business lending increased by 0.8% over May, after growing by 0.7% over April, to be up 3.3% for the year to May.
Personal lending increased by 0.1% over May, after decreasing by 0.3% over April, to be down 1.6% for the year to May.</body></html>

lschlesinger-FZcF9M3vE6

Mortgage lending growth slumps to new record low in May despite 50-basis-point cash rate cut: RBA

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Lend Lease’s timber development Forté in Docklands is gaining height at a rapid pace in the latest update to our photographic survey of the site.
<img src="/images/stories/2012/06/fortejune1.jpg">
Work on the project began four weeks ago, and the development is already taking form.
Unveiled in May, the building is due to be the world’s tallest wooden residential building.
It appears to have started on parts of its fourth storey. It was at level one when the first photos were taken. Four weeks later it’s now getting closer to its eventual height of 32 metres.
<img src="/images/stories/2012/06/fortejune4.jpg">The $11 million building will be Australia’s first timber high-rise building. Set on an elevated concrete podium, the building will rise to 10 levels and will be built with prefabricated wooden panels made from cross-laminated timber and will feature 23 apartments.
Site work commenced in February with a targeted completion date of October – quicker than it takes to build some single-family houses.
<img src="/images/stories/2012/06/fortesite3.jpg">Forté's progress as of June 8
<img src="/images/stories/2012/06/fortejune3.jpg">
Forté's progress as of June 29
{module Would you buy an apartment in a timber building?} 
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Lend Lease’s Forté, set to be world’s tallest timber high rise, towering quickly

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The Reserve Bank is “ahead of the curve” on its cash rate setting and is set to leave the rate unchanged at 3.5% at its July meeting on Tuesday, says HSBC Australia chief economist Paul Bloxham.
He says the rate cut in June was insurance taken out against the risk of global conditions worsening further.
“As such, it seems highly unlikely the RBA will cut again next week.
“As it has already accounted for some of the downside risk to global growth, it also suggests there may be fewer rate cuts to come than there might otherwise have been," Bloxham says.
Bloxham expects one more rate cut in the second half of the year due to “global risks” playing out, but thinks a further 80 basis points of cuts being priced by interest rate markets  by the end of the year is overdone.
Bloxham says that the in the days following the June 25 basis point rate cut, “it became apparent that momentum in the local economy was stronger than had generally been expected.
“GDP growth was strong in the first quarter (4.3% year-on-year), as was employment in May (up 39,000 jobs).”
He also highlighted the RBA’s monetary policy statement released two weeks after the June decision, which said it was a “finely balanced” call.
“It is clear to us that the RBA’s last cut was global risk insurance, not a response to local conditions.
“But insurance is not free. By cutting rates further the RBA takes the risk that inflation could pick up more. This risk was clearly weighed against the risk that global conditions worsen further, thereby weakening the local economy.
“In the RBA’s view, it seems that the ‘path of least regret’ was to cut rates in the face of global risks."
Bloxham says the RBA was in the position to cut rates at its June meeting due to inflation being currently low at an underlying rate of 2.2%
He expects inflation will rise in the second half of 2012 – but only marginally – due to the carbon tax .
The carbon tax is forecast to boost headline inflation in the third quarter by around 0.7  percentage points and underlying inflation by around 0.2 percentage points.
"The RBA will look through the impact of the carbon tax on inflation. It is already publishing inflationforecasts that exclude the impact," says Bloxham.
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RBA to leave cash rate on hold next week with one more cut likely this year: HSBC’s Paul Bloxham

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The proportion of mortgage holders a month or more behind in their mortgage repayments rose only marginally in the first quarter of the year, according to ratings agency Fitch, which says falling interest rates prevented a greater rise.
In its latest Dinkum Index for the first quarter of 2012 Fitch records that mortgage delinquencies rose from 1.57% in the December 2011 quarter to 1.6% in the first quarter of 2012 – equating to about $35 million loans turning bad.
Click to enlarge
<a href="/images/stories/2012/06/fitchjune29.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/fitchjune29thumb.gif"></a>
The rise was mainly due to the number of loans more than 90 days in arrears, which increased by six basis points.
Fitch usually anticipates a higher rise in mortgage delinquencies in the first quarter of the calendar year due to “a portion of Australian borrowers temporarily affected by Christmas spending”.
“The two cash rates cuts in the fourth quarter of 2011 have indeed outweighed the seasonal Christmas spending in combination with minor increases in bank standard variable rates, as shown by the stable 30-59-day arrears,” says James Zanesi, director of Fitch's structured finance team.
"The decision by the Reserve Bank of Australia to cut cash rates by 25 basis points both in November and December 2011 to 4.25% has given some temporary relief to borrowers, as 30-59-day arrears have been stable overall and have not increased as much as others," he says.
Fitch expects the interest rate cuts on May 2 and June 6 to “impact positively on Australian mortgage performance”, with lower interest rates expected to result in improved affordability for existing borrowers and thus to lower arrears levels.
“Although delinquency rates are increasing and are above the historical Australian average, they remain low relative to other countries and well within the expectations used to derive Fitch's ratings for Australian RMBS transactions,” says Fitch.
It says the only major threat to Australian mortgage performance is declining house prices.
“A drop in housing prices could negatively affect transactions, in terms of recovery rates and time. As house prices drop, eventual sales prices are more likely to be below the mortgage balance, leading to losses and LMI (lenders mortgage insurance) claims. This depends on when the loan was written. Less seasoned mortgages tend to have amortised less and therefore tend to be more sensitive to house price changes,” says the ratings agency.
Zanesi says an increase in the proportion of loans 90 days or more in arrears is usually associated with a stagnating housing market, but in the third quarter Fitch monitored an increase in hardship cases and this may have contributed to the increase.
There was a notable rise in delinquencies among self-employed households.
Fitch's Dinkum Low-Doc Index recorded a growth in 30+ day arrears to 7.08% in the first quarter of 2012 from 6.62% in the December 2011 quarter.
Delinquencies in the low-doc segment tend to be two to 2.5 times those of full-doc loans, but in the 12 months to the end of March 2012 they were four to 4.5 times higher.
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Mortgage delinquencies rise marginally in first quarter, but rate cut forestalled higher increase: Fitch

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“Trust not their presents, nor admit the horse.”
Nope, it’s not about the legend of the Trojan horse.   In this case – and it is my blog after all – we’re talking about government incentives.
For the most part, the theory behind home-buyer incentives (and these include concessions for stamp duty or transfer duty as it is now known) is commendable.
But in practice, as we have seen, most government handouts can be misguided and misdirected – sometimes amounting to little more than political nonsense.
Ultimately, as we wrote here, grants like the first-home buyer grants, for example, have the propensity to be detrimental to first-home owners; being inflationary in nature, and resulting in upward movement of prices.
In short, <a target="_blank" href="https://matusikmissive.wordpress.com/2010/02/24/beggars-belief/">I don’t like politically inspired property incentives</a>.
But that’s not to say that they are all bad, all the time, and I will concede just a tad that some grants and concessions may provide positive impact.
On the eve of a new financial year, here are some of the changes that we can anticipate in home-buyer incentives and transfer duty:
Queensland will say hello to new transfer duty rates from July 1st.  This is a reinstatement of the principal place of residence exemption and applies to the first $350,000 value in a home.  Further concessions will remain for first-home buyers – a $10,000 grant will be available between August and January.
In terms of transfer duty relief, numbers here are enticing – a $300,000 property purchase, for example, that previously incurred $8,325 in duties will now require just $3,000.  And a $500,000 purchase that previously incurred a transfer duty of $15,525 for example, will now require $8,750.
New South Wales will get a new home grant scheme – purchasing or building a new home will provide $5,000 to buyers for homes valued up to $650,000 and land valued at up to $450,000.
The state will shelve its previous bonus scheme which provided a full exemption on transfer duty for new homes up to $600,000 and land up to $400,000.
Victoria – From July 1, two first-home buyer schemes will be dropped – the $13,500 first-home bonus scheme and the $6,500 regional bonus scheme.
First home buyers will receive an increase in transfer duty reductions from 20% to 30% on the January 1, 2013; from 30% to 40% the following January, topping out at a 50% reduction effective September 2014.
South Australia – transfer duty will be scrapped for off-the-plan apartments –<a target="_blank" href="https://www.propertyobserver.com.au/residential/reducing-stamp-duty-not-boosting-building-the-key-to-solving-housing-crisis-michael-matusik/2011110852260"> here’s what we think about paying duty on off-the-plan purchases</a> –  in Adelaide City and North Adelaide. 
Elsewhere, a full concession will be capped for off-the-plan apartments valued up to $500,000 up to 30th June 2014.
From July 1 the first-home bonus grant will be halved, with up to $4,000 available for eligible buyers who qualify for the federal $7,000 first-home owner grant, and the grant will be abolished entirely from July 2013.
Schemes come and go; some hold promise and may deliver; too many fizzle and are quietly put to bed.
While the introduction of a new grant, or the ending of a current one, often brings forth a flurry of activity, more often than not, the activity is not sustained.  As we wrote here, there’s a lot that we can do, and a lot that we need to undo to boost our ailing property industry.  But building grants and the like are not always the answer.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition. Michael has launched a new initiative, called<a href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>. Think Matusik brings together expert opinion and select property opportunities.
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michaelmatusik-49YzLvdmNv

Government handouts can be misguided and misdirected

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It is a rare thing for me to say I agree with the Prime Minister, but I believe she has it entirely right when she says state government-based property taxes are standing in the way of economic growth in this country.
As Australia’s largest independent real estate network, we do everything we can to help people with workforce- and lifestyle-driven mobility, but the state governments are not doing anything to help – a fact we have been on the record as raising on numerous occasions over the last 12 to 18 months.
Research has shown that a lot of city dwellers would like to make a move to the country, but they find the costs of selling and buying a home, including stamp duty, prohibitive.
Last month, we were proud to sponsor the inaugural Regional Victoria Living Expo, which promotes the attractions of regional centres and smaller townships throughout rural Victoria.
At that event, Victorian Deputy Premier Peter Ryan released research that indicates 11% of Melbourne’s metropolitan residents, around 450,000 people, are contemplating moving to regional Victoria in the next three years.
The main thing standing in their way is the cost of buying and selling a home, and stamp duty is a large part of that cost. So, on the one hand state governments want people to move within their state and the federal government needs them to be able to move between states, but the state governments’ stamp duty is one of the major costs that are stopping that happening.
Last year, stamp duty accounted for 37% of total property related taxes in Australia, and I believe the reliance of governments on property taxes is standing in the way of Australia’s economic growth.
We need to stop penalising people who have saved enough money to buy a house or who are prepared to follow job opportunities interstate.  Stamp duty is an anti-growth tax and is a lazy way for governments to keep their budgets in check.
Ray Ellis is CEO of <a target="_blank" href="https://www.firstnationalnews.com">First National Real Estate</a>. 
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