<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]

Joel Robinson

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

Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

[smartcode_project:default project_id=111820 project_image_fid=344699]

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

[smartcode_project:default project_id=136442 project_image_fid=374084]

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

[smartcode_project:default project_id=134954 project_image_fid=4553]

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul>
	<li>Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li>10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li>An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li>Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li>No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li>Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li>Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul>
	<li>Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li>Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li>Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li>Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

NSW parliament passes 10-year defect insurance laws for new apartment buyers

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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Two successive rate cuts helped lift consumer sentiment about buying a house or unit in June but have had little impact on overall consumer sentiment, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment. 
Responses to questions on “time to buy a dwelling” and “time to buy a car” both showed an improvement in June, with these indexes rising 8.2% and 7.5% respectively. 
The “time to buy a dwelling” index now stands at 128, compared with 118.2 in May and 115.4 in June last year, well above the historical average of 122.3. 
The overall index increased by just 0.3% from 95.3 in May to 95.6 in June and is well down on the 101.2 level recorded a year ago and the historical average of 101.7. 
The latest survey of 1,200 adults over 18 was conducted in the week from June 4 to June 10. The RBA cut the cash rate by 25 basis points to 3.5% on June 6.
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“Lower interest rates and lower prices are clearly improving affordability and buyer sentiment on both fronts although buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security,” says Westpac chief economist Bill Evans. 
Commenting on the overall consumer index, Evans says “clearly other factors are dominating rates in the minds of consumers – those factors are concerns about the domestic economy and international conditions”. 
Evans says the June survey included additional questions on “news” categories recalled and whether news was assessed to be favourable or unfavourable. 
“The results show negative news around the economy and international conditions dominated.” 
“This is another disappointing result. It follows a second consecutive cut in the official cash rate by the Reserve Bank.” 
“Sentiment has risen only 1.1% from its April level and remains 1.7% below the level recorded in October last year despite a 125-basis-point reduction in the cash rate that has brought the average standard variable mortgage rate down by nearly 1%,” says Evans.
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'Time to buy a dwelling' sentiment improves but unlikely to flow through to purchases:  Westpac’s Bill Evans

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Novotel Melbourne St Kilda – Melbourne’s premier beachside hotel – has been listed for sale by Tourism Asset Holdings Limited (TAHL) with market observers expecting a price between $55 million and $60 million.
It last sold in 2008 and before that changed hands for $21 million in 1992 in the aftermath of the early 1990s recession.
An international marketing campaign will kick off next week led by Wayne Bunz and Mark Wizel of CBRE Hotels, with expressions of interest closing on July 26 – unless sold prior. 
The recently refurbished hotel includes 211 rooms over six levels on a 5,791-square-metre site boasting 270-degree views of Port Phillip Bay. 
The Novotel Melbourne St Kilda is operated by Accor, the world’s biggest hotel and tourism group. 
The management agreement with Accor has a further nine years to run, when vacant possession of the hotel will be available, “offering a myriad of future redevelopment options,” according to CBRE. 
The hotel is zoned residential 1 under the City of Port Phillip. 
The hotel originally opened in 1991 as the St Moritz hotel, which became the Novotel Bayside in 1993 when Accor acquired the management rights and then Novotel St Kilda in 1999.
It was originally developed by Michael Lasky and Izzy Hertzog. 
Lasky founded property development group Lascorp, focused on retail developments. 
Izzy Hertzog, a Holocaust survivor who came to Australia in 1949, made his fortune in wholesale car sales before moving into property development. He died in 2010.
The hotel was acquired by C. K. Fu's Hong Kong-based manufacturing company in 1992 for $21 million after being placed in receivership in 1991. The hotel was sold by the State Bank of South Australia as mortgagee.
The hotel stands on the site of the St Moritz ice rink, which operated from 1939 to 1981, attracting more than 2000 people to its 1,850 square metres of ice. 
The ice rink was destroyed by a fire in 1984. 
The first building on the site was the Wattle Path Dance Saloon and Café, which opened in 1923. 
In 1933 the property was acquired by theatrical entrepreneur F.W. Thring, who transformed the building into one of the largest film studios in Australia under the name Efftee Productions. 
The studio only lasted a couple of years, closing in the late 1930s. 
Bunz tells Property Observer the hotel will be marketed to the majority of the Asian market, with strong interest expected from this market. 
He says it will be “keenly sought after by traditional and non-traditional, national and international investors”.
“In the current market, buyers are looking for unique assets that will allow value-add opportunities.  The Novotel St Kilda presents just such an opportunity by combining a strong income-producing hotel that will generate a healthy return on equity, with significant vacant possession opportunities including the potential to redevelop the site in the future.
“In the past 18 months there have been a number of significant hotel asset transactions, with a strong surge in the appetite of private and offshore investors, particularly Asian-based groups,” Bunz says.
“It stands on a substantial land holding in St Kilda,” Bunz tells Property Observer. 
Prior to the formal sales listing, TAHL chief executive Matthew Eady said there had been “significant unsolicited interest in the property, given its premier location, strong ongoing cashflow and attractive alternate use as a residential development”. 
“Given the strength of investor and developer interest, we have decided to consolidate that into a formal sales campaign,” he says.
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Asian buyer interest expected for Novotel St Kilda, with price expectations around $55 million

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Despite the NSW government’s best intentions, sales of new houses and apartments to first time buyers might actually ease off until October 1.
Savvy first-home buyers might delay their new home acquisitions to secure an $8,000 bonus based on a $550,000 new dwelling.
The entitlement of first-home buyers who sign a purchase contract for a new home between yesterday's state budget and September 30 is $20,240 + $7,000 totalling $27,240.
But wait until October 1 and it’s $20,240 + $15,000, or a maximum total of $35,240.
The off-the-plan sales industry has been enjoying a sales fillip – compared with the rest of the Sydney market – in the lead-up to the initial June 30 deadline, which has now been rolled over until September 30.
They might just get an unexpected pause.
No doubt some buyers will seek to negotiate their way around the situation by seeking to put a red dot sticker on their desired abode and hope it doesn't get sold in the meantime. Getting an option to purchase is entering a legal minefield.
An eligible transaction is: (a) a contract made on or after October 1, 2012 for the purchase of a new home in New South Wales, or (b) a comprehensive home building contract made on or after October 1, 2012.
A contract for the sale or transfer is not eligible if it replaces an agreement made before October 1, 2012.
There are <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-11-things-you-need-to-secure-the-%2435240-saving-under-the-nsw-first-home-owners-grant-scheme/2012061255076">11 important rules relating to eligibility</a>.
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Budget's first-home buyer $8,000 bonus might actually pause NSW new home purchasing until October

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There was a 13% increase in the volume of Perth residential sales in the March quarter, with first-home buyers and investors returning to the market, according to CBRE’s first-quarter WA market view report. The firm says a recovery could be under way. 
CBRE recorded 5,663 sales in the Perth metropolitan area over the first three months of the year, compared with the 5,268 in the previous quarter and a “noticeable contrast to conditions in the prior 12 to18 months, when sentiment was low”, according the firm’s associate director of global research and consulting Sam Reilly. 
Total house sales over the 12 months to March reached 22,676, a slight decline from the 23,032 over the previous 12 months. 
Perth house sales peaked in early 2004, with just over 40,000 sales recorded. The market reached just under that peak in March 2006 and traded strongly until early 2007, when the ill winds from the GFC first began to be felt. 
Perth’s inner-city apartment market has been particularly strong, buoyed by the resources sector through the second quarter, with both owner-occupier and investor demand on the rise. 
Unit sales rose from 1,191 in the December quarter to 1,852 in the March quarter, with CBRE recording 6,654 unit sales over the year to March. The unit market last peaked around March 2006 with just under 10,000 annual sales. 
“Perth’s inner-city unit market has experienced notable change recently, with oversupply now correcting as take up is being driven by the resource sectors, a trend that clearly highlights the tangible impact resource growth is having on Perth at present,“ says CBRE director of valuation and advisory services Michael Veletta.
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Perth house prices increased by 3.9% over the quarter to a median of $487,500, though they are up only 0.5% over the past 12 months, according to Residex data.
The RP Data-Rismark Daily index has Perth home values up 0.76% for quarterly growth to June but still down 1.78% year-on-year. 
Reilly says it is too early to point to a full market recovery, but the increases in sales volumes suggested renewed interest from buyers following the price corrections that had substantially reduced capital values across all sectors of the market. 
The increase in activity has been attributed to the flow-on effect from oil, gas and iron ore industries in the state, which CBRE says “continues to underpin the market due to high infrastructure spending and increased employment opportunities”.
Deloitte Access Economics is forecasting the WA economy to grow by 4.2% annually between 2012 and 2017. 
However, Reilly warns that while the resources boom provides Western Australia with a strong advantage in terms of economic growth, the risk of a slowdown to commodities markets remained. 
“If that were to occur in a substantial manner, the residential market would immediately come under pressure,” he says. 
The report notes recent REIA data showing Perth vacancies trending down in the December quarter to 2.3%, compared with 2.8% in the September quarter, with population growth creating increasing demand for rental accommodation.
 
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Looking ahead towards the second quarter, CBRE notes that the more affordable sub-$500,000 house market in Perth has fared the best as first-home buyers targeted affordable housing stock following some easing in interest rates. 
First-home buyers have faced competition in this price bracket from investors. 
Veletta says investors are focused on the fact that rentals are beginning to reach parity with debt servicing levels. 
“Price declines have obviously assisted to increase demand levels, but the high levels of rental growth have been equally important to stimulate this area of the market,” he says. 
The latest REIA/Deposit Power report records a 4.1% increase in the number of loans to first-home buyers from 3,757 in the December quarter to 3,910 in the March quarter. 
First-home buyers were attracted back to the market despite housing affordability worsening in the state of the March quarter, with the proportion of family income needed to make mortgage repayments increasing by 22.9% to 24.1% over this period. 
Rent payments as a proportion of family income increased by 0.7% to 20.8% of family income. 
Further up the price spectrum, the $500,000 to $1 million bracket remained soft and is expected to stay relatively subdued until improved levels of buyer interest in the first-home buyer market begin to flow on. 
“As owner-occupiers that currently own houses in the sub-$500,000 bracket begin to trade up, the middle range markets should see demand levels improve. This is a gradual process, however, and impacts on capital growth will take some time,” says Veletta. 
Outside of Perth, a recovery appears unlikely, with regional areas such as the Peel region continue to experience oversupply. 
“Mandurah continues to chug along with no great signs of recovery, limited demand, small buyer pool and growth in employment concerns,” Veletta says. 
Activity levels also remain low in WA’s land sales market, with developers offering a range of incentives to boost demand levels. Established stock is slowly being taken up, with slight increases in building approvals recorded.
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Perth residential market poised for recovery, buoyed by mining boom: CBRE

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The Reserve Bank of Australia governor Glenn Stevens says the mining boom is not to blame for Australia's multi-speed economy.
Stevens suggested the economy was always a patchwork, "never a seamlessly woven garment."
"It's very rare that all sectors and all regions go at the same speed at the same time.
"Usually, if that's happening it's a recession or an unsustainable boom."
The major shift in household spending combined with saving patterns was now the overriding influence on the Australian economy, he told the federal government's economic forum in Brisbane.
"I actually think that a lot of the disquiet and dissatisfaction that we see isn't really related to the mining boom at all," Stevens said.
"I think it's got a lot to do with changes of household behaviour, which come after a very unusual period of strong spending, leveraging up and saving nothing out of current income.
"And that was bound to end sooner or later, and it has. In fact, it ended about five years ago," he said.
"And we are still, I think, coming to grips with the importance of that now, and I think it's a significant factor that is behind some of the disquiet we see."
Stevens noted productivity growth had fallen in the past six to eight years, and would take "unpopular decisions to turn it around," the ABC reported.
He was urging the Government to carry out the Productivity Commission's "long list" of reform ideas, although he warns that some of the changes will be very difficult to implement, and "politically hard" for governments to achieve.
There were 14 charts within Stevens's speech.
Property Observer publishes five of them that give an insight into the state of the economy for prospective property investors.
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The RBA's glass-half-full chart presentation to the Prime Minister's global economy forum

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Be ready for a surge in new dwelling starts lead by New South Wales, Victoria and, of course, mining-boosted Western Australia. This revival will boost Australian economic numbers, which may delay further interest rate cuts.
When the figures are calculated we are going to see a big improvement in Australian housing affordability, which will underpin the housing resurgence. And in both NSW and Victoria state government actions will drive sales.
NSW is doubling its first-home buyers’ grant from October 1 and then dropping it 14 months later. It is also providing a grant for the purchase of properties under $650,000. From October these actions will boost the market – which means it will be wobbly for four months.
NSW is also taking steps to try and break the bureaucratic obstacles that curb development. My builder friends tell me the politicians are doing their best but currently there are too many bureaucrats standing in the way. Eventually the politicians will win, particularly as the size of the public service is being reduced.
Victoria is going the other way and will boost figures for the next six months. Victoria is going to end its first-home buyers’ grant on June 30 (the federal grant remains). That action is currently bringing forward a volley of new home buyers anxious to sign up by June 30. Victoria is also releasing new areas of land and it hopes the extra supply will keep land prices down to offset the withdrawal of the grant. I suspect that in 2013 the grant may need to be restored, but that’s down the track.
These grants come at a time when there has been a fall in land values, which increases affordability, and builders are presenting house-and-land packages with much smaller and cheaper houses than was the case a few years ago.
Add to these developments lower interest rates, and there is a big rise in affordability. Whereas the Australian mining and large construction industries have seen big rises in the cost of building, partly a result of bad management and union action, in home building the efficient independent contracting system has been very effective in maintaining and improving productivity rates so prices have not exploded. In some cases prices have fallen.
The non-mining Australia depends on both retail and housing activity. Retail is tough, but at least for the next year there will be a boost in housing.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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Improved affordability will underpin housing market resurgence: Gottliebsen

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The NSW state budget takes two steps forward and one step back on housing affordability.
Abolishing the first-home owners’ grant for existing properties is a positive move, because we know it simply helps to push up prices when supply is restricted. That $7,000 just goes straight into the pocket of the seller, not the home buyer.
Sydney clearly needs more new homes built, but unless the community can reach a consensus about how and where new development can take place, increased grants for new homes might not have any effect, or worse, simply push up prices for new homes as well.
It’s disappointing that there is no new money for affordable rental housing.
This budget does little for the 180,000 renters in New South Wales struggling with high housing costs, and actually cuts the number of people who will be assisted in the private rental market.
With some of the highest housing costs in the country, and more than 300,000 households in New South Wales under housing stress, the New South Wales budget falls well short of fixing this problem.
While it’s not quite shifting deck chairs on the Titanic, it’s awfully close to sewing cushions for the lifeboat.
Sarah Toohey is campaign manager of <a href="https://housingstressed.org.au/" target="_blank">Australians for Affordable Housing</a>.
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NSW state budget takes two steps forward and one step back

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RBA governor Glenn Stevens delivered a 'solid' <a href="https://www.rba.gov.au/speeches/2012/sp-gov-080612">speech</a> last week. Solid being a favoured, if over-exercised, bromide for central bankers. Stevens made a few interesting remarks, which, if I can say so, echoed points I've consistently pushed here.
First, the local media and local economists have not been dispassionate in assessing Australia's economic circumstances. As I've said before, if you predicted a raft of rate cuts late last year on the basis of a weak Australian economy, you were indisputably right for the wrong reasons. Stevens comments:
“Yet the nature of public discussion is unrelentingly gloomy, and this has intensified over the past six months. Even before the recent turn of events in Europe and their effects on global markets, we were grimly determined to see our glass as half empty. Numerous foreign visitors to the Reserve Bank have remarked on the surprising extent of this pessimism. Each time I travel abroad I am struck by the difference between the perceptions held by foreigners about Australia and what I read in the newspapers at home.”
The good news is that Stevens's speech has had an immediate impact on editorial behaviour and hamstrung the more hysterical gloomers. Most of the major media outlets have jumped aboard, with a notable shift in the tenor of output in the big broadsheets. Let's see how long that lasts.
The second point, which Stevens would never admit, is that the RBA are worried about the effects of excessively low interest rates on asset prices, and housing in particular. This has been compounded by the fact that the RBA made a policy mis-step in cutting rates too hard between November and now on the basis of flawed survey data, financial market speculation, and subjective forecasts.
In his speech, I was intrigued to see Stevens warning Australians against relying on trend house price growth and defensively arguing that the RBA was not cutting interest rates to bolster asset prices. For mine, this is a subtle tell apropos the RBA's policymaking mistakes. Suddenly it is worried about unintended consequences:
“You don’t have to be a believer in bubbles to think that a return to sizeable price increases and higher household gearing from still reasonably high current levels would be a risky approach. It would surely be a false basis for confidence. The intended effect of recent policy actions is certainly not to pump up speculative demand for assets.”
This is not exactly right. First, the RBA thinks there has been massive underbuilding in the housing sector and would like to see a big increase in appropriately located and constructed housing supply over the years to come. The central bank has said this repeatedly.  Second, the RBA (now) knows – as I warned years ago – that it is not going to get investments of scarce capital in risky housing supply while asset prices are declining.
The most germane thing about asset prices is this. On the one hand, the RBA knows that the Australian banking and mortgage insurance systems have been heavily criticised by institutional investors for their high exposures – 60% on average for the banks – to Australia's supposedly over-valued housing market. This is unambiguously regarded as Australia's number-one macroeconomic risk. The RBA spends considerable time and effort meeting privately with global investors trying to convince them otherwise.
The RBA further knows that if house prices were to decline materially, it would imperil the entire financial system. The disaster-delivery-device would, of course, be the banks. Slumping prices would slash the value of collateral on bank balance sheets. This could cause credit rationing that further accentuates the price falls, and so on. Rest assured, the RBA would do everything possible to resist this outcome, and would absolutely use interest rates to support asset prices. This is an integral part of the RBA's "financial stability" mandate, which it is very focused on.
It is also true that the RBA has been somewhat unnerved by the recent house price action, with, thus far, a failure to see any obviously positive response to the central bank's anxious cuts.
Now I don't think there is much chance of this negative asset price/bank credit rationing feedback loop coming to pass. But it is precisely the sort of scenario that gives Glenn Stevens and Phil Lowe heart palpitations.
(As a technical aside, I think it is fascinating to see the RBA referencing Australia's new "daily" house price index data, noting that while prices stabilised in the first four months of 2012, they started slipping again over mid-April and May.)
 
<hr class="system-pagebreak">
 
Recent RBA rate cuts have, therefore, been motivated partly to afford some relief to the struggling housing sector. And there would be much more if the value of housing started plummeting.
This brings me to a third observation. The RBA saw house prices surge nearly 14% across Australia's capital cities in 2009 in response to its ultra-low rates. It watched as Melbourne house prices jumped a remarkable 35% over 2009 and 2010. It genuinely wants to avoid a repeat of this saga. That is to say, it does not want to have to slash rates to the point where they start stimulating unseemly asset price growth.
A fourth nugget buried in Stevens's speech was his belated nod in the direction of Australia's poorly served, and numerically superior, savers (as opposed to borrowers), which regular readers would know has been a topic of much discontent here:
“We cannot neglect the interests of those who live off the return from their savings and who rightly expect us to preserve the real value of those savings. Popular discussion of interest rates routinely ignores this element, focusing almost exclusively on the minority of the population – just over one-third – who occupy a dwelling they have mortgaged. The central bank has to adopt a broader focus. And to repeat, it is not our intention either to engineer a return to a housing price boom, or to overturn the current prudent habits of households. All that said, returns available to savers in deposits (with a little shopping around) remain well ahead of inflation, and have very low risk.”
I would contend that on the basis of the latest information, the real returns being earned by Aussie savers are probably 50-70 basis points too low, especially if you assume core inflation rises in quarter two as a function of fading tradeable disinflation.
Current monetary policy settings reflect too much questionable insurance and not enough fact. Don't get me wrong. The world could end next month, and, as I've explained in detail before, the RBA could be easily compelled to cut the cash rate to 1.9% or lower. But that is not my expected "modal case" for policy right now.
Finally, Stevens returned to a favourite narrative, which I have highlighted in recent presentations. And that concerns the migration of the global centre of economic gravity away from the North Atlantic towards "Chindia". This has been an entirely unplanned and coincidental boon for resources-rich Australia, which hubris-laden policymakers have resisted acknowledging as a critical explanatory variable in our post-GFC economic performance. Stevens redresses this imbalance somewhat, which was comforting to see:
“We face a remarkable period in history. The centre of gravity of the world economy seems to be shifting eastwards – towards us – perhaps even faster than some of the optimists had expected. Granted, that is partly because the relative importance of Europe seems to be shrinking, perceptibly, under the weight of its internal problems. But even if the Europeans manage the immediate problems well, there is no mistaking the long run trend. That this comes just as a very unusual period for household behaviour in Western advanced countries (including Australia) has ended, has been a remarkably fortuitous combination for Australia.”
Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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chrisjoye-JYhJsTrNRC

The RBA knows a material housing price decline would imperil the entire financial system: Christopher Joye 

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“The Australian government is hanging out the open for business sign, and demonstrating our very real commitment to attracting investment in the tourism industry.”
-Martin Ferguson, Minister for Tourism, May 2, 2012
Just six days after Martin Ferguson told the world “it is time everyone understands Australia is not only a great place to visit but a great place to invest”, Treasurer Wayne Swan vowed to double taxes on international investors.
Ferguson’s Australia Unlimited launch, his glossy Australian Tourism Investment Guide, which boasts of our low 7.5% withholding tax, plus the website of 80 “investment ready” projects is ludicrous in light of the Treasurer’s budget announcement.
Japan and Singapore became more attractive investment destinations on budget night.
Stunned investors across the world and in Australia condemned the decision and the damage it does to our reputation as a safe haven for capital.
They also acted.
Some of the planet’s most reputable pension funds froze negotiations with Australian partners within hours of the government’s announcement.
Since then, several have reallocated their capital to other countries. One fund has already redirected nearly half a billion dollars of investment to China.
The doubling of withholding tax to 15% is a stupefyingly unnecessary own goal.
It’s bizarre that the government has ignored its own game plan for transforming Australia into a funds management hub.
Introducing the lower withholding tax regime in 2008, then assistant treasurer Chris Bowen said sagely: “You do not create a financial services hub through tinkering.”
David Bradbury, who is now the Assistant Treasurer, said: “If we are to be internationally competitive then … we must have rates of taxation that are amongst the lowest in the world.”
In short, he acknowledged that a small country like Australia needs the additional appeal of lower taxes to attract the globe’s flighty capital.
These days he boasts that we’re better off in the middle of the pack.
Since when is it smart to squander a world-beating lead and head for mediocrity?
The point of a low tax is to persuade more of the world to give us their savings to manage.
The strategy was working. Inbound international investment rose fivefold after 2008. We were on track to becoming the region’s funds management front runner.
At a time when other property markets were tanking, inbound investment supported local asset prices.
The extra international investment also reduced Australia’s reliance on debt finance.
As a double bonus, these new investors were quality long-term players, such as pension funds, sovereign wealth funds and global REITs.
In the main they financed quality assets that delivered community and environmental dividends. Just look at the number of five and six star green star buildings funded by international investors.
The government is now trashing this successful strategy at a time when Europe, which finances 80% of the world’s trade, is careening into a double dip and Asian growth is moderating.
It makes zero sense to become less attractive to the world’s savers at this dangerous economic tipping point.
We should reinforce our reputation for stability, not vandalise it.
Ferguson’s plea for international investment is just as relevant to sectors besides tourism, especially infrastructure.
Cash-strapped state governments will be big losers from a higher withholding tax.
The government says a steeper tax will increase its revenue.
In fact, its higher tax rate will decrease investment, imperil jobs in a construction sector that hasn’t recovered from the GFC and shrink overall tax revenue.
Less economic activity and less employment will result in less taxes across the board, including GST, corporate and property taxes. The government wants more money – it will get less. The measure will backfire.
Adding insult to injury, the budget also dumped the CGT discount for foreign investors.
The Property Council is working hard to persuade the Parliament to stick with a low withholding tax regime.
Peter Verwer is chief executive of the <a href="https://www.propertyoz.com.au/" target="_blank">Property Council of Australia.</a>
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Government's doubling of withholding tax an unnecessary and stupefying own goal

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So how can you tell if a market has turned the corner?
Market watchers will have their own theories on milestones that signal a change in the fortunes of the real estate market.  I, for one, think that Brisbane has turned a corner and is well-positioned on the property clock.
But why do I think this?  What measures am I using?  Well, here are my 10 market turn milestones.
<ol>
<li>Offers are made before a property goes “public”</li>
<li>Multiple offers are made – by different buyers – on the same property after listing</li>
<li>Properties start to sell above listed or reserve price</li>
<li>New properties start to sell above their resale value</li>
<li>Tightening vacancy rate and rising rents</li>
<li>The amount of established stock on the market falls</li>
<li>New housing supply falls below its long-term underlying demand</li>
<li>Job growth starts to accelerate</li>
<li>Sales volumes start to increase</li>
<li>The time resales remain on the market fall</li>
</ol>
Brisbane has nine out of 10.  Too early to call an upturn?  Maybe, but the signs are definitely there.  Of course, the proof in the pudding is a sustained rise in generic property prices.
Now, depending on which data set you believe, recent REIQ figures suggest that the Brisbane property market has turned that corner.  The median price in Brisbane rose 1.2% to $505,000 over the March quarter, according to the REIQ.
I have been helping a tradie mate to find a renovator’s delight somewhere across Brisbane’s inner- to middle-ring suburbs in recent weeks.  I am amazed at how quickly offers are being thrown at well-priced stock.  Many are received before the property hits the internet, the print media or even an agent’s window.  Properties are starting to sell before they even get officially listed.
This trend is also starting to happen in well-placed, well-designed and well-marketed new investment projects.  In inner Brisbane think Binary, Vivid and more recently Vine, to name a few.
According to Place advisory, there were 450 unconditional transactions during the first three months of this year – a historically quiet selling period – and this March quarter’s result was the strongest first quarter in over a decade.
And it appears to be going from strength to strength with Belise, in Bowen Hills, converting four out of every five walk-ins in recent months, with four sales alone last week, with another couple pending. Over 60 apartments have now sold in this proposed apartment complex since the beginning of the year.
According to Bees Nees City Realty, four out of their last five sales have had multiple offers submitted.  Other trusted realtors across the city are starting to report similar trends.
Also as I tweeted a few weeks back, I attended an auction run by Doug Disher Real Estate of a two-bedroom, unrenovated, post-war cottage in Brisbane’s St Lucia.  There were 17 registered bidders.  I mentioned to people present at the auction that it would sell for more than $725,000.  Many thought I was smoking something.  It sold under the hammer and in about ten minutes for $775,000, which was well above the reserve.
The timing of John McGrath’s arrival in Brisbane is no accident.  And Johnno is certainly no fool.
Brisbane’s vacancy rate now is just 1.5%, and rents rose by close to $20 across most residential rental properties across the city over the past 12 months.
The amount of resale stock on the Brisbane market has fallen by 8% since this time last year. And the city is undersupplied when it comes to new housing stock.  We are currently building about 90% of what we really need.
Of late, there has been much press about a pending oversupply of new apartments across inner Brisbane.  Now, while we have lots of new mooted apartment development, the fact remains that not enough new product is actually being built.  Over the last five years, for example, 13,000 new dwellings were required to accommodate the population growth, yet – based on the official statistics – just 8,017 new dwellings were approved.  Last year, just 1,902 new dwellings were approved.  At present there is a serious shortfall.
In addition, the latest ABS figures show that 22,000 full-time jobs were created across Queensland last year, and about half of them are in Brisbane.
Sales are now starting to improve, especially for apartment and townhouse stock, with sales up about 11% on last quarter.  Affordable apartment sales have lifted even further, up 22% in during the first part of this year.
What’s missing is a reduction in the time resale property remains on the market.
The average Brisbane resale property now takes 132 days (just over four months) to sell.  This is up from 105 days this time last year, or about a month longer (27 days).  However, this increase is in line with the Australian capital city average.
Now, why aren’t sales picking up or the time needed to sell falling?
For mine, most home buyers aren’t that confident.  While many that we speak to believe that the Brisbane market has bottomed, they can’t help being tempted to wait just in case prices fall a bit more.  On one hand, they want <a href="https://www.debtdeflation.com/blogs/" target="_blank">Steve Keen</a> to be kinda right, but on the other they believe in Michael Matusik, Terry Ryder, Michael Yardney et al.  So they are waiting in the wings, so to speak.
Also, another truism is that low offers are rare.  Yes, APM reports that the average private treaty discount for Brisbane is 8.5%, but experienced agents report that agreed contract prices average under 3% for well-priced property across Brisbane.
Buyers are reluctant to invest themselves emotionally (nor will they spend their time) on a property that is (in their minds) not realistically priced.  If a property is listed too high, buyers will simply move on to the next listing.  The internet allows this to happen with ease.
One of the real issues facing the Brisbane residential market (and elsewhere, too) is that too many sellers are unrealistic and also aren’t prepared to market their property properly.  Many should take their homes off the market or reduce their asking price.
Dropping the price can open up a strong market response, especially when the “market turned” signals are getting stronger.  Even in a buyer’s market, buyers will compete for a property they want, and price these days is a major part of that “want”.
And yet, in spite of an excellent position, good value for money and redevelopment potential, certain properties just aren’t selling. Curious, indeed.
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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