<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.

Joel Robinson

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

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

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?

<html><body>
With the ACT government moving to replace stamp duty with land tax, the Real Estate Institute of Victoria (REIV) has weighed into the discussion highlighting a 2012 report by the Australian Housing and Urban Research Institute (AHURI), which shows replacing the current system of state-levied stamp duty with a land tax in Victoria would cause the owners of more expensive land closer to the city to pay a much high proportion of the tax burden.
The AHURI report suggested that properties within 20 kilometres of Melbourne CBD, which currently pay 61% of the stamp duty bill, would pay 84% of a new land tax
The biggest shift in the tax burden would be for those properties within 10 kilometres of the city. The aggregate tax bill for these properties would rise from 29% under stamp duty to 46% under a land tax.
Conversely, those properties built on cheaper land further out from the city would pay less tax.
For properties built on land 20 to 30 kilometres from the CBD, the portion of the tax bill would fall from 17% to 10%, while in the next band (30 to 40 kilometres out from the city) the burden would fall from 8% to just 2%.
 
<div align="center">
<table cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td></td>
<td>
Proposed land tax
</td>
<td>
Stamp duty
</td>
</tr>
<tr>
<td>
 
</td>
<td>
% of aggregate revenue
</td>
<td>
% of aggregate revenue
</td>
</tr>
<tr>
<td>
0km &lt; 10km
</td>
<td>
46
</td>
<td>
29
</td>
</tr>
<tr>
<td>
10km &lt; 20km
</td>
<td>
38
</td>
<td>
32
</td>
</tr>
<tr>
<td>
20km &lt; 30km
</td>
<td>
10
</td>
<td>
17
</td>
</tr>
<tr>
<td>
30km &lt; 40km
</td>
<td>
2
</td>
<td>
8
</td>
</tr>
<tr>
<td>
40km &lt; 50km
</td>
<td>
2
</td>
<td>
7
</td>
</tr>
<tr>
<td>
50km &lt; 60km
</td>
<td>
1
</td>
<td>
3
</td>
</tr>
<tr>
<td>
60km &lt; 70km
</td>
<td>
1
</td>
<td>
3
</td>
</tr>
<tr>
<td>
70km &lt;
</td>
<td>
0.2
</td>
<td>
0.2
</td>
</tr>
</tbody></table>
</div>
Source: REIV (from AHURI report)
According to the REIV, there are a range of impacts to consider from such a shift in tax policy.
“One interesting idea suggests that shifting the burden to the more expensive suburbs would encourage greater turnover in outer suburbs, where the majority of transactions occur,” says the institute.
However, it also notes “significant concerns” in replacing stamp duty with land tax, including “a projected drop in land values; the need for the government to run dual taxation systems; and the issues faced by the asset-rich but cash-poor in meeting the new annual bill”.
“Expect to hear more on this debate over the coming years,” says the REIV.
The recommendation to replace stamp duty with a land tax levied on all land came out of the 2007-2008 Henry Review.
It imagined a “municipal rates-type bill” with the review also noting there would be “significant transitional issues, as government could not charge land tax on a property where stamp duty had already been paid”.
The Henry Review recommended that:
“Existing land tax arrangements should be replaced, subject to a long transition to slow valuation effects and facilitate landholding adjustments, by a land tax applying to all land regardless of use. 
<ul>
<li>The rate scale would be based on the value per square metre of land.</li>
<li>A unit value threshold would effectively exempt most land in agricultural use.</li>
<li>Most residential land could be subject to tax of about 1%. A higher rate may apply to the highest value land (per square metre).</li>
<li>Land tax revenue would also replace stamp duties on land transfers.”</li>
</ul>
</body></html>

lschlesinger-FZcF9M3vE6

Replacing stamp duty with land tax needs debate: REIV

<html><body>
Housing is at its most affordable level since December 2009, but rental payments as a proportion of family are still hovering around four year-highs, according to the latest REIA/Deposit Power report.
The latest report shows that rental affordability has hardly improved since March 2008 – around the outbreak of the GFC – when rents as a proportion of family income increased to 24.7%.
Rents as proportion of family income remain well above the national long-term average since the December 1995 of 22.7% – despite median family income rising over the March quarter by 1.3% to $1,552.
The March quarter report shows the proportion of weekly family income required to meet weekly rent for a three-bedroom house stands at 24.9%, compared with 24.8% in the December quarter and 25.1% in March 2011.
<img src="/images/stories/2012/06/reiajune7.gif">
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
<img src="/images/stories/2012/06/reiajune72.gif">
The March quarter REIA/Deposit Power report shows that nationally, the proportion of family income required to meet loan repayments decreased by 0.9 percentage points compared with the previous quarter and now sits at 32%.
This pushed up the REIA Home Loan Affordability Indicator (HLAI) – the ratio of median family income to average loan repayments – to 31.3, its highest point since December 2009, but still well below the long-term average of 38.6.
“Housing affordability is still not at ideal levels, but at least we are now heading in the right direction,” says REIA president Pamela Bennett.
“If other factors continue to trend in the same direction, the interest rate cuts in May, and those announced yesterday should bring further good news for housing affordability next quarter,” she says.
First-home buyer participation in the housing market decreased in the March quarter.
The number of new finance commitments to first home buyers decreased 18.8% to 23,637 compared to 20.2% of buyers in March 2011 while the number of first home buyers, as a percentage of total owner occupied housing commitments, decreased to 18.0% during the quarter, compared to 20.0% in the December quarter 2011.
This proportion is dramatically down from the 30.6% level of the June 2009 quarter.
</body></html>

Housing affordability improving but rental costs still at four-year high: REIA

<html><body>
Stockland will build its new Brooks Reach community park in Horsley in the Illawarra based on the ideas and insights from 150 Dapto Public School kids aged five to 10.
The 6,800-square-metre park – the size of a football field – will incorporate many of the featured suggested by the kids, including a three-metre-high, seven-metre long “tower slide”; a large circular “bird’s nest swing”; and a spinning “supernova” carousel-like ride. 
It marks the first time in Australia that a developer has asked for children's input through consultation prior to the planning of an urban development. 
Last year the developer partnered with Professor Karen Malone of the University of Western Sydney last year to conduct research around what local children wanted to see in their own neighbourhood and the new one being developed at Brooks Reach.
The Wollongong Council has granted the park DA approval, and construction is expected to start mid-year, with completion due around October 2012. 
Malone said the top five things the children wanted from their playground were: 
1. Secret and shady places for cubby building
2. Thrill seeking
3. A play space where they could create their own space
4. A place that promotes learning /a place that keeps and protects nature
5. A place where we can create communities
 
 
Click to enlarge
<a href="/images/stories/2012/06/kiddieplayground.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/kiddieplaygroundthumb.jpg"></a>
“This feedback from the kids means that Stockland is now able to create a playground that gives kids all the things they want and dreamed of – a chance to be imaginative, explore, test their limits, learn and laugh with their friends,” says Malone. 
“The Brooks Reach park research been a fantastic project to lead, and is something new for Australia and in fact globally to have children involved in a design process initiated by a developer like this. 
“It’s great that Stockland actively looked to get the community involved in this way. It is not something that happens every day, and I’m sure the result will be terrific.” 
Stockland senior development manager Michael Braithwaite says the kids’ involvement has added an exciting element to the design process. 
“Encouraging a healthy and active life is something Stockland is really passionate about, so we wanted to come up with something that the kids and their families would enjoy and use regularly. 
“The best way to give the kids what they really wanted was to involve them from the outset. We’ve now got a design that caters to all age groups in a really meaningful way. It’s been a very exciting and eye-opening experience for everyone,” he says.
 Dapto Public School deputy principal Cheryl Seagrove says: “Most of the children who will be living at Brooks Reach will attend Dapto Primary School, so we were very interested in establishing a link between the school and the new neighbourhood. 
“We’ve worked with Stockland in the past on similar initiatives, such as the recent launch of the Walking Bus here in Dapto. It’s been wonderful to see a developer take on board the insights of local children and allow them to authentically participate in the planning process,” she says.
</body></html>

Brooks Reach estate developer gets playground lesson from school kids

<html><body>
QT Mutual Bank has passed on the full 25-basis-point rate cut to its borrowers – only the second lender to make an announcement about mortgage rates since the RBA cut the cash rate to 3.5% on Tuesday.
The Bank of Queensland reduced its standard variable rate by 20 basis points soon after the announcements.
The major banks and their subsidiaries have all tweeted – in response to queries from borrowers – that they are reviewing their interest rates.
They may wait until tomorrow to make their decisions to force ANZ to move first, as ANZ announces its rates on the second Friday of the month independent of the RBA announcement.
The small mutual lender, formerly the Queensland Teachers Mutual Bank, was started by a group of teachers in 1965.
</body></html>

QT Mutual Bank passes on full rate cut, but major banks stay silent

<html><body>
The discount on the standard variable rate that lenders have been willing to offer borrowers to entice them to fix their home loans has been shrinking since the RBA began cutting rates in November last year, according to figures compiled by RateCity.com.au. 
Based on analysis of 120 lenders in the RateCity.com.au database, the data shows that the gap between the benchmark three-year fixed rate and benchmark standard variable rate has shrunk from 74 basis points to 47 basis points – and is likely to fall further when the latest cash rate cut is passed on in part by lenders.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/fixedjune7.gif"><img src="/images/stories/2012/06/fixedjune7thumb.gif"></a>
Source: RateCity.com.au
It could fall even further if predictions by Westpac chief economist Bill Evans that fixed rates will start to rise prove accurate. 
As of June 1, the average standard variable rate was 6.59%, compared with 6.12% for the average three-year fixed rate, according to RateCity.com.au. 
Fixed rates have, on average, been cheaper than standard variable rates since the middle of last year, but the frequency of lenders reducing their fixed rates has slowed since the start of the year.
They remain popular relative to recent historic demand, but have fallen from their peaks of a few months back, May mortgage processing figures recently released by Mortgage Choice and AFG revealed.
 
<div align="center">
<table cellpadding="0" cellspacing="0" border="1" style="width: 428px;"><tbody>
<tr>
<td valign="bottom" colspan="4" nowrap width="428">
Average Home Loan Rates
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76"></td>
<td valign="bottom" nowrap width="139">
Standard Variable
</td>
<td valign="bottom" nowrap width="107">
3y Fixed
</td>
<td valign="top" width="107">
Difference
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Nov-11
</td>
<td valign="bottom" nowrap width="139">
7.31%
</td>
<td valign="bottom" nowrap width="107">
6.57%
</td>
<td valign="top" width="107">
0.74
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Dec-11
</td>
<td valign="bottom" nowrap width="139">
7.08%
</td>
<td valign="bottom" nowrap width="107">
6.41%
</td>
<td valign="top" width="107">
0.67
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Jan-12
</td>
<td valign="bottom" nowrap width="139">
6.84%
</td>
<td valign="bottom" nowrap width="107">
6.26%
</td>
<td valign="top" width="107">
0.58
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Feb-12
</td>
<td valign="bottom" nowrap width="139">
6.82%
</td>
<td valign="bottom" nowrap width="107">
6.26%
</td>
<td valign="top" width="107">
0.56
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Mar-12
</td>
<td valign="bottom" nowrap width="139">
6.86%
</td>
<td valign="bottom" nowrap width="107">
6.27%
</td>
<td valign="top" width="107">
0.59
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Apr-12
</td>
<td valign="bottom" nowrap width="139">
6.86%
</td>
<td valign="bottom" nowrap width="107">
6.35%
</td>
<td valign="top" width="107">
0.51
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-May-12
</td>
<td valign="bottom" nowrap width="139">
6.87%
</td>
<td valign="bottom" nowrap width="107">
6.34%
</td>
<td valign="top" width="107">
0.53
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Jun-12
</td>
<td valign="bottom" nowrap width="139">
6.59%
</td>
<td valign="bottom" nowrap width="107">
6.12%
</td>
<td valign="top" width="107">
0.47
</td>
</tr>
<tr>
<td valign="bottom" colspan="2" nowrap width="215">
Source: www.ratecity.com.au
</td>
<td valign="bottom" nowrap width="107"></td>
<td valign="top" width="107">
 
</td>
</tr>
</tbody></table>
</div>
 
Currently, the Greater Building Society is offering the cheapest three-year fixed rate of 5.79% with seven lenders – ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society – offering a rate of 5.99%. 
RateCity.com.au top variable home loans as of June 5, 2012 are: 
 
<ol start="1">
<li>UBank, UHomeLoan – 5.83%</li>
<li>Loans.com.au, Dream Catcher – 5.85%</li>
<li>Bank MECU, Refinance – 5.94%</li>
<li>State Custodians, Standard Variable Offset – 6.02%</li>
<li>IMB, Budget Home Loan – 6.04%</li>
</ol>
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Fixed-rate mortgage discounts diminishing as variable rates play catch-up: RateCity

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Today I drew inspiration from a lovely young man I had coffee with. His name is Matt, and he’s one of our clients.  Matt’s a switched-on guy, maybe about 30 or so, has a psych degree, owns three investment properties, all high yielding (I’m talking 9 to 15%!), runs his own importing business, has been to a property seminar or two, and he and his wife are expecting their second child in a couple of weeks. Oh, and he’s also very polite.
We’ve just finished a development project for Matt and now we had the actual end figures confirmed, we caught up to reflect on how his first project went with Property Bloom and what he could be doing to plan for his next.
That’s what I like about Matt. He’s a planner, a big-picture guy, yet he still keeps track of all the fine details. Here he is, two weeks out from having his second child and we’re sitting discussing property development options (we did also touch on the benefits of epidurals!).
We chatted about current economics, the estate of affairs here in Australia with our political uncertainty, the constant barrage of whether Julia Gillard is a worthy prime minister, the lousy situation in Europe – is Spain going down and when?  How will Greece pull through? The Queen’s Diamond Jubilee and how cool Kylie Minogue’s outfit was (OK, that was my comment; I don’t think Matt had an opinion on that one).
We covered off the “two-speed economy” of Australia, the state of China and how much coal do they actually need (a lot, thought Matt, as he visits China regularly for business and has seen for himself the massive changes taking place).
We both agreed that the current state of affairs was actually the perfect property investment environment for those who could block out the noise and focus on what was happening right under our noses.
We’d concluded that we didn’t actually care about what’s happening in the global arena (apart from seeing our superannuation cut in half over the past year).  While we weren’t being irresponsible, we just both decided that it didn’t really impact on our big picture.
This comment from Matt said it all:
”Jo, I’m not going to wait around for the world to determine my future.”
There it was. His words really resonated with me.  His statement so bold but yet so matter of fact, making perfect sense.
There’ll always be something to wait for. Let’s wait til after the new baby comes. Let’s wait for the next election. Let’s wait to see what happens in Europe. Let’s wait to see what the share market does. Let’s wait to see if the RBA cuts rates… Let’s wait, let’s wait, let’s wait!
Before you know it, you’ll be 65 asking “Why did we wait?... If only we invested in property back in 2012 when rates were low, yields were high and it was a buyer’s market.  What were we waiting for?”
For my client Matt, I’ve got a great next development project coming his way because he’s not going to hang around waiting.  So by the time his new baby turns one, he’ll have another great project under his belt.
So what are you waiting for?
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

Now is the perfect time to invest in property if you can block out the noise

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Those with DIY super should now be more confident for their self-managed super funds to borrow to acquire their business premises and other investment properties – provided the assets measure up as quality investments.
This follows the recent release of a self-managed super fund final ruling providing a detailed explanation of the ATO’s interpretation of the SMSF borrowing rules in relation to the purchase, maintenance and improvement of geared assets.
Undoubtedly, many SME owners have been reluctant to gear an SMSF to acquire their business premises because of uncertainty about how the ATO, as regulator of self-managed super, may interpret the borrowing provisions in superannuation law.
The uncertainty – which largely arose after the tightening of the SMSF borrowing laws several years ago – mostly related to repairs and improvements to geared property, as well as the gearing of properties involving more than one title.
Countless SME owners have long favoured holding their business premises in their family self-managed funds. But it is understood that doubt about the ATO’s interpretation of the SMSF borrowing laws has deterred some from proceeding with the strategy.
Business real estate – such as the premises of a family SME – is among the few types of assets that SMSFs are permitted to acquire from their members and other related parties. Further, business real estate is one of the few types of assets that funds can lease to related parties – including fund members and their businesses – without a limit on its value.
SMSF trustees in general are likely to feel more comfortable about borrowing to invest in residential and commercial property now that the ATO has issued this final ruling.
While the final ruling largely confirms the main points made in a draft ruling issued in September last year, <a rel="nofollow" href="https://law.ato.gov.au/atolaw/view.htm?docid=SFR/SMSFR20121/NAT/ATO/00001&amp;PiT=99991231235958">there are some significant clarifications and additional examples</a>.
Here are five strategies for SMSFs that are considering gearing to buy property:
<h3>1. Don’t waste time on an unnecessary clash with ATO</h3>
The final ruling provides wide perimeters for SMSFs wanting to buy, maintain and improve a geared property without breaching the borrowing laws or upsetting the regulator.
In short, this gives SMSFs a solid base to work within without having a costly and time-wasting dispute with the regulator.
Meg Heffron, co-principal of SMSF administration group Heffron, won’t go as far as saying that the final ruling provides a definite rule book for SMSFs with geared property – “but we are probably a lot closer to it than we have ever been”.
As Heffron says, circumstances will inevitably arise with geared SMSF properties that are not covered in the final ruling.
<h3>2. Borrow to invest with more confidence</h3>
This is because the final ruling confirms that the regulator will provide SMSFs with a fair degree of freedom within the borrowing laws when carrying out repairs and improvements to geared property.
Heffron is convinced that the ruling will give SMSFs more confidence about borrowing to invest in property.
This marks quite a turnaround for the prospects of holding geared property in SMSFs.
Almost two years ago, amendments to superannuation law toughened the laws about borrowing to invest through a SMSF. After July 7, 2010, an SMSF could:
<ul>
<li>Only acquire a single asset – not multiple assets – under a borrowing arrangement.</li>
<li>Could only drawdown on a loan (entered into after July 7, 2010) to make repairs, not improvements to a geared property.</li>
<li>Could not make a capital improvement to a geared asset that was extensive enough to have created a new or replacement asset.</li>
</ul>
Heffron says her “gut reaction” to the ATO’s initial views on these amendments were that it would be almost impossible for an SMSF to borrow to buy property. And she had regarded the ATO’s interpretation at the time as “a ban by stealth” on future gearing of property in an SMSF.
But the release of the final ruling together with its earlier draft has confirmed how ATO has taken a much more pragmatic and much less restrictive approach.
It is taking a more realistic attitude about what is a geared single asset, the difference between repairs and improvements, and about the extent of improvements will lead to a new asset being created.
 
<hr class="system-pagebreak">
 
<h3>3. Feel more assured about borrowing to invest in properties covering more than one title</h3>
This can be a key factor for SMSF property investors because many properties are on multiple titles.
Take the classic example of an apartment that has a car space on a separate title or a factory that happens to be built over several titles.
Following the 2010 amendments, ATO’s initial view was that a property with, say, two titles equated to two separate assets and could not be acquired under the one borrowing arrangement.
This meant that many properties were simply considered unsuitable for gearing through an SMSF.
But under the draft and final rulings, Heffron says the ATO takes a broad interpretation of what is a single asset. “The ATO takes the view that where the two cannot realistically be separated, they will be treated as a single asset for this purpose,” she explains.
In the ruling, the ATO gives the example of a factory that is built over three titles would be treated as single asset that could be acquired under a single borrowing arrangement.
And the ruling gives the example of an SMSF that wants to gear to buy an apartment and its car park, that are on separate titles on the same strata plan, yet state law specifies that the two cannot be registered separately.
Under the final ruling, the ATO regards the apartment and its car park as a single asset that can be acquired under the same borrowing arrangement.
<h3>4. Carry out quite extensive repairs to geared property</h3>
The final ruling clearly explains the ATO’s views in details about how far repairs can extend before reaching the point of becoming improvements. This is a vital distinction for gearing a property through an SMSF.
Martin Murden, a director of SMSF consulting for services provider to accountants Partners Group in Melbourne, suspects that uncertainty about the ATO’s initial interpretation of the difference between repairs and improvements had caused much concern among SMSFs.
“I believe people can now determine before proceeding [with repairs or improvements] whether their actions are going to result in a problem with super legislation and regulation,” he says.
Under the 2010 amendments, as discussed earlier, SMSFs could only drawdown on a loan to buy and maintain an asset – not to improve it.
This made the different between repairs and improvements even more crucial. And the question immediately arose: When does building work on a geared property reach the point of going beyond a repair to become an improvement?
“These issues will always be regarded as a matter of degree,” comments Heffron, “but the ATO clearly envisages quite a wide range of activities which might incidentally add to the value of the property falling into the ‘repairs’ category.”
“Replacing or rebuilding with ‘modern equivalent’ materials will generally be considered a repair or maintenance, but replacing or rebuilding with superior materials is potentially an improvement,” she explains.
Crucially, a fund can use its own money to improve a property – within limits discussed in Strategy Five.
<h3>5. Carry out improvements to a geared property with more confidence</h3>
The challenge for SMSFs is to know how much they can improve a property, such as the fund members’ business premises, without reaching the stage of creating a new asset.
If improvements to a geared asset lead to the creation of a new or replacement asset, the borrowing arrangement would have to be dissolved.
“The ATO originally took the view that improving a property will necessarily trigger the replacement of one asset [the unimproved property] with another asset [the improved property],” says Heffron.
“Like the draft ruling, the final ruling takes a far more liberal position and indicates that, in the ATO’s view, not all improvements will necessarily result in a replacement asset.
“Essentially, the ATO now draws a distinction between improvements that ‘fundamentally change the character of that asset’ and those that do not.”
The ruling gives examples of improvements that would not be regarded as replacing a geared asset. For instance, the addition of several bedrooms, granny flat, extra bathroom, a garage or a swimming pool would be regarded as improvements that do not lead to the creation of a new or replacement asset.
But the ATO ruling states a new asset would be created if, say, a residential house was converted into a restaurant with such changes as the inclusion of a “fully functioning” commercial kitchen.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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mlaurence-vhAHaLZT8y

Five strategies for investing in geared property through an SMSF

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Well, here is some more good economic news.  Henny Penny doesn’t know which way to run!
Australia’s economy grew much faster than forecast, up 1.3% during the March quarter.  On an annual basis, our economy is growing by 4.3%, again much faster than 3.3% market forecasts.
Remember, this is historical data but it does cover a period of weakening commodity prices, falls in mining profits and weak demand in some sectors of the domestic economy.  It also covers the natural disasters – and yes, they did have an impact – but our little Aussie engine was running much better than it sounded.  This helps explain the recent fall in our jobless rate to 4.9%.
It is also more than mining that has helped our economy grow.  What the eggheads call “non-farm GDP” grew by 1.2%, which points to more a buoyant domestic economy than most realise.  Household savings also remain high at 9.3%.
Also, farmers out there have had lots of rain – which is often problematic in the short term, but is great news and provides serious economic support into the future.  Too few make comment about the farmers’ impact on our economy these days.  Wet is good, dry bad – it isn’t that hard to remember.
So, was Tuesday’s interest rate decision a wise one?  For mine, as noted, the RBA should have cut by 0.5 percentage points.  Remember, the RBA cut the official rate because of concerns about the international situation and the inflation outlook (at present) is benign.
Further interest rates cuts (given the 0.25-percentage-point official drop) might occur, but they won’t now be due to our domestic economy but because of further crises in the eurozone.
A 50-basis-point drop would have boosted local confidence and allowed the majors to pass on a meaningful drop to mortgage holders, and especially small business owners.  But for mine, structural reform is more important – given how low interest rates already are – than monetary easing, and sadly there is no sign of any relevant action.
As I have noted, much more needs to be done to kick-start new housing than just dropping interest rates.  Structural reform, not cyclical tinkering, is urgently needed.   Housing isn’t the only engine that desperately needs a major overhaul.
Australia’s structural problems require welfare, tax, regulatory and IR reform.  Further interest rate cuts might happen, but there is a real risk of putting the monetary policy cart before the structural reform horse.
Roll on the next federal election – and we must hope for a government seriously interested in economic reform.
And despite the current absolute economic incompetence, the ABS’s latest quarterly health check on corporate Australia found that although profits were down, sales, inventory and wages all grew at a reasonable rate during the first three months of this year.  In fact, we are creaming most of the world.
Australia’s annual growth pace of 4.3% compares with 1.9% in the USA; a zero to negative result in the eurozone; a 0.1% contraction in the UK (and I thought it was just the crappy music at the Queen’s Diamond Jubilee that was putting the pucker on Her Majesty’s face) and 2.6% growth (yes growth) in Japan.  China is currently growing at 8.1% and India by 5.3%.
In short, Australia is a country that barely understands, let alone appreciates, its own luck.
Being so close to good fortune can often make one blind to it.
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 target="_blank" href="https://www.matusik.com.au/"> Think Matusik</a>. Think Matusik brings together expert opinion and select property opportunities.
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michaelmatusik-49YzLvdmNv

Henny Penny doesn’t know which way to run in the face of good economic news

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North Fitzroy development Graphite is more than half-sold three weeks after it launched in mid-May as first-home buyers secure apartments for under $600,000 before the Victorian government’s first-home buyer bonus ends on June 30.
<img src="/images/stories/2012/06/graphite1.jpg">
<a target="_blank" href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863">The bonus provides $13,000</a> – in addition to the federal government’s $7,000 – for first-home buyers who purchase property under the $600,000 threshold before June 30.
BPM Construction Group’s Graphite will comprise 46 one- and two-bedroom apartments, with prices starting from $359,500 for one-bedrooms and $530,000 for two-bedders. Some 37 are priced below the $600,000 threshold. 
<img src="/images/stories/2012/06/graphite2.jpg">
The colour palette will match its name, with greys and neutral tones used in the external and internal designs.
Interior designer Mim Design director Mim Fanning says the colours and materaials of timber, concrete and metal are designed to complement the Fitzroy North surrounds.
<img src="/images/stories/2012/06/graphite3.jpg">
“Graphite apartments have been planned to create the feeling of being large units – but at the same time they are very compact and fitting for their inner city address,” Fanning says.
“The interior finishes meld the sophistication and lighting of a gallery, the luxury and authenticity of restaurant kitchen and the warm, homely feel of a local café.”
<img src="/images/stories/2012/06/graphite4.jpg">
The median unit price in North Fitzroy is $457,500, according to RP Data, and the median unit price has fallen 23.6% in the past year.
In keeping with the green recent trend towards sustainable transport, all of the apartments in Graphite will come with bike parking spaces, though only some will have car spaces.
Construction is due to begin in early 2013 and be completed in mid-2014.
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cknowlton-QnEa6ntUYP

North Fitzroy development Graphite appeals to first-home buyers as government bonus deadline looms

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<a target="_blank" href="/news">Charleville</a>, <a target="_blank" href="/news">Rockhampton</a>, <a target="_blank" href="/news">Mackay </a>and Mount Isa were the only regional areas in Queensland where median house prices rose over the year ending March 2012, according to Residex data.
Mackay has consistently been the best-performing area in Queensland, with 4.96% growth in the last quarter to $408,500, 5.45% growth in the year to March 2012, and an average yearly growth rate of 12.39% over the past decade.
Median house prices dropped in the seven other regional areas surveyed, with Noosa and Cairns recording the biggest decreases of 8.08% to $416,000 and 5.65% to $314,000 respectively.
Noosa has had the lowest average yearly growth over the past 10 years at 6.84%, closely followed by Cairns at 6.9%.
In the recent past Mackay has been performing the strongest with median prices up 3.82% in the last month and 4.96% in the last quarter.
<a target="_blank" href="/news">Cairns</a> has recorded the biggest decreases over the last month, dropping 2.43% to $314,000.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/residexmay18.gif" rel="shadowbox"><img src="/images/stories/residexmay18thumb.gif"></a>
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