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.

Joel Robinson

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

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<html><body>
Australian house prices deteriorated considerably over the last six months of 2011, according to Residex, with Melbourne showing the greatest deterioration over this period.
In its latest report, Residex data reveals that across Australia house prices declined by 3.18% in 2011, compared with an annual decline of just 1.19% at the end of June 2011. 
Six month ago, Melbourne house prices were actually up 1.58% on annualised basis, but the latest report shows they are now down 3.28% over the past 12 months to a median value of $574,000. 
The rate of decline in Sydney house prices has also picked up, although the city recorded the smallest drop of the major capital city markets, with values falling 2.54% for the year to a median of $656,000. Six months ago Sydney house prices were down just 0.47% for the year. 
December figures suggest the decline in Brisbane house prices appears to be slowing, with the city recording an annual fall of 6.7% over 2011 to $427,500. Six months ago Brisbane prices were down 5.66% for the year. 
Perth house prices declined by 3.76% for the year, having been down 2.21% for the year six months ago, while Adelaide price falls accelerated, falling 3.17% over 2011. Adelaide prices were down 1.38% at the end of June 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Annual change in house prices as of December 2011
</td>
<td valign="top" width="205">
Annual change in house prices as of June 2011
</td>
</tr>
<tr>
<td valign="top" width="205">
Melbourne
</td>
<td valign="top" width="205">
-3.28%
 
</td>
<td valign="top" width="205">
1.58%
</td>
</tr>
<tr>
<td valign="top" width="205">
Sydney
</td>
<td valign="top" width="205">
-2.54%
 
</td>
<td valign="top" width="205">
-0.47%
</td>
</tr>
<tr>
<td valign="top" width="205">
Brisbane
</td>
<td valign="top" width="205">
-6.70%
 
</td>
<td valign="top" width="205">
-5.66%
</td>
</tr>
<tr>
<td valign="top" width="205">
Perth
</td>
<td valign="top" width="205">
-3.76%
 
</td>
<td valign="top" width="205">
- 2.21%
</td>
</tr>
<tr>
<td valign="top" width="205">
Adelaide
</td>
<td valign="top" width="205">
-3.17%
 
</td>
<td valign="top" width="205">
-1.38%
</td>
</tr>
<tr>
<td valign="top" width="205">
Australia
</td>
<td valign="top" width="205">
-3.18%
</td>
<td valign="top" width="205">
-1.19%
</td>
</tr>
</tbody></table>
 Source: Residex
While Melbourne house prices continued to fall in 2011, country Victoria prices rebounded, rising by 3.38% in the year to median of $332,000. The only other markets to record price increases over the year were Hobart (up 0.32% to $389,000) and country South Australia, where prices increased by 0.49% during 2011 to $264,000. 
According to Residex, sales activity across Australia dropped by 6.32% in 2011, however buyers showed interest in Melbourne, Canberra and Darwin, where sales increased by 14.95%, 7.38% and 7.30% respectively. 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top">
Area
</td>
<td valign="top">
Median house price
</td>
<td valign="top">
10 years % p.a.
</td>
<td valign="top">
Year ending Dec 2011
</td>
<td valign="top">
Last quarter
</td>
<td valign="top">
Last month
</td>
</tr>
<tr>
<td valign="top">
ACT
</td>
<td valign="top">
$526,500
</td>
<td valign="top">
8.47%
</td>
<td valign="top">
-2.03%
</td>
<td valign="top">
-1.84%
</td>
<td valign="top">
0.51%
</td>
</tr>
<tr>
<td valign="top">
Adelaide
</td>
<td valign="top">
$395,500
</td>
<td valign="top">
8.34%
</td>
<td valign="top">
-3.17%
</td>
<td valign="top">
-0.43%
</td>
<td valign="top">
0.79%
</td>
</tr>
<tr>
<td valign="top">
SA Country
</td>
<td valign="top">
$264,000
</td>
<td valign="top">
8.60%
</td>
<td valign="top">
0.49%
</td>
<td valign="top">
3.09%
</td>
<td valign="top">
2.42%
</td>
</tr>
<tr>
<td valign="top">
Brisbane
</td>
<td valign="top">
$427,500
</td>
<td valign="top">
8.65%
</td>
<td valign="top">
-6.70%
</td>
<td valign="top">
-2.54%
</td>
<td valign="top">
-0.49%
</td>
</tr>
<tr>
<td valign="top">
QLD Country
</td>
<td valign="top">
$367,000
</td>
<td valign="top">
8.75%
</td>
<td valign="top">
-3.41%
</td>
<td valign="top">
0.09%
</td>
<td valign="top">
-0.67%
</td>
</tr>
<tr>
<td valign="top">
Darwin
</td>
<td valign="top">
$484,500
</td>
<td valign="top">
10.15%
</td>
<td valign="top">
-6.11%
</td>
<td valign="top">
-1.25%
</td>
<td valign="top">
-1.70%
</td>
</tr>
<tr>
<td valign="top">
Northern Territory
</td>
<td valign="top">
$462,000
</td>
<td valign="top">
10.21%
</td>
<td valign="top">
-4.72%
</td>
<td valign="top">
-0.98%
</td>
<td valign="top">
-1.51%
</td>
</tr>
<tr>
<td valign="top">
Hobart
</td>
<td valign="top">
$389,000
</td>
<td valign="top">
10.94%
</td>
<td valign="top">
0.32%
</td>
<td valign="top">
1.14%
</td>
<td valign="top">
2.81%
</td>
</tr>
<tr>
<td valign="top">
TAS Country
</td>
<td valign="top">
$269,500
</td>
<td valign="top">
10.43%
</td>
<td valign="top">
-1.89%
</td>
<td valign="top">
-0.30%
</td>
<td valign="top">
0.03%
</td>
</tr>
<tr>
<td valign="top">
Melbourne
</td>
<td valign="top">
$574,000
</td>
<td valign="top">
8.07%
</td>
<td valign="top">
-3.28%
</td>
<td valign="top">
-1.01%
</td>
<td valign="top">
-0.10%
</td>
</tr>
<tr>
<td valign="top">
VIC Country
</td>
<td valign="top">
$332,000
</td>
<td valign="top">
8.19%
</td>
<td valign="top">
3.38%
</td>
<td valign="top">
1.76%
</td>
<td valign="top">
-0.89%
</td>
</tr>
<tr>
<td valign="top">
Perth
</td>
<td valign="top">
$469,000
</td>
<td valign="top">
9.52%
</td>
<td valign="top">
-3.76%
</td>
<td valign="top">
0.41%
</td>
<td valign="top">
-1.11%
</td>
</tr>
<tr>
<td valign="top">
WA Country
</td>
<td valign="top">
$350,000
</td>
<td valign="top">
9.66%
</td>
<td valign="top">
-2.72%
</td>
<td valign="top">
1.75%
</td>
<td valign="top">
-2.11%
</td>
</tr>
<tr>
<td valign="top">
Sydney
</td>
<td valign="top">
$656,000
</td>
<td valign="top">
4.97%
</td>
<td valign="top">
-2.54%
</td>
<td valign="top">
-1.78%
</td>
<td valign="top">
-0.24%
</td>
</tr>
<tr>
<td valign="top">
NSW Country
</td>
<td valign="top">
$334,500
</td>
<td valign="top">
6.31%
</td>
<td valign="top">
-2.78%
</td>
<td valign="top">
-1.09%
</td>
<td valign="top">
0.40%
</td>
</tr>
<tr>
<td valign="top">
Australia
</td>
<td valign="top">
$429,500
</td>
<td valign="top">
8.05%
</td>
<td valign="top">
-3.18%
</td>
<td valign="top">
-1.00%
</td>
<td valign="top">
-0.72%
</td>
</tr>
</tbody></table>
 
 
</body></html>

lschlesinger-FZcF9M3vE6

Melbourne leads nationwide drop in house prices in second half of 2011: Residex

<html><body>
If you trawl through CBA's covered bond promo materials there is some fascinating new data that confirms points about the housing market I've made here in the past. It also serves to highlight the quite misleading dissembling of the housing '”desctructionistas” (i.e., the Steve Keens of the world). 
The first extract of interest compares the default rates of CBA's first-time buyers with its overall portfolio. You can see from the chart below that until 2010 first timers actually had lower default rates than your average borrower. Recall the hyperbole that folks like Keen were pushing during the GFC, when he claimed that the major banks lending to first timers, combined with the government's-first time buyers' boost, would result in a mass of delinquencies? Sorry, that was just another mistruth.
<img src="/images/stories/jan181.gif">
<img src="/images/stories/jan182.gif">
In some respects, the parsimony of first timers makes intuitive sense: they are typically investing a larger share of their net worth and income in buying a home and servicing the repayments than older and wealthier buyers. While this brings with it some extra risk (e.g., via lower equity), it also tells us that many first timers on lower incomes are committing higher shares of their labour earnings to keeping a roof over their heads than older buyers. For some borrowers, this creates a better alignment of interests. For others, it may heighten the risk they default. What we can see from CBA's data is that first-time buyers don't seem to have a fundamentally higher probability of default than other borrowers, although there has been convergence since 2010. 
There are other explanations for this, of course: as I've argued before, our banks are very cautious in setting their lending criteria. It is possible that CBA is even more rigorous in its credit assessment when looking at first timers versus the rest of the borrowing population, which in turn helps to reduce credit risk. 
The second CBA chart looks at the losses realised on CBA's home loan portfolio in comparison with all non-home loan assets between 1983 and 2011. It portrays a familiar story: historically, the real  risk for Australian banks lies not in lending to people buying homes (as many pundits claim), but rather in <a target="_blank" href="https://www.propertyobserver.com.au/commercial/commercial-not-residential-property-in-a-price-bubble-christopher-joye/2011092851714">business borrowings and commercial property </a>(especially the latter). 
This is why, quite rationally, APRA makes it more expensive for banks to lend to businesses – via higher “risk-weightings” – than to people acquiring established homes. In short, the historical risk of doing so has been demonstrably higher, so APRA makes you hold more capital against these loans. 
Interestingly, we now have two clear case studies – the 1991 recession and the 2007-09 GFC – where residential lending has proven its vastly superior resilience relative to business credits. 
This is also why some major bankers' calls for APRA to change the risk-weightings to favour business lending would appear to be either ignorant or subversive.
<img src="/images/stories/jan183.gif">
As a final aside, it is gratifying to see that my good friends over at the CBA are using our “house price-to-income ratio” analysis in their covered bond promo materials, although I note that this is incorrectly labelled: this data comes from Rismark, not RP Data (see below). 
A related observation would be that using the ABS's free-standing, established house price index, which ignores the circa 25% of all homes that are apartments, semi-detached, and terraces (especially in metro areas) to mark-to-market a covered bond portfolio, is hazardous, to say the least. It opens CBA up to the criticism that it is not properly assessing the collateral values of the circa 80% of all assets that are being used to secure the covered bond. For example, what happens if the higher priced detached house market is outperforming the apartment, semi and terrace sectors, and thereby giving artificially positive marks to the CBA portfolio? There is no need for these valuation errors since there are freely available indices that cover all property types – and which more accurately measure price changes (according to the RBA) – that are currently being used by CBA's competitors, and indeed promoted by CBA's economists. A very odd oversight.
<img src="/images/stories/jan184.gif">
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Housing crash talk due to envisaged first-home delinquencies just hyperbole: Christopher Joye

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After a year of keeping interest rates on hold, the Reserve Bank’s decision to cut the official cash rate not once, but twice at its final two meetings for 2011 is certainly a nice Christmas present for many property investors and home owners with a mortgage.  But a question that I seem to often get asked, as do many brokers in the Century 21 Home Loans network, surrounds how borrowers and potential buyers can ensure they are able to maximise the rate cut, beyond simply the immediate reduction passed on by their lender. 
In addressing this concern I would say that the relationship you have with your mortgage broker is probably more important than ever before, and now may present a good time to sit down with a professional to revisit your options.  A proficient mortgage professional will have a thorough understanding of a wide range of products currently available and should be able to advise you on the best course of action for your specific situation. 
Rate cuts – has your lender passed them on? 
With the recent spate of rate cuts and potentially more in the pipeline, first and foremost, it’s worth checking to ensure your lender is passing on the cuts or at to what extent.  Don’t be the borrower who is missing out on cuts. 
Reassess your mortgage 
With constantly varying lending criteria, fees and the like, mortgage holders may find that a combination of lowered interest rates and changing conditions have made alternative products more appropriate for their circumstances.  Your mortgage broker should be able to take you through a wide range of product options and clearly explain how the refinancing process works – ensuring you have the right information to make an informed mortgage decision. 
Increase the frequency of repayments
It is certainly tempting to capture monetary savings immediately by reducing your monthly repayments in line with the rate cuts, and for many people struggling with affordability concerns, this will be a necessity.  However, if possible, I would advise people to consider the option of maintaining current repayment levels and potentially even increasing the frequency of repayments (e.g. fortnightly rather than monthly).  This will most probably allow you to get your mortgage principal paid off more quickly, which will also likely reduce the interest you must pay over the long term. 
For many borrowers, alongside the prospect of making immediate savings, rate cuts can present an ideal opportunity to reassess your mortgage situation and identify how further savings can be made in the future.  Working with a professional mortgage broker who has a thorough understanding of your personal situation should position you to be able to make an informed decision and take full advantage of recent (and future potential) rate reductions.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a>
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ctarbey-W47GL9jwxa

Rate cuts an opportunity to reassess your mortgage

<html><body>
We all know that the Gold Coast won the right to host the 2018 Commonwealth Games. Congratulations to Mark Stockwell and his team.
This two-week event will be held in April 2018. Some amazing claims are already being made as to the impact of such an event on the Gold Coast market and economy. While some statements seem to have gone through some rigour, others are just utter spruiking – “the Gold Coast will be exposed to billions of people around the world as preparations unfold in the lead-up to April 2018” and “property markets will reap rewards too” are two recent examples.
So far, we understand that these games will cost $1.97 billion, with local taxpayers expected to foot close to three-fifths of the bill. Up to $500 million of this money will be spent on sport and infrastructure projects. Queensland will also go $1 billion further into debt to host the event. But apparently 30,000 new jobs will be created and $2 billion worth of economic benefits will be derived. It is estimated that 120,000 extra tourists will visit the coast because of the games.
Out of the 53 sovereign states that make up the Commonwealth of Nations, just two competed for the 2018 games, with the other being Sri Lanka. Hambantota budgeted to spend just $650 million if it won the right to hold these games.
Melbourne held the 2006 Commonwealth Games – 245 events were held across 17 sports; 71 countries, territories and bodies competed and 635 medals were awarded, of which Australia won 222 or a third; and when combined with England and Canada, these three nations took home two-thirds of the spoils.
As the tone above indicates, I remain very sceptical about the real economic impact of such sporting events.  But before we finalise our post on this topic – to be released in coming weeks – we are seeking your thoughts.
Please <a href="https://www.surveymonkey.com/s/MatusikCommonwealthGames" target="_blank">click here</a> to participate.  It will only take a minute or two of your time
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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michaelmatusik-49YzLvdmNv

Jury is still out on claims of Commonwealth Games boost for Gold Coast

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Today I want to give you a snappy summary of my (interlinked) thoughts on both the outlook for Aussie interest rates and our much-maligned, misunderstood yet economically meaningful housing market.
Yesterday’s housing finance data from the ABS confirmed what I’ve been arguing here for months. After the flood-induced downdraft in prices at the start of the year, which was given an equally serious kick-along by the RBA’s de facto double hike in November 2010 (lifting mortgage rates to historically high levels), the number of loans approved to buyers of existing homes has been rising steadily since March.
As I’ve explained before, one wants to focus on the number of seasonally adjusted loans approved for purchasing established dwellings (the red line in the chart below) in preference to the “value” of housing finance series (as this is distorted by house prices) or anything relating to newly built dwellings, which make up a tiny fraction of the established dwellings series.
We are, to be sure, interested in things like finance for construction purposes, which gives us insights into the rate at which new homes are being built. But even the most fervent housing destructionists concede that Australian building approvals have been running at or below the demand-side, or household formation, implied needs for years now. Coupled with low rental vacancy rates, only a dissembling imbecile would have us believe that Australia’s housing market is characterised by significant excess supply.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/jan171.gif"><img src="/images/stories/jan171thumb.gif"></a>
What we can see from the chart above is that since May 2011 the three-month moving average growth rate for the number of loans approved for purchases of existing dwellings (refer to the blue bars) has been around 1.5%. That means that new home loan approvals have actually been rising at a double-digit pace since March 2011, which is good news for the banks that rely on credit growth to generate profits, and anyone concerned about the quality of the collateral (i.e., home loans) sitting on their balance-sheets (e.g., covered bond investors or hedge funds shorting their stock).
Critically, this demand-side momentum started to materialise well before the RBA bequeathed its interest rate munificence on the market with not one, but two fully passed-through mortgage rate cuts in November and December. They don’t call him Santa Claus Stevens for nothing! And all home owners will be crossing their fingers that Stevens passes out the interest rate presents over and over again, with the financial markets currently pricing in another four to five cuts. If we get that much RBA relief, and the banks pass most of the reductions on, Australia will almost certainly see the return of rapid house price appreciation, much like we did in 2009.
We now know that housing participants responded to the sharp turnaround in home loan affordability almost immediately: in November, RP Data-Rismark reported the first increase in seasonally adjusted dwelling values since December 2010. Observe also in the next chart that one very useful bellwether of the housing market cycle – the share of first-time buyers as a proportion of all loans approved – has surged back to 20%, which is its highest level since February 2010.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/jan172.gif"><img src="/images/stories/jan172thumb.gif"></a>
So all analytical eyes will be focusing on the December house price index results, which are released at the end of this month. Another seasonally adjusted gain in dwelling values will confirm that genuine stabilisation is afoot and excoriate the notion that November was merely statistical noise. I personally expect a surprise on the upside, but only time will tell.
Now to Australia’s central bank. While I will write more on this subject in the days preceding the RBA’s February meeting, it is perhaps most instructive to consider the options available to the bank.
<a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030" target="_blank">Anyone who tells you that an interest rate cut in February is a “done deal”</a> is a fool. Frankly, nobody knows with certainty, including the RBA, what the outcome of that meeting will be. It hinges most heavily on three pieces of information that we will get over coming weeks:
First, the fourth-quarter inflation data, and any revisions to the second- and third-quarter numbers. This will give the RBA a good feel for the nature of the inflationary pressures bubbling across the economy and whether it was justified cutting rates in November on the basis of one low third-quarter print. The consensus view is that inflation will be very benign in the fourth quarter, which will help the push for a rate cut in February (one economist thinks it will be negative!).
On the other hand, a high print, perhaps combined with some upward revisions to past data, would call into question the RBA’s recent decisions, and significantly reduce the chance the central bank doles out more ‘insurance’ to financial markets. A high quarterly number would be anything clearly in the top half of the RBA’s target 2-3% band (annualised), or, god forbid, beyond.
The second key tranche of data is the December month unemployment results. While the overall tone of Australia’s real economic data has been positive, and, as the RBA has repeatedly observed, insinuates that the economy was tracking at or above trend during 2011 (abstracting away from the floods), there have still been some conflicting signals.
First, there was the very modest step-back in house prices, which look like they will finish the year off around 3% lower. Then there has been some soft retail data based on the narrow monthly surveys, which have been refuted by the ABS’s much more comprehensive consumer spending data contained in the quarterly National Accounts. This tells us that overall consumption spending has been tracking at or above trend over the six months to September.
And finally we have the labour market. While the number of people on the dole has been declining consistently and the number of job seekers receiving unemployment benefits has also been shrinking, the monthly ABS labour force survey has offered a more sketchy story: the closely followed unemployment rate has been bobbing around 5% for the best part of a year, with a marked drop-off in absolute employment growth.
Any spike in the December unemployment data will lend credence to the analysts who have swung around to forecasting a steady increase in Australia’s jobless rate from 5.3% today to over 5.5% during 2012 and, combined with anodyne inflation data, would give the doves on the RBA’s board enough ammunition to lock in another interest rate reduction.
Our final consideration is, as always, the pulse of the global economy, and eurozone conditions specifically. Although Europe itself only contributes a relatively small fraction of global economic growth, which is why the US, India and China have managed to weather its headwinds relatively well, the RBA seems increasingly prone to bowing to pressure from the banks and financial markets to dole out scarce monetary policy insurance to protect these constituents against “tail risks”.
As you can tell, I don’t think this is an especially astute strategy, and would have exercised the “option to wait”, rather than boxing at manufactured shadows. Nevertheless, one curve ball is bank funding costs.
If, hypothetically, the eurozone crisis gets much worse, and the wholesale price of money that banks have to pay – which accounts for about 30% of their total funding – continues to rise (no one seriously disputes that it’s been increasing), the RBA might be convinced that to preserve current lending rates it needs to further lower its target cash rate.
This, crucially, assumes that the banks and their shareholders cannot absorb the higher funding costs themselves via lower net interest margins, lower profits, and lower returns on equity, which, at this stage, remain very high for government-guaranteed utilities.
Fortunately for borrowers, but not savers, none of the above contingencies countenances rate hikes. There is, by definition, some small probability that the next move in interest rates is not actually down.
If you believed the average or “consensus” economist view 12 months ago, you were budgeting on another three to four rate hikes. If you believe the average or “consensus” economist today, you are banking on another one to two cuts. The truth is nobody knows, and the RBA will be guided by what actually happens in the real world.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
 
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Economists' rate cut consensus outcomes await real-world momentum: Christopher Joye

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Some 70% of prospective Brisbane home buyers will not consider purchasing a house that was inundated during last year's floods, a report by the Australian Property Institute has found.
The report concluded that homes that were completely inundated last January have dropped more than 20% in value and took a month longer to sell than unaffected homes.
There was a decline in value of between 10% and 20% for properties where flood waters had partially affected living areas.
Homes that experienced only minor flooding of the garden dropped in price by between zero and 10%, the report found.
Even properties that remained dry in flood-affected areas have been affected, with the report noting national house prices have fallen by 3.4% and Brisbane house prices by 6.1%.
Tradesmen were the main buyers of flood-affected properties. Within the Brisbane region, flooding impacted upon parts or all of the following areas, among others: Milton, Toowong, Auchenflower, Rocklea, Goodna, Ipswich, Yeronga, Bellbowrie, Booval, Oxley and Jindalee.
The report found many investors had been the ones who decided to sell at discounted prices rather than carry out home repairs from a distance.
“Initially there was a steady turnover of flooded properties, generally for properties in the entry-level segment of the market.
“The owners of these properties were typically interstate or overseas investors who were unable to coordinate the required repairs and also felt that by the time they paid for repairs and factored in the lost rental income that it was easier for them to move the property on quickly,” the report says.
Brisbane valuer Gavin Hulcombe said the proximity of the flood to the November 2010 interest rate rise also helped to exacerbate any drop in value.
"There's no doubt that the two coincided. In a soft market negative attributes of a property are exaggerated.''
Hulcombe says insurance would play a role in how well the market recovered in flooded areas.
"One of the issues going forward will be availability and the cost of insurance to those properties,'' he says.
"If that becomes prohibitive then that's always going to be an issue that is going to impact buyers' minds,” he told The Courier Mail.
He notes the flood inundation of significant areas within Brisbane and further to the west, including Ipswich and the Lockyer Valley, has fundamentally impacted the Queensland residential property market.
At the peak of the flood, approximately 11,900 homes were completely flooded and a further 14,700 homes were partially flooded.
Hardest hit suburbs were West End, Rocklea, Graceville, Milton, St Lucia and Bellbowrie.
Almost 12 months on the clean?up continues, the report notes, along with limited stock coming onto the market.
“Many owner-occupiers of flood?affected properties have decided to carry out repairs to the dwelling and sit tight for the medium term until the market starts to recover,” the report says.
<img src="/images/stories/apiflood1.gif">
“There has been a limited amount of riverfront prestige properties in excess of $2 million coming onto the market in 2011.
“In the last couple of months some properties have come onto the market although there has been limited demand at present, despite the fact the properties are for sale often below replacement value,” says API president Philip Willington.
“As a result of the changes to the minimal habitable floor level by the Brisbane City Council it is possible that a sub-sector of the market in the under $1 million price bracket may develop.
“One sector of the market will comprise properties that were affected by flooding and carried out the necessary repairs, whilst the other sector of the market will comprise flood-affected properties where the owners have raised the dwelling to the new minimum habitable floor level as well as carrying out the necessary repairs," Willington says.
“The market may view more favourably the properties that have been raised to try and mitigate any future flooding events.”
But the overall market within the flood-affected properties was expected to remain subdued for the medium term.
<img src="/images/stories/apiflood2.gif">
Along with minimal demand in the general property market, the flood-affected suburbs were likely to have lower levels of supply and limited demand.
”As time goes by, and floods do not re?occur, as seems likely, history suggests that the discount will shrink, though not disappear entirely.
“The floods of 1974 provide a good indication of the pricing correction that is likely to now occur,” Willington says.
“Properties flooded in 1974 experienced an immediate fall in demand from purchasers and we have seen a similar trend in 2011.
“For owner-occupiers and investors looking to buy, the knowledge that Wivenhoe Dam (completed in 1984) cannot necessarily stop future flooding in Brisbane is likely to form a key factor in the due diligence process.
“The longer term influence of the 1974 floods on property prices diminished as buyers became less cautious about the likelihood of another significant flood event and perhaps more focused on issues such as the high population growth rate in south-east Queensland.”
As memories faded about the damage in 1974 to suburbs such as St Lucia, Indooroopilly, Graceville, Chelmer and West End, substantial price growth occurred in these suburbs.
“One could therefore expect that in the longer term, upwards of 10 years, if there are no further flood events, there may be a rebound of the flood affected areas as the memories of 2011 become more distant,” the report says.
The Australian Property Institute represents 8,600 property professionals. API members include residential and commercial valuers.
The report was compiled with the assistance of CBRE, Herron Todd White and Propell National Valuers.
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jchancellor-FAypfDUnLy

Brisbane buyers shun flood-affected properties: API

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Demand for fixed-rate home loans is spiking because the products have become much cheaper than variable-rate mortgages, according to UBS.
Traditionally borrowers take out a fixed-rate loan to give them certainty about future interest rate payments when interest rates are likely to rise, but according to UBS interest rate strategist Scott Haslem demand is being driven the low fixed rates on offer.
"It doesn't mean people think rates will rise and it doesn't even mean they don't expect them to fall again," he tells Business Day’s Peter Martin. 
“It's just that fixed rates have become better value – it's becoming cheaper to grab the bird in the hand." The most recent ABS housing finance data for November shows that <a target="_blank" href="/news">fixed-rate loan approvals reached 11.1%</a> (up from 10.6% in October) of all loans, their highest proportion since November 2008 at the height of the global financial crisis.
December data from mortgage brokers <a target="_blank" href="/news">Mortgage Choice</a> and <a target="_blank" href="/news">AFG</a> show an even greater uptake of fixed-rate borrowers (24% and 19% respectively), indicating that fixed-rate approvals will rise again when December ABS figures come out in February.
According to mortgage comparison RateCity.com.au, <a target="_blank" href="/news">about 70% of lenders cut their fixed rates last year</a> with the average three-year fixed rate falling to just 6.29% in December, and one-year fixed rates falling to 6.27%.
While the standard variable rate has also fallen mainly as a result of official RBA rate cuts in November and December, the average rate is 6.89%, more than half a percentage point higher than the average fixed rate.
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Price, not rate fears, driving fixed-rate mortgage spike: UBS's Scott Haslem

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There’s no doubt purchasing a property is the single biggest investment most people make. Even when housing was a cheaper acquisition back in the 1950s – long before it was recognised as a common investment model and subject to turbulent property cycles, purchasing a house and servicing a mortgage was a major financial stress factor in most property owners’ lives.  It was a simpler equation then.  Most waited until they were married to make the commitment, and then tended to purchase the property they intended to stay in for the next 20 to 30 years and bring up a family.  There was little need to move or commute long distances to work, as many occupied the same job position for life.  The motivation to pay off the mortgage was a security for retirement, and equity models were largely unheard of.
We’ve come leaps and bounds since then.  Debt is no longer a dirty word but a means to “wealth creation”. House prices have been inflated by a long-established ease of lending practices, various inflationary policies such as the first-home owner’s grant, and tax incentives to encourage investors onto the property ladder. Our inability to effectively plan for future population growth has ensured prices in those areas attracting the highest demand have sustained tight vacancy rates, rising rents and unsustainable booms followed by sharp corrections in the property cycle.  And it’s hard to ignore housing affordability has split the market between those who can and those who can’t (broadly speaking, the asset-rich with access to existing equity – and the asset-poor).
The motivation to ease the pain for first-home buyers and increase affordability in particular has led to a raft of policies that have done precisely the opposite. The first-home buyer grants have been renamed by various professionals as the first-home “vendor” grant, with widespread acknowledgement that they increase competition and as a consequence, increase property prices.  The incitement to borrow against equity and increase debt with interest-only loans, decreasing loan-to-valuation ratios, and various lending models such as “rent to buy” schemes have encouraged some borrowers to invest short term – “speculating” on a continuation of the housing boom. This is dangerous territory.
In Victoria, first-home buyers are underway to get a 50% stamp duty cut by 2014, while NSW is busy reining in stamp duty cuts on established properties for first-home buyers, which will no doubt skew market prices – at least in the short term. And to confuse the equation a little further, first-home buyers could now be termed “first-investment buyers” because the choice to live at home longer and purchase the first property as an investment rather than principal place of residence is now encouraged as a method to establish a foothold.
Neither does it help to see numerous “get-rich-quick” schemes wafted around like confetti. As I write, an email with the headline “How Linda Built a $12k per Month Positive Income (from property) in Just 6 Years” has landed in my inbox, and I don’t need to emphasise it sounds too good to be true.  Everyone’s looking for short cuts into what should always and principally be regarded as a long-term investment with the primary purpose of providing shelter – and not just to creating wealth.
In short, the only effective way to ease house prices is to increase supply in “liveable” areas of the city (areas with enough amenities to provide jobs, transport and options for those able to make the move into newer estates).  However, seeing as this isn’t happening at any great pace, and it’s unlikely that the already established incentives such as depreciation models and incentives will be abolished and further constrain inflation, we have to move our focus to a more traditional path.
Among all attempts by government to encourage home ownership, the only real policy that seemed to have the potential of genuinely addressing affordability was the introduction of the first-home savers’ account. It was launched back in 2010 as a high-interest, low-tax saving account, set up specifically to assist first-home buyers enter the market.  It committed (and educated) purchasers to save over a four-year period, however on the proviso funds were “locked” for the entirety of that period and only accessible for use towards home ownership at the end of the term.  Furthermore, requirements were for at least $1,000 savings to be deposited per year. Therefore those taking up the scheme had to have a long-term plan, secure employment, and plenty of dedication and vision to stick to the contract – something our 21st-century lifestyle rebels against.
As touched upon above, changes in employment are expected, particularly among the first-home buyer generation, and understandably there was reluctance to lock away funds with no “get out” plan for an extended period of time.  Therefore, take-up was initially poor. From a predicted 750,000 accounts, just 15,300 were created, with only $40 million spent out of the $1.2 million originally allocated. Thankfully there’s been some relaxation on the previous conditions, and funds can now be accessed before four years if a purchase occurs beforehand.  However, the changes have come too late and as far as I’m aware, the savers’ accounts are now only offered by a limited number of smaller lending institutions. For those interested, more information can be accessed <a href="https://bit.ly/zg5EZE">here</a>.
Thankfully there’s been a gradual trend towards the psychology of saving and paying down debt since the GFC.  This isn’t isolated to <country-region><place>Australia</place></country-region>; the reaction has been the same worldwide – it’s natural in such times.  It’s also significant that the changes have been prevalent in gen Y’s age group.  Westpac New Year's Financial Resolution Survey questioned 2,000 Australian’s on their prospective spending habits for 2012. The results showed that three out of four gen Ys were committed to a focus on saving in the new year, and this can only be welcomed.
However, how long the changes will last is debatable, especially considering further talks of rate cuts by the RBA, which are solely designed to get us out there spending once again and will in turn stimulate inflation in the housing market.  There’s no argument from consumers that the rate cut was needed, however as has been pointed out many <a href="https://bit.ly/woOYlV">times</a>, what’s needed in one sector isn’t necessarily needed in all.
Underlying demand and a shortage of homes in the capital cities will keep growth in house prices on an upward curve; the concern is around how many we are locking out the market with “kind” inflationary incentives that do nothing to educate our future workforce of the real tricks to building wealth and sustaining growth over the long term – principally saving, limited spending and wise long-term investment of the surplus.  One of the problems that led us full throttle into the GFC in the first place was short-focused, irresponsible unrestricted lending practices (principally in the US), which promised purchasers they could jump into home ownership without the strict self-governance of basic lessons such as the ability to comfortably service debt.  We thankfully didn’t have the same phenomenon here, however if we keep feeding the psychology that when the going gets tough someone will produce the taxpayer cheque book, we’re in the process of building bubbles and unstable foundations.
The lesson isn’t just one that needs to come from above.  It starts at home – according to various surveys, including one recently conducted by <a href="https://bit.ly/xSMl0S">Rabo Direct</a>, one in five gen Xs agree with more than 35% of gen Ys who accept that the only way they will be able to purchase a property is through handouts from their family (who purchased the traditional way, with no help and stricter lending conditions and generally higher interest rates).
Is it really that much harder now than it was then?  Well, yes, it is if initial expectation is too high.  We often see headlines exclaiming that the Australian dream is no longer a suburban detached house with ample backyard for games of cricket, but instead has been replaced with apartment living.  It’s not a replacement of the dream, it’s acceptance from those who are unprepared to move into the outer, more affordable, suburban areas, that they need to compromise and build towards the dream or accept a long commute to work.
So let’s drop the incentives, the handouts, and get back down to basic education. Housing is expensive and no one – government included – is going to step in and relieve the pain.  Therefore teach your children to start saving young and build stepping stones towards their long-term dreams – one of which should always be home ownership (most don’t want a life time renting and yet that’s what we’re slowly heading towards).
Take advantage of educational incentives such as the first-home savers’ account, but don’t give the lesson with a handout.  Warren Buffet is over quoted, however when you read his pearls of wisdom you can understand why - “A very rich person should leave his kids enough to do anything but not enough to do nothing.” The valuable long-lasting lessons are the ones we work hard for.
Catherine Cashmore is senior buyer advocate for <a href="https://www.elitebuyeradvocates.com.au/" target="_blank">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
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catherinecashmore-6LXia3pPQj

Put an end to first-home buyer handouts

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The significance of superannuation for the wealth of individuals and as a national asset demands that super funds are transparent and well governed, according to John Brogden, chief of the Financial Services Council.
Superannuation is already larger than GDP, and he suggests in the years to come will dwarf it.
“Outside the family home, superannuation is the largest asset Australian individuals own,” Brogden says.
Australia has $1.8 trillion worth of funds under management, making it the fourth-largest pool of funds in the world, and $1.3 trillion of this is superannuation. The increase in compulsory superannuation contributions from 9% to 12% – passed through the House of Representatives last year and likely to pass the Senate early this year – will cause this to grow to $3 trillion by 2020 and $5.5 trillion by 2030.
Brogden says 75% of Australians have some superannuation assets and the average balance is $154,000.
“Despite the significance of superannuation to the Australian economy and to individual Australians, more than 50% of workers – particularly the young and those with low incomes – have at best little interest in superannuation, and in too many cases no interest or understanding of the savings on which they will rely for their long retirements,” he wrote in the Australian Financial Review.
“Much of the focus from the government’s Stronger Super reforms have centred on costs and efficiencies.
“Appropriately, the focus has turned to transparency and governance.
“Considering super’s mandatory nature, raising governance and transparency to adequate levels is overdue.
“The Australian Securities and Investments Commission and the funds management industry have begun a process to give fund members the ability to know more about where their personal superannuation is invested,” he says.
“Portfolio holdings disclosure allows individual members to contact their superannuation funds and, based on the investment strategy they have chosen – or in the case of MySuper members, the strategy applied to them – find out meaningful details about where the relevant fund managers have invested their savings.
“It is critical to acknowledge that the interest of fund members in the detail of their investment portfolios will vary. Some will be interested in the exact breakdown and value of their portfolios – not only the investment strategy, but the individual categories, or indeed the companies or properties in which they are invested. Some will want to have a day-to-day hands-on interest in their portfolio allocation. These people will continue to establish self-managed super funds.”
But Brogden advises that listing every investment in every company or asset would be so complex as to be meaningless to most fund members and the cost of implementing and maintaining systems to provide up-to-date or intricately detailed investment records for individual members would add real costs.
“We must get the right balance between disclosure, cost and complexity.
“The Financial Services Council has been buoyed by the pragmatic approach from ASIC chairman Greg Medcraft,” he says.
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Super must be well governed but not over-regulated: Financial Services Council chief John Brogden

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Increased first-home buyer activity and demand for fixed-rate mortgages were the two key trends to emerge from solid November ABS housing finance figures released today. The figures, which include the impact of the November 1 rate cut, reveal that the number of owner-occupier mortgages increased 1.4% to just under 47,000 – the eighth consecutive monthly increase in mortgage approvals.
By state, the figures for owner-occupier finance were mixed, continuing the divide evident in 2011, noted Westpac. 
“NSW outperformed, up 4.2%, with the announced changes to stamp duty arrangements from the start of 2012 bringing demand forward,” Westpac says. 
“The mining state of WA strengthened, up 0.9%. However, Victoria weakened, down 0.2%, with the state facing a sizeable increase in supply. Queensland remained disappointing, up 0.9%, which was insufficient to reverse falls over the previous two months,” says Westpac. There was a pick-up in the investment sector, with fixed loans for investment housing rising 2.2% to $6.6 billion while the total number of loans purchased for new dwellings increased by 2% over the month. 
Macquarie senior economist Brian Redican described the November data as “encouraging and a step in the right direction”.
He expects the two successive interest rate cuts and the prospect of more cuts to come in 2012 to deliver further boosts to the housing sector in the months to come.
“I think it does have to have a positive impact. These numbers don't reflect those cuts yet and it will have to take a few more months for that to flow through,” Redican says.
First-home buyers’ share of mortgage approvals (excluding refinancing) increased to 16.1% in November from 15.7% in October. “This is the highest first-home buyer share of total approvals since January 2010 and shows that improving housing affordability is generating some moderate first-home buyer activity,” noted David Cannington from ANZ Research. Cannington expects first-home buyers’ share of the market to continue to increase over the coming months due to further weakening in house prices and lower mortgage rates – December housing finance figures will factor in both the November and December rate cuts as well as improved interest rate sentiment. The other key finding from the November data was the growing demand for fixed-rate loans, which increased to 11.1% in November from 10.6% in October to be at the highest proportion since June 2008. “Attractive fixed mortgage rates and ongoing financial market uncertainty continued to drive an increase in fixed rate lending,” Cannington says.
Dean Rushton, chief operating officer of mortgage broker Loan Market, expects the eight months of consecutive mortgage growth to continue while consumers act upon the November and December rate cuts.
“Consumers will likely remain confident in the housing finance market, with the strong possibility of a rate cut in February,” he says.
“This should fuel a significant number of approvals in the coming months, which will stimulate many struggling sectors in the economy.” 
Mortgage approvals in NSW were up 4.9% from October 2011, and 9.4% for the year. 
“In NSW we’re seeing a significant demand brought forward by first-home buyers acting before the 2011 deadline for the stamp duty exemption,” Cannington says.
There was a 2% increase in loans for the purchase of new homes with a 5.6% rise in NSW, an 8.4% increase in Queensland, a 13.4% in South Australia, a 20.9% increase in the Northern Territory, and a 17.5% increase in the ACT. 
The number of loans for new housing fell by 8.5% in Victoria, 3.3% in Western Australia, and 8.9% in Tasmania. Over the three months to November 2011 lending for new housing was down in all states and territories except for Tasmania, WA and Queensland. 
<img src="/images/stories/newhomeloanshia.gif">
 HIA chief economist Harley Dale says there is “a modest revival underway in the established lending market, which now extends to five rises in six months”. 
“New home lending has yet to join the ride,” he says. 
The combined number of loans for construction/purchase of a new dwelling was effectively flat in November 2011 (up 0.3%) to be down by 8% when compared to the same month in 2010,” Dale says.
“The second half of 2011 saw a renewed trend decline in new home lending, a concerning situation which further highlights the risk of new housing starts approaching GFC-like levels once more,” Dale adds.
Masters Builders Australia chief economist Peter Jones also noted the ongoing weakness in loans for construction and purchase of new dwellings.
“The key finance indicator released today by the ABS shows that demand for new dwellings remains flat, despite indications of a pick-up in commitments for the purchase of established dwellings.
“The housing market is beginning to pick itself off the floor but the number of finance commitments remains weak by historical standards as consumer caution and euro turmoil work against the upswing. 
“The two recent rate cuts in November and December will help, but Master Builders believes the Reserve Bank still needs to do more to boost confidence and encourage a recovery in residential building.
 
 
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