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>
Property market participants have more confidence in and growth expectations for Australia’s resource-rich states and territories, according to latest Property Council of Australia (PCA)-ANZ Property Industry Confidence Survey.
The PCA-ANZ property industry confidence index increased at the national level from 104 in September to 107 in December (neutral being 100), but “there was increasing divergence in property industry confidence across the states”. 
“Resource-sector states (WA, Queensland, Northern Territory, South Australia) are indicating the greatest confidence, while Victoria, ACT and Tasmania are indicating the lowest confidence,” says ANZ and the PCA.
<img src="/images/stories/confidence2.gif">
Source: PCA-ANZ
The Northern Territory registered the biggest jump in confidence over the last quarter of 2011 and has the highest rating on the confidence index, followed by Western Australian and Queensland, which both recorded strong gains. 
There was also a small lift in South Australia, where a number of big projects are in the pipeline. 
On the other hand, confidence fell below the 100 mark in Victoria, Tasmania and the ACT, which do not have strong ties to the resources boom. 
Reflecting a weak property market and poor job and tourism prospects, Tasmania property participants have the gloomiest outlook of all states and territories. 
While confidence in the property market in NSW declined over December, it remains above the neutral 100 mark. 
Survey respondents expect residential prices to fall further in the March quarter in all states and territories bar the Northern Territory, despite back-to-back November and December rate cuts and an increasing likelihood that the RBA will cut rates further in early 2012. 
The outlook for residential property values improved strongly in Western Australia and Queensland though remained below the 100 mark, and there were also gains in NSW.
<img src="/images/stories/residentialgrowth.gif">
Confidence in the property market fell furthest in Victoria over the quarter, with 61% of industry respondents expecting residential prices to weaken in the March quarter compared with 54% in the previous quarter. 
“The data indicate the significant negative impact of ongoing economic and global financial market uncertainty that is weighing on housing market confidence and expectations,” says ANZ and the PCA. 
ANZ expects house prices to ease further into 2012 but maintains a “cautiously optimistic medium-term house price view supported by a robust economic outlook, limited forced selling, improved affordability and an ongoing tightening of the Australian housing demand/supply balance”. 
The survey also revealed that the property industry expects the RBA to cut interest rates further in the March quarter of 2012.
 
</body></html>

lschlesinger-FZcF9M3vE6

Australian property market confidence highest in resource-rich areas: PCA-ANZ survey

<html><body>
Waimea House, a Federation Arts and Crafts-style residence in Sandy Bay, Tasmania has been sold for a record $8.5 million in a late 2011 deal that has stunned the island’s estate agents.
It had only been sold nine months <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/%246-million-waimea-house-sale-eclipses-tasmanian-record/2011071050751" target="_blank">earlier in 2011 for a record $6.06 million</a>.
Its latest buyer is the low-key investment banker Greg Woolley from Point Piper, Sydney. He was born in Hobart in 1973 and is understood to have admired the home since childhood.
Its fortunate seller-turned-property flipper was the Sydney property developer Piers Dawson-Damer and his wife, Kim, who’d moved to Tasmania after selling their Rose Bay, Sydney home.
Many regard the landmark property as occupying the finest position in Hobart, with harbour views and complete privacy.
The property had previously been in the Nettlefold family ownership for 70 years until sold in early 2011.
The prominent Hobart family had consolidated a four-block amalgamation.
The Sandy Bay property was marketed as Hobart's most prestigious and distinguished residential estate by Brian Watchorn of Charlotte Peterswald for Property.
It sits on a 9,726-square-metre-holding with a pool, tennis court, and a smaller second residence with Art Deco influences.
Woolley, a former Macquarie Bank executive, has specialised in leasing, primarily overseeing the Melbourne Liberman family's aircraft leasing business, Global Aviation Asset Management.
Last August the Greg Woolley-led Global Aviation Asset Management was sold to US-listed Fly Aviation Leasing.
It was reported Woolley netted $42.5 million in proceeds.
</body></html>

jchancellor-FAypfDUnLy

Waimea House $8.5 million sale to Greg Woolley sets Tasmanian residential record for second time in nine months

<html><body>
The availability of rental homes has improved slightly in Melbourne, but there are still opportunities for investors, particularly in regional Victoria. Aspiring first-time investors should undertake research before buying their first property, and there are a few terms that they will need to know: equity, capital growth, investment return and gross rental yield.
Equity: This is the difference between the property purchase price and the amount owed on the loan. In other words, what you own, not what you owe.  Generally equity increases over time in line with capital growth and a reduction in the debt.
Capital growth: The term capital growth is often used in real estate to describe the increase in the price or value of a property. Capital growth is the annual compound rate of growth in the value of the property. For instance, if you bought a house in Coburg for $538,500 and 12 months later it was worth $550,000, the capital growth is the difference between the two – $11,500 – divided by the purchase price. This equates to 2.1% over a year. Capital growth is also known as capital appreciation.
Investment return: From a real estate perspective the term “investment” return is very similar to the capital growth figure.  It is the percentage of change in value of the investment over a given period of time.
Gross rental yield: Gross rental yield is a term that is frequently used to compare the investment return on a property investment. To calculate the amount you divide the yearly rental income by the purchase price of the home. For instance, the yearly rental income on a three-bedroom house in Coburg is $20,000 and the median house price is $550,000, resulting in a gross rental yield of 3.6%.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
For more advice on buying your first investment property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/first-investment-property-a-beginner-s-guide">download our free eBook.</a>
</body></html>

enzoraimond-7fvRFHPR52

Terms first-time property investors need to know

<html><body>
The national residential market is anticipated to remain subdued in 2012 as consumers continue to pay off debts, according to a survey of the 350-plus First National Real Estate offices.
However, subdued house prices will stimulate some activity, particularly among bargain hunters who have been squirreling away savings and are now cashed up, according to First National chief executive Ray Ellis.
The vast majority of offices acknowledged the market had steadied or fallen, but there were distinct regional differences. The Sydney market is anticipated to stabilise first, as it has already shown signs of doing, but for some of the other capital cities, like Melbourne, there could still be some way to go.
TYPE OF MARKET – LAST SIX MONTHS 2011
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="48" valign="top"></td>
<td width="55" valign="top">
National
</td>
<td width="52" valign="top">
WA
</td>
<td width="52" valign="top">
VIC
</td>
<td width="43" valign="top">
TAS
</td>
<td width="37" valign="top">
QLD
</td>
<td width="52" valign="top">
SA
</td>
<td width="52" valign="top">
NSW/ACT
</td>
</tr>
<tr>
<td width="48" valign="top">
Falling
</td>
<td width="55" valign="top">
58%
</td>
<td width="52" valign="top">
33%
</td>
<td width="52" valign="top">
81%
</td>
<td width="43" valign="top">
94%
</td>
<td width="37" valign="top">
80%
</td>
<td width="52" valign="top">
43%
</td>
<td width="52" valign="top">
36%
</td>
</tr>
<tr>
<td width="48" valign="top">
Steady
</td>
<td width="55" valign="top">
36%
</td>
<td width="52" valign="top">
34%
</td>
<td width="52" valign="top">
19%
</td>
<td width="43" valign="top">
-
</td>
<td width="37" valign="top">
13%
</td>
<td width="52" valign="top">
57%
</td>
<td width="52" valign="top">
59%
</td>
</tr>
<tr>
<td width="48" valign="top">
Rising
</td>
<td width="55" valign="top">
6%
</td>
<td width="52" valign="top">
33%
</td>
<td width="52" valign="top">
-
</td>
<td width="43" valign="top">
-
</td>
<td width="37" valign="top">
7%
</td>
<td width="52" valign="top">
-
</td>
<td width="52" valign="top">
5%
</td>
</tr>
</tbody></table>
The First National agents expect the market will further moderate, although some areas have the potential to experience an even deeper decline.
TYPE OF MARKET – FIRST SIX MONTHS 2012
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="48" valign="top"></td>
<td width="55" valign="top">
National
</td>
<td width="52" valign="top">
WA
</td>
<td width="52" valign="top">
VIC
</td>
<td width="43" valign="top">
TAS
</td>
<td width="47" valign="top">
QLD
</td>
<td width="41" valign="top">
SA
</td>
<td width="66" valign="top">
NSW/ACT
</td>
</tr>
<tr>
<td width="48" valign="top">
Falling
</td>
<td width="55" valign="top">
25%
</td>
<td width="52" valign="top">
-
</td>
<td width="52" valign="top">
31%
</td>
<td width="43" valign="top">
-
</td>
<td width="47" valign="top">
20%
</td>
<td width="41" valign="top">
29%
</td>
<td width="66" valign="top">
32%
</td>
</tr>
<tr>
<td width="48" valign="top">
Steady
</td>
<td width="55" valign="top">
66%
</td>
<td width="52" valign="top">
83%
</td>
<td width="52" valign="top">
69%
</td>
<td width="43" valign="top">
89%
</td>
<td width="47" valign="top">
60%
</td>
<td width="41" valign="top">
71%
</td>
<td width="66" valign="top">
59%
</td>
</tr>
<tr>
<td width="48" valign="top">
Rising
</td>
<td width="55" valign="top">
9%
</td>
<td width="52" valign="top">
17%
</td>
<td width="52" valign="top">
-
</td>
<td width="43" valign="top">
-
</td>
<td width="47" valign="top">
20%
</td>
<td width="41" valign="top">
-
</td>
<td width="66" valign="top">
9%
</td>
</tr>
</tbody></table>
The survey concluded it was unlikely uniform property prices will be seen in the 2012 Australian real estate market.
Some parts of the market will demonstrate greater price resilience, especially “muscle towns” with direct links to the mining sector or specific agricultural regions, Ellis suggests
“Other parts of the housing market may experience strong price deflations.”
He says stagnant prices are a normal part of Australia’s long-term cyclical housing market.
The housing market across Australia has remained soft in 2011, with home values dropping in all capital cities for an average dwelling price in October last year of $448,500.
Residential property prices are expected to bottom out in 2012, especially if official interest rates are cut below their current 4.25%.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="254" valign="top">
City
</td>
<td width="74" valign="top">
Movement Year on Year
</td>
<td width="102" valign="top">
Median Dwelling Price
</td>
</tr>
<tr>
<td width="254" valign="top">
Sydney
</td>
<td width="74" valign="top">
-1.1%
</td>
<td width="102" valign="top">
$498,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Canberra
</td>
<td width="74" valign="top">
-1.1%
</td>
<td width="102" valign="top">
$475,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Brisbane
</td>
<td width="74" valign="top">
-8.0%
</td>
<td width="102" valign="top">
$402,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Melbourne
</td>
<td width="74" valign="top">
-5.4%
</td>
<td width="102" valign="top">
$458,500
</td>
</tr>
<tr>
<td width="254" valign="top">
Adelaide
</td>
<td width="74" valign="top">
-5.2%
</td>
<td width="102" valign="top">
$370,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Perth
</td>
<td width="74" valign="top">
-5.0%
</td>
<td width="102" valign="top">
$443,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Hobart
</td>
<td width="74" valign="top">
-4.0%
</td>
<td width="102" valign="top">
$310,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Darwin
</td>
<td width="74" valign="top">
-3.1%
</td>
<td width="102" valign="top">
$458,000
</td>
</tr>
<tr>
<td width="254" valign="top">
Regional
</td>
<td width="74" valign="top">
-3.4%
</td>
<td width="102" valign="top">
$316,000
</td>
</tr>
</tbody></table>
Ellis suggests the combination of lower interest rates, cheaper homes and rising incomes is generating a welcome boost to housing affordability, particularly in those markets where value falls have been more significant.
HOUSE PRICES – NEXT SIX MONTHS 2012
Movements in house prices are expected to be mainly within the vicinity of 1% to 5%, but the majority of survey respondents anticipate them to be less than 1%.  Small pockets of Victoria, South Australia and New South Wales/Australian Capital Territory are forecast to experience drops of about 10%.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="74" valign="top"></td>
<td width="67" valign="top">
National
</td>
<td width="43" valign="top">
WA
</td>
<td width="43" valign="top">
VIC
</td>
<td width="43" valign="top">
TAS
</td>
<td width="43" valign="top">
QLD
</td>
<td width="43" valign="top">
SA
</td>
<td width="64" valign="top">
NSW/ACT
</td>
</tr>
<tr>
<td width="74" valign="top">
Flat
</td>
<td width="67" valign="top">
56%
</td>
<td width="43" valign="top">
50%
</td>
<td width="43" valign="top">
50%
</td>
<td width="43" valign="top">
92%
</td>
<td width="43" valign="top">
47%
</td>
<td width="43" valign="top">
86%
</td>
<td width="64" valign="top">
55%
</td>
</tr>
<tr>
<td width="74" valign="top">
Downwards
</td>
<td width="67" valign="top">
28%
</td>
<td width="43" valign="top">
17%
</td>
<td width="43" valign="top">
50%
</td>
<td width="43" valign="top">
-
</td>
<td width="43" valign="top">
27%
</td>
<td width="43" valign="top">
14%
</td>
<td width="64" valign="top">
23%
</td>
</tr>
<tr>
<td width="74" valign="top">
Upwards
</td>
<td width="67" valign="top">
16%
</td>
<td width="43" valign="top">
33%
</td>
<td width="43" valign="top">
-
</td>
<td width="43" valign="top">
-
</td>
<td width="43" valign="top">
26%
</td>
<td width="43" valign="top">
-
</td>
<td width="64" valign="top">
22%
</td>
</tr>
</tbody></table>
Tasmanian members all believe house prices will remain steady.
APARTMENT PRICES – NEXT SIX MONTHS
Apartment/strata property prices in the coming six months are expected to remain relatively flat although there could be some falls experienced.  A small portion of the membership anticipates prices for this segment to rise.
Falls for apartment/strata property prices are expected, in the main, to be below 1% although some members say there is a possibility they could move as much as 5%.  A very small portion of the membership indicates price movements in the area of 10%.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="74" valign="top"></td>
<td width="60" valign="top">
National
</td>
<td width="43" valign="top">
WA
</td>
<td width="43" valign="top">
VIC
</td>
<td width="50" valign="top">
TAS
</td>
<td width="43" valign="top">
QLD
</td>
<td width="43" valign="top">
SA
</td>
<td width="64" valign="top">
NSW/ACT
</td>
</tr>
<tr>
<td width="74" valign="top">
Flat
</td>
<td width="60" valign="top">
55%
</td>
<td width="43" valign="top">
34%
</td>
<td width="43" valign="top">
56%
</td>
<td width="50" valign="top">
87%
</td>
<td width="43" valign="top">
42%
</td>
<td width="43" valign="top">
71%
</td>
<td width="64" valign="top">
60%
</td>
</tr>
<tr>
<td width="74" valign="top">
Downwards
</td>
<td width="60" valign="top">
31%
</td>
<td width="43" valign="top">
33%
</td>
<td width="43" valign="top">
38%
</td>
<td width="50" valign="top">
-
</td>
<td width="43" valign="top">
42%
</td>
<td width="43" valign="top">
29%
</td>
<td width="64" valign="top">
20%
</td>
</tr>
<tr>
<td width="74" valign="top">
Upwards
</td>
<td width="60" valign="top">
14%
</td>
<td width="43" valign="top">
33%
</td>
<td width="43" valign="top">
6%
</td>
<td width="50" valign="top">
-
</td>
<td width="43" valign="top">
16%
</td>
<td width="43" valign="top">
-
</td>
<td width="64" valign="top">
20%
</td>
</tr>
</tbody></table>
Land Prices
According to the survey, most of the First National offices expect land prices to remain flat.
LAND PRICES – NEXT SIX MONTHS
<table border="1" cellspacing="0" cellpadding="0" width="417"><tbody>
<tr>
<td width="73" valign="top">
Trend
</td>
<td width="55" valign="top">
National
</td>
<td width="45" valign="top">
WA
</td>
<td width="41" valign="top">
VIC
</td>
<td width="47" valign="top">
TAS
</td>
<td width="49" valign="top">
QLD
</td>
<td width="40" valign="top">
SA
</td>
<td width="66" valign="top">
NSW/ACT
</td>
</tr>
<tr>
<td width="73" valign="top"></td>
<td width="55" valign="top"></td>
<td width="45" valign="top"></td>
<td width="41" valign="top"></td>
<td width="47" valign="top"></td>
<td width="49" valign="top"></td>
<td width="40" valign="top"></td>
<td width="66" valign="top"></td>
</tr>
<tr>
<td width="73" valign="top">
Upwards
</td>
<td width="55" valign="top">
15%
</td>
<td width="45" valign="top">
17%
</td>
<td width="41" valign="top">
15%
</td>
<td width="47" valign="top">
-
</td>
<td width="49" valign="top">
20%
</td>
<td width="40" valign="top">
-
</td>
<td width="66" valign="top">
15%
</td>
</tr>
<tr>
<td width="73" valign="top">
Downwards
</td>
<td width="55" valign="top">
27%
</td>
<td width="45" valign="top">
-
</td>
<td width="41" valign="top">
39%
</td>
<td width="47" valign="top">
-
</td>
<td width="49" valign="top">
27%
</td>
<td width="40" valign="top">
29%
</td>
<td width="66" valign="top">
30%
</td>
</tr>
<tr>
<td width="73" valign="top">
Flat
</td>
<td width="55" valign="top">
58%
</td>
<td width="45" valign="top">
83%
</td>
<td width="41" valign="top">
46%
</td>
<td width="47" valign="top">
95%
</td>
<td width="49" valign="top">
53%
</td>
<td width="40" valign="top">
71%
</td>
<td width="66" valign="top">
55%
</td>
</tr>
</tbody></table>
For more property forecasts for 2012, <a target="_blank" href="https://register.propertyobserver.com.au/property-forecasts-for-2012/">download our free eBook.</a>
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First National agents mostly expect house prices to remain subdued in 2012 

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The values of residential land in the Maitland local government area have only shown slight increases in the past three years.
Commercial land values have generally remained steady or shown a slight increase since July 1, 2008, according to the latest official data from NSW Valuer-General Philip Western.
That will be of interest for Pauline Hanson, <a href="https://www.propertyobserver.com.au/commercial/pauline-hanson-buys-former-maitland-pub-premises-and-won-t-completely-rule-out-her-return-to-fish-and-chips/2012010852977" target="_blank">who has bought former hotel premises on the main street in town of Maitland</a>.
Industrial land values have generally remained steady.
Rural residential or hobby farm land has generally shown a slight increase in value over the three-year period.
The value of rural land has generally shown a slight decrease over the period.
<img src="/images/stories/maitlandmap.gif">
The median Maitland residential land value jumped 3.5% from $144,000 to $149,000 over the past year. The median Maitland commercial land value dropped to $149,000 from $160,000 during the past year.
The overall value of the 28,106 properties in the Maitland local government area as at July 2011 was $5.26 billion, a slight increase from the $5.25 billion at July 2008, Western says.
Sales that assisted in determining land values during the 2011 valuation program included 312 residential, 16 commercial, 18 industrial and 91 rural sales that were analysed, he said.
While the value of residential land generally showed a slight increase exceptions included residential land in the northern section of East Maitland, which showed a moderate increase in value.
Residential land in the southern part of Rutherford and parts of Largs and Bolwarra Heights showed a slight decrease in value.
While commercial land values remained steady, the Valuer-General noted selected areas in the main CBD, such as the Church and Elgin streets areas, recorded moderate increases.
But parts of Rutherford, Morpeth and Greenhills showed a slight decrease.
While industrial land values generally remained steady, the exception was land in the Thornton industrial area, which showed a moderate increase in value, and some larger industrial and environmentally constrained sites, which have shown a slight decrease in value. 
Typical residential land values were:
<ul>
<li>835 square metres at Bolwarra Road, Bolwarra valued at $194,000</li>
<li>660 square metres at Brigantine Street, Rutherford valued at $103,000</li>
<li>340 square metres at Bulwer Street, Maitland valued at $97,900</li>
<li>468 square metres at Green Hills Avenue, Woodberry valued at $109,000 </li>
<li>727 square metres at Reilly Street, Thornton valued at $163,000</li>
<li>849 square metres at Wilton Drive, East Maitland valued at $211,000</li>
<li>721 square metres at Semillon Ridge, Gillieston Heights valued at $146,000. </li>
</ul>
Typical commercial land values were:
<ul>
<li>282 square metres at East Mall, Rutherford valued at $87,800</li>
<li>588 square metres at High Street, East Maitland valued at $129,000</li>
<li>1,355 square metres at Mitchell Drive, East Maitland valued at $334,000</li>
<li>221 square metres at High Street, Maitland valued at $126,000. </li>
</ul>
Typical industrial land values were:
<ul>
<li>4.1 hectares at Kyle Street, Rutherford valued at $2,240,000</li>
<li>2,571 square metres at Kestrel Avenue, Thornton valued at $365,000</li>
<li>1,912 square metres at Racecourse Road, Rutherford valued at $252,000</li>
<li>1,627 square metres at Turton Street, Metford valued at $198,000. </li>
</ul>
Typical rural land values were:
<ul>
<li>131 hectares at Knockfin Road, Luskintyre valued at $1,273,000</li>
<li>40 hectares at Maitland Vale Road, Maitland Vale valued at $565,000. </li>
</ul>
Typical rural residential land values were:
<ul>
<li>4,008 square metres at Woodlands Drive, Thornton valued at $268,000</li>
<li>1.4 hectares at Beacon Hill Road, Windella valued at $290,000</li>
<li>4,000 square metres at Quiescent Close, Louth Park valued at $278,000. </li>
</ul>
Typical hobby farm land values were:
<ul>
<li>12.1 hectares at Old North Road, Lochinvar valued at $342,000</li>
<li>11.7 hectares at Scotch Creek Road, Millers Forest valued at $350,000. </li>
</ul>
Western says landowners wishing to know more about their land value or the land valuation system could call toll free on 1800 110 038 or visit the <a href="https://www.lpi.nsw.gov.au/valuation/land_value_search?utm_source=lpihp&amp;utm_medium=middlebanner&amp;utm_campaign=landvaluesearch">Land and Property Information website</a>.
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Values holding steady in Maitland, Pauline Hanson's new investment neighbourhood

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Land values in the Bogan local government area in central western NSW have fallen slightly.
<img src="/images/stories/bogan_lga_nsw.jpg">
The total land value of the Bogan Shire was $313 million, a slight decrease from the $316 million total as at July 2007.
Over the four-year period since landowners in Bogan were issued with notices of valuation, the value of residential and commercial land had generally shown a slight decrease, NSW Valuer-General Philip Western says.
There are just 2,024 properties in the Bogan municipality and therefore few sales to analyse price movements.
“Real estate analysis in the Bogan LGA has been comprehensive during the course of the 2011 valuation program, with 32 residential, four commercial, one industrial and 21 rural sales analysed,” Western advises.
The median residential land value fell from $30,500 to $26,500 over the past year.
Its only significant town is Nyngan.
The shire’s famers graze sheep and cattle along with cropping, primarily wheat.
Western says red farming country decreased slightly in value.
He says industrial land generally showed a slight increase in value.
Most of the rural, rural residential and village land zoned holdings generally remained steady over the four-year period.
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Bogan values slightly down, with industrial outlook the brightest

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Regional towns linked to the mining industry are expected to again be among the top-performing property markets in Australia in 2012, according to hotspotting.com.au director Terry Ryder.
Ryder has picked five mining towns (Port Hedland, Newcastle, Bowen, Whyalla and Darwin) among the best prospects for 2012 even though he warned investors to avoid mining towns in general on a list of No-Go Zones he compiled in August last year.
The 2011 no-go list included the mining towns of Kalgoorlie and Mount Isa.
“Mining towns have great allure for property investors because they often provide high rental returns and rapid capital growth,” Ryder <a target="_blank" href="https://www.propertyobserver.com.au/queensland/mining-towns-not-rivers-of-gold-terry-ryder/2011081051115">said at the time.</a>
“But mining towns are among the most perilous locations for investors. They sit at the extreme far end of the risk spectrum. Mining towns have volatile markets that depend on buoyancy in the resources sector,” he said in August 2011.
“Often the prices and rents in mining towns are sustainable only while a resources boom lasts.”
This time around he again warns that despite the “often spellbinding” appeal of resources boom-related towns for property investors, “there are risks to be heeded – most notably in locations that are dependent solely on the fortunes of a single project”.
In his current list Ryder also warns that the increasing trend of FIFO (fly-in, fly-out) workers poses growing potential risks for those investing in real estate in mining towns.
Despite this, he says the performance and future prospects of property investment in mining towns cannot be ignored.
Ryder has highlighted <a href="https://www.propertyobserver.com.au/hotspots/hotspot-newcastle-tipped-for-strong-growh/2011062950648" target="_blank">Newcastle, heart of the NSW coal-mining industry</a>, as Australia’s “most under-rated market” and Port Hedland in the <a href="https://www.propertyobserver.com.au/residential/pilbara-mining-rents-the-seven-most-expensive-wa-boom-towns/2011113052624" target="_blank">iron-ore rich Pilbara region</a> of northern Western Australia as Australia’s “most remarkable property market” in the January 2012 edition of The Ryder Report.
“While it has a lingering image of smoke stacks and hard times, in reality Newcastle is a prosperous city with a pumping economy and a great lifestyle, which presents as a viable affordable alternative to Sydney. Most Newcastle suburbs recorded price growth in 2011 and some delivered double-digit growth,” Ryder says.
The <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> director describes Port Hedland as having “the most extraordinary property market, with house prices rising an average 22% per year for the past 10 years and the median price now $1.04 million”.
“Just when you think they can’t go any higher, they do. The median price rose 11% in 2011. Despite these ridiculously high prices, you can still get 10% yields because typical rents are above $1,800 per week. There is no other market like this in Australia,” he says.
In Queensland, Ryder names <a href="https://www.propertyobserver.com.au/queensland/gladstone-queensland-s-top-performer-reiq/2011082451272" target="_blank">perennial hotspot favourite Gladstone</a> – location of some of Australia’s biggest long-term resource projects, including a $41 billion coal mining project scheduled to run from 2011 to 2020 – as the star performer of 2011 and Bowen, 1,100 kilometres north of Brisbane, as the state’s rising star of 2012 because of its “important role in the Queensland coal industry”.
“[Bowen’s] prospects were enhanced late in 2011 when the state government announced a super-sizing of Abbot Point. With six new coal terminals to be built, it will be one of the biggest export facilities in the world,” Ryder says.
In NSW, the <a href="https://www.propertyobserver.com.au/residential/mining-boom-drives-up-nsw-hunter-valley-rents/2011113052623" target="_blank">mining-rich Hunter Valley</a> is Ryder’s pick as the state’s top performer of 2011 while he believes Whyalla in South Australia will be the state’s star performer in 2012, labelling it the “Gladstone of South Australia”.
“It’s the largest regional centre in the state, it’s affordable and it will play a key role in the $30 billion expansion of Olympic Dam. A new export port is being planned there, as well as a $1 billion rare earths processing plant,” he says.
Both Ryder’s top picks in the Northern Territory have mining links, with the small regional town of Tennant Creek chosen because of its “cattle properties, tourist attractions and mining sites”. He also nominates the capital Darwin as the best territory prospect for 2012 on the back of the $30 billion Inpex onshore gas project almost certain to proceed after gaining both territory and federal approval. Ryder also says the decision to station 2,500 US military personnel in Darwin will boost market confidence. 
Regional towns not tied to the resources boom and suburban markets also make the January list including the unfashionable outer western Sydney suburb of Blacktown (his top NSW pick for 2012).
“Blacktown will continue its steady emergence as an underrated star of the Sydney market. First-home buyers are starting to return in numbers to the Blacktown LGA, which includes Seven Hills and Quakers Hill. It is also a population growth leader, has good transport links and is close to major jobs nodes,” says Ryder.
He also picks the Melbourne suburb of Melton as the rising star of the Victorian market of 2012, with the regional town of Ballarat the state’s star performer of 2011.
“A strong regional centre within commuting distance of Melbourne, Ballarat had a strong year while much of Melbourne was struggling. A number of Ballarat suburbs recorded double-digit growth in median house prices. The city’s prospects are set to get stronger, with the Regional Rail Link, multiple wind farms and a new cancer centre coming up,” he says.
He describes Melton as the most affordable region of the city housing market with good transport connections to central Melbourne and which will be boosted by urban renewal developments.
The southern Perth region of Murdoch is picked as the star performer of 2012 due to being a “cluster of middle-priced suburbs around a major university-hospital precinct”, site for the $2 billion Fiona Stanley Hospital currently under construction as well as the recently released eight-hectare mixed-use “Murdoch Mix” precinct which will include 220,000 square metres of commercial offices, allied health services, retail, residential and short-stay accommodation planned until 2031.
The full list is:
 
QUEENSLAND:
Star performer of 2011 – Gladstone
Rising star in 2012 – Bowen
 
NEW SOUTH WALES:
Star performer of 2011- The Hunter Valley
Rising star in 2012 – Blacktown
 
VICTORIA:
Star performer of 2011 – Ballarat
Rising star in 2012 – Melton
 
WESTERN AUSTRALIA
Star performer of 2011 – Port Hedland
Rising star in 2012 – Murdoch precinct
 
SOUTH AUSTRALIA:
Star performer of 2011 – Ceduna
Rising star in 2012 – Whyalla
 
NORTHERN TERRITORY:
Star performer of 2011 – Tennant Creek
Rising star in 2012 – Darwin
 
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Mining towns could be 2012 property hotspots: Terry Ryder

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Mortgage broker Mortgage Choice says home loan key fact sheets are a good starting point for making mortgage comparisons, but are not a comprehensive tool. 
Since January 1, 2012, lenders must provide customers with a home loan key facts sheet, setting out the details of the mortgage they may apply for including the interest rate, loan amount, fees, total cost of the mortgage (including interest), how much mortgage repayments will rise if the interest rate rises by 1% and ways to pay off their home loan faster. 
The fact sheet requirement is aimed at making it easier for borrowers to compare mortgage products and is part of the government’s banking reforms program, which also includes the ban on exit fees on variable-rate mortgages. 
The home loan key facts sheets do not constitute an offer to provide credit.
According to Belinda Williamson, acting head of corporate affairs at Mortgage Choice, the introduction of the fact sheets are a positive step but “only address one part of the home loan comparison process”. 
“While they do help borrowers assess the cost of a specific home loan product in comparison to others, they do not present a comprehensive comparison of the home loan's features such as the availability of a redraw facility, an offset account, etc. and the impact these may or may not have on the total cost of the loan,” Williamson says. 
“They also do not go to the extent of demystify specific loan types (such as interest only versus principal and interest, line of credit, etc.).”
Mortgage Choice brokers will provide lenders' key facts sheets to borrowers on request. 
“When choosing a loan it is important that borrowers compare all aspects of a home loan including the interest rate, any upfront, ongoing and exit fees, the availability of loan features and the impact of these on the total cost of the loan, the accessibility of the lender (e.g. do they have online banking, local ATMs, etc.) and the lender’s service quality,” Williamson says. 
Example (click to enlarge):
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/keyfactbankwest.gif"><img src="/images/stories/keyfactbankwestthumb.gif"></a>
 
Damian Smith, CEO of comparison website RateCity.com.au, says the fact sheets will make it easier for borrowers to “compare apples with apples before they apply for a home loan”. 
"Anything that simplifies the lending process and encourages greater transparency in the home loans market is a good thing for competition. 
"The fact sheets will be standardised so lenders will be required to provide borrowers with information in the same way, making the comparison process easier. This will help first-time borrowers in particular compare loans side by side, and give them just a little more bargaining power – which is a good thing," he says.
The initiative has the support of consumer group Choice, with its head of campaigns Matt Levey calling the introduction of home loan key fact sheets “a welcome step towards transparency, allowing consumers to more easily compare mortgage products on their merits”.
“Choice has campaigned strongly for reforms to increase competition in the banking sector, and one of the most powerful ways to do this is to make consumers more mobile, able to seek out better deals and move their money” says Levey.
“Key fact sheets are part of this equation, along with measures like the ban on mortgage exit fees and steps to improve confidence in smaller lenders.”
Levey says they are part of the solution to overcome the perception revealed in Choice consumer surveys that there is too much hassle and little benefit in switching mortgages, “by making the switching process more straightforward, and making it easier to compare different deals in the market place on similar terms”.
“Experience tells us that those consumers who do switch often find the process easier than they expected, and that those who shop around often find better deals,” he says.
Though not obligated to do so, mortgage franchise RAMS – part of Westpac –will publish key fact sheets on its website. 
“This will enable consumers to compare the strength of the RAMS product set against the major banks products,” a spokesperson for the franchise says. 
Australia biggest mortgage lender, the Commonwealth Bank, is backing the scheme with a spokesperson saying it is “important to provide customers with the information they need to make informed financial services decisions”. 
For more information on the new home loan fact sheets visit <a target="_blank" href="https://www.bankingreforms.gov.au/content/Content.aspx?doc=homeloan.htm">the government’s website</a>. 
 
 
 
 
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Home loan key fact sheets just a good starting point for borrowers: Mortgage Choice

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Many people can’t afford to buy a new home until they sell their current one. Selling and buying at the same time has its advantages yet can also be stressful, as you not only need to successfully sell but also locate and successfully purchase. 
From a cashflow perspective it can be difficult, as you need a deposit for the home that you are buying. While some people apply for a deposit bond to bridge the gap, there is also the option of applying for an early release of the deposit from the home you have just sold. 
The law in Victoria, specifically section 27 of the Sale of Land Act, allows the seller to apply for release of the deposit before the settlement date. 
It outlines a number of conditions and a mechanism for the release, including the critical condition: the purchaser must be pleased to release it. 
If you believe that you are able to meet the criteria, you need to issue a notice that contains specific information and asks the buyer of the property to allow the release of the deposit monies. They are held in trust by your estate agent or solicitor. 
While this may sound simple, it can also take some time; in fact, it may be no quicker than waiting on the settlement date of a short settlement period. 
It is important to also note that if early release is agreed to, your agent may deduct his or her fees at this time.
Enzo Raimondo is CEO of the <a target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a>.
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Vendors can sometimes release a deposit early

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Mortgage debt is by far the largest component of debt in Australia today—government debt, which is the focus of political debate, is trivial by comparison (a quick caveat though—finance sector debt may be larger again than mortgage debt, if <a href="https://www.zerohedge.com/news/psssst-france-here-why-you-may-want-cool-it-britain-bashing-uks-950-debt-gdp" target="_blank">this claim</a>, sourced from Morgan Stanley, is accurate— since it shows Australia’s aggregate private debt ratio as almost equal to the USA’s).
<img width="470px" src="/images/stories/keenjan1.png">
The household debt to income ratio may have topped out now, after growing fivefold in the last two decades. Figure 2 shows the ratio of household debt to disposable income, which peaked at 149% of disposable income back in late 2008. Despite the enticement into debt given by the <a href="https://www.debtdeflation.com/blogs/2009/03/22/fhb-boost-is-australias-sub-prime-lite/" target="_blank">first-home vendor's boost</a>, aggregate household debt never exceeded this pre-boost peak as a percentage of disposable income, since the fall in personal debt outweighed the rise in mortgage debt.
<img width="470px" src="/images/stories/keenjan2.png">
This huge rise in household debt compared to income has more than offset the falls in interest rates that occurred since the 1990s. The perennial argument from property <a href="https://en.wiktionary.org/wiki/spruiker" target="_blank">spruikers</a> that the rise in debt has simply been a rational reaction to the fall in interest rates is pure bunkum—especially when you take a less-than-myopic look at the data, and consider mortgage rates back in the 1960s, which were well below today’s rates (see Figure 3). <img width="470px" src="/images/stories/keenjan3.png">
This comparison stands even when inflation is taken into account. The average real mortgage rate in the relatively low-inflation 1960s was 3% — a full percentage point below the low inflation level of the last decade (see Figure 4). Why wasn’t mortgage debt higher back then, if the increase since the 1990s was a “rational response to lower interest rates”?
<img src="/images/stories/keenjan4.png">
I date the Australian house price bubble from 1988, when it was spiked by the reintroduction of the first home owner's scheme by the Hawke government in reaction to the share market crash of 1987 (the scheme works by encouraging would-be buyers to take on mortgage debt, and then hand the leveraged sum over to the vendors—which is why I prefer to call it the <a href="https://www.debtdeflation.com/blogs/2011/09/09/hand-of-gov-report-on-the-australian-housing-bubble/" target="_blank">first-home vendors scheme</a> [FHVS]). It then really took off in 2001, when Howard doubled the grant in response to a feared recession (see Figure 5, which combines <a href="https://www.debtdeflation.com/blogs/2009/04/06/steve-keens-debtwatch-no-33-april-2009-lies-damned-lies-and-housing-statistics/" target="_blank">Nigel Stapledon’s long-term index</a>with the ABS data from 1976 on; “Hawke” and “Howard” respectively mark the re-introduction of the grant in 1988 and Howard’s doubling of it in 2001), though it was already running hot again from 1997 when — without any additional help from the government — the financial sector had enticed Australians to go from a 50% to a 70% mortgage debt to GDP ratio (at a time of rising interest rates). <img width="470px" src="/images/stories/keenjan5.png">
The combination of higher rates and much higher debt levels means that paying the mortgage is taking far more out of the family purse than it used to do back in the pre-housing bubble years. Readily available data from the RBA shows that interest payments on household debt are five times as high as they were back in the 1970s.
The RBA data for mortgage debt only start in 1976; in the spirit of countering spruiker myopia, I’ve estimated pre-1976 mortgage debt as 30% of total debt, from the <a href="https://www.rba.gov.au/statistics/frequency/occ-paper-8">RBA’s long-term data</a> (the average from 1977-1980 was 31%). Interest payments on mortgage debt are as much as 10 times as high now as in the 1960s (see Figure 6).
<img width="470px" src="/images/stories/keenjan6.png">
Spruikers also prefer to ignore the fact that debt has to be repaid, and focus on the interest payments alone. In the past mortgages been paid off after five to seven years via the resale of the property, but that will be a lot more difficult in future as house prices fall. Figure 7 shows household debt service as a percentage of disposable income with mortgage debt being repaid over 25 years and personal debt over 10. On this basis, there has been a twelve-fold increase in the proportion of family income that has to be devoted to servicing mortgages since 1970. Even compared to the high-interest days of 1990, mortgage debt service is now 2.5 times as burdensome.
<img src="/images/stories/keenjan7.png">
There is clearly no capacity for debt service to take a larger slice of the family income pie, which in turn is taking the wind out of the housing market. Spruikers happily make a “supply and demand” argument about why house prices have risen, but obsess about regulation-impaired supply and equate demand with population growth. In fact, demand for housing doesn’t come from population growth: it comes from the growth in the number and value of mortgages. That growth rate in fact peaked back in 2004, and it has been trending down ever since: the first-home vendor's boost merely delayed this process without stopping it.
<img width="470px" src="/images/stories/keenjan8.png">
That in turn is the main factor driving house prices down — just as rising mortgage debt drove prices up, falling mortgage debt is driving them down. As I’ve explained elsewhere, the causal factor behind asset prices is not just rising but acceleratingdebt. This is an extension of my basic proposition that macroeconomic analysis must include the role of credit — which is ignored by conventional neoclassical economics. In a credit-driven economy, aggregate demand is the sum of incomes plus the change in debt, and this monetary demand is expended buying commodities and claims on existing assets — basically, shares and property.
Part of demand for housing thus comes from income — the focus of the property spruikers — and part comes from the increase in mortgage debt —which they ignore.
<img width="470px" src="/images/stories/keenjan9.png">
For prices to rise, demand must also be rising, and this requires not merely rising mortgage debt but accelerating debt. Of course variations in income (and variations in supply, too) can play a role, but in the overwhelmingly speculative, overly-leveraged market that Australian housing has become, accelerating mortgage debt trumps the lot (see Figure 10).
<img width="470px" src="/images/stories/keenjan10.png">
This is especially so since such a large percentage of buyers are so-called investors — "so-called” because a better description is speculators. Actual investors aim to make a profit out of the income flow generated by an investment. Australia’s property “investors” instead lose money on their rental income, and hope to recoup the loss as capital gains via a later sale. With the days of house prices rising faster than incomes well and truly over, this percentage of the market could drop back to pre-1990s levels.
<img width="470px" src="/images/stories/keenjan11.png">
Both sources of demand are now falling strongly from the artificial boost given by Rudd’s spin of the FHVS sauce bottle.
<img width="470px" src="/images/stories/keenjan12.png">
One of the world’s last and greatest house price bubbles is thus finally ending.
<img width="470px" src="/images/stories/keenjan13.png">
Steve Keen is Associate Professor of Economics and Finance at the University of Western Sydney and author of <a href="https://debunkingeconomics.com/" target="_blank">Debunking Economics</a> and the blog <a style="text-decoration: none; color: #287bce; background-color: transparent; margin-top: 3px; margin-right: 0px; margin-bottom: 3px; margin-left: 0px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; line-height: 14px; padding: 0px;" href="https://www.debtdeflation.com/blogs/" class="=article" target="_blank">Debtwatch</a>.
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