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

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I kicked off 2012 with a tweet where I asked followers what they thought the biggest issues would be in the new year. The first response was mortgage interest rates and the domination of the big banks.
It's an interesting concept and one that I think Australians have been sold short on. What do I mean by this? Simply that the solution to the problem of high mortgage rates and mortgage domination by a few players is almost entirely the result of borrowers' choice.
There is an interesting situation in Australia right now where the big four trading banks write more than 90% of all new mortgages. That's a highly dominant position by world standards. You'd expect that the reason four banks write nine out of 10 mortgages is that they offer lower rates – something you'd expect given the scale that such market dominance affords.
But the big four are not cheaper: Canstar's RateCity comparison tables were posted on January 3, and I was having a look, seeing who was offering what right at the start of the new year. I was struck by how much more expensive the banks were: their standard variable rate mortgages were bunched together, from NAB's 7.22% to Westpac's 7.36%, with Commonwealth's 7.31% and ANZ's 7.3% in the middle. Yet there were more than 20 mortgage lenders with standard available rates about one percentage point cheaper than the big banks. These are credit unions and non-bank lenders, mostly.
We also know that the government changed the law last year so that Australians could switch from their current mortgage to another one without paying penalties – the exit fee ban. And we also know that because of the internet and the rise of mortgage brokers, there's never been as much information available as there is now.
From my perspective it's clear that mortgage interest rates are high for 90% of Australians because they choose to have it this way. I experienced this a decade ago when I was the executive chairman of Wizard Home Loans. Together with other non-bank lenders – Aussie and RAMS – we offered mortgages with better prices, service and products. By 2003, non-bank lenders had about 15% of the mortgage market and banks had halved their mortgage margins. Now? Non-banks have 1% of the mortgage market and their interest rates are much lower than the bank competition.
The answer 10 years ago was the same as it is today. If borrowers want the best deal for themselves they have to exercise their right to choose.
That's what makes a vibrant free market: providers making their best offer, and consumers making a choice.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
This article originally appeared on <a href="https://neoskosmos.com/news/en/Peoples-choice" target="_blank">Neokosmos.com</a>
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Borrowers must exercise their freedom of choice: Mark Bouris

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No one is more despised by Melbourne's property tycoons than Bill Oliver. In Victoria's $25 billion construction game, the stubbled Scotsman can shut down rogue building sites in a flash and, builders say, hold their projects to ransom.
Each working day in bleak city, Oliver guides his 30,000-strong army of Construction Forestry Mining and Energy Union workers towards the industrial promised land -- a world of bolstered wages, expanded rights and far-reaching political influence. While his mainstream union rivals seem content to take the low road, Oliver and crew are always on hand to extract cash and conditions from tight-fisted employers who'd really prefer a new Lexus.
Just look at the enterprise agreement Oliver negotiated in 2007 for those working on the controversial, and still unfinished, $24 billion Wonthaggi desalination plant. It, more than any other wage deal in the last 20 years, signalled the return of militant union power to Victoria.
"Industrially, there's no one that can match Bill," one senior Victorian Labor MP says. "He's the master of his domain and all the big decisions go through him."
Already dominant on the thousands of construction sites scattered across Melbourne's sprawl, the desal deal showed how the union's aggressive tactics could still prevail on projects of state importance, even while the broader labour movement suffered massive membership declines.
The mere mention of Bill Oliver's name sends right wing critics into fits of apoplexy. They contrast the "20%" lower cost of building a project like the EastLink toll road (using labour provided by Cesar Melhem's more moderate Australian Workers Union) with the CFMEU's strong-arm tactics on sites like the Westgate Bridge, Royal Children's Hospital and Epping Market.
But as Oliver explains, he regularly cops criticism "for getting good deals for our members ... but that's our job. I am not paid by the business lobby or [Ted] Baillieu. I am paid by members of this union, and it's my job to represent their interests and get the best deal I can."
And he denies he is personally powerful: "No! The only power I have is because of the strength of the members, the dedication of the delegates and the union as a whole. Any power I have is not about me ... but about the collective strength. These may seem old fashioned concepts, but they are still true, nevertheless. That's the whole idea of a union: strength in numbers."
Regular sparring partner Brian Welch of the Master Builders Association begs to differ. He says under Oliver's reign building costs in Victoria are once again 30% higher than other states, with multi-million dollar fines levelled by the ABCC failing to make an impact.
Welch -- who reluctantly signed off on wage increases worth 20% over four years last June -- says simply: "Ignore Oliver at your peril".
"Does that mean that he's powerful? Well, any building site can be affected significantly and as a consequence that makes them an influence that you would not wish to ignore," Welch says. "Bill's the head of that union. If he says that he's upset with a particular builder or specialist contractor then they're very upset because he holds their business in his hands."
ALP affiliation has also delivered the CFMEU leverage, with Oliver throwing his weight around and often threatening to vote with the party's rebel Right to exert preselection pressure on the dominant Socialist Left and forces pledged to Stephen Conroy and Bill Shorten.
(In 2009, in the wake of deal cut between those two outfits, Oliver was allegedly a player in a side agreement that delivered to his members, rather than his rivals, thousands of coveted jobs on the desal plant in exchange for his preselection heft. The MPs and unions involved strenuously denied any such agreement was ever reached).
The bearded enforcer says spats with less aggressive unions like Melhem's AWU are unavoidable, especially when they try to undercut his wages and conditions. "Unlike some other unions in the industry, it's no secret that we get better deals," he says. "Despite rumours that it's our charm and good looks that win people over, the truth is that we fight hard for our members."
He's certainly not shy about countering continual media criticism, issuing this fiery retort late last year to a run of Herald Sun hatchets that tried to implicate the union in AFL ticket scams and other nefarious behaviour.
It's been a familiar theme ever since the days in the early 1970s when Oliver started working as a shipwright and shop steward on Glasgow's Charlie Connell shipyards at age 20. Halfway through completing his papers to travel to Australia, a group of radical workers, led by Jimmy Reid, occupied the Upper Clyde Shipbuilders, thwarting the Tory government's plans to shut them down. After the struggle, Oliver's papers came through and he ended up in Melbourne, working again as a shipwright and carpenter before joining the Building Workers Industrial Union as a full-time organiser in 1986.
He was elevated to the CFMEU's leadership in 1993 as assistant secretary to Martin Kingham following the BWIU's merger with the Builders Labourers Federation. He played a key role in the 1998 waterfront dispute and leading thousands of unionists to testify before the Cole Royal Commission and succeeded Kingham when his comrade transferred to the CFMEU's national office in 2009.
His greatest triumphs have been felt inside Fair Work. Last year's landmark four-year enterprise deal delivered 20% wage increases, double overtime pay and a hefty $750 a week living away from home allowance.
The self-described "principled, practical, tenacious and tough" operator says there is no silver bullet and definitely nothing illegal in his robust approach to vigorous employer relations. Stories of bikies and bad behaviour are legion but Oliver says he's basically just a figurehead for years of collective struggle.
"We are continuing to build on a tradition of militancy in this union that has been part of the Victorian industrial scene for the last 40 years. Our members have struggled long and hard to make a dangerous and dirty industry safe and rewarding for them...Our industrial strength has not happened overnight."
And if you're a commercial player in the building industry it won't be disappearing for a while either.
This article originally appeared on <a target="_blank" href="https://www.thepowerindex.com.au/">The Power Index</a>.
 
 
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Victorian builders accuse Bill Oliver of holding them to ransom

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Building approvals rose 8.4% in November on a seasonally adjusted basis, following a fall of 10% in the previous month, according to the latest ABS figures.
Despite the strong turnaround in November, approvals remain almost 19% below the level reached a year earlier.
In total 11,424 dwelling were approved for construction in November on a seasonally adjusted basis, with the number of houses approved for construction rising 4.8% to 7,469 while the more volatile units sector increased by 17.2% to 3,762 dwellings.
Westpac called the November result “better than expected, though still only a partial, rebound in November”.
“The November partial rebound … still leaves a strong trend decline in place, but the picture is considerably better than that in October. 
“That detail shows solid rebounds in key areas that were of concern last month, including: private sector houses, +4.8%, retracing two thirds of the previous month's decline; and Victoria up a staggering 40% for the month basically reversing all of the slump over the previous two months. 
“The bounce in Queensland though was less pronounced with a 6.6% monthly rise only recouping a little of the 30% slump over the previous two months. 
“WA also saw a sharp 16.9% drop although this looks unlikely to mark the start of renewed weakness with the state recording accelerating mining-led growth a turnaround in population growth and tightening housing supply. 
“NSW posted a 1.9% monthly rise but had been much more resilient in previous months,” Westpac says.
Earlier this week, the <a href="https://www.propertyobserver.com.au/residential/new-home-sales-rise-6.8-in-november-as-interest-rates-decline-but-experts-warn-still-more-work-to-do-in-2012/2012010952984" target="_blank">HIA reported a 6.8% increase in new home sales</a> following the November rate cut, but both it and <a href="https://www.propertyobserver.com.au/residential/builders-gloomy-about-year-ahead-mba/2012010952992" target="_blank">Master Builders Australia say the 2012 outlook is poor </a>and are urging further rate cuts and government stimulus measures to help residential construction.
 
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Units lead 8.4% jump in building approvals in November: ABS

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Despite much public interest in, and debate around, the major banks’ purported “gouging” and taxpayer-guaranteed status, some very fundamental questions remain, rather bizarrely, unanswered.
These include: what exactly is the major banks’ “cost of funds” that they regularly complain about; how has their overall cost of funds changed (i.e., has it been rising or falling); and if the cost of funds is so obviously important to the banks, and a key determinant of what they can and cannot do with mortgage rates, why don't they simply publish a cost of funds index that tracks any change in it over time?
Yet even a cost of funds index would be inadequate, since it is only one input into the profitability, and overall rates of return, that the major banks target. A more informative benchmark is the major banks’ “net interest margin”, which simply measures the net difference between the interest rates the banks pay on the money they borrow from their funders (e.g., depositors like you and me) and the interest rates they receive on their loans to businesses, households, and SMEs.
By looking at the change in the major banks’ net interest margins, one can get an indication of the profitability of their business activities. Realised profits will, however, be influenced by three further factors: (1) the volume of loans that they write or “credit growth”, which has been in structural decline since the GFC; (2) the extra fees and charges they levy on customers, which yield the banks profits above and beyond their net interest margin; and (3) the banks’ fixed and variable operating costs, the most significant of which is the amount they choose to pay their executives. After accounting for these variables and a few other things, one can get close to calculating the major banks’ “return on equity”, which is a measure of their shareholder earnings.
Regular readers will know that I have been critical of major bank remuneration levels for senior executives, and the banks’ proclivity for hiring former regulators (e.g., Treasury secretaries and RBA governors), which, I have argued, creates dysfunctional long-term incentives between the public and private spheres. Or, in the words of MIT professor, Simon Johnson, a financial “oligarchy”.
According to CBA’s 2011 Remuneration Report, the average total compensation of the top 15 executives was an incredible $4.5 million (the median was only slightly lower). Excluding CEO Ralph Norris, the average compensation was still $4.2 million (see table below).
<img src="/images/stories/cbachart.gif">
These numbers highlight the absurdity of attacks of the RBA governor’s comparatively paltry $1 million pay, especially given he is responsible for overseeing the entire banking system (in concert with APRA), and, more pointedly, bailing out Australian banks facing funding crises via the RBA’s liquidity facilities. And this all in addition to the RBA’s first-order monetary policy functions.
Reasonable criticisms of major bank pay can also be made on the basis that they are effectively quasi-public (i.e., non-private) institutions that implicitly and explicitly rely very heavily on taxpayer subsidies in the form of free taxpayer guarantees of bank deposits, subsidised taxpayer guarantees of bank debts, and the RBA’s many and varied forms of low-cost liquidity support. Ask yourself: what other private companies get the benefit of all this taxpayer largesse?
According to the RBA, the major banks’ average net interest margin (or NIM) was 2.4% per annum as at September 2011. But this is merely a single point estimate.  How does this margin compare with its pre-GFC levels? In the chart below I have illustrated UBS’s estimate of the major banks’ average net interest margin since the beginning of 2004.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/jan102.gif"><img src="/images/stories/jan102thumb.gif"></a>
We can draw two insights from this analysis. The first is that the major banks’ net interest margins have been steadily increasing since the low of 2.06% reached during the first half of 2008. The second is that notwithstanding the banks’ much higher cost of funds and the introduction of a raft of taxpayer support schemes, the margins they are earning today are as good as they have been since the second half of 2004.
As noted above, net interest margins are only one part of the banks’ complex profitability picture. Several years ago I censured the RBA for focussing on this proxy to the neglect of more complete benchmarks, such as return on equity (RoE). The RBA now regularly reports and parses bank RoEs in its bi-annual Financial Stability Review.
So how has bank profitability varied over time? And has there been a decline in bank returns post-GFC in recognition of their lower risks as a function of (1) higher internal capital requirements (i.e., less leverage) and (2) the fact that as explicitly taxpayer-backed institutions there is demonstrably less of a need to produce ultra-high growth in order to raise capital?
In my final chart I have depicted UBS’s estimate of the average major bank return on equity (profit-weighted) since 1993. Remarkably, the major banks were able to maintain solid double-digit RoEs during the global credit crisis experienced in 2007-09 (and since). Today, the average RoE remains a still very high 17%, and, abstracting away from some circa 20% spikes, is not materially different to the levels observed in the 10 to 15 years before the GFC. Indeed, this crisis was evidently a good one for Australian banks, since they were able to keep their returns way above the lows observed during the 1991 recession.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/jan103.gif"><img src="/images/stories/jan103thumb.gif"></a>
We have, therefore, yet to see a structural decline in RoEs commensurate with the much lower risk profile of these utilities. And there can be little debate about the latter claim. The world’s largest rating agency, Standard &amp; Poor’s, concluded in a review of the banks in <a href="https://www.propertyobserver.com.au/economy/major-banks-play-down-sp-ratings-downgrade/2011120252649">December that their credit rating is two notches higher, and hence their cost of funds lower</a>, because of the assumption that they are government guaranteed. Specifically, S&amp;P remarked, “Our counterparty credit rating on Commonwealth Bank is two notches higher than the [stand-alone credit rating], reflecting our view of a high likelihood of extraordinary government support in a crisis.”
A closing thought is that the major banks have ample room to absorb higher funding costs. That is, they should be prepared to deliver shareholders lower returns, and operate on the basis of somewhat thinner net interest margins, given the advent of public guarantees of their livelihood and solvency has unambiguously improved shareholders’ risk-return trade-off.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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Lower risks mean lower bank returns: Christopher Joye

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New valuations have been released for the 60,422 properties in the Sutherland local government area.
They show the total land value of the shire – residential, commercial and industrial –was $37 billion, a 12% increase on the 2008 valuation, which had a $33 billion determination.
There was an annual increase in the shire’s residential median land value of 5.8% in the latest year.
The value of residential land had generally shown a moderate increase over the three-year period, with the exception of waterfront properties, which had shown little to no movement during the period, NSW Valuer-General Philip Western notes.
The value of commercial and industrial land had generally shown a slight increase since July 2008, he says.
The notice of valuation showing the land value of a property as at July 1, 2011 will be used by the council in the determination of rates. The valuations are also used to determine how much land tax will be paid on investment properties. 
“Real estate analysis in the Sutherland LGA has been comprehensive during the course of the 2011 valuation program, with 455 residential, 114 commercial, 98 industrial sales analysed,” Western says. 
Typical residential land values were:
<ul>
<li>664 square metres at Bernie Street, Bundeena valued at $440,000 </li>
<li>552 square metres at Bridges Street, Kurnell valued at $390,000 </li>
<li>552 square metres at Gardenia Street, Cronulla valued at $980,000 </li>
<li>556 square metres at Havelock Avenue, Engadine valued at $408,000 </li>
<li>594 square metres at Lynch Avenue, Caringbah South valued at $624,000 </li>
<li>782 square metres at Marsden Road, Barden Ridge valued at $431,000 </li>
<li>673 square metres at Prior Close, Illawong valued at $470,000 </li>
<li>670 square metres at Rickard Road, Oyster Bay valued at $510,000. </li>
</ul>
Typical commercial land values were:
<ul>
<li>186 square metres at Cronulla Street, Cronulla valued at $1,350,000 </li>
<li>221 square metres at Kingsway, Caringbah valued at $630,000 </li>
<li>240 square metres at Kingsway, Miranda valued at $635,000 </li>
<li>253 square metres at Loftus Avenue, Loftus valued at $275,000 </li>
<li>278 square metres at Old Princes Highway, Engadine valued at $350,000 </li>
<li>139 square metres at Old Princes Highway, Sutherland valued at $450,000.</li>
</ul>
Typical industrial land values were:
<ul>
<li>2,206 square metres at Bath Road, Kirrawee valued at $1,400,000 </li>
<li>2,210 square metres at Parraweena Road, Caringbah valued at $1,500,000 </li>
<li>1.23 hectares at Parraweena Road, Miranda valued at $5,200,000 </li>
<li>1,022 square metres at Taren Point Road, Caringbah valued at $1,000,000 </li>
<li>44.6 hectares at Sir Joseph Banks Drive, Kurnell valued at $30,000,000.</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" target="_blank">Land and Property Information website</a>.
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Sutherland Shire values show 12% growth over past three years, but waterfront values wane

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Mortgage franchise RAMS is looking to entice new borrowers in the slow month of January by cutting application fees on all its mortgage products.
“Apply for a RAMS Home Loan by 31 January 2012 and we’ll drop the application fee. Yes, we’re offering a $0 home loan application fee across our entire range of new loans – saving you $$$s!” says a message on the RAMS website.
The lender is particularly strong among first-home buyers.
RAMS, which is owned by Westpac, passed on both the November and December rate cuts in full.
The lender offers a standard variable rate of 7.18%, undercutting all the major banks.
NAB is the cheapest major lender, with a rate of 7.22%
Westpac’s standard variable rate is 7.36%.
 
 
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RAMS eliminates mortgage application fees in January

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After three weeks of zero tasking, it is finally time to kick off the new year.
We’d like to wish you a very happy 2012 and to share with you some of the stats from the Matusik Missive throughout 2011.
You may already have some sense that the Louvre Museum has 8.5 million visitors per year.  But what you won’t know is that the <a target="_blank" href="https://matusikmissive.wordpress.com/">Matusik Missive</a> was viewed about 89,000 times in 2011, which means that, if it were an exhibit in the Louvre, it would take about four days for that many people to see it.
In 2011, there were 68 new posts, bringing our archived collection to 149.
The busiest day of the year was October 19th with 2,196 views of <a target="_blank" href="https://www.propertyobserver.com.au/residential/overseas-buyers-must-be-encouraged-to-help-our-housing-market/2011101851983">this post</a>.
The top five Missives for the year:
1.  <a target="_blank" href="https://www.propertyobserver.com.au/residential/overseas-buyers-must-be-encouraged-to-help-our-housing-market/2011101851983">Overseas buyers must be encouraged to help our housing market</a>
2.  <a target="_blank" href="https://www.propertyobserver.com.au/developments/a-tale-of-two-queensland-buildings-an-investment-property-s-worth-should-be-determined-by-income/2011111552374">A tale of two Queensland buildings: An investment property's worth should be determined by income</a>
3.  <a target="_blank" href="https://www.propertyobserver.com.au/landlords/investors-should-consider-buying-nras-properties-michael-matusik/2011112252487">Investors should consider buying NRAS properties</a>
4.  <a target="_blank" href="https://matusikmissive.wordpress.com/2011/03/09/the-most-overvalued-in-the-world/">The most overvalued in the world!</a>
5.  <a target="_blank" href="https://matusikmissive.wordpress.com/2011/07/13/the-black-knight/">The Black Knight</a>
Our readers came from near and far.  Most, of course, were from Australia, followed by the United States and New Zealand.
But 2011 also saw readers from:
Asia – Singapore, Hong Kong, Qatar, Malaysia;
The Middle East – United Arab Emirates;
Europe – The United Kingdom, Germany, Russia, Poland and Italy;
Africa – South Africa,Tanzania, Sudan and Algeria;
North America – Canada, Cayman Islands, Mexico and the British Virgin Islands; and
South America – Brazil, Chile, Paraguay and Ecuador.
Proud of us!  We are chuffed – being so bleeding edge and all.  But we must admit that until yesterday, we didn’t know that the British Virgin Islands even existed.
Thanks for following the Matusik Missive.  Please feel free to share it with your friends and colleagues – or send us their contact email addresses and we’ll ask them if they’d like to be added to the Missive list.
We welcome your comments – always!  Just keep them clean (well, somewhat) and be honest.
We’d like to think we can make a difference – and with your readership and support, we will.
Oh… and before we leave you, don’t forget about our <a target="_blank" href="https://www.propertyobserver.com.au/residential/how-to-use-your-second-home-to-secure-a-dream-vacation-michael-matusik/2011120452664">3rd Home offer</a>.  It still applies, but not for much longer.
Now back to our work spasm.
PS Zero-tasking means doing nothing.  Bleeding edge is something even more cutting edge than cutting edge and a work spasm is the productive but short period of time after a holiday.  Two days back today and bring on Easter and quick smart!
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
 
 
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A look back over 2011's most successful columns

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Builders surveyed by Master Builders Australia expect overall residential and commercial construction activ­ity to be lower over the next six months, <a href="https://www.propertyobserver.com.au/residential/new-housing-outlook-bleak-for-2012-hia/2012010852981" target="_blank">in line with a bleak forecast released earlier by the Housing Industry Association</a>.
In MBA’s December quarter survey, builder sentiment sits below the neutral or satisfactory 50 mark with both residential and non-residential sectors experiencing poor conditions despite some recent stabilisation following the November rate cut. 
Sentiment is particularly poor for residential construction with the index for current conditions falling again in the December quarter to 36.3 close to levels reached during the GFC. The index picked up in the December quarter but remains at a level indicating that builders expect residential building conditions to decline over the next six months. 
In the non-residential sector, the index measuring cur­rent conditions registered 38.1 in the December quarter, down on the previous reading and well below the satisfactory level. Non-residential builders face the prospect of falling activity levels with the conclusion of government stimulus programs. 
Sentiment is clearly being influenced by declining profit levels with overall industry profitability also sitting below the 50 mark, not far from lows reached during the GFC.
<img src="/images/stories/mbajan10.gif">
Source: Master Builders Australia
“Builder sentiment remains gloomy, not helped by disappointing sales and display centre traffic/enquiries. Builders are not seeing any pick up in private sector demand to replace government economic stimulus programs,” MBA reports. 
As a consequence of a drop in activity and profits, builders surveyed by MBA say that they may need to reduce levels of employees and subcontractors in the period ahead. 
In line with <a href="https://www.propertyobserver.com.au/residential/new-home-sales-rise-6.8-in-november-as-interest-rates-decline-but-experts-warn-still-more-work-to-do-in-2012/2012010952984" target="_blank">figures from the HIA showing new home sales rose by 6.8% in November</a>, the December MBA survey, which took into account the November rate cut, does reveal “some early signs of improvement in a number of the indicators, an early indi­cation of a possible turnaround in sentiment related to the November rate cut”, but overall the picture is downbeat. 
Responding the December quarter survey results, MBA chief economist Peter Jones says the RBA should consider further rate cuts to make sure a private sector recovery is able to gain momentum.
“Builder sentiment remains gloomy with the latest survey revealing poor profitability as well as disappointing sales and display centre traffic/enquiries,” Jones says.
“The building industry is struggling, with little evidence of the pick-up in private sector demand needed to fill the gap left as government economic stimulus programs end.”
“The building and construction industry has lost the cushioning effect of government stimulus programs whilst the credit squeeze and other regulatory constraints continue to affect business operating conditions,” Jones says.
“The national survey confirms how weak conditions have become, with the December quarter revealing significant excess capacity in the industry as well as evidence that builders are experiencing very little difficulty finding labour resources.”
“The latest readings do not auger well for activity in the building and construction industry over the next six months and with profits under pressure it is little surprise that builders are indicating they may reduce levels of employees and subcontractors in the period ahead,” he says.
 
 
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Builders gloomy about year ahead: MBA

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The stranglehold the major banks have had on mortgage lending since the onset of the GFC appears to be loosening, with AFG reporting that second-tier lenders accounted for nearly a quarter of all loans arranged by its mortgage brokers in December.
AFG’s December Mortgage Index shows that non-major bank share of mortgages jumped from an average share of 19.1% over the past 12 months to 24.39% in the last month of 2011.
This is the first time since the third quarter of 2007 – when the sub-prime mortgage crisis began brewing – that major lenders have not written close to 80% of more of AFG’s mortgage lending business.
December 2011 was also the biggest increase in the second-tier’s share of the mortgage market over the past 12 months and significant since AFG brokers write around one in ten mortgages in Australia.
According to November banking statistics from APRA, ING remains the biggest non-major bank lender (excluding brands owned by the major banks) with a loan book of just over $37 billion, followed by Suncorp ($29 billion), Bendigo and Adelaide Bank ($21.6 billion) and Bank of Queensland ($21.3 billion).
Non-major lenders were particurlarly popular with those refinancing, with their share of this sector rising from 21.0% to 28.8% during the month – an increase of 37%.
<img src="/images/stories/buyertype.gif">
 Source: AFG
In the past, both the refinancing and investment home loan markets have been tightly held by the majors, with first-home buyers showing the greatest willingness to try non-majors. But the December figures reveal a significant change, with non-major market share rising among refinancers to around the same level as among first-home buyers, 28%.
AFG’s inaugural first Competition Index revealed that non-major lenders are competing strongly in niche markets, with Suncorp writing an impressive 14.9% of all first-home buyer loans in October, nearly double that of NAB (7.7%) and higher than ANZ (12.5%).
Suncorp’s share of the first-home buyer market was almost triple its overall market share of 5.1% captured in October, up from just 3.1% in November 2010.
AFG general manager of sales and operations Mark Hewitt says the company is being careful not to read too much into any one month’s set of figures, but says “there’s no question that the market is becoming increasingly competitive and that non-majors did particularly well last month”. 
“This trend will help keep rates competitive as we move into 2012. If the expected rate reductions come through over the next quarter, we could see a very different lending environment, supporting the recovery of property markets across Australia,” he says. 
AFG brokers also wrote an increasing number of fixed-rate loans in December, with the proportion of fixed rate mortgages rising from 17.2% to 19.2% – but below the 24% fixed-rate market share achieved Mortgage Choice franchisees. 
In line with seasonal falls, mortgage sales volumes declined month on month by 26% in December, which together with January are quieter months for the industry. 
But sales volumes were up by 5.4% nationally compared with December 2010, with the strongest growth (comparing December 2011 with December 2010) occurring in South Australia (44.8%), followed NSW (up 15.6%) and Queensland (7.7%).  Mortgage lending in Western Australia contracted by 3.9% and in Victoria by 8.9%.
 
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Major banks' mortgage dominance loosening as smaller lenders get a look-in: AFG

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Consecutive interest rate cuts have boosted the property sector with new figures from the Housing Industry Association showing new home sales rose by 6.8% in November, in a second consecutive monthly rise in sales. 
However, the result comes alongside a pessimistic result from the Australian Industry Group-HIA performance of construction index, which showed that although the pace of activity continued to improve, industry activity still contracted.
HIA economist Harley Dale says the improvement is directly tied to last year's consecutive interest rate cuts.
"The improvement is being driven by an increase in detached house sales, with the multi-unit market quite weak again."
"But this shows we've had two months of improvement, a modest rise in October and quite a healthy one in November."
The figures show detached sales rose by 0.9%, driven by sales in New South Wales and Victoria. Multi-unit sales, however, fell by 17%.
Detached sales rose by 22.8% in New South Wales, 11.6% in Victoria, 5.7% in Western Australia and 4.7% in Queensland. Sales fell by 11.3% in South Australia.
However, Dale points out this is coming from a low base – sales in September were at their lowest in several years, and the construction industry is still suffering. But he also says that despite the industry recovering from such a low base, the statistics are encouraging.
"The interest rates are what we're putting it down to. And really, if we hadn't had a recovery afterwards that would have been more surprising. We're encouraged that the first month of a rate cut we see an increase."
"The question remains, however, can this be sustained in the long-term? We still have a long way to go."
Economists suspect the RBA could even cut interest rates again next month. Dale says another rise in sales for December, coupled with a February interest rate cut, would start the year off on a good note.
"If we see that, we can start talking about the fact we're moving in the right direction. It's nice to have some better news to release at the start of the new year."
However, it isn't all good news. The performance of construction index increased by 1.4 points to 41 in December, still below the 50-point level separating expansion from contraction. Engineering construction rose to 51.3, but home building fell to 32.9.
Australian Industry Group director of public policy Peter Burn said in a statement the result shows how the multi-speed economy is still playing out, with the engineering sector speeding ahead thanks to the mining boom while residential construction lags behind.
"The increased pace of contraction in the house building sub-sector in December remains deeply concerning."
"Nevertheless, the easing of the pace of contraction in overall activity and in new orders across all sub-sectors, serve as glimmers of hope that 2012 may see a return to more balanced growth across the industry."
Dale says although he hopes for more sales in December, "the PCI is still looking very weak, and reinforces how much work there is left to do in 2012".
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
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