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]

Joel Robinson

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

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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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<table width="360" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="140">
Suburb
</td>
<td valign="bottom" nowrap width="151">
Average discount on vendor’s asking price for house sales
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3114
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">PARK ORCHARDS</a>
</td>
<td valign="bottom" nowrap width="151">
17.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3142
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">TOORAK</a>
</td>
<td valign="bottom" nowrap width="151">
13.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3168
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">CLAYTON</a>
</td>
<td valign="bottom" nowrap width="151">
12.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3148
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">CHADSTONE</a>
</td>
<td valign="bottom" nowrap width="151">
12%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3019
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">BRAYBROOK</a>
</td>
<td valign="bottom" nowrap width="151">
11.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3090
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">PLENTY</a>
</td>
<td valign="bottom" nowrap width="151">
11.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3130
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">BLACKBURN</a>
</td>
<td valign="bottom" nowrap width="151">
11.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3179
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">SCORESBY</a>
</td>
<td valign="bottom" nowrap width="151">
11.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3189
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">MOORABBIN</a>
</td>
<td valign="bottom" nowrap width="151">
11%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3188
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">HAMPTON</a>
</td>
<td valign="bottom" nowrap width="151">
11%
</td>
</tr>
</tbody></table>
Source: RP Data
</body></html>

cknowlton-QnEa6ntUYP

Top 10 Melbourne suburbs with the highest average discount for house prices: RP Data

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Building a house is possibly now almost a luxury in Perth whereas before the global financial crisis it was considered a necessity, according to Nathan King, a property valuation director at LMW Hegney.
In the three years before the GFC Perth was producing twice as many houses and green-title lots as strata-titled properties.
“Yet today the numbers within each category are now similar,” King notes.
“Perhaps the GFC and the affordability issues were the catalyst to greater market acceptance of strata-titled property.
“Maybe building a house today is a luxury whereas pre-GFC it was considered a necessity,” he suggests.
“Whatever the reason, I found it interesting, especially when we look at whether this is part of a new trend or is simply reflective of just the stage of the normal property cycle we are in currently.”
King says affordability is the buzzword and strata-titled properties not only tend to cater for the ageing baby boomers but can be among the most affordable housing options available.
“We also welcome some of the more creative and high-specification strata dwellings/cottage lots located in our suburbs to break up the homogenous suburbs.”
He suggests given WA’s urban sprawl and changing demographic, well-located strata properties had become the new aspirational properties to own for a larger segment of the market, reducing commuting times and providing in many circumstances a lifestyle on the doorstep.
“Investors tend to view, particularly strata-titled apartments, as higher income and lower capital growth investments.
“When we tie the trend of ageing population, affordable first homes, and investors wanting to make a profit, all together, there is some common ground.
“These downsize properties in a good location just need to be cheaper than the predominant family homes within the location in order to be desirable as people free up capital as well as time.
“This increasing demand will drive values, giving them a reason to increase if supply is limited.
“For an investor who can recognise these two pressure points in certain areas, they can take advantage of what is considered a trend rather than a cyclical phenomenon.
“It’s always worth being aware of market trends and even better if you can benefit from them,” King concludes.
 
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jchancellor-FAypfDUnLy

Buying a house becoming a luxury in Perth post-GFC

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Long-term strategic planning has always been one of my passions. To me, thinking ahead, being observant, asking questions and working out where the world is going, whether it be economically or socially, are basic, vital skills.
Take Dubai for instance. I first went there in the early 1990s and driving around at night, the first observation I made and the first question I asked myself was: “Why are only 20% of the lights on in all the residential buildings?” Talking to people who lived there, I soon discovered most residential properties were empty because they had been bought as second homes by wealthy people who lived in other parts of the Arab world in case of problems in their own countries, as a hedge against revolution, or as a place to keep a mistress. I left without wanting to invest in Dubai.
I have always believed that no one should ever invest in anything unless the fundamentals are right. If the people who pay the rent or borrow the money to purchase a property cannot afford to keep up repayments, then a property investment fails. After a global financial crisis, the concept of keeping vacant real estate as an inventory item, as the sheiks of Dubai did or as the Chinese and Russians tried to do, is doomed to end in tears.
In the mid-2000s, a decade after my first visit there, Dubai was obviously becoming really powerful as an international growth centre; a destination with a low tax rate that was attractive to wealthy Westerners, Russians, Indians and Middle Easterners alike. If you came from a country that was politically unstable, Dubai was potentially a future safe place to call home, and there were plenty of wealthy people from Iraq, Iran, Pakistan, Sri Lanka, Georgia – the list goes on and on – keen to purchase real estate there. Dubai was seen as a safe haven within the Middle East and appeared to be safe from terrorists. It had a world-class airline and had become a major global strategic and business hub. But as I watched Dubai grow and grow, I realised within a few years it was all a giant bubble that one day, sooner or later, was going to burst. And the reason it was always going to burst was because when you analysed what was going on, the situation in the early 2000s was no different from the early 1990s; the majority of residential properties were unoccupied. Whole projects were being purchased by absentee foreign owners, then locked up and left vacant. The outlandish boom in real estate prices could not possibly last as there was nowhere near enough demand either locally, or eventually internationally, to keep it going.
The model widely used in Dubai to create value was a pyramid scheme. The owners of a piece of land, who invariably had government connections, would design the largest, flashiest apartment building they could and sell a percentage of the units off the plan at a perceived below-market price to associates, who were effectively sub-underwriters. Everyone was told the second release of sales once the building was finished would be at a higher price, to create the panicky sense of “I must buy now”. The first round of purchasers would then sell out some of their stock at a higher price than they had paid, but below the next release price, and so it went on. Foreigners would end up owning some of the apartments but the rich local families held most of the stock as inventory at inflated prices. But real estate should never be held vacant as inventory, because vacant property depreciates and costs money to hold, particularly when you borrow against it to buy shares that ultimately collapse, as many of the wealthy in Dubai found out in the GFC. Ultimately the Dubai boom, like so many others, was predicated on nothing more than hot air; people just talking the market up and up and up. All the apartments and houses were getting dearer and dearer, but there were no tenants to give investors an economic return. The result was that in the last purchasing wave, just before the GFC hit, Dubai was turned into a virtual investment ghost town, the only people who could still afford to buy there being a shrinking pool of Russian and Middle Eastern billionaires.
Realising 10 years ago that Dubai would eventually collapse, I continually warned my more eager colleagues not to invest there. But a lot of people who should know better – not least because they are responsible for investing other people’s money – simply do not understand basic market fundamentals. They just read analysts’ reports or, even worse, newspapers, and believe the hype. They simply believe what they are told. When it came to investing in Dubai’s thousands of new apartments, they never checked who was living in or renting them. It is a bit of economics, but mainly it is a lot of common sense. Succeeding in business ultimately comes down to asking oneself one simple question: “Why is this so?” — because everything works on fundamentals of supply, demand and access to debt. You can distort the fundamentals for 10 or 20 years but ultimately, everything works on fundamentals.
Continued page 2
<hr class="system-pagebreak">
 
I have seen many real estate bubbles in my 30-year real estate career. Excluding the current disasters in Ireland and Spain, the worrying overbuilding in China and the USA’s sub-prime debt-driven disaster, the two classic collapses are Japan in the 1990s and Dubai post the GFC.
Japan’s collapse is staggering. I can recall in my many trips to Japan in the late 1980s, while being continually reminded of the Japanese superiority in all aspects of life, including real estate, that the value of real estate in Tokyo alone was worth more than all the real estate in the USA. This is most certainly not the case today, even in the post-GFC quagmire US real estate finds itself in. The Japanese market had bubbled to such extent that purchasers would eagerly take 100-year mortgages, to be paid off over three generations, to buy a basic property. Sustainable? The Japanese thought they were just smarter than the rest of the world because they were worth more; a classic case of hubris, or pride coming before a fall.
One of the golden rules of life is: “There is no correlation between wealth and being smart. If you are wealthy and you think that is because you are just smarter than everyone else, look out.” For the Japanese, it seemed as though values would never stop rising, as they had done ever since that country’s reconstruction by the US after the end of World War II. Debt was cheap, and values always went up. The Japanese had a similar philosophy to a few of my well-known associates at Macquarie who, pre-GFC, and with debt so cheap, made famous the phrase: “Let’s gear the bejesus out of it”.
The Japanese bubble burst in the late 1980s with tremendous consequences. Real estate values fell 60%, and 20 years later are still down 60%. There is no longer a belief in Japan that everything goes up in value; rather a fear values will fall even further. The Japanese collapse coincided with an ageing population, a demographic trend that initially boosted consumer confidence as spending peaked. Few foresaw the economic stagnation that an aged population would eventually bring.
The Japanese fear of permitting immigration has created many economic problems, although it has at least helped the many elderly citizens of that country who need jobs and continue to have to work well into their old age to pay off mortgages on houses worth less than the debt on them.
I can recall in the 1970s that the Asian language Australians were all being advised to learn was not Chinese or Korean but Japanese. Japan, we were all told, would be the dominant force in our region during our working lives.
Learning Chinese was not on anyone’s radar at that time. In fact, learning to speak Chinese was about as popular an option for most Australians as becoming a banker.
My first desire to use a walking stick occurred in Japan. One evening I was drinking with a few Japanese friends, quaffing sake in rather large quantities. When I woke the next morning, I had great difficulty in moving my legs as freely as the day before. As the alcohol left my body, the loss of mobility did not. I struggled along unaided for a few days until I returned home and purchased my first walking stick. At first I did not use it every day, but always took it with me on my frequent travels.
I found travelling with a disability in Japan a mixture of goodwill and bad design. The people were wonderful, always wanting to help, and the transport system worked very well, but the infrastructure and building design failed miserably. Supposedly disabled-access hotel rooms with a step or two were not uncommon. In my early visits to Japan with Macquarie associates, travelling without a translator, we would often sit in meetings that were scheduled to be in English. My fellow travelling companion at the time, Gus Kuiters, noted after a series of meetings how rude the Japanese were as they would talk for 10 minutes or so amongst themselves in Japanese as if we were not in the room before finally returning to the conversation in English. We talked about this to a Canadian associate who spoke French. He told us that when he and some other French-speaking Canadians travelled to Japan, the same thing happened. So, as the Japanese spoke amongst themselves in Japanese, they would speak French amongst themselves. He said this would enrage the Japanese, who would demand to know what was being said.
These trips were long and tedious, knocking on the doors of companies investing in or thinking of investing in Australia. On a subsequent trip with Gus, we encountered the same rudeness. So I said to Gus: “Let’s speak another language”, to which the obvious response was: “We don’t know another language.” To which I replied (with retrospective apologies to Aboriginal brothers and sisters): “Yes we do, we know Aboriginal”. So we decided that the next time we were confronted with this treatment, we would speak ‘Aboriginal’. The conversation went something like this.
I would say: “Cabramatta Wagga Wagga Coolangatta Kakadu”, to which Gus would reply: “Jabiru Gunnedah Gundagai”. We had compiled a list of about 100 Australian towns and places with Aboriginal names. These names, strung together, sound very fluent. We had a lot of fun with this. The Japanese would stop talking and start listening, and as usual begin writing down every word that was said — or tried to in this case. Then they would ask what language we were speaking and we would say Aboriginal. I had visions of some poor Japanese analyst being given the job of researching ‘Aboriginal language’ after this meeting. We really did come from the land Down Under.
The Japanese and Koreans made more bad international real estate business decisions than I have seen anywhere else in my career. The size of their losses in Australia in the early 1990s was unbelievable, developing complex projects in obscure locations and with overcapitalisation on an absurd scale. All justified by so-called ‘long term vision’: a vision to spread their capital around the world and build icons that would not provide a meaningful return on capital for 20 years. At first I thought these were just stupid business decisions. I was perplexed as to why, after financing building projects that in retrospect were worth 10% of their original cost, the ‘80 still walking Japanese banks would appoint the same consultants who presided over this mess in the first place to work them out of the problem. The pieces of this puzzle were only to fall into place when assets began changing hands.
We had financed an Australian company that had purchased one of many distressed Japanese-built assets in Queensland. The head of this company told me that when they took possession of the property, they had found boxes and boxes of documents relating to its construction, among which were many interesting invoices. He drew my attention to the pavers we were standing on; good-quality Queensland pavers worth about $10 a metre at the time. He told me they found an invoice for six times this amount on a letterhead of an agent based in another state, supposedly to import these tiles from Europe. I asked more questions and found more and more examples of this sort of thing. They were not stupid, just corrupt.
I discussed this with a senior executive of one of the Japanese real estate financing banks who had realised there was no future in working in the real estate area for a Japanese bank for the next 20 years and had decided to venture out on his own. He told me very frankly that levels of corruption in project financing were so widespread that we would all have to wait at least two decades, until the senior management of that era retired, before there could be any reform.
Two decades on, real estate in Japan is still bleak and would be even bleaker if real values were reflected in company balance sheets. But in this case, as in any country where more people die each year than are born or immigrate, there are many other pressing issues. Simply, as cities shrink, values fall.
Bill Moss is a former executive director of Macquarie Bank. He has written a book about his life with muscular dystrophy called<a href="https://www.stillwalking.com.au/" target="_blank"> </a><a href="https://www.stillwalking.com.au/" target="_blank">Still Walking</a>, of which this is an excerpt. All proceeds from sales of the book go to the <a href="https://www.fshdglobal.org/" target="_blank">FSHD Global Research Foundation</a> and <a href="https://www.fightingchance.org.au/" target="_blank">Fighting Chance</a>. 
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How to spot a housing bubble: Bill Moss

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Two sagas – Centro and Charter Hall Office REIT - grabbed the headlines in Australia’s listed property trust sector in 2011, during a year marked by consolidation, risk aversion and reduced volatility.
Thirty out of 40 A-REITs recorded a positive total return for the 2010-11 financial year, with the volatility of the S&amp;P/ASX 200 Property Index lower than the All Ordinaries at June 30, 2011, according to research by accountants BDO. The total return (capital and dividends) for the Property Index for the 12 months to June 30, 2011 was 5.8%, compared with an equivalent return for the S&amp;P/ASX 200 All Ordinaries Index of 9.3% with BDO describing 2011 as a year of “modest recover” with the sector having some ground to make up on other equity indices since the GFC. There was an average 0.6% increase in property values across the sector and while A-REITs continue to trade at significant discounts to their net tangible assets of 23%, this has decreased from a discount of 37% in 2010 and 55% in 2009.
According to Sebastian Stevens, national leader of BDO Corporate Finance, the overall A-REIT sector is in a much stronger position than at any time in the last four years.
“The hard work done in 2009 and 2010 to get balance sheets in order has clearly paid off for the major players, with their look-through gearing levels significantly reducing from around 40% in June 2008 to approximately 30% currently,” Stevens says.
“2011 also saw the continuation of divestment strategies for offshore assets in favour of less risky Australian-based assets. Larger REITs are now well positioned to withstand any near-term pressures that may be experienced by the property sector.”
Arguably the most notable story of the year was the tricky but ultimately successful restructure of shopping centre owner Centro Group, its sister trust Centro Retail Trust, and the group's unlisted funds and syndicates, into a single listed retail trust, Centro Retail Australia.
Trading in the new A-REIT kicked off on December 5 with the share price closing at $1.74, valuing the company at $2.3 billion, up from a listing price of $1.70. The share price has since fallen back to just below its listing price following news that the US hedge funds that own 70% of the trust plan to sell their stakes within 18 months to three years. 
Before the listing, Centro fought hard to win approval from creditors, shareholders and former auditor PricewaterhouseCoopers, which argued all the way to the NSW Supreme Court that the restructure should not proceed. 
The new entity comprises 99 shopping centres, with Woolworths and K-Mart the biggest tenants.
The second biggest A-REIT story of the year – and one that has not yet run its course – is the future ownership and direction of the Charter Hall Office REIT.
At the end of July a <a href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930" target="_blank">bid by a trio of US hedge funds</a> to instigate a management takeover of the trust and ultimately liquidate its Australian assets was soundly defeated, with Mark Wist, senior asset consultant at Atchison Consultants, describing the vote as a “barometer for sentiment in the A-REIT space” indicating little appetite for change.
Little appetite for change perhaps, but there has been investor appetite aplenty since the failed takeover. with a Macquarie Group-led consortium making a $2.39 per share offer for the business on August 29.
On October 5 the consortium upped its offer to $2.43 a share and two months later sweetened the deal with a $2.49 per share offer.
Charter Hall Office REIT management is backing the proposal, with a shareholder meeting pencilled in for March 2012 to decide whether to accept it or not.
The consortium is made up of the Government of Singapore Investment Corporation, Canada’s Public Sector Pension Investment Board as well as the trust’s head stock Charter Hall, indicating the appeal of Australian commercial property assets to offshore sovereign funds.
In its 2011 A-REIT Survey, accountants BDO ranked the Charter Hall Office REIT its top performer of the year managing a total unit-holder return of 43% the highest return of any of the S&amp;P/ASX 200 Property Index members. 
“Consistent with the strong performance exhibited by the office subsector through the year, the A-REIT delivered increased earnings, higher distributions, lower debt and strong portfolio management metrics,” noted BDO. 
“Units in CQO also demonstrated a high level of liquidity, with CQO being one of the most actively traded REITs on the ASX during the 2011 financial year.” 
Among the key achievements noted by BDO include Charter Hall Office REIT increasing in statutory earnings to $69.2 million, up from a loss of $91 million in 2010 financial year, reducing look-through gearing from 45% to 43% and repaying, refinancing or removed all debt due to mature prior to the 2014 financial year. 
The diversified GPT group ranked second with the Investa Office Fund third. 
S&amp;P/ASX 200 Property Accumulation Index share price performance over 2011
 
 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
Company (ASX code)
</td>
<td width="205" valign="top">
Closing share price:  Jan 4 2011
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Closing share price:  December 22 2011
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Stockland Trust Group (SGP) 
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<td width="205" valign="top">
$3.54
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<td width="205" valign="top">
$3.23
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<td width="205" valign="top">
GPT Group (GPT) 
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<td width="205" valign="top">
$2.94
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<td width="205" valign="top">
$3.09
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<td width="205" valign="top">
Mirvac Group (MGR) 
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<td width="205" valign="top">
$1.22
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<td width="205" valign="top">
$1.21
</td>
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Dexus Property Group (DXS) 
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<td width="205" valign="top">
$0.77
</td>
<td width="205" valign="top">
$0.845
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Australand Property Group (ALZ) 
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<td width="205" valign="top">
$2.89
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<td width="205" valign="top">
$2.59
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Charter Hall Group (CHC) 
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<td width="205" valign="top">
$2.46
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<td width="205" valign="top">
$2.13
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Abacus Property Group (ABP) 
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<td width="205" valign="top">
$2.27
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<td width="205" valign="top">
$1.945
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Westfield Group (WDC) 
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<td width="205" valign="top">
$9.53
</td>
<td width="205" valign="top">
$7.99
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<td width="205" valign="top">
CFS Retail Property Trust (CFX) 
</td>
<td width="205" valign="top">
$1.78
</td>
<td width="205" valign="top">
$1.735
</td>
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<td width="205" valign="top">
Charter Hall Retail (CQR) 
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<td width="205" valign="top">
$2.93
</td>
<td width="205" valign="top">
$3.22
</td>
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<td width="205" valign="top">
Bunnings Warehouse Property Trust (BWP)
</td>
<td width="205" valign="top">
$1.74
</td>
<td width="205" valign="top">
$1.74
</td>
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<td width="205" valign="top">
Commonwealth Property Office Fund (CPA)
</td>
<td width="205" valign="top">
$0.83
</td>
<td width="205" valign="top">
$0.955
</td>
</tr>
<tr>
<td width="205" valign="top">
ING Office Trust (IOF)
</td>
<td width="205" valign="top">
$0.55
</td>
<td width="205" valign="top">
$0.61
</td>
</tr>
<tr>
<td width="205" valign="top">
Charter Hall Office (CQO)
</td>
<td width="205" valign="top">
$2.86
</td>
<td width="205" valign="top">
$3.50
</td>
</tr>
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<td width="205" valign="top">
Goodman Group GMG)
</td>
<td width="205" valign="top">
$0.65
</td>
<td width="205" valign="top">
$0.585
</td>
</tr>
</tbody></table>
 
In his analysis of the sector, Stevens says managers at the larger funds have been able to turn their attention to executing against their core strategies and portfolio management. 
"While the larger A-REITs have substantially de-risked their balance sheets, smaller A-REITs continue to possess weaker balance sheets and trade at a much greater discount to NTA.
"This represents the emergence of a two-tier industry.
“Not surprisingly, transaction activity picked up during the year with larger players and offshore pension funds acquiring a number of smaller trusts, and this can be expected to continue," he says.
"The larger funds have built strong foundations for the future both in terms of growth platforms and the ability to withstand any future shocks while the smaller funds are still struggling with heavily geared balance sheets and are finding access to both equity and debt difficult," Stevens says.
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lschlesinger-FZcF9M3vE6

Year in review: Centro and Charter Hall dominate year of consolidation for A-REITS

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Just in time for Christmas we’ve received the results of the National Housing Supply Council’s State of Supply Report 2011. 
The <a target="_blank" href="https://www.nhsc.org.au/supply">council’s report</a> provides independent and consistent data on housing supply, underlying demand and the supply-demand gap, as well as affordability. The report has become a trusted resource for both government and industry. 
With <a target="_blank" href="https://www.propertyobserver.com.au/residential/michael-matusik-dismisses-housing-undersupply-findings-as-spin/2011122152932">so much debate going on with whether there actually is an undersupply of housing</a> or not, this report gives some real weight to the argument. In fact, it’s pretty clear. 
The council projects that there will be a shortfall of more than 600,000 dwellings nationally in the next 20 years. 
Wow. That’s a lot of housing that will be required despite “weaker market conditions” that are being touted right now.  But I’m not really seeing “weaker” conditions. In the areas Property Bloom develops things have started to move.
Just this week we found a fabulous development site.  It is a solid three-bedroom house on 1,012 square metres with two street frontages (there’s the twist).  This potential development site had plenty of interest, so much so that we had to race to exchange in order to secure it and take it off the market before Christmas.  The agent received more than 30 enquiries in under a week.  On this site we’ll build a three-bedroom duplex – two attached three-bedroom villas – for our clients.  So we’ll create three properties from one. 
This is where I make the familiar reference to the two-speed economy.  You will find that in any large region where there is lots of employment opportunities – as we see in the Hunter region of NSW – there will be strong demand for housing. 
But it’s not just any housing that’s required. We need to tailor to the needs of the community.  The State of Supply Report uncovers that the numbers of households comprising couples without children and lone-person households are projected to grow much more rapidly in all regions than are the number of households that are families with children.  With an aging population this all points to a need for smaller dwellings. The projections suggest that most regions can expect a greater relative increase in demand for flats than for separate houses. 
Here’s an important point:  “Demand for private rental dwellings may well increase more sharply than is projected, due to social housing stock not increasing in proportion to increased underlying demand.”  What is that telling you, investors?  Rents will continue to increase, combine this with interest rates dropping, buy in the right area and you should end up with a very strong yield. 
With affordable housing in great demand, Property Bloom addresses this by developing properties, renovating houses and then building a granny flat. This strategy can be turned over very quickly and we basically double the housing capacity for that property and create a 9% gross yield for our clients.
By building villa developments in large regional towns like Muswellbrook, Cessnock and Maitland we are also providing good-quality, affordable dwellings. These are quickly snapped up in the rental market.
So if you are looking for to give yourself a Christmas present, consider developing property, or at least purchasing one, in areas where there is an under supply and strong demand. You’ll not only be doing yourself a favour, but also the communities you are investing in and assisting with the shortfall of housing.  Merry Christmas!
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

All I want for Christmas is some new housing

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A recent real estate survey conducted by Yahoo!, concerning the aspirations of home ownership among U.S adults found 81% of those surveyed still regarded home ownership as part of the “American dream”. There’s nothing particularly surprising about this – except of course when you consider the record numbers of foreclosures and tumbling values <place><country-region>America</country-region></place> is still experiencing.  However what’s more surprising is how priorities differ from the average Australian buyer.  When asked what their “dream” home would consist of, among the choices including “water views” , “beachfront or near beach” “building a custom home”, or “living in an urban neighbourhood” , top of the list, outshining everything else, came “green or energy efficient” –  and comments such as “Small, environmentally friendly, very energy efficient” were voiced from those surveyed.
If the same survey were conducted here, I have little doubt energy efficiency would be a tad further down the list of dream priorities. This isn’t to say that consumers don’t see the importance of insuring against rising bills, however out of the hundreds of purchasers I assist throughout the year – particularly those looking for their “dream 20-year-plus” property – I’m never asked to search for an energy-efficient home.  Energy efficiency is a third or fourth thought, with location and size (bigger, not smaller) usually featuring top of list.
While vendors may like to mentally add the cost of fitting solar panels or a large outside water tank onto their perceived estimate of value when selling, purchasers and more pointedly valuers don’t generally take such additions into consideration when assessing price.  For the purchaser, they are improvements that can budgeted for at some future point and not an outlay they’re necessarily prepared to pay with an upfront premium. Therefore in<place><country-region>Australia</country-region></place>, improving a home’s energy rating may be a wise choice from a lifestyle perspective; however it’s not an outlay that’s likely to profit the vendor from an investment perspective – at least not yet.
In other countries the trend towards energy efficiency is far more pronounced. I recently met a new immigrant from the <place><country-region>Netherlands</country-region></place>.  The family are currently renting in one of the middle-ring suburbs of Melbourne and took the time to explain how an energy-efficient, “carbon-neutral” property was top of their search priority list.  In fact so forthright were these specific requirements they emphasised the property must (in comparison with Australian homes) be compact and small in size.  They didn’t see the need for a large home – in their minds it simply didn’t make economic sense.  It took me right back to my days in the UK where, due to a higher population and limited availability of land, living in a small upstairs/downstairs terrace was the accepted norm and larger single level homes were seen as rather superfluous and typically reserved for older couples. The family in question soon came to realise that they weren’t going to easily find their dream property and renovating or rebuilding was probably going to be their only option.
Australians are known for their love of large houses and we arguably have the largest in the world.  It’s been discussed more than once how the lust for large McMansion-style properties is not diminishing. It’s never more evident than in the outer suburban growth corridors, where according to market leader Oliver Hume’s latest <a href="https://www.oliverhume.com.au/assets/website-purchaser-profile-and-sentiment-survey-jun3.pdf" target="_blank">survey of purchaser sentiment</a> the preference is still for homes with a floor size of 279 square metres – even though they do concede that due to affordability, buyers often end up settling for 50 square metres less than they initially desire.
One of the main reasons purchasers buy in the outer-suburban areas is simply because they can’t afford family-sized properties close to the city.  They’re prepared to give up the luxury of a quick commute to work to secure their version of the “Aussie dream”.  However in doing so, they’re also likely to find themselves paying a premium not only because of tactics such as limited land releases and hefty development overlays – but also due to strict building regulations imposed on builders to ensure the property meets the new six-star energy rating now adhered to in most states. It’s not a choice; it’s a requirement, and one that isn’t necessarily going to provide a saving on the average electricity bill considering the initial outlay.  More importantly, it puts the price of new suburban property needlessly out of reach of those prepared to move into the newer – still developing – suburbs.
Since the efficiency code was first introduced in January 2003, the initial requirement of a four-star rating has now increased to a six-star rating in most regions of Australia. The rating covers such items as “performance of the building fabric, external glazing and shading, sealing of the building, effects of air movement, performance of the building’s domestic services” and so forth. Of course, while this all sounds like a positive move, none of it comes without cost.
<hr class="system-pagebreak">
Last year, the <a href="https://www.thecie.com.au/">The Centre for International Economics</a> prepared a detailed report for the <a href="https://www.masterbuilders.com.au/">Master Builders Australia</a> highlighting how increasing the star rating and the associated cost thereof doesn’t necessarily achieve the desired measure of economic efficiency that would widely be perceived.  In fact, the marginal benefits of squeezing into to ever stricter star rating requirements are outweighed considerably by the upfront cost of the build.  And while this is disputed by various voices coming from the “green” side of the political arena, the report produced is compelling reading.
It argues the costs of moving from a five- to six-star property is $40 per square metre, five to seven stars $70 per square metre, and five to eight stars $190 square metres.  In fact, back in 2008 when the increased implementation of a six-star rating was under discussion in Victoria, Master Builders Australia was reported stating costs could add anywhere between<a href="https://www.theage.com.au/business/sixstar-energy-rating-adds-10000-to-cost-of-new-house-mba-20081120-6cv8">$10,000 to $14,000 </a>to the build of a new home.  Furthermore, before a building permit can be issued, an accredited assessor is required to perform an energy rating assessment, which falls somewhere between $1,000to  $4,000 depending on the size and design of the property – and I can vouch from experience the resulting reports differ depending on the individual used (and have therefore been highly controversial).
Not only this, but we now have the added concern of the carbon tax looming.  Estimating the increase in various prices prior to implementation is unreliable, however HIA have posed that it’s likely to put at least $6,000 on an average house-and-land package. Add all the figures together and the concept of buying in the outer suburban corridors for the sake of a larger more affordable home suddenly starts to look a little less affordable and desirable and provides very little benefit to the consumer considering the extra outlay.
All these new policies come wrapped in great noble gestures and presented for “our benefit” – or more grandly, for “the greater good of mankind”.  But the reality is an expensive one and rather than making the cost of living and acquiring shelter more affordable, the dream of home ownership – even in outer-suburban areas where land and prices should be considerably lower – is slowly slipping away for an increasing number of Australians for reasons that just do not make economic sense.
No home owner is against implementing sensible energy-saving measures. We all recognise the expense of living is increasing and many have been motivated to take advantage of solar power, double glazing, roof insulation, and other such improvements to reduce the cost to themselves (and the environment) when it makes sense to the back pocket to do so.  In other words we don’t have to be forced to reduce our carbon footprint especially when it reduces the bills.  However, forcing up the price of new homes, without clear evidence that it will not only benefit the environment but also reduce the power bills in relation to the initial outlay is both unfair and unreasonable – especially when it’s in everyone’s interest to encourage the move “outwards” and not “upwards” if we’re to ease the unsustainable levels of inflation witnessed in the inner and middle-ring suburbs during boom cycles of the property clock.
Furthermore, as outlined in many reports such as the <a href="https://www.demographia.com/dhi-ix2005q3.pdf">Annual Demographia International Housing Affordability Survey</a>, which advocates the importance of spreading outwards if we’re to reduce the cost of housing, “greenhouse gas emissions of those living in high-density areas are greater than for those living in low-density areas” and “per person, apartment living uses more overall energy”.
 This isn’t surprising – in new apartment blocks (which incidentally also have to adhere to the six-star energy requirements) lights are left burning perpetually in the common areas, electricity usage is increased to power lifts and additional security features, not to mention the price of heating the pool, sauna, and 24-hour gym used as added “enticements” for would-be residents.  It makes scant sense from an environmental perspective and in addition, once purchasers find out how extortionate the owners’ corporation fees are to power these features, it generally places first-home buyers out of the equation all together. (In fact, look into the major buyer demographic purchasing the surplus of high-rise property spruiked to ease housing affordability in the inner and middle-ring suburban areas surrounding our major capitals, and you’ll find investors take the lion’s share, with second homebuyers coming a close second). At every stage of the planning cycle, first-home buyers seem to fall through the cracks – and unless we encourage an increase in the accumulation of affordable new residential buildings in the newer growth suburbs, it’s not going to improve.
Maybe one day the average Aussie buyer will also have energy efficiency at the top of her list when it comes to choosing her dream home – however until it’s proven to save home owners in their back pocket and not pilled disproportionably onto the initial cost of a new suburban property for the sake of “looking green”, it’s not going to ease the housing pain for the average Aussie purchaser – and instead of focusing on such measures – top of the “dream” list for home buyers will simply be a roof and four walls, preferably in an area that provides an easy commute to work.
Catherine Cashmore is senior buyer advocate for <a target="_blank" href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
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catherinecashmore-6LXia3pPQj

It's not cost-effective going green

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Risk will be the buzzword in 2012, with investors seeking stable investments like bonds and commercial property, according to diversified fund manager Centuria.
Centuria believes the current volatile environment will continue into 2012 and says it could take up to two years before any kind of “normality” returns.
In this risk-averse environment, investors in search of low-risk, low-volatility investments will be drawn to commercial property as part of reweighting and re-diversifying their portfolios, the company says.
“Investors will move towards a ‘back to basics’ approach that sees a return to favour of the traditional one-third shares, one-third property and one-third cash allocations, at least as a starting point,” the company forecasts.
According to Centuria further reductions in interest rates in early in 2012 would further boost the appeal of commercial property.
And it believes that ongoing market volatility will offer further “attractively priced investment property opportunities” that can be packaged to offer investors steady income streams.
“In the past 10 or more years, many investors have been focused on returns, returns, returns. In 2012, the risk aversion that’s been growing will become even more prevalent, as investors realise that market volatility is here to stay. Risk will be the new “R” word,” says John McBain, chief executive of Centuria Capital.
“Instead of just sitting in cash as they have been, investors will realise that it’s time to make some considered decisions and return to a more defensive and balanced asset allocation.
“Investors should be looking to more conservative investment strategies such as equal allocations between shares, property and cash,” says McBain. 
For investors balancing their asset allocations more evenly, the property and bond markets will benefit, particularly as falling interest rates steer them away from cash and make direct property and bonds a more attractive long-term investment return proposition, he says.
During 2011, Centuria’s portfolio comprising office, industrial and homemaker centres grew beyond $1 billion worth of funds under management following the purchase in April of a newly constructed five-level commercial building at 8 Australia Avenue, Sydney Olympic Park for $30.15 million. 
The building, completed in 2010, is 100% leased with tenants including Fujitsu, The Sydney Olympic Park Authority and Watpac.
 
 
 
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Commercial property will appeal to risk-averse investors in 2012: Centuria

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Suggestions by Mortgage Choice CEO Michael Russell that overly conservative property valuers are hampering the recovery of the property market have been affirmed by residential property developers in Queensland, who say valuers are to blame for one in two sales contracts to falling over.
Property developers claim that in some cases valuations are coming in 15% to 30% below the contracted sales prices, with Des Ryan from Demac Homes telling the Australian Financial Review the sale of a three-bedroom duplex for $340,000 fell through after the valuation came through at $280,000.
Ryan says the accuracy of valuations needs to be questioned, labelling valuers “a cancer in the building industry”.
“I have had one valuer in here boast that he has had to value the same property seven times before it finally got sold.” 
Another developer, David Horder from Gorman Property, told a similar story, with a $175,000 land sale near Ipswich falling over after the bank-instructed valuer said it was only worth $130,000.
Horder believes valuers are lowering their valuations under pressure from the banks, which are facing tougher capital restrictions.
However, the banks have dismissed the suggestion, with Westpac senior product risk manager Matthew Miller telling the AFR valuers were under no pressure to report more conservative valuations.
Propell National Valuers chief executive Bart Mead says in addition to “highly publicised market trends, competitive property sales and demand levels”, factors such as property presentation, renovations and location have had a major impact on values in 2011.
Mead says owners must consider not only the capacity for a property to expand, extend or renovate, but also its capacity to be demolished and replaced.
“Renovations and extensions need to be sympathetic to the rest of the property, and building permission and certificates should be sighted, as amateur work can often detract,” he says.
According to Mead, particular location issues also affect valuations, even if the property itself is comparable to others in the suburb.
“T-junctions, bus stops, cul-de-sacs, views, hills and access to the city can all detract or add value to a property,” he says.
 
 
 
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Queensland developers say overly conservative valuers to blame for sales failures

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The major banks may have a hard time getting across the message that they are facing increased funding cost pressures after both St George and Bank of Melbourne cut their fixed-rate mortgage rates.
NSW-based St George and Victoria-based Bank of Melbourne, both subsidiaries of Westpac, cut their fixed rates by between 14 and 19 basis points effective immediately. 
One-year fixed-rate loans reduce from 6.33% to 6.14%, two-year fixed-rate loans reduce from 6.14% to 5.99% and three-year fixed rates have come down from 6.24% to 6.09% for both banks. 
The cheaper rates are available for limited time for new customers and existing customers switching into a new fixed-rate mortgage. 
Rob Chapman, chief executive of St George Bank, says the latest fixed-rate cut is seventh reduction since July. 
The cycle of fixed-rate cuts, which peaked in October bef0re the November and December rate cuts is forecast to ease as interest rate sentiment shifts towards further rate cuts in 2012.
Damian Smith, CEO of comparison website RateCity.com.au, says the relative attractiveness of fixed rates is decreasing, with variable rates falling faster than fixed rates over the past two months.
“There has been some small movement in some fixed rates, but no 30- or 40-basis-point cuts,” he says.
“Over the course of a cycle, consumers are generally better off with a variable rate loan, but there are windows of opportunity for taking out a fixed-rate loan.
“The last window was between August and November, following fixed rates falling very hard over the previous six months.
“That window is now closed.”
 
 
 
 
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St George and Bank of Melbourne cut fixed rates as trend for fixed-rate cuts slows

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Property market analyst Michael Matusik has dismissed government forecasts that Australia is heading for a massive undersupply of housing over the next two decades, arguing that politics and “vested interests” are at play.
 
The National Housing Supply Council’s State of Supply Report for 2011 forecasts that at the current rate of new housing construction, Australia will have a shortfall of 640,000 dwellings by 2030.
<img src="/images/stories/housingsupply.gif">
Source: State of Supply Report
According to the report, the gap between housing demand and supply increased by 28,200, (nearly 18%) to 186,800 housing units in the 12 months to the end of June 2010, with NSW and Queensland having the largest shortfalls of 73,700 and 61,900 homes respectively. 
The Real Estate Institute of Australia, Housing Industry Association , Urban Taskforce Australia, Master Builders Australia and lobbying group Australians for Affordable Housing have all responded to the report by demanding government action to address the shortfall in housing. 
But Matusik says the people who compiled the report have a “vested interest in finding an undersupply – they keep their posts”. 
According to Matusik, there will be no undersupply unless migration picks up enormously. 
“Once you look into the facts and ignore the spin, you find that Australia’s new housing market isn’t that undersupplied at all. 
“Housing industry and banking economists keep reminding Australians of a massive housing shortfall of around 300,000 new homes that will double in size over the next decade,” he says.
“Australia’s population growth has slowed by close to 150,000 in just two years, with a 100,000 drop in the actual growth rate over the last 12 months.  As a result, the underlying demand for new housing has dropped from 180,000 starts per annum to around 125,000.  While dwelling starts are declining, we are now building too much stock.
“Unless new housing starts decline in earnest or population growth accelerates, Victoria, South Australia, Tasmania and the Northern Territory face an oversupply.  Perth and Canberra are better positioned, with Queensland currently at equilibrium and New South Wales undersupplied.”
“Yes, we don’t have enough affordable new homes, but we have an ample supply of new dwellings pitched at speculators,” he says.
Matusik occupies a lonely position. 
AAH campaign manager Sarah Toohey says the report “shows an unacceptable shortfall in the supply of housing in Australia”. 
“Australia has a structural problem in the housing market and only a comprehensive plan that includes extra affordable housing supply, taxation reform, increases to and reform of Commonwealth Rent Assistance and better and more targeted support to first-home buyers will deliver the affordable housing solutions that low- and middle-income Australians need,” she says. 
HIA chief executive Graham Wolfe says the modelling in the report and forecast of a 640,000-dwelling shortfall by 2030 is “not inconsistent with the trends that HIA’s own modelling has identified”. 
“As a nation, we must embark on a significant housing policy reform agenda if we are to reinvigorate the residential building sector and keep the great Australian dream of home ownership a reality,” he says. 
Wilhelm Harnisch, CEO of Master Builders, says the report highlights the growing problem of undersupply of housing and the urgent need for all governments to address the problem through a co-ordinated policy response. 
“The continuing global economic uncertainty has contributed to the current sluggish housing market conditions but is masking the true extent of the housing undersupply challenge,” he says. 
The State of Supply Report says that despite weaker market conditions, the housing shortage continues to widen. 
It says that for the year to June 30, 2010 an additional 131,000 houses were built, 9,700 fewer than were projected in the previous report. 
At the same time underlying demand for housing grew by an estimated 159,200 dwellings over this period resulting in a shortfall 28,200 for the year and pushing up the revised 2009  shortfall of 158,500 to 186,800 in 2010. 
According to the report, a large reason for the gap widening is “a growing divergence between underlying demand, which is demographically driven, and effective demand, which is what actually happens in the market and is driven by economic as well as demographic factors”. 
“The building industry has also had to face up to a weaker market, and the volume of property being built has fallen significantly. Approvals for building dwellings other than detached houses (largely multi-unit apartment buildings) saw a longer downturn than those for building houses following the global financial crisis,” the report says. 
“The council believes that this is partly due to more limited access to development finance for this form of development subsequent to the GFC and in the light of market conditions.” 
The report was launched by new Minister for Housing and Homelessness Robert McClelland, who says housing undersupply challenges will be examined as part of the Housing Supply and Affordability Reform agenda. 
“The government is working with the states to finalise this examination of supply constraints in the housing market, with a report to be delivered to the Council of Australian Governments soon,” he says.
 
 
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