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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For as long as people have been securing their financial futures, a debate has raged as to what type of investment offers the best long-term returns. 
Well, a recent study by ANZ Research entitled Asset returns: past, present and future has provided some clear answers – <a href="https://www.propertyobserver.com.au/residential/owner-occupied-housing-top-performing-asset-over-24-years-but-not-in-the-next-decade-anz/2011100651835" target="_blank">residential property has outperformed all other asset classes over the past 24 years</a>. 
The detailed study compared a range of assets going back to 1987, and different levels of leverages and returns were then risk-adjusted in order to paint an objective picture.
ANZ compared the after-tax and after-cost returns of owner-occupied housing, investor housing, commercial property, equities (the ASX 200), government bonds and term deposits. 
The best-performing asset
The key finding was that the highest performing investment over the past 24 years was owner-occupied residential property. 
The report showed that even when costs and taxes were factored in, owner-occupied housing generated the highest average annual total return of 12% per annum. In second place was investment housing, which delivered an average annual return of 9.6% over the last 24 years. 
Over the same period the share market averaged 8.9% for a higher level of risk due to its higher volatility, with commercial property, bank term deposits and government bonds providing lesser returns. 
The following chart from ANZ shows the compound annual growth rate of the various asset classes over last 24 years.
<img src="/images/stories/yardneydec21.gif">
What about costs?
A common criticism of simple return models is that housing attracts a number of costs that other assets do not. Things like maintenance costs, stamp duty and agents commissions (on sale and rent). 
In this study the ANZ have accounted for these costs as realistically as possible. ANZ also included tax with a marginal income tax rate of 45% being assumed, as well as capital gains tax and stamp duty. 
The results
 
A gearing level of 50% was assumed for all assets, except for term deposits and government bonds, and returns were measured based on the return on equity. 
This is one of the most detailed comparative analyses I’ve read. However, I believe the results for property would have been even better if a higher gearing ratio had been assumed. If you think about it, most property investors have a higher loan to value ratio than 50%. 
And of course, the increased returns to property owners who renovate or improve their properties was not accounted for in this analysis. 
Looking ahead
 
You know what they say – past returns are no guarantee of future returns. 
In fact, ANZ believes that equities will have the highest returns over the next decade as the growth in value of residential properties tracks the growth in wages. 
We’ll just have to wait and see.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
 
 
 
 
 
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Property the best-performing asset, but will it continue?

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ANZ and the Commonwealth Bank expect the Reserve Bank to cut the cash rate to 4% on  February 7 following analysis of the minutes of December Monetary Policy Committee meeting released today.
ANZ economists Ivan Colhoun and Craig Michaels say the minutes indicate that the RBA board cut the cash rate in December on the basis of heightened global risks emanating from Europe after again considering “whether further evidence of Australia's unfolding mining investment boom was cause to leave rates on hold”.
“On balance, given the heightened global risks, coupled with inflation expected to be consistent with the target over the next two years, the board felt that it had scope to reduce the cash rate modestly,” Colhoun and Michaels say.
“The board minutes suggest that the RBA is continuing to ease policy with some caution given Australia's solid mining investment medium-term pipeline, which is in stark contrast to market pricing of aggressive rate cuts. While the board notes the large downside risks stemming from Europe, it will be the evolution of these risks that will be the key for the February decision.
“Importantly, the availability of credit is (so far) much greater than during the GFC, and unless we witness a seizing in credit markets, aggressive policy action by the RBA is very unlikely.”
To gauge future RBA policy, Colhoun and Michaels will be closely watching developments in Europe, the direction of Chinese growth, Asian trade figures and 2011 fourth-quarter inflation data out on January 25.
CBA economist Michael Workman says both the November and December rate cuts were spurred on by the worsening situation in Europe outweighing generally favourable local conditions, most notably “a major investment boom … tied to the reasonably strong Asian growth outlook”.
“In contrast to the strong domestic investment outlook, the uncertainty over the way events may pan out in the EU present a problem for the RBA board when deciding interest rate levels,” Workman says.
“We expect another RBA rate cut in February. We see the same reasons arising that justified the last two cuts. Conditions in the EU are likely to worsen in terms of the growth outlook.
“The ongoing bad news may further weaken already fragile (non?resources) business and consumer confidence measures here, which will play into lower spending, investment and jobs outcomes. The local financial markets remain very bearish on the local economy. They see a cash rate of 3% in mid-2012.”
“Every board meeting in 2012 is, in our view, ‘live’ if the financial markets continue to dismiss the ability of the EU to satisfactorily resolve its debt problems,” Workman says.
 
 
 
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ANZ and Commonwealth Bank tip February rate cut

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The deteriorating situation in Europe and concerns about the state of both the local housing market and China’s housing market spurred the Reserve Bank Monetary Committee to cut interest rates by 25 basis points to 4.25% on December 6, according to minutes from the meeting released today.
“After a positive reaction to the EU summit in late October, financial market sentiment deteriorated through most of November, reflecting the difficulty European policymakers were having in dealing with the debt crisis, as well as political instability in several euro-area countries,” the minutes read.
The board also notes that strains in “European interbank markets also intensified” in November while “wholesale debt markets globally appeared to be closed to many financial institutions”.
The last comment acknowledges <a href="https://www.propertyobserver.com.au/economy/unhappily-perhaps-banks-pass-on-full-rate-cuts/2011121152772" target="_blank">the higher funding cost concerns expressed by Australian banks in recent AGMs</a> and <a href="https://www.propertyobserver.com.au/economy/no-banana-smoothies-but-anz-to-explain-its-new-rates-policy/2011121652869" target="_blank">the decision by ANZ to decouple its interest rate decisions from future RBA announcements.</a>
The RBA remains concerned about the state of residential housing, noting that “residential approvals had continued to decline, with the large fall estimated to have occurred in October in contrast to the recent upward trend in grants to first-home buyers”. “Approvals in Victoria had fallen significantly in recent months after the sharp run-up through 2010, while housing indicators for New South Wales were showing some signs of a pick-up.
“In recent liaison, some contacts, including in the property industry, had reported signs of a tightening of credit conditions, and overall growth in business credit outstanding remained weak,” the minutes read.
Further on the RBA notes that conditions in the housing market remain “subdued”.
“Housing prices were estimated to have fallen in October and were down by around 4% over the year. Members noted that prices had fallen by more in higher-priced suburbs. Housing credit was increasing at an annualised rate of 5% to 6%, as it had for much of the past year.”
On the global housing front, the RBA board notes that “conditions in the Chinese housing market were noticeably weaker than over the past couple of years, reflecting the effect of controls on buyers and tight credit supply for developers”.
“Members noted that this slowing was in line with the authorities’ intentions. The slowing in private housing construction was being offset by growth in construction of social housing, but production of crude steel had fallen somewhat in recent months.”
In coming to its decision to cut the cash rate in December, the RBA weighed up “further evidence that a major investment boom was in progress and the overall economy was expanding at a pace broadly in line with trend” against “developments in Europe [that] continued to pose downside risks to the global economy and, consequently, also to Australia”.
“These risks had, if anything, increased though the timing and magnitude of any effects that might flow from them remained very difficult to predict,” the RBA decided. 
“In these circumstances, and given the expectation that inflation would be consistent with the target over the next couple of years (abstracting from the effect of the carbon pricing scheme), members felt that there was scope for a modest reduction in the cash rate at this meeting.”
 
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Europe fears and housing worries among reasons for December rate cut: RBA minutes

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There is an enormous amount of time wasted debating whether Australian house prices are over- or under-valued. The vast bulk of everything that is written on this subject is, unfortunately, both factually flawed and misleading. 
Today I want to objectively eviscerate the long-standing myth that the Australian housing market is in the throes of an unsustainable bubble using two very simple charts, which you are unlikely to have seen before. 
By referencing this analysis alone one can conclude that current Australian house prices are comfortably explained by fundamental economic factors. That is, there is no evidence that domestic housing costs have overshot basic measures of fair value. We will also see that the average Australian family’s disposable income after meeting all housing costs is actually higher than it has been at any time since our analysis begins in 1985. 
The first question we address is most powerful in its simplicity. Specifically, we want to work out how much of the growth in Australian house prices since 1985 can be explained by changes in disposable household incomes and mortgage rates. 
Regular readers will recall that both the RBA and I have regularly argued that the increase in household debt-to-income ratios, which started during the early 1990s, and the coincident rise in Australia’s dwelling price-to-disposable income ratio, can be partly attributed to the circa 40% reduction in average mortgage rates between the 1980 and 1995, on the one hand, and 1995 and today, on the other. These two periods book-end the introduction of the RBA’s “inflation-targeting” regime, which helped lock-in consumer price growth of 2% to 3% per annum, and thus much lower nominal interest rates. More formally, mortgage rates averaged 12.6% between 1980 and 1995. Since that time, mortgage rates have averaged a little less than 7.5%. 
In our first chart below Rismark’s research group has put this hypothesis to the test. In particular, we take the median Australian dwelling price in June 1985 and “index” this by only two variables: (1) changes in incomes; and (2) changes in borrowing capacity enabled by variations in mortgage rates over time (assuming that the household’s loan-to-value ratio and mortgage repayments-to-disposable income ratio stay constant in 1985 terms). 
The final income- and interest rate-adjusted 1985 median dwelling price is denoted by the blue line in the chart below. The red line represents actual median prices. 
To get the best possible measure of the change in household earnings, we use the ABS’s disposable household income series, which is reported as part of the National Accounts. We have not used the gross increase in disposable household income, since this is artificially inflated by population growth. To control for the latter, we divide disposable household incomes by the number of households each quarter. This gives us disposable income on a per household basis, which expands at a lower rate than the headline disposable income series. 
If we simply index the 1985 median dwelling price by this measure of incomes, we can account for 60.1% of the total increase in Australian housing costs over the last 26 years.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/december201.gif"><img src="/images/stories/december201thumb.gif"></a>
As discussed, the second variable we use to adjust the 1985 median dwelling price is the change in household borrowing capacity over time. To properly quantify this, we keep the amount of money households spend on their mortgage repayments constant. That is, we fix the 1985 mortgage repayments-to-disposable income ratio and apply this fixed ratio to the entire 1985 to 2011 time-series. 
We do not, therefore, allow households to spend any more of their earnings on meeting housing costs over time. We also assume a constant mortgage loan-to-property value ratio. Accordingly, the only variable that influences the household’s borrowing capacity is fluctuations in mortgage rates over time, which we source from the RBA. 
Adding changes in borrowing capacity to the blue line in our chart above, we can explain a further 31.9% of the increase in Australian housing costs since 1985. 
Collectively, incomes and interest rates account for 92% of the increase in median Australian dwelling prices over the period 1985 to 2011. 
Note that since the average size of Australian homes has tended to rise, it is likely that there are some “compositional biases” affecting our median measure of housing costs (i.e., the red line in the chart above). That is, it is conceivable that incomes and mortgage rates actually account for an even higher share of the time-series change in dwelling prices than our analysis suggests. 
Our second chart takes a novel look at the question of housing affordability. This analysis actually borrows from an approach first developed by Dr Tony Richards at the RBA. Specifically, it asks the question: how much real disposable do households have left over after buying the representative home and servicing all their mortgage costs? 
In order to compare the welfare of different households over time, we take the disposable income measure used in the first chart above every quarter and assume the household buys the median-priced dwelling as recorded in that same quarter. Given a fixed loan-to-value ratio, we then work out the principal and interest repayments owing on the household’s mortgage, which it meets out of its income. After adjusting for inflation we have a quarterly estimate of real disposable income per household netting out all housing costs (i.e., after buying a home and servicing the mortgage). This is represented by the blue line in the chart below.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/december202.gif"><img src="/images/stories/december202thumb.gif"></a>
It turns out that in 2011 Australian households actually have more income left over after purchasing the dwelling of their dreams and meeting their principal and interest repayments than any of their predecessors since our analysis begins in June 1985. This was exactly the same result that Richards found when he first published his work in early 2008. On the basis of this benchmark, housing affordability in Australia has never been better.
In closing today’s column, I want to provide an update to our closely followed dwelling price-to-income ratio. We have recalculated this data to reflect the ABS’s September National Accounts. The key conclusion is, as we have predicted for some time, that Australia’s dwelling price-to-income ratio continues to slowly decline to around four times, which also accords with what the RBA finds.
While one can quibble about exactly what the ABS includes in its measure of disposable incomes, we are more concerned about changes in the ratio over time (rather than the specific levels). And when focussing on how the ratio has moved, we can clearly see that there is no evidence that Australian housing costs have grown more rapidly than disposable household incomes over the last seven to eight years. In fact, when we use a much more precise measure of housing costs — namely, our hedonic indices – we find that per capita incomes in Australia have actually outpaced national dwelling prices by about 15% since the end of 2003.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/december204.gif"><img src="/images/stories/december204thumb.gif"></a>
In a recent report, the ratings agency Moody’s downgraded its outlook for Australia’s mortgage insurance sector almost exclusively on the basis of concerns about Australia’s housing market. On the one hand, Moody’s argued that, “elevated house prices and mortgage debt levels are arguably at unsustainable levels and remain a key vulnerability for the LMI industry.” Yet in the same report they concede that “our view is that the data on the sustainability of Australian housing prices remain ambiguous.” While these two statements are difficult to reconcile, we hope that the evidence presented above will help clarify Moody’s views.
 Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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The final word on Australian house prices: Christopher Joye

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Arrears in the Australian property market have improved over the year, with delinquencies falling to 1.42% in the September quarter, down from 1.77% in March, according to the latest research from Fitch Ratings.

The improvement comes as homeowners recover from the year's natural disasters in January, Fitch says, while interest rates cuts should provide more scope for improvement in the first half of 2012.
Fitch Australia head of Australian structured finance Natasha Vojvodic told SmartCompany this morning areas stretched by higher property prices have benefited from stable interest rates.
"There haven't been any interest rate rises, and they have really remained stable the entire year. This gives a lot of home owners the ability to adapt to mortgage repayments."
Regions which have performed badly in the past have continued to show disappointing results, Fitch said. Fairfield-Liverpool is still the worst area in the country, while the Sydney south-western suburbs, the Gold Coast and Western Australia's south-west region are all experiencing higher than average arrears.
However, overall arrears in these areas have decreased. In Fairfield-Liverpool, 30 day arrears fell from 2.99% to 2.63%, while in south-west Western Australia, they fell by 76 basis points to 2.17% – although Fitch says this is still above average.
Western Australia recorded the most improvement out of any state, with arrears falling from 1.99% to 1.5%.
"Regional employment has improved in Western Australia, which led to the rise. The mining sector has really expanded so it's been easier for borrowers there to adapt."
"The 30- to 60-day arrears have improved the most."
Queensland has remained the worst performing state, although arrears are down from 2% to 1.7%. Victoria saw arrears fall to 1.04%, with most of those concentrated in the north-western part of Melbourne.
Based on loan amounts, Nelson Bay is the worst performing postcode with a delinquency rate of 7.1%. Other suburbs including Budgewoi, Casuarina and Helensvale still remain in the list of the worst performers.
Vojvodic says arrears are expected to increase in the New Year, but mostly as a result of Christmas spending, saying lower interest rates should provide homeowners with some relief.
"The usual Christmas and holiday spending flows through the first quarter of the year, and so going forward we expect arrears to increase, which is typical this time of year."
"But during the first quarter the interest rate declines should offset some of that. As to the extent of that offset, it's unknown."
The 20 worst performing postcodes in Australia, by number:
1.	<a target="_blank" href="/news">Budgewoi</a>, NSW 2262 – 3.5% 2.	<a target="_blank" href="/news">Nelson Bay</a>, NSW 2315 – 3.1% 3.	<a target="_blank" href="/news">Kangaloon</a>, NSW 2576 – 3.0% 4.	<a target="_blank" href="/news">Surfers Paradise</a>, QLD 4217 – 29% 5.	<a target="_blank" href="/news">Cessnock</a>, NSW 2325 – 2.6% 6.	<a target="_blank" href="/news">Plumpton</a>, NSW 2761 – 2.6% 7.	<a target="_blank" href="/news">Kingston</a>, QLD, 4114 – 2.5% 8.	<a target="_blank" href="/news">Helensvale</a>, QLD 4212 – 2.5% 9.	<a target="_blank" href="/news">Crestmead</a>/<a target="_blank" href="/news">Marsden</a>, QLD 4132 – 2.4% 10.	<a target="_blank" href="/news">Eagle Vale</a>, NSW 2558 – 2.3% 11.	<a target="_blank" href="/news">Port Kennedy</a>, WA 6172 – 2.3% 12.	<a target="_blank" href="/news">Gorokan</a>, NSW 2263 -2.2% 13.	<a target="_blank" href="/news">Macquarie Fields</a>, NSW 2564 – 2.2% 14.	<a target="_blank" href="/news">Taree</a>, NSW 2430 – 2.2% 15.	<a target="_blank" href="/news">Hamlyn Terrace</a>, NSW 2259 – 2.2% 16.	<a target="_blank" href="/news">Green Valley</a>, NSW 2168 – 2.2% 17.	<a target="_blank" href="/news">Hoxton Park</a>, NSW 2171 – 2.1% 18.	<a target="_blank" href="/news">Karuah</a>/<a target="_blank" href="/news">Swan Bay</a>, NSW 2324 – 2.1% 19.	<a target="_blank" href="/news">Casuarina</a>, WA 6167 – 2.1% 20.	<a target="_blank" href="/news">Ipswich</a>, QLD 4305 – 2.1%
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
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Mortgage arrears decline in September quarter, but NSW dominates list of struggling suburbs: Fitch report 

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At last Friday's annual general meeting, ANZ chief executive Mike Smith told the ANZ shareholders he was optimistic about the Australian economy due to its proximity to fast-growing Asia.
In China, the economy grew at 9% over the year. And while many commentators talk about the risks to growth in China, I have been there regularly this year and I am confident about the ability of the Chinese government to manage inflationary pressures and managed the shift from export-led growth, to growth based on more internal demand.
By the way, isn't that exactly what you've been reading right here, in some of the recent articles?
You will find that most commentators are focused on the short-term issues in the north Atlantic and have tended to overlook the bigger picture.
During every generation, there is generally a structural change in global economic activity. And right now, you are simply witnessing a shift the world's economic centre of gravity.
The influence of the British Empire was surpassed by American economic dominance after the Second World War. And now that dominance seems to be shifting from the advanced Western economies as a whole  across to a growing group of emerging economies.
China's current growth rate of 9% per annum is closely followed by India, at around 7% per annum. But you cannot ignore other emerging economies like Brazil, Indonesia and Vietnam.
With a population of around 240 million, Indonesia has the world's fourth-largest population. And in terms of overall net worth, it surpassed Australia's economy about five years ago.
Bottom Line: You only need to look at the number (and size) of the purchases of commercial property made by Asian buyers over the past year or so to realise the Australian property market is seen by them as a safe haven.
The sheer volume of Asian funds poised for investment means those investors need to look outside their own countries — simply to balance their portfolios, and spread their risk.
Therefore in 2012, you will hopefully recognise this tidal wave of activity for what it is. And more importantly, realise the positive impact it will have upon commercial property values in Australia.
Now is the time to position yourself to be able to ride that wave, over the next five to six years.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Asian interest makes Australian commercial property a good investment

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<table width="368" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Postcode
</td>
<td valign="bottom" nowrap width="127">
Suburb
</td>
<td valign="bottom" nowrap width="177">
Indicative gross rental yield for houses
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2382
</td>
<td valign="bottom" nowrap width="127">
BOGGABRI
</td>
<td valign="bottom" nowrap width="177">
10.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2880
</td>
<td valign="bottom" nowrap width="127">
BROKEN HILL
</td>
<td valign="bottom" nowrap width="177">
8.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2820
</td>
<td valign="bottom" nowrap width="127">
WELLINGTON
</td>
<td valign="bottom" nowrap width="177">
8.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2321
</td>
<td valign="bottom" nowrap width="127">
GILLIESTON HEIGHTS
</td>
<td valign="bottom" nowrap width="177">
8.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2660
</td>
<td valign="bottom" nowrap width="127">
CULCAIRN
</td>
<td valign="bottom" nowrap width="177">
7.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2306
</td>
<td valign="bottom" nowrap width="127">
WINDALE
</td>
<td valign="bottom" nowrap width="177">
7.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2653
</td>
<td valign="bottom" nowrap width="127">
TUMBARUMBA
</td>
<td valign="bottom" nowrap width="177">
7.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2283
</td>
<td valign="bottom" nowrap width="127">
CAREY BAY
</td>
<td valign="bottom" nowrap width="177">
7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2440
</td>
<td valign="bottom" nowrap width="127">
SOUTH KEMPSEY
</td>
<td valign="bottom" nowrap width="177">
6.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2835
</td>
<td valign="bottom" nowrap width="127">
COBAR
</td>
<td valign="bottom" nowrap width="177">
6.9%
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
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cknowlton-QnEa6ntUYP

The top 10 NSW suburbs with the highest rental yields for houses: RP Data

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Toronto mayor Rob Ford says he will act on his campaign promise to abolish land transfer tax, a move that has the support of Toronto real estate agents and two-thirds of residents.
Ford has pledged to first lower the tax by as much as 25% in 2012 and then abolish it entirely in stages.
Imposed in 2008, the tax adds about C$5,351 (A$5,204) to the purchase of an average Toronto house costing C$481,305 ($468,077).
A 25% reduction would save a home buyer about C$1,338 (A$1,301).
Plans to abolish the tax in Toronto, a city of about 2.7 million, follow similar calls to abolish stamp duty in Australia at the October Canberra tax forum and replace it with a broad-based land tax to improve housing affordability –  as suggested by the 2010 Henry Review.
The move is likely to be heavily opposed by state governments, with recent forecasts from NSW and Victoria showing land taxes will account for <a href="https://www.propertyobserver.com.au/tax/nsw-stamp-duty-forecasts-suggests-strong-housing-market-recovery-by-2014-15/2011121552867" target="_blank">about a third of state taxation revenue over the next four years.</a>
Stamp duty is expected to bring in revenues of about C$300 million (A$291 million) for the city of Toronto in 2011.
According to reports in the Toronto Star, Ford will face opposition from some city councillors who are opposed to his plans.
“I campaigned we’d get rid of it by the end of my term and if we do it in pieces, we’ll do it in pieces, but I’m going to keep my promise,” Ford said in a recent television interview. “We’re going to be tackling that [next year].”
The Toronto Real Estate Board has applauded Ford’s pledge, with president Richard Silver saying the Land Transfer Tax “is not good for Torontonians or the city”.
“We look forward to working with the mayor and council to get rid of this unfair tax,” he says.
A recent poll found that 65% of Torontonians continue to support Ford’s commitment to repeal the Toronto Land Transfer Tax.  “Torontonians understand that the land transfer tax is not part of the solution to the city’s financial challenges; it is part of the problem,” says Silver.
“It unfairly forces home buyers and business owners to pay more than their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the city less competitive than other GTA [greater Toronto area] municipalities,” he says.
 
 
 
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Toronto mayor pledges to abolish stamp duty

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<img src="/images/stories/empirestatehanukkahflicker.jpg">
The lights of New York's famous Empire State Building will be turned blue and white tonight to celebrate the first night of Hanukkah, thanks to the determination of a 9-year-old New Yorker and a tradition that began 14 years ago.
In 1996 Mallory Blair Greitzer, then 7, began to wonder why the Empire State Building, whose colours change regularly to celebrate major and minor holidays (red and green for Christmas, blue and red in honour of "Family Day, A Day to Eat Dinner with Your Children"), did not turn blue and white to celebrate Hanukkah. According to <a href="https://www.nytimes.com/1997/12/11/nyregion/empire-state-building-to-glow-for-hanukkah?src=pm" target="_blank">The New York Times</a>, Mallory approached the teachers at her Jewish school and asked about beginning a letter-writing campaign to have the Jewish festival of lights recognised by New York's most famous building. Her school turned her down.
Undaunted, Mallory wrote to the building's management herself, only to receive a form letter rejection. Her father wrote a similar letter, and received a similar response.
But Mallory was persistent. "I am one tough cookie,'' she told the Times.
She wrote directly to Leona Helmsley, whose Helmsley-Spear management company ran the building. The notorious "Queen of Mean" was convinced, and ordered the building to be lit up blue and white for two nights in December 1996.
The building's lights turned blue and white for the first night of Hanukkah in December 1997 - and Mallory herself flipped the switch.
As Hanukkah and Christmas coincide this year, between December 23 and 28 the building will be split, with the north and south sides red and green and the east and west sides blue and white.
 
 
 
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New York's Empire State Building turns blue and white for Hanukkah

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Eight suburbs on NSW Central Coast, a popular retirement and lifestyle location for ex-Sydneysiders, registered price falls of more than 5% over most of 2011, with mortgagee sales rising notably, according to property valuer Herron Todd White’s December report.
According to Fitch's latest mortgage delinquency report, the Central Coast suburb of<a href="https://www.propertyobserver.com.au/residential/mortgage-arrears-decline-in-september-quarter-but-nsw-dominate-list-of-struggling-suburbs-fitch-report/2011122052898"> Budgewoi is Australia's worst performing post code with a delinquency rate of 3.5% </a>
The biggest price falls occurred in Ourimbah, at the entrance to the Central Coast on the Pacific Highway, where houses depreciated by 16% over the year to November 2011, falling to a median of $343,000.
Sales prices ranged between $268,000 and $560,000.
Properties in the semi-rural lifestyle location of Matcham declined by 12% to a median price of $960,000, with Herron Todd White describing this result as “somewhat surprising” and suggesting that “trading slowed during 2011, with a resulting shift in affordability levels”. 
Matcham is part of the City of Gosford, where overall sales numbers declined from 2,601 in 2010 to just 2,059 in 2011 and median dwelling prices falling 3% over the past 12 months. 
Other markets to register declines of more than 5% included the popular coastal suburb of Terrigal, where unit prices declined by 7.5% to $495,000, with houses declining by a more modest 1% to $559,000. 
Highlighting the patchy nature of the market, houses in Killcare, about 16 kilometres south of Terrigal declined by 9.35% (to $775,000) while houses overlooking the beach in Killcare Heights (just down the street) increased by 7% to $590,000. 
The only other suburb to register an increase in values was Woy Woy on Brisbane Water, where unit and villa prices appreciated by 7% to $319,000.
<img src="/images/stories/htwdec19.gif">
Source: Herron Todd White
The report notes that “mortgagee sales have once again been all too common on the Central Coast”. 
“Advertisements of these mortgagee sales include ‘must sell, under instructions to sell,’ etc, which are regularly seen on the coast. 
“The Central Coast region has been ‘red flagged’ by the lenders for some time now for closer monitoring. This year, we have seen a steady flow in valuations being provided to mortgagees finding it necessary to carry out a forced sale. 
“Bearing in mind that we are just one of a number of valuation firms present on the Central Coast, our in-house records indicate that 44 individual instructions for mortgagee-in-possession valuations from various lenders have been received to November. 
“The number of these forced sales would indicate that the Central Coast real estate market, particularly in the ‘mortgage belt’ areas, is vulnerable as owners struggle with mortgage payments and living costs.”
The report highlights that dwelling and unit sales in the sub-$400,000 category, including vacant land sales, accounted for about 50% of the overall number of property sales on the Central Coast, “confirming reports from real estate agents that first-home buyers and investors are sustaining the market”.
“The residential unit market lived up to our expectations as the most volatile of the various market segments. Values were erratic as this market struggles to gain stability after the oversupply situation we have been experiencing over the past several years. Good buying was regularly seen in this segment,” the report says.
Overall, sales volumes declined by approximately 20% across all sectors and price bands compared to last year and are close overall to figures achieved five years ago in 2006. 
The segments that have shown the least activity during 2011 included dwelling sales of between $1million and $ 2million and vacant land sales, especially in the Wyong municipality, along with dwelling sales over the $3 million mark in Gosford. 
The surprise for the year was a 31% increase in sale volumes of dwellings in the $1 million to $2 million price band in Gosford.
<img src="/images/stories/htwdec192.gif"> 
Source: Herron Todd White
HTW attributes the slowdown in sales to the “erratic supply of funds being made available through the major lenders, with exposure and risk models undergoing “a regime of adjustment”.
“The result, it appears is that owners in this segment seem to have largely opted to delay the sale of their properties until the market improves, rather than take a hit. 
“It could be said that another two or three business reporting periods without controversy and boards left intact may stimulate this segment once again.”
Photograph by Kate Dreyer
 
 
 
 
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