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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The next phase of Sydney retail development activity is expected to centre around the bases of office towers, according to Savills’ latest assessment of the CBD market.
This follows the completion of the Westfield Sydney (38,000 square metres of leasing space) and Mid City (9,000 square metres) developments on Pitt Street Mall.
Currently retail and leisure activities occupy 7% of the total floor space in the CBD, according to most recent Sydney City Council surveys.
New retail developments will come on line in several stages over the medium to long term, mainly in the major developments of Barangaroo, Central Park on Broadway and City One, a redevelopment proposal for Wynward Station.
<img src="/images/stories/savillsdec19.gif">
Significant retail activity is expected south of Pitt Street Mall, with a number of new office and retail developments mooted or under construction. 
“One thing is sure: Sydney CBD is undergoing somewhat of a retail renaissance, with new retail being encouraged in laneways, George Street mooted to be pedestrianised (similar to Times Square in New York), and a new dedicated Retail Advisory Panel established to focus on future retailing business in the Sydney CBD,” the report says.
The potential reconfiguration of George Street to support light rail will also have a major effect on George Street retailers following the Sydney City Council announcement that it would set aside $180 million for the proposed light rail and pedestrianisation of the street.
“If this development goes ahead, it will reinforce George Street as the main transport corridor for pedestrians in the city and benefit business in the long run,” the report says.
Other developments likely to encourage CBD retailing include:
<ul>
<li>Sydney City Council is also working with smaller retailers, providing grants to encourage development of laneways and small business to provide a greater depth of retail experience in the Sydney CBD and its villages. </li>
</ul>
<ul>
<li> A Retail Advisory Panel has been established to identify and create opportunities for CBD retailers?. </li>
</ul>
<ul>
<li>Following the success of “fast fashion” with Zara launching on Pitt Street Mall, Savills says there is anecdotal evidence that “several other global juggernauts are sizing up Australia, with Sydney CBD destined to be a nominated flagship location in each instance”.</li>
</ul>
 
 
<ul></ul>
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Sydney office towers to become shopping destinations: Savills

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Banks have no excuse in not passing on full RBA rate cuts, argues University of Canberra social researcher Josh Fear, who says the government should legislate to prevent “gouging”.
Fear says borrowers should expect banks to use a lot of complicated “jargon” to justify not passing on interest rate cuts in full. Earlier this month, AN<a href="https://www.propertyobserver.com.au/economy/no-banana-smoothies-but-anz-to-explain-its-new-rates-policy/2011121652869">Z said it would no longer make interest rate decision following RBA monetary policy announcement</a>, the first bank to break with the timing of the central bank.
Writing for academic opinion site <a href="https://theconversation.edu.au/" target="_blank">The Conversation</a>, Fear reminded borrowers of “Westpac’s facile banana smoothie video” where it tried unsuccessfully to explain how the increase cost of wholesale funding (bananas) was pushing up the price of mortgages (banana smoothies) after the bank raised mortgage rates by 45 basis points in December 2009 following an RBA increase of just 25 basis points.
“When interest rates are going down, the world is suddenly a much more complicated place where simple explanations do not apply. Watch out for all sorts of jargon as banks try to obscure the real reason they do not pass on rate cuts in full,” he says.
According to Fear, the only way to stop banks using “cash rate movements as an excuse to gouge customers” would be for the government to step in and “stipulate that the interest rate margin is to remain constant over the life of the loan.
“[Banks] would need to make future expectations about interest rates clear at the outset – which would deliver greater competition in the mortgage market, which everyone (perhaps apart from the big four) agrees is a good thing.”
But Kevin Davis, research director for the Australian Centre for Financial Studies and professor of finance at the University of Melbourne disagrees, arguing that banks’ cost of funding isn’t directly related the level of the Reserve Bank’s cash rate because they get a fairly large proportion of their funding from international wholesale capital markets.
“They borrow for terms such as three years, which involves locking in a credit spread above risk-free rates. The interest rates they pay depends on what the market is willing to provide that funding at,” he says.
“At the moment European capital markets seem to have frozen, so to raise funding from those markets is going to involve quite a significant credit spread.”
 
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Banks have no justification for withholding rate cuts: Academic

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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.
 
Retailers are no longer bluffing when making threats about shutting down stores to escape unrealistic rents, one industry expert has warned, after department store giant Myer announced it would shut down one of its two ACT stores.
The announcement also comes just a few weeks after Myer chief executive Bernie Brookes said the business was having trouble negotiating over retail rents.
The department store confirmed last week that it would not renew its lease at the Tuggeranong store, saying it has continued to review the merits of its existing store portfolio. It also noted that the store represented less than 1% of total group sales and that customers are opting to visit alternative Myer stores.
However, David Gordon, partner in charge of the national retail advisory practice at WHK Group, says there may be other factors at play – namely, that retailers aren't bluffing anymore.
"Every retail lease negotiation has an element of bluffing there, but retailers don't have much room to move right now. When they say a spade is a spade, they actually mean it right now."
Brookes made comments several weeks ago suggesting the company was having trouble dealing with a landlord, and that it was able to win a discount on rents by suggesting the company could close its store.
While it isn't clear whether that particular argument had any effect on the latest decision to close this store, Gordon nevertheless says it's emblematic of a shift in how retailers are approaching these negotiations.
"Retailers just don't have the flexibility to play this type of game anymore, because the top line is coming down. They don't have the ability to mess around and accept an outcome that will hurt their profit."
"They're not bluffing when they say if they take these outcomes proposed by the landlord they'll lose money."
Gordon says larger retailers' preparedness to shut stores may continue over the next year as consumer confidence remains soft and rents stay high.
"It's clear that Myer just isn't getting the correct sales-to-rents ratio. There are just too many costs involved here for the store to turn a profit."
"It's quite difficult, especially at this time of year, to reduce service staff or cut costs. There will be times during the year when you can do that but certainly not now."
However, Gordon says there's not a lot that can be done when it comes to cutting rents.
"Everyone understands that rents are too expensive, but there's not much that can be done. Landlords have obligations to their banks and their covenants would require overall rent per square metre of a certain price."
"There are alternatives, but ultimately it comes down to negotiation and as we see here retailers are willing to just up and leave."
Myer also said it would be opening up a store in the ACT, although it won't be opened until sometime during the 2014 financial year.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Photograph by Paul Downey
 
 
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pmcstafford-pr9eMARWoN

Myer store closure shows retailers playing hardball in rent negotiations

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The year has ended on a low note for the property sector, but some experts believe a pick-up could begin from early next year, bolstering prices.
Auction results from this past weekend showed clearance rates in Melbourne and Sydney in the 50s – as they have been for the last few months.
SQM Research managing director Louis Christopher says the year's results were "pretty much in line with expectations".
"We thought at the start of the year we would see a 5-10% decline in the capital cities, and although numbers are still coming in that's what has appeared to have happened."
"We have Sydney, which has down a little bit better than that, but certainly you would put other cities into that category including Perth, Brisbane and Melbourne. Those capital cities have fallen into that category."
Christopher says the downturn in the property sector has been around for 18 months, and warns it may take awhile before any recovery takes hold. However, he points to encouraging ABS data showing housing starts and finance has been improving over the past four months.
"We think there will be a decline in the March quarter next year as well, but that is where it's going to bottom out."
Everything depends on Europe, he says. "If all goes well, we should see a recovery in the June quarter of next year. We'll see some indicators before then of how the economy is going, and hopefully that will continue."
This past weekend is emblematic of the year's results in clearance rates. In Melbourne, the Real Estate Institute of Victoria said only 254 properties sold out of 482 on the market, with a clearance rate of 53%.
This time last year, the clearance rate was 62%.
"This weekend is the final one this year with a substantial number of auctions – there are only another 40 auctions scheduled to occur before the end of the year," chief executive Enzo Raimondo said in a statement.
In Sydney, the city recorded a 50.1% rate, while Adelaide and Brisbane recorded rates of 26% and 28% respectively.
Christopher says these results may continue for awhile, but assuming the European situation doesn't deteriorate, will improve over next year.
"We'll see clearance rates go up to the 50s in February, and generally they will pick up from there."
"It should be noted over the next few months we'll be getting a few mixed signals from the housing market, but over next year the situation should improve."
This article originally appeared on<a href="https://www.smartcompany.com.au/" target="_blank"> SmartCompany.</a>
 
 
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Auctions end year on a low note but prospects strong for 2012: SQM

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<table width="351" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="130">
Suburb
</td>
<td valign="bottom" nowrap width="151">
Median weekly asking rent for units
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4000
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">BRISBANE CITY</a>
</td>
<td valign="bottom" nowrap width="151">
$600
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4006
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">NEWSTEAD</a>
</td>
<td valign="bottom" nowrap width="151">
$500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">SOUTH BRISBANE</a>
</td>
<td valign="bottom" nowrap width="151">
$490
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">WEST END</a>
</td>
<td valign="bottom" nowrap width="151">
$485
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4102
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">WOOLLOONGABBA</a>
</td>
<td valign="bottom" nowrap width="151">
$455
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4006
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">FORTITUDE VALLEY</a>
</td>
<td valign="bottom" nowrap width="151">
$450
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4000
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">SPRING HILL</a>
</td>
<td valign="bottom" nowrap width="151">
$445
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4059
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">KELVIN GROVE</a>
</td>
<td valign="bottom" nowrap width="151">
$420
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">HIGHGATE HILL</a>
</td>
<td valign="bottom" nowrap width="151">
$420
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4169
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">KANGAROO POINT</a>
</td>
<td valign="bottom" nowrap width="151">
$410
</td>
</tr>
</tbody></table>
Source: RP Data
 
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cknowlton-QnEa6ntUYP

Top 10 most expensive inner-Brisbane suburbs for unit rentals: RP Data

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APRA’s hard-line stance on enforcing new global banking rules could result in higher interest rates and a credit squeeze, former Commonwealth Bank CEO Ralph Norris has warned.
The warning from Norris follows a week of annual general meetings where the banks complained of high funding costs and political pressure to lower interest rates and just two weeks after the ANZ said it would adjust its mortgage rates independently of the RBA.
It also follows reports – <a href="https://www.propertyobserver.com.au/economy/anz-denies-carrying-out-apra-stress-tests/2011121652870">denied by ANZ, with other major banks declining to comment</a> – that APRA is requiring all the major banks to “stress test” how they would cope should a European financial collapse reach Australia.
Norris’s chief concern is the prescriptive approach APRA is taking to the implementation of Basel III banking reforms, announced in Switzerland in December 2010.
The reforms require (among other things) that banks hold higher reserves of cash as well as have sufficient high-quality liquid assets “to survive a significant liquidity stress scenario for a minimum period of 30 calendar days”.
Norris says regulators in Europe and the US are taking a softer approach to implementing the regulations, whereas Australia is at risk of scoring “an own goal” by moving too far ahead of what the rest of the world is doing.
“Of course there are benefits in having a strong and stable financial sector, as was demonstrated during the financial crisis, but Australia’s stable banking sector withstood the GFC because it is already well capitalised and well regulated. Raising the bar again may lead to a marginal increase in stability but, it must be asked, at what cost?” Norris writes in The Australian Financial Review.
“It is difficult to be precise about stability benefits at the margin versus cost, but it is clear that higher or increased capital levels did not necessarily correlate with increased stability and resilience during the crisis. It is also true that financial crises can originate outside the financial system, and increased stability within the system may not avert such crises,” he says.
“The cost of getting it wrong, because of flawed assumptions or models, could be very great, and would have a direct impact on the price and availability of credit for Australian customers,” Norris says.
According to Norris better capitalised banks are not necessarily more resilient in times of crisis. 
APRA intends to issue the final version of its prudential standard covering capital adequacy requirements in mid-2012.
Following this, qualitative and reporting requirements as well as changes to minimum liquidity holdings requirements will be implemented in late 2012 or early 2013.
The liquidity coverage ratio– which requires banks to hold enough liquid assets to survive a 30-day period of acute stress – will be implemented on January 1, 2015, while net stable funding ratio requirements – the proportion of long-term assets that are funded by long-term, stable funding  - will be implemented on January 1, 2018. Both are in line with an internationally agreed timetable.
 
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Tough APRA regulation could push up interest rates: Ralph Norris

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Commercial property investors may be encouraged to put more of their money into Australia’s top-end hotel brands in 2012, following a Roy Morgan survey that found nine out of 10 customers who stay in a luxury hotel walk out satisfied.
The top-rated hotel brands continue to be the Sheraton and Crowne Plaza, which both achieved a 91% customer satisfaction rating for the 12 months to October 2011, according to the Roy Morgan Research Hotel Customer Satisfaction Survey.
Both hotels improved their customer satisfaction rating from 84% and 87% respectively for the previous 12-month period.
Third position at 89% is shared by five hotels — Westin, Intercontinental, Hilton, Mantra and Marriott.
The greatest improvement in satisfaction was recorded for Golden Chain; at 88% it is up nine percentage points compared to the previous year.
Jane Ianniello, international director of tourism, travel and leisure at Roy Morgan Research, says customer satisfaction for most premium hotels has increased over the past 12 months. “By contrast, satisfaction for most mid-range and basic hotels and motels has remained steady and sometimes declined.”
This year offshore investors have snapped up a number of Australian CBD hotel offerings.
In August including Singapore-based  private investment firm Nadathur Fareast bought buying Tourast Corporations’ Constellation Hotels business, which includes management of over 60 hotels in Australia and New Zealand.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/hotelbrands.gif"><img src="/images/stories/hotelbrandsthumb.gif"></a>
US-based LaSalle Investment Management snapped up the 380-room Novotel Melbourne on Collins Street in the CBD for $204 million in early May just a week after US hospitality property group Host Hotels &amp; Resorts spent about $137 million for a 75% stake in the 396-room Hilton Melbourne South Wharf Hotel.
In February, Singapore investor Michael Kum added the one-year-old 275-room Travelodge in Melbourne’s Docklands to his hotel portfolio in February for a reported $54 million, and in January the prestigious 10-year-old 296-room Hilton Melbourne Airport Hotel was sold to Pan Pacific Hotels Group for $108.9 million. It was last sold in 2004 for $40 million.
NAB’s September quarter commercial property survey rated hotels as the top performing sector, despite its All Hotels Property Index (a measure of investor and market participant confidence in the sector) easing to +23 in September from+27 in the June quarter.
“Our own research indicates that CBD hotels are still out-performing non-CBD hotels, with stronger conditions in this market supported by a strong corporate and conference market and solid demand from Asian leisure travellers. 
“In contrast, conditions in the non-CBD hotels sector remain tougher because of the impact on domestic tourism from the high Australian dollar and relatively weak consumer confidence,” says NAB.
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Hotel investors can rest easy with improved satisfaction ratings

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Outspoken economist and consistent housing bubble denier Rory Robertson says those who continue to rent in the hope that prices will crash are backing the wrong horse.
Responding to commentary from <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/blowing-away-the-bubble-deniers/2011121652871" target="_blank">Deakin University academic Philip Soos that Australia</a> has a housing bubble, Robertson labelled him “a know-it-all preaching doom and gloom”.
Writing for academic blog The Conversation, Soos, a researcher at Deakin University's School of International and Political Studies, provides four key arguments that point to a housing crash in the near future.
Firstly, he provides numerous examples to show that not having non-recourse borrowing in Australia (as exists in some states in the US and other parts of the world) has little bearing on preventing a house price crash; secondly he says historically house prices in Australia have crashed eight out of the nine times after there have been housing bubbles; thirdly he says a housing shortage is not causing house prices to rise; and lastly says Australian banks have not been conservative lenders, which is why we have mortgage debt of $1.2 trillion.
Writing on Business Spectator, Robertson admits that the days of “easy capital gains” resulting from “the big structural downshift in inflation and nominal interest rates in the early 1990s and the big structural increase in credit availability as banks were deregulated” are over, but he denies that Australian households are excessively geared because “even now, only about one-third of households have a mortgage (one-third own outright and one-third rent)”.
“In any case, the fact that average home prices are unlikely to surge higher from here does not mean they are destined to collapse. With the one-off structural shift higher now complete, average home prices will tend to rise and subside in cycles over time,” Robertson says
“The most-likely scenario,” Robertson says, “is that real home prices will trend gradually higher over our lifetimes as real incomes rise, and two-thirds of our population continues to compete aggressively to live on the best-located bits of ground near the CBDs of our seven coastal capitals and Canberra.”
He says many of the “doomsters don't actually know very much about local housing and home lending markets, don't own their own home or – commonly – both”.
“Meanwhile, most everyday people choose to buy a home they can afford to fund with a mortgage; then show up to work and happily pay their mortgage for the next 25 to 30 years. Over time, they enjoy a secure home within which to raise kids, and later on have a buffer that protects them from poverty in old age,” he says.
“Ask the dopey bubblemen about how much of their old-age pensions will be left for living expenses (including tasty dog food?) once (expensive) rent is paid. If they had a clue, the know-it-alls would realise that the relative tightness of rental markets – capital-city rent increases have averaged 5.8% per annum over the past five years – is a hint they are barking up the wrong tree.”
“Good luck to those sitting ‘short’ and renting while waiting for home prices to collapse. Just make sure you don't hold your breath.”
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No such thing as an Australian housing bubble: Rory Robertson

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There was a distinct first-home buyers’ rush to the head over the spring months at Sydney auctions, according to data provided by Australian Property Monitors.
The auction success rate for auction offerings priced under the first-home buyer threshold of $600,000 improved while the clearance rate for offerings over $600,000 deteriorated.
"There was a spike in clearance rates at the entry level prices as a result of the state government's stamp duty announcement at the beginning of September," says Clint McNabb, research analyst at Australian Property Monitors.
"The state budget decision to cut the full stamp duty exemption on established homes by first-home buyers from January 2012 provided a small boost at the lower end of the market.
"But it has particularly benefited those vendors with offerings price from $500,000 to $600,000, at which the current exemption cuts out," he says.
<img src="/images/stories/clearance.gif">
Source: APM
He notes the middle of the Sydney market proved most resilient over the past year, and the government decision "provided a little extra boost which is evident in the clearance rate."
The clearance rate at the upper end of the market had fallen slightly, McNabb notes.
In spring 2010 auction clearances rates weakened across the board earlier in the year.
 
 
 
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First-home buyers propped up Sydney spring auction season: APM

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Mining markets are the golden key to economic growth in Australia right now, whereas industries such as tourism are taking a hit from the high Australian dollar. Knowing where to look in Australia for prime investment property takes a bit of due diligence, however there are plenty of fabulous opportunities for the taking, provided an investor knows what he or she is looking for. For example, rising wages are a key factor to search for when seeking a great investment area. This is due to the fact that rising wages are strongly tied to rising property values.

Certainly we're going to invest where rents are going to grow, where populations are going to grow, where unemployment is low, and where certainly wages are going to grow. We're also going to buy where supply and demand is not keeping up, and so these opportunities are in Australia and not necessarily in the rest of the world.

The mining boom we're experiencing now is, essentially, the biggest in our nation's history and it's really set about because we're now intrinsically linked to the Asian marketplaces. We're more aligned with these marketplaces, putting us in a fantastic position as there's really limited times that China and India will stop building over the next 20 years.

The result of our connection with Asia through the mining markets will be higher wages in Australia. The next 20 years of property to me seem pretty good. Of course it's not necessarily all rosy, and I'll show you some other speeds to the economy so you can get a better understanding of where not to invest. 

To show just how huge the impact the mining markets have had on the economy, consider a measure created by HSBC. Some 10 years ago or even 6 years ago, they were measuring 1 ton of iron ore and converting that into what we tend to buy. The example they chose was a flat screen TV.

One ton of iron ore, back six or seven years ago, when the Australian dollar was lower and commodity prices were lower, was essentially worth 2,200 flat screen TVs. As you will remember, back then a flat screen would set you back about $10,000. Today you can pick yourself up a flat screen TV for about $800 bucks. So today's measurement of 1 ton of iron ore is about 22,000 flat screen TVs. This is a result of a mixture of high commodity prices and the high Australian dollar.

Never before in the history of Australia has our arbitrage or what we own been worth so much compared to what we have to buy, and it's such a unique opportunity and a very prosperous opportunity that Australia needs to take advantage of.

The Australian dollar is higher at the moment, and that's obviously not necessarily great for people exporting, but essentially imports are cheaper.  The Australian dollar has been higher than what it is right now, but it's never been this high since it's inaugural flight back in the ’80s. 

I don't necessarily see that this will change very soon. It's not all a bed of roses, there's certainly some data coming out which does show a two speed economy. 

If we were like New Zealand, that doesn't really have that much mining activity, and we relied on say dairy and meat, we would soon be very similar to those economic countries that don't fuel the engine for the great powers of India and China, and as you can see in the chart below, the line essentially dips and we would no doubt be in a far more recessive environment if it wasn't for the opportunity of the mining markets.
<img src="/images/stories/nonmining.gif">
<shapetype coordsize="21600,21600" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"><stroke joinstyle="miter"><formulas><f eqn="if lineDrawn pixelLineWidth 0"><f eqn="sum @0 1 0"><f eqn="sum 0 0 @1"><f eqn="prod @2 1 2"><f eqn="prod @3 21600 pixelWidth"><f eqn="prod @3 21600 pixelHeight"><f eqn="sum @0 0 1"><f eqn="prod @6 1 2"><f eqn="prod @7 21600 pixelWidth"><f eqn="sum @8 21600 0"><f eqn="prod @7 21600 pixelHeight"><f eqn="sum @10 21600 0"></f></f></f></f></f></f></f></f></f></f></f></f></formulas><path gradientshapeok="t"><lock aspectratio="t"></lock></path></stroke></shapetype><shape filled="t"><imagedata src="cid:image010.jpg@01CCB99C.3EF5E1C0"><wrap side="largest"></wrap></imagedata></shape>So the mining markets have made a bit of a resurgence, and they're always typically very small areas where the mines are located and so they create great little pockets of buying opportunities. 

Of course some of the capital cities that link to these mining markets also create great pockets of opportunity. Places like Perth and places like Brisbane are fast becoming the global offices for the mining market sector.

So we're going to see the re-emergence of these marketplaces. Brisbane is certainly going to be the first cab off the rank. We've got some great economic data which has just come out to support the fact that Brisbane is really at the bottom of the market, but recovery is so close now, that buying in that particular marketplace is going to be a very strategic investment. 

We saw during the GFC that the Victorian market and the New South Wales markets do very well, yet the mining markets suffered – Queensland and Western Australia – all those particular marketplaces suffered. 

As interest rates were reduced, the masses bought real estate just after the GFC, in fact we're at a 5% variable interest rate and that'll add a lot of people, where there's millions of people in Sydney and Melbourne to jump into the markets and fuel great growth, but in the less populated states it didn't have that impact, but we're going to see that impact into the future.

The business sentiment is weaker, but the reserve bank has stepped in and they've restored a bit of parity back into the markets by reducing their interest rates and the banks have passed that on which is great.

Over the next 12 months, they're predicting more reductions around the interest rate sector, which could be great for creating a bit of urgency when it comes to buying.
 
<hr class="system-pagebreak">
 
Tourism

There are certainly some issues when it comes to buying in certain marketplaces, and these marketplaces I don't particularly want to buy real estate in at the moment, and they tend to be areas where the sole industry in Australia is tourism. 

Because of the high Australian dollar, we are actually losing more tourists than what we're gaining,  and this is a phenomenon that hasn't occurred since the early 80s. In fact we used to get 120,000 visitors to our shores every month - of course these visitors would bring money from their country and spend it on consumables in our country. Today, we're not getting that 120,000 and in fact because of the high Australian dollar, 120,000 more Australians are actually not holidaying at home, but going abroad to spend their money.

The problem though for areas that are reliant solely on tourists, is that there isn't any pressure on wages, and without pressure on wages there tends to be limited opportunities for properties to grow, and we're seeing that in some places, which solely rely upon tourism, that they defy the employment trend and have employment figures closer to 10%. 

When there's higher unemployment, and an industry that typically has lower wages, which travel and tourism do, compared to say the mining sector, there isn't the ability for a market to push on.

Until there's going to be a turnaround in the amount of tourists that stay on shore and the amount of tourists that visit our country, those particular industries will remain very weak indeed, and that will be reflected in those particular housing prices.

We want to find the industries with the higher wages, and the mining companies are essentially paying the higher wages, and so it's going to be quite interesting when we look at the profits at the moment, compared to that of say 1995, which really is only 16 years ago. 

The profits that the mining companies are making now, are twice that of what they were making 16 years ago, which is fantastic - it allows them to share that dividend with the people who work for them, and of course it opens the debate of should there be a mining tax or not, because the mining companies are doing very well.

Obviously then, without the mining companies, the economy wouldn't be doing so well. 

Another thing about mining companies is they don't borrow money off banks – they are essentially cashed up to the hilt, so whenever they make a decision or make money, they're not making it from a point of leverage, they're actually making it from a pure cash position.

This fact always makes them very appetizing as say a blue-chip stock. If we can follow those blue chip stocks, and link the blue-chip companies who are building, or creating mines, then it makes a lot of sense to buy real estate in some of those areas.

Australia has historically low unemployment, one can understand the Reserve Bank worrying us about reducing rates, and 2011 has been a year which they've had to weigh up essentially a thriving economy – a two-speed economy, linkage to the Asian marketplaces and of course the USA and the European debt crisis. 

So when there's low unemployment – around 5% unemployment – inflation increases…you can understand why the Reserve Bank really was on tenterhooks for some time. In fact we didn't really see any great fluctuations for something like 11 consecutive months, so eventually rates have been reduced, not because of our own country's inability to grow, but because we are safeguarding it from the forces of what is going to happen in Europe. 

Europe is essentially a bit of a basket case at the moment, and we are able to stimulate our market forces because we keep our interest rates quite high compared to the rest of the world. So you've just got to ask yourself, when trouble comes along and we're at a 7% interest rate, the RBA says okay, let's drop that to 6% .

By dropping it to 6% and if the banks follow suit, there's a load of relief into the marketplace, and so we've got, I guess an economy right now that if it were 7 gears to it, and we are at a 7% interest rate, we could essentially drop the gear back 7 times, which is far more sound than say our North Atlantic counterparts who really can't adjust their interest rates very much – especially if they had to drop them much more, there wouldn't be an ability for the banks to get a return on their money. 



Funding Issues

The toughest thing that is occurring in the property market, and in other industries, is bank funding problems. In general, it's a potential risk; however it's been fairly benign. We've all had a poor valuation happen, or a bank knock us back because our documents aren't right, and we've seen limited load-up lending, lower LVRs – we've seen all that. 

Essentially we can deal with it – it takes a little bit more care, it takes a little bit more psychology to understand that there are bigger forces at play than essentially we may believe, and as we go through, and lending is tight, it's the only thing we have to deal with to buy real estate. I don't mind the fact that lending's tight, however, because I would prefer that to the lending habits that have seen European and American economies fall in such a poor state. 

It's tough to lend or borrow money, but that's how it should be – people shouldn't just be given money without the ability to pay money back and unfortunately we've seen that overseas.

Interest rates are going down, and that is a good thing. 2012 will see interest rate cuts. As we've seen just earlier this month the RBA cut rates again by .25%, in order to help a fledging retail sector of the economy – provide a bit of a stimulus over the Christmas period, rather than wait till after Christmas.

As the next two years unfold, I don't see that there's going to be any changes. I believe that we're going to have challenges. Every time we buy a property there's going to be potentially a valuation challenge, all that has to happen is you need to resubmit and you need to find a bank that allows you to resubmit and do it again, and so forth. It's just the way it is, I can't help it, and the market is dictating that.
Sam Saggers is CEO of<a href="https://www.positiverealestate.com.au/ME2/Sites/Default.asp?SiteID=697F1E57F8A54C7F9582C3C49417EEC4" target="_blank"> Positive Real Estate.</a>
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