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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London’s iconic Admiralty Arch is being sold by the UK government through Savills with reported hopes of more than £75 million.
Plans to sell the long leasehold interest in the building were announced in November as part of a bid to levy funds from the government’s property portfolio, saying the building was no longer suitable for modern office working practices.
The building lies on the south-west corner of Trafalgar Square and acts as the entrance to The Mall, which leads to Buckingham Palace.
The 13,685-square-metre building was most recently home to the Ministry of Defence and the Cabinet Office.
“This is a world-famous historic property in a prime central London location and will be of substantial interest to a wide range of organisations and investors,” says Savills director of Savills Robert Seabrook.
The building was originally commissioned by King Edward VII as a tribute to his mother and was completed in 1912 after his death.
The arch was designed by the architect Sir Aston Webb and built by John Mowlem and Co, now owned by construction giants Carillion.
The government says its objective is to protect the building’s heritage and enable public access, meaning it might not go to the highest cash bidder.
The move is part of austerity measures in the UK where civil servants have exited 36 property holdings in central London since last year’s election, reportedly saving more than £90 million.
 
 
 
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Admiralty Arch, a piece of London's history, up for sale

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Rents in mining towns in the Pilbara region of Western Australia are among the highest in Australia, with often modest and uninspiring houses asking exorbitant rents, especially when you consider what you’d get for about the same price in the prestige suburbs on Sydney Harbour and Melbourne’s south east. Following on from our list of <a target="_blank" href="https://www.propertyobserver.com.au/residential/pilbara-mining-rents-the-seven-most-expensive-wa-boom-towns/2011113052624?source=flicker1">the seven most expensive WA boom towns</a>, we’ve picked out some Pilbara houses up for rent and compared them with what you could rent in Sydney and Melbourne in a similar price bracket:
Less than $1,000 per week
Wickham, Karratha (yields 10% to 12%)
<img src="/images/stories/wickam.jpg">
There are just three properties listed for rent at under $1,000 per week across the suburbs of Karratha, Port Hedland and Dampier, according to real estate.com.au. This is the only house – a three-bedroom property in Wickham, a suburb of Karratha asking $750 per week and listed by <a target="_blank" href="https://www.realestate.com.au/property-house-wa-wickham-406157401">Dianne Huggins from North West Realty – Karratha</a>.

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; text-align: center; background-position: initial initial; background-repeat: initial initial;"> Woolloomooloo, Sydney (yield 3.8%)        

<img src="/images/stories/cowper.jpg">
For $700 per week, you can rent a one-bedroom apartment with views over Garden Island on Cowper Wharf Road listed by <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-woolloomooloo-406362706">Kerry Madeheim Morton and Morton Woolloomooloo</a>
Carlton, Melbourne (yield 3.2%)

 
<img src="/images/stories/rathdowne.jpg">
This three-bedroom <a target="_blank" href="https://www.realestate.com.au/property-house-vic-carlton-406363396">Victorian Terrace on Rathdowne Street</a> is available to rent at $700 per week listed by Claire Spence listed by Nelson Alexander Real Estate Fitzroy.
$1,001 to $2,000 per week

South Hedland (yield 10.2%)

<img src="/images/stories/southheadland.jpg">
This raised three-bedroom, one-bathroom property on Pedlar Street is asking weekly rent of $1,400, exactly the median rent for South Hedland.  It is listed by <a target="_blank" href="https://www.realestate.com.au/property-house-wa-south+hedland-406210456">Ashlee Morris from Hedland First National Port Hedland</a>. A three-bedroom property recently sold on the same street for $795,000, reflecting a yield on this weekly rent of 9.16%

Balwyn North, Melbourne (Yield 2.3%)

<img src="/images/stories/balwynnorth.jpg">
Asking $1,950 per week, this five-bedroom European-influenced fully furnished house includes a grand entrance with staircase and a formal dining room with ornamental open fireplace and is listed by <a target="_blank" href="https://www.domain.com.au/Property/For-Rent/House/VIC/Balwyn-North/?adid=7329519">Cherie Leman from Fletchers Canterbury</a>
$2,001 to $3,000 per week
Port Hedland (yield 10.72%)
<img src="/images/stories/porthead.jpg">
This three-bedroom house with palm trees on McPherson Street, <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/53-mcpherson-street-port-hedland/Property-Details-rent-residential-3275273">currently under application at $2,700 per week, is listed by Joanne John from Crawford Realty</a>.  A nearby five-bedroom property at 58 McPherson Street was sold by John Briggs of Port Hedland Real Estate for $1.31 million in February this year. At a weekly rent of $2,700 this would equate to a yield of 10.72%.
Balwyn, Melbourne (yield 2.3%)
<img src="/images/stories/balwyn.jpg">
Asking $2,900 per week, this-four bedroom Mediterranean-style house is set in manicured fountained gardens. The property is listed through <a target="_blank" href="https://www.domain.com.au/Public/AgentProfile.aspx?mode=sell&amp;agencyID=17215&amp;adid=7301607">Thomas Moreland Real Estate</a>
Pyrmont, Sydney (yield 3.7%)

<img src="/images/stories/pyrmont.jpg">
Available to rent at $2,800 per week is this <a href="https://www.realestate.com.au/property-house-nsw-pyrmont-405965851">three-bedroom Pyrmont apartment listed by Gerard Marino from Morton and Morton Pyrmont</a>. The apartment features expansive 270-degree views across Sydney Harbour, the city, Harbour Bridge and Blackwattle Bay, and it has a huge balcony and air-conditioning.
More than $3,000 per week
Baynton West, Karratha, Pilbara (yield 9.9%)
<img src="/images/stories/karatha.jpg">
Asking $3,400 per week, this four-bedroom, four-bathroom home features a swimming pool, corner pantry and powder room. <a title="Visit " href="https://www.realestateview.com.au/Real-Estate/karratha/Property-Details-rent-residential-3411403">The property is listed through Pilbara Real Estate</a>.
Toorak, Melbourne (yield 2.1%)
<img src="/images/stories/toorak.jpg"> 
Asking $3,500 per week, this five-bedroom family home includes “resort-style” facilities including gas- and solar-heated swimming pool, tennis court, trampoline and deck area with built-in barbecue. <a href="https://www.domain.com.au/Property/For-Rent/House/VIC/Toorak/?adid=7290687">It is listed by Hayley Mitchell from Mitchell Property Management</a>
Elizabeth Bay, Sydney (yield 4.8%) 
<img src="/images/stories/elizabethbay.jpg">
Asking $3,500 per week, this five-bedroom waterfront apartment is set over 390 square metres and has been fully restored. It includes and entrance with cathedral high, ornate designed ceilings and an imposing formal lounge with bay window, and a separate dining room<a href="https://www.domain.com.au/Property/For-Rent/Apartment-Unit-Flat/NSW/Elizabeth-Bay/?adid=7322405">. It is listed through Jenni Favas from Morton and Morton</a>
 
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Hefty residential rentals in the booming Pilbara rivalling the east coast's wealthy suburbs

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As we look back on 2011, Property Observer is republishing some of our most noteworthy stories of the year.
 
Supply and demand are important factors in the performance of our property markets, and currently we have subdued demand and an oversupply of properties. 
This means that our property markets are likely to remain flat for much of 2012. 
Recently <a target="_blank" href="https://www.rpdata.com/">RP Data</a> reported that based on the current rate of sales and total number of homes being advertised for sale, the Australian residential market has 7.4 months of effective housing supply overhanging it. 
What does this mean? I know some commentators are suggesting we have a shortage of properties, but I don’t necessarily agree. 
You see, there are two ways to measure supply in the residential marketplace:  “core supply” and “effective supply”. 
RP Data explains that “core supply” is the difference between base level demand (i.e. population growth) and base level supply (i.e. new dwelling construction). And this is what many commentators are measuring. 
“Effective supply”, which measures the number of months it would take to sell all the properties listed for sale based on the current rate of sales, seems a better way of measuring what’s really going on. 
So what’s really going on? Across our nation’s capital cities, the effective supply of properties is currently recorded at 5.8 months, and nationally that level stands at 7.4 months. In other words, there is an even bigger oversupply in regional areas. 
Digging deeper into the numbers shows that sales volumes are at similar levels to those recorded 12 months ago, which means that supply levels are being driven higher by a greater amount of stock available for sale rather than fewer people buying properties. 
How does this compare with the past? Not surprisingly, things are worse than they were a year ago when our combined capital cities had an effective supply of 4.5 months of stock and nationally there was an effective supply of 5.6 months. 
These results suggest that current effective supply levels are well above average. 
Since the beginning of 2007 the effective supply level across the capital city markets has averaged at 3.9 months and reached a high point of 6.5 months in January of this year. 
Record number of listings Currently the number of homes for sale is at near-record high levels. There are 26.4% more houses for sale this year than there were at the same time last year, and it’s not because more people are putting their homes up for sale. 
The increase in listings is almost entirely being driven by rising levels of re-listings, which is indicative of slowing market conditions and the <a target="_blank" href="/news">longer length of time it is taking to sell a home</a>. 
Around the nation As expected, the oversupply situation varies from region to region. 
In each capital city and state except for Perth and Western Australia the months of supply figure is currently higher than it was at the same time last year, indicating that selling conditions have deteriorated. 
Canberra has the lowest current effective supply at 3.6 months while Brisbane has the greatest effective supply recorded at 8.8 months. 
Melbourne has 5.3 months’ supply, Sydney 5.1 months’ supply, Adelaide 6.4, Perth 6.1 and Darwin 6.3 months’ supply of properties on the market. 
My thoughts:'
 This extra supply of properties available at a time when buyers are standing on the sidelines waiting to see how matters pan out suggests that our property markets are likely to languish, at least in the first half of 2012. 
The November and December drops in interest rates have boosted consumer confidence a little, but not enough to move our property markets. Not with all the uncertainty about how the problems in Europe will affect us. 
Some Australians are still hesitant to buy residential property due to expectations of falling housing prices. 
For property prices to start rising, consumer confidence is going to have to increase and the oversupply of properties is going to have to be taken up. 
Of course we don’t have “one” property market in Australia and there are still some areas where prices are moving up slightly, but they are far outnumbered by suburbs where prices are stagnant or falling. 
No property collapse in sight
But don’t misunderstand me – there is no suggestion that our property markets are going to collapse. The underlying fundamentals will underpin our property markets. 
1. Interest rates are likely to drop once or twice more next year.
2. Vacancy rates are low and rents are rising.
3.  Unemployment is falling and wages are rising.
4. Consumer confidence is slowly returning and the spectre of a number of interest rate rises that we expected earlier in the year has disappeared. 
The bottom line is that there is still a large demand for housing – people are still getting married, having babies, getting divorced and coming from overseas. And if they can’t afford to buy their homes they are going to rent, and this will force rentals up. 
Over the next six months we’ll move into the stabilisation phase of the property cycle where values might only grow a few percentage points higher than inflation for a few years, but it’s a time when investors will be compensated by higher rents. 
As I’ve explained, it is important to recognise that there is not one “Australian housing market”. 
Capital city and regional housing markets are performing differently and even in each capital city markets are segmented according to the impact of the various supply and demand dynamics on different price points and in different geographic locations. 
Of course, as it is a buyers’ market, informed home buyers and investors will be able to pick up great properties below their intrinsic value if they do their research properly and negotiate wisely. 
This is also a great time to buy properties to which you can add value through renovations and manufacture some capital growth. 
And when buyers look back in a few years they’ll wonder why they didn’t buy more properties while others were waiting for the bubble to burst.
 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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Oversupplied property markets to remain flat in 2012 - but there is opportunity for investors

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We are in a phony war with bank mortgage and interest rate cuts, which, if it was happening in a fortnight, would be on a par with the search for Big Foot, the Penrith Panther or the Nullarbor Nymph.
Yes, the big four?—?CBA, ANZ, Westpac and NAB?—?are sitting back and waiting for one of them to bolt from cover, so the others can get a lead on how much of the 0.25% rate cut to pass on. (Isn’t that price signalling? You can bet that the ACCC is watching closely.)
The tip is that the NAB will break cover soon with a rate cut of about 0.15% to 0.2% (it only passed on 0.2% of the 0.25% November 1 cut, remember). The NAB has been lending more than the others and has led the move to eliminate some of its income streams by getting rid of some fees and charges, so its finances are said to be the weakest.
The cupidity of the big four banks on the issue of rate cuts and rises has already been exposed on two fronts: two smaller banks, Bank of Queensland and ME (Members Equity) have already passed the cut on in full, even though they do face higher costs for raising funds locally (being smaller and carrying lower credit ratings than the big four.
And, what the media conveniently forgets is that big four banks all have past form.
It’s not new news if they big four don’t pass on all the 0.25% cut. For example, in April 2009 during the global financial crisis?—?three eventually passed on only 0.10% of the 0.25%, while one passed on nothing.
And remember how the big four boosted their mortgage rates by more than the 0.25% rise in November 2010? How quickly we all forget. A reminder: the CBA and ANZ lifted mortgage rates by 45 and 39 basis points, respectively follwoing the Melbourne Cup day rate rise in 2010. The NAB lifted its standard variable mortgage rate by 0.43% and Westpac by 0.35%.
So we know all banks are bastards. It’s not a new story.
And there are a couple of other points to be made: the cuts won’t have all that great an impact on mortgage holders because, asCrikey pointed out last month, well over half of them repay more than they have to each month, thereby building up equity at an even faster rate than they were doing a year ago. The banks get their money back faster and people will own their houses a bit quicker and newer mortgage holders will find the pressure easing, if they cut their repayments. But most won’t.
And what about savers: they will get less for their term deposits as they rollover (that’s called “rollover risk” at the big end of the market) and will get lower rates on their transaction accounts. For people on fixed incomes, its another blow, and yet you don’t hear much about that and the media only covers mortgage holders (is that because many in the media have mortgages). The damage is greatest among older bank account holders and pensioners.
And you can bet that the banks will be quick to cut deposit rates, and slow to cut rates charged on credit cards and loans to business: all in the name of boosting what’s called their net interest margin and improving their bottom lines.
There’s a large element of churlishness and “let them eat cake” from the big four if you look at recent history.
One of the real achievements of the GFC so far as Australia is concerned, is that we managed to save our banks the ignominy of reporting big losses or worse. Sure Bank West (owned by a crippled UK bank) and St George, were allowed to be taken over by the CBA and Westpac respectively (which hasn’t done wonders for Westpac’s earnings since 2008-09), but a combination of timely Reserve Bank action, the federal government loan guarantees and the financial claims mechanism convinced customers not to do what their counterparts had done to Northern Rock in the UK or countless UK banks, and stage a confidence-sapping run that forces a government bailout.
The federal government (that’s us, the taxpayers), will earn more than $5 billion from the loan guarantee fee by the time this financial year is up and the Reserve Bank also made hundreds of millions of dollars from doing deals with the big banks in the final quarter of 2008 and early in 2009 to maintain liquidity levels in the financial system.
Despite that move, ordinary Australians and small and medium businesses (and no doubt some larger ones) quietly withdrew billions of dollars (over $10 billion by some estimates on top of normal needs) in the closing months of 2008 and early 2009. By June 30, 2009 the number of bank notes on issue was still up 14.3% from the year before, an indication of large the silent run had been. But that didn’t cripple the banks because confidence was maintained as much of that cash was returned to the banks as 2009 went on.
That confidence was supported and nurtured by the federal government and the Reserve Bank, in other words, taxpayers supported the banks and the financial system and saved a lot of loss and anguish for everyone concerned.Three years on the world is facing another crisis, this time in Europe. It is nowhere near as dangerous as the sudden near collapse in 2008 that was sparked by the failure of Lehman Brothers and the US subprime crisis crunching banks, businesses and economies around the world in the space of two months. But it is a growing concern.
Banks throughout Europe have badly hurt this time around, but in the US, Australia, the banks are OK, except for a rise in short-term funding costs, which is normal as investors worry about the safety of the banks they are lending money to.
One of the key indicators to watch is the amount of money held in Exchange Settlement Accounts at the Reserve Bank by banks and other financial groups eligible to do so. If the amount starts rising, its a sign the banks are starting to worry about the safety of the financial system and lending to their peers, so they start leaving as much as they can with the RBA in these special accounts where it is safe.
In the 2008-09 crisis it soared to well over $16 billion on one day (December 22, 2008) as the RBA allowed banks to do so (and then siphoned off much of that into special term deposits).
This time around, there’s been no change at all, the ESAs at the Reserve Bank have been at normal levels for months on end, there’s just no sign of nerves among our banks and financial groups, unlike Europe.
At the same time our banks are healthier than they were in late 2008, much of the dodgy debts have gone, poor loans have been written down or expensed and the banks have raised tens of billions of dollars in new capital to strengthen their balance sheets. That’s why last week’s one-notch downgrade for the big four by Standard &amp; Poor’s to AA minus was a storm in a teacup.
A senior RBA official pointed out in <a href="https://www.rba.gov.au/speeches/2011/sp-ag-211111" target="_blank">a speech</a> last month that the banks have cut back their exposure to offshore funding since 2007 and lifted their harvesting of domestic deposits: ”In Australia, since mid-2007, deposits have grown at an annualised pace of 11%, compared with credit growth of 5%. As a result, while the level of wholesale issuance by Australian banks in 2011 is about the same as that in 2007, it is a significantly smaller share of total bank funding.”
That has reduced their exposure to Europe, but with the US market still open, its nowhere near the problem of three years ago this month. The big four have cut the amount of offshore funding in the past year because of the strong rise of domestic deposits as the Australian savings rate has steadied around 10% to 10.5%. That has helped the banks maintain their interest margins, even though they started offering relatively high interest rates on deposits.
Those are falling, thanks to the fall in market yields as investors have factored in RBA rate cuts and foreign buyers have plunged into Australian government bonds and state government securities, attracted by our AAA rating and secure and steady financial system. But listen to the banks in recent weeks and their lobbyists and they are facing higher levels of danger and costs.
Given what happened three years ago, that’s rubbish, but don’t think that the current stand-off is something new. It isn’t and we are going to see similar situations time and again.
 
This article originally appeared on <a target="_blank" href="https://www.crikey.com.au/">Crikey</a>.
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Mortgage, interest rate cuts war as serious as the Nullarbor Nymph

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As the major banks continue to hold off on making interest rate decisions, Heritage Bank has joined <a href="/news">Bank of Queensland</a> and <a href="/news">ME Bank</a> by passing on the full 25-basis-point rate cut to its borrowers.
Heritage’s discount variable mortgage rate will now drop to 6.35% from 6.6% and the standard variable mortgage rate will drop to 6.94%, down from 7.19%. The reductions will be effective from December 16. CEO John Minz says passing on the full interest rate reduction is the right thing to do by its members. “With Christmas just around the corner, many of our members are facing added expenses. Passing on the full RBA cut on our variable home loan rates will help make their festive season just that little bit less stressful.” Minz says the rate cut was a concrete demonstration that the change of name to Heritage Bank last week (from Heritage Building Society) had not changed Heritage’s focus on the interests of members. “We remain absolutely committed to ensuring we deliver the best value possible to members,” he says. “At Heritage, we’re not about generating the biggest profits we can. We’re all about the best interests of our members and the communities in which they live.”
 
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Heritage Bank third lender to pass on full RBA rate cut

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Anyone who has been monitoring their Twitter accounts today will sense the growing anger at the Big Four banks, which have taken more than a day to decide how much of the RBA’s 25-basis-point cash rate cut to pass on to consumers.
Borrowers by now may have given up hope that the major banks will deliver real Christmas cheer.
More than 26 hours have passed since the RBA announced it would cut the cash rate to 4.25%. The last time the Big Four took this long was in April 2009, when the major banks took almost as long to announce their interest rate cuts after the RBA cut interest rates by 0.25%.
On that occasion, NAB was the one to “move” first – it decided to pass on none (that’s right, zilch) of the 25 basis points leading to the bank taking a huge media bashing.
Of course all the other banks then followed, and though they all passed on a meagre 10 basis points, that did not cop the same level of brand damage or public outrage as NAB was subjected to.
Today, as many commentators and analysts have pointed out, none of the banks wants to go first on making an announcement because a) they will set the benchmark that the others will only have to beat by a few basis points to avoid copping most of the flak and b) whoever moves first is likely to suffer the greatest brand damage, (provided the other banks beat their rate cut of course).
As I write, behind closed doors, the banks are carefully crafting the lines they are guaranteed to spin out about increased funding costs and European jitters that will accompany eventual announcements.
(None, though, are likely to try emulate Westpac’s disastrous attempt to explain it not passing on a full rate cut in December 2009 by putting together an animated video about banana smoothies and the cost of bananas.)
Even if borrowers must swallow the explanation that funding costs have gone up, it is also undoubtedly true that the major banks are looking to protect shareholder returns (and as Age columnist Michael West pointed out, protect executive pay bonuses).
And of course there is also the little matter of the vicious mortgage discounting war they have been engaged in over the past few months, which as JP Morgan banking analyst Scott Manning has pointed out recently, has reached a stage where the discounts are impacting on their bottom line – meaning the banks need to do something to increase their margins. Their delay in making an announcement is likely to only insight more bank bashing and angry tweeting.
However, the question is: will they vote with their feet and switch lenders as Treasurer Wayne Swan has now made much easier to do?
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Borrowers' anger grows as Big Four banks dither on passing on rate cut

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The Australian construction industry continued to decline in November but at a more moderated pace, according the latest report by the Australian Industry Group and the Housing Industry Association.
The performance of construction index increased 4.9 points to 39.6 in November, still short of the 50-point level that distinguishes contraction from growth.
The increase represents a reduction in the rate of decline of both house building and engineering construction but commercial construction and apartment building activity declined at a steeper rate.
"The construction sector remains very uneven with the residential and commercial construction sub-sectors considerably weaker relative to the resources-project linked engineering construction sub-sector,” says Australian Industry Group director of public policy Peter Burn.
“Commercial construction continues to contract and businesses completing projects related to the fiscal stimulus package are not finding sufficient private sector work to keep fully occupied.  While still far from satisfactory, the sector overall appears to be pulling back from the accelerating pace of decline reached in August and September," Burn says.
There were reports of an improvement in workflows from resource-based projects and a rise in customer enquiries in the house building sector linked to the positive influence of the recent interest rate reduction, the report found.
New orders again declined across the industry, although the rate of contraction was the slowest in six months. Consistent with this, falls in activity, supplier deliveries and employment all moderated, the report found.
Senior economist at Housing Industry Association Andrew Harvey used the report to call for further stimulus of the construction industry.
"[The report] again highlights the current fragile state of residential building with activity continuing to contract and looking a long way from an eventual return to growth,” Harvey says.
“There’s no hiding from the fact that house building activity has contracted for 18 straight months and apartment building activity has now contracted for 19 straight months.
“When you consider this long-lived decline in residential building activity alongside recent dismal building approvals it is clear that the federal government needs to urgently turn its attention to stimulating new home building in this country.”
 
 
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Construction industry decline slowing: AIG

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Economic and housing predictions for 2012: Craig James

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The mortgage market appears to be on the mend, with investors and first-home buyers leading the charge, according to RBA’ s December chart pack.
<img src="/images/stories/rbadec71.gif">
An “unofficial” increase in mortgage demand was noted by <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=AFG+property+observer&amp;source=web&amp;cd=1&amp;ved=0CB8QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fafg-mortgage-approvals-at-33-month-high-as-investors-return-to-the-market&amp;ei=oLneTuOLM4W0iQftxqC_BQ&amp;usg=AFQjCNHqGZoAoB0RZMSkO1IySPU5uZH1zA&amp;sig2=ZDBvFZY5L0q3qMPxVXaC6A">mortgage broker AFG in its November sales numbers</a>, which spiked by 18% led by investors and first home buyers.
The growing demand for home loans comes as house prices continue to fall across all markets, though Sydney prices are flattening out as this chart shows:
<img src="/images/stories/rbadec72.gif">
Alongside cheaper house prices and a growing demand for mortgages, there has also been a slight drop in the amount of money people are saving:
<img src="/images/stories/rbadec73.gif">
The poor outlook for the residential construction sector – particurlarly for detached houses – can be seen in this chart:
<img src="/images/stories/rbadec74.gif">
 
 
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RBA charts: Investors and first-home buyers returning to the market

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The appeal of 7-Eleven service stations has not diminished, with a Mount Druitt store in NSW selling for $4.04 million as part of a Burgess Rawson commercial property portfolio auction in Sydney yesterday.
The sale to a Victorian buyer was negotiated soon after the auction with the sale prices reflecting a yield of 7.8% on income of $316,000.
This is in the upper range of yields achieved for 7-Eleven service stations for 2011.
About <a href="https://www.propertyobserver.com.au/retail/sales-of-7-elevens-during-2011-secure-investors-yields-of-between-4.6-and-8.5/2011112752554">$90 million worth of refurbished 7-Eleven service stations across NSW and Victoria have changed hands this year, with yields ranging from 4.6% to 8.5%.</a>
The 2,500-square-metre Mount Druitt store, located at 2 Luxford Road, was sold by a private investor and is not part of the portfolio being sold in batches by 7-Eleven and acquired from Mobil in May 2010.
It sold with a new 15-year lease that commences in January 2012 with two renewal options of five years each. It is leased to 7-Eleven with fixed 4% annual rent increases.
Charles Gonzalez from Burgess Rawson, which marketed and auctioned the 7-Eleven, says there was strong interest in the property at what was a well- attended auction.
Other properties to sell under the hammer include three retail shops in Cabramatta in Sydney’s west.
The property was bought by one of the tenants for $1.53 million, with Gonzales noting that this was $200,000 above the reserve.
With annual income of $161,000 this reflects a yield of 10.6%.
The property is leased to a pharmacy, doctor’s surgery and mini-supermarket.
 
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