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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Melbourne’s retail sector is struggling through its toughest period since the 1960s, according to the December Herron Todd White property market report, with retail landlords letting outside the main retail strips the most affected.
According to October ABS statistics, the national annual growth rate in retail sales is 2.8%, equating to the worst growth since 1962.  Retail sales rose 0.6% in Victoria on a seasonally adjusted basis in October, having registered no growth in September, increases of just 0.3% and 0.5% in August and July and decreases of 0.3% and 1% in June and May.
Under these tough trading conditions,  HTW reports that the Victorian Small Business Commissioner has witnessed a “substantial increase in rental dispute resolution enquiries in 2011” as an increasing number of tenants found it difficult to meet their lease obligations.
“It appears that retailers who are positioned outside the main retail strips with limited exposure are most affected when there is a downturn in retail trade levels,” says HTW.
The report warns that should consumer spending continue to weaken rents might fall, which could lead to a softening in capital values into 2012.
Among the retail strips outside Melbourne CBD hardest hit has been Bridge Road, Richmond, where the vacancy rate has risen to 10.6% by mid-2011.
“[Bridge Road] has been traditionally been known for its discount stores and now has to compete with the likes of the Direct Factory Outlets and other large-scale suburban shopping centres,” says HTW.
According to the report, the exception has been well-placed retailers located in within prominent strips within Melbourne.
“Swanston Street in the Melbourne CBD, Glenferrie Road, Hawthorn and Chapel Street, South Yarra are good examples of resilient retail destinations in 2011.”
“Despite the tough retail environment, real estate agents have reported strong transactional activity, and Melbourne’s appetite for retail property is expected to remain strong in the short term,” HTW says.
“Prime Melbourne retail is very much still in high demand whilst secondary retail is perhaps harder to lease/sell.”
Large retail sales for 2011 include a two-level, freehold retail building at 269 Swanston Street, which sold in March 2011 for $6.5 million, reflecting an investment yield of 3.12% and a 20-square-metre lot on Swanston Street that sold for $2.11 million, reflected a rate per square metre of $105,500.
Outside of the CBD, leasing activity has picked up on Chapel Street, with Mexican food retailer Salsa’s taking up space in the Jam Factory. The deal was negotiated by Max Cookes and Zelman Ainsworth from CBRE retail services.
According to Cookes, the major rejuvenation of the centre has been a key attraction for Salsa’s.
Salsa joins major international and national retailers that have secured a presence within the centre including fashion heavyweight Topshop, which secured a 1,600-square-metre space within the Jam Factory for its Australian launch and is due to open this week.
Other retailers to join the centre include Lindt, Groove Train, Steve Madden, Target Urban and Nandos.
One of the previous anchor tenants of the Jam Factory was Borders Books, whose vacated space has been taken up by Topshop.
In its report, HTW said the collapse of Borders, fellow book chain Angus and Robertson and fashion chain Colorado in 2011 might have been the result of the inability of tenants to maintain current rental levels when faced with diminishing turnover.
Photo by Anna Armstrong
 
 
 
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lschlesinger-FZcF9M3vE6

Return to the '60s for Melbourne retail market: HTW

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<table width="255" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
postcode
</td>
<td valign="bottom" nowrap width="89">
suburb
</td>
<td valign="bottom" nowrap width="97">
Median unit price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2912
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">GUNGAHLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2913
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FRANKLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LYONS</a>
</td>
<td valign="bottom" nowrap width="97">
$326,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CHIFLEY</a>
</td>
<td valign="bottom" nowrap width="97">
$342,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">HOLT</a>
</td>
<td valign="bottom" nowrap width="97">
$355,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2605
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CURTIN</a>
</td>
<td valign="bottom" nowrap width="97">
$358,885
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2607
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FARRER</a>
</td>
<td valign="bottom" nowrap width="97">
$360,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2905
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">THEODORE</a>
</td>
<td valign="bottom" nowrap width="97">
$365,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">DUNLOP</a>
</td>
<td valign="bottom" nowrap width="97">
$366,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LATHAM</a>
</td>
<td valign="bottom" nowrap width="97">
$370,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
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awalsh-7Ub9EypybQ

The top 10 suburbs in the ACT with the cheapest unit prices: RP Data

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A heavily discounted property might not necessarily represent a bargain, warns SQM Research director Louis Christopher.
Although every property on SQM's list of top 10 most discounted properties in Australia has had a significant amount knocked off its asking price, Christopher says some may still be overpriced.
"Just because the dollar figure of a property is low and it has been dramatically discounted doesn't necessarily mean a home is good value for money," Christopher says. "Depending on the location, the quality of the house itself and the land size, some properties may still be overpriced, even if they have already been discounted by over 30%."
He says when vendors are unwilling to meet the market properties will linger, unsold, for months – even years.
"All you have to do is look at our long-standing number one on our top 10 list (588 White Beach Road, White Beach, Tasmania), which has been on the market for over 500 days and has been reduced by $380,000, to realise that sometimes both vendors and agents get the price of a home excessively wrong," he says.
"To add insult to injury, this error is then often used as a marketing tool – and we commonly see property's advertised as being 'HUGELY REDUCED TO SELL' when the underlying fact of the matter is that the property has only been discounted to what it should have originally been priced at."
Christopher recommends disregarding asking prices and instead focusing on what comparable properties actually sell for to figure out if a property is overpriced or has met the current market. 
 
1
<a target="_blank" href="https://&lt;http:/sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479093">588 White Beach Road, White Beach, Tasmania, 7184</a>
On the market since: May 23, 2010
Initial asking price: $780,000
Current asking price: $400,000
Reduction: 49%
Days on market: 553
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479016">92 Beelong Street, Macleay Island, Queensland, 4184</a>
On the market since: May 23, 2010
Initial asking price: $590,000
Current asking price: $340,000
Reduction: 42%
Days on market: 552
 
3
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008940771" target="_blank">102 Fountain Road, Burpengary, Queensland, 4505</a>
On the market since: April 17, 2011
Initial asking price: $1.2 million
Current asking price: $699,000
Reduction: 42%
Days on market: 225
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903">3 Boolari Road, Gosford West, NSW, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $580,000
Reduction: 41%
Days on market: 872
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106866439" target="_blank">329 Waterford Road, Ellen Grove, Queensland, 4078</a>
On the market since: October 16, 2010
Initial asking price: $1,275,000
Current asking price: $800,000
Reduction: 37%
Days on market: 406
 
6
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" target="_blank">25 Vicary Street, Triabunna, Tasmania, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 484
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007217761" target="_blank">1302 Birkdale Place, Magenta, NSW, 2261</a>
On the market since: June 17, 2008
Initial asking price: $700,000
Current asking price: $450,000
Reduction: 36%
Days on market: 1,257
 
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107299504" target="_blank">53 Fairview Avenue, Croydon North, VIC, 3136</a>
On the market since: April 2, 2011
Initial asking price: $600,000
Current asking price: $395,000
Reduction: 34%
Days on market: 238
 
<h2 style="font-size: 18px; line-height: 21px;"> </h2>
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107133746" target="_blank">2 Brecknock Road, Strathalbyn, SA, 5255</a>
On the market since: January 29, 2011
Initial asking price: $280,000
Current asking price: $185,000
Reduction: 34%
Days on market: 301
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2009160249" target="_blank">27 Shaws Pocket Road, Cedar Creek, Queensland, 4207</a> (pictured)
On the market since: August 15, 2011
Initial asking price: $1.19 million
Current asking price: $799,000
Reduction: 33%
Days on market: 105
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
SQM Research also offers a list of the <a target="_blank" title="SQM Research" href="https://www.sqmresearch.com.au/top100bargains.php">Top 100 Biggest Bargains in Australia </a>for sale.
 
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cknowlton-QnEa6ntUYP

Even discounted properties could still be overpriced: SQM Research

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Yesterday, following the RBA announcing it would cut rates by 0.25% to 4.25%, Twitter was flooded with tweets awaiting news of the major banks announcing their rate cuts.
The Commonwealth Bank responded with the following message:
“We are currently reviewing our interest rates in light of the RBA decision.”
Today, borrowers are being told to brace themselves for the banks not passing on the full rate cut.
This message has been flagged for some time, most notably by former Commonwealth Bank boss Ralph Norris, as he stepped down from his position last month.
Norris says the notion of the banks “automatically following the RBA” is outdated as the cost of funds lent to consumers is driven up by the troubles on global credit markets.
Norris told The Australian Financial Review at the time there was no guarantee the banks would pass on the next RBA interest rate cut.
“Nobody can give unqualified guarantees in anything in life… At this time I would have to say it will be what the situation is at the time the RBA makes its cut,” he said at the time.
In the wake of the global financial crisis, which froze international credit markets, the major banks did not pass on full RBA interest rate cuts and also increased interest rates independently of the central bank.
Speaking at the AICC property lunch in Sydney last week, outgoing Dexus boss Victor Hoog Antink hinted at a similar approach by lenders when he said there would be “potential margin creep for the banks as they deal with capital issues emerging from Europe”.
NAB was the only lender not to pass on the full 25-basis-point cut in November to its borrowers, passing on 20 basis points with its head of personal banking, Lisa Gray, saying at the time that “volatile overseas markets and impending global banking security requirements had pushed up the costs of providing funds for lending”.
The threat of banks not passing on full rate cuts was also acknowledged by AMP Capital chief economist Shane Oliver in his regular insights piece.
“Australian banks have been warning their funding costs have been increasing. If this intensifies, then there is a risk that banks may actually increase their lending rates – both business rates and mortgage rates – independently of the RBA,” Oliver said.
In his September note on the outlook for the banking sector (before the crisis in Europe reached its current level), JP Morgan analyst Scott Manning said the discounting of mortgage products by the major banks was reaching a point of being loss making for banks to originate new mortgages.
<a target="_blank" href="/news">Bank of Queensland</a> and <a target="_blank" href="/news">ME Bank </a>have already announced they will pass on the rate cut in full.
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Borrowers wait anxiously to learn if banks will pass on rate cut

<html><body>
So David Bassanese from the AFR reminded me that he called the RBA's rate cut yesterday. I don't think anyone else in media land really picked it. The market was fully pricing it – had been since the last meeting. Stephen Koukoulas (aka "Koukie") was there three or four months ago – but he was also confident about the RBA cutting 25 basis points in October and 50 basis points in November, at various times. 
Bill Evans at Westpac, Brian Redican at Macquarie, and Tim Toohey at Goldman have been brilliant at anticipating this sharp turn-around in the RBA's monetary policy stance. One question is whether they picked it for the right reasons. If you were dovish because of the domestic economy, you were right for the wrong reasons. If you were dovish because of low inflation, well, I don't know what to say. We've had two high core inflation numbers in quarter one and quarter two (after multiple revisions) and one low result in quarter three (first estimate). Nobody is much good at forecasting inflation one to two quarters ahead. Almost all economists struggle to predict core inflation the day before the release. But if you were punting on low inflation as a driver of the RBA's 180-degree turn, you surely deserve some credit. 
If, on the other hand, you were motivated by the offshore environment, and Europe and the US, in particular, well, hats off to you. Bill Evans and probably Toohey fall into this category. Koukie I suspect too. Matty Johnson at UBS is another who fingered it early, and who was quick to call a European recession. He was confident about a December cut many weeks ago. 
Bassanese's rationale derived from the "insurance" (or "put option") school of thought. That argument was an obvious one, but I was not convinced the RBA would necessarily acquiesce. I was 50:50 right up to the decision. Anyone claiming December was certain has probably got the last few months wrong. A good counterfactual is HSBC's Paul Bloxham. Blocker spent 11 years working under Stevens, Richards and Lowe in the RBA's economic analysis department. He only left there a year or so ago. Unfortunately, Paul has missed November and December. He's now switched his position and is calling a spate of cuts. 
One of the smartest and most successful rate participants I know characterised it as a coin toss a day or two ago. There was a lot of money to be made going short interest rate futures if you had conviction about the RBA keeping its finger off the trigger. Right up to 2.30pm I was trying to clear a position in my head. I could not – I had this uneasy feeling, a little like I did right before the August decision to pause. One clear thought did come into my mind: “Whatever the RBA does today we will learn more about the way board members think. And that really is the key take-away.” 
You hear a lot of baloney from media commentators and economists who talk to the RBA and tell you – even to this day – that the RBA completely controls its own board and is at one with all its decisions. Anyone who says that is trotting out the house line. Of course the RBA wants everyone to think its relationship with the board is always harmonious, and decision-making is always unanimous. But anyone who has sat on corporate boards knows that is not how they work. 
We know that some RBA board members wanted interest rates lower in the first half of 2011, and we know, again as a matter of absolute fact, that some were calling for higher rates. We obviously got neither. 
What we saw yesterday, and what we have seen in 2011, is a classic committee-based decision-making framework. I know from years of personal experience that as soon as you run a decision-making process through a committee larger than two or three people, especially within a risk-averse or bureaucratic organisation, you get lowest-common-denominator solutions. You get “easy” decisions that are straightforward to justify. 
Super funds are a classic example: do what everybody else is doing. If everyone is over-invested in equities and underweight cash and fixed-income, do the same. Pick up the pieces after the event only when everyone else is doing the same. You can never be criticised if you are one man concealed by a crowd. 
That's what we've witnessed this year. The RBA's board comprises nine relatively ordinary individuals. We have learnt that they find it, unsurprisingly, very hard to make tough decisions. Everyone who has worked with the RBA will tell you that raising rates is hard work. We saw that in the first seven months of 2011. There were at least three months when a bolder, braver and more independent decision-making framework could have hiked. Would that have been a mistake? Of course not. If you hiked once earlier in the year (e.g., in May or June when a tightening was on the table) you would be claiming credit for the low inflation print in quarter three. You would have had much more justification for easing policy in November given the disturbing developments offshore and the supposedly altered inflation outlook. 
Instead, we found the RBA could not muster the fortitude to hike. The board dithered through the first seven decisions of the year, as you would expect any nine person committee chock-a-block full of strong personalities to do. They consistently sent highly inconsistent signals to the market. 
We know that because the economists covering the RBA were saying point-blank that they were confused by its conflicting statements. The first two Statements on Monetary Policy were incredibly hawkish while the Board Statements seemed more dovish. Is that really a surprise when one is prepared by the staff and the other by a committee? Sorry guys, they are not all joined-at-the-hip. 
 
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Even the media folks speaking directly to senior members of the bank, such as Terry McCrann in late July, and, this month, Alan Mitchell, were calling it wrong. After the November meeting Mitchell was telling us in column after column that only a major deepening of the crisis in Europe would force the RBA to cut in December. 
Mitchell and his Fairfax colleague, Peter Martin, confidently declared that November was a “once-off” adjustment of the cash rate back to neutral. Don't bank on any Christmas gifts from the hard-headed RBA. Don't expect the RBA to cut rates because of the mini-budget. 
Well, nothing has really changed in Europe. In fact, bond yields plummeted right before the decision yesterday with the Sarkozy-Merkel plan afoot. The domestic data flow was fine. There are some very early indications the highly interest rate sensitive housing market could be about to bounce back strongly with Australia's largest mortgage broker, AFG, reporting its single biggest month for new home loan applications in November since March 2009. The share of investors soared to record levels. 
What we got in November was an easy decision to cut. After the low third-quarter inflation, and the RBA's preceding signal of a “decision rule” that would reward a very low print, a cut was always likely. The only fly in the ointment was that the previous downward revision to quarter two data was revised right back up! The RBA's board ignored that and the first-quarter data, and decided to hang its hat on quarter three. 
Again, it was not “hard” to cut in the sense of it being a politically or socially difficult decision. Furthermore, the markets had priced it. Consumer confidence bounced back to above-average levels in November, and the RBA was showered in praise for providing those ailing sectors of the economy with much needed relief. 
Equally, it was not “hard” to cut in December. The market was fully pricing it. The politicians were calling for it. The RBA board has now given Wayne Swan and Julia Gillard a significant victory in being able to claim that the mini-budget, and weak public demand generally, have emboldened the RBA to loosen policy (assuming the banks actually play ball and pass on the cut). Making your political masters happy is easy. Every vested interest in the country was calling for "insurance" from the bank over the summer break in case things went awry. In the short term, it costs you nothing to cut rates. So a nine-person committee dominated by private sector business interests is going to have little hesitation in giving out free insurance – to their own constituencies. 
What I have learnt is that it's a mistake to listen to Phil Lowe, Glenn Stevens, or Ric Battellino, and think that their forecasts for the future, and their personal views on the distribution of risks, the dynamics impacting the local economy, and their sterilised vision of how central banking should in theory be undertaken, will prevail through a decision-making process involving a large committee of strong-willed, politically appointed business leaders and the Treasury Secretary. 
When Ian MacFarlane controlled the RBA board with an iron fist, and, in the words one of member, actively stifled debate and dissent, things might have been different. It was easy to be a benign dictator between 1996 and 2007. The economy was cruising along with unprecedented stability. Poor old Glenn Stevens was bequeathed a huge bout of high core inflation in 2007-08, followed by the GFC, higher unemployment, a massive surge in the currency that stretched the domestic economy every which way, and now a bona fide global sovereign debt crisis. 
The RBA board dynamics of today are dramatically different to those that existed in the pre-GFC period. It was easy to be a world-beating governor (and treasurer) when you had a 15-year period of global disinflation, high productivity, robust growth, monotonically declining unemployment and uninterrupted growth. Stevens' challenges have been vastly more complex. As have Wayne Swan's, frankly.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Don't expect the unexpected from the RBA: Christopher Joye

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While yesterday’s Reserve Bank’s decision to cut interest rates will have come as a surprise for some, I have always said the next cash rate movement was always going to be down – it was just a question of when.
More important than the 25-basis-point reduction is the fact that rates have declined for two consecutive months now, confirming they are trending in a downward direction. This trend is paramount to buyer confidence and is another factor supporting what is already a buyers’ market.
While European economic woes continue to loom overhead, those with secure employment on the lookout for property will rarely experience an environment as attractive for buying as the current market.
Prices are stable, and vendors are necessarily being more realistic when it comes to price. The emergence of a downward interest rate trend will have further positive bearing on affordability.
Of course the official cash rate is one influence, and much will depend on whether the banks, which admittedly have seen their own costs of borrowing increase, pass on the rate cut to their customers.
In the context of global uncertainty, as the impacts of the European debt crisis filter through to the domestic market, this decision should be welcomed as a safeguarding measure.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
 
 
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Rate cut will improve housing affordability

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So interest rates have fallen again.
Hmmm, my first reaction is to start quoting the “shrinkage” part from “The Hamptons” episode from Seinfeld.
For those who aren’t Seinfeld fans – yes it is hard to believe but they do exist – below is the relevant segment of the script.  I have also included a synopsis of the complete episode for the unenlightened among you.
 
<hr>
 
George: Well I just got back from swimming in the pool.  And the water was cold…
Jerry: Oh… You mean… shrinkage.
George: Yes.  Significant shrinkage!
Jerry: So you feel you were short-changed.
George: Yes! I mean, if she thinks that’s me she’s under a complete misapprehension.  That was not me, Jerry.  That was not me.
Jerry: Well, so what’s the difference?
George: What if she discusses it with Jane?
Jerry: Oh, she’s not gonna tell Jane.
George: How do you know?
Jerry: Women aren’t like us.
George: They’re worse!  They’re much worse than us, they talk about everything!  Couldn’t you at least tell her about the shrinkage factor?
Jerry: No, I’m not gonna tell her about your shrinkage.  Besides, I think women know about shrinkage.
George: How do women know about shrinkage?  (They see Elaine walking down the hall) Elaine! (She enters)  Do women know about shrinkage?
Elaine: What do you mean, like laundry?
George: No.
Jerry: Like when a man goes swimming… afterwards…
Elaine: It shrinks?
Jerry: Like a frightened turtle!
Elaine: Why does it shrink?
George: It just does.
Elaine: I don’t know how you guys walk around with those things.
“The Hamptons” (Episode 85/Season 5):  Jerry and the gang go to the Hamptons for the weekend to see their friend’s baby.  George gets upset when he realizes that his date went topless on the beach.  In exchange for Jerry having seen her breasts, George wants to see Jerry’s date naked.  Instead, Rachel walks in on George undressing after a swim, and she witnesses his post-swim “shrinkage”.  Jerry and Elaine are shocked to discover how ugly the baby is, and Elaine becomes especially confused when the handsome Dr. Pfeiffer describes both her and the baby as “breathtaking.”  Kramer finds a filled lobster trap.
 
<hr>
 
 
So I guess I have three things to say.
Firstly, beware of what you are doing, RBA, you just might frighten us into economic “‘shrinkage”.  You know, the “paradox of thrift” and all that jazz.
Secondly, despite what some economists think, confidence will not be restored by a few interest rate tweaks.  We need to go to an election (and two in Queensland) before we get our pep back.
And finally, at least this interest rate commentary is half interesting!
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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The RBA should be wary of economic 'shrinkage'

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<img src="/images/stories/altitudeaerial.jpg">
Funds manager Securcorp has completed the 46-apartment Altitude development, which it took over in late 2009 after developer Benchmark Developments and CMC went in to liquidation with the project half-finished. 
Eight had been sold off the plan, and PRDnationwide agent Christie Leet is now marketing the remaining properties in the 16-storey building. PRDnationwide has sold five apartments so far. 
The building comprises 11 two-bedroom units, 33 three-bedroom units and two penthouses. Two-bedroom apartments start at $395,000, and three-bedroom units start at $435,000. 
"That's probably the best value for a three-bedroom apartment in the Townsville CBD," Leet says. 
"There are plenty of buyers for well-priced property, and $435,000 is below replacement cost. The quality is completely different to other apartment complexes in the CBD developed recently, with the high standard of furnishings and quality of finish.” 
Securcorp managing director Michael Robinson says Altitude is a boon to Townsville. 
"This is an iconic project for the city and our objective has been to ensure it was completed to the highest standard, which we have achieved with the input of the local contractors we have had on site," Robinson says. 
Median asking rent for units in <a href="/news">Townsville </a>is $400, and the indicative gross rental yield for units in the city is 4.9%, according to RP Data. 
Construction company Matrix was hired at the beginning of 2010 to complete Altitude, with the majority of the original contractors re-engaged. 
“The apartments also appeal to those relocating or based in Townsville part-time, which is a growing market due to the strength of the resources sectors and the city’s position as the administration and business capital of North Queensland,” Leet says. 
Altitude is in Townsville’s entertainment and restaurant precinct and offers views of Castle Hill and across the water to Magnetic Island.
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Townsville Altitude development complete and adding to sales tally two years after stalling

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Victoria is leading a national increase in medium-density approvals, home to two-thirds of medium-density home approvals across Australia over the past year, according to the latest report by Bankwest.
Over the last year 38% of national home approvals were for medium-density dwellings, up from 31% five years ago.
Victoria has the most, with 21,235 approvals, 36% of the national total of 59,276. This is closely followed by NSW at 16,397, which represents 28%, and Queensland at 10,300, which represents 17%.
“Melbourne might be considered the café capital and this is helping to fuel demand for city living. says Bankwest retail chief executive Vittoria Shortt.
“Factoring in affordability, a tight rental market and lifestyle choices it is not surprising to see a trend towards higher density living.”
The Australian Capital Territory has the highest percentage of approvals, with 66% of all approvals being medium density, followed by the Northern Territory at 57% and New South Wales at 49%.
ACT also grew the most over the five years, with a 23 percentage point increase over the five years.
Perth was the only state capital where the share of medium-density approvals didn’t increase. Shortt puts this down to rising incomes and land availability combined with an outdoors lifestyle.
“With gen Ys entering the market looking at the inner city as a preferred location, coupled with baby boomers that are starting to downsize, this trend towards medium density looks set to continue,” says Shortt.
The trend is predominantly taking place in capital cities with 77% of medium density approvals taking place in the city. <img src="/images/stories/tugg.gif">
Source: Bankwest 
ACT’s Tuggeranong took the guernsey for the biggest turnaround. In the 2006 census just 12% of dwellings were medium density but in the last five that has increased to 74%.
Five out of 10 suburbs with the most densification were in the ACT.
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Victoria leading surge in medium-density housing: Bankwest

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ME Bank has joined Bank of Queensland in vowing to pass the RBA’s full 25-basis-point rate cut onto customers.
“As part of our commitment to looking after customers over the long term and offering a fairer banking alternative, ME Bank has decided to pass on the full 0.25% p.a. reduction to our customers,” says Jamie McPhee, ME Bank’s chief executive officer.
The cut will mean the bank’s standard variable rate will drop to 6.74% from 6.99% per year.
“ME Bank remains committed to passing on the full benefits of the RBA’s rate cut to our customers – just as we did in November, because we believe everyone deserves a fairer deal.
"It’s high time the Big Four return their focus to the stakeholders that matter most – customers – and help relieve their financial burden wherever possible,” McPhee adds.
Customers with a $300,000 home loan will save $50 per month thanks to the cut.
 
 
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