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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<img src="/images/stories/welldesigned.gif">
- Garry Rothwell, the founder and principal of the Winten Property Group, accepting the Urban Taskforce Property Person of the Year 2011 award at a charity event lunch which raised funds for Warrah Disability Services and St Vincent's Prostate Cancer Centre.
 
 
 
 
 
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jchancellor-FAypfDUnLy

Quote of the week: Developer Garry Rothwell

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The closure of Club Med's only Australian resort on Queensland's Lindeman Island comes due to a mixture of poor visitor numbers, burdensome regulation and a turndown in the leisure travel market, one industry representative has said.

The confirmation came yesterday as the French chain confirmed it would close the Lindeman Island resort, with the island destination being put up for sale.
"It's very disappointing to see," Daniel Gschwind, chief executive of the Queensland Tourism Industry Council, says. "Some regions are being more affected than others and for a number of reasons, the Whitsundays are being hit right now."
Club Med general manger Quentin Braird has said in a statement that more customers are wanting premium products and that "Lindeman ... was not in that category".
"So, in order to meet our customers' expectations, we have to now seek a new resort in Australia," he said. "It was an extremely difficult decision for Club Med to make, as the resort is a firm favourite with our Australian and New Zealand guests.''
CBRE will sell the resort, which is set to close in January. It was originally bought in 1990 for $15 million, with the company having developed and upgraded the location over the past two decades.
Gschwind says the market has been hit by a decline in leisure tourism, as opposed to travel in the corporate market.
"It's particularly tricky for the Whitsundays, because they are very much in direct competition to some of the south-east Asian pacific nations that have done particularly well."
"So we are exposed to a full load of international competition at the moment, including the 'cheap destinations' overseas. That's clearly had an impact here."
Tourism and Transport Forum chief executive John Lee says the closure should seve as a "wake-up call" for the government, and urges some form of assistance for the industry, such as advanced depreciation.
"This should serve as a wake-up call for the industry ... we could get more assistance and investment coming in if there was some action on this."
Although Gschwind says the market is reliant on the aviation market, and notes the recent Qantas grounding may had an impact on the industry in general, he notes it is regulatory pressures that would have proved troublesome for Club Med.
"Running an island is extremely complex, in both a commercial and regulatory sense. There are so many regulations to deal with for a business owner, and it's incredibly complex when compared to mainland operations."
"We think it's an attractive destination, a unique product, and being a network of national parks has a pretty good attraction there. It's a strong product, but commercially, it's just very tough right now."
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/business-travel/20111201-club-med-shuts-lindeman-inland-resort-as-whitsundays-tourism-hit-again"> SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Club Med shuts Lindeman Island resort as Whitsundays tourism hit again

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Developer Crown Group has received approval to build the biggest residential project in Parramatta to date.
The 25-storey development at 45 Macquarie street is set to comprise 370 apartments, 3,000 square metres of office space and a further 1,200 square metres of retail space.
Prices are expected to start at $400,000 for a one-bedroom apartment with car space, and three-bedroom penthouses are expected to sell for more than $1 million.
Crown Group CEO Iwan Sunito says Parramatta is growing quickly and is in need of this type of development.
“More and more people are choosing to live and work in Parramatta, and the residential and commercial components of the area are not only growing, but also attracting a more discerning buyer who is happy to pay a premium for a quality property investment,” he says.
Sunito says the Macquarie Street project is aimed at discerning Sydneysiders with high-brow taste.
“Our new development will bring a new level of luxury to Parramatta, offering residents a high-end yet still affordable lifestyle offering with similar facilities and finishings to a five-star resort,” he says.
The building has been designed by Allen Jack &amp; Cottier Architects and will include a pool, library, crèche, gym, relaxation areas and extensive landscaping. The building will offer views over Parramatta, Sydney CBD and the Blue Mountains from different vantage points.
Construction on the $300 million project is expected to begin in early 2012.
Crown Group bought the site in July 2009 from Becton Property Group for $15 million, and the development was approved by the NSW Department of Planning with support from Parramatta City Council.
 
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Parramatta's largest residential development to contain 370 units

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4/5 Tanti Avenue, Mornington, VIC, 3931
<img src="/images/stories/tanti.jpg">
In the former Sisters of Mercy Convent, this one-bedroom apartment in the beachside suburb of Mornington is tenanted until August next year at $360 per week. <a href="https://mornington.harcourts.com.au/VMG6956" target="_blank">Harcourts Mornington</a> agent Terry Young is marketing the property with price hopes of between the "mid-$400,000s and early $500,000s". If it sells for $450,000 that would secure an investor a gross rental yield of 4.2%, the same as the indicative gross rental yield for Mornington units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The apartment has three-metre ceilings and period features such as cornices, and is has direct access to the beach. <a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $10,000 and over five years to be $34,000. The propertywas withdrawn from its planned auction on Saturday, December 3 and remains for sale. 
For more on prices and yields in Mornington, see the <a target="_blank" href="/news">RP Data suburb page.</a>
 
 
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Weekend Yield Watch: Yields of up to 4.2% in Mornington 

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There have been solid gains in the share prices of Australia’s Big Four banks following co-ordinated action by the US Federal Reserve, European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland to provide liquidity support to the global financial system and avert a potentially devastating credit freeze.
Among the top gainers this morning has been ANZ, with its share price trading more than 3% up from yesterday at $20.50.
At last check, Commonwealth Bank shares were up 1.4% to $48.84, Westpac shares had gained 0.6% to $21.18 and NAB shares are up 0.75% to $24.16.
Overall, shares have also rallied in Australia with the benchmark S&amp;P 200 up 107 points to 4226.8 with the All Ordinaries index up 101 points to 4286 in morning trading.
A credit freeze would have <a href="https://www.propertyobserver.com.au/economy/european-debt-crisis-could-hurt-australians-hip-pockets/2011112952592" target="_blank">substantially raised the cost of banks and other lenders raising wholesale funding</a> offshore – a crucial part of the mix of money lent out to borrowers –and increased the likelihood that future interest rate cuts would not be passed on in full.
“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system,” said the US Federal Reserve in a statement overnight.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”
From December 5, these central banks will lower the pricing on the existing temporary US dollar liquidity swap arrangements by 50 basis points making it cheaper for indebted European banks to buy US dollars.
It is expected to take some pressure off the interbank lending market – where banks lend money to each other.
The reduced cost of borrowing will run until February 1 2013.
"This decreases the cost of funding in US dollars or other currencies so it's small, but it's a boost to banks' profitability and gives them a better chance to shore up their capital ratios,” Christian Schulz at Berenberg Bank told the BBC.
Schulz says the actions by the central banks won’t resolve the European sovereign debt crisis, it will “ease the panic around European banks significantly and help preventing a devastating credit crunch”.
Besides offering cheaper US dollars, as a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant.
“At present, there is no need to offer liquidity in non-domestic currencies other than the US dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise. These swap lines are authorized through February 1, 2013,” the US Federal Reserve said.
This statement and similar ones from the other Central Banks had an immediate impact on investor sentiment with Wall Street's Dow Jones index rising 4.2%, its biggest gain since March 2009.
In Europe Germany's Dax index closed 5% higher, France's Cac 40 rose 4.2% and the UK's FTSE 100 rose 3%.
 
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lschlesinger-FZcF9M3vE6

Australian bank shares up as global credit freeze averted

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<table width="348" cellpadding="0" cellspacing="0" border="1"></table>
<table width="348" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="136">
Suburb
</td>
<td valign="bottom" width="106">
Postcode
</td>
<td valign="bottom" nowrap width="106">
Rental median (weekly)
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">HAYMARKET</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$695
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BIRCHGROVE</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">PYRMONT</a>
</td>
<td valign="bottom" width="106">
2009
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">SYDNEY</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$640
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BALMAIN</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$610
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WATERLOO</a>
</td>
<td valign="bottom" width="106">
2017
</td>
<td valign="bottom" nowrap width="106">
$572.50
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BOTANY</a>
</td>
<td valign="bottom" width="106">
2019
</td>
<td valign="bottom" nowrap width="106">
$560
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WOOLLOOMOOLOO</a>
</td>
<td valign="bottom" width="106">
2011
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ERSKINEVILLE</a>
</td>
<td valign="bottom" width="106">
2043
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ROZELLE</a>
</td>
<td valign="bottom" width="106">
2039
</td>
<td valign="bottom" nowrap width="106">
$547.50
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
 
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awalsh-7Ub9EypybQ

Ten most expensive suburbs for unit rentals in Sydney: RP Data

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Demand for mortgages from property investors has tracked significantly below that of owner-occupiers over the past three months, Westpac has highlighted following the release of October credit statistics by the Reserve Bank. 
Westpac senior economist Andrew Hanlon says the current three-month pace of investor credit growth is just 4.1% annualised compared with 6.1% for owner-occupiers. 
“Weakness of the investor market is notable,” he says.
<img src="/images/stories/creditgrowth.gif">
Source: Westpac
He also expressed surprise that housing credit advanced by just 0.4% in October, down from growth of 0.5% in September, with overall credit growth for October at just 0.2%. 
“New lending, housing finance, has improved a little of late… The RBA cut rates in November. This points to some improvement ahead,” he says. 
“That said, housing finance remains at a relatively low level and housing credit growth is weak by historical standards.” 
Over the past 12 months housing credit growth has moderated to 5.7% currently from 7.4% a year ago, while personal credit has weakened (-1.4% from +2.2%) and business has credit stabilised (+0.7% following -3.0%). 
“Recall that for June 2011, the rise in housing credit of 0.35% was the weakest (nominal) monthly rise in the history of the series (back to 1976), with the exception of just July 1984. This highlights the headwinds facing the sector.” 
CBA economist James McIntyre noted that while total housing credit remains 5.7% higher than a year ago, this growth is the weakest in the 34 years of available data. 
“Overall growth in household credit (housing plus other personal) is growing at a 4.8% annual pace, well below growth in household incomes,” he says. 
Hanlon says further rate cuts (Westpac is forecasting another 75 basis points to be shaved off the cash rate over the next 12 months) will provide some relief to the housing market. 
“That points to a firming of general economic conditions and credit growth from around mid-2012,” he says.
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Owner-occupier mortgage demand outpaces demand from investors: Westpac

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Did you know that homes located in 80% of <city><place>Sydney</place></city> suburbs have actually generated capital gains of around 1% over 2011? Adding in attractive rental growth, total returns have been pretty good relative to alternatives like shares. 
It is only the most expensive suburbs in <city><place>Sydney</place></city> that have suffered price declines. These areas have endured a 3.2% fall in value over the course of the year (see the red line in the chart below).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec1.gif"><img src="/images/stories/dec1thumb.gif"></a>
We know this because we break up RP Data-Rismark’s patented hedonic indices by suburbs ranked by price. (Dr Tony Richards at the RBA was the first person to ask us to do this.) The chart above graphically highlights the divergence in performance between the cheap and middle-priced regions across Sydney and those more affluent areas, which have been comparatively hard hit. 
We see similar dynamics assert right across <country-region><place>Australia</place></country-region>. For example, the cheapest 20% of suburbs in <city><place>Melbourne</place></city> have recorded capital losses of only 2.3% in 2011. In contrast, <city><place>Melbourne</place></city>’s dearest markets have registered steep 7.4% price falls (see next chart).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec12.gif"><img src="/images/stories/dec12thumb.gif"></a>
A portfolio of the most expensive homes across the capital cities has experienced reasonably material capital losses of 5.6% in the year-to-date. The lowest priced homes, by way of comparison, have tapered by less than half this amount, or 2.1% (refer to my third chart).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec13.gif"><img src="/images/stories/dec13thumb.gif"></a>
 
So why do we find these differences? A bunch of reasons. The rolling global financial crises that have affected all economies in one way or another originated in the otherwise affluent financial services industry. 
Going forward, retail and investment banks are having to modify their business models, and condition shareholders to substantially lower returns. 
Since credit growth over the next cycle will track incomes, retail banking revenues will grow at appreciably lower rates. 
During the 1990s and 2000s, housing credit in <country-region><place>Australia</place></country-region> expanded at an average annual rate in excess of 12%. That is simply unsustainable. In the long run, credit growth is bounded by growth in incomes (holding all other variables constant), which, on average, advance at single-digit rates. 
To maintain their historical returns, retail banks are having to cut costs. And this is just the beginning. The downward pressure on business expenses will be unrelenting in a world in which major banks can only produce single-digit revenue growth. This in turn means lower salaries and bonuses, and fewer jobs, for some of the nation’s best paid executives. (If you want to watch a funny video skit about bank remuneration in <country-region><place>Australia</place></country-region>, <a href="https://christopherjoye.blogspot.com/2011/11/video-story-about-big-banks-and-rba">check out this</a>.) 
The same principle applies to other companies in the financial services sphere. Investment banks – and their commercial banking cousins – are generally closing down their “proprietary trading” businesses, which is where some of the biggest income earners worked. 
Another key source of investment banking profits, IPOs, has been in a secular malaise since 2007 due to the horrific performance of share markets. Once again, all the investment banks are having to revisit their cost structures with the end game being fewer employees and lower compensation. 
We now know that the financial services industry grew to become too large a part of the economy in the years preceding the crisis. In the words of the RBA governor, Glenn Stevens, it was no longer simply the “hand-maiden of industry”. Economic logic usually ends up prevailing, and the financial services sector is now undergoing a relative retrenchment that will probably continue for years to come. 
For high-end housing that basically means top-end purchasers have skinnier wallets, which is probably one reason why we are seeing expensive suburbs underperform for the time being. 
On the other hand, there will be new sectors of the economy that emerge as winners from the structural adjustment currently taking place. Anyone with an exposure to coal mines in NSW is just one example. 
As a rule, luxury property is much more illiquid and volatile than those homes located in the mass market. Contrary to popular myth, developing expensive homes does not deliver the best returns. 
Which part of the housing market do you think billionaires like Harry Triguboff make their money in? Think properties priced under $750,000 that appeal to the widest possible audience. Put another way, would you rather be the founder of IKEA, or running your local antiques store?
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

It's an affluent housing correction: Christopher Joye

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Rents are soaring in WA mining towns in the Pilbara, with modest and often unappealing houses costing as much to lease as houses in the prestigious suburbs of Melbourne and Sydney.
John Briggs from Port Hedland Real Estate tells Property Observer the regional rental market is “very, very strong” though sales prices have come off historic highs due to the current global turmoil.
Briggs says yields are now up around the 11.5% mark, having previously been around 10%.
At the same time investors have been urged to tread cautiously when it comes to investing in mining towns, with hotspotting.com.au’s Terry Ryder warning that while they have great allure for property investors because they often provide high rental returns and rapid capital growth, <a href="https://www.propertyobserver.com.au/queensland/mining-towns-not-rivers-of-gold-terry-ryder/2011081051115" target="_blank">mining towns can be “perilous locations for investors”</a> as they sit at the “extreme far end of the risk spectrum”.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/mining-boom-drives-up-nsw-hunter-valley-rents/2011113052623">The NSW mining boom has also driven up rents in the Illawarra and Hunter Valley regions.</a>
For those investors brave enough to dip their toes in, here are the weekly rental numbers in WA’s most expensive mining towns
$2,000
This is the median asking rent for a house in <a target="_blank" href="/news">Port Hedland</a>, the biggest city in the Pilbara region. Demand for housing in Port Hedland is likely to increase in the coming months following WA's environmental watchdog giving its backing to an expansion of the port’s capacity by an additional 50 million tonnes. The median sales price is just over $1 million, translating into an indicative gross rental yield of 9.5%. Realestate.com.au lists 37 properties available for rent currently in Port Hedland with weekly rents ranging from $1,000 per week to $3,200 per week.
$1,800 
This is the median asking rent for a house in <a target="_blank" href="/news">Baynton</a>, a suburb of Karratha. Baynton West is a major Landcorp residential development site, with 523 lots to be built and 75% to be occupied by early 2012. Lots range in price from $165,000 to $303,500 and sizes from 381 square metres to 987 square metres. According to RP Data the median sales price in Baynton is $950,000 with an indicative gross rental yield of 9.9%.
$1,775
This is the median asking rent for a house in <a target="_blank" href="/news">Nickol</a>, a suburb of Karratha just north of Baynton. According to RP Data the median sales price in Nickol is $916,500, with an indicative gross rental yield of 10%.
 
$1,650
This is the median asking rent for a house in <a target="_blank" href="/news">Pegs Creek</a>, a suburb in east Karratha. According to RP Data the median sales price in Pegs Creek is $705,000, with an indicative gross rental yield of 12.2%.
 
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Dampier</a>, a tiny town north west of Karratha, which is now a major industrial port. It services petrochemical, salt, iron ore and natural gas export industries with mining giant Rio Tinto exporting large volumes of iron ore through the port. According to RP Data the median sales price in Dampier is $855,000 with an indicative gross rental yield of 9.1%. Recent sales include a four-bedroom house on Butler Way for $1.28 million and a three-bedroom house on Anderson Street, which sold for $1.69 million. Realestate.com.au lists just five properties available for rent in Dampier, with weekly rents ranging from $650 to $1,600.
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Bulgarra</a>, a suburb of Karratha, which is now a major industrial port. According to RP Data the median sales price in Bulgarra is $750,000 with an indicative gross rental yield of 10.4%. Realestate.com.au lists just 10 properties for sale in Bulgarra, with prices ranging from $420,000 for a one-bedroom house to $839,000 for a three-bedroom house with a swimming pool.
$1,400
This is the weekly median asking rent for a house in <a target="_blank" href="/news">South Hedland</a>, a suburb of Port Hedland with a population of about 8,000 people. According to RP Data the median sales price in South Hedland is $720,000 with an indicative gross rental yield of 10.1%. On realestate.com.au rents in South Hedland range from $1,150 per week for a three-bedroom house to $2,500 for a new four-bedroom house. Less than 25 properties are available to rent currently.
$400
The median rent for a house in the<a target="_blank" href="/news"> </a><a target="_blank" href="/news">Perth</a> metro region, according to the Real Estate Institute of WA.
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Pilbara mining rents: the seven most expensive WA boom towns

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A growing demand for mining accommodation has resulted in a sharp escalation in the median rental price in the Hunter and Illawarra regions of NSW, with rents for units and houses up around 9% over the past year, according to analysis of data from the NSW Department of Housing by PRDnationwide.
Demand for rental accommodation was particurlarly strong in Maitland in the Hunter Valley, which registered the highest increase in rental bonds across NSW with growth of 29.7% in the 12 months to September.
Maitland was followed by Kiama on the Illawarra South Coast, with 23.7% increase in rental bonds over the 12-month period.
“Rental growth around the Hunter is generally related to the intensification of mining activities,” says PRDNationwide. 
<img src="/images/stories/prdnov30.gif">
Source: PRDnationwide
The region is attracting new arrivals with specialist skills in engineering, resources and mining with Hunter mining giant Coal and Allied operating Hunter Valley Operations, Mount Thorley Warkworth and Bengala mines in the upper Hunter Valley. 
In total there are about $21 billion worth of mining projects underway in the Hunter Valley.
<img src="/images/stories/prdnov301.gif">
Source: PRDnationwide
In July engineering group Downer EDI said it was looking to employ 400 people to help the Ravensworth North Coal Project in Newcastle after winning a $400 million contract with Xstrata Coal to develop the Ravensworth North Coal Project. 
There was also strong rental growth in other NSW regions close to mining activities. 
The median rental price for three-bedroom houses in the regional centres of Newcastle and Wollongong increased by more than 8% while rents for two-bedroom units increased by close to 10% in Newcastle, Port Stephens and Shellharbour. 
Overall, the vacancy rate for the Hunter and Illawarra regions averaged just 1.7% compared with 1.3% for Sydney metropolitan region.
Commenting on the increase in rents across NSW, PRDnationwide says that in an environment of softer house prices, “an increase in rent is welcomed by landlords and normally indicates a strong economy and large changes in population”. 
“However, around NSW and indeed Australia local residents who are not part of the mining industry are often being priced out of the market by companies that pay above-market rents. This in turn leads to negative social consequences and increases the pressure on government housing.”
Rents in WA mining towns are also booming.
 
 
 
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