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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Sydney has maintained its position as the city with the third most expensive retail rent while Melbourne has slipped one spot to number eight and Brisbane remains at number nine, according to CBRE.
Melbourne’s slight decline was despite it being globally the third-fastest-growing market, with rental growth in local currency at 32.3% growth for the year to September 30. It came in behind Hong Kong at 52.8% and Beijing at 40%.
“Melbourne started off at a low base and was further helped by many international tenants targeting this market, which has been cheaper and more easily obtainable than Sydney,” the CBRE report found.
“In Australia, global brands continue to open new stores, however many domestic retailers are consolidating as shoppers flock to the new foreign entrants in the market,” says CBRE global chief economist Ray Torto.
<img src="/images/stories/cbreglobalrents.gif">
Source: CBRE
Sydney’s commercial rent was €9,823 per square metre, Melbourne was €6,230 and Brisbane’s was €6,230 for the third quarter.
The list was topped by New York at €15,244 per square metre and Hong Kong at €13,601.
A limited amount of prime retail space available in Australia and competition from new market entrants pushed Australian cities up the list, according to CBRE regional director of retail services, Joshua Loudoun.
“Over the course of the next 12 months we would expect that the Australian markets would slip slightly down the rankings due to numerous challenges faced by domestic retailers, in particular the record levels of outbound tourism, together with increasing labour and utility costs that have placed further pressure on occupancy costs,” Loudoun says.
The impact of the Eurozone crisis on consumer confidence led to global commercial rents levelling off in quarter three, the report found.
Total global retail rents largely flat at -0.6% from quarter two to quarter three, with the Americas falling  2% and rents unchanged in the Asia Pacific and Europe, Middle East and Africa regions, the report found.
“This represents a significant slowdown from earlier in the year as retailers take a more cautious approach to expansion.”
Despite an uncertain economic outlook, retailers continue to expand their international store networks, the report found.
“The emerging markets, particularly Asia, provide attractive opportunities for growth, although prime locations in Europe’s biggest cities are also attracting a high level of occupier demand, as consumers increasingly target major destinations with the widest choice of retailers,” Torto says.
“Overall, however, retailers have been taking a more cautious approach to expansion, resulting in flat rental growth across the globe in the third quarter – a considerable slowdown from earlier in the year.”
 
 
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Sydney still number three for retail rents while Melbourne slips one spot: CBRE

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Many would-be vendors whose properties have been on the market for more than three years are still unwilling to offer deep discounts to entice buyers, notes SQM Research in its latest list of the properties that have been on the market the longest.
"With only one significant discount – number five on the list, which is 290 Viveash Road, Swan View, WA (a property which has also been a regular on our top 10 most discounted properties), the remainder of the homes in this top ten have not been excessively discounted – considering you would assume their vendors may be becoming increasingly eager to sell," notes SQM director Louis Christopher.
<a target="_blank" href="/news">Houses are currently taking an average of 56 days to sell</a>, according to RP Data.
SQM's list coincides with a recent report by PRDnationwide that shows that in the Queensland suburbs with the largest drop in residential sales over the six months to June this year, house prices did not fall much. In other words, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/queensland-vendors-prefer-not-to-sell-at-all-rather-than-sell-at-a-deep-discount/2011112152454">vendors appeared intent on holding onto their properties </a>rather than selling in suburbs where prices were declining.
Christopher says that many of the properties' owners may be investors who have the luxury of time.
"Potentially some of these homes may be investment properties and if so, their owners may not need to vacate the property hastily or may not have committed elsewhere, so whether their home sells today, tomorrow or next year could potentially be of minor consequence," he says. 
However, he suggests that vendors may simply be unwilling to meet the market.
"Alternatively, there is always the possibility that these homes are cases which SQM Research has often referred to as 'stubborn Vendors' – owners who refuse to take any less than a certain amount of money for their property, regardless of the current market position because they are extremely reluctant to lose any money," Christopher says.
"The irony of this, of course, is that the longer their home is advertised the more likely they may have to discount it as house hunters are becoming increasingly cluey about market value and homes that have begun to go 'stale'.
"More often than not, when individuals see a home that has been advertised for an extensive period of time, they are either going to catch onto the fact that it may be overpriced or begin to think that there is something wrong with the property," he says.
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007103693">11 Ottiwell Street, Woorim, Queensland, 4507</a> (pictured)
On the market since: April 19, 2008
Initial asking price: $560,000
Current asking price: $499,000
Reduction: 11%
Days on market: 1,311
Last Sold For: $125,000 
Date of Last Sale: April 12, 2001
 
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007685342" target="_blank">5090 Tasman Highway, Buckland, Tasmania, 7190</a>
On the market since: May 18, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,283
Last Sold For: $68,500
Date of Last Sale: May 30, 2003
 
 
3
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007854879" target="_blank">19 Wellington Street, Oatlands, Tasmania, 7120</a>
On the market since: May 22, 2008
Initial asking price: $260,000
Current asking price: $205,000
Reduction: 21%
Days on market: 1,279
Last Sold For: $145,000
Date of Last Sale: November 22, 2003
 
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007162731" target="_blank">1403 Magenta Drive, Magenta, NSW, 2261</a>
On the market since: May 22, 2008
Initial asking price: $600,000
Current asking price: $535,000
Reduction: 11%
Days on market: 1,276
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" target="_blank">290 Viveash Road, Swan View, WA, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.45 million
Reduction: 37%
Days on market: 1,264
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006717702" target="_blank">30 Charles Street, Triabunna, Tasmania, 7190</a>
On the market since: June 22, 2008
Initial asking price: $235,000
Current asking price: $195,000
Reduction: 17%
Days on market: 1,248
Last Sold For: $173,000
Date of Last Sale: November 15, 2005
 
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006781491">22 Beach Street, White Beach, Tasmania, 7184</a>
On the market since: July 1, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,239
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007358900" target="_blank">186 Beenak Road, Gembrook, Victoria, 3783</a>
On the market since: September 5, 2008
Initial asking price: $1.025 million
Current asking price: $850,000
Reduction: 17%
Days on market: 1,171
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008048160" target="_blank">90 Franklin Parade, Encounter Bay, SA, 5211</a>
On the market since: December 1, 2008
Initial asking price: $1.55 million
Current asking price: $1.39 million
Reduction: 10%
Days on market: 1,085
Last Sold For: $675,000
Date of Last Sale: August 23, 2005
 
 
<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%3D2007601490" target="_blank">28 Julia Street, Swansea, Tasmania, 7190</a>
On the market since: February 2, 2009
Initial asking price: $240,000
Current asking price: $215,000
Reduction: 10%
Days on market: 1,019
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
SQM Research also offers a list of the <a href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
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cknowlton-QnEa6ntUYP

The longest 10: Three years on the market, and not budging much on price

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Growing concerns about the Eurozone and recently announced plans by the government to cut spending over the next four years are likely to cause the Reserve Bank to cut interest rates on December 6, according to some economists, borrowers and market commentators.
In today’s mid-year federal budget update, Federal Treasurer Wayne Swan announced $11.5 billion in new cost savings over four years and a lower growth forecast for the economy as part of plans to return the budget to surplus by 2012-13. Economists say the tightening of government purses and the reduced growth outlook is likely to encourage the RBA to cut rates when it meets next week.
Shane Oliver, chief economist at AMP Capital, says the government’s commitment to bringing the budget back to surplus by tightening its spending is likely dampen business and household spending.
At the same time he says Australian banks have been warning that their funding costs have been increasing as the situation in European – and associated global credit markets – has deteriorated.
“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. Such a move would result in a tightening in monetary conditions at the worst possible time. The best way to prevent it from occurring in the short term would be for the RBA to reduce its cash rate,” he says. Oliver expects the RBA to cut rates in December, arguing that waiting until February 7 (there is no monetary policy meeting in January) would be too high a risk due to “the increase threat from the Eurozone debt crisis, rising bank funding costs and increasing fiscal drag following federal government belt tightening”, all of which is set against a “benign inflation backdrop”.
“A further 0.25% cut in the cash rate (taking it to 4.25%) at its December meeting is justified and further rate cuts are likely to be required next year,” he says.
"There's a 60% chance they will, but I think 100% they should. The risks are just too great," he told the Sunday Telegraph.
 Ahead of the budget update, Alan Kohler wrote in his most recent Eureka Report that it was his belief that “there will now definitely be another rate cut in December”.
“The RBA has no choice. If there was a case for a cut in November, there is even more of one in December,” Kohler says.
An online poll carried out by Loan Market, the mortgage broking arm of Ray White, found that 39% of respondents – the highest proportion – expect rates to be cut again at the RBA’s December meeting, with 26% expecting a cut in early 2012.
Loan Market chief operating officer Dean Rushton says the RBA’s Melbourne Cup decision to cut the cash rate from 4.75% to 4.5% provides some clear direction for consumers, but more relief is needed in the lead-up to Christmas.
“There is no doubt they will need to cut further to continue to shore up confidence in the current global environment,” says Rushton.
“A recent survey we ran showed that the issues occurring in Europe were top of mind for consumers when considering their financial position and these issues are not going away and more cuts are needed to stimulate sectors of our economy.”
Peter Strong, executive director of the Council of Small Business of Australia, has urged the RBA to cut interest rates for the sake of the economy and employment and says a rate cut will help a number of small business owners including real estate agents, tourist related business and the service sector as a whole.
“These sectors employ more people and add more to the economy than mines and banks put together and the RBA needs to get its head into reality and away from the over emphasised world of big business.”
 
 
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lschlesinger-FZcF9M3vE6

Europe worries and budget cuts intensify pressure for RBA to cut rates in December

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The sovereign debt crisis being experienced in Europe could soon be hitting the hip pockets of Australian mortgage holders. 
As eurozone finance ministers prepare to meet in Brussels tomorrow and Wednesday to try and find a path out of the current crisis, Australian economists and banking analysts are warning that the major banks may decide not to pass on the full extent of future interest rate cuts in order to maintain net profit margins on their lending and other financial products. 
Margins on home loans are expected to come under pressure due to an increase in the cost of re-financing wholesale funding lines as more jittery offshore institutional investors demand a greater return for their money (despite Australian mortgage-backed securities and other debt products rated among the safest in the world). 
The risk was made clear last week by Katie Dean, head of Australian economics at ANZ, who said a key transmission risk to Australia from European sovereign debt troubles was “a systemic shock to the supply and/or cost of global credit”. 
“This week, we saw a range of worrying developments that signal these transmission risks have risen,” she said.
“If global credit costs fail to resettle, the cost of Australian wholesale bank funding will likely rise. 
“This increases the risk that these higher wholesale costs will be passed on to the end-users of credit: businesses and households.” 
Over the past financial year the Big Four banks raised about $100 billion annually from wholesale debt markets to fund mortgage lending – primarily from institutional investors in Europe and the United States. 
While the major banks have all said they can hold off tapping into off-shore markets until 2012, Goldman Sachs estimates they will collectively require around $72 billion in wholesale funding for the 2012 financial year. 
According to figures prepared by Deutsche Bank for Business Day, the Big Four banks will need to refinance a total of $48 billion in bonds by June next year,  with $16 billion needed to be refinanced by the end of January. 
This refinancing will have to be done at higher rate of borrowing, meaning either borrowers or the bank’s shareholders will have to bear the cost. 
Australians don’t need very long memories to recall that a similar situation evolved in the wake of the sub-prime mortgage crisis of 2007 and 2008 when banks either raised interest rates above official rate rises or did not pass on rate cuts in full, blaming this on the high cost of offshore funding. 
This culminated in Westpac’s infamous “banana smoothie” animated video, where it tried unsuccessfully to explain how the increase cost of wholesale funding (bananas) was pushing up the price of mortgages (banana smoothies) after the bank raised mortgage rates by 45 basis points in December 2009 following an RBA increase of just 25 basis points. 
An escalation of the crisis in Europe would only add to the cost of borrowing money offshore with the increase likely to be passed on to borrowers rather than shareholders.
This appears to be happening already. with ANZ chief executive and new chairman of the Australian Bankers Association Mike Smith telling the Weekend Australian Europe was already in a “nasty” credit crunch, which was likely to spread to Asia and Australia. 
Offshore jitters has already caused the Commonwealth Bank to pull an issue of covered bonds – considered an exceptionally safe investment because they are backed the  bank’s assets  - due to “heightened market volatility”. 
Aside from increased wholesale funding costs, banks will also be looking to maintain home loan profit margins following a home loan pricing war, with the most recent JP Morgan Banking Sector report warning that “current [home loan] pricing is about as competitive as it can get prior to diluting group returns”.
 
 
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European debt crisis could hurt Australians' hip pockets

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The moderation in Australian house prices since mid-2010 should ease concerns that a large housing price bubble had developed, according to the international ratings agency Fitch.
It noted household leverage was still high in Australia.
“The household debt-to-disposable income ratio was 153.5% in Q2 2011, above the 'AAA' median, albeit lower than some rating peers.
“This can be linked to the run-up in housing prices over the past decade and a half.
“Official and private sector estimates show that growth in housing prices have been moderating since mid-2010, which should ease concerns that a large bubble has developed,” the report notes.
 
 
 
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jchancellor-FAypfDUnLy

Fitch eases its concerns that Australia had a large housing bubble

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National vendor discounting eased over the September quarter, however the rate of discounting remains at inflated levels, according to RP Data.
Across the capitals, vendor discounting sits at -6.4% for houses and -6.1% for units.
At the same time last year, vendor discounting was -5.8% for houses and -6.05% for units.
Over the past five years the average vendor discount has been recorded at -5.9% for houses and -5.6% for units.
“The current high level of vendor discounting is reflective of the slowdown in market conditions across the county, increased stock levels and greater competition amongst vendors for a smaller pool of buyers,” RP Data head of research Tim Lawless says.
“With the market recording value falls across each capital city and listings at elevated levels, it is anticipated that vendor discounting is likely to remain at above average levels.”
<img src="/images/stories/rpnov29.gif">
Houses are currently taking an average of 56 days to sell with units typically selling in 54 days, according to RPData.
A year ago it took an average of 46 days to sell a house and 43 days for units.
“The results show that the average time it takes to sell a property has increased as market conditions have softened,” Lawless notes.
Lawless says the time on market and vendor discounting figures continue to suggest that there is a disconnect between prices that vendors are seeking and those that purchasers are prepared to pay for the properties currently available.
The latest report noted houses have taken 47 days and units 43 days to sell over the last five years, highlighting that both were currently at levels well above average.
The average time on market is simply the time it takes from when a property is initially advertised for sale to when it ultimately sells.
Vendor discounting measures the average amount vendors have to discount their properties from the initial list price in order to sell their property by private treaty.
 
 
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Vendor discounting eases but time on market extends: RP Data

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While the major banks still dominate the lending landscape, accounting for about 80% of all mortgages written in Australia, second-tier lenders can compete and in some cases do better than their big rivals by focusing on specific markets and playing to their strengths. 
This has been starkly revealed in the release of AFG’s inaugural first Competition Index, which shows that Suncorp wrote an impressive 14.9% of all first-home buyer loans in October, nearly double that of NAB (7.7%) and higher than ANZ (12.5%). 
Suncorp’s share of the first-home buyer market was almost triple its overall market share of 5.1% captured in October, up from just 3.1% in November 2010.
The proportion of the market seized by Suncorp is significant, since AFG’s network of brokers account for around 10% of all home loans written in Australia, so the index can be viewed as something of a barometer of consumer confidence (in this case first-home buyer confidence) in lending institutions.
It is also significant when you consider that Suncorp has a mortgage book of about $30 billion (with about $21 billion of this lent to owner occupiers), small in comparison to NAB’s $170 billion book ($121 billion lent to owner occupiers) and ANZ’s $160 billion book ($115 billion lent to owner occupiers). 
The strong showing of Suncorp in the first-home buyer space was noted by AFG’s head of operations, Mark Hewitt, who says the mortgage market has become a lot more competitive in recent months. 
“Suncorp have adapted their deposit requirements to assist First Home Buyers, in particular construction loans, and the results speak for themselves,” he says. 
The Queensland-based bank was not the only smaller lender to demonstrate it can compete with the bigger brands in the first home buyer segment, capturing 5.9% of the market, not far behind heavyweights Westpac (6.5%) and its subsidiary St George (6.4%).
Not only does the index show the ability of a smaller lender to compete, but it also shows that being big and having access to millions of advertising dollars does not guarantee success in key markets. 
In the first-home buyer space, the NAB brand was a resounding flop in October, capturing a pitiful 1.4% of the market. The bank had better success with its Homeside product, a product sold exclusively through brokers, capturing a more respectable 6.3% of the market. 
If the bigger banks wish to capture more of the first home buyer market, the performance of Homeside versus the NAB brand suggests reaching out to the broker channel in a more meaningful way may help increase the flow of business.
Perhaps NAB should follow ING Direct and Suncorp’s lead, which have both built up strong ties with the broker community. 
ING Direct recently announced that it was increasing its broker distribution team in the lead up to 2012, with new appointments geared to improve service and relationships with the third party channel while Suncorp recently appointed St. George’s former broker chief, Steven Heavey, as its head of intermediaries. 
Overall, second tier lenders accounted for 27.9% of the first home buyer market in October, a higher proportion than their overall market share of around 20%. 
This is significant given expectations by the likes of <a target="_blank" href="https://www.propertyobserver.com.au/residential/first-home-buyers-to-drive-2012-housing-price-recovery-bis-shrapnel-s-angie-zigomanis/2011112252494">BIS Shrapnel’s Angie Zigomanis</a>, who forecasts first home buyers to drive the housing recovery in 2012. 
Ten biggest lenders to first home buyers in October (non-majors in red) 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="308" valign="top">
Lender
</td>
<td width="308" valign="top">
Market share
</td>
</tr>
<tr>
<td width="308" valign="top">
Commonwealth Bank
</td>
<td width="308" valign="top">
26.6%
</td>
</tr>
<tr>
<td width="308" valign="top">
Suncorp
</td>
<td width="308" valign="top">
14.9%
</td>
</tr>
<tr>
<td width="308" valign="top">
ANZ
</td>
<td width="308" valign="top">
12.5%
</td>
</tr>
<tr>
<td width="308" valign="top">
BankWest
</td>
<td width="308" valign="top">
10.2%
</td>
</tr>
<tr>
<td width="308" valign="top">
Westpac
</td>
<td width="308" valign="top">
6.5%
</td>
</tr>
<tr>
<td width="308" valign="top">
St.George
</td>
<td width="308" valign="top">
6.4%
</td>
</tr>
<tr>
<td width="308" valign="top">
Homeside (NAB broker brand)
</td>
<td width="308" valign="top">
6.3%
</td>
</tr>
<tr>
<td width="308" valign="top">
ING Direct
</td>
<td width="308" valign="top">
5.9%
</td>
</tr>
<tr>
<td width="308" valign="top">
Citibank
</td>
<td width="308" valign="top">
2.9%
</td>
</tr>
<tr>
<td width="308" valign="top">
AFG mortgage
</td>
<td width="308" valign="top">
2.1%
</td>
</tr>
</tbody></table>
Source: AFG
 
The strongest player in the first home buyer segment in October was the Commonwealth Bank, which in combination with subsidiary BankWest accounted for more than a third (36.8%) of all first-home buyer loans processed by AFG brokers. 
Overall the ANZ brand captured the great share of the mortgage market accounting for a 20.1% of all loans written in October by AFG brokers, followed by CBA at 18.7% and Westpac at 13.7%.
</body></html>

Suncorp demonstrates smaller banks can compete with the majors

<html><body>
{yoogallery src=[images/stories/november29medich]}
Internal photos giving a glimpse into the Point Piper home of Ron Medich and his wife, Odetta, have been posted on an international architectural website.
Meanwhile the harbourfront property remains quietly listed for sale, having never been publicly marketed in print or internet.
The photos by Romello Pireira show its harbourside pool patio that comes adorned with Tasmanian tiger sculptures by Caroline Rothwell. The internal walls of the four-storey house are filled with contemporary art.
The Australian architectural studio Katon Redgen Mathieson completed the Point Piper project in 2009. The <a target="_blank" href="https://myinteriordesign.us/point-piper-residence">design website MyInteriorDesign</a> posted photos by Pireira of the assignment on its website on the weekend.
“This existing four storey house was stripped back to its concrete structure, remodelled and refurbished,” MyInteriorDesign notes. “The planning was simplified and a new circulation spine, with circular lift and stair, added and extended to the upper arrival level to the house. Limestone, American oak and Arabescato marble are used throughout the house.
"Sliding glass doors open across the facade to terraces and balconies. The rear internal walls of each floor are panelled in oak (living levels) and Belgian linen (bedroom levels) as a backdrop to the client’s contemporary art collection. An existing free-form swimming pool was refurbished on the harbour level terrace.”
Earlier this year Ron Medich slapped an ambitious $55 million asking price on the mansion he owns with his estranged wife, arts patron Odetta. Medich made a fortune with his brother developing industrial sites in Sydney’s west. Odetta has been one of the country's most generous patron of the arts.
Before his arrest in October over the 2009 murder of his business associate Michael McGurk, Ron Medich was living in splendour in the white house with point-blank images of the Opera House and Harbour Bridge.
Now on bail and wearing an electronic bracelet that monitors his movements, Ron Medich lives in a two-storey, 128-square-metre apartment in a city high rise overlooking St Andrews Cathedral.
With his wife spending most of her time in Europe, the couple's Wolseley Road home was quietly listed for sale in February.
The David Katon-designed house replaced the house bought from the restaurateur Wolfie Pizem in 2003 for $15.1 million.
Pizem had bought the 780-square-metre property for $160,000 in 1978.
Agents have estimated a more realistic price for the Medich home was about $40 million.
One agent quipped that the Medichs' art collection was worth far more than the house.
</body></html>

Tasmanian tigers keep watch over the Point Piper harbourfront mansion of the much-accused Ron Medich

<html><body>
The level of distressed commercial property available in Australia is expected to increase and dramatically exceed demand in quarter four of 2011, according the latest report by the Royal Institute of Chartered Surveyors.
The level of global supply is expected to outstrip demand by 60%, up from an estimated 40% in the third quarter.
<img src="/images/stories/distressed-property.gif">
Source: RICS
The level of interest in distressed properties from specialist funds in Australia is down from the second quarter.
Demand exceeded supply for distressed commercial property in New Zealand in quarter three, but RICS expects supply to exceed demand in quarter four. 
The global increase is led by Ireland, Southern Europe and the United Arab Emirates.
“Of the 25 countries included in the report, respondents in roughly three quarters indicated that they expected the supply of distressed assets to rise in the coming quarter, compared to the previous quarter,” the report found.
“Respondents in 15 countries expect supply to rise beyond increasing demand from investors, compared to only 11 in Q2.”
Germany and Russia were among the few European countries holding ground.
Germany had a slight increase in interest in distressed properties and in Russia levels of demand by specialist funds but the supply of distressed properties is also expected to fall.
“Other European commercial property markets have again weakened amid fears of the crisis intensifying in Greece and the political instability in debt-burdened Italy further threatening the single currency,” the report found.
“China and Brazil are still prospering, with both countries expecting the number of foreclosed properties coming to the market to decline over the near term.”
Distressed property is a one that is under a foreclosure order or is advertised for sale by its mortgagee.
</body></html>

Commercial property distressed sales forecast to rise in Australia, with New Zealand catching up: RICS

<html><body>
<table width="291" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Postcode
</td>
<td valign="bottom" nowrap width="133">
Suburb
</td>
<td valign="bottom" nowrap width="93">
Median unit price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3053
</td>
<td valign="bottom" nowrap width="133">
CARLTON
</td>
<td valign="bottom" nowrap width="93">
$295,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3000
</td>
<td valign="bottom" nowrap width="133">
MELBOURNE
</td>
<td valign="bottom" nowrap width="93">
$380,833
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3078
</td>
<td valign="bottom" nowrap width="133">
FAIRFIELD
</td>
<td valign="bottom" nowrap width="93">
$389,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3051
</td>
<td valign="bottom" nowrap width="133">
NORTH MELBOURNE
</td>
<td valign="bottom" nowrap width="93">
$420,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3031
</td>
<td valign="bottom" nowrap width="133">
KENSINGTON
</td>
<td valign="bottom" nowrap width="93">
$430,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3185
</td>
<td valign="bottom" nowrap width="133">
RIPPONLEA
</td>
<td valign="bottom" nowrap width="93">
$430,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3181
</td>
<td valign="bottom" nowrap width="133">
WINDSOR
</td>
<td valign="bottom" nowrap width="93">
$460,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3182
</td>
<td valign="bottom" nowrap width="133">
ST KILDA WEST
</td>
<td valign="bottom" nowrap width="93">
$460,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3183
</td>
<td valign="bottom" nowrap width="133">
BALACLAVA
</td>
<td valign="bottom" nowrap width="93">
$470,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
3182
</td>
<td valign="bottom" nowrap width="133">
ST KILDA
</td>
<td valign="bottom" nowrap width="93">
$470,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
</body></html>

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