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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Westpac believes the Reserve Bank of Australia board meeting minutes reveal that there is “ample scope to cut rates further”, with the timing determined by financial developments in Europe.
Westpac chief economist Bill Evans says the RBA’s commentary “clearly leaves the door open for further rate cuts”.
Westpac has been expecting a further 75-basis-point cut in this cycle, with its forecast that the next move would be February, rather than December.
Evans suggests one of Westpac’s reasons for expecting a delay to the next move had been around the RBA’s concern to confirm the sharp slowdown in underlying inflation.
Evans says given the huge emphasis that the RBA has placed on downside risks to the global economy as justifying the cut in November, December’s decision will hinge on global developments.
“We remain comfortable with our original view but can easily see circumstances which would bring the decision to cut rates by 0.25% forward from February to December,” Evans says.
“As the financial developments in Europe evolve over the next few weeks this picture will become quite clear,” Evans suggests.
  
 
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RBA minutes leave door open for future rate cuts: Westpac

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Westpac’s regional banks have made further cuts to their fixed-rate loans.
St George, BankSA and Bank of Melbourne have cut rates up to 26 basis points.
The cut takes the two-year fixed rate to 6.14%, and the three-year fixed rate to 6.24% for all three banks.
The new rates take effect from November 16.
St George's new general manager of mortgage broking, Clive Kirkpatrick, told Broker News Australia the bank had recorded strong demand for fixed-rate products.
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Westpac regionals cut fixed rates further

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The latest RBA board minutes indicate members’ view that the housing market is remaining subdued.
The minutes note growth in housing credit continued to run a little below growth in disposable income.
The Reserve Bank of Australia gives no direct sense on the future path for interest rates in the minutes for its November board meeting, although some commentators suggest diminishing odds of a December rate cut.
The RBA chose to cut the cash rate by 25 basis points to 4.5 per cent at its November board meeting, citing easing inflationary pressures and volatility on global financial markets for its decision.
The board notes preliminary estimates suggesting another small decline in nationwide house prices in September, to be about 3% to 4% lower over the year.
It says financial conditions have already been easing somewhat, with a range of lending rates edging down over the past couple of months.
“The household saving rate was forecast to remain around its current level and growth in public demand was expected to be subdued,” the minutes show.
It notes with overall credit growth remaining low, financial conditions on balance appear to remain somewhat tighter than normal, which was one of the factors that swayed board members to cut interest rates in November.
Although there had been a noticeable pick-up in building approvals in August owing to a large rise in the apartments category, the RBA deemed it was a volatile statistic from month to month.
The board members considered the significance of the inflation data that suggested that after a pick-up in underlying inflation in the first half of the year, there had been a moderation more recently, “notwithstanding ongoing large increases in utilities charges”.
CPI inflation remained above 3% on a year-ended basis, but is expected to decline significantly over the next few quarters, as prices fall for some key food products that had been affected by adverse weather earlier in the year.
The RBA notes economic activity suggests that the pace of growth in demand and output outside the resources and related sectors is a little lower than had been expected earlier in the year.
The revised staff forecasts pointed to the likelihood of overall GDP growth being close to trend over the next one to two years, and inflation being consistent with the 2% to 3% target.
The minutes note RBA staff had undertaken a review of the forecasts for domestic growth, which had been revised lower reflecting the weaker global outlook, the decline in confidence and asset prices since August, and a downward revision to the outlook for coal production.
“Over the forecast period, domestic demand was expected to grow at an annual rate of around 4%, with growth in imports substantially faster than this, owing to both the high exchange rate and the mining sector's relatively greater use of imported capital goods,” the minutes say.
“Overall GDP growth was expected to be around 3% to 3½% cent in 2012 and a little stronger in 2013.
“Correspondingly, the unemployment rate was expected to increase a little, before drifting lower again.”
The RBA notes the outlook for the resources sector remains very strong, with mining investment expected to increase to around 7% of GDP by 2013-14.
“In contrast, growth in the non-mining economy was expected to be below trend.
“The sovereign debt problems in the euro area posed the most significant risk to the growth outlook.”
The bank’s inflation forecasts have also been lowered, reflecting both the lower starting point and the modest downward revision to the forecast for output growth.
“Based on the current set of assumptions, inflation in underlying terms (excluding the effect of the carbon price) was expected to be around 2½% in 2012, and to pick up a little in 2013, but still be consistent with the inflation target.
“This general outlook for inflation was conditional on aggregate wages growth remaining at around its current pace and a pick-up in productivity growth.
“The year-ended rate of CPI inflation was expected to fall below underlying inflation in early 2012, as banana prices fell to more normal levels.
“It was then expected to increase to around 3¼% following the introduction of the price on carbon in mid-2012, before again declining,” the minutes say.
 
 
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RBA sees housing market as subdued

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The South Korean-backed Cockatoo Coal mining company has emerged as the $8 million buyer of a beef cattle farm virtually on the doorstep of Nicole Kidman’s peaceful Sutton Forest retreat, Bunya Hill.
It was <a href="https://www.propertyobserver.com.au/residential/title-tattle-whispers-that-coal-miners-boring-into-nicole-kidman-s-nsw-rural-neighbourhood/2011102052022" target="_blank">whispered last month in the Southern Highlands</a> that the coal mining consortium, claiming interest in pursuing farming, had bought the 425-hectare holding, Wongonbra, from unsuspecting vendors.
Kelly Lofberg, the coal company spokesperson, declined to return Property Observer’s phone calls and emails, but there’s now confirmation that it bought the land just a few kilometres from the rear of Bunya Hill through a shelf company, Aurelius Rural, to ensure the secrecy of its strategic purchase.
It gives Cockatoo an area from the Hume Highway through to the Illawarra Highway in which to carry out exploration and possibly install a mine head.
"It will directly affect their (Bunya Hill) property as coal-filled trucks would be passing all day long and maybe through the night on their way to Wollongong for export," local Greg Barnsley has suggested.
The coal company hasn’t yet decided where the underground mine will be located while it continues exploratory drilling, but has signalled it was not their intention to buy any further land in the immediate future, although it could not rule it out happening again.
The Korean steel-maker POSCO owns 70% of Aurelius Rural, with the remaining 30% owned by Cockatoo Coal, with the venture taking the name Hume Coal. 
The syndicate assumed the exploratory rights from Angelo Coal (Sutton Forrest) Pty Ltd, which had held the mostly formant lease since 1985.
Goulburn MP Pru Goward says she is “heartbroken” by the announcement, saying it would make opposing coal mining much harder.
The miner’s exploratory lease is due for renewal on November 23, with locals lobbying that Energy Minister Chris Hatcher not renew the lease.
<a href="https://www.propertyobserver.com.au/new-south-wales/coal-mine-anxiety-for-nicole-kidman-s-sutton-forest-property/2011062150555" target="_blank">Kidman is among the 424 land owners in the 115-square-kilometre exploration area who were recently advised 120 test exploration holes would be drilled to check on the size of the coal offerings.</a>
Many locals fear that the potential mining will not only destroy the peace of the area but also contaminate underground water reserves.
In 2008 Kidman and her country music star husband, Keith Urban, snapped up Bunya Hill, a 45-hectare cattle stud with a magnificent 1878 Georgian mansion, thinking they would be allowed at enjoy the home in peace.
Southern Highland Coal Action Group’s Peter Martin says he cannot understand why the coal company could not buy the property under the Hume Coal name rather than “running around the neighbourhood in secret using Aurelius”.
“Our technical guys have said the property is an ideal location for a mine head with to run the conveyers into the mine seam,” he told the local Fairfax paper, The Southern Highlands News.
“We think they will use its direct access to the Hume Highway to truck coal up to the rail loop over near the Boral’s cement plant.
“People don’t spend that much money to punch a couple of holes in the ground.
“They have to punch 120 holes in the whole area to proof up the resource, and they can’t do it from one location.”
The land was sold by Michael Ball and his business partner, Peter “Talkie” Newton, with Ball saying he never suspected they were selling to the South Korean steel giant.
Ball told the Illawarra Mercury he would not have sold had he known the buyer was Hume shelf company Aurelius Rural.
Locals fear with ownership of such a large parcel of land, it will be easier for Hume Coal to be able to develop its planned mine.
The company is hoping to prove up underground reserves of more than 100 million tonnes, and is currently undertaking drilling and seismic survey work in the nearby Belangalo State Forest
The holding company that bought the farm has directors who work at law firm Blake Dawson, one of them Ian Williams, who lists among his clients as POSCO.
<img src="/images/stories/kidmancoaldoc.gif">
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Nicole Kidman now has Cockatoo Coal as her near neighbours after mining giant pays record price for Sutton Forest

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Covered bonds are a fancy new funding instrument being promoted by the major banks – and notably only the majors – that were championed by Wayne Swan and Joe Hockey as a policy to enhance competition in the banking and finance sectors. As predicted by some, they seem to be benefiting the incumbents most. 
Covered bonds have one significant impact that arguably disadvantages all Australians with a bank account. In the past, when you put your money with the bank, you were the first person who was paid back if the bank went belly-up. And banks do go belly-up. In the 1890s, about 90% of all private Australian banks collapsed. More recently, we have seen hundreds of banks fail around the world, including in once-stable developed countries like the US and UK. Australia’s turn could come when a financial crisis eventually originates out of Asia, which it inevitably will. 
An investor in a covered bond gets a priority claim over the bank’s assets, which ranks ahead of your deposit. Specifically, the major banks will set aside individually up to $30 billion plus worth of their home loans in order to “secure” their covered bonds. That means if the bank falls over, the covered bond investors can take possession of the underlying home loans and sell them to repay what they were owed by the bank via the bond. 
Since covered bonds are being backed by residential home loans, investors are understandably turning their minds to the quality of these loans, and the integrity of Australia’s housing market more generally. Given our expertise in both these areas, we have been inundated by enquiries from institutions around the world. In fact, I am presenting to a group of global hedge funds on this subject at 12.30pm today. 
The majors have decided to “mark-to-market” the assets (or “collateral”) securing their covered bonds using house price indices. This makes a great deal of sense. If Australian house prices are falling (as they are currently), then the value of the assets underpinning a covered bond is also declining. (It is actually a little more complex than this, and perhaps best characterised as the asset having a “higher level of risk of loss” in view of the lower level of borrower equity sitting above the loan.) This creates immediate problems for investors, since the protection they have in a crisis is less than what they expected to be the case. 
Regularly revaluing the homes underlying a covered bond on a high-frequency – say monthly – basis is likely to be especially important to investors since: 
(1) house price indices are reported with a lag (up to four months in the case of the quarterly ABS index); and 
(2) in any fast-moving crisis that involves a bank failure, house prices are almost certainly likely to be falling too. You don’t want to have to wait four months to work out how much your collateral values have declined by (or by how much you risk exposures have risen)! 
I understand that most of the major banks have selected RP Data-Rismark’s monthly hedonic index as their valuation benchmark of choice for the purposes of covered bonds. 
This is not a surprise given that the Reserve Bank of Australia has made it clear that it relies on this index most heavily when assessing risks in Australia’s controversial housing market (see also <a href="https://rismark.com.au/indicies" target="_blank">here</a> for independent remarks from CommSec, Moody’s, Goldman Sachs, and Macquarie). Or, to borrow the words of Westpac’s chief economist, “RP Data-Rismark are the RBA’s “preferred data analysts' for house prices.” 
 
Another alternative would have been to use Australian Property Monitors’ (APM) “stratified median” index, which the RBA employs as a back-up to RP Data-Rismark.
A final, least desirable, option is the ABS’s stratified median house price index, which has been regularly discredited by market analysts and more subtly dismissed by the RBA. 
From a covered bond investor’s perspective, the choice of house price index is likely to have major consequences for (1) how accurately the covered bond assets are valued, (2) how frequently investors get revaluations, (3) the speed with which they can replace assets that are determined to be “impaired”, and, most importantly, (4) the pricing of the covered bond itself. 
If a home loan is in default, repaid, or if the value of the home securing the loan is less than the loan amount itself (i.e., the borrower has negative equity), covered bond investors usually require that the issuing bank replaces these “bad” loans with “good” ones. 
Since covered bonds are expected to be AAA-rated securities, this seems like a reasonable demand. 
A $1 billion covered bond will probably have about 5,000 residential dwellings underpinning it. One problem with the ABS index is that it excludes 20% to 25% of all property types in Australia. Specifically, the ABS index only includes “freestanding houses”, and ignores all apartments, units, semi-detached homes, terraces and so on. 
About one-quarter of all home loan borrowers live in these “attached” dwellings. Given the sometimes wide divergences between the gains and losses attributed to free-standing houses versus apartments, use of the ABS numbers as a mark-to-market tool is likely to generate misleading results in the context of covered bonds backed by home loans. 
In contrast, both APM and RP Data-Rismark’s indices include all dwelling types, which is why they deviate so significantly from the ABS results on occasion (the RBA prefers that we report these “all dwelling” figures). 
A second problem with the ABS index is that it is only reported at the “capital city” level. To properly mark-to-market a portfolio of 5,000 homes, one should really be using postcode or regional house price indices to minimise the substantial “basis risks” that would otherwise exist between the index and the home. For example, about 2,000 properties will, on average, be situated in NSW. But within the state of NSW there are huge differences in the rate of house price change across regions. 
One only needs to reflect on the example of southwest Sydney in the post-2003 period. This region accounted for an extraordinarily high share of all mortgage defaults across Australia (some estimates put it at over 75%), and experienced substantial house price declines. In comparison, many other areas within Sydney had low default rates and steady house price growth. Benchmarking using a capital city index would have underestimated the southwest Sydney problems. 
A third issue with the ABS index is the fact that it is reported on only quarterly basis, and then one month following the end of the subject quarter. This means that the sales data upon which it is predicated can be up to four months old.
 
<hr class="system-pagebreak">
 
As I noted earlier, investors in covered bonds are likely to be most concerned about collateral values during a crisis. Any stress imposed on Australian banks, which on average have 60% of their assets invested in residential home loans, is likely to have been either caused by, or precipitate itself, substantial house price declines. This is precisely why in APRA’s stress-testing of bank balance sheets it assumes that Australian house prices fall by about 25%. 
In such situations, investors are presumably going to demand the most timely pricing information possible so that the bank in question can remove the impaired assets from its covered bond portfolios. It is hard to see how this could be achieved with the ABS’s current reporting frequency. The monthly house price proxies made available by RP Data-Rismark, APM or even Residex are likely to be a superior alternative. 
On this note, RP Data and Rismark will be shortly launching the world’s first “daily” house price index, which has been designed especially for the Australian Stock Exchange. This index, which is based on a sophisticated statistical method known as “hedonic imputation”, will afford extremely accurate and low variability house price estimates right down to the suburb level. It will be the first time in history that all homes in a suburb have been repriced every single day using the daily flow of incoming sales data. 
How big can the differences between indices really be? In the chart below I have overlaid the ABS national capital city index against RP Data-Rismark’s equivalent measure.
Click to enlarge
<a href="/images/stories/nov15.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/nov15thumb.gif"></a>
Observe how in the global financial crisis the ABS’s crude median index reported substantially lagged house price declines that were also twice as large (-7%) as those documented by RP Data-Rismark’s regression-based benchmark (-3%). The same was true during the 2009-10 period, when the Australian housing market bounced back strongly and banks like CBA came in for criticism for having excessively large exposures to the first time buyer market. (They ended up using some of our analysis to refute this claim!) 
According to the ABS measure, house prices inflated 23% between March 2009 and December 2010. Once again, the ABS numbers were reported with a material delay. Yet the month-to-month RP Data-Rismark index only recorded 16% growth. Anyone investing in a covered bond in March 2009 would have been led to believe that they had superior collateral protection than was actually the case had they been relying on the ABS. 
The confusion that could be potentially caused by house price measurement problems in the covered bond market is graphically highlighted by a “<a href="https://www.commbank.com.au/about-us/group-funding/articles/covered-bonds-primer.pdf">Covered Bond Primer</a>” published by the CBA. 
Like every other major bank and investment bank in Australia, CBA’s economists have expressed reservations about the biases inherent in the ABS house price proxy. 
Notwithstanding this, on page 17 of CBA’s covered bond primer, the bank appears to have unwittingly presented data from both the ABS and RP Data-Rismark. I have enclosed this image below. 
The very wobbly lines in the first chart are from the ABS’s non-parametric median price index. The second chart is a replica of a similar diagram regularly reported by the RBA, and is, of course, prepared using RP Data-Rismark’s hedonic index. 
Covered bond investors are likely to be best serviced by common valuation benchmarks. In the absence of a consistent standard, investors may price at a discount covered bonds relying on less accurate house price information relative to those that are valued using the best available data. And since the major banks expect to eventually issue close to $100 billion worth of covered bonds, seemingly small differences in the rate at which house prices are expanding or contracting could perpetuate substantial dollar value variations in covered bond prices, to say nothing of all-important investor perceptions.
<img src="/images/stories/nov151.gif">
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
 
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Stand by for world's first daily house price index: Christopher Joye

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Sydney’s rental crisis will not be resolved until the state and federal government takes “immediate and sustained action” to encourage property investors back into the market, according to the Real Estate Institute of New South Wales. 
The rallying cry from follows the release of data showing Sydney’s vacancy rate has remained unchanged at just 1.4% in October, while tightening by 0.2% to just 1.3% in the inner-city suburbs. 
Vacancies eased in Sydney’s middle suburbs (10 to 25 kilometres from CBD), up a marginal 0.2% to 1.6%, and in the outer suburbs (more than 25 kilometres from CBD) they are up just 0.1% to 1.4%. 
Alongside a shortage of available rental properties, weekly rents are rising. 
According to the most recent Real Estate Institute Market Facts report for the June quarter, the median weekly rent on a three-bedroom house in Sydney now stands at $400, up 5.3% over the 12 months to June 2011, while two-bedroom apartments and other dwellings are up 7.1% over the same period to $450 a week. 
REINSW president Wayne Stewart says that despite the increases in vacancy rates in some areas, “the overall rental vacancy outlook in NSW remains depressed”. 
“The rental crisis, which has dramatically reduced housing availability across NSW, requires immediate and sustained action by both the state and federal governments to stimulate investment in the residential property market. 
“There will be no relief for tenants until we see interventionist action to encourage private investment as well as slashing planning red tape which is slowing new residential development.
“To create a stable and healthy rental vacancy rate which meets both the needs of tenants as well as landlords, we need to see significant numbers of new rental properties being brought online.
“Until then, we will see growing numbers of people competing against each other for an ever smaller number of available properties,” he says.
Outside of Sydney, rental picture is slightly better in other metropolitan centres, with vacancy rates up 0.6% to 1.9% in Newcastle and up 0.2% to 1.8% in Wollongong.
Vacancy rates fell 0.2% on the Central Coast to 1.7%.
For tips on buying your first investment property, download Property Observer’s free e-book.
 
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Government action needed as Sydney rental crisis worsens: REINSW

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Another round of fixed rate cuts looks likely with, St George tweeting that it will soon release “very competitive 2 and 3 Year Fixed Rates”.
<img src="/images/stories/stgeorge.gif">
Another round of fixed rate cuts looks likely with, St George tweeting that it will soon release “very competitive 2 and 3 Year Fixed Rates”.
The <a target="_blank" href="/news">bank last cut its fixed rates at the end of September</a>, reducing its three-year fixed-home loan rate by 0.15 points to 6.39% per annum as well as trimming its two-year fixed home loan rate by 0.05 points to 6.39% for its Advantage Package customers. Its basic two-year and three-year fixed rate loans carry a rate of 6.54%.
Expectations of more fixed-rate cuts follows the Reserve Bank’s decision to cut the official cash rate to 4.5% in November. <a target="_blank" href="/news">Most lenders passed on the full 25-basis-point cut to variable-rate customers.</a>
Major lenders such as Westpac believer a further 75 basis points will be trimmed off the official cash rate over the next 12 months, meaning lenders will have to continue to cut fixed rates to entice borrowers to opt for fixed products.
According to financial products comparison website RateCity.com.au, the average three-year fixed rate is now 6.61% compared with 7.43% at the start of the year.
Non-bank lender Homestar Finance currently offers the cheapest fixed-rate mortgage according to RateCity, with a three-year fixed loan at 6.15%.
The cheapest variable rate advertised on RateCity.com.au is 6.38% being offered by online lender Loans.com.au while the cheapest of the big four banks is NAB, which offers its standard variable mortgage at 7.47%.
Since the first of August this year, 90% of mortgage lenders have lowered some of their fixed rates, with some cutting fixed rate home loans by as much as 140 basis points in that time.
The <a target="_blank" href="/news">Commonwealth Bank was one of 36 lenders that cut their fixed rates in October</a>.
The Commonwealth Bank cut its five-year fixed rate by 85 basis points to 6.89% in October, the biggest fixed-rate cut of all the major banks.
All the major banks have cut their fixed rates by at least 50 basis points for spring, according to the mortgage comparison website.
 
 
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Fixed home loan rates set to be trimmed even further

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Australian construction industry profits are due to slip as the number of construction projects diminishes and construction costs increase in 2012, according to the latest report by Rider Levett Bucknall.
“Risk-averse banks and lending institutions continue to demand high levels of pre-sales in order to satisfy their stringent risk criteria. Consequently, there are still large numbers of projects unable to gain access to finance,” says RLB head of global research Roger Hogg.
Levels of construction in the Darwin and Canberra markets began to ease in the third quarter of 2011 and currently tenders in the marketplace are being keenly contested.
Darwin is hardest hit, with tender prices predicted to fall 11.4% and construction costs due to increase 5.3%, according to RLB.
In Adelaide tender prices will fall 3.4% and costs will increase 4% in 2012.
Tender prices increased moderately in other cities but labour and material costs are expected to exceed these price rises.
In Brisbane tender prices will increase 1% but costs are expected to rise 4%. In Canberra tender prices will increase 2.4% as costs increase 3.5%, in Melbourne prices will increase 2.7% as costs increase 3.5% and in Sydney prices will increase 2.2% as costs increase 3.5%.
Hogg says the private sector has failed to take in the slack from government stimulus projects.
“With the private sector failing to replace the government stimulated construction and infrastructure programs, contractor concerns regarding diminishing workloads will increase through the remainder of 2011 and into 2012,” he says.
The report found that residential construction work done for the June quarter was down 8% year-on-year and the national housing sector down 12% as house prices continued to fall in most capital cities.
National apartment construction slipped 2% although Melbourne bucked this trend, growing 11% by volume.
It also found that total non-residential construction work fell 24% for the June quarter year on year, thanks to weakening demand and low levels of consumer and investor confidence.
Hogg says as construction work falls, competition increases and to add to the pain costs are increasing at the same time.
“Margins are still being placed under pressure as competition for work is elevated. In the context of general levels of CPI, continued stable labour, materials and fuel costs will further enhance the cost competitiveness of building in Australia,” he says.
“It is difficult to say when these conditions will ease, but much depends on the strength and speed of the global recovery and the confidence this will provide the larger lenders.”
However, the outlook is not entirely grim. A number of projects have been awarded in Adelaide, including the $800 million Southern Expressway. National office construction increased 6.8% and industrial construction increased 20.8%.
 
 
 
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Slower times predicted for construction industry in 2012 given risk-averse banks 

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Days on market is a strong indicator of how the private treaty sales market is performing.
<img src="/images/stories/stocknovember15.gif">
Source: APM
And the most recent statistics certainly show there has been a slowing in house sales intensity in most capital city markets in September.
The data has been provided by Australian Property Monitors.
Property Observer has put sunshine over the best-performing months of the past year and clouds over the slowest-performing months.
It will be interesting to see whether the dramatic Melbourne result continued into the mid-spring. Ditto the improved conditions in Brisbane and Canberra.
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Sunny days far behind as days on market for houses increases in all capitals except Brisbane

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Victoria has cemented its position as the epicenter of new residential and commercial building projects, accounting for nearly a third of all national building work, according to the Building Commission’s November report.
Victorian building work made up 32% of national building approvals during 2010-11, up from 28% recorded in 2009-10.
For the month of August, Victoria accounted for 31% of the nation’s building activity, compared with 33% in July and 32% in June.
It has been the leading construction state since January 2010.
Overall, the east coast continues to dominate building construction in Australia, accounting for 85% of activity in 2010-11.
During 2010-11 building approvals in New South Wales made up 23% of national approvals, down from 24% in 2009-10. Queensland reported 20%, down from 21%, South Australia was stable with 6%, and Western Australia’s share decreased to 13% from 15% over this period.
<img src="/images/stories/vicbuilding.gif">
Source: Victorian Building Commission
The report also revealed the challenges facing the building sector, with the value of building activity per building industry employee down 8% over the last year to about $128,000.
As of June 2010, there were currently just over 14,200 domestic builders in Australia and around 4,400 commercial builders, 4% more than there were in June 2009.
 
 
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