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.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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

<html><body>
The declining interest rate environment is combining with other factors including a lack of new development and rising rents to create an interesting trend in the real estate market: the clock is being wound back 10 years. 
There are signs of a repeat of the conditions experienced in the early 2000s, when lower interest rates stimulated the real estate market.
 
In recent years interest rates have moved in an upward direction before remaining steady for the past 12 months. A higher interest rate environment, while keeping inflation under control, adversely impacts the economy and this is where the market has found itself. 
But the Reserve Bank decision to lower the official cash rate could represent a crucial shift in outlook for the economy as a whole and the real estate market specifically. 
Ten years ago lower interest rates stimulated the property market, and we find ourselves facing similar fundamentals now. Values have shown recent declines but should stabilise in time, creating a soft market that presents attractive opportunities for first homebuyers, upgraders as well as investors to become active again. 
A compelling argument could be made for 2012 being the best year in the past decade to buy residential property. 
Laing+Simmons forecasts interest rates to decline by up to 1% by mid-2012, which should translate to an increase in consumer spending and stabilisation of property values. 
At a broader economic level, higher interest rates in recent times have had the effect of reducing consumer spending as people turned their focus to increasing their savings and reducing their household debt. 
Should a declining rate trend materialise we expect to see consumer spending increase and property values stabilise, particularly for lower priced properties close to the city. 
Property prices, which have been flat or declined over the last four to six months, should again show growth in the medium term as a number of influences converge. 
The long-term low supply scenario in Sydney, driven by a significant period of inactivity stemming from a continued lack of finance for developments, should ensure residential rents keep rising. 
Additionally, with the latest REINSW figures showing rental vacancy in Sydney is just 1.5%, the fundamentals for investors remain strong. 
For developers, the reduced availability of credit could necessitate substantial pre-sales be achieved to secure finance, compounding the contracted supply situation. These constraints should see values resume an upward trend over the medium term as population growth continues unabated and demand further outweighs supply. 
More immediately however, we can expect values to stabilise. There will be pockets where values will rise comparatively quickly, particularly in lower priced new residential developments close to the city, again driven by the lack of supply of properties at lower price points in good locations. 
Declining interest rates, stabilising values, lack of new supply, rising rents and a low vacancy rate are converging to create a most attractive environment for property purchases – a scenario the market has not experienced for 10 years.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
</body></html>

lpilkington-GWhcD9raad

Next year could be the best year in a decade to buy property

<html><body>
With only eight weeks left in 2011 it is imperative to begin planning for the new year because those who are thinking of selling in February/March 2012 are thinking about it now. Many of our top-performing agents have set a goal to book in a minimum of five auctions for February before they go on holidays in December. This is an excellent attitude that will set them up for a terrific start to 2012 with great exposure in the marketplace.
The past few weeks have been a big test for the Sydney residential real estate market, which has held up relatively well. Given Cooley Auctions’ reach in the market place and our diversified client base we get to experience firsthand any confidence shifts in bidding and selling activity. We believe the shift is tightening to what we have already seen. One-off results and out-of-line sales do not determine a moving market. Days on market and clearance rates are a key indicator of market confidence, and we need to build confidence in the Sydney market. Our first interest rate cut since Melbourne Cup Day 2010 is good news for the industry. For the first time this year our clearance rate dropped below 50% for the month and the past three weeks have seen an on-site auction clearance below 50%. We are also seeing properties taking longer to sell and therefore days on market increasing.
So the question we need to ask a seller is how we differentiate their home from others on the market? Professional marketing and the urgency of an auction provides more reach in a marketplace and reduces days on market. Don’t be hard on yourself, be hard on the market. Properties are on the market to be sold. Trust is a key factor in a seller’s decision to accept an agent’s advice and trust is a key factor in the buyer’s decision to bid or sign a contract. So the real question is: do your clients trust you?
Market highlights
Residential sector
<ul>
<li>A two-bedroom semi with potential to extend and renovate (STCA) at 33 Noble Street, Five Dock sold for $890,000 through Shane Howley, Ray White Five Dock. Auctioneer: Charlie Powell </li>
<li>An original single level-home on a sundrenched 570 square metres approximately at 26 Eyre Street, Chifley sold for $900,000 through Cameron Airlie, Ray White Maroubra, South Coogee. Auctioneer: Ricky Briggs</li>
<li>A single-level home set on a generous 790-square-metre block with deck and landscaped pool at 14 Saunders Bay Road, Caringbah South, sold for $930,000 through Vanessa Gilbert and Chris Murray, Greg Gilbert Real Estate. Auctioneer: Andrew Cooley</li>
<li>An ultra-chic sun drenched north facing penthouse at 56/1 Murray Street, Pyrmont sold for $2,105,000 through James Crow, Morton &amp; Morton Real Estate. Auctioneer: Damien Cooley </li>
</ul>
Damien Cooley is the founder of <a target="_blank" title="Cooley Auctions" href="https://www.cooleyauctions.com.au/">Cooley Auctions</a>
 
 
 
</body></html>

damiencooley-AaMfa6CzJx

You must plan now if you want to sell in early 2012

<html><body>
With this week’s RBA interest rate cut, I found myself pondering on the impact this may have on the “property clock”. 
We’ve all heard the old saying that “property runs in seven-year cycles”.   While I agree property does run in cycles, the fact is we can’t make a generalisation for the entire property market and cycles vary in length. There is not one property cycle, but many. We need to study the areas we are interested to invest in to get an understanding of its individual property clock. In addition to micro events that will affect a cycle  like the opening of a new supermarket in the area for instance (the effect is an increase in jobs and people wanting to live there), there are also macro events that impact on the cycle.  An obvious example is the impact that the GFC had on property cycles. 
Part of my research process is to track specific postcodes in the areas we develop in closely. I collect the quarterly median price growth data and put it into a graph. I like to see a visual of what’s been happening.  So looking back on one of my graphs, I can see a distinct peak in growth that started in 2002 and continued through 2003.  Since then, we’ve seen this area’s median price plateau, and then small incremental growth spikes occurred, until a larger one in 2009 as a result of the government’s first-home owners grant, which enticed more sales. From 2009 until now, there has been some decent growth. In the past 12 months to August this postcode grew by 8.92% and right now the first-home buyers are back in the market encouraged by the RBA’s rate cut. This rate cut is physiologically representative of far more than the 0.25% cut we received.  We’d been told for a year or more to expect more rate increases. This had everyone sitting on their hands, and even saving while they watched and waited. Now the RBA goes the other way and a big sigh of relief blew over the country. 
If we now take a look at the Property Clock below, and I relate it to this particular postcode in the Hunter region, then I can guess that we’ll see some substantial growth in the median price soon.
<img src="/images/stories/jochiversnov3.gif"> 
Why?  Well this suburb (keep reading and I’ll reveal its name) has a very strong rental market so yields are increasing and there is an undersupply of rental properties. I’m expecting to see more investors coming into this market once they realise the strong returns.  You see the median price is just $238,000 and the median rent is $280 per week.  But Property Bloom completed projects in this suburb rent for $380 per week. 
I believe the Lower Hunter Region is around the 7.30 stage of the clock.  There is not a shortage of stock yet but the very good properties are selling quickly.  And there is certainly a new dwelling stock deficiency here. 
A Property Bloom development will typically takes 12 to 18 months to complete, and during this time demand is likely to strengthen and rents to continue increasing (due to limited rental stock).  And if we do see more rate cuts, then I believe we will move to 9 o’clock very quickly. So it is a great time to be developing and adding value to property. If you time it right, you can create some good equity then ride a wave of capital growth. 
Add to the mix the government’s NSW home builder bonus scheme, which waives stamp duty on off-the-plan purchases of new homes up to the value of $600,000 and on land up to the value of $400,000.  <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/nbb/">This bonus</a> is due to stop July 2012, so do not waste time if you want to take advantage of this bonus.
Savvy investors are always one step ahead of the general market. You can make an educated call on when you enter the market by studying the property clock – so are you savvy or mainstream?  By the way, the suburb I’ve been talking about is Cessnock.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

jochivers-wq5Bp59R5a

Learn where your region sits on the property clock before you begin your development

<html><body>
Federal Treasurer and Acting Prime Minister Wayne Swan has launched a vitriolic attack on NAB, labelling the bank “greedy” and saying it has “kicked working families in the guts” after it did not pass on the full 25-basis-point rate cut to borrowers today.
The bank will pass on 20 basis points rather than 25 basis points, blaming increased costs of funding for the decision.
“It is a greedy decision and one not justified in my view by the fundamentals,” says Swan, who before yesterday’s RBA announcement said banks would have no excuse for not passing on the full rate cut.
The attack comes despite the fact NAB has offered the lowest standard variable rate of the major banks for over two years and will continue to be the cheapest lender of the big four when it cuts its rate from 7.67% to 7.47% on Monday next week.
The five basis points the bank will not pass on to borrowers will boost its earnings by an estimated $65 million. Last week NAB announced its annual profit for the 2011 financial year was $5.2 billion.
</body></html>

lschlesinger-FZcF9M3vE6

'Greedy' NAB's decision not to pass on full rate cut 'a kick in the guts': Wayne Swan

<html><body>
The manager and trustee of  the Commonwealth Property Office Fund today announced its intentions to launch an off-market buyback tender for between $50 million and $100 million worth of shares in the A-REIT. The share buyback follows the sale of a number of prime CBD office assets held by the A-REIT over the last four months including 259 George Street in Sydney, which sold for $395 million July, (with settlement occurring this week); three Perth offices (1 Mill Street, 5 Mill Street and 197 St Georges Terrace) and a 50% interest in 5 Martin Place, Sydney, for a combined $589 million.
It also follows other property funds such as Stockland, Challenger Diversified Property Group and Investa Office Fund undertaking on-market share buybacks.
The fund could buy back between $50 million and $100 million worth of CPA units but reserves the right to buy back any amount up to 10% of units, or any amount below the anticipated range, depending upon market conditions.
The buyback is in line with the fund’s capital management strategy, which was outlined in August 2011.
The buyback scheme will not impact on CP retaining an appropriate capital and liquidity position for other initiatives such as the development pipeline and it also aims to maintain its distribution policy of distributing 70% to 80% of distributable income, or taxable income, whichever is the greater.
Charles Moore, fund manager of CPA, says the off-market buyback is considered appropriate given CPA’s capital position, and has the advantage that retail investors have the option of participating.
Participation in the buy-back is optional, with tender applications closing at 7:00pm, Sydney time, on Tuesday 13 December 2011.
The buyback is open to all eligible unit holders who are registered as at Friday, November 11, 2011.
</body></html>

Commonwealth Property Office Fund launches off-market buyback

<html><body>
Mortgage lending franchise RAMS will pass on the full 25-basis-point rate cut to its borrowers, taking its standard variable rate to below that of all the major banks.
The RAMS standard variable rate will drop to 7.38% on Friday (November 4) below that of NAB, which we will cut its rate to 7.47% three days later and has decided to pass on 20 basis points of the official 25-basis-point cut. 
RAMS is owned by Westpac and has a strong footing in the first-home buyer and self-employed market.
 
RAMS chief executive Melos Sulicich says RAMS continues to be committed to providing Australians with the best possible deal. 
“As a specialist local lender we hear and understand the concern about interest rates and think this reduction will have a positive effect for both homeowners and the wider community. It also shows our continued commitment to providing competitive deals,” he says. 
“For many Australians, their biggest monthly expense is their mortgage and it’s important to check it’s still working for you. If not, now is a great time to re-look at the market.”
</body></html>

RAMS undercuts all major banks

<html><body>
Building approvals were down 14% in September, according to the latest figures from the Australian Bureau of Statistics.
But HIA acting chief economist Andrew Harvey says approvals rose by 0.7% in the month of September in the core detached housing segment of the market.
“The headline result paints a worse picture than reality although it does have to be noted that the market conditions surrounding residential building are soft at present – total approvals in the year to September 2011 are down by 9.3% when compared to the year to September 2010,” he says.
“Today’s figures confirm that yesterday’s interest rate cut was warranted – it was a necessary first step to an eventual recovery in new home building.
“This is not just because it will save around $50 a month off the average mortgage, but more importantly because it should help boost confidence as homebuyers realise rates are no longer on an upwards trajectory,” Harvey adds.
The HIA notes the fall in building approvals is entirely due to the volatile “other dwellings” segment of the market, which fell a sizeable 32%.
“It’s best to abstract from monthly movements in the volatile ‘other dwellings’ segment, as it can be misleading,” Harvey adds.
“The core detached housing segment of the market saw approvals rise by 0.7% in the month of September although they are down by 1.8% over the September quarter.
“The headline result paints a worse picture than reality, although it does have to be noted that the market conditions surrounding residential building are soft at present – total approvals in the year to September 2011 are down by 9.3% when compared to the year to September 2010.”
“Today’s figures confirm that yesterday’s interest rate cut was warranted – it was a necessary first step to an eventual recovery in new home building. This is not just because it will save around $50 a month off the average mortgage, but more importantly because it should help boost confidence as home buyers realise rates are no longer on an upwards trajectory,” Harvey adds.
In terms of the jurisdictions, seasonally adjusted approvals fell in NSW (down by 32.2%), Victoria (down by 13.6%), Queensland (down by 12.7%), Western Australia (down by 1.5%) and Tasmania (down by 4.8%), while approvals rose in South Australia (up by 11.3%).
In trend terms, approvals fell in the Northern Territory (down by 6.2%) and were basically flat in the ACT (down by 0.1%).
Looking through the monthly volatility in building approvals, dwelling construction continued to experience its own two-speed cycle, according to David Cannington at ANZ Research.
“House building approvals continue to be weighed down by housing affordability constraints, while an increasing undersupply of housing and rental market tightness appears to be supporting a significant pipeline of medium density dwelling construction.
“The outlook for this pipeline will continue to fluctuate with developer margins and changes in government policies to address development constraints.
“However, we continue to expect that total dwelling investment, driven by ongoing weakness in house construction, will weaken further and detract from GDP growth in the year ahead,” Cannington notes.
Westpac notes the extreme volatility makes it difficult to get a fix on underlying conditions.
“The firming evident in private sector house approvals and finance data suggests activity may be finding a base in this segment. “There should be more support from state government policy changes in Qld ($10,000 incentive for new building) and NSW (reduced stamp duty concessions for first-home buyers purchasing established dwellings but remaining in place for newly built) and  the RBA's decision to cut rates," the bank says.
“However, fragile consumer sentiment, deteriorating labour market conditions and global financial turmoil will clearly put a dampener on things.
“Meanwhile how much residual weakness is yet to come through the private sector units segment - where there do appear to be more large-scale projects coming through but also an underlying, lagged weakness to the slowdown – is very unclear,” Westpac notes.
</body></html>

jchancellor-FAypfDUnLy

Residential building conditions still soft: HIA

<html><body>
The net effect of yesterday’s decision by the RBA to normalise its official target cash rate back to 4.5% is to hand back to borrowers the large top-ups the major banks added to the RBA's November 2010 rate hike. Privately the RBA was surprised by the magnitude of these top-ups. 
On the 21st of October <a href="https://christopherjoye.blogspot.com/2011/10/thre-great-inflation-debate">I anticipated that they would do exactly this</a> should the third-quarter inflation data print less than 0.6%: 
“I suspect the RBA would not be opposed to "normalising" the level of interest rates… If the third-quarter inflation numbers print on the very low side, they will hammer the final nail in the coffin of the current inflation debate. There will be no evidence that price pressures are accelerating. With a still high currency, this will then denude the rationale for holding the cost of money at the RBA's "mildly restrictive" level (assuming that the RBA is able to revise down all of its currently-elevated inflation forecasts out to 2013). By bringing the price of money back to what the RBA considers to be a "neutral" level, it can signal to the community that it is not going to unnecessarily punish it on the basis of a misguided pursuit of inflation-fighting zealotry. In doing so, it builds up more goodwill with the public that can be expended when the RBA has a real inflation battle to fight. A genuinely low core inflation print next Wednesday…might give the RBA sufficient ammunition to justify a pleasant Melbourne Cup Day present.” 
As it turned out, we got a double surprise: while the third-quarter inflation results were much, much lower than economists or the market expected, the earlier ABS downgrade to the second-quarter numbers, from +0.9% to +0.6%, was revised back up again to +0.8%, which to the RBA’s mind is unacceptably high (since it annualises at over 3%). 
As I have been at pains to explain here before, this second revision to the June quarter inflation data eviscerated the argument that core inflation had been decelerating since March 2011. In fact, the ABS’s best guess at Australia’s underlying inflation track now looks like this (see chart).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov2.gif"><img src="/images/stories/nov2thumb.gif"></a>
One of the more important remarks in the RBA's statement yesterday was a confirmation of this particular interpretation. More precisely, the RBA observed that "underlying inflation started to pick up in the first half of the year." Note the reference to the "first half of the year". There is no “first quarter”, or intimation towards disinflation over the second and third quarters. 
On the basis of the initial downward revision to the second quarter inflation data from 0.9% to 0.6%, which The Australian's David Uren described this week as a "bombshell", the RBA rather radically altered its inflation outlook. This was meant to be confirmed by the third-quarter data. Unfortunately, policymaking never seems to be that easy. Instead, the RBA got great news in the form of a downside surprise to price pressures over July, August and September, but bad news via yet another change to the ABS’s analysis of the inflation track in the first half of the year. 
Unfortunately, the decision the RBA made yesterday could only be justified by one lonely quarter of inflation data, which stands out as a striking anomaly when juxtaposed against the information contained in the preceding quarters, as illustrated in the chart above. This is positively ironic given the RBA had ignored very high, consecutive core inflation prints of +0.85% and +0.9% in the first and second quarters on the basis that it “needed more information”. It arguably tells us something significant about the way the institution operates: it would seem to find raising rates much more difficult than cutting them. 
An independent observer might respond that is a statement of the obvious. The extraordinary community resistance to the spectre of higher rates in the first half of 2011, when the level of rates was statistically indistinguishable from 15-year averages, highlights the obstacles this notionally “independent” organisation faces when trying to control the price of money. 
Yet RBA aficionados had thought that the bank had a forward-looking, so-called “inflation-targeting” approach to setting policy. What we learnt yesterday was that the RBA’s short-lived experiment with pre-emption, as exemplified by its November 2010 decision, has been abandoned. The RBA has more or less admitted that it is awfully difficult to forecast future inflation with any degree of accuracy. The change to its official forecasts out to 2013, which will be published on Friday, will underline this point. Yesterday’s decision to adjust policy in response to one quarter’s worth of data, when other contemporaneous information, such as the unemployment rate (ironically not materially different to where it was in October 2010), GDP growth-adjusted for the floods, domestic demand, retail sales, capex intentions, and so on, all imply the economy is chugging along at a trend-like rate. 
The question then becomes what the RBA thinks will happen in the future. The subtle message from yesterday is that the RBA is no longer going to take brave punts about what may or may not transpire. It will wait for historical data to guide policy into genuinely restrictive territory. 
 
<hr class="system-pagebreak">
 
So what then are the near-term implications of today's decision? The first will be a massive, and immediate, boon for Australia's highly interest rate sensitive housing market, which, as everyone knows, has been soft for most of the year. Over the nine months to end September, national dwelling values are down by 3.6%. After the RBA’s move, one should be able to find discounted variable home loan rates a tad higher than 6.5%, which is below the 6.9% average since the RBA started tracking this data. 
As previously explained, the housing market had been weighed down by consumer expectations of two to three more rate increases over the year ahead, which, of course, never materialised. Prior to the "double tap" in November 2010, we had been forecasting flat-to-negative capital growth in 2011 and more rate increases. We got a bit more than we bargained for in November. And it would seem that the conviction among Australian households that they would be slammed with another two to three hikes in 2011 did the RBA’s job for it. As Mark Bouris <a href="https://www.businessspectator.com.au/bs.nsf/Article/interest-rate-cut-RBA-Reserve-Bank-Yellow-Brick-Ro-pd20111101-N6V8K?OpenDocument&amp;src=srch">noted in his column yesterday</a>, the de facto rate hikes in 2011 crushed consumer sentiment and housing demand. 
Now that the RBA has reversed course, I expect confidence to rise. We are not simply talking about a shift in rates from “mildly restrictive” to “more neutral” (in the RBA’s words), as I had predicted would happen following a low third-quarter inflation result. No, the RBA’s decision is much more important than that. While key media proxies, like Alan Mitchell and Terry McCrann, are confidently declaring today that this was a once-off adjustment to the RBA’s monetary policy settings and is not going to be followed by a sequence of cuts, the fact is that the community had been literally budgeting (i.e., saving and spending) as if they were certain to get several more rate increases. As late as August, an amazing 30% of Australians felt they would get four or more rate hikes over the ensuing 12 months. 
So the RBA’s decision will engender a substantial shift in consumer expectations. Quantitatively, the median expectation will move by around 50 basis points, or two rate cuts’ worth. This will be reinforced by “market pricing”, which is far more negative than either the RBA or the average economists’ forecast. At the time of writing, the interest rate futures market is pricing a remarkable 100% probability that the RBA will cut rates another 25 basis points in December. While this is conceivable, it would only occur if there were a very serious deterioration in conditions across the North Atlantic. 
The RBA will be especially loath to shift rates before it gets the vital fourth-quarter inflation data, which will be released in late January. This will be critical for both confirming the calendar year track of inflation, and, more specifically, that the low third-quarter result was not simply a once-off. That is, it will want to verify that there are no material revisions to the past data. It is possible, for example, that the third-quarter data is revised up a touch (as the December 2010 quarter data was from 0.4% to 0.6%), and that the ABS’s new “smoothing” methodologies generate a surprisingly high fourth-quarter number. 
The one thing we know with certainty is that no one, including the RBA, can reliably forecast Australia’s inflation data: neither the financial markets nor economists got remotely close to the first- and second-quarter outcomes, nor the ultra-low third-quarter numbers. Accordingly, I don't share Terry McCrann’s confidence that everything will be benign in January. It seems the one constant with Australia’s inflation rate is uncertainty. 
So, we have learnt that yesterday’s rate cut is perhaps more stimulatory than it might appear at first sight, because it will trigger a big change in consumer views of the future. It will also likely knock the wind out of the sails of the Aussie dollar, at least for the next three months. The Aussie dollar has plunged four US cents since before the RBA’s decision, and is currently trading at 1.029 US cents. 
Currencies ordinarily price off global interest rate differentials. The financial markets are punting on many more rate cuts, so it is hard to see how this is going to afford much support for our exchange rate given that peer economy rates have already hit their “lower bound”. 
This will be a tremendous relief to Australia’s exporters, who should benefit from a relative price cut, and import-competing industries, which will face more expensive substitutes. 
Another possible source of stimulation is the long-term price of money. On the back of the RBA’s decision and further global risk aversion, three year government bond rates (prices) have declined (risen) some 35 basis points. 
As I have explained before, the reduction in longer-term interest rates has been the motivating force behind the banks’ willingness to in turn cut the cost of three-year fixed-rate home loans to as low as 6.2% (cf. Suncorp today).
The average three-year fixed-rate home loan in Australia since January 1995 has been 7.41% (see chart below). So current three-year rates are probably around a full percentage point below the decade-and-a-half benchmark, which, in anyone’s books, is stimulatory.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov21.gif"><img src="/images/stories/nov21thumb.gif"></a>
In summary, we had been expecting flat-to-negative house prices in 2011. Care of two rate hikes in November 2010, and two to three de facto increases in 2011, national dwelling prices are off by 3.6%. Once we accounted for consumer expectations of further rate hikes, our internal models did not project a genuine recovery in housing activity until mid-2012.  At the same time, the ABS reports that disposable household incomes have been expanding at a very rapid 8% per annum pace. This has led to a sharp fall in Rismark’s (and the RBA’s) estimate of the national dwelling-price-to-income ratio over 2010-11, and hence an improvement in affordability before we consider interest rates. 
Yesterday’s bold decision by the RBA to cut rates is a “game changer” for Australia’s housing market. Our models imply that we should see a rebound in activity one quarter earlier than expected (i.e., in the first three months of next year). Any further rate cuts will only embolden this dynamic. 
For over a year now we have argued that Australia’s housing market would be a good hedge against adverse economic outcomes. We believed that if the RBA’s terms of trade, or “Chindia”-driven, resources story did not play out as planned, then the bank will not hesitate to slash rates. The most direct and immediate beneficiaries of these cuts would be the four million-plus Australian households with fully adjustable rate mortgages that price off the RBA’s cash rate. That is, households that have been earning solid wages and solid disposable income growth, and have capitalised on a nearly fully employed labour market. 
In contrast to the extraordinarily volatile share market, a well-diversified portfolio of Australian housing has proven to be an exceptionally resilient store of wealth. Through the cycle, dwelling prices track disposable incomes closely. In fact, the cost of Australian housing has actually fallen slightly when deflated by disposable incomes since 2003. On a year-on-year-basis, there will be some inevitable variability. But over the medium term, the proposition that changes in purchasing power exert a very strong influence over prices tends to remain true. 
A final comforting thought for the housing market, is that, contrary to Steve Keen’s hysterical claims, there is absolutely no evidence of a catastrophic plunge in credit growth causing precipitous falls in dwelling prices. The hard empirical fact is that housing credit growth has stabilised at a rate in line with purchasing power, as we would expect. This point is illustrated by my final chart.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov22.gif"><img src="/images/stories/nov22thumb.gif"></a>
Christopher Joye is a leading financial economist. The above article is not investment advice.
</body></html>

chrisjoye-JYhJsTrNRC

Expect rebound after RBA's bold decision, a game changer for housing

<html><body>
NAB will pass on only 20 basis points of the official RBA 25-basis-point cut announced yesterday, a move that is likely to annoy borrowers, despite the bank maintaining the lowest standard variable rate of the big four banks with its current rate of 7.67% reducing to 7.47% on November 7.
NAB's rate cut will be a week earlier than Westpac, which will reduce its standard variable rate to 7.61% and ANZ (down to 7.55%), but three days later than the Commonwealth Bank (down to 7.56%).
Lisa Gray, group executive of NAB personal banking, says the bank has had lowest standard variable home loan rate of the major banks for more than 28 months. 
Gray says that volatile overseas markets and impending global banking security requirements has pushed up the costs of providing funds for lending.
“We are committed to offering the most competitive standard variable interest rate possible and these decisions are never taken lightly. However, the current instability in Europe presents us with additional funding pressures, as costs of funds continue to rise,” she says. 
While the bank did not pass on the full rate cut, it will cut deposit interest rates by the full 25 basis points on some products. 
Other major lenders to announce they are passing on the full rate cut include Westpac subsidiaries the Bank of Melbourne and St George which have both cut their standard variable rate to 7.55%. The rate cuts will take effect on November 14, in line with parent Westpac. 
The Bank of Queensland says it will pass on the full 25 basis point cut on November 11 bringing its standard variable rate home loan to 7.61% with CEO and managing director Stuart Grimshaw saying it was ‘the right thing to do’.  
“A lot of people around Australia are struggling and, with Christmas around the corner, offering our customers this rate relief is the right thing to do,” he adds.
ANZ chief executive Australia Philip Chronican says the bank will be passing on the rate cut despite higher funding costs.
</body></html>

NAB the only bank not to pass on full rate cut, but claims to still have lowest rates

<html><body>
Developer Mirvac has sold more than three-quarters of the apartments in its latest Docklands residential tower, Yarra Point.
As of September 30, 2011, Mirvac had sold 77% of the apartments in the $200 million, 31-level tower off the plan, with a combined value of $140.1 million.
In its quarterly report, Mirvac said its new release projects are “at the right price points in the right locations”, with 54% of its 2012 financial year lot sales secured by settlements and exchanges. 
In total Mirvac secured 395 lot settlements over the three-month period and says it is on track to achieve 1,800 lot settlements for the 2012 financial year.
The Yarra Point sales figures show residential investors have not been discouraged by a spate of media reports criticising the Docklands development for its lack of community feel, with one describing the precinct as a “purpose-built suburb hugger-mugger with tower blocks and affluence, but lacking heart and soul”.
Yarra Point is located in Yarra’s Edge, the section of Docklands south of the Yarra River, being exclusively developed by Mirvac. 
The $2 billion, 14.5-hectare master-planned site is home to six completed apartment towers comprising more than 750 apartments and 39 river precinct homes. 
Yarra’s Point will feature 201 one-, two- and three-bedroom apartments with prices starting from about $500,000. Construction has commenced, with settlement due to occur in 2013. 
Mirvac has previously sold out all five of the already completed towers as well as its top-end river precinct homes.
It has also received 8,000 registrations of interest ahead of release of its Harold Park project in Glebe in Sydney’s inner west, a master-planned community, which will comprise up to 1,250 new homes on the site of historic Sydney race track.
Mirvac acquired the 10.5-hectare site from the NSW Harness Racing Club last December, with the first phase of 296 apartments and strata-titled terraces set to be launched for sale off the plan this month.
For advice on buying off the plan, download our free e-book.
</body></html>

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News