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 is the first of the major lenders to say it will pass on today’s 0.25% rate cut in full to its variable rate mortgage holders, though borrowers will have to wait two weeks for some relief. 
The bank says it will cut its standard variable home loan rate by 0.25% to 7.61% per annum with the new rate only becoming effective on Monday, November 14. 
The Commonwealth Bank has also confirmed that it will pass on the full 0.25% to its borrowers, but will cut rates 10 days sooner on November 4 with its base variable rate reducing to 7.05%. 
“A reduction in interest rates will provide a timely boost to sentiment and generate a positive flow-on effect for the broader Australian economy,” said Rob Coombe, group executive Westpac Retail and Business Banking. 
Both banks were beaten to the bell by super fund-owned ME Bank, which announced last week that it would pass on any interest rate cut in full to its customers. 
It confirmed this move today following the RBA decision with Ian Hendey, group executive of brand, product and distribution, saying its decision “highlights the importance of acting in the best interest of customers, especially in an environment where concern over shareholder profit often supersedes customer-centric strategy”. 
“This time last year, when the RBA raised its cash rate by 0.25% p.a., ME Bank bucked the trend by doing the right thing by its customers and only raising its standard variable home loan rates in line with the cash rate rise of 0.25%," he says.
Online lender loans.com.au says it will pass on the full rate cut to borrowers immediately. 
Loans.com.au managing director Marie Mortimer says the interest rate cut would not only be passed through to those who hold existing loans but would be extended to potential borrowers who had already applied for preapproval on their new home loans.
“From Wednesday (November 2), this entire group can expect to save almost $50 a month on the cost of an average home loan of $300,000 as their interest rate will be slashed by the full 0.25%,”she says.</body></html>

lschlesinger-FZcF9M3vE6

Banks start passing on rate cut with varying speed

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The decision by the Reserve Bank to cut the cash rate by 0.25% on Melbourne Cup Day has been applauded by Mortgage Choice, RP Data, Ray White and the HIA, who all say it will deliver a boost to consumer confidence. The commentators all issued their views within minutes of today's rate cut announcement.
“The RBA knows times are challenging for many consumers and businesses and has reacted by reducing the interest rate restriction on the economy, to boost confidence,” says Mortgage Choice spokeswoman Kristy Sheppard.
According to Sheppard, the less restrictive rate setting should help businesses “to a position where they feel less pressure to cut employee hours and/or numbers”.
“Borrowers will be delighted, but the move probably won’t result in most heading to shops – de-leveraging and building a protective financial shield against tougher times is their focus.”
“Our national survey completed last month discovered only one in five of the respondents, all of whom were mortgage holders, would spend more if interest rates drop. In fact, over half will now contribute more into their home loan and not spend any extra,” Sheppard says.
RP Data head of research Tim Lawless says the rate cut should not come as a surprise from a housing market perspective, “considering the soft market conditions that have been evident since June last year have created no inflationary pressures”.
“In fact, capital city home values are down 3.6% from their December 2010 peak and rental rates have increased by just 4.5% over the 12 months to September.
“The improved debt servicing position will be a welcome improvement to anyone with a mortgage, however the primary benefit from the rate cut is likely to be seen in an improvement in consumer sentiment which should lead to an uplift in housing transaction volumes which are currently tracking about 13% below the five year average nationally,” he says.
Brian White, chairman of the Ray White Group, says the nation’s two-year  discussions about a possible rate increase have been “clearly been inhibiting the psyche of some potential buyers and sellers who have lacked the economic confidence to make decisions about property transactions in that period”.
"There are many people on the sideline who have been awaiting a more favourable cash rate before engaging in the market and this, in turn, has been impacting other sectors of our economy."
"It's encouraging for the RBA to recognise that people need to feel secure in their property equity in order to spend elsewhere. When an individual buys a home they are effectively embarking on a long journey with the RBA," White says.
HIA acting chief economist Andrew Harvey says the RBA made the right call for the economy.
“Both consumers and business need a shot of confidence given offshore and domestic economic circumstances. Today the RBA used the opportunity to administer that shot and it is exactly the right call.”
In his statement on the November Monetary Policy Decision, RBA governor Glenn Stevens suggested that the lower quarterly inflation figure and concerns about confidence outside the resources sector in September pushed the bank over the line:
“Over the past year, the board has maintained a mildly restrictive stance of monetary policy, in view of its concerns about inflation. With overall growth moderate, inflation now likely to be close to target and confidence subdued outside the resources sector, the board concluded that a more neutral stance of monetary policy would now be consistent with achieving sustainable growth and 2% 3% inflation over time,” Stevens said.
He also noted the moderation in the pace of global growth and the moderate expansion in the US economy, despite the fact that US economic expansion picked up in the September quarter.
Global concerns appeared to outweigh the recovery in local equity markets and the recent rise of the Australian dollar on the thinking of the RBA board.
“Equity markets have gained ground and the Australian dollar has risen significantly as risk aversion has lessened. But it is likely to be some time yet before concerns about the European situation can definitively be laid to rest and the effects of the recent turmoil on confidence may result in a period of precautionary behaviour by firms and households,” Stevens said.
“Financial conditions have been easing somewhat recently, with market interest rates declining a little and competition to lend increasing.  But overall conditions have remained tighter than normal, with borrowing rates still a little higher than average, credit growth subdued and asset prices lower than earlier in the year. The exchange rate has been very variable over the past few months, but on the whole has remained at historically high levels,” Stevens added.
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Rate cut will help the economy and boost confidence, say quick-draw industry players

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The Reserve Bank has cut the cash rate by 0.25%, taking the official lending rate to 4.5% following its November Monetary Policy meeting.
The bank had kept the cash rate on hold at 4.75% for a year, having last increased rates by 0.25% at its November 2, 2010 Melbourne Cup Day meeting.
Economists at <a href="https://www.propertyobserver.com.au/economy/third-quarter-inflation-of-0.6-means-rates-likely-to-stay-on-hold/2011102652074">all the major banks</a> tipped the Reserve Bank to cut interest rates after September quarter underlying inflation came in under expectations.
The 0.25% cut will save borrowers around <a href="/news">$46 a month, according to RateCity</a>.  
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RBA cuts rates by 0.25%

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Established house prices across Australia’s eight capital cities declined by an average of 1.2% over the September 2011 quarter, led by a 2.5% fall in Brisbane, according to preliminary ABS estimates.
Brisbane has also registered the greatest annual fall, with prices down 5.2% since the September 2010 quarter.
All the capital cities registered a decline in house prices over the quarter with Melbourne registered the third biggest decrease in existing capital city house prices with a 1.7% decline.
Sydney house prices proved the most resilient with, just a 0.2% fall.
Perth house prices declined by 1.3%, Adelaide fell by 0.9%, Canberra fell by 2%, Hobart fell by 1% and Darwin fell by 0.4% over the quarter.
Year-on year, preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities decreased 2.2%.
Annually, house prices decreased in the other capital cities were: Darwin (-4.4%), Perth (-4.2%), Adelaide (-3.2%), Canberra (-2.2%), Melbourne (-2.1%), Sydney (-0.3%) and Hobart (-0.3%).
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House prices fall 1.2% in September quarter: ABS

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The Melbourne Cup is not all about Melbourne, with several landmark properties having pedigree links to the big event. Indeed Archer, the cup’s first winner in 1861, called NSW home. Here are six NSW rural properties that hold a bit of Cup history.
<img src="/images/stories/baroona.jpg">
1. Baroona, Whittingham 
Baroona (pictured above), the striking High Victorian residence at Whittingham, near Singleton, is a 26-room house with observation tower. It stables, designed in the 1880s by architect John Horbury Hunt, stabled two-time Melbourne Cup winner Peter Pan. The marketing suggested the Victorian gothic stable block (pictured below) was the birthplace and final resting place of Peter Pan, who was born in 1929 and died in 1941.
<img src="/images/stories/baroonastables.jpg">
Baroona was known as Rosemount when the initial house was built by pastoralist John Lanarch in 1829. It expanded into a home of 1,115 square metres with a Benjamin Backhouse design after it was bought in 1869 by Albert Dangar, the son of Henry Dangar, the government surveyor. The spiral staircase and tower were designed by architect Frederick Menkens in the 1890s. The upstairs main suite opening to the veranda has a sitting and dressing room and en suite built in 1920 when the Prince of Wales, later King Edward VIII, was a visitor. Baroona sits on 33 hectares with Mudie Creek running through the property, set about 20 kilometres from the Hunter vineyards. It last sold through Alan Jurd at Jurd's Real Estate Cessnock in conjunction with Max Bailey First National, when listed with $3 million-plus hopes earlier this year.
<img src="/images/stories/camelot.jpg">
2. Camelot, Narellan
Narellan’s fairytale-like mansion Camelot (pictured above) has pedigree Melbourne Cup links. The three-storey 1888 house, originally known as Kirkham, was built for the Hon James White, the grand-uncle of author Patrick White. White was cashed up from his winnings from Chester, his racehorse, which had 19 wins – including the 1877 Melbourne Cup and VRC Derby – from 29 starts. Camelot got its name when Mrs Frances Faithful-Anderson bought the Kirkham estate in 1900. It seems that on seeing the property, she was reminded of the opening verse of Tennyson's The Lady of Shalott. Complemented by a beehive-shaped smoke house, an octagonal hen house and large stable block, the six-bedroom mansion was described by arts patron Leo Schofield as the best house John Horbury Hunt ever designed.
<img src="/images/stories/terrara3.jpg">
3. Terrara House, Terrara 
Terrara House (pictured above) was the South Coast home of the legendary dual Melbourne Cup winner Archer, under Etienne de Mestre's stabling. Approached by a long driveway of English elms, the seven-bedroom house, four kilometres from Nowra, comes with stables, tennis court, swimming pool and gardens, set over 6.8 hectares. It last traded at $5 million in 2004. Terrara House is now a wedding reception venue, where guests can sleep in the historic stables (pictured below). 
<img style="border-style: initial; border-color: initial;" src="/images/stories/terrara.jpg">
4. Ballalaba, Jembaicumbene
The 1840s Ballalaba cottage and its 1830s convict-built barn pre-date the establishment of the nearby township of Braidwood. The three-storey stone barn with skillion stables was owned by the free settler Thomas Molyneux Royds, whose stable included the mare Maid Of The Oaks, which foaled the first Melbourne Cup winner, Archer. The property  has views across the Shoalhaven River floodplain to the Bendoura Range.
<img src="/images/stories/thinkbigstud.jpg">
5. Inverness, Burradoo
Inverness, the Burradoo equine property (pictured above), is owned by the Malaysian businessman Dato Tan Chin Nam, for whom Bart Cummings trained Think Big to win the Melbourne Cup in 1974 and 1975, and Saintly in 1996. It has facilities for breeding, foaling, agistment and quarantine, plus irrigation from a registered bore. It was sold by Jack and Sue Woolridge, who have raced horses since 1970. It's now known as Think Big Stud.
6. Huntworth, Werai 
Huntworth, set on 117 hectares at Werai, was formerly owned by Bridget Woodford Smith, who stabled a number of well-known horses including 1981 Melbourne Cup winner Just A Dash.
Plus in the city:
Macleay Regis, Potts Point 
It was following their 1961 triumph that Sidney and Rachel Cohen paid £6,750 for their Macleay Regis, Potts Point apartment.  Cohen, a Potts Point garage operator, had owned the 1961 Melbourne Cup winner Lord Fury, the only horse since 1896 to lead the race from start to finish.
None are available for sale.
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jchancellor-FAypfDUnLy

Six NSW pedigree rural properties with Melbourne Cup-winning form

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September sales of new homes have declined to levels last seen in December 2000, according to the latest HIA - JELD-WEN New Home Sales Report. 
The number of new homes sold in the month of September fell by 3.5% to about 5,000, down by 14% over the September quarter, according to the HIA’s survey of major residential builders. 
Detached house sales fell by 3.3% in September and are down 15.3% over the September quarter. Sales of multi-units fell by 5.5% in September.
 <img src="/images/stories/hianov1.gif">
On the back of the introduction of the <a href="https://www.propertyobserver.com.au/residential/queensland-building-grant-to-boost-construction-after-government-induced-downturn-westpac/2011083151376" target="_blank">$10,00o state Building Boost</a>, the volume of detached house sales increased by 5.7% in Queensland in September. 
However, sales fell in all of the other four mainland states, with Victoria posting the largest monthly fall, with sales declining by 6.6% in September. 
Detached house sales fell by 4.7% in New South Wales, 5.9% in South Australia, and 3.5% in Western Australia.
The figures follow ABS building approval figures for August – a leading indicating of future construction – which revealed a 1% decline in private sector house approvals to just over 7,500. 
“The September figures highlight the present soft conditions facing new home building and reinforce the importance that the RBA board calls it right today by cutting interest rates,” says HIA acting chief economist Andrew Harvey. 
“Monetary policy is arguably the most powerful economic tool in modern open economies but interest rate cuts still take time to boost the economy – so any further deferral of the decision to cut rates would be the wrong move,” he adds.</body></html>

New home sales at 11-year low: HIA

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On the back of the majority of lenders cutting their fixed rate mortgages over the past few months, the popularity of fixed rates has soared to a three-and-a-half year high, according to October approval figures from mortgage broker Mortgage Choice. 
In October, nearly 20% of borrowers took out a fixed-rate mortgage product, up from 17% in September and significantly higher than the 12-month average of 13.5%. 
Fixed-rate mortgages are now more popular than the traditionally popular “no frills” basic variable loan and the more feature-rich standard variable loan, which were each selected by about 15% of borrowers. 
Ongoing discount mortgages, where the rate is discounted over the life of the loan in return for an annual fee, remain by far the most popular product choice (43% of approvals), but their popularity declined slightly in October.
<img src="/images/stories/mcnov1.gif">
Source: Mortgage Choice
Basic variable rates were the most popular with new home loan borrowers only 11 months ago. At that time, the product type accounted for 34% of the broker’s new approvals. 
Today, this sits at less than 16%, the second lowest point since Mortgage Choice began recording such data in January 2003. 
<a href="/news">According to mortgage comparison website</a> Ratecity.com.au, 70% of lenders, including<a style="font-size: 14px; text-align: left;" href="/news" target="_blank"> St George</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Westpac</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Greater Building Society</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Credit Union Australia</a> and <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">ING</a>, have cut their fixed mortgage rates recently.
Company spokeswoman Kristy Sheppard says comparing October 2011 loan approval data with that extracted one year ago shows “how much the industry has changed in reacting to subdued housing finance demand and a relatively positive interest rate outlook”. 
“Then, basic variable rate was the loan of choice at just over 34% of approvals. Standard variable rate followed with just under 34%, then ongoing discount rate at 17% and fixed rate at 11%. 
“That situation has now flipped. New borrowers’ appetite for fixed rate loans is at a three and a half year high of 20% of approvals and ongoing discount rate loans account for 43% of approvals. 
“In an environment of rising living costs and economic uncertainty it is unsurprising borrowers are taking advantage of the relatively low fixed rates and attractive variable rate discounts offered by lenders hungry for business,” she says. 
The popularity of standard variable, line of credit (popular with investors) and introductory rate home loans all fell in October, to 15%, 4% and 1% of approvals respectively.
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More borrowers locking in interest rates: Mortgage Choice

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There is little doubt that a fall in interest rates would have a positive impact on new housing starts.  But despite calls from the development industry for rates to drop today, there really isn’t any real need to build more new dwellings at present.
While our market was undersupplied in 2009 – we only built enough new homes for 330,000 people but needed to build for 465,000 people – we have been oversupplying the market since then.  Last financial year, we built enough homes for 400,000 people but really only needed to house 310,000.
We consistently overbuilt during the first half of the noughties.  Many of these new dwellings were secondary homes – used for holidays and the like – or were built as speculative investments, where the promise of capital growth outweighed the need for a rental return.
The recent drop in population growth has caused the underlying demand for housing to drop by a third across Australia since 2009.  Queensland and Victoria have experienced even greater falls.
As a result, we now have considerable spare capacity in our housing market.  This explains why new dwelling sales continue to slide across the country.
In addition, we no longer need to build as many new homes as we once did.  Social and demographic changes – children living at home longer; increasing longevity (coupled with diminishing superannuation balances); an increase in the birth rate (baby bonus impact) and more migrants from countries with traditionally large families – have lifted our household size, resulting in fewer new dwellings per capita.
This financial year will be a slow year for new housing starts. Just 135,000 new dwellings are expected to be built over the next 12 months.  This is 15% fewer than last year.  This level of new supply would comfortably cater for the expected increase of around 325,000 in the Australian population next year.  This forecast also assumes stable interest rates for the next six to 12 months.
Forward estimates are for, on average, between 150,000 and 160,000 new housing starts each year over much of the next decade.
While a drop in interest rates would temporarily boost new housing starts, the only real reason why housing starts would need to rise across Australia would be to cater for higher levels of population growth.
When looking at the wider picture, the Australian economy is not suffering from a lack of demand.  Whilst we do have a three-speed economy, the overriding problem – apart from declining productivity (which is a serious issue and a topic for a separate missive) – is that we are still recovering from the enormous hit in the first quarter from the floods in Queensland, NSW, Victoria and Tasmania and Cyclone Yasi.
These combined to hit confidence levels, and cut production of coal, iron ore, copper and other minerals as well as many rural products.  This pushed the economy into the red in the March quarter, but as the national accounts showed, consumption grew by around 3% in the year to June.  Current projections are for a 3.4% increase this financial year.  According to the ABS we are close to full employment.  This is not a recession.
Nor is inflation tamed.  Far from it.  The third-quarter inflation figure is at odds with the longer-term trend and might actually be wrong.  This combined with our low labour productivity, union pressure on wages, rising global inflation driven by both developing countries and the West’s politically driven agenda of low interest rates and printing money plus the large resource spending about to start across the country means that we are facing higher inflation in the years to come.
Rates should have fallen earlier this year, immediately after the floods and cyclone.  But now the best course of action, I think, is to keep them steady and to do so for as long as we can.  A cut in our official interest rate later today could spook the horses.  Often a scared horse bolts, but sometimes they hide deeper in the corral.  We just might conserve ourselves into a recession.
It is quintessentially Australian, to be on a day off – as that is exactly what Melbourne Cup Day is – and still expect interest rates to fall.
Be careful what you wish for.  It just might come true.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
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michaelmatusik-49YzLvdmNv

Be careful what you wish for on interest rates: Michael Matusik

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The world’s population ticked over 7 billion this weekend. Australia hosts only around 0.3% of this and is one of the least densely populated countries in the world – and yet we’re struggling to provide adequate affordable housing close to jobs and needed amenities for an increasing number of new bodies.  A recent report from the Department of Infrastructure and Transport entitled State of Australian Cities 2011 highlighted some interesting facts.  Around 85% of our population live within 50 kilometres of the coast, and more than 700,000 dwellings are situated within three kilometres of the shore.  According to the Australian Bureau of Statistics the combined population growth of our capital cities increased by 257,800 in 2010 and accounted for over two-thirds of Australia's population growth – most of that growth was in Melbourne, with Sydney coming a close second.
When migrants land on our shores they have little choice but to head to the capital cities, where most employers are based and they stand the best chance of securing work.  The challenge our state governments face is where to place a growing number of bodies within our limited city borders without losing the level of lifestyle that attracts so many migrants to our shores.  The report made some bold statements, one of which points out that by in 2031 the projected population of lone-person households will be 28%.  It’s supposedly the fastest-growing type of household in Australia – outstripping the growth of family units and couples without children.  The data is broadly used to justify the accelerated construction of high-density accommodation in the inner-city suburbs – generally high-rise small one- and two-bedroom apartments.  However, a closer look at the numbers uncovers an interesting phenomenon which seems to contradict this prediction.
While it’s expected that loan person households would typically mean a decrease in the number of bedrooms per dwelling along with the number of people living in each property – which is exactly what’s happened in NSW – this trend hasn’t followed expectation in Victoria, Queensland or Western Australia.  In these states there has been an increase in the number of people per household and Increase in the size of dwellings – In other words, there may be more people projected to live alone, but when you break down the data, it’s not quite as cut and dry as presented.
Despite this evidence seemingly showing a reduction in demand for single-person accommodation there has been no slowdown in the churn out of high-rise construction. In Victoria there have been over 20,000 applications approved for high-rise apartments over the past two years – that’s a 35% increase, in Brisbane the government recently stated 1,725 buildings of 29 storeys each were needed before 2031 – it’s a trend being repeated nationwide. Yet who’s purchasing these properties?
When Melbourne’s Docklands were initially constructed selling agents were paid high commissions to flog the developments off to unwitting investors.  The apartments usually came with rental guarantees, which once expired, left the purchasers unable to achieve the same return.  Unit growth charts for Docklands read like a day’s trading on the stock exchange, with sharp rises and plummeting dips proving anything but stable capital growth. Averaged out the growth has been little more than 5% per annum – a level currently exceeded by many long term deposit accounts and a dim shadow of what other properties in Melbourne historically achieve.
How many of these apartments are currently sitting vacant is hard to assess, however SQM have the vacancy rate above 6%.  Considering our population growth and the predicted surge of single-person households, you’d expect these developments would be busting at the seams, however clearly they’re not attracting the level of demand that’s oft been spruiked.
The City of Melbourne’s website describes the new developments as being “relatively small one and two bedroom apartments largely targeted at the student market and owned by investors.” Construction is currently underway for 16,000 of them during the 2006-2031 period.  But with the investor market as the intended recipient, they are certainly not fulfilling the needs of home buyers, or – judging by the number of similar developments sitting vacant – renters.  It seems to me we’ve got the beginning of a high-rise property bubble forming.
Anyone who advocates purchasing one of these off the plan developments will have little – if anything – to prove that asset will continue to  appreciate.  Usually they have a lot of concocted figures based on what they think will happen and if everything goes to plan they are very good at showing the riches you can make in the short term. The question to ask with any purchase of this type is what will it be worth in five years’ time?  In short any option you consider needs to be assessed on its risk profile, and “high rise” has strong evidence to show it’s “high risk”.  There’s good reason why banks go through extra checks and balances before lending for this type of accommodation - an issue which I’ve addressed in previous articles.
We’re heading into a mass over supply for one type of property and not heeding to the real changing trend that’s taking place. New statistics have shown Melbourne's outer suburbs are growing faster than anywhere else in Australia – suburbs that cater for growing families.  This should be a clear signal to our governments that investment into increasing the liveability and amenities in the outer-suburban areas, as well as easing restrictions on development and decentralising jobs, is a greater need than disproportionally increasing inner-city density. 
Australia is a teenager compared with her Western counterparts.  There is no reason why we can’t grow our population comfortably and sustainably while maintaining the quality of lifestyle we’ve all grown accustomed to.  We live in arguably the luckiest country in the world – but if we’re going to flourish, we simply have to learn to spread outwards, and not just upwards.  The growth in high rise accommodation and the disproportionally high numbers owned by investors is creating a dangerous precedent for a bubble that can’t be underpinned by demand.
Catherine Cashmore is senior buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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catherinecashmore-6LXia3pPQj

A high-rise property bubble looms: Catherine Cashmore

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Shareholders in commercial property trust Dexus has been rewarded with returns nearly four times higher the average return of the S&amp;P/ASX 200 Property Accumulation Index, the company has revealed at its AGM.
The company delivered a net profit to investors of $553 million for the 2011 financial year equating to a total shareholder return of 21.3% as measured by the S&amp;P/ASX 200 Property Accumulation Index, compared with an average index return of 5.8%.
Investors were reminded that only one company with a market capitalisation over $1 billion delivered better returns than Dexus.
“Since June [2011] our total return has continued to outperform the index and we have beaten the index on a three-year rolling basis every year to 30 June since we stapled in 2004,” said Dexus chairman Chris Beare.
The top-performing company in the index was Charter Hall Office REIT, which delivered total shareholder returns of 42.1%. Charter Hall has also been the top performing A-REIT over the month of October, with its share price up nearly 17%. Over this period Dexus share price gains have been a more modest 3.7%.
Developer Australand returned shareholders 26.9% over the year, but was only admitted to the S&amp;P Index in December 2010 while Charter Hall Retail REIT delivered an index return of 25.4% but has funds under management of less than $1 billion.
Australand shares are up 13% over October while Charter Hall Retail is up 4.5%.
Annual returns of investment of companies in the S&amp;P/ASX 200 Property Accumulation Index
<table width="348" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Security
</td>
<td valign="bottom" nowrap width="64">
Exchange
</td>
<td valign="bottom" nowrap width="145">
Description
</td>
<td valign="bottom" nowrap width="75">
30/06/2011
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="145">
 
</td>
<td valign="bottom" nowrap width="75">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQO
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Office
</td>
<td valign="bottom" nowrap width="75">
42.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ALZ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Australand Property
</td>
<td valign="bottom" nowrap width="75">
26.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Retail
</td>
<td valign="bottom" nowrap width="75">
25.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
DXS
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Dexus Property Group
</td>
<td valign="bottom" nowrap width="75">
21.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ABP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Abacus Property Group
</td>
<td valign="bottom" nowrap width="75">
20.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GPT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
GPT Group
</td>
<td valign="bottom" nowrap width="75">
18.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
IOF
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Investa Office Fund
</td>
<td valign="bottom" nowrap width="75">
17.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GMG
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Goodman Group
</td>
<td valign="bottom" nowrap width="75">
16.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CPA
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Commonwealth Prop
</td>
<td valign="bottom" nowrap width="75">
7.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
BWP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
BWP Trust
</td>
<td valign="bottom" nowrap width="75">
4.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CFX
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
CFS Retail Property
</td>
<td valign="bottom" nowrap width="75">
2.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
MGR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Mirvac Group
</td>
<td valign="bottom" nowrap width="75">
1.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WRT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Retail Trust
</td>
<td valign="bottom" nowrap width="75">
0.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
XPJ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
XJO A-REIT
</td>
<td valign="bottom" nowrap width="75">
-0.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
SGP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Stockland
</td>
<td valign="bottom" nowrap width="75">
-2.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WDC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Group
</td>
<td valign="bottom" nowrap width="75">
-3.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CHC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Group
</td>
<td valign="bottom" nowrap width="75">
-3.5%
</td>
</tr>
</tbody></table>
Source: Atchison Consultants
Beare described the result as a “solid performance” due to the quality of its properties and the focus of its management team.
Dexus owns, manages and develops office and industrial property in Australia and the United States.
“While we are proud of our outperformance we know that for investors it is absolute performance that matters and the A-REIT sector including Dexus did not do well for investors through the GFC,” Beare said.
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