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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Potential first-time buyers – some as investors while they rent – continue to seek 100% no-deposit home loans even though banks no longer offer them.
Dean Rushton, chief operating officer of mortgage broker Loan Market says 7% of the brokerage's total enquiries during October 2011 had come from people wanting no-deposit home loans.
"There remains strong interest from people who want to enter the real estate market and borrow the entire cost of the property," Rushton notes.
"But the modern-day lending reality is that if you want to obtain housing finance you have to save for a deposit.”
In late 2008 at the onset of the global financial crisis homebuyers began to find it hard to get no-deposit loans from banks such as the Commonwealth Bank of Australia.
At the time the JP Morgan banking analyst Brian Johnson suggested stricter lending standards were here to stay.
"The era of getting very easy credit to buy a house is over," he suggested.
Aussie Home Loans boss John Symond was prompted to suggest the tightening signalled a return to sensible lending practices.
"Banks have got to have prudent lending," he suggested in 2008.
"People buying home in Australia with little or no deposit is a flawed process.”
Rushton suggests lending restrictions requiring genuine savings contributions of around 5% towards the property purchase demonstrates to the lender that you have the capacity to save money and budget.
He suggests would-be buyers are best off to develop a savings plan early to build a home deposit.
"Borrowers should consider saving for as large a deposit as possible as both interest and lenders mortgage insurance costs increase substantially the more you borrow," he says.
For more about buying your first investment property, download our free e-book.
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jchancellor-FAypfDUnLy

First-home borrowers still looking for no-deposit home loans

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Centro Retail Australia, the new property trust set to rise from the ashes of embattled Centro Property Group will own and manage a portfolio comprising 99 shopping centres, with Woolworths and K-Mart the biggest tenants.
Woolworths will have 29 tenancies among the properties comprising the trust and will take up 8.2% of the gross lettable area, while K-Mart’s 14 stores will take 7.8% of the gross lettable space.
Coles, with 24 leases, will take up 7.2% of the gross lettable area available.
If approved, the new fund will manage and own 43 shopping centres nationally worth $4.4 billion, making it the second-biggest retail landlord behind Westfield. Combined with the Centro syndicate business it will own total assets worth $7 billion. In his presentation to shareholders in Sydney, Centro chief executive, Robert Tsenin reminded shareholders that the company would be unable to meet its senior debt obligations of $2.9 billion, which is due on December 15, and that “aggregating” the retail property portfolio under a new lender-controlled entity to be called Centro Retail Australia was the only viable solution for the embattled group.
“The alternative is likely to be <a href="https://www.propertyobserver.com.au/industry-news/centro-says-it-must-restructure-or-fail/2011082951331">external administration</a> in which circumstances Centro security holders are expected to receive nothing,” Tsenin said when Centro annual results were released earlier in the year.
Senior lenders to Centro will own nearly three-quarters of the new entity, with shareholders of Centro’s unlisted Direct Property Fund (DPF) and the Centro Retail Group (CER) holding the remaining share of the business.
Direct property income will account for 81% of the revenue earned by Centro.
Tsenin will be interim CEO of Centro Retail Australia until he retires in mid-2012.
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lschlesinger-FZcF9M3vE6

Woolies and K-mart to anchor Centro's new property group

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2/14 Hewlett Street, Granville, NSW, 2142
<img src="/images/stories/hewlett.jpg"> 
This two-bedroom apartment in the Sydney suburb of Granville includes a car space and is tenanted at $340 per week. The lease is currently expired but the tenant is keen to stay on, and a relatively high yield could make the property attractive to an investor. <a target="_blank" href="https://www.runproperty.com.au/buying">Run Property</a> agent Rebecca Hall is marketing the property with price hopes of $285,000 plus. If it sells for $285,000 that would secure an investor a gross rental yield of 6.2%, about the same as the gross indicative rental yield for Granville apartments of 6%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Council rates are approximately $224 per quarter, Sydney Water rates are approximately $157 per quarter, and strata levies are approximately $479 per quarter. <a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $4,000 and over five years to be $9,000. The property is close to schools, shops and the train station. It was passed in on a vendor's bid of $280,000 at auction on October 29 and is in negotiations. 
For more information about yields and prices in Granville, see the <a target="_blank" href="/news">RP Data suburb page</a>.
For more investment prospects going to auction this weekend, see pages 2 and 3.
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402/2 Jones Bay Road, Pyrmont, NSW, 2009
<img src="/images/stories/jonesbay.jpg"> 
This one-bedroom apartment with Harbour Bridge views is tenanted at $500 per week and includes a car space. <a target="_blank" href="https://www.khoandlee.com.au/properties/505522/details">Kho and Lee Property Group</a> agent Sami Yildiz is marketing the unit with price hopes in the "early $500s", about $510,000 or $520,000 plus. If it sells for $510,000 that would equate to a gross rental yield of 5.1%, about the same as the indicative gross rental yield for Pyrmont apartments of 5%. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. <a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $13,000 and over five years to be $40,000. The building includes a gym and a swimming pool, and it is within walking distance of Darling Harbour. The unit was withdrawn from auction shortly before it was due to go under the hammer on October 29 and is in negotiations. 
For more information about prices and yields in Pyrmont, see the <a target="_blank" href="/news">RP Data suburb page</a>.
 
<hr class="system-pagebreak">
5 Oakton Close, Wheelers Hill, VIC, 3152
<img src="/images/stories/oaktonclose.jpg">
In a cul-de-sac, this two-bedroom, two-bathroom property is tenanted at $380 per week until the end of the year. <a href="https://mcdonaldre.co/details/?pid=503104" target="_blank">McDonald Real Estate</a> agent Brian Grace is marketing the property with price hopes of $585,000 plus, and if it sells at that price it would secure an investor a gross rental yield of 3.5%, about the same as the indicative gross rental yield for Wheelers Hill houses of 3.2%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. <a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $5,000 and over five years to be $12,000. The property is within easy walking distance of Wheelers Hill Secondary Collegeand is close to Brandon Park and Waverley Gardens shopping centres. The property was passed in on a vendor's bid of $565,000 at auction on October 29. It had an earlier bid of $540,000 and had a reserve of $585,000. The property remains for sale.
For more about prices and yields in Wheelers Hill, see the <a href="/news">RP Data suburb page</a>.
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cknowlton-QnEa6ntUYP

Weekend yield watch: Yields of up to 6.2% in Granville as none of Form Guide properties sell

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The high cost of housing is forcing families to make troubling trade-offs, including delaying having children because they can’t get into home ownership or secure rental. 
Reports of house prices and economic fears driving Victoria’s fertility rate to the lowest in the nation indicate that the housing crisis has wide reaching ramifications. 
High house prices mean people face trade-offs around when to start a family, whether to have a second child, and whether they can afford to spend time at home with their baby before returning to work. 
While people have always had to make choices around home and family, it hasn’t always been this hard. A generation ago, house prices were three times the average annual income, now they’re seven times average annual income. 
If home ownership were more affordable, or people were able to get security in the rental market, then people would feel more confident to start a life. 
Home ownership shouldn’t be precondition for having children, but when families in the rental market can be evicted for no reason it is understandable that many people seek the security of home ownership. Finding affordable rental accomodation near to a child’s school or childcare is usually difficult, and sometimes impossible. 
The housing crisis affects so many levels of people’s social and economic wellbeing. We can’t afford to ignore the pressures that the high cost of housing is exerting on Australians any longer.
Sarah Toohey is campaign manager of <a target="_blank" href="https://housingstressed.org.au/">Australians for Affordable Housing</a>.
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stoohey-Wf4skQJiAL

Lack of housing affordability hurting families

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Department store and cinema tenants within shopping centres owned by property group GPT have contributed to a lacklustre performance of its $5.3 billion retail property portfolio, according to its latest quarterly report.
Department stores, which anchor many of GPT’s shopping centres, recorded a 9% drop in moving average turnover growth over the three months to September 2011, with only cinemas fairing worse, with a 9.3% drop in turnover.
The poor performance of these two tenant groups closely match their performance in <a href="https://www.propertyobserver.com.au/news/westfield-cinemas-struggling-perhaps-due-to-pricey-popcorn/2011081751194">Westfield shopping centres,</a> which recorded an 8.5% drop in department store sales and an 8.7% drop in cinema sales in interim results released in August.
Average turnover from mini majors also fell sharply, down 6.3%, while turnover from discount department stores fell 2.6%.
Stronger performers included supermarkets (up 2.5%) while in the speciality retail category mobile phone retailers were the stand-outs, registering a 17% increase, with food businesses also performing strongly.
Overall, speciality sales fell 0.8% while shopping centre sales were down 0.5% for the three months to September 30, 2011 compared with the same period in 2010.
GPT’s retail portfolio includes the Highpoint Shopping Centre near Flemington Race Track, currently undergoing a $300 million, 30,000-square-metre extension due for completion in 2013. New tenants will include David Jones.
The shopping centre is partly owned by GPT (16.7%) and its subsidiary the GPT Wholesale Shopping Centre Fund (GWSCF), which has a 50% stake.
CBRE revised GPT’s stake upwards from $212 million in June 2011 to $228 million while GWSCF’s stake was valued at $685 million, having been valued at $637 million.
GPT says leasing enquiries for the more than 100 new shops have been strong.
GPT chief executive and managing director Michael Cameron says while the retail sector is experiencing “considerable pressure” its portfolio has proved resilient with the occupancy rate at 99.9%.
Office occupancies are at 97.5% and industrial at 100%.
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Poor performance of cinemas and department stores hurt GPT's bottom line 

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An expected rate cut on Melbourne Cup Day is not guaranteed to stimulate consumer spending and the take-up of credit, according to NAB CEO Cameron Clyne.
Speaking to the media following the publication of annual results that reported NAB recorded a full-year net profit of $5.21 billion and mortgage book growth at three times the banking sector average, Clyne said a rate cut might not be a catalyst for a return of confidence.
“It is a little unclear if global stability has a greater bias for consumer confidence or if something like a rate cut will have a bigger impact,” he says.
He says people reading every day about concerns in Europe have a bias to be more conservative and points to a collapse in confidence following the first US debt ceiling crisis. In the months before the US crisis, Clyne says confidence had been rising.
“If you get a rate cut but there are still overseas concerns, it may not be a catalyst to a return of confidence,” he says.
“It’s hard to say.”
Clyne also says the bank is comfortable with its mortgage market share gains following its “break-up” media campaigns and taking the lead on abolishing mortgage exit fees.
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Rate cut no guarantee of return of confidence: NAB boss

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After the 0.3% core inflation result yesterday  (technically, the average of the perfectly consistent “weighted median” and “trimmed mean” prints), which was presumed to have followed decelerating core inflation over the first (0.85%) and second (0.6%) quarters this year, a rate cut next Tuesday should be a done deal. 
Most of the RBA’s song birds have evidently been told so. An increasingly emboldened Peter Martin, from Fairfax, who previously broke the news about the hugely significant downward revision to the ultra-high second-quarter inflation results, confidently describes a cut next week as “more than a certainty”. 
Another would-be RBA proxy, News Limited’s Terry McCrann, who on his day can be a market mover and was once known simply as the “shadow governor” because of his uncanny ability to predict RBA decisions, declared, “We are now headed for a Cup Day official interest rate cut and the banks will pass it on in full and quickly to borrowers.  Both these predictions are at Black Caviar odds and just as certain.” 
 
Finally, we have those persistently prescient financial markets (not!), which have put 100% probabilities on rate cuts on several occasions over the past 12 months and are yet again telling us that November is in the bag. In fact, after the CPI yesterday, the probability of a rate cut rose to more than 100% because the market was saying that there was a chance the RBA might go by more than the standard 25 basis points. 
Along these lines, Stephen Koukoulas, former economic advisor to Julia Gillard, who boldly forecast a rate cut in October, which was never likely given the RBA was always going to wait for the CPI, has been even bolder this time around, projecting not one, but two rate cuts next week. 
On the basis of the information above, any reasonable person would conclude that an easing next week looks like a sure thing. But I suspect the situation is a little trickier than this. In the minutes after the CPI I thought a cut was government-guaranteed. But when Bloomberg published the historical revisions (see below), my probabilities attenuated somewhat.
On reflection, I would put the odds of the RBA reducing its target cash rate next week at around 70%. This contrasts with the 100% certainty claimed by Peter Martin, Terry McCrann, Stephen Koukoulas and the markets. So while a cut is very likely, there are superficially credible reasons why the RBA should, in theory, continue to exercise the option to wait. Let’s walk through them. 
First, after three attempts at estimating the RBA’s two preferred “core” inflation measures for the second quarter, it turns out that all the hoopla generated by economists, the RBA and journalists about a major “turnaround” in Australia’s inflation rate, which involved a rapid deceleration in underlying inflation from 0.9% in the first quarter to 0.6% in the second quarter, was, according to the ABS’s latest numbers, wrong. 
Recall that the first estimate of core inflation in the second quarter was 0.9%. After the similar 0.9% result over January through March (subsequently revised to 0.8%), this appeared to make the case for a hike in August a certainty.  The view that the pace of inflation was slowly rising in line with the RBA’s projections was reinforced by revisions to the December quarter numbers, which have now increased from an initial estimate of 0.4% to 0.5% and, as of yesterday, to 0.6%. Starting in June last year, the quarterly rate of inflation prior to yesterday's numbers looks like: 0.45%; 0.55% (revised to 0.5%); 0.4% (revised to 0.6%); 0.85% (revised to 0.8%); 0.9% (revised to 0.8%). 
Combined with worryingly low labour productivity, a very robust current and expected global inflation pulse driven out of both developing countries and politically inspired zero interest rate policies and money printing in North America, the UK and Europe, and the fact that we have private investment equivalent to 12% of GDP projected to take place in 2011-12 alone, you can understand why the RBA has assumed that Australia will likely have a major inflation challenge in the years ahead. 
The crucial point to acknowledge here is that yesterday’s 0.3% core inflation print did emphatically not reinforce a decelerating inflation trend, as media commentators and the RBA had previously thought. This is because the ABS remarkably revised, for a second time, the important second-quarter numbers back up to an unacceptably high 0.8%. This came after the ABS had revised down the initial print of 0.9% to just 0.6%, which what triggered the recently dovish rhetoric. 
The repeated revisions cast doubt over the reliability of Australia’s inflation data generally. And make no mistake, they are surprising: you would think that with a three full months over which to measure price changes (cf. the house price data that is calculated monthly) and reportedly more than 100,000 price inputs, the ABS could furnish us with some dependable insights. Instead, we are getting quite radically different conclusions ranging from “we have a major inflation problem” to “inflation pressures are dissipating” to “we seem to have problems again”, at least over the first half of 2011. 
If there had been no further revisions to the second-quarter numbers, one would find unconditional unanimity in relation to a rate cut next week. The devil of the detail, however, has thrown a small spanner in the works. 
This pickle is highlighted in the chart below. It illustrates that the third-quarter numbers, which will be presumably subject to revision, like their predecessors, are very much the odd man out. And the thesis that there is risk, albeit lower probability risk, that the RBA remains on hold, has been lent additional weight by Alan Mitchell’s column in the AFR today. In contrast to his media peers, Mitchell argues that there is no guarantee of a cut. And Mitchell is credible: he has been covering the RBA for decades and has yet to be sensationally wrong-footed by the bank, an observation that does not apply to his more confident colleagues.
<a href="/images/stories/oct27.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct27thumb.gif"></a>
Given the substantial changes to the ABS’s core inflation measures in recent times, any objective decision-making process would exercise considerable care in assessing yesterday's results. Indeed, the RBA would note that third-quarter “ex-volatiles” inflation number was a high 0.8%, and has average 0.7% per quarter (or 2.8% annualised) over the first nine months of 2011. “Non-tradeable” (i.e., domestic) goods and services inflation printed even higher at 1.2% in the quarter, and has averaged 1.1% over 2011. Sure this data is not seasonally adjusted, and the non-tradeables will have been affected by the floods. But, at some point, the supply shock that was the floods was meant to be reserved out. And seasonal adjustments simply smooth out intra-period data: over the duration of an entire year, the seasonally adjusted and raw data should converge. 
The second reason for pause is that the RBA has ostensibly established its own “decision rule”, claiming in the October board minutes that it would only ease interest rates “to provide some support to demand, should that prove necessary”. 
Well, we know that Q2 real GDP printed at a stonking 1.2% with private demand growing at a 5% plus annualised pace over the first six months of 2011. We also know, interestingly, that there have been consistent upward revisions to Q4 GDP, which is now estimated to have risen by a trend-like 0.8% even having suffered, in the RBA and Treasury’s opinion, a loss of about 0.5 percentage points from the effects of the east coast floods. That is, the final quarter of last year would have printed at a very high 1.1% or 1.2% had the floods not occurred. 
And then we know that the recent activity data has been solid. Using the broader GDP survey, real consumption grew solidly in the second quarter. According to Westpac’s leading indicator index, economic growth is projected to be well above trend over the next six to nine months. Unemployment has remained low at around 5%. The monthly retail spending data has ticked up recently and expanded at a 7% annualised pace over the last two months. And there has already been a de facto easing of interest rates via substantial reductions in fixed-rate home loans to as low as 6.3% today, modest tapering in the price of variable rate loans, and a softening of the currency from its 2011 highs. 
A third observation is that if the RBA did not hike after initial core inflation results of 0.9% in Q1 and 0.9% in Q2, which after three recalculations have stayed at 0.8% apiece (thus annualising core inflation at a well-above-target 3.2% over the first half of the year), why would a forward-looking, inflation-targeting central bank cut rates on the back of one anomalously low core number in Q3? 
As others have argued, 25 basis points here or there is not going to make a world of difference to the RBA’s inflation outlook. And there are considerable reputational risks for the RBA if its cuts in November only to confront a high fourth-quarter core inflation outcome in January (perhaps followed by an upward revision to the Q3 numbers). What does it do then? Say “Oops, we got it wrong (again), and want to be back at “mildly restrictive”.” What is the RBA’s much-mooted “policy of least regret” as an avowedly inflation-targeting central bank? (And I have refrained from discussing the RBA’s inflation forecasts too much here simply because the RBA itself knows they have limited explanatory power.) 
One case for cutting next week is that the RBA has clearly created expectations among journalists, and thus the community, that it would do so on the back of a low result. As I have noted too many times to count, this practice of pre-judging board meetings and wording-up journalists is hazardous for both the Bank and the individuals in question. Terry McCrann, in particular, has now been humiliated by the RBA on two occasions in the last 12 months. 
Today McCrann claims in his column that any suggestion there was “disunity” on the RBA board over monetary policy is a “myth”. This is plainly incorrect. It has been clearly reported that at least one external Board member voted for hikes in the first half of 2011, only to be rolled by the wider board. 
It has been further speculated that other board members have, at various times this year, argued for cuts. We know from the RBA’s board minutes after the first-quarter inflation results that the board felt there were arguments for and against raising rates, which was inferred to mean a lively “debate”.  And we know that the board explicitly considered doing so as recently as its August meeting. Finally, we know that after a decade serving on the board, Warwick McKibbin has, following his resignation, been critical of the make-up of the board, highlighting the risk of conflicts from intrinsically dovish private sector representatives, and recommending that its composition be changed.
McKibbin has also intimated towards political conflicts given the presence of the Treasury Secretary on the board, a criticism that was reinforced by freedom of information releases showing senior Treasury officials strongly disagreed with the RBA’s monetary policy decisions in 2008, and damagingly described the bank as "schizophrenic" in discussions with important partners, such as representatives of the US government.
Questions swirling around the RBA’s political independence were also reaffirmed when the Treasurer, Wayne Swan, broke with decades of convention and controversially took away the pay-setting powers of the RBA’s independent board members on the basis that he felt they were paying senior RBA staff too much. In an attempt to persuade Swan not to make this change, the longest-serving member of the RBA board, Jillian Broadbent, wrote to him and warned, “The board believes that the current remuneration framework for the bank is crucial to the bank's continuing capacity to carry out its duties to the standards required, and would see any move to unwind it as undermining the capacity of the Bank to do so." Swan ignored her. 
If the RBA cuts next week, we will learn a great deal more about the way this institution works. A cut will be a political exercise in building community goodwill in the event the RBA does have to raise rates to fight a more serious inflation problem down the track. A cut will confirm that the RBA finds it much more difficult to hike rates than reduce them. A cut will imply that the RBA is worried about its political independence, and treads especially carefully in the formulation of restrictive policy. A cut will tell us that the RBA does not have a Bundesbank-style policymaking bias towards keeping inflation low, but rather contextualises policy decisions against the risks to its recently won independence in a world in which most of its central banking peers are losing a grip on theirs.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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RBA independence on the line in complex Cup Day scenario

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A now expected RBA rate cut on Melbourne Cup Day will save the average mortgage holder around $46 a month, according to mortgage comparison website RateCity. 
The figure is calculated based on the cash rate being cut by 25 basis points to 4.5% and lenders passing on this rate cut to borrowers on variable rate mortgages.
Speaking on ABC radio today, federal Treasurer Wayne Swan said there would be “no excuse whatsoever” for banks not to pass on the expected rate cut. 
Based on an average mortgage size of $288,000 and a variable mortgage rate of between 6.86% and 7.11%, a 25-basis-point trim would give borrowers an extra $46 to spend on other goods, save for a rainy day or perhaps, as Tony Abbott suggests, blow on the pokies.
On average NSW borrowers will see the greatest reduction in monthly mortgage payments with $51 per month being trimmed while Tasmanians, which have the smallest average loan size ($187,000) will see the smallest jump in bank balances of just $30 per month.
How a 0.25% rate cut impacts variable rate mortgage borrowers across Australia
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
Average mortgage size
</td>
<td valign="top" width="123">
Monthly repayment at current benchmark variable rate (7.11%)
</td>
<td valign="top" width="123">
Monthly repayment if benchmark variable rate cut by 0.25%
(6.86%)
</td>
<td valign="top" width="123">
Monthly saving if rate cut by 0.25%
</td>
</tr>
<tr>
<td valign="top" width="123">
National  
</td>
<td valign="top" width="123">
$288,300 
</td>
<td valign="top" width="123">
$2,058 
</td>
<td valign="top" width="123">
$2,012 
</td>
<td valign="top" width="123">
$46
</td>
</tr>
<tr>
<td valign="top" width="123">
First home buyer
</td>
<td valign="top" width="123">
$283,900
</td>
<td valign="top" width="123">
$2,027
</td>
<td valign="top" width="123">
$1,981
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
NSW
</td>
<td valign="top" width="123">
$320,500
</td>
<td valign="top" width="123">
$2,288
</td>
<td valign="top" width="123">
$2,237
</td>
<td valign="top" width="123">
$51
</td>
</tr>
<tr>
<td valign="top" width="123">
VIC
</td>
<td valign="bottom" width="123">
$290,700
</td>
<td valign="top" width="123">
$2,075
</td>
<td valign="top" width="123">
$2,029
</td>
<td valign="top" width="123">
$46
</td>
</tr>
<tr>
<td valign="top" width="123">
QLD
</td>
<td valign="top" width="123">
$279,300
</td>
<td valign="top" width="123">
$1,994
</td>
<td valign="top" width="123">
$1,949
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
SA
</td>
<td valign="top" width="123">
$228,400
</td>
<td valign="top" width="123">
$1,630
</td>
<td valign="top" width="123">
$1,594
</td>
<td valign="top" width="123">
$36
</td>
</tr>
<tr>
<td valign="top" width="123">
WA
</td>
<td valign="top" width="123">
$265,300
</td>
<td valign="top" width="123">
$1,894
</td>
<td valign="top" width="123">
$1,851
</td>
<td valign="top" width="123">
$42
</td>
</tr>
<tr>
<td valign="top" width="123">
TAS
</td>
<td valign="top" width="123">
$188,700
</td>
<td valign="top" width="123">
$1,347
</td>
<td valign="top" width="123">
$1,317
</td>
<td valign="top" width="123">
$30
</td>
</tr>
<tr>
<td valign="top" width="123">
NT
</td>
<td valign="top" width="123">
$279,200
</td>
<td valign="top" width="123">
$1,993
</td>
<td valign="top" width="123">
$1,948
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
ACT
</td>
<td valign="top" width="123">
$273,500
</td>
<td valign="top" width="123">
$1,952
</td>
<td valign="top" width="123">
1,909
</td>
<td valign="top" width="123">
$44
</td>
</tr>
</tbody></table>
Source: RateCity, Australian Bureau of Statistics August 2011 Housing Finance data
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Cup Day rate cut would give mortgage holders $46 a month: RateCity

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A $130 million permit for a retail and residential development on Spencer Street in the Melbourne CBD helped drive the value of building permits issued in Victoria in August to the highest level for any August on record, according to the state’s Building Commission.
While there were fewer building permits issued in August 2011 than in the same month in 2010 and 2009, they were for bigger commercial and residential projects located close to the city.
More than 8,900 building permits were issued in August 2011 with a combined value of $2.3 billion, compared with about 9,500 issued in August 2010 with a combined value of $1.9 billion and an almost identical result achieved in August 2009.
Value of building permits issued
<img src="/images/stories/buildingpermits.gif">
Source: Victorian Building Commission
Deputy building commissioner Peter Donald says the record value of building permits issued in August was boosted by a significant rise in residential and commercial building activity with a number of very high value building permits issued including the development on Spencer Street.
“The strong August 2011 activity has also contributed to a strong calendar year to date, which is 5% ahead on the levels from last year,” Donald says.
Residential development permits including those for high-rise apartments rose 155% to $480 million while commercial permits jumped 119% to $349 million and retail rose 121% to $141 million. 
City locations accounted for more than three-quarters of the building permits issued, with Melbourne’s metropolitan regions registering an increase of 27% to $1.8 billion in the value of building permits issued in August 2011 when compared with the same month last year. Rural Victoria registered an increase of 5% to $432 million.
Nearly half of all building permits ($1.1 billion) were issued in the inner suburbs of Melbourne, which rose by 54.6%, while the north central (up 13% to $84 million), north west (up 30% to $73 million) and south west (up 28% to $432 million) regions all registered strong increases in building commitments.
The biggest drop in building permit activity occurred in Gippsland, with the value of permits falling 33% to $68 million.
The figures highlighted the downturn in the construction of new houses in the state with domestic housing permits falling 8% to $1.1 billion in August.
Public Buildings was the other sector to register a fall, with the value of permits down 34% to $160 million in August.
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Melbourne building permits value sets August record thanks to big-ticket projects

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A riverfront house in Woolwich that fetched $4.25 million was the week’s highest auction sale, according to the RP Data top 10 sales list. It was listed with price hopes of $4 million plus.
Set on a 795-square-metre block on The Point Road, the three-bedroom residence has direct access to a sandy beach. It came with wide entertainment deck with all rooms having panoramic views over level lawns and gardens. Its McGrath selling agent Tracey Dixon suggested there was opportunity to update or redesign and capitalise on its premier peninsula address.
It last sold at $4.05 million in 2003. 
Sydney suburbs had the top five spots, with a Malvern East property in Melbourne in sixth place.
1. 15 The Point Road, Woolwich, NSW, three-bedroom, two-bathroom house, sold at auction on October 22 through McGrath Estate Agents for $ 4.25 million
2. 1/95 Lauderdale Avenue, Fairlight, NSW, three-bedroom, three-bathroom unit, sold prior to auction on October 24 for $3.76 million through Belle Property Manly
3. 52 Daleys Avenue, Daleys Point, NSW, five-bedroom, four-bathroom house sold on October 20 for $3.3 million through PRD Nationwide Ettalong Beach
4. 11 Reginald Street, Mosman, NSW, five-bedroom, three-bathroom house sold at auction on October 22 for $3 million through McGrath Estate Agents
5. 16 Barker Road, Strathfield, NSW, five-bedroom, five-bathroom house sold at auction on October 22 for $3 million through Georges Ellis &amp; Co
6. 38 Kerferd Street, Malvern East, VIC, four-bedroom, two-bathroom house sold at auction on October 22 for $ 2,862,000 through Hocking Stuart Hawthorn
7. 59 Mary Street, Hawthorn, VIC, four-bedroom, two-bathroom house sold at auction on October 22 for $ 2,855,000 through Jellis Craig Hawthorn
8. 24 Cross Street, Bronte, NSW, five-bedroom, two-bathroom house sold before auction on October 20 for $2.8 million through Di Jones Real Estate Woollahra
9. 74 Cook Park, Sandringham, NSW, five-bedroom, two-bathroom house sold at auction on October 22 for $2.8 million through McGrath Estate Agents
10. 254 Riverside Road, Hawthorn East, VIC, five-bedroom, three-bathroom house sold at auction on October 22 for $2.78 million through Jellis Craig Hawthorn
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