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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Household spending and financing is now on a more sustainable path, which will ultimately benefit the health of the economy, says Ric Battellino, the Reserve Bank of Australia deputy governor.
“This adjustment in consumer behaviour has created a difficult trading environment for some businesses, coming as it has after a prolonged boom,” Battellino said.
"But the adjustment in Australia has been benign compared with the adjustments in household finances and housing markets elsewhere in the world, and it has put household spending and financing on a more sustainable path," he told Citi's third annual Australian and New Zealand investment conference today.
He suggested while it was possible that the global economic situation might take a sharp turn for the worse, "at this stage the bank's central scenario is that global GDP growth will be broadly in line with its long-run average over the period ahead.
"That would create a reasonably benign environment for the Australian economy."
He noted the recent constant theme of the bank's view that there had been a structural change in household spending and financing in Australia.
"After a 10- to 15-year period during which households increased their gearing and reduced their rate of saving, they have returned to a more conservative, and traditional, pattern of financial behaviour.
"Household credit growth has slowed to a rate in keeping with, or slightly below, the growth in household incomes,” he said.
"The saving rate has increased to a level that is more normal based on history; and household spending growth has slowed from a rate that substantially exceeded household income growth, to one that, over the past year, has been broadly in line with income growth.
"Within total consumer spending, there appears to have been a shift away from spending on goods in stores to spending on services, particularly services such as overseas travel, eating out and entertainment.
"As a result, retail sales have been particularly weak," he noted.
Battellino suggested it remained to be seen how the Australian economy would respond to the recent financial volatility and the consequent fall in confidence and the loss of wealth.
"Retail sales have picked up a little, housing loan approvals also seem to be picking up somewhat, most measures of business conditions remain around average levels and the most recent employment data have been more positive after a number of weak months.
"Nonetheless, job vacancies and advertisements are lower than their peak around the start of the year, overall credit growth remains subdued and the housing market remains soft.
"Recently, there has been some easing in financial conditions following the fall in market interest rates that has accompanied the financial volatility,” he said.
"Banks have passed through to borrowers notable declines in interest rates on term housing loans and some business loans, as their cost of funds has declined.
"Increased competition among banks in response to the increased availability of deposits and relatively subdued demand for loans has also resulted in some shaving of interest rates on standard variable mortgage loans for new borrowers.
"As a result, the interest rates on new loans are now around 10 to 15 basis points lower than they were early in the year.
"The modest net fall in the exchange rate in recent months has also, to some extent, reduced pressures on some sectors of the economy," he said.
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Household spending more sustainable: RBA

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The challenges facing the operators of hotels and resorts in regional markets have been highlighted in a speech today by Ric Battellino, deputy governor of the Reserve Bank. 
Speaking about the two-speed nature of the economy, Battelino told delegates at Citi's third annual Australian and New Zealand Investment Conference in Sydney that the increasing numbers of Australians heading overseas, rather than a drop in the number of foreign tourists, is hurting the tourism industry.
“Overseas trips by Australians are running about 60% higher than five years ago. Given the increase in overseas travel, it is not surprising that the traditional holiday destinations in Australia, such as the Gold Coast and North Queensland, are currently among the weaker parts of the Australian economy,” he said.
His comments come as a number of high-profile leisure assets in Queensland have been listed for sale, including 103-hectare <a href="https://www.propertyobserver.com.au/leisure/another-queensland-golf-course-for-sale/2011102351992" target="_blank">Noosa Springs development on the Gold Coast</a> and  <a target="_blank" href="https://www.propertyobserver.com.au/developments/offers-over-%2430-million-sought-for-austcorp-s-coomera-waters-gold-coast-development/2011101851986?source=flciker2">Austcorp Group’s masterplanned 476-hectare Coomera Waters development</a> on the Gold Coast.
Latest ABS figures show that Australians heading overseas outnumbered visitors by 181,000 in August, with 649,000 Australians headed overseas compared with 468,000 short-term visitors. Short-term departures are up nearly 11% compared with a year ago, while overseas visitor numbers are trending down 1% over the same period.
Battelino also noted that the commercial property sector was still dealing with the effects of over-gearing that occurred just before the GFC and would take some time to recover.
“In other sectors, such as commercial property, the weakness is mainly the result of investors and lenders having to deal with the consequences of over-gearing in the pre-2008 period,” he said.
“When too much borrowing and lending occurs, as it did in this sector, it can take many years for the excesses to be unwound. Some large adjustments have already taken place in the commercial property sector but the process probably still has further to run.”
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lschlesinger-FZcF9M3vE6

Aussies holidaying abroad hurting domestic hotel operators: RBA

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Lend Lease’s Australian Prime Property Fund has acquired the Cairns Central shopping centre in its entirety after paying $261 million to buy the 50% share held by joint owner Westfield.
Westfield’s half-share in the centre was valued at $225 million on a yield of 6% in its most recent annual accounts ending June 30, 2011.
The sale to Lend Lease will generate a healthy return for Westfield, which acquired its 50% interest in the centre in October 2006 for $160 million. Lend Lease bought its share in 2001.
The 52,725-square-metre, two-level centre was put up for sale by Westfield and Lend Lease earlier this year with a price tag in excess of $450 million. The sales campaign was run by Simon Rooney of Jones Lang LaSalle with Perpetual Trustees appointed to manage the process following a four-year dispute over management of the centre.
Major tenants of the mall include Myer, Target, Coles, BI-LO, a six-screen Birch, Carroll and Coyle cinema complex, along with JB Hi-Fi and 174 specialty shops.
The shopping centre attracts around 8.8 million visitors a year with speciality store turnover at $10,200 per square metre, higher than the average for regional shopping centres, The Australian Financial Review reports.
Besides Westfield, which bid for Lend Lease’s share of the mall, other bidders for the mall including QIC <a href="https://www.propertyobserver.com.au/queensland/amp-scouting-out-cairns-central-shopping-central/2011081651179" target="_blank">while AMP Capital Investors undertook a valuation and due diligence of the centre in August this year</a>.
The sale of Westfield’s share of the mall ends an unhappy partnership with Lend Lease – since 2007 the two companies have battled through the courts over management of the centre.
APPF’s property portfolio comprises interests in 15 shopping centres, with over 2,800 tenants and is valued at $3.7 billion. Assets include the recently upgraded MidCity centre on Pitt Street Mall in the Sydney CBD.
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Lend Lease buys Westfield's stake in Cairns Central shopping centre

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We are often asked about the impact of maintenance and capital improvements on direct residential property returns. More specifically, what are the annual performance leakages attributable to these costs? Today’s column will try and shed some analytical light on this murky subject. 
As an aside, I will not examine how the same issues afflict the far smaller “commercial property” sector – there is less than $300 billion of commercial, industrial and retail real estate compared with circa $3.6 trillion of housing – which nevertheless assumes far higher weights in institutional investor portfolios to the latter’s detriment. 
The very poor performance reported by Australian super funds in recent years has been in part driven by unnecessarily high exposures to risky listed property trusts (or REITs) and unlisted commercial property. As but one illustration, my first chart below compares the performance of Australian houses (capital growth plus 50% of gross rents to control for costs), which is the red line, with the ASX/LPT Accumulation Index, which captures all REITs and is denoted by the blue line.
Click to enlarge
<a href="/images/stories/oct251.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct251thumb.gif"></a>
For some reason, Australian super funds have loaded up on the blue line but completely overlooked the red one. Go figure. And which of these two lines gives more pause in relation to the perennially emotive “bubble trouble” question? We read so much crap about “house price bubbles”, but almost never hear about the far bigger bubbles that one finds in commercial property prices. The hard data suggests that the real “irrational exuberance” was attributable to institutional investors, like super funds, chasing too much commercial, as opposed to residential, property. 
Commercial property advocates try to dismiss the highly liquid “market pricing” afforded by the ASX LPT index and point to the much lower volatility (risk) numbers that derive from indices that purport to track “unlisted” portfolios of commercial real estate. The problem with these measures is that they are heavily influenced by “non-market” human valuations that typically ignore distressed sales (i.e., those properties selling at discounts during times of crisis) and thus artificially smooth returns. That’s akin to saying, “We are going to remove all the really badly performing companies listed on the ASX because they are distressed.” 
But enough venting. Let’s return to my central task today: quantifying the impact of capex and maintenance on residential property returns (the results are similar for commercial property). Some house price proxies, such as “median price” or “stratified median price” indices – of the kind reported by APM and the ABS – make no attempt to control for the bias induced by capital improvements (viz., renovations) and the other maintenance required to preserve the value of the underlying assets included in the index to mitigate depreciation. 
The repeat-sales indices reported by Residex are probably hampered by similar problems: rather than plucking the median or middle sales observation every quarter, Residex only looks at homes for which it can find both a purchase and sale, and then measures buy-and-hold returns via a regression-based index. This approach has the obvious drawback of excluding all newly built homes. Another problem is that over the average owner’s holding period of seven to eight years, many will carry out some structural improvements in order to boost the value they extract from that asset, and/or to offset the effects of the inexorable depreciation of the dwelling. 
Standard repeat-sales indices do not directly deal with this problem, and are therefore biased measures of house price changes over time. In the academic research literature, there are a number of modifications one can make to the basic repeat-sales methods used by the likes of Case-Shiller in the <country-region><place>US</place></country-region> to statistically control for non-linear changes in a dwelling’s value, which, it is assumed, arise as a function of capex (or depreciation in the absence of capex). But these are inherently imperfect. 
Unfortunately, we cannot know exactly what Residex does because, unusually for a supplier of house price indices, it has historically refused to provide specific details on the methodology it uses. 
Within Rismark’s library of house price index products, we privately produce all of the known techniques, including adjusted repeat-sales models that control for the abovementioned biases. 
By far the best, and most direct, way to address the problems induced by capex on time-series measures of housing costs is through the use of “hedonic” indices. These benchmarks are RP Data-Rismark’s preferred tools for evaluating changes in housing costs over time, and have become the gold standard for the RBA and most banks. 
Critically, a hedonic index explicitly controls for the exact attributes of all the homes included in the index, ranging from their precise location, number of bedrooms, number of bathrooms, the property’s type and land size, whether it has a garage or pool, and its view, among other things. 
As a filter in RP Data and Rismark’s data processing method, we also insist on being able to confirm the specific attributes of all homes within six months of the sales data that is used in the index. In this way, we know that the characteristics that the index relies upon – such as number of bedrooms, bathrooms, land size, etc – are up-to-date. 
Hedonic indices are designed to very explicitly compare like with like. They effectively take the highly heterogeneous “apples and oranges” that are the homes that transact over time, and normalise them such that we can identify the true underlying rates of capital growth attributable to regions, cities and the national market. 
This brings me back to my original question about the return leakages deriving from both high-value structural capital investments (i.e., development application-approved renovations), and other lower value, or non-DA approved, maintenance. 
 
<hr class="system-pagebreak">
 
In what follows, I will try and quantify these for you. It is important to bear in mind that these costs need to be weighed against the asset’s total returns: that is, both capital growth and normal or imputed rental incomes. They should not be deducted exclusively from one or the other. 
The ABS reports two measures of the value of alterations and additions (A and A) on a quarterly basis. The first is the Construction Work Done Series and leverages off the ABS’s Building Activity Survey. The Building Activity Survey (BAS) supplies estimates of the value of work done on alterations and additions with an approval value of $10,000 or more as collected via DAs submitted to Australian councils. 
In the ABS National Accounts a second, far broader measure of residential A and A is published. In particular, the National Accounts upwardly adjusts the BAS estimates to reflect the fact that a substantial amount of alterations and additions activity is not covered in the BAS survey (eg, work under $10,000, and work not done with permits). The National Accounts also boost the BAS A and A by an “undercoverage adjustment” to control for some reporting biases (eg, DAs tend to be undervalued). 
Our previous correspondence with the ABS suggested that the overall National Accounts adjustment factor, which varies on a state-by-state basis, is between four and five times. 
In the chart below we show the <personname>sma</personname>ller BAS estimate of A and A as a share of the value of the total private residential housing stock since 1986. This is calculated by multiplying the number of private dwellings each quarter with RP Data-Rimark’s measure of the all regions, all property types median dwelling price. Since 1986 the average BAS A and A has been 0.26% per annum. Click to enlarge
 
<a href="/images/stories/oct252.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct252thumb.gif"></a>
In the next figure we move to the more comprehensive A and A proxy reported in the National Accounts. Consistent with our prior correspondence, this total A and A estimate is on average 4.95 times larger than the BAS result (see the penultimate figure below). That is, the ABS believes that all forms of dwelling maintenance and capital investments, excluding the construction of new buildings, amount to about 1.26% per annum. Click to enlarge
<a href="/images/stories/oct253.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct253thumb.gif"></a>
<a href="/images/stories/oct254.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct254thumb.gif"></a>
A useful sanity test of these A and A estimates is to look at the value of depreciation as a share of the housing stock. In its National Accounts, the ABS spends considerable time computing the annual value of the depreciation of the private residential dwelling stock owned by individuals. In the final figure we have taken this depreciation proxy and divided it by the same estimate of the total housing stock value used above.
<a href="/images/stories/oct255.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct255thumb.gif"></a>
Unsurprisingly, depreciation, which averaged 1.2% per annum between 1986 and 2011, is almost exactly the same as average capital expenditure. In fact, it also tapers off during the 2000s, just as capex appeared to do. And it reconciles almost perfectly with the ABS’s estimate of the average dwelling life of 88 years. 
To summarise, this analysis suggests that the total value of maintenance and A and A as a share of the value of the dwelling stock is around 1.2% per annum (rounded down), all else being equal.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

How much value renovating adds to your home

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Commercial property requires a little more thought than residential property. But the rewards are solid, and generally, more predictable.
Simply keep these five aspects in mind when it comes to choosing commercial property.
1. Location
For commercial property, location is more than a simple matter of demographics. Each property type requires its own set of unique attributes.
For instance: retail centres depend upon road access, high foot traffic and a local population of adequate size to support its tenants. Office buildings benefit from nearby freeways or public transport, coupled with support activities nearby.
2. Tenants and leases
When evaluating a commercial property, pay careful attention to the tenancies.
A good mix of stable tenants means are greater likelihood of you collecting rent in the future. Pay careful attention to the length of each tenant's initial lease term, as well.
Having long leases is usually better than having short leases. But you shouldn't have every lease falling due at once — instead you should stagger their expiry dates, to minimise your risk.
3. Have an exit strategy
Property investors typically focus on maximising the return on their equity.
As you own a property for a period of time, you continue to build equity through both increases in the property's value and reducing your mortgage. Over time, your growth rate will stabilise –  indicating that it could be time to find a replacement property.
When buying a Commercial property, my recommendation would be to undertake a formal review every four years.
4. Make allowances for capital expenditure
In marketing commercial property, the stated net income typically excludes capital expenditure like roof replacement, or any other required upgrades. Your due diligence should flag these, and a preventative maintenance program can also help in preserving your future cash flow.
5. Liquidity vs leverage 
Most investors know that leverage (or debt) can help in the hands positive swings in the market and significantly increase your returns. Unfortunately, the use of leverage can also limit the amount of money that they have available for emergencies.
With this in mind, you should also set aside a pool of funds — to help cover up to six months’ worth of interest, if the need should arise down the track.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Five criteria for buying commercial property

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This week we witnessed a high-profile agent get slapped across the wrist for “lying” about an offer.  I have to tell you, a selling agent “bending” the truth to manipulate a higher offer from a buyer is not a rare experience in real estate – or any other selling industry, for that matter.  After all, a buyer won’t increase a bid just because he appreciates the property’s attributes; however he’ll shift if he feels the heat on his neck from another “interested party”.  Sales agents won’t be slow to play on a buyer’s emotions if it means getting a higher price - they’re contractually obliged to work in the best interests of their vendor, not assist the buyer.
The vendor is paying the selling agent no meagre amount to get a premium price for their property.  While most agents won’t go out of their way to openly lie to a buyer, any advice relating to the likely sale price of a house will always come with a good degree of bias towards the vendor.  Therefore just as you wouldn’t trust the vendor’s solicitor to give you unbiased advice on a sales contract, neither should you trust a vendor’s selling agent to give you unbiased advice on price! You’ve got to do your own leg work – or you’ve got to enlist your own representative to do it for you.
The auction system claims to be a more “transparent” system of sale.  Providing the property reaches its “on market” number, the process will clearly show who is there to purchase and a figure they’re willing to pay.  However, considering most auctions in Victoria fail to be knocked down and end up being resolved via negotiation, it’s imperative buyers have a basic understanding of their rights should a property pass in.   For example, it takes just one bid from the highest bidder prior to a property passing in to grant them an exclusive right to negotiate at the vendor’s reserve.  While negotiations are ongoing, the agent may not deal with anyone else who may be willing, or able, to pay a higher price. The rule is reiterated at every auction I attend, however the message isn’t coming across.  When I see properties pass in on a vendor bid and five people immediately approach the auctioneer following the auction to embark on serious negotiation, then later in the day see the property has sold for a price higher than the vendor bid given, I can only shake my head at the lack of experience.  When this happens the agent is in the box seat – not the buyer – and as an experienced negotiator, they’ll often be able to manipulate a higher price from the buyer than they would have done had there been competitive bidding outside the property.
It’s all very well calling on the state government to place further safeguards on the industry, but it’s extremely hard to hamstring a sales agent to work fairly for both buyer and seller.  Furthermore, it’s in the government’s interests to line the coffers with hefty stamp duty payments – who’s going to worry in Parliament if a buyer pays tens of thousands over the purchase price through lack of experience?  When such issues arise, the government continually says,” We will look into it” however they will never be able to legislate that a selling agent must assist a purchaser. This would break the fundamental contractual obligation the selling agent has with their vendor.
We get a similar outcry every so often regarding price quotes. Rightly or wrongly, agents use a number of varied quoting methods to “condition” expectation. Quoting low – while unfair – is not officially underquoting.  Pricing property is not an exact equation. When a sales agent lists a property for sale he draws a fine line between market expertise – (broadly based on comparable sales) – and personal opinion. The exact requirements by law are minimal. According to the Estate Agents Act in Victoria for example, the agent is required to write an estimate of likely sale price on the sales authority. This can either be a single price, or 10% price range. This range doesn’t have to be the vendor’s asking price or – in instances where the vendor’s asking price is unknown – reflective thereof.
If an agent advertises the property under the bottom number of the estimated price range, it is regarded as underquoting. However, the agent’s price quote  is an extremely conservative appraisal of what the property can easily and comfortably achieve, not a “guesstimate” of what buyers might pay in the heat of an auction, or the vendor’s “wish” price. The vendor is employing the agent and approves of the way he quotes, markets, and advertises the property. Therefore perhaps the pressure should be placed on the vendor and if the vendor is not willing to sell within the quoted range, insist it’s changed?  However, I doubt you’ll see it happen, vendors know as well as agents how the low quoting system works to attract buyers.
While I am in full agreement of fair legislation outlawing deceitful advertising and agree whole-heartedly that an agent openly lying to a buyer about a serious offer should be frowned upon, the responsibility unfortunately falls upon the buyer to get the right advice prior to purchasing to secure peace of mind.  It would take a foolish selling agent to use deceitful tactics on an experienced licensed buyer’s agent.  Throwing out a line about some “higher” phantom offer is just too easy to debunk. We’ve seen all the tricks of the trade and know our way around each and every one of them.
Nearly every person who sells property in Victoria uses a sales agent. They pay roughly 2.5% of the sale price to employ a professional expert to market, assess and negotiate the property’s sale.  Most believe this is the best way to achieve the highest possible price in an industry where they have little expertise.  Buyers also have the option of levelling the playing field by employing their own representative.  Just as you wouldn’t stand up in court without using the services of legal counsel, so too do you risk being tripped up by the system if you purchase property without getting an experienced licenced agent to work on your side.  It’s a choice – not a requirement – but it’s one every buyer should take advantage of if they really want to avoid the pitfalls.
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 selling agent will never work in a buyer's best interest

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Apartment construction turnover is forecast to suffer a slump in the next 12 months before picking up again in 2012-13, according to the Australian Industry Group/Australian Constructors Association Construction Outlook survey for October. 
Turnover generated from the construction of new apartments grew by 2% for the 2010-11 year, but is forecast to fall by 1.2% over 2011-12 before picking up by 4.8% over 2012-13. 
Demand from the resource sector will drive the construction industry over the next two years, with engineering construction turnover forecast to increase by 13% in 2011-12 and by 14.2% in 2012-13, driven by mining investment and the strong pipeline of heavy industrial projects, led by oil and gas processing. 
Overall, the outlook for construction firms is increasing, with total turnover forecast to grow by 10.3% in 2011-12 and by 12% in 2012-13, nearly double the turnover growth of 6.3% achieved in 2010-11. 
The commercial construction sector is expected to gain momentum over the next two years, but activity will continue to lag engineering construction reflecting low levels of work in planning. 
The total value of commercial work is forecast to increase by a subdued 2.4% in 2011-12 but will pick by 6.2% in 2012-13, due mainly to a stronger impetus from private-sector investment. 
While noting the very strong outlook for engineering construction AIG chief executive Heather Ridout says it also shows that the broader building and construction industry still faces many challenges.
“Residential construction remains in the doldrums and while commercial construction shows welcome signs of life, prospects very much depend on the market segment and the location,” she says.
The report also finds that construction businesses are facing increased pressures in the procurement of building materials and capital equipment and, more significantly, worsening skill shortage bottlenecks. More than two-thirds of businesses (68.8%) reported either major or moderate difficulty in the recruitment of qualified labour during the six months to September 2011.
While expressing concerns at the procurement of building materials and finding skilled labour,  Australian Constructors Association president Peter Brech<a href="https://www.wwfax.com.au/mtcgi/tracklink3.php?x=0107ABEE.02E9D075&amp;href=http%3a%2f%2fwww.constructors.com.au%2fboard-member-peter-brecht">t</a> says the prospects for the industry are positive “underpinned by robust growth in engineering construction work and encouraging signs of recovery in the commercial construction sector”.
The survey undertaken over August and September covered the responses of 100 companies employing almost 74,000 people with combined turnover of almost $30 billion or approximately 30% of total industry activity.
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Apartment construction to slump in 2012: Industry survey

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The economic recovery in Queensland is flowing through into surging demand for office space in the Brisbane CBD, but a recovery for the weak Gold Coast market is still some way off, according to research by CBRE. 
Deloitte forecasts the Queensland economy to grow by an average of 5.3% between 2012 and 2106, driven by demand for commodities, nearly double the forecast growth rate of NSW (2.7%) and significantly higher than that forecast for the overall economy (3.4%). 
In line with this resurgence, the Brisbane CBD office market has tightened to levels last seen in 2009, with rebounding white-collar employment and demand for space from the resources sector shrinking the overall vacancy from 9.4% to 7.4% in the six months to July 2011. 
In the prime space, the vacancy rate stands at just 4%. 
Over the six months to July 2011, the net absorption of office space was over 36,000 square metres, with prime gross rents around $750 per square metre mark and secondary rents just under $500 per square metre. 
The vacancy rate is forecast to rise to 9.5% in the first half of 2012 as new stock comes on board, including GPT Group’s One One One Eagle Street, the 54-level premium-grade office tower on the Brisbane River, which will feature 64,000 square metres of office space. 
ANZ, Ernst and Young, and law firms Gadens and Norton Rose have precommitted to an aggregate of 30,000 square metres of space in the new building.
Another building due for completion next year, Leighton Properties’ 27-storey, 28,000-square-metre King George Central A-grade office tower at 145 Ann Street, is 85% pre-committed.
 <img src="/images/stories/cbreoct24.gif">
CBRE is forecasting rental growth of approximately 4.4% per annum in the prime market and 2.2% in the secondary market until 2016. 
“Substantial” demand for office space from the resources sector has caused the Brisbane vacancy rate to tighten far more quickly than previously anticipated, according to CBRE state director for office services David Prosser. 
“There has been a noticeable flight to quality, which has resulted in a contraction in vacancy rates for Brisbane’s prime CBD office space,” he says. 
“In addition, there is a limited amount of prime contiguous floor options immediately available which has resulted in some rental growth, albeit minimal, in some A-grade buildings.” 
The picture is decidedly less rosy as one heads down the M1 freeway, with nearly a quarter (22.4%) of Gold Coast office space vacant. 
According to CBRE senior associate director of global research and consulting Craig Godber, the Gold Coast is sitting “temporarily in the slow lane of the two-speed state recovery”. 
However, positive economic forecasts auger well for the medium-term outlook – particularly as there is limited new supply set to enter the market over the next few years. 
“Growth forecasts suggest a sharp rebound for the state economy in 2012 underpinned by a surge in business investment due to a rapidly expanding resources sector and the growth of white-collar employment,” Godber says. 
CBRE senior director of office services Tania Moore says strengthening of net absorption and the absence of new supply has provided an opportunity for a tightening in the vacancy cycle to begin. 
“The stabilisation of rentals and incentives is further evidence of the market’s solid fundamentals,” she says. 
“However, given the extent to which the Gold Coast office market has fallen, the path to recovery will continue to be gradual and staggered.” 
Some pockets of the market are recovering faster than others, led by Robina, the inland suburb about 16 kilometres west of Surfers Paradise underpinned by tenant demand and an easing vacancy rate. 
Robina is likely to be the only Gold Coast precinct to witness any significant supply additions in the short term. 
“While any new additions to the broader Gold Coast market still appear years away, unless pre-commitment driven, the Robina precinct may prove to be the exception,” Godber says. 
“The rapid tightening in the precinct’s vacancy rate could support new supply by as early as next year.”
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Brisbane office market surges ahead, leaving Gold Coast in the dust

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Aussie Home Loans founder and executive chairman John Symond is encouraging borrowers to fix at least a portion of the mortgage repayments after the mortgage broker became the latest lender to cut its fixed-rate product suite.
Aussie has cut its three-year fixed rate to 6.29% per annum, pointing out that this is “considerably lower than the average advertised standard variable rate of the four major lenders at 7.8%”.
It beats the three-year fixed rate of 6.48% <a target="_blank" href="https://www.propertyobserver.com.au/news/commonwealth-bank-cuts-fixed-home-loan-rates/2011080951090">being offered by the Commonwealth Bank</a>, which owns a third of Aussie.
According to mortgage comparison website Ratecity.com.au, Aussie (alongside AMP) now offers the third cheapest three-year fixed rate product behind Newcastle Permanent (5.99%) and Homestar Finance (6.25%).
Symond points out that the RBA would have to cut the cash rate six times (assuming cuts of 25 basis points) to bring it in line with its current fixed-rate offering and says the time is right for home owners to consider locking in at least part of their mortgage, as the current fixed rates are extremely competitive.
"Over the years I have advised people to stick with variable and pay off as much as you can in order to pay the loan off faster," he said. "However, with these competitive rates, it makes sense to lock away part of your loan as an insurance policy against global uncertainties," he adds.
"The cost of funding is quite high and while the current round of aggressive fixed rates may be good news for consumers, they may not last forever, so it pays to look at your home loan now," he says.
<table border="0" cellspacing="0" cellpadding="0" align="left" style="width: 470px;">
<thead><tr>
<td></td>
<td>
Aussie Optimizer Fixed Rate
</td>
<td>
Comparison Rate* Aussie Optimizer Fixed Rate Converting to Aussie Optimizer 
</td>
</tr></thead>
<tbody>
<tr>
<td>
1 year fixed
</td>
<td>
6.33%
</td>
<td>
7.65%
</td>
</tr>
<tr>
<td>
2 year fixed
</td>
<td>
6.39%
</td>
<td>
7.52%
</td>
</tr>
<tr>
<td>
3 year fixed
</td>
<td>
6.29%
</td>
<td>
7.37%
</td>
</tr>
<tr>
<td>
4 year fixed
</td>
<td>
6.59%
</td>
<td>
7.36%
</td>
</tr>
<tr>
<td>
5 year fixed
</td>
<td>
6.69%
</td>
<td>
7.31%
</td>
</tr>
</tbody>
</table>
 
 
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Now may be the time to fix your mortgage: John Symond

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A new development in the western Melbourne suburb of Maribyrnong is two-thirds sold three months after marketing began, mostly to investors.
The 27 apartments in the complex comprise three one-bedroom and 24 two-bedroom units, some with one bathroom and some with two. Nine units are left, all with two bedrooms. All 27 have car parks.
One-bedroom units are 51 square metres internally (plus eight-square-metre balconies) and ranged in price from $369,500 to $379,500. Two-bedroom apartments range in size from70 to 83 square metres internally (plus 12-square-metre balconies) and are priced between $475,000 and $535,000.
<img src="/images/stories/tropezinside.jpg">
Avion Properties director Phillip Osmond says the company began marketing the units about three months ago but did not have an official launch date.
Osmond says about 60% or 65% of the sales were to investors and adds that the area has a strong rental market.
“You got Victoria University within walking distance, Highpoint’s only walking distance, and it’s only seven kilometres from the CBD,” he says.
Avion Properties estimates that unit 202, a two-bedroom apartment priced at $480,000, would rent for between $455 and $465 per week. That would secure an investor a gross rental yield of about 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. According to RP Data the indicative gross rental yield for Melton apartments is 5.4%.
Tropez is within the Riviera Estate, which primarily comprises house-and-land packages but also includes several other unit developments.
Osmond says construction will begin in the next two to three weeks and is due to be finished by late 2012.
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