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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Criticism has been heaped on the recently completed and not yet fully leased 1 Bligh Street office tower over its office plate design, restricted harbour views and premium rents.
Earlier this month, Dexus reported in an ASX filing that 44%<a href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875" target="_blank"> of the building was still untenanted</a>, with an analyst from Merrill Lynch saying it could take up to four years to find enough tenants to fill the state-of-the-art oval-shaped building,  jointly owned by Dexus Property Group, the Dexus Wholesale Property Fund (DWPF) and Cbus Property.
Commercial property insiders say the 1,600-square-metre curved floor plates, which each have a bite taken out of them by the atrium running all the way up the tower, is an unappealing feature for tenants considering taking up a whole floor.
In addition, insiders claim that the building offers more restrictive and less impressive Harbour views than other nearby office towers, where rents are significantly cheaper.
Rents are believed to be in the $900 to $1,100 per square metre range for lower floors rising up to around $1,300 for the upper floors.
Office space of up to 2,000 square metres in nearby 1 Chifley Square is being advertised for net rent of between<a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-5294475"> $480 and $500 per square metre</a>.
The 1 Bligh Street building, valued at around $629 million, has a six-star green star rating with standout features being its double-skin façade and glass atrium requiring high rents to deliver a suitable return to its owners.
Levels 17 and 18 in 1 Bligh Street are due to be subdivided to cater for small boutique tenants following a trend emerging across other CBD office towers including Gateway Tower, Aurora Place and Chifley Square, The Australian reported.
Commercial leasing directors say smaller spaces can command higher rents adding as much as a 10% premium.
Its current anchor tenant is law firm Clayton Utz, which has taken 23,000 square metres of space comprising the first 15 levels of the building. <a href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191" target="_blank">The Commonwealth government is believed to be considering taking up to 4,000 square metres of space in the building.</a>
As part of its leasing agreement with Clayton Utz, Dexus agreed to pay the law firms rent at its previous premises at 1 O'Connell Street until the lease expired.
According to a report in The Australian, the bill totalled $50 million.
However, Dexus recently reached agreement with Australian Prime Property Fund and the Abu Dhabi Investment Authority, landlords of 1 O'Connell Street to allow refurbishment of the building. European bank BNP Paribas is reportedly considering taking up 10,000 square metres.
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Dexus’ 1 Bligh Street criticised over price, design and views

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This week I created a system.  My aim was simple: to achieve more in less time.
I had decided to set up a meeting with one of my builders.  The builder and I only started working together fairly recently when I introduced this particular type of development earlier this year, and  over a short period of time we were now up to our sixth project.  I knew we could fine-tune our process.  He’d had some recent staff changes so it was the perfect time to gently tell him exactly how I wanted my developments to run.
Before the meeting yesterday I’d prepared a draft procedures document, which was based on the way we had been doing things up until then.
But it wasn’t until I started documenting pretty much everything we did that I realised how much was involved in this somewhat basic development strategy.  What started in my mind as a one-pager has turned into four. It’s funny how we simplify in our minds a process because we’ve done it time and time again.  But when you really break it down in writing, you can see all the fine details.
Using a system or procedure keeps me on track with our projects. I now literally have a written system for everything I do.  It gives me something tangible to show to my clients and helps explain exactly what Property Bloom really does when managing their development.   It’s also an important tool to use when training new staff as they have a documented procedure to follow.
By the end of the meeting with my builder, we had agreed on a three very important changes that will impact the bottom line of my developments;
<ol>
<li>We changed our standard floor plan slightly to make it more cost effective to build, without reducing the size. Now I could offer my clients a cheaper build price that will not impact on the end value or rental return.</li>
<li>We changed the payment schedule so my clients would pay less in the first half of the build phase, saving them valuable holding costs.</li>
<li>We minimised choice to save time. By setting up standard inclusions plus a list of ‘”optional extras” it meant that clients would not feel overwhelmed by choice on fittings, fixtures and colour selections and we could manage this process faster moving to the next step and saving time.</li>
</ol>
I was happy with my new system and excited to put it into action immediately and already we are getting more done in less time.  Because as they say – time is money.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

A systematic plan will help you organise your development

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A major correction in Australian property prices will occur over the next two years and an  even bigger one over the next decade and a half, according to University of Western Sydney associate professor of economics and finance Steve Keen. 
Keen is forecasting a 20% drop in house prices between now and the end of 2013.  
The economist has also also stuck with his forecast that prices will ultimately tumble by about 40% but stressed that this would occur over a much longer timeframe than previously reported. In September 2008 Keen made headlines when he was quoted as saying properties prices would fall 40% over the next few years, a statement he is eager to correct.
“I’ve always been strong in saying that [the 40% drop] will be over 10 to 15 years,” Keen said in an interview with Business Spectator.
“But in terms of bringing it to a tighter timeframe, I think you could tie me down to saying I’d expect something of the order of a 20% fall from peak to trough, whatever the peak might be, whatever the trough’s going to be. 
“I’d be quite happy now to say the last price peak was the overall peak and so I’d expect something of the order of a 20% fall between now and say the end of 2013.” 
Keen made the comments following publication of a new version of his book Debunking Economics. 
 
The academic forecasts that it will take up to two decades for the global economy to recover from the GFC. 
He criticised the US government’s response to the GFC and said it had got it wrong by giving money to the banks, which just put in their reserve accounts instead of to the indebted firms and households that needed it most. 
“If you look at what would happen with, say, an economy worth roughly a trillion dollars and an injection of a hundred billion dollars one year after a crisis begins, you do get about three times as much bang for your buck by giving it to the households than giving it to the banks. 
“So, Obama effectively wasted two-thirds of the money he gave to the banking sector – if he’s lucky. In fact, that’s probably an underestimation,” Keen says.
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Property prices to fall 20% by 2013 year's end: Steve Keen

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Against a backdrop of overall softer conditions in the Australian commercial property market, retail property remained the poorest-performing sector and has the weakest outlook, according NAB’s September quarter survey.
Hotel property remained the strongest performer in the commercial property sector in the September quarter, with the All Hotels Index standing at +23 points. However, conditions have softened since June (+27 points), with this market also impacted by a less favourable economic backdrop.
The overall decline in the commercial property sector was the result of “persistent uncertainty in the global economy and equity markets impacting negatively on confidence,” the bank says.
As a result, NAB’s Commercial Property Index fell to -13 points in September (-5 points in June), with the index now at its lowest point since NAB began surveying the market in March 2010.
The index is a measure of market sentiment and based on responses from commercial property market participants.
<img src="/images/stories/naboct20.gif"> 
 Source: NAB
Conditions in the retail property market turned down further in the September quarter, with the NAB Retail Property Index falling to an all-time low of -40 points. 
Forward expectations were also revised down, with the retail property index now forecast to remain negative through much of 2012 before rising modestly in 2013. 
Overall conditions have weakened in all states and are expected to be weakest in NSW. 
Capital value expectations were negative in all states in the September quarter and are expected to continue falling over the next 12 months. 
A mild recovery in capital values is forecast by September 2013. 
At the other end of the spectrum, industrial property was the only sector that reported stronger conditions in September, though NAB’s Industrial Property Index was still negative (-12).
Conditions in the industrial property market are forecast to bottom out this year, with the sector emerging as one the strongest performers in the commercial property space over the next one to two years.
WA is currently the best-performing state market, but the outlook is strongest in Victoria. There were no significant changes in national capital values and rental growth in September, with both still falling but at a slower rate than in June.
Positive growth is set to resume next year, with expectations for capital values and rents over the next one to two years strongest in WA and Victoria.
Improved conditions are forecast in all property segments over the next two years, but the pace of recovery is expected to be slower than previously anticipated.
Office property is expected to remain the strongest-performing segment overall and retail the weakest.
All states reported weaker conditions in September, except Queensland – although it remains among the weakest markets in the country. WA continues to be identified as strongest market and the only state with a positive index reading. However, it is expected to be overtaken by Victoria as the strongest market by September 2013.</body></html>

Weak outlook for  retail, but industrial to improve: NAB 

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Holding Redlich will become the anchor tenant of the St James office project being developed by the Juilliard Group in the Melbourne CBD. 
The law firm has committed to lease the top two levels of the 555 Bourke Street building together with a portion of the ground floor. 
CBRE brokered the 6,500-square-metre lease, which will provide the law firm with a dedicated entry and lobby space.
 Holding Redlich senior partner Chris Lovell says the location, overall design and quality of the building are the three main drivers underpinned its decision to relocate the firm to 555 Bourke Street from its current offices at 277 William Street. 
The Juilliard Group is currently redeveloping the St James precinct and office building to include two additional floors on top of the current structure as part of a comprehensive refurbishment of the existing floors and an active precinct of 3,000 square metres of food and retail outlets. 
The Juilliard Group hopes to achieve a five-star NABERs rating for the project. 
CBRE has also been appointed to lease the remaining approximate 14,000 square metres of office space in the development that is due for completion by mid-2012.
It is speculated that St James will be seeking rents in the mid $400s net for the remaining space, which is commensurate with prime market rentals in 2012.
CBRE regional director of office services Hamish Sutherland says the balance of the space will enter the market in mid-2012, “coinciding with a forecast shortage of good-quality office accommodation in the Melbourne CBD”.
The latest Property Council office vacancy statistics pinpoint Melbourne as having the lowest vacancy rate of Australian’s mainland capitals as at June 30, 2010.
Six months of strong tenant expansion pushed the CBD vacancy rate down to 5.8% - the lowest level since before the global financial crisis.
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Holding Redlich to anchor Bourke Street tower

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Elevated gearing in A-REITs such as Macquarie Countrywide and ING Industrial Fund and the exuberant entry into foreign markets by A-REITs such as the Centro Properties Group and Valad Property Group caused significant damage to many A-REIT balance sheets. These imprudent strategies led all four of these A-REITs to be taken over or sold into other entities.
The expansion into foreign markets was designed to capture growth opportunities outside <country-region><place>Australia</place></country-region> in addition to the benefits of diversification into markets with fundamentally different underlying economic and social drivers. The low cost of debt capital in those overseas markets had encouraged acquisitions of assets and portfolios of assets. The A-REITs bought into markets that were characterised by rising asset values, and when debt availability dried up, asset values dropped substantially. A-REITs were then forced to raise equity to restore basic lending covenants and asset sales were effected to restore balance to balance sheets.
The poor outcome for the A-REITs that did not implement this strategy appropriately damaged the investor sentiment which had supported their price growth in the mid-2000s, as noted in Figure 1.
<img src="/images/stories/wistoct20.gif">
The 70% price drop across the board between October 2007 and March 2009 was testament to the damage caused by the unavailability of credit in the strategies implemented over the four years prior. In the two and a half years since that time there has been 35% price recovery as A-REITs regain ground, but they remain 59% below their 2007 peak. A-REITs such as Mirvac, Multiplex and GPT progressively withdrew from overseas markets signalling a shift in focus back to the domestic market. <city w:st="on"><place w:st="on">Westfield</place></city> and Goodman Group remain substantially invested in overseas markets as a core part of their investment strategies. 

The lessons learnt from recent experience include the importance of understanding property and its risks in overseas locations in its local context, as property is priced in accordance with local conditions. Associating with local partners who demonstrate aligned investment philosophies is also a critical criterion for successful overseas investment.

Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank">Atchison Consultants</a>.
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A-REITs recovering from foreign investment gambles

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None of us like to be lied to or feel we’ve been fooled – and very few of us want to be beaten in a deal.

Buying a home is a significant emotional experience – and for many buyers there’s an extra emotional stress when we start dealing with agents and negotiating.

Selling agents are masters at managing buyer emotions. They’re quite capable of bending the truth when it’s in the interests of their client – the seller. As a buyer though, being at the other end of that manipulation can be incredibly unsettling.

When it happens – or rather, when we perceive it is happening – we feel a charge of emotion. We feel we are losing balance and self-interest and ego comes into play. Emotion builds up inside us and we change chemically. Our decision making processes alter – not necessarily to our benefit.

Feeling that we’re being lied to undermines our trust in the salesperson and in the whole buying process. I’m not dealing with that lying salesperson, we think. I’m not buying my home through an auction because it’s unfair.

That’s what you feel. However misdirected emotion can cause intolerable stress, leading to poor decisions, which can result in missing what should have been bought, paying way too much or buying the wrong home just to get rid of that stress.

As buyer advocates, the technique we use to help buyers maintain their equilibrium while knee-deep in difficult negotiations is to ask themselves some questions about how they are responding to the process. Only by being a master of your own responses can you remain in a balanced state to have the best opportunity to make the right decisions.

Ask yourself: Is it the action of the agent or your reaction to it that is causing you angst? The way you react to an agent’s manipulations may well be what is creating the emotion, increasing your stress and potentially lessening your outcome.

And if you are feeling outraged by what you believe are an agent’s lies, consider whether you as a buyer, haggler or negotiator are not also capable of the same when it suits your own interests.   Is your role as a buyer really more noble than the role of a selling agent?

For instance, if a selling agent asks me if my client has any more money to give in this deal, I don’t say yes, not if I feel the deal can be done there and then at that price. Is me telling the agent ‘no that’s the absolute limit’ a mis-truth, acceptable salesman’s puffery or a straight out deceitful lie?

From the other side, if as a buyer agent I knew I could buy this home at $2,000,000 but instead answered truthfully when asked the more money question as yes actually I have $2,080,000 or $2,340,000 have I committed a greater sin of deceit?

Should you even presume that your relationship with a selling agent will be based on trust? After all the deeper the relationship, the greater the emotional effect of the lie. But why would you try to form a normal trusting relationship with the specific people whose allegiance is completely to their client and whose role is to create conflict amongst buyers (auctions) and to minimise buyers’ interests where that benefits their client, the seller? (That role has legitimacy according to the Estate Agents Act and Common Law).

Why not form those relationships with people whose role is to minimise your conflict and to maximise your interests!

Selling agents are not bad people. They engage in techniques to maximise the interests of their client (the seller), most of which are legal and that you yourself would engage in, if you were skilled enough to do so.

Feeling aggrieved about being manipulated or feeling that you have been lied to by an agent rarely helps you.  All it does is make you emotional, alters your chemical balance and changes your decision making processes generally for the worse.

You can minimise the “lying effect” and the emotional roller coaster responses by engaging professional buyer representation, acquiring a deeper understanding of your main goals and good questioning technique when you hit the bumps along the way. All of this hopefully leads to a different, more beneficial perspective of what it’s all about – buying the right home not about “getting the agent”.

Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

Keep your emotions in check when negotiating for a property

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Price “optimists” still outnumber “pessimists” but the median view is now firmly for no housing price change over the next year, according to the Westpac-Melbourne Institute Consumer House Price Expectations Index.
The house price direction index showed a further cooling in October.
The overall Westpac–Melbourne Institute Consumer sentiment survey showed a slight improvement in October, holding onto September’s 8.1% rebound and edging another 0.4% higher.
However Westpac senior economist Matthew Hassan suggests the overall message is still downbeat and the vibe is “edgy”.
“The index remains firmly in pessimistic territory with the steady monthly result concealing powerful undercurrents pulling sentiment in both directions.”
Responses show a big influence from financial market turbulence – which remains extreme across both equities and the Aussie dollar – and the RBA’s continued shift to an easing bias on interest rates.
The survey detail also showed a mix of improvement – on views on family finances, economic prospects and jobs – and deterioration – on “time to buy” a dwelling, a vehicle or a major household item and on house price expectations.
Consumers continued to show mixed view on housing.
Hassan notes that attitudes towards “time to buy a dwelling” fell sharply by 10.4% in October but this had followed a surprisingly big 15.1% jump in September.
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Consumer sentiment shifts to no house price changes this year: Westpac RedBook

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Australian banks are coping well with the current global market stresses in contrast to the challenges faced by their European banking counterparts, according to RBA assistant governor Guy Debelle.
Addressing the 24th Annual Finance and Treasury Association Congress in Sydney today, Debelle said Australian banks' funding structures were “considerably more resilient to periods of stressed markets than they were previously, given the changes that have occurred over recent years” compared with the stresses felt in Europe.
During the address, Debelle noted the funding pressures being felt by European banks and the need for European Central Bank funding support.
“The cost of funding for European banks generally has risen, while many banks in the European ‘periphery’ countries have all but been locked out of funding markets,” Debelle said.
In contrast he said, the equivalent spread between the bank bill rate and the expected cash rate in the Australian market while higher than earlier in the year, “had remained markedly lower than that in Europe”.  “To mitigate the impact of the sharp increase in the cost of unsecured interbank lending for European banks, the ECB has recently announced an expansion of its open market operations. Since May 2010, the ECB has stood willing to provide three month funding to banks in unlimited amount (against acceptable collateral) at its policy rate,” Debelle said.
“By way of contrast, the RBA's provision of liquidity has not changed in recent times. Australian banks' deposits with the RBA have remained around $1.25 billion for over 18 months now. More generally, we see little sign of strain or counterparty concern in the local interbank market.”
He also highlighted the fundamental differences in offshore funding costs for Australian banks versus those faced in Europe noting that the cost of swapping Australian dollars for US dollars has not increased in the most recent episode and indeed has gone negative at times.
In contrast the cost for European banks to obtain US dollars “has increased substantially since May this year, although it remains below the peaks post-Lehman [Brothers’ collapse]”.
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Australian banks more resilient than European: RBA

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In the past few weeks two major personalities – doomsday US commentator Harry Dent, who is spruiking a book, The Great Crash Ahead, and the telegenic star of Channel Nine’s The Apprentice show and founder of listed wealth manager Yellow Brick Road Mark Bouris – have gone head-to-head with their conflicting views of the world in high-profile presentations in Sydney and Brisbane. 
The Dent-Bouris clash has coalesced around several predictably sensational forecasts from the US economist, including, of course, that Australian house prices will fall by 50% (which has led Dent to beseech Aussie families to sell their homes), that the global economy is set for a big crash, and that you should get out of risk asset classes and squirrel your money away in cash. Interestingly, while the protagonists disagree on much, they also find some common ground. 
I was lucky enough to get access to Bouris’s presentation, and thought it was worthwhile reviewing in detail today. 
The founder of Australia’s largest non-bank lender begins by assaulting the presumption that the world is set on an irreversible course towards recession simply because the US and Europe are in trouble. 
More specifically, Bouris argues that there is too much financial market and media focus on the G7 economies, pointing out that they have accounted for less than 34% of global growth over the last decade. 
The “developing world”, on the other hand, has been responsible for generating nearly half of all global GDP over this period.
Bouris tells us that this disconnect is projected to widen: according to the IMF, emerging and developing economies will account for more than 60% of global economic growth over the next five years (see his first two charts below). Click to enlarge
 
<a href="/images/stories/oct191.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct191thumb.gif"></a>
<a href="/images/stories/oct192.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct192thumb.gif"></a>
His critical insight here is that Australia is one of the few developed nations that is industrially leveraged to the much more propitious emerging world: 65% of all our exports go to developing countries, with 75% sent to Asia alone. 
With this in mind, Bouris contends that notwithstanding the ineluctable vagaries of the business cycle, the urbanisation and industrialisation processes taking place in China and India – which collectively absorb one-third of all Australian exports – will inevitably continue. 
Here he draws on his bete noir, the RBA (more on that later), quoting the latter’s estimates that 300 to 400 million Chinese will migrate out of country dwellings into urban cities over the next two decades. Another fascinating statistic he digs out in this context is that whereas there are 170 Chinese cities with more than one million residents, Europe, by comparison, has only 35. 
In a dose of good fortune for the lucky country, it just so happens that the modernisation underway in “Chindia” is dependent on three things that we produce in abundance: steel (iron ore); energy (coal and LNG); and protein (agriculture). On the latter variable, Chinese protein consumption per head has exploded, as it typically does when per capita incomes rise. 
Bouris explains that this is directly impacting Australia’s economy via an unprecedented, and mostly assured, wave of private investment. He presents data showing that the domestic capex that has already commenced, but is not yet complete, is currently worth about $105 billion, or 8% of 2011 GDP. If you then include the more speculative “planned” investment for 2011-12, total expected capex spending rises to a stunning $160 billion, or 12% of 2011-12 GDP using past “realisation ratios” (i.e., the share of planned capex that actually gets expended). The two charts below graphically outline this thesis. Click to enlarge
<a href="/images/stories/oct193.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct193thumb.gif"></a>
<a href="/images/stories/oct194.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct194thumb.gif"></a>
The message from the Wizard Home Loans founder is perhaps best paraphrased as: Yes, the North Atlantic economies will likely experience challenging economic times. But, the G7 is emphatically not the “global” economy; in fact, it will contribute less than 29% of global output in the next five years. So while difficult days could lie in wait, the world will not end, as our friend Dent insinuates. 
The key take-away is that Australia is well-positioned to navigate any future turbulence given that most of our major commercial linkages are with those parts of the globe that represent the new world. 
At this stage, Bouris temporarily digresses to critique the RBA. He thinks interest rates are being held too high by the RBA’s obsessive inflation focus, which, it must be said, is scorn that has attracted added weight in recent months. After initially reporting two scorchingly high headline and core inflation prints, the ABS has unusually revised down the underlying numbers to much more benign levels. Recent changes to the ABS’s weighting methodology also cast a more favourable light on the current inflation pulse. It would appear that the RBA is reluctantly moving towards this Boursisian view of the world, with its media proxies canvassing a once-off Melbourne Cup Day cut in the last couple of days. 
While Bouris disagrees with Dent on the outlook for the Australian economy, he is more sympathetic to his portfolio construction preferences. In particular, he agrees with Dent that the emergence of people in the “baby boomer” demographic, which were in the “accumulation” phase of their life-cycles during the 1980s, 1990s and 2000s, drove demand for higher-returning (and higher-risk) investments like shares and real estate. 
This effect was redoubled, Bouris notes, by the introduction of superannuation in 1992, which directed the vast bulk of household savings into volatile shares. As the baby boomers transition into retirement and start to “de-accumulate”, the demand for higher-growth assets will dissipate, which is a negative for equity returns. The main beneficiaries of this demographic dynamic will be those asset-classes that offer certainty and security; namely, cash and fixed-income. 
At this juncture, however, the back-slapping ends. Whereas Dent maintains a very pessimistic position on shares and real estate care of his prediction that the “great crash” is coming, Bouris’s views are founded on a more nuanced evaluation of risk. 
Using 30 years worth of data, he shows that the total returns to 10-year Australian government bonds have outperformed both global equities and ASX-listed property trusts (LPTs). On a risk-adjusted basis, government bonds and cash (i.e., bank bills) leave Aussie shares, global shares and LPTs for dead (refer to the Sharpe Ratios, which divide the investment returns – less the risk-free rate – by the volatility, in the table below).
 
<img src="/images/stories/oct195.gif">
The story here is simply that cash and fixed-income have an important – not exclusive – role to play in properly diversified investment portfolios. 
 
<hr class="system-pagebreak">
 
Bouris backs this up with much more sophisticated “portfolio optimisation” analysis across the major asset-classes over the last three decades (see next chart). He explains that if one were to “target” an expected nominal return of, say, 10% per annum (or inflation plus 4% to 5%), most of your money should have been invested in cash and fixed-income, with only a relatively small 10% to 20% weight to Aussie shares. Click to enlarge
 
<a href="/images/stories/oct196.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct196thumb.gif"></a>
Interestingly, in these optimisations global shares and LPTs don’t attract any capital at all because of their ultra-high correlations (or “beta”) with domestic shares, which means that allocating across all three assets just parlays up your risk with no performance benefits (since global shares and LPTs yield inferior returns). 
Regular readers will know that I have made similar comments in this column over the years, and Bouris echoes my censure of Australian pension fund portfolios harnessing the latest OECD data. The OECD’s analysis demonstrates that Australian super funds have among the highest exposures to risky equities of any pension system in the world, which has propagated comparatively poor returns. 
The final clash in the Bouris-Dent conflict takes place over the familiarly emotive territory of Australian house prices. In remarks on David Koch’s Sunrise program, Dent begged viewers to sell their homes before the 50% crash in prices arrived at their doorsteps. Dent’s argument appeared based solely on the claim that Australian dwelling values were “9.5 times family incomes”, and should, in his view, be about “half” this level. 
As with many spruikers in search of a headline, Dent’s claim is incorrect. And Bouris was more than happy to set him straight. He starts by noting that while Australian interest rates are among the highest in the OECD, Australia’s mortgage default rates are a fraction of most peers. In particular, the latest RBA data finds that only 0.8% of the circa 4 to 5 million households with a mortgage are behind on their repayments. This is around one-tenth and one-quarter of US and UK ratios, respectively. 
He then contrasts the long-term rise in the cost of Australian housing with house prices in a nation that has endured a sharp correction: the United Kingdom. During the GFC, UK house prices fell by 14% peak-to-trough, while the unemployment rate has soared to over 9%. 
Despite the partial collapse of the UK banking system, extreme credit rationing and default rates multiples Australian levels, Bouris’s analysis shows that long-term house price growth in the two countries has been indistinguishable. It was, in fact, UK house prices that substantially overshot their Australian siblings in the five years before the GFC hit. And it has only been the recent crash that has brought them back in line Australian prices indexed since 1993. 
Bouris extends this insight to a range of other countries again using RBA data. This confirms that the run-up in Aussie house prices in the period 2003 to 2007 was actually substantially less than that experienced in the US, UK, Spain, Ireland and France (see first chart below). Indeed, if there was any “bubble”, it would appear to be found in Australian commercial real estate (refer to the left-hand-side panel in this same chart), which has produced much stronger price appreciation than equivalent assets overseas. Click to enlarge
 
<a href="/images/stories/oct197.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct197thumb.gif"></a>
<a href="/images/stories/oct197.gif" title="Click to enlarge" rel="shadowbox"></a>As the final chapter in the housing debate, Bouris directly attacks Dent’s proposition that Australian house prices are 9.5 times family incomes. He presents a chart released by the RBA in the latest Financial Stability Review (see below),  which shows that their estimate of the correct house price-to-income ratio is, in fact, around four or five times (or, ironically, half Dent’s claims). With this information in hand, Bouris opines that “Australian house prices are not going to fall 50%, and your home should remain a solid, tax-effective store of wealth over the long-term.”
<a href="/images/stories/oct198.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct198thumb.gif"></a>
As you can tell, I find the Yellow Brick Road chairman’s view of the world more persuasive than Dent’s. Bouris left his listeners with a final thought, which I think is worth quoting in full: 
“I believe we do indeed live in the ‘lucky country’, but the RBA cannot afford to roll the dice with our destinies in the name of pursuing some statistical abstraction. We are incredibly fortunate to be endowed with rich natural resources, and to be highly leveraged to that part of the world that is growing rapidly – the developing countries – rather than the old world that is stagnating. Having said that, it makes sense to prudently diversify your wealth to protect against adverse outcomes, and, subject to your risk preferences, you should have part of your portfolio invested in safer income-generating assets like cash and fixed-income.”
 
Harry Dent and Mark Bouris appeared at three-day Brisbane conference “Secure the Future”.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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