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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Hopes the Australian economy might be snapping out of its funk have been boosted by the better-than-expected National Australia Bank business survey for September, which shows conditions and confidence shrugging off months of weakness.

"While overall conditions remained fairly soft in September, the pickup in activity implies a shift in momentum towards a more expansionary economy, compared to an economy that had previously appeared to be losing traction," the bank says.
NAB attributes the lift in business confidence, particularly in manufacturing, to the sharp fall in the Australian dollar and speculation of a rate cut or two, but says the survey also highlights a "structural" shift towards "mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
It adds the survey "signal[s] caution about the likelihood of monetary policy being loosened in the near term, although the odds of a rate cut are clearly highly following the slowing in global growth and financial market volatility."
The bank says while near-term activity remains soft, it expects a "medium-term rebound in the Australian economy", with gross domestic product growth of 1.9% this year, and 4.1% in 2012, with core inflation at 2.5% over next year 12 months.
"As such, we expect the RBA will need to lift rates by late 2012. However, in the near term, the RBA is more dovish and there is now a 50/50 chance of a reduction in the cash rate in coming months if inflation remains subdued and domestic demand and the labour market weakens further."
NAB says the survey, released this morning, shows that the "variation in business conditions across sectors has become increasingly pronounced since late 2009." It says this divergence "indicates that the Australian economy is undergoing a structural transformation towards mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
Business conditions improved in all industries except personal and recreational services, which remained at strong levels.
While manufacturing conditions lifted over the month, that sector – alongside construction, retail and wholesale – remain at "depressed levels," the bank says. "
Business conditions lifted 5 points, from -3 to +2 index points, after two months of declines but remain lower than the long-term average. Meanwhile, trading conditions lifted 8 points to +5, profitability edged up 4 points to -2, and employment rose 3 points to +3.
Business confidence lifted 7 point to -2 – a result dubbed a "much better outcome than what could have been envisaged given the heightened uncertainty and volatility enveloping the global economy at present."
The largest pick up in confidence was in manufacturing, followed by finance/ property/ business, transport &amp; utilities and retail. The weakest confidence levels were recorded in wholesale (-13) followed by construction (-9).
The survey also showed that labour costs eased, after two months of solid gains.
The survey follows the release of ANZ jobs data yesterday, which showed the number of job ads published during September fell for a third consecutive month.
This article originally appeared on<a href="https://www.smartcompany.com.au/economy/20111011-business-survey-suggests-economy-might-be-stabilising-signal-caution-at-likelihood-of-rate-cut-nab" target="_blank"> SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Business survey suggests economy might be stabilising, signal caution at likelihood of rate cut: NAB 

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Another month, another set of ugly collapse figures – the number of corporate insolvencies reached their second-highest level in August since records started in the late 1980s, according to the Australian Securities and Investments Commission.

The new figures show that 1,049 companies entered external administration in August 2011, up 14% from 921 in July, and 20% higher from 870 in August 2010.
The numbers, released last week, also show there were 1,531 insolvency appointments in August – an increase from 1,248 in July, and 1,289 in August 2010.
Cliff Sanderson, of company liquidator Dissolve, says the August monthly figures mean there have been six monthly highs so far in 2011 – and the Australian Taxation Office is largely behind the increase.
"At the basis of a lot of them is the ATO," Sanderson says.
"While the petitions they lodge in court are up a bit but not a lot, the ATO's actions cause a lot of directors to move. And as they would – they're often the last to get paid."
Sanderson says while ASIC doesn't break the numbers down into sectors, Dissolve is seeing lots of activity from small retailers and tradies such as builders and plumbers who have about five to 10 employees.
He says while calls to Dissolve in September were lower than in August, the insolvency records won't stop unless the ATO decides to soften its stance against struggling companies.
"I predict moderate further increase throughout the rest of year, but this is largely dependent on the ATO," Sanderson says.
"The ATO put away their pen a few years ago and if they get the same instruction, the numbers will turn around, but it's a fake turnaround."
"If the ATO continues to plough through its backlog, the numbers will increase."
State-by-state, Sanderson says Tasmania and Western Australia are "looking bad," collapses in New South Wales have reached a plateau, Victoria is up a bit, and calls from Queensland are on the up.
"Based on indicators over the last couple of months, the effects of the floods are starting to come through," Sanderson says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111010-insolvencies-hit-second-highest-level-in-history-in-august">SmartCompany</a>.
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Insolvencies hit second-highest level in history in August

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Price growth of 20% is forecast for Perth and price growth of 19% is forecast for Sydney by 2014, according to the QBE Lenders’ Mortgage Insurance housing outlook report researched by BIS Shrapnel.
In Perth the forecast reflects the stronger economic conditions driven by accelerated investment in the mining and resource sector, and in Sydney the forecast is a result of the growing deficiency in household dwelling supply.
Overall house prices in Perth are estimated to rise by a cumulative total of 20% over the forecast period – the highest among all capital cities – to $565,000 as at June 2014.
This reflects price growth of around 6% per annum, which is similar to the expectation of household income growth over the three years to 2013-14, and equates to an 8.8% total rise in real terms.
The Sydney median house price is forecast to lift by a total of 19% to $770,000 over the three years to June 2014, a total rise of 8.1% in real terms, according to 2011-14 report released today.
In Sydney, owner-occupier and investor demand is forecast to rise in 2012, underpinned by the rising dwelling deficiency and strengthening economic conditions, leading to higher price growth and dwelling construction.
The report shows that although the median house value rose to $644,700 in June 2011, real house prices in today’s dollar terms remain below their median house price peak of $707,000 in the March 2004 quarter.
The underlying strength of the Australian economy and the continuing shortage of residential housing in Australia, together with stable interest rates, is expected to support Australian housing prices, according to the QBE LMI housing outlook report.
Ian Graham, chief executive of QBE Lenders’ Mortgage Insurance Limited (QBE LMI), says despite the current volatility in the global economy, QBE LMI is cautiously optimistic about the outlook for the Australian housing market.
But Melbourne in the three years to June 2014 is forecast to have the lowest price growth of 6%, due to record levels of new dwelling supply eroding the current dwelling deficiency.
More moderate house price increases between 6% and 8% are expected in Adelaide, Hobart and Canberra.
There is solid price growth of 16% tipped for Brisbane and 17% in Darwin.
First-home buyer demand, which has suffered recently, is forecast to enter a recovery phase through 2012 as the economic outlook becomes more positive and in the anticipation of first-home buyer confidence strengthening as housing becomes more affordable. Investor demand is expected to recover over 2011-12, in line with first-home buyer demand, and support prices at the entry-level end of the market.
The current stability in interest rates is expected to continue well into 2012. There is now a possibility that the Reserve Bank of Australia could cut interest rates in late 2011 to kick-start a recovery in consumer confidence and spending, thereby initiating the next phase of demand, the recovery in the economy and housing market.
Graham notes that Australia is well placed to deal with any uncertainty that our economy or housing market faces in the next few years.
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jchancellor-FAypfDUnLy

Housing prices to increase by about 20% in Perth and Sydney by 2014: QBE LMI report

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Today I am going to drill into two key measures of real-time housing market activity: vendor discounting and average time on market. But before I do, I want to take stock of the all-important “rate debate”, which is so crucial to divining our housing destiny. 
Rismark’s bearish view on 2011 house prices (juxtaposed against a bullish position on rents), which we began outlining in September 2010, was predicated most importantly on our belief that rates would rise several times in the year ahead, which, we argued, would lead to “downward pressure on dwelling prices”. 
In November last year we got two hikes (care of the bank “top ups”), and, as I have explained too many times to count, we <a href="https://www.propertyobserver.com.au/economy/we-have-had-more-than-three-rate-cuts-without-the-rba-lifting-a-finger-christopher-joye/2011100351778">arguably received a brace of further “virtual hikes”</a> in 2011 via the impact of RBA “jawboning” on the spectre of rate increases. In particular, all the survey data suggests households have been budgeting on two to three additional hikes, which has helped crush consumer confidence.
As I have noted here before, the financial markets are pricing in a steep reduction in the RBA’s official cash rate over the coming year. These are the same folks who at various times have given us prices that implied rate cuts in 2010 (they rose), rate cuts earlier this year (they stayed on hold), and, at one juncture, a 100% probability of two rate cuts in October (no change). Suffice it to say, the financial markets have been relentlessly wrong. But then, as the RBA and I have gone to some lengths to <a href="https://www.businessspectator.com.au/bs.nsf/Article/reserve-bank-interest-rates-Christopher-Joye-bond--pd20110922-LX7AE?OpenDocument&amp;emcontent_spectators">explain</a>, the interest rate changes implied by financial market prices can be quite misleading. 
Notwithstanding a bounce back in global sentiment in recent days (bet you did not read about the positive US jobs report on Friday night that trounced analyst expectations?), a number of the RBA’s main media proxies have sung a decidedly dovish – i.e., rates heading lower – tune of late. This was presumably prompted by both private prodding and by the fact the RBA has, for the first time in a long time, explicitly countenanced “easing” policy should demand require it. One especially worded-up journo, who implied that he had access to the otherwise highly confidential discussions that take place at the RBA’s board level, claimed that the bank almost cut the cash rate in October but was prevented from doing so by the looming third-quarter inflation data. 
The RBA has invested an enormous amount of capital in its story around the positive income shock wrought by the structural increase in demand for Australian exports from developing Asian countries, which, it believes, will generate long-term inflationary pressures and the need for higher interest rates. It has given scores of speeches and parliamentary testimonies, and published vast volumes of research, in support of this specific thesis. It desperately needs some cover if it is to temporarily abandon it. One partial canopy has been supplied via the modest rise in the domestic unemployment rate to a still-low 5.3%. Yet as a purportedly “inflation-targeting” central bank, the RBA would ideally like the inflation data to also fall in line. 
For what it is worth, I employ the “inflation-targeting” label hesitantly since it is no longer clear whether the RBA has the political fortitude to respond to its forecasts of high inflation – either because it simply has no faith in its own guesses (one distinct possibility) and/or because it is worried about the fallout associated with hiking without the hard inflation case to back up its decision. At this stage, the RBA looks like it will only move rates into genuinely restrictive territory after the event: that is, when it has demonstrable evidence that the inflation cat is out of the bag. 
It seems to think that the risks of getting rate hikes wrong are too great to tolerate, which helps explain why the two core measures of inflation in Australia have averaged 3.2% per annum since 2002 (I only select June 2002 to put some distance between that date and the GST in July 2000). That is, the RBA likely has a policy bias to overshoot its target 2 % to 3% per annum band. 
Many once-hawkish economists have jumped on the burgeoning rate cut bandwagon, which was first kicked off by a now-famous reversal in the views of Westpac’s experienced chief economist, Bill Evans. Evans, who, to his credit, has held dovish dispositions for quite some time now, was reportedly pushed over the edge by a disturbing trip to Europe and North America. Following these meetings, Evans swung from projecting hikes to four cuts, commencing in December. 
After the high second-quarter inflation numbers – which were subsequently revised down – Evans looked like he had spent too much time in the European sun. But with the advent of the US debt ceiling crisis, ever-worsening European sovereign debt problems that threaten the fabric of the entire Euro zone, IMF downgrades to its global growth forecasts, and weakening local employment growth, Evans has quite rightly become the genius de jour. And all power to him: he deserves considerable kudos for making what was, at the time, a rather brave call. 
The only thing we know with certainty is that nobody, including the RBA, really has much of an idea what is actually going to happen on the first Tuesday of November. Some are paid to guess (economists), others are willing to punt (investors), and some like me get to bite their tongues until they obtain better information. 
And it is fair to say monetary policy rests on yet another knife edge, as it has done for much of 2011. If we get another upward movement in the unemployment rate combined with a, say, circa  2% (annualised) or less core inflation outcome, it seems that the RBA is set to abandon its February and August forecasts and undertake a major policy turn. Absent a meltdown overseas, and subject to the impact of bank funding costs on the latter’s “ability” to pass through one-for-one changes in the RBA’s cash rate, the first cut, if it comes, is likely to be 25 basis points. 
In a low third-quarter-inflation scenario, the RBA’s goal, one assumes, will be to put monetary policy back on a more balanced, or “neutral” footing, until it gets more dependable data on the local and global outlook. This implies a modest easing of policy in the form of one to two cash rate cuts. 
As most of the circa 5 million households with mortgages are on fully variable rate loans that can adjust with changes to the RBA’s cash rate, the influence of this decision on Australia’s listless housing market should be immediate. While we have yet to see any discernible improvement in housing atmospherics outside of <city><place>Sydney</place></city>, there are some partial data, such as the housing finance flows, which insinuate that it may be starting to “base”. 
The most important change is already taking place. This relates to the expectations of households regarding the future course of rates. Just as all the talk of rate hikes earlier in the year acted as de facto increases, tamping consumer and housing demand, so the unravelling of this sentiment will almost certainly have the opposite effect. 
The more thorny monetary policy question is what happens if core inflation prints in the third quarter at the top, or, heaven forbid, above the RBA’s 2% 3% target range? In quarterly terms, if the RBA’s two preferred measures of underlying inflation come out at around 0.7% or higher, the central bank will be placed in yet another bind. 
It will no longer have the inflation cover it was seeking: that is, evidence that price pressures are benign, and could be projected to remain around “two point something”. A bad third-quarter release will be all the more surprising given the ABS is adopting a new weighting system that many argue will help eliminate an upward bias, and a more comprehensive seasonal-adjustment method that reduces the risk of seasonally high (or low!) price changes giving us a bum-steer.
<hr class="system-pagebreak">
 Similar levels of complexity characterise current housing dynamics. Today I want to touch on two variables that RP Data and Rismark track closely: “vendor discounting”, which measures the amount by which owners have to reduce their list prices in order to secure a sale; and “time on market”, which, as the name implies, simply tells us how long homes remain available for sale before they are sold. The first chart below quantifies the vendor discount over time for Sydney, Melbourne and Brisbane houses. And the story is an interesting one. Whereas owners of dwellings in <place><city>Brisbane</city></place> are having, on average, to drop their list prices by nearly 9% before triggering a sale, the average Sydneysiders’ discount is a considerably lower 6.5%. In comparison to Brisbane, the Melbourne market also looks healthy, with the three-month moving average discount currently sitting at 7.2%. Click to enlarge
 <a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeoct111.gif"><img src="/images/stories/joyeoct111thumb.gif"></a>
As the chart above highlights, discounting is pro-cyclical, and the germane benchmark is obviously the 2008 crisis. Recall that during this episode the RBA had its cash rate slashed by a stunning 300 basis points by December 2008, whereas rates have been held at above-average levels throughout 2011. 
Drilling into the detail further, the Brisbane and Melbourne discounts look like mirror images of their 2008 forebears. In fact, conditions in <city><place>Brisbane</place></city> appear a tad worse, which may be explained by the impact of the floods. While it is similarly difficult to distinguish between the discounting in <city>Melbourne</city> in circa 2008 and 2011, today’s correction should be contextualised against the 29% capital growth realised by <city><place>Melbourne</place></city> homes over 2009-10. 
It is <country-region>Australia</country-region>’s largest city, <city><place>Sydney</place></city>, that seems the stand-out. At the depths of the GFC, Sydneysiders were compelled to cut the value of their homes by 8% to crystallise buy-side interest. Today the discount is 15% to 20% less, and has not increased – or decreased, depending on which way you look at it – nearly as much as its Melbourne or Brisbane equivalents. 
This accords with the story told by RP Data-Rismark’s hedonic indices: while <city><place>Sydney</place></city> homes have actually increased in value over the last 12 months, Melbourne and Brisbane dwelling values are down by 4.3% and 6.1%, respectively.  In the year to date, the Melbourne downdraft has been more noticeable, with values off 6% from their highs. 
The vendor discounting narrative is reinforced by our time on market data (see next chart below). Once again, we find historically very poor conditions prevailing in the <city><place>Brisbane</place></city> market, which look as bad as those that emerged during the GFC. Today the typical home takes about 58 days to sell. The Melbourne market also looks to be enduring a repeat of the 2008 experience, with the average time between listing and sale estimated to be around 50 days. It is <city><place>Sydney</place></city> homes that have again bucked the trend, with the time on market of 49 days well down on the 60 days recorded at the 2008 peak. Click to enlarge
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeoct112.gif"><img src="/images/stories/joyeoct112thumb.gif"></a>
These housing dynamics are important to the RBA. At the limit, it will be cognisant of the risks to bank balance sheets; more specifically, a deterioration in collateral values increasing the probability of a transmission of the North Atlantic contagion. If the stability of the overall financial system is in any way threatened, the RBA will not hesitate to act by reducing rates and ramping up the liquidity it provides deposit-taking institutions via its “repo” facilities. Think 2008 redux. 
This time around, however, Australian banks have far more secure funding lines in place (i.e., with more finance sourced from domestic depositors as opposed to fickle wholesale creditors), and know that the Commonwealth is prepared to use its unblemished AAA credit-rating, if required, to act as a guarantor (or lender) of last resort.
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Rates on a knife edge as discounting and time on market increase

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As we look back on 2011, Property Observer is republishing some of our most noteworthy stories of the year.
 
Renovators are at risk of losing hundreds of thousands of dollars because reality home improvement TV shows don’t reveal their full costs, according to Sydney buyers’ agent Patrick Bright.
“Reality home improvement programs like the last series of The Block and the current series of The Renovators were giving viewers a false perception of the costs involved to renovate property,” Bright says.
With three months of renovations, The Renovators claimed to be the most expensive ambitious home-renovation show put to air.
The ratings for The Renovators was well short of expectations, but it hasn’t stopped Bright's company, EPS Property Search, experiencing a dramatic increase in buy, renovate and sell project enquiries, with many people unaware of the true costs involved in renovating property.
“Whilst they are great entertainment, the biggest downfall from programs like The Renovators and The Block is that they don’t reveal to viewers the real cost of labour to make these improvements as well as the total costs associated with buying and selling real estate like stamp duty, legals, marketing and selling agents costs,” he says.
“The concept of buying, renovating and selling property as soon as the paint is dry can be profitable if executed correctly, however for most people is almost a guaranteed way to make a loss,” says Bright.
“In these television programs contestants end up with regular $10,000 bonuses as well as big prizes such as a $30,000 cash boost or a pool package for the property, which significantly add value to the renovation project but are not taken into consideration on the profit and loss ledger come sale time.”
“Most would-be renovators who try to copy the formula seen on TV hoping to make a quick profit will end up bitterly disappointed and lose a lot of money.”
He says the programs don’t show the hidden costs associated with renovating, which quickly add up, such as finance costs, holding costs and council fees.
Bright also says both shows highlight that renovating and making a profit is not easy to do, even with significant resources and support.
The shows  highlights the importance of sticking to an appropriate budget based on purchase price and end value so you can make a profit, he says.
The shift to more at-home entertaining and creating stylish rooms in existing homes - rather than upgrading to a new, more expensive home – has been noticed by TAFE colleges, which have witnessed a surge in interior decoration and design courses.
Bright's comments coincide with figures released by the Housing Industry of Australia that show that the total renovation investment nationally surged in the first half of 2011 and is forecast to reach close to record levels in the next two years.
The HIA data shows renovations activity is growing, with the total investment in renovations increasing in both the March and June quarters of 2011, driven by both small and large renovation jobs.
“The high transaction costs involved in moving home was the main factor driving households to invest in their existing property,” says HIA chief economist Dr Harley Dale.
“Total renovations investment is forecast to grow by 2.3%  to $31.6 billion in 2011-12 and to increase by a further 4.6%  to $33 billion in 2012-13, which would be approaching a record high,” Dale adds.
Bright, whose buyers’ agency project manages property renovations for clients, says once a property has been renovated there is a choice for owners to sell the property or turn it into a higher-yielding investment property and take advantage of the manufactured capital growth. His latest book, The Insider’s Guide to Renovating for Profit, is due out later this year.
The auction finale of The Renovators will go to air Wednesday night.
There have been reports that <a target="_blank" href="https://www.propertyobserver.com.au/auctions/entertainment-the-winner-in-the-renovators-as-some-of-the-six-struggle/2011093051757">many of the houses failed to sell in excess of their purchase and renovation costs</a>.
Meanwhile the NSW state government is set to unveil reforms to the Home Building Act, with key changes including raising the threshold for written contracts from $1,000 to $5,000 and  raising the home warranty insurance threshold from $12,000 to $20,000.
Fair Trading Minister Anthony Roberts says the amendments will "pump some adrenalin in the industry".
"We want to remove the dead hand of government off as many small tradespeople and builders as possible," he says.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a>
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The Renovators gives would-be fixer-uppers false profit hope: Buyers' agent

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The newly completed Dexus Property-built oval-shaped building at 1 Bligh Street has been valued at $629 million.
The flagship development was completed in July 2011 and was officially opened in August 2011 by Australian Prime Minister Julia Gillard.
The $629 million tower has been built to be the first high-rise office to win a six-star rating from the Australian Green Building Council.
The Bligh Street office tower has been to have asking rents for the top floors of about $1,100 to $1300, plus outgoings, according to a recent Australian Financial Review article.
Leasing agents are continuing to negotiate tenants for vacant floors, <a href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191" target="_blank">with the Commonwealth government yet to be confirmed as having struck any leasing deal</a>.
Some 51% of the office space is available, according to the latest ASX filing
The architects, Australian practice Architectus and German firm Ingenhoven Architects, came together for the design competition in 2006.
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Sydney's 1 Bligh Street valued at $629 million

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<img src="/images/stories/doublebay2.jpg">
The eight apartments in the Montre, Double Bay complex have been listed for sale – in a second shot at securing sales in the boutique complex.
Set on the Bay Street boulevard, it envisages bettering the earlier but recent crop of luxury apartment developments in the upmarket Sydney village, such as The Chancellor and The Gallery.
Its Colliers International marketing team expect the apartments to appeal to buyers who are making their first move from a large house and garden.
<img src="/images/stories/doublebay3.jpg">
Prices of the two-bedroom apartments with study – ranging in size from 173 square metres to 179 square metres internally plus courtyards/terraces of 44 square metres – start from $3.25 million. There are just the three.
Its three-bedroom apartments with study (from 209 square metres to 219 square metres internally plus terraces start at $3.95 million. There are also just the three.
Its two penthouses with study (240 square metres internally plus terraces/courtyards of 173 square metres) are priced from $5.65 million.
“Montre is our benchmark development,” says Nico Wijarto Tjen, a director of Oceania Property. The group which is known for Bell Aire at Bellevue Hill, Arc at Waterloo, Alura at Cremorne, Huntley Park at Hunters Hill and several prestige individual homes.
“What we are offering is grand, easy-care apartments for those who appreciate the finer things in life.”
He says the architecture, by Kann Finch, combines classic stonework and Juliet balconies with geometric facades of burnished steel and glass, topped with a mansard roof.
“Overall, the look is reminiscent of a European building, blending fashionable shops at street level with discreet apartments above,” Wijarto Tjen says.
“In Europe, apartment living isn't a temporary phase in life.
“People are born and die in apartments, so they're spacious, elegant and comfortable – real homes, not like some of the box-like units built in Sydney.
“The apartments at Montre have at least as much space as a three-bedroom house, but are in a one-off location and come with the highest-quality fixtures, fittings and features.”
The marketing is the second attempt for the development site, as in 2009 registrations of interest were being sought through Colliers by the developer, Thaung Investments.
Oceania has moved promptly to marketing, having paid $20.5 million in January 2011, with the site having previously traded at $15 million in 2007.
“The apartments are more like the graceful residences of old,” says Murray Wood, Colliers director of project marketing.
“They have style, substance, an abundance of storage, and interiors that flow onto large practical terraces.”
“We expect most buyers will be empty-nesters from the eastern suburbs and possibly the upper north shore, but we also anticipate some interest from expats and international jet-setters.
“We know there is pent-up demand because the last apartments of such quality in Double Bay were completed 18 months ago at The Stamford Cosmopolitan,” Wood says.
The Double Bay village is hosting an inaugural European Festival on Sunday, November 6, with visitors able to indulge in European cuisine at local restaurants and cafes, wander through the shops and explore unique European treasures at pop-up stalls.
For advice on buying off the plan download our free e-book.
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Boutique Double Bay block takes a second shot at raising the luxury stakes

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A review of some market indicators over the past 10 years shows that a lot has changed in the past decade.
In the June quarter this year the median Melbourne house price was $590,000, which is 103% higher than the $291,000 recorded in the June quarter 2001.
A decade ago the stamp duty payable was $13,120, which is 132%than the $30,470 that was payable on the median house if purchased in the June quarter this year. Unlike a decade ago, first-home buyers can now benefit from a 20% reduction on this bill for most homes.
However, the first-home owner’s grant was valued at $7,000 in 2001 and is still valued at $7,000.
According to the Australian Bureau of Statistics, the average home loan to a non-first-home buyer was $291,200 in June this year, 99% more than the $146,500 recorded in June 2001.
The median price of a house in Toorak was $2,175,000 in the June quarter this year, 105% higher than the $1,062,500 in the June quarter a decade ago.
In more affordable Broadmeadows the median was $370,500 in this year’s June quarter, a substantial 219% higher than the $116,000 in the June quarter 2001. This is indicative of a trend that the more affordable suburbs have increased in value more rapidly.
And finally, in the City of Ballarat the median house price has increased by 122% from $130,000 a decade ago to $288,500 in the most recent June quarter.
Enzo Raimondo is the CEO of the<a href="https://www.reiv.com.au/" title="REIV" target="_blank"> Real Estate Institute of Victori</a><a target="_blank" title="REIV" href="https://www.reiv.com.au">a.</a>
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enzoraimond-7fvRFHPR52

House prices (and stamp duty) more than double in past decade

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Deteriorating global credit markets are feared to have an adverse impact on earnings in the Australian real estate investment trust sector, according to research from Goldman Sachs and Morgan Stanley.
The listed property trust sector took a hit immediately after research was released yesterday, given concerns especially surrounding the debt due for refinancing within the current financial year.
The ASX 200 Property index closed down 2.1% against a 0.92% rise in the general market on Monday, October 10.
Close to $7 billion, or about 12% of the sector, is due for refinancing, of which about $4.2 billion is due before June 30, 2012.
A further $2.8 billion is drawn down but also to be refinanced this financial year.
Goldman Sachs property analysts warned there was a significant amount of listed corporate debt due for maturity in 2012, including: Westfield Retail Trust ($1.3 billion), Mirvac ($581 million), Dexus ($464 million) and Goodman Group ($406 million).
Since the initial media reports of the research Mirvac Group has advised the share market it had a strong capital position, with current funding headroom of greater than $600 million.
Mirvac managing director Nick Collishaw says Mirvac’s balance sheet remains in a robust position.
The company notes the report of the $581 million of corporate debt due for maturity in 2012 but stresses $505 million relates to a bond facility for which Mirvac has cash set aside sufficient to repay 100% of the facility; and $47.5 million relates to a bank debt that Mirvac repaid after June 30, 2011 from available cash.
“Our treasury team has worked hard to ensure that Mirvac's capital needs are able to be met by our existing facilities and cash flow.
“We believe that this activity is likely to significantly reduce the impact for Mirvac of any uncertainty that might be created by disruption in overseas financial markets,” Nick Collishaw advised the ASX.
Goldman Sachs executive director for real estate investment research Simon Wheatley suggests the debt crisis in Europe could force local companies to confront alternatives to refinancing their debt, according to a report by SMH commercial property editor Carolyn Cummins.
Most analysts say many REIT balance sheets are in better shape than they were during the last recapitalisation wave of 2008-09, but any debt concerns were unhelpful.
Two years ago REITs secured close to $14 billion from investors to boost balance sheets collapsing under high debts and falling asset values.
Morgan Stanley research notes global uncertainty is putting pressure on credit markets, resulting in an increase in collateralised debt security spreads for the sector.
''All, of course, will however depend on the macro environment, and if we do see the European sovereign crisis worsen, this will put pressure on the sector,'' the analysts say.
The A-REIT market closed Tuesday at 774, which was down 0.58% on the day.
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A-REITs take a hit due to debt fears

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An article in Melbourne’s Herald Sun this weekend (October 9, 2011) highlighted how it’s just as possible to lose money through unwise investment in the real estate market as it is with any other financial acquisition.  Residex sifted through 268,000 sales transactions to conclude that over the past three years 5,427 vendors have sold property for less than they paid (not taking into account stamp duty and transaction costs). 
To put this into perspective that’s a little over 2%, with the main losses occurring in areas that either have a surplus of high-rise developments – for example, Docklands and Southbank in Melbourne’s CBD – or in areas that suffer accentuated volatility during the property cycle such as those with $1 million-plus price tags such as the bayside suburb of Brighton, with a median house price of $1.79 million. Furthermore, the losses were incurred over a three-year period, which in real estate terms is too short to make any substantial profit even in the best of times.  However, even taking this into account, for many still hoping to get a foothold into their area of choice, life isn’t getting any easier or property prices any lower.
One sector of the market particularly feeling the strain is young families wanting to enrol their children in reputable inner-city schools.  Melbourne’s population is estimated to reach 5.6 million by 2026.  It’s growing faster than any other Australian metropolis, and while a bulk of the population is being squeezed into newer suburban regional areas such as Warrandyte and Werribee, it’s only a result of increasing density in the inner- and middle-ring suburbs with facilities unable to cope with the growing demand.  
While the state government has been busy planning large developments of high-density housing on disused industrial land such as Fisherman’s Bend in West Melbourne – an area expected to provide accommodation for an extra 12,000 residents – little planning or finance has been dedicated to adequately facilitating existing public schools or building new establishments to cope with the extra surge in enrolments.  Furthermore, the squeeze is putting pressure on an already limited supply of residential family accommodation for middle-income families wanting to give their children the best education Melbourne has on offer.
This is why there is a very strong connection between Melbourne’s top public schools and the prices of residential property.  If you analyse the statistics, being in a school zone for one of the top 20 or so government schools in Melbourne can increase the price of properties in the area an average of 10 to 15% – and the smaller the zone, the greater the pain.
For example, Melbourne’s McKinnon Secondary School zone only covers an area of around four kilometres – however, it spreads over four suburbs (McKinnon, Bentleigh, Bentleigh East and Ormond). There can be a big difference in the price of a house on one side of the street in the zone and the other side of the street outside the zone, even though they may be located in the same suburb. We’re talking differences of $100,000 or more on a house in Bentleigh East for example - which has a median price currently recorded at $732,500.  Even within such a small area, the number of enrolments being submitted to the school each year is often so high there is always talk of the zone reducing in size, which obviously worries anyone who is purchasing property near the zoning boundaries – take away the zone, and you can potentially wipe that $100,000 off the price tag.
As a consequence, the homes closer to the school (easy commutable distance –within two kilometres) will sell for higher prices and potentially generate a greater appreciation in price than those located on the edges.  Even in soft markets such as we’re experiencing at the moment, demand in the school zones remains robust. The average clearance rate in Melbourne is currently 58%, however in the areas surrounding McKinnon high school it’s sitting at approximately 70% and so tightly held is the location, there have been fewer than 50 house sales recorded by the REIV over the past 12-month period.
Investors add to the demand in school zones because not only is capital growth generally higher, so too is yield from families who have been forced to rent due to high property prices or not finding a suitable property in time for enrolment.  Neither is it unheard of for an old property located in a popular school zone to be rented by a family never intending to move in, but simply using the address to meet the criteria for enrolment into year 7. However, it’s important for investors to understand they will only reap the benefits of a school zone if purchasing a property that suits the major home buyer demographic in the area.
Purchasing a “set and forget” two-bedroom unit obviously won’t attract the same intensity of demand and will therefore only produce comparable returns for the general suburb rather than the school zone.  Developers aren’t missing out either – land sizes are shrinking as full blocks are being sliced in half to accommodate high-spec townhouses often selling for double the price of the initial land value – and to further accentuate the point, according to the latest valuer general data, over the past five years, houses in the McKinnon school zone have recorded an average annual growth rate of 12.62%.
It’s another symptom of poor planning for a growing population, which is unduly inflating property prices of desirable inner-city residential real estate.  For example, six years of secondary education at Melbourne Grammar School is currently around $139,920.  When you take into account stamp duty and transaction costs, plus the time and effort it takes to find a house appropriate for a growing family, you can easily pay more to get a foothold into a popular school zone. Therefore, even though we’re seeing price falls in some areas of the state, we’re still facing challenging problems adequately accommodating an increasing population looking to settle into the world’s most liveable city – and this will only result in increasing prices over the long term.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">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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