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.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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

<html><body>
Smaller lenders are making up ground on the major banks when it comes to meeting the needs of first-home buyers, according to AFG’s September Mortgage Index. 
On the back of a healthy 12.8% jump in mortgage sales for the month, non-major lenders accounted for 29.3% of mortgages sold to first-home buyers, up from 22.3%  in August. 
Non-major products were also more popular with those seeking to refinance and even investors, who are traditionally the least likely to switch from the Big Four, AFG sales figures revealed. 
Chris Slater, AFG's NSW/ACT state manager, tells Property Observer there has been pretty aggressive price in the market place across the board.
“The second tier is right up there at the forefront. They are aggressively chasing market share. They are back in the game in a big way,” he says.
Slater says the likes of Citibank, Suncorp, AMP and ING have all matched the major banks with their rate cuts of late.
Furthermore he says clients of AFG’s mortgage brokers are more receptive to the second-tier lenders, with a noticeable shift in the second quarter of the year.
According to the latest JP Morgan/Fujitsu Mortgage Industry Report there is an aversion among prime first-home buyer segments such as the “young affluent” and “young growing families” to using the branch networks of the major banks in favour of using devices such as tablets and smartphones.
 <img src="/images/stories/afgsmalllenders.gif">
The growing popularity of mortgage products outside the Big Four comes as smaller lenders rated highly in the September product ratings compiled by Canstar Cannex.
The financial products research group rated Coastline Credit Union’s Minimiser Home Loan as the third best variable rate mortgage, with ECU Australia’s Loyalty Plus Premium Variable Home Loan coming in fifth.
Out of the 24 variable loans rated “outstanding value” by Canstar Cannex, 15 are offered by non-bank lenders, including Mortgage House, Newcastle Permanent and State Custodians.
Credit Unions and building societies rated highly in the benchmark three year fixed rate category with nine of the 11 products rated “outstanding” by Canstar Cannex offered by mutuals.
Community CPS Australia’s Pinnacle +Plus Pkg Residential loan rated third best, with CUA fourth and Heritage Building Society fifth.
Canstar Cannex rated ANZ as having both the best valuable variable and three-year fixed-rate mortgages products in the market.
The major banks still continue to dominate overall mortgage sales by AFG brokers, with their brands accounting for 80.1% of the market.
AFG accounts for about one in 10 mortgages written in Australia.
</body></html>

lschlesinger-FZcF9M3vE6

Smaller lenders gaining favour with first-home buyers

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Who’d have thought – one little word, five little letters, and so much power – the power of green.  Put the word “green” into a search engine and you’ll get a bucket load of topics in return – green loans, green guides, green rebates, green grants, green energy, green cars…green, green, green.  So what does this all mean?  Is it real, or are we dealing with a whole load of spin that begets greenwashing?
There are many products on the market claiming to be green and some of those can be tested, but when it comes to property, for example, there is no real measure or standard.  This means that anyone can call their house “green”, “eco-friendly”, “sustainable”, or whatever environmental catch-word comes to mind, as we do not yet have a legal definition as to what makes a green house.  There is the six-star energy minimum that many new buildings must adhere to, but does that make a property green?  Add a water tank, a pool cover and a few solar panels – is that green?  The reality seems to be that green more often means money for those purveyors of the colour rather than savings for those who buy into it.
A widely touted study by environmental marketing company TerraChoice has found that 95% of green-marketed products use misleading claims, while only 5% of the 5,300 products examined were free from some form of greenwashing.  The number of green claims is increasing by leaps and bounds, with 73% more green-identified products on the market today than a year ago.
Unfortunately, many home buyers don’t want to pay for the privilege of buying a green dwelling.   This is especially the case for investors.  Many like the idea – either out of some misguided guilt or erroneous desire to do something good for the environment – but they think that the developer or the government should pay for their “green”.  The most optimistic studies show that the average buyer will pay up to $15,000 more for a new green dwelling, which, and here’s the rub, will pay back that premium in terms of reduced energy and water costs within two to three years of purchase.  Impossible.
And to add further salt to the wound, these buyers are prepared to pay about 2% more for a green residence, yet the true cost of all the green goodies is closer between 5% and 8%.  Another nail in the housing affordability coffin.
As Christopher Zinn, of consumer advocacy group Choice, says:  “Wherever you see the words ‘eco’ or ‘green’ or ‘natural’, you need to get out a very accurate ruler.  It could mean anything and nothing.”
For mine, it may be time to bring in some new colours in response to most “greenwash” claims – “blackball” and “redline” come to mind.  Better still, Senator Barnaby Joyce summed it up earlier this year when he quipped: “If you really want to piss someone off right now, mention climate change.”
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
</body></html>

michaelmatusik-49YzLvdmNv

Green claims making investors see red

<html><body>
As the rental market changes and the demand for properties reduces in some parts of the country, there must be consideration given to both the price and the presentation of the property. 
Price is always important for most investors, but what is sometimes overlooked is how much money an owner looses during a vacancy period when owners refuse to listen to the property manager and review (and reduce) the asking rent of the property. 
If the property is being marketed at $400 per week and has been vacant for four weeks with minimal enquiry or applications, isn’t it a smarter choice to reduce the asking rent to $380 per week.  As an owner of investment properties I know the $20 per week may feel like a loss, but isn’t it better to receive $380 per week rather than zero per week? 
The rental market changes from month to month , year to year and from suburb to suburb. So while you may have received $400 per week last year and the neighbour’s property is achieving a rent of $410 per week most owners would assume that their property MUST be worth between those two figures. 
Right? 
Well, no. 
It’s actually irrelevant what you achieved last year or what the house next door is achieving or because of CPI you believe you should receive a 5% rent increase this year.  What is important is what the market is doing today and what the market is telling you your property is worth today. 
We always want to believe our property is worth more.  However, when the market changes both the owner and property managers need to work together and change with it.  Together they must face the truth and yes it may hurt a little but again I ask you – isn’t some money better than no money? 
So what should you do? 
Here are some ideas:
<ul>
<li>Review your asking rent within 72 hours after the property is placed on the market and continue to review the asking rent at least once a week.</li>
<li>Have a minimum of five photographs as part of your marketing (and make sure they are current and correct).</li>
<li>Look at what demographic is best suited for your property and sell those features within your marketing description. </li>
<li>If you cannot inspect the property, ask your property manager to email you some current photographs.  Then you need to ask yourself what you can do to make your property stand out.</li>
<li>What improvements can you do? </li>
<li>Could the property do with a fresh coat of paint?  What about a feature wall?  How is the carpet?  Do the window coverings need updating? </li>
<li>What about the garden – when was the last time the lawns were cut or tided up? </li>
</ul>
So remember, be proactive and good luck!
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
</body></html>

leahcalnan-pwE6GD6KY9

You must meet the current rental market, or your property will sit empty

<html><body>
The following article goes through the issues an investor needs to understand when purchasing a property with debt within super.  It is important to appreciate that as a specific property is being purchased the investor must use a self-managed super fund (SMSF) and not their retail and or industry fund, as they need to have control to make this sort of specific investment. The SMSF should also have a company as trustee.
On September 24, 2007 the federal government introduced new legislation to allow superannuation funds to borrow under certain conditions.
The ATO issued additional guidelines on July 7, 2010 explaining what the borrowing arrangements apply to, including the definition of what constitutes an asset and how a loan structure needs to be set up and administered. There were a number of significant items in the July 7, 2010 guidelines, three being that (a) you had to hold the property outside of the SMSF in a holding trust with a company as trustee; (b) you could not do a renovation on a property “held” in the SMSF that was subject to a loan; and (c) you cannot replace an asset which has been destroyed, say by a natural disaster.
The July 2010 guidelines defined an asset to be a single acquirable asset (SAA). The interpretation of a SAA by the ATO significantly restricts what asset can be purchased and how it is managed. This guideline meant that a renovation (with cash or borrowed funds) was not allowable if the property was secured with debt, as the renovation changed the asset and as such, it was no longer the same asset that was originally purchased i.e., the property. This ATO position is in part the genesis of much of the industry concerns about the guidelines.
On September 14 2011 the ATO released additional draft guidelines in answer to industry concerns.  The new guidelines, among other things, now allow renovation if non-borrowed funds are used. This is a major improvement to the legislative interpretation for property investors. This means that the SMSF can do a renovation with cash resources within the fund.
The position on borrowings is now much clearer, but there are many areas that are not.  Any investors contemplating purchasing a property in super with debt needs to get specific advice, including whether the actual property being considered fits within the borrowing rules.
The super fund deed must also be reviewed to ensure it allows for borrowings, and the documentation needs to be carefully prepared so as to not inadvertently trigger double stamp duties and capital gains tax liabilities when the loan is paid off.
The borrowing must be limited recourse, which means that no other super fund asset can be used as security; the super fund member can go guarantor on the loan or give other non-super fund assets as security if required.
The SMSF can use debt to purchase any non-prohibited asset. The principle exclusion is a residential property off a member or associate of the SMSF member. The SMSF can however purchase business real property off a member.
The latest guidelines also clarify where debt can be used in relation to the property. Debt can obviously be used to acquire the property. Debt can also be used to do repairs, maintenance and to capitalise interest.
The property
Difficulties arise when looking at off-the-plan and house-and-land packages. It is allowable for the SMSF to use its cash resources to pay a deposit, and on completion of the construction borrow the remaining balance less any additional amounts from the SMSF to finalise the purchase. If land is purchased first (cash and or debt) with a second contract to build, the original asset being the land cannot be built on using debt.
Repairs and maintenance
If the property was originally acquired by the SMSF using a borrowing arrangement, additional borrowings are permitted for repairs and maintenance. However, if the property is not subject to a loan then new borrowings for repairs and maintenance are not permitted.
The draft ruling notes that an asset may be bought in a state in which a part of the asset is defective, damaged or suffering some deterioration of what would be considered to be its normal level of functional efficiency. Accordingly, the Tax Office says a restoration of that part of the asset to its functional efficiency would be a repair (and not an improvement) for limited recourse borrowing purposes.
Renovations
Investors looking at buying a "renovator's dream" need to be cautious, as the ATO states that a substantial renovation of a rundown property would improve the functional efficiency of the asset as well as substantially improving its value and therefore would amount to an improvement for which borrowings under the limited recourse borrowing rules would be prohibited.
While you cannot borrow to improve a single acquirable asset that is the subject of the limited recourse borrowing, the ATO in its latest ruling confirms its thinking that funds from within the SMSF can be used to improve the property. Caution is required in that the improvements cannot result in the property becoming a different asset. This will limit the type and size of any renovation
Please note that the September 14 guidelines are only in draft form, so investors will need to seek specific advice as to its use, and keep a watchful eye on any final ruling by the ATO.
Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance. Ken will also presenting at <a href="https://www.chan-naylor.com.au/shop/event/buying-property-with-your-smsf/" target="_blank">The Echoice Buying Property with your SMSF Workshop in Sydney</a>. Ken and other experts will talk about how to substantially improve your superannuation.
</body></html>

kenraiss-JsVyb3YKka

Issues an investor needs to understand when buying property in a SMSF

<html><body>
Borrowers’ appetite for discounted variable rate mortgages among borrowers is growing, according to September approval figures from Mortgage Choice. 
Nearly 45% of borrowers selected a discounted rate mortgage in September, up from 41% in August and significantly up on the 12-month average of 30% of borrowers. 
The Mortgage Choice website says that “one of the most prominent lenders” on its panel of lenders is offering a discount of up to 1.03% per annum off its advertised rate throughout the life of the loan, depending on how much of a deposit the borrower can muster. 
To qualify for these discounts, the total borrowing has to be $250,000 or greater and the loan-to-valuation ratio is to be less than or equal to 80%. 
For LVRs greater than 80%, the unnamed lender is offering discount of 0.7% off the advertised rate while for LVR between 70% and 80%, a discount of 0.84% is applicable. In addition the lender is also waiving a $600 establishment fee with the discounts on offer extended to November 20. 
According to the latest JP Morgan/Fujitsu Mortgage Industry Report, <a target="_blank" href="/news">the current rate of discounting by the major banks is unsustainable</a> in an environment of low housing credit growth. 
In addition to opting for ongoing discounted mortgages, more borrowers are opting for fixed-rate mortgages a<a target="_blank" href="/news">s lenders continue to cut fixed mortgage rates.</a>
During September, the percentage of fixed-rate borrowers increased to 17% from just under 14% of borrowers in August. The long-term average is 12.5%.
<img src="/images/stories/mcoct61.jpg">
Source: Mortgage Choice
Mortgage Choice spokeswoman Kristy Sheppard says she expect the trend of borrowers opting for ongoing discounted mortgages to continue, “bolstered by industry talk swinging away from cash rate hikes to ongoing stability or cuts”. 
Demand for standard variable and basic variable rate home loans fell in September, to 16% and 15% of approvals, as did that for introductory rate loans, to 2%. 
Line of credit mortgages, primarily used by investors, experienced a slight growth in demand, to 5%.</body></html>

Almost half of borrowers choosing discounted mortgages

<html><body>
12/30 Mater Street, Collingwood, VIC, 3066
<img style="border-style: initial; border-color: initial;" src="/images/stories/materst.jpg">
This two-bedroom, two-bathroom apartment comes with a car space and storage cage and is tenanted until the end of March at $502 per week. Belinda Lindsay of <a href="https://www.collinssimms.com.au/?pagecall=property&amp;propertyID=1854668" title="Collins Simms" target="_blank">Collins Simms</a> sold it at auction on Saturday, October 8 for $570,000. It had pre-auction price hopes of $490,000 plus. Lindsay says bidding was intense, with five potential bidders and three active bidders on the day. The sale price reflects a gross rental yield of 4.6%, higher than the indicative gross rental yield of 4.3% for Collingwood units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more on gross rental yields and prices in Collingwood, see the <a href="/news">RP Data suburb page.</a>
For more investment prospects that went to auction this past weekend, see pages 2 and 3.
 
<hr class="system-pagebreak">
3/16 Morven Street, Yarraville, VIC, 3013
<img style="border-style: initial; border-color: initial;" src="/images/stories/morvenst.jpg">
This three-bedroom townhouse opposite parklands is currently tenanted at $474 per week to tenants whose lease expires in February, though <a href="https://www.sweeneyestateagents.com.au/profile.php?clientid=sweencp&amp;cat=sales&amp;propertyid=3714044" target="_blank">Sweeney Estate Agents'</a> Dean Johnson says the tenants would be willing to leave earlier if needed. Johnson is marketing the property with price hopes of $549,000 plus. The property was passed in at auction on Saturday, October 8 on a single bid of $520,000. The property's reserve is $549,000. If it sells for $549,000 it would reflect a gross rental yield of 4.5%, far higher than the indicative gross rental yield for Yarraville of 3.3%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more infomation about yields and prices in Yarraville, see the <a href="/news">RP Data suburb page.</a>
 
<hr class="system-pagebreak">
4/ 30 Elm Street, Hawthorn, VIC, 3122
<img src="/images/stories/elmst.jpg"> 
This two-bedroom Hawthorn unit has been leased to the same tenant for more than six years. The tenant is on a month-to month lease at $320 per week and is keen to stay in the property. <a href="https://www.structuredco.com.au/sales" target="_blank">Structured Property</a> agent John Rombotis says that rent is under market value, and it could be rented for between $370 and $380 per week. Rombotis is marketing the property with price hopes of $420,000 plus. At its current rent, that would reflect a yield of 4%, about the same as the indicative gross rental yield for Hawthorn units of 4.1%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The property went to auction on Saturday, October 8 at 11.30am. 
For more on yields and prices in Hawthorn, see the <a href="/news">RP Data suburb page</a>.
</body></html>

cknowlton-QnEa6ntUYP

Weekend yield watch: Collingwood sale secures yield of 4.6%

<html><body>
The RBA has waded into the affordability debate. This is one of the reasons I love the Reserve Bank of <place><country-region>Australia</country-region></place>. Actually, truth be known, we have a bit of a “love-hate” relationship. 
On some days I am the bank’s firmest, and only, supporter; a case in point being the in equal parts flawed, jejune and disgraceful media and political criticisms of the compensation of top RBA executives, which I have repeatedly <a target="_blank" href="https://christopherjoye.blogspot.com/2011/09/knee-capping-aussie-central-banks">railed against</a>. 
On others the bank doubtless finds me rather frustrating, such as when I suggest that there is discord among its board, or that the RBA is failing to properly fulfil its financial stability duties by holding Australian banks to account on the unnecessary risks they occasionally expose taxpayers to. 
Today is one of those better moments in our union. Today I am able to objectively shower the bank with praise. Why? Because it has just released a historic <a href="https://www.rba.gov.au/publications/rdp/2011/2011-03">study</a> with far-reaching consequences for our understanding of how <place><country-region>Australia</country-region></place>’s $3.6 trillion housing market works, and, more significantly, what specific policy measures might be implemented to cut the cost of securing well-located shelter. 
On a more technical level, the study’s three authors — Mariano Kulish, Anthony Richards, who is head of the RBA’s economic analysis department, and Christian Gillitzer (hereafter “Richards et al”) — have furnished numerous theoretical, empirical and general policy insights into the impacts of changes in infrastructure investment, zoning ordinances, frictions in the supply of new dwellings, and population growth on house prices, urban densities, land prices, and a city’s size, among other things. 
Described differently, they have presented a range of “counterfactuals” that tell us what our big cities might look like were we to vary existing urban planning and infrastructure policies. 
Unsurprisingly, Richards et al find that the “supply-side” of <place><country-region>Australia</country-region></place>’s housing market matters a great deal when it comes to determining housing costs. While I will discuss their individual results in a subsequent column, today it suffices to highlight their conclusion: 
“While demand-side factors, especially changes in the cost and availability of finance, have clearly been very important in explaining developments in the Australian housing market over the past two decades, our results lend support to other [supply-side] work pointing to the role of structural factors in influencing housing market outcomes. There is a growing body of international evidence on the role of supply-side constraints in limiting construction and driving up prices... The evidence for <place><country-region>Australia</country-region></place> presented in Section 4 is also consistent with various supply-side aspects boosting the cost of housing." 
As a more personally interesting aside, Richards et al quite emphatically affirm (and cite) the arguments and analysis first tendered in my <a href="https://mrcltd.org.au/research/home-ownership/volume_1.pdf">2003 Menzies Research Centre report</a> on the demand- and supply-sides of Australia’s housing market, which was commissioned by the Prime Minister at the time. They also subtly overturn previous RBA orthodoxy on this hotly contested subject, which resisted my 2003 supply-side thesis in favour of demand-side explanations for changes in housing costs over time. 
I would submit that Richard et al’s contributions will emerge as the definitive body of work that future generations of policymakers will rely upon when trying to make the case for greater public infrastructure investment, higher urban densities, speedier approval processes, reduced rigidities on supply-side delivery, and when explaining how we can cost-effectively accommodate a larger population without automatically inflating prices. 
No other government agency could have unilaterally manufactured a study of this kind. No organisation has the human capital to yield unsolicited research of this quality in an area so far removed from its official mandate. No department would dare wade so directly and publicly into such a contentious policy realm without the imprimatur of its political masters. 
For the avoidance of doubt, the RBA is telling us that politicians across the country are culpable for the housing costs that prevail today. There are, furthermore, tractable policy solutions to the affordability problems that exist, but weak-willed officials have mostly avoided them. 
(One gripe I have is that the RBA does not approach the arguably more germane question of banking regulation with the same gusto. Where is the RBA-stimulated debate on the UK Vickers’ prescriptions, for example?) 
A question that naturally springs to mind is: why on earth did Australia’s central bank, which is ostensibly responsible for monetary policy, go to the trouble of publishing such time-consuming research on how to improve housing affordability?* The intellectual genesis of the Richards et al paper is, therefore, worth dwelling on. 
About a decade ago the RBA developed a finer appreciation for the hazardous linkages between asset prices, credit growth and financial instability. 
Itrecognised that rapid asset price appreciation could be both driven by, and insidiously feed back into, credit growth. That is, an economy could be struck by a period of interconnected asset price and credit growth that is divorced from more fundamental factors. 
One might describe this as an “asset price-credit spiral”, which is the financial stability analogue of the “wage-price” spirals that have traditionally given inflation-focused central bankers the willies. 
Crucially, if these cycles cause prices to move materially away from their intrinsic values, they can result in highly distorted consumption and investment decisions (e.g., overinvestment in risky — sub-prime — loans and assets like commercial and residential real estate), the eventual reversal of which — via the “bursting” of the so-called bubble — can have toxic implications for the health of the wider economy. 
Here I am talking about plummeting collateral values in concert with rocketing default rates crystallising catastrophic bank losses, which, at the limit, can precipitate institutional failures in the absence of substantial taxpayer support (such as government guarantees of bank deposits, which, in Australia, account for around 60% of total bank funding, and of wholesale bank debts, which make up the remainder). 
The RBA concluded that it may, as “a policy of least regret”, have to employ its very blunt interest rate instrument (both in terms of the direction and timing of its effects) against the more extreme iterations of these interwoven asset price and credit cycles in order to mitigate their serious risks. 
For the policy wonks out there, the “house view” on this subject is perhaps best encapsulated in <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2011/jun/8">this recent article</a> by eminent Columbia University Professor Frederic Mishkin, which was released in the RBA’s June Quarter Bulletin. 
With this background in mind, the Richards et al study is really about acknowledging the limitations of what the RBA’s monetary policies are actually capable of achieving. It is implicitly saying that the bank would very much like to avoid the socially and politically challenging exercise of hiking rates in a low inflation environment simply to throw sand in the wheels of asset price bubbles. It is about formally quantifying the very meaningful economic relationships that prevail between federal and state government policies on urban planning, land usage. and infrastructure investment, and the prices that consumers are ultimately compelled to pay in the housing market. It is all but leading the political horses to water in canvassing a menu of constructive policy solutions that could help build more productive, efficient and lower-cost urban environments in the decades to come. 
For this brave work, the RBA deserves its dues. 
*I was, in fact, made aware that this research was coming down the pipeline since RP Data-Rismark supplied much of the data used in it. I had also briefly discussed some of these issues with the authors given my previous work in the field.
Christopher Joye is a leading financial economist and works with <a target="_blank" title="Rismark International" href="https://www.rismark.com.au/">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.
</body></html>

chrisjoye-JYhJsTrNRC

RBA wades into affordability debate: Christopher Joye

<html><body>
This Woolloomooloo motor mechanic workshop’s humble appearance belies its noteworthy company ownership.
Until last month the inner-city Sydney workshop – and a nearby warehouse – were within the real estate portfolio of the billionaire Lowy family’s international property conglomerate, the Westfield Holdings group.
The 215-square-metre workshop was sold for $1.3 million and the 400-square-metre two-level warehouse fetched $2,675,000 through Ray White Commercial Eastern Suburbs agents Grant Whiteman and Stephen McMorrow.
The Lowy family has a preference to hold onto its assets - the two properties were purchased in the early 1970s – the warehouse costing just $350,000 when bought through a company named Eastfield Pty Ltd.
Frank Lowy and John Saunders were the business partners, creating Westfield Development Corporation through the development of a shopping centre at Blacktown in Sydney's western suburbs.
Over 30 years, Lowy and Saunders developed shopping centres across Australia and the United States until Saunders sold his interests in 1987, and then the Lowy family expanded the company’s reach to New Zealand and the United Kingdom.
Lowy and Saunders had built the company headquarters at 100 William Street, Sydney,  just around the corner from the two recently sold Woolloomooloo properties.
In the early 1970s the precinct was emerging as a development hotspot evidenced in 1972 when Sid Londish spent about $20 million buying Woolloomooloo terrace slums and proposed a $400 million redevelopment.
By 1974 after two years of green bans, Londish’s backers withdrew, forcing Londish’s company Regional Holdings to abandon the ambitious project.
Londish had an earlier association with Woolloomooloo with the Londish family's Woolloomooloo engineering workshop, which they closed two years after Prime Minister Robert Menzies scrapped the engineering depreciation allowance in 1950.
Westfield is due to vacate 100 William Street, East Sydney in the next 12 months to 18 months, with plans to move into new offices at its $2.68 billion Westfield Sydney complex on Pitt Street Mall.
Westfield's main lease in east Sydney expired at the end of June this year. 
Westfield Towers was sold to the Kah Motor Company in 1996 by the Commonwealth Funds Management for $31.98 million, adding to its $22 million purchase in 1993 of the Boulevard Hotel next door.
</body></html>

jchancellor-FAypfDUnLy

Lowy family makes $1.3 million in Woolloomooloo garage sale

<html><body>
Developer Stockland is one step closer to commencing its mammoth Caloundra South community development on the Sunshine Coast following a decision by the Sunshine Coast Regional Council to discontinue legal action against the declaration of the site as an Urban Development Area. 
The proposed Caloundra South community will be the largest project Stockland has ever undertaken, spanning 2,310 hectares, with plans to build 20,000 homes for about 50,000 residents over the next 20 years. 
The development will also include a large town centre, retirement living villages and opportunities for government and business investment. 
Stockland managing director Matthew Quinn says it welcomes the decision by the council. 
“Caloundra South will deliver 13,500 jobs in the first 10 years of development, provide affordable housing, promote sustainable living and ensure the future prosperity of the Sunshine Coast region,” he says. 
“We look forward to continuing to work with the state government and council as we undertake community consultation and meet our commitments to protecting the environmental value of the site and the nearby Pumicestone Passage.” 
Stockland anticipates the Queensland government will make a determination on the approval for the Caloundra South Development Scheme by the end of the year. 
Following this approval the next step in the process is to lodge and obtain state government approval for the Caloundra South Master Plan, which the developer aims to complete during 2012. 
Should the master plan be approved, Stockland will also need to complete a federal environmental assessment process before construction can commence. 
Preliminary works have already commenced on the Bellvista II residential community, which is an advance land release within the Caloundra South Urban Development Area. The Urban Land Development Authority last month granted approval, with first settlements expected towards the end of 2012.
</body></html>

Challenge to Stockland Caloundra South development dropped

<html><body>
Even before you start looking for your development site, you’ll need to clarify one thing.  Are you developing to sell or to hold?
To answer this question, you may need to answer another:  Is your strategy short or long term?  If it is short term, then selling may meet your needs to make a quick return on your investment. If you have a long-term strategy to build up a property portfolio, then holding will be the way to go.
There are several factors that will influence your decision:
Location
Your development is in an awesome location but in a poor rental market.  An example of this may be a coastal area where there may be higher demand from owner-occupiers wanting to purchase low-maintenance property to retire to. In this case you may sell to realise your profits, as holding would not be viable due to low rental returns.
Timing
If you complete your development and the market is in an upswing with high demand, then you may get a higher-than-anticipated sales price. So this may influence you to sell. But if the market is down and there is an oversupply of property but a tight rental market, then holding may make sense.
Interest rates
An important factor in calculating holding costs is interest. If interest rates are around 6.5% as they are now yet the rental yield is around 8% in the area you’re developing in, then holding the properties makes good sense. You may look at fixing rates for a few years, to take the risk of rates rising out of the scenario.
Taxation 
You need to discuss your personal and/or company tax situation with your accountant before starting to develop property. There is capital gains tax to consider when selling as well as GST implications when selling new dwellings. These alone may sway you to hold. You also need to check on land tax to see if this will affect you if you decide to hold.
Most of Property Bloom clients develop to hold.  This is because they choose to access the equity – which is created through the development process – through refinancing on completion.  This means they don’t have selling costs like agents selling commission, capital gains tax and GST.   Once refinanced, they can pull some equity out of the development if they choose.
Another deciding factor in holding is in the areas of the Hunter Region we develop in is that we are getting very strong rental returns. We find that we can maximise the rent because the villas are new. Tenants do pay a premium to live in a new dwelling. Also the vacancy rates are less than 1%.  The gross yield on completion can be as high as 9%. The yield does also depend on the size of the development.  A three-villa project will have a higher yield than a dual occupancy.
Another reason our clients hold is take advantage of the high depreciation benefits they receive on the new dwellings.  On a typical dual occupancy, our clients are receiving around $17,000 in year one (based on diminishing value method). If you are paying lots of tax, this is definitely one of the rewards of holding.
The final reason Property Bloom clients hold is because they want to build up a retirement fund and take advantage of future capital gains. In the suburbs we develop in, there is high potential for capital growth because of many factors including increased population, projected housing demand in the council’s regional strategy, spend on infrastructure and the benefits that the coal mining industry bring to these towns.  The long-term growth figures are over 12%.  So if a client can create say $80,000 to $120,000 in equity through the development process and then holds for 10 years, he or she stands to receive 12% growth on average, each year.  The future value of the development will be considerable.
Whatever your strategy, make sure you put down a solid plan that you feel comfortable with and set up a professional team to help you achieve your goals.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News