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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The fate of Foster’s century-old Carlton and United Brewery building remains up in the air following the brewery’s acquisition by SABMiller for just under $11.5 billion.
The red-brick brewery complex covers more than 10 hectares of prime inner-city land on the banks of the Yarra River in Abbottsford and is just three kilometres from the Melbourne CBD.
The land is estimated to have a value of about $100 million.
Abbotsford is currently home to luxury residential developments projects including Hamton’s Haven on the River project scheduled to commence construction in late 2011 and Salta Property’s Green Square project – both on Victoria Street.<a href="https://www.propertyobserver.com.au/developments/trenerry-abbotsford-development-brings-residential-to-the-riverfront/2011091451544" target="_blank"> The Trenerry development</a>, on the banks of the Yarra, is slated to be complete in mid-2013.
A report carried out by investment bank Merrill Lynch in June last year found that Fosters could save between $150 million and $200 million a year on 55 million cases of beer produced at Abbotsford by relocating to a new brewery.
The savings would come from reduced electricity, water, labour, packaging and freight costs on each case of beer produced at the century-old brewery.
The CUB building has been home to Carlton &amp; United Breweries since 1904, when the beer-maker relocated from Swanston Street. The building is not heritage listed.
Graham Mackay, chief executive of SABMiller, says a decision on the building has not yet been made.
“To be quite blunt, if you're going to knock down Abbotsford brewery then you've got to build a new one,” he says.
Fosters has already sold off some parts of the brewery complex.
In 2007, Fosters completed a sale and leaseback agreement of 10 properties adjacent to the Abbotsford brewery site for $41 million to a joint venture comprising DPF, a managed fund of Charter Hall and the Perth-based Wyllie Group.
The sale included buildings used predominantly for offices, visitors and display centre together with open car parks used to accommodate staff working at the brewery.
The initial lease agreement was for 10 years with subsequent five- and seven-year options.
Charter Hall sold its 50% stake to the Wylie Group in 2009 for $18.3 million.
CUB’s former Swanston Street location in Carlton is currently the site of <a href="https://www.propertyobserver.com.au/commercial/it-s-becoming-easier-to-be-green-as-more-embrace-sustainable-commercial-design/2011072150878" target="_blank">Grocon’s $6 million “Pixel” building</a>, Australia’s first carbon-neutral office block.
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lschlesinger-FZcF9M3vE6

Buyer has no draft plan yet for Carlton and United Brewery site

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Owner-occupier demand for new housing is picking up while investor demand has shrunk, according to NAB’s September quarter survey of residential property. 
The increased participation from owner-occupiers comes as house prices fell 2.4% over the quarter, while gross rents rose just 0.7%. 
Demand from owner-occupiers increased by 6% over the September quarter to account for 52% of total demand while investor demand dropped to just 24%, after falling to 28% in the June quarter and 34% in March.
<img src="/images/stories/nabept281.gif">
According to NAB, the drop in investor demand is consistent with “recent data showing a slowdown in housing lending for investment purposes”. 
The drop in demand for new housing from investors is in line with declining expectations, with survey particpants (estate agents, owners, investors, etc) now expecting investors to account for about 25% of the market over the next 12 months, with owner-occupier demand expected to be up around the 50% mark. 
The shares of first home buyers and overseas buyers in the market were broadly unchanged at 17% and 6% respectively over the September quarter is expected to remain broadly unchanged over the next 12 months.
<img src="/images/stories/nabsept282.gif">
Overall, the NAB Residential Property Index – a measure of house price and rental expectations - fell to 14 points in September following a five-point drop in June. 
However, the index conceals considerable variation among the states, with conditions identified as being much weaker in Queensland, Victoria and SA/NT. 
NSW and WA bucked the national trend and managed to produce small index gains. 
Looking ahead, expectations have weakened relative to the last survey with the national index expected to be softer on the back of weaker house price expectations in Victoria and a more subdued outlook for rents in all states, bar NSW.
Survey respondents identified tight credit conditions as their most “significant” concern in the September quarter - a result that was consistent among all the states - but seen as being a “very significant” constraint in SA/NT and WA. 
Housing affordability replaced rising interest rates as the next biggest constraint on new property developments in September, with these concerns also assessed as  “significant” and slightly more so than in June. 
Housing affordability concerns were most prevalent in Victoria, which is consistent with HIA data showing that Melbourne was the least affordable place in the country to purchase a home during the June quarter.
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Owner-occupier demand rises while house prices drop 2.4%: NAB

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New home sales have concluded a dramatic bout of declines by rising 1.1% in August, according to latest figures from the Housing Industry Association, although improvements have been confined to a few states.
The figures show sales rose by 1.1% after plummeting 8% in July and 8.7% in June, strengthening the group’s push for industry assistance at next week’s Tax Forum.
HIA chief economist Harley Dale says although the result appears positive “there is a little bit of devil in the detail”.
“If you look at the results in Queensland, during the month of August this was actually the first month that the state government building boost came in,” he says.
“That has given the industry a small lift off a very low base.
“You’ve got a modestly better month in Victoria within an overall downward trend and that has been the healthiest markets.
“There are specific results that have led to the boost in the headline rate.”
The results show that detached home sales rose by 1.5% but overall are down by 15% over the August quarter.
Sales of multi-units fell by 2.2%. In Queensland sales of detached homes rose by a massive 9.8% while Victorian sales rose by 3%.
But Dale points out that New South Wales sales fell by 5.8% – the fourth straight decline – while sales fell by 4.7% in South Australia and by 0.7% in Western Australia.
<img src="/images/stories/hiasept28.gif">
Dale warns that while the results may show an improvement for this month overall they show a severe downward trend.
“Sales are still down by about 15% and we continue to get signs that new home building conditions are deteriorating, and those are deteriorating amid concerns about the global economy,” he says.
Lower consumer confidence has restricted sales and small businesses are collapsing as a result.
During the past six months various building and construction firms have been placed into receivership or administration due to lower demand for construction.
CommSec economist Craig James commented on the result by comparing them to a “dead-cat bounce”.
“Aussie consumers and home-buyers remain super cautious and that mood is continuing to constrain activity for retailers and housing dependent businesses,” he says.
“Anecdotally the recent drop in fixed term interest rates is boosting enquiry levels in the housing market but it is yet to show up in the data.”
Dale says the results in Queensland bolster the call for national stimulus.
“The case for stimulus is strengthening as the industry weakens,” he says.
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20110928-new-home-sales-rise-1-1-but-housing-industry-still-concerned" title="SmartCompany" target="_blank">SmartCompany.</a>
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cknowlton-QnEa6ntUYP

New home sales rise by 1.1% but housing industry still concerned

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Some 28 of Australia’s 65 regions are now considered to have high mortgage delinquency, with non-mining unemployment hurting regional home owners.
Moody's Investors Service says the ability of Australian home owners to keep up with their mortgage payments has declined over the past year.
“Mortgage performance has shown a material deterioration," says Arthur Karabatsos, a Moody's vice-president.
Between March 2010 and June 2011, the national delinquency rate rose from 1.36% to 1.67%, given an especially poor performance in the regions.
"Of Australia's 65 regions, those performing very poorly, that is, with more than 2.5% delinquencies, increased to 11 from two, and those performing poorly increased to 17 from five," says Karabatsos.
Moody’s classified 11 regions as performing very poorly, with six from New South Wales, four from Queensland and one from Western Australia.
"NSW remains the worst-performing state overall, with six of its regions performing very poorly," Karabatsos says.
But the biggest declines in mortgage performance have been experienced in Queensland and WA, the two states that have been the biggest beneficiaries of Australia's ongoing mining boom, the report says.
“Previously all Queensland regions performed satisfactorily or better, but now four regions are performing very poorly.
“And before only one of WA's seven regions was performing poorly and now it is four performing poorly and one very poorly,” says Karabatsos.
"This apparent paradox is partly explained by the fact that non-mining jobs still account for most of the employment in both states, and such sectors lag the mining sector in growth.
“For example, the strong Australian dollar has weakened the tourism industry, which accounts for more than 5% of employment in Queensland," Karabatsos says.
"Overall, mining accounts for just 1.8% of employment in Australia, and then 2.4% in Queensland and 7.1% in WA.
“Now QLD's tourism-dependent Gold Coast region not only has Australia's third worst mortgage performance with 3.11% delinquencies, but also contributes the most delinquent loans outright, with 6.9% of such loans in Australia located in the region," adds Karabatsos.
"And, previously, while all of Victoria's regions were satisfactory or better, two now perform poorly.
“By comparison, South Australia is the best-performing state, with all of its regions performing satisfactorily," says Karabatsos.
<img src="/images/stories/moodys2.gif">
Source: Moody's
The report shows that the worst performing postcode is in WA – postcode 6168 encompassing suburbs such as Rockingham, Hillman, Garden Island and Peron some 30 kilometres south of Perth –  which has a delinquency level of 5.31%, more than three times the national average of 1.67%, as calculated by Moody's.
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jchancellor-FAypfDUnLy

Non-mining unemployment hurting regional mortgage repayments: Moody's

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Borrowers might consider holding off taking out fixed-rate mortgages as further cuts may be in the pipeline, according to Channel 9 finance expert Ross Greenwood.
Speaking during his regular Today Show segment, he said fixed-rate mortgages could get even cheaper.
According to Greenwood there is probably a window of opportunity between now and the end of the year to lock in at cheaper fixed rates and it may not be today.
He says banks have access to cheaper funding and are able to pass this on to borrowers.
Mortgage broker The Loan Market Group says enquiries for fixed-rate loans have increased to 30% of all enquiries from virtually “non-existent” levels at the start of the year.
Loan Market chief operating officer Dean Rushton tells Property Observer it is seeing “lenders acting quite aggressively with fixed rates”.
“It’s basically routine now to see a new weekly leader in fixed rate pricing. It will likely remain a competitive product for the next several months as the banks seem to be determined to battle it out in this space,” Rushton says.
“With the prospect of a rate rise still a few months away we’ll continue to see the major banks competing for fixed rate products.”
Yesterday <a target="_blank" title="Westpac cuts mortgage rates" href="/news">Westpac cut its one- and three-year fixed-rate mortgages</a>, a day after the<a target="_blank" title="Greater Building " href="/news"> Greater Building Society cut its fixed rates</a> under those of some of the major banks.
Westpac is offering a three-year fixed-rate mortgage rate of 6.44% while the Greater is offering a rate of 6.35%.
Currently the cheapest three-year fixed- and variable-rate mortgages as listed by mortgage comparison website RateCity.com.au are:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" colspan="2" width="295">
Three-year fixed rate
</td>
<td valign="top" colspan="2" width="321">
Variable
</td>
</tr>
<tr>
<td valign="top" width="147">
AMP
</td>
<td valign="top" width="147">
6.29%
</td>
<td valign="top" width="158">
Illawarra Home Loans
</td>
<td valign="top" width="164">
6.68%
</td>
</tr>
<tr>
<td valign="top" width="147">
ME Bank
</td>
<td valign="top" width="147">
6.35%
</td>
<td valign="top" width="158">
Loans.com.au
</td>
<td valign="top" width="164">
6.69%
</td>
</tr>
<tr>
<td valign="top" width="147">
ECU Australia
</td>
<td valign="top" width="147">
6.35%
</td>
<td valign="top" width="158">
Newcastle Permanent
</td>
<td valign="top" width="164">
6.74%
</td>
</tr>
</tbody></table>
Source RateCity.com.au
Mortgage broker Mortgage Choice says there has been a significant increase in the percentage borrowers taking out fixed-rate mortgages, with the proportion rising from 3.67% in September 2010 to just over 14% in August.
Spokeswoman Kristy Sheppard says every interest rate reduction brought out by a major bank puts pressure on the other lenders to re-examine their rates.
“I hope rates continue falling to historic lows, for borrowers' sakes. We'll simply have to wait and see if this happens,” she says.
Fixed-rate loans as a % of our new loan approvals
<img src="/images/stories/mcsept28.gif">
Source: Mortgage Choice
According to mortgage comparison website RateCity.com.au, about 70% of lenders have cut their fixed rates recently.</body></html>

Fixed-rage mortgages could get even cheaper: Ross Greenwood

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About 3.7% of Australian dwellings are now worth less than their original purchase price, according to a comprehensive RP Data analysis.
The decline in property prices following the global financial crisis has had its biggest impact in Queensland, where about 6.3% of all properties are in negative equity.
Queensland is followed by Western Australia, where about 4.9% of properties are worth less than the owners paid.
The Queensland districts with the highest negative equity are far north Queensland, the Gold Coast and Sunshine Coast.
For homes purchased from 2008, the RP Data findings show that 7.7% are now worth less than what the owner paid.
An estimated 13.3% of post-GFC buyers in Queensland are likely to be in negative equity, with the property likely to resell at less than its purchase price.
Queensland is followed by Western Australia with 9.6% in negative territory post-GFC and Tasmania with 9.5% negative equity since the 2008 economic downturn.
“The global financial crisis began affecting housing markets in 2008,” Tim Lawless, RP Data national research director, says.
“The home owners that are at the greatest risk of home values moving below their purchase price are those that have purchased since 2008,” Lawless says.
The Australian Capital Territory was ranked as the least affected, with just 1% showing negative equity. Victoria followed, with 1.8% of Victoria’s owners considered negative-equity households.
But the report concluded that 45% of home owners across Australia are sitting on a nest egg that’s worth at least double what was paid.
“Strong value growth in property over recent years has been the catalyst for most regions enjoying quite strong levels of equity,” Lawless says.
“Over the five years to June 2011 capital city home values have increased by about 30%, providing a significant wealth boost to most home owners during this period.
“More recently the Australian housing market has softened and home values are down 2.7% between their October 2010 peak and June 2011,” Lawless notes.
RP Data estimates that Australia’s residential housing market is now worth $4.56 trillion – almost four times the value of the $1.3 trillion Australian equities market.
RP Data’s report measures the difference between the original purchase price of a home and the current valuation for individual properties around the country.
The property valuations used in the analysis are based on RP Data’s automated valuations model, where the value of more than 8 million dwellings is regularly estimated across Australia.
The report does not factor in home owner debt levels.
Worst-performing areas
<img src="/images/stories/worstareas.gif">
 
Best-performing areas
<img src="/images/stories/bestperformingareas.gif">
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Queensland hit hardest post-GFC as 6.3% of homes worth less than their purchase price

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The first two of the six auction offerings that precede the October finale of the Channel Ten series The Renovators have been put to auction. The other four houses also face the auction reality test this week. 
The Century 21 listing agents are under confidentiality agreements until the October 9 auction screening finale. 
And even those who attended the onsite auctions have been asked to keep the prices under wraps. 
The sale amount over the undisclosed reserves goes into the collective prize pool for the eventual winner to keep. 
While the auctions were underway some 803,000 viewers were tuned into the latest elimination.  Melbourne’s audience was the highest at 302,000, followed by Sydney’s 164,000 and Brisbane’s 162,000. 
SPOILER ALERT 
Suggesting Sydney’s spring sales market is a pricing test, both did sell, but barely above cost price. 
The weatherboard, at <a href="https://www.realestate.com.au/property-house-nsw-parramatta-107820796" target="_blank" title="51 Franklin St">51 Franklin Street, Parramatta</a>, was sold at an auction with 100-plus attendees for $575,000. 
It had been bought at $460,500, with stamp duty taking it to $478,000. It had been in the same family for five decades. It is now a modern family home with three bedrooms, two bathrooms with an entertaining space and backyard area. Its renovation budget was $95,000, making the breakeven point before its auction campaign conveyancing costs $573,000.
The 1915 Marrickville offering also sold last night at its onsite auction. It fetched $700,000 in a one-bid auction. After costing $572,000 in March, or $595,000 after stamp duty, the shop, at <a href="https://www.realestate.com.au/property-house-nsw-marrickville-107822406" target="_blank" title="146 Addison St">146 Addison Road, Marrickville</a> was transformed into a three-bedroom, one-bathroom abode. Its renovation budget was $119,000. It had previously sold at $68,000 in 1985.
The Glebe and St Peters properties have also found buyers at their Wednesday night auction. 
<a target="_blank" title="DIY price estimations on Renovators" href="https://www.propertyobserver.com.au/renovating/diy-price-estimates-for-the-renovators-six-offerings/2011091351521">None of the agents would provide price estimations for the properties before auction.</a>
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a>
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Channel Ten's Renovators meet reality and ambitiously seek secrecy on Sydney auction results 

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Three of the four Richmond properties on the hit Nine renovation series The Block 2011 are now available for rent as its emerges that all four cottages were bought by investors.
Katrina and Amie's furnished house at 41 Cameron Street, which sold for $860,000, is the cheapest rental – listed at $950 a week through Hocking Stuart agent Stephen Chamberlin. It would reflect a 5.74% gross yield.
The three-bedroom, two-bathroom home at 39 Cameron Street renovated by Polly and Waz, which sold under the hammer for $855,000, is for lease at $995 a week through Brant Williams, of Advantage Property Consulting. Its asking rent reflects a 6.05% gross yield.
The dearest home on The Block at 37 Cameron Street, which Josh and Jenna sold for $1 million, is for rent at $1,250 per week through Woodards Carnegie. It reflects a 6.3% gross yield.
Rod and Tania Walsh's property at 43 Cameron Street has yet to appear. It was bought at $922,000 by a Melbourne couple as an investment through Jellis Craig agent Clayton Smith.
The indicative gross rental yield for <a target="_blank" title="Richmond" href="/news">Richmond</a> houses is 3.5%, according to RP Data.
The depreciation reports for the renovated homes heightened investor interest in the offerings.
The depreciation reports were been prepared by BMT Tax Depreciation Quantity Surveyors, which have inspected the older properties – now renovated – and estimated what a buyer could claim in deductions in his or her tax returns.
The house renovated by Polly and Waz at 39 Cameron Street could have an initial maximum $27,000 claimable depreciation in its first financial year. Its depreciation would peak in its second financial year at $29,700.
The house at 37 Cameron Street, which Jenna and Josh renovated, has an initial $25,000 claimable depreciation.
The house renovated by Katrina and Amie at 41 Cameron Street could have an initial maximum $28,000 claimable depreciation in its first financial year. Its depreciation would peak in its second financial year at $30,000.
It is estimated the renovated house at 43 Cameron Street, renovated by Rod and Tania, could have an initial maximum $29,000 claimable depreciation in its first financial year. Its depreciation would peak in its second financial year at $31,500.
Even though the buyers will not have carried out the work themselves, the ATO allows property investors to claim a deduction related to the building and plant and equipment items contained within it. It can be claimed by any owner of an income-producing property.
The asking rents for 41 Cameron Street and 39 Cameron Street are<a target="_blank" title="Friday Form Guide" href="https://www.propertyobserver.com.au/victoria/friday-form-guide-yields-of-up-to-7.5-on-the-block/2011081851199"> far higher than what their agents estimated for their rental potential before auction</a>. The asking rent for 37 Cameron Street is in the rental estimation range provided by Roberts pre-auction.
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Block Richmond properties hit the rental market with yields of up to 6.3%

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A leading housing academic has taken a swipe at Australian property investors and warns that drastic tax changes are needed to prevent the “landed gentry” from making housing affordability even worse.
Ian Winter, executive director at Australian Housing and Urban Research Institute, says the upcoming Canberra Tax Forum should consider measures to limit negative gearing and replace the stamp duty tax system.
He says the “fair go” of the Australian housing market has disappeared.
“Property has become a speculators’ picnic, with homes treated more like share portfolios than as a basic human need,” he says writing for academic commentary website <a href="https://theconversation.edu.au/" target="_blank">The Conversation</a>. 
Winter warns the current imbalance in the housing market calling Australia “a nation of landlords and renters rather than a nation of home owners”.
“With 22% of Australians owning 55% of the homes across our capital cities, the landed gentry are on the rise,” he says.
According to Winter reforming the tax regime as it applies to housing has the potential to improve the lives of many Australians.
“If we get the settings right we can do some good,” he says.
Measures that could work have already been identified in the Henry Tax Review.
These include limiting negative gearing provisions and replacing state-levied stamp duties with a broad-based land tax.
“Limiting negative gearing provisions for residential landlords would likely see an increase in the supply of private rental accommodation from equity investors, such as superannuation funds,” he says.
“Henry’s proposal to replace stamp duty with a broad-based land tax levied on an individual rather than aggregate basis could also see prices drop by up to 10%.”
But he warns that getting the tax changes wrong could make things with the “current generations of wealthy property owners will be responsible for leaving behind a housing system far worse than the one they inherited”.
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Housing academic says 'landed gentry' destroying 'fair go'

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
It never ceases to amaze how distorted investment thinking can get among even seasoned professionals. A classic example is the very different approaches taken to Australian commercial and residential property in the superannuation fund sector. 
Of the nearly $1 trillion in non-self-managed superannuation money (i.e., held by retail, public, government and industry funds), the average portfolio weight to “real estate” is between 10% and 15% of all fund assets. 
Now the rational observer might reasonably assume that there would in turn be a say, 90:10 split in favour of residential over commercial given the relative asset class sizes. The total market capitalisation of private residential property is about $3.6 trillion based on Rismark’s best estimates. In contrast, the total value of all core commercial, industrial, retail and wholesale property is less than $300 billion, according to RMIT. That gives us a rough 90:10 split. 
Another way of building portfolios is via much more sophisticated “mean-variance optimisations”. We have applied this technique over the last 30 years of data and the results are even more damning: you don’t allocate any money at all to commercial property because of its lower total returns, higher volatility, and strong correlation with the business cycle. 
One could also fairly argue that since more than 30% of contributing superannuants have zero exposure to residential property, and those who do have access own one very risky individual asset and presumably possess a powerful motive to get diversification to a truly national portfolio (much like if you only owned Fortescue shares and wanted to diversify across the whole market), super funds have a logical incentive to deliver these imperatives. 
The final nail in the asset-allocation coffin is the risk, return and correlation characteristics of Australian housing. The table below summarises all the major asset-classes’ performance over the last three decades, which is the longest period over which can objectively evaluate the data.
<img src="/images/stories/joyesept281.gif">
On a risk-adjusted basis, a national portfolio of Australian housing has consistently outperformed Australian shares, global shares, Australian bonds, and Listed Property Trusts (LPTs). The “uncorrelated” feature of residential property returns vis-a-vis equities, whereby housing yielded strikingly superior performance during the 1987 stock market crash, when shares fell 44%, the 2001 tech wreck, when global equities collapsed by around 50%, the 2002-03 period, when Australian shares were down 10% to 15%, and 2007-09, the GFC, when Aussie and global equities once again halved in value, implies that housing is a valuable portfolio “diversifier”. 
The most remarkable thing is that notwithstanding the compelling evidence above, your typical Australian super fund has no allocation at all to housing. That is, the 10% to 15% investment in real estate is dedicated almost exclusively to commercial property. There seem to be few sensible reasons for these decisions. 
One controversial explanation that has been proposed to me is that super funds suffer from an insidious form of “industry capture”. In short, most of the executives responsible for managing real estate investments within super funds previously worked in the commercial property sector in one capacity or another. The same is true of the super funds’ advisors: almost all “asset consultants” that focus on real estate come from commercial property backgrounds. 
This possibly gives rise to an instinctive bias to pursue commercial property strategies. At the margin, there are a few funds that do have some residential development holdings. But in an investment sense these are far removed from the traditional, established housing stock. 
There are good reasons why banks happily lend to established housing but avoid developers like the plague: the probabilities of loss are far greater with the latter, as they are with commercial property. Development assets tend to be located on the fringes of cities with lower quality public infrastructure and amenities. The demand for these homes is often less certain while the buyers frequently have lower incomes. This is why the “risk-weighting” APRA forces the banks to apply to commercial property and developer loans is multiples the risk-weighting attached to established residential loans. Through the business cycle, established housing credits have proven to be much safer (as we shall see shortly). 
It is easy to highlight the comparative risks of commercial and residential property. In the first chart below we contrast the performance of the ASX LPT Accumulation Index (reinvesting dividends) with the total net returns generated by Australian housing in the period since 1982. To proxy for housing’s performance, we have used the capital gains plus only half of the gross rents to control for transaction costs. 
 
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Over the past 29 years, a national portfolio of Australian residential property has produced superior total returns (10.6% per annum) with, crucially, nearly one-third the risk. This was borne out most graphically during the GFC. The peak-to-trough fall in the LPT index was a stunning 69% even allowing for dividends. On the other hand, the peak-to-trough fall in boring old bricks and mortar was less than one-10th this amount. Click to enlarge
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyesept282.gif"><img src="/images/stories/joyesept282thumb.gif"></a>
Those in the commercial property industry would argue that the ASX-listed returns tell an artificially negative story apropos their asset-class. They instead prefer to use “unlisted returns” measured by a group called IPD. The problem with these unlisted performance estimates is that they are based on human valuations of capital growth over time. They are not based on actual sales data, or the judgments of thousands of investors participating in an actively traded market.
Many of these unlisted valuations are also commissioned by the fund managers that own the underlying assets, which presents a well-known, albeit rarely acknowledged, conflict of interest. In brief, it has been repeatedly documented that human valuations of commercial properties significantly lag real-world events and materially underestimate true losses. This is why we prefer to rely upon the day-to-day pricing afforded by a market such as the ASX. For the record, the house price data we use here is based on around 40,000 home sales a month, and does not include any human valuations.
On the basis of the analysis presented herein, the really big “bubble” was in commercial real estate, not residential property. 
A similar observation applies to Australian shares. In the next chart I have added the All Ordinaries Accumulation Index to our analysis (grey line), and telescoped in on the past 10 years of data (although note this stops in March 2011, and does not account for the recent share market correction).
Once again, the take-away is that by far the two biggest bubbles were in domestic shares and commercial property. This was illustrated by the tremendous price appreciation generated in the years before the GFC (observe the stunning rise in the blue and grey lines) followed by precipitous 50% plus declines. Australian housing just did what it always does: produced low volatility (viz., risk) total returns that typically track changes in disposable household incomes and borrowing capacity. Click to enlarge
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyesept283.gif"><img src="/images/stories/joyesept283thumb.gif"></a>
 
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In recent years, the RBA has gone to great lengths to highlight the fact that commercial property investments are more hazardous than established housing exposures (see <a href="https://www.businessspectator.com.au/bs.nsf/Article/The-pitfalls-of-commercial-property-pd20100702-6Y9ZX?OpenDocument&amp;src=is&amp;cat=property-al">here</a>). It is widely accepted that bad commercial property loans in 1991 almost bankrupted ANZ and Westpac. 
In this context, the chart below depicts the losses realised by CBA in different parties of its credit portfolio over time. Observe that during the 1991 recession, when unemployment peaked at around 11%, CBA, like the other major banks, suffered an enormous increase in bad debts. These were, however, almost exclusively attributable to CBA’s “business lending” activities, which includes commercial property. Despite a huge increase in unemployment and double-digit mortgage rates, CBA’s losses on its home loans (lower red line) hardly budged. Importantly, a similar pattern reasserted itself during the GFC.
<img src="/images/stories/joyesept284.gif">
The RBA’s bi-annual Financial Stability Review (FSR) is the single most authoritive Australian study on the banking system’s risks. In examining these issues, the RBA offers some fascinating comparisons of the commercial and residential property asset-classes.
The first RBA chart I want to highlight is effectively two diagrams compressed into one. The left-hand-side panel shows commercial property prices in <country-region>Australia</country-region>, the <country-region>US</country-region>, <country-region>UK</country-region>, <country-region>France</country-region>, <country-region>Ireland</country-region> and <country-region><place>Spain</place></country-region> over the period 2003 through to 2011. What is especially interesting is that the RBA’s analysis demonstrates that Australian commercial property prices (blue line) surged way past peer country rates of growth in the years preceding the GFC (note the large protrusion above the other lines). And while Australian commercial property prices naturally fell by a very substantial margin, they remain materially above any comparable country today.
<img src="/images/stories/joyesept285.gif">
In the right-hand-side panel the RBA conducts the same analysis for residential property. Here the results are very different. You can see that in the period 2003 to 2007 Australian house price growth was substantially less than that witnessed in the US, UK, France, Ireland and Spain. In contrast to commercial property, the relative “outperformance” only emerged in the years following the GFC, which makes sense given <country-region><place>Australia</place></country-region>’s underlying economic outcomes. Indeed, even accounting for the deep European recessions, Australian house price growth since 2003 has been substantially less than its French equivalent.
Rismark recently undertook a similar study comparing Australian and <country-region><place>UK</place></country-region> house price growth over a longer period. We used the UK Academetrics house price index because it employs the UK Land Registry’s information, which includes 100% of all <country-region><place>UK</place></country-region> home sales. Other <country-region>UK</country-region> house price measures, such as the <place><city>Halifax</city></place> or Nationwide benchmarks, cover less than 15% of all sales.
Notwithstanding the implosion and ensuing nationalisation of much of the UK banking system, and the exceptionally acute recession experienced in that country, house price growth in Australia and the UK has been nearly identical over the last two decades. In fact, what is most noticeable from this analysis is the much more rapid run-up in <country-region><place>UK</place></country-region> house prices (red line) in the years before the crisis, which significantly exceeded Australian gains. Click to enlarge
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyesept286.gif"><img src="/images/stories/joyesept286thumb.gif"></a>
 
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I want to conclude today’s column with some more charts from the RBA’s Financial Stability Review. The first examines “non-performing” home loans (ie, mortgages in arrears) in <country-region>Australia</country-region>, the <country-region>US</country-region>, <country-region>UK</country-region>, <country-region>Canada</country-region> and <country-region><place>Spain</place></country-region>. What is important to remember when studying this chart is that mortgage rates in <country-region><place>Australia</place></country-region> are much higher than they are in other countries. All things being equal, that would suggest that the probability of default should also be higher in <country-region><place>Australia</place></country-region>. Yet according to the RBA’s latest information, only 0.8% of all Australian home loans are currently three months or more behind.
<img src="/images/stories/joyesept287.gif">
If we assume that there are about 5 million households with mortgages, that implies that only 40,000 are materially behind on their repayments. That is slightly less than the monthly number of sales transacted in <place><country-region>Australia</country-region></place>’s housing market. While the default rate has understandably trended up as the RBA has lifted interest rates to above-average levels, it remains very low by international standards (compare the lower blue line with the <country-region>US</country-region>, <country-region><place>UK</place></country-region>, Spanish and Irish rates). 
The next chart I want to reflect on quantifies the size of “impairments” in <country-region><place>Australia</place></country-region>’s banking system by loan type. As is the RBA’s wont, we are looking at three different charts compressed into one. The first left-hand-side panel shows impairments of residential home loans. Focus on the red line. We can infer here that there are about $2 billion worth of “bad” home loans in <country-region><place>Australia</place></country-region>. In total, there are more than $1.1 trillion home loans outstanding, so only 0.2% are truly impaired.
<img src="/images/stories/joyesept288.gif">
The blue “past due” line above the red impairments looks to be around $8 billion. That makes intuitive sense: if we multiple the 0.8% national mortgage default rate by the $1.1 trillion of loans outstanding we get $8 billion to $9 billion. If we multiply the 40,000 borrowers who are three months behind on their repayments by the average loan balance of $200,000, we also get about $8 billion. 
Now move to the next, middle panel in the chart above. This shows the same analysis for all the banks’ “business” lending activities. Observe how total impairments are around $20 billion. That is, the size of business impairments in <place><country-region>Australia</country-region></place> is about 10 times larger than residential home loan impairments. Recall that this is similar to what happened in the 1991 recession: most bad debts in the banking system originated from the business, not residential, lending portfolios. 
In the next chart, the RBA splits out commercial property loans from total business lending. You can see in the left-hand-side panel that commercial property impairments are much higher than the overall business lending average, which gels with the regulator’s view of commercial property’s more elevated risks.
<img src="/images/stories/joyesept289.gif">
 
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My final two charts illustrate RBA analysis of changes in Australian banks’ lending standards, and <country-region><place>Australia</place></country-region>’s house price-to-income ratio.  In the first we can see that loan-to-value ratios (LVRs) have fallen significantly in the period since the GFC. Indeed, elsewhere in the Financial Stability Review the RBA explains that the recent increase in mortgage arrears has been largely driven by loans that were extended before the crisis hit, not subsequent to it, as is often claimed.
<img src="/images/stories/joyesept2910.gif">
The last chart reinforces Rismark’s analysis of changes in dwelling price-to-income ratios over time. The RBA finds that <country-region><place>Australia</place></country-region>’s “all regions” dwelling price-to-disposable household income ratio is about four times (the actual levels are less useful than the change in the ratio over time). Importantly, this ratio has been falling for a while now; we have had no house price growth in about one and a half years while ABS-reported disposable household incomes have been expanding at a circa 8% per annum pace based on the latest June quarter National Accounts. Like us, the RBA finds that with the exception of a brief dip during the GFC, Australia’s house price-to-income ratio has fallen to its lowest level since about 2003.
<img src="/images/stories/joyesept2011.gif">
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.
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