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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Despite house buying sentiment tracking above levels last seen in 2002, the market will remain soft in spring due to unemployment concerns, according to Westpac economic and Red Book author Matthew Hassan. 
Hassan noted the 15.5% jump in the bank’s “time to buy” index in September – a component of its consumer sentiment survey – taking the index to its highest level since September 2009. 
“Somewhat incredibly the September reading is also the highest reading since March 2002 (excluding the 2008-09 period when mortgage rates were sub- 6% and generous first home buyer incentives were being rolled out),” he says.
“While this is positive heading into the spring selling season, we caution that it does not guarantee an upturn. 
“The index often says more about affordability than market prospects; that is, the September rise may have more to do with softer prices and shifting rate views. 
“A similar series for the US did not capture the extent of the slump there and has shown strong buyer sentiment since February 2009. US housing has yet to recover.”
 <img src="/images/stories/redbooksept22.gif">
To form a more accurate picture in Australia, Hassan says the index should be used in conjunction with unemployment expectations. 
According to the September Westpac–Melbourne Institute Consumer Sentiment Survey, unemployment expectations rose 8.5% in September following on from a 2% gain in August, suggesting households are observing a softer jobs market and are becoming increasingly insecure in their jobs. 
Taken together, Hassan says these indicators point to a net softening in demand conditions rather than a pick-up. 
This is despite fewer consumers now likely to be expecting an interest rate rise over the coming months. 
Westpac did not question consumers in September on their mortgage rate expectations  (in August, 73% of consumers said they expected mortgage rates to rise in the next 12 months with 29% picking an increase of over 1%) but Hassan says it would be reasonable to assume “considerably fewer respondents would now expect higher rates over the year ahead”. 
Despite this, consumers remain risk averse, with Westpac forecasting a continuation of the high levels of household savings that have been a feature of the last few years. 
The bank forecasts the savings ratio to stay in the current range of 10.5% to 11.7% of national over the next 12 months.
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lschlesinger-FZcF9M3vE6

Sentiment for houses rises but upturn in market unlikely: Westpac Redbook

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As recently as 2009, 46% of the real asset holdings of Australian real estate investment trusts (A-REITs) were held in overseas markets, predominantly in the US.
Investing outside <country-region>Australia</country-region> had become more common as property assets became more expensive in <country-region><place>Australia</place></country-region> and overseas assets represented diversification benefits. Interest was stimulated by the relatively low cost and availability of capital. Centro exemplified the aggressive debt-fuelled expansion strategy by acquiring three US portfolios for more than US$10 billion in the 18 months to February 2007. 
However, as the GFC unfolded, A-REIT investor sentiment turned against overseas asset holdings as prices collapsed. Wide-scale withdrawal back to <country-region><place>Australia</place></country-region> was undertaken. This was achieved by sale of both portfolios of assets and investment management entities.Significant losses were incurred as a result.
Companies no longer listed in Australia include the failed American and European Rubicon Funds and Macquarie DDR Trust, which held a portfolio of American community shopping centres. It was acquired by American EPN Group this year. 
Overseas assets now represent approximately 30% of real assets held. 
Westfield responded to the market by splitting some of its Australian and New Zealand assets into a new externally managed pure A-REIT in late 2010 while the balance of the international assets sit inside the larger Westfield Group alongside the funds management company. 
While the Australian property market represents only approximately 2% of the global direct investment property market, Australian investors are wary of further overseas exposure without a comprehensive portfolio strategy and appropriate, well-considered allocation policies applied by experienced global REIT managers.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank">Atchison Consultants</a>.
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markwist-Vaq6S8Xoby

Why Australian REIT investors are looking closer to home

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Westpac has selected the Paris end of Collins Street for its new Melbourne headquarters, rather than join rivals NAB and ANZ, which have headquarters in the Docklands precinct.
The bank is set to occupy between 14,000 and 18,000 square metres of office space in a new 20,000-square-metre, 10-level A-grade office tower to be constructed by Grocon and APN Property Group.
About 1,000 square metres of the building will be set aside for retail use.
The proposed site for the tower is currently occupied by an Art Deco multi-level car park behind the historic Scots Church on the corner of Russell and Collins streets.
In 2006 trustees of the church agreed a 99-year lease agreement with Grocon/APN to develop the site.
Under the agreement APN will pay Scots Church an initial $5.5 million, then an annual rent of $1.5 million.
Elements of the car park will be retained in the construction of the new building.
The heritage-listed church dates back to 1841 and is Melbourne's oldest Presbyterian Church.
In 2004, NAB became one of the first major corporate tenants in Docklands when it moved 3,500 staff into its new headquarters at the corner of Harbour Esplanade and Bourke Street.
In early 2010, ANZ moved into new 87,000-square-metre premises  at 833 Collins Street, the largest office building in Australia.
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Westpac takes Paris end of Collins, leaves Docklands to other banks

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The rich are watching their pennies more than households with relatively low levels of financial assets, according to the Reserve Bank of Australia.
Noting the fall in financial asset prices over recent years had led many households to increase their savings, the RBA assistant governor Philip Lowe suggests the biggest savers were those concerned about losing their jobs.
Conversely, the smallest increases in saving were for those who have become less concerned about losing their jobs.
Households that own their dwellings outright are also not participating in Australia's savings phenomenon as much as mortgage-encumbered households, Lowe notes.
"The saving ratio has increased for those that rent, for those with a mortgage and for those that own their dwelling outright, although, the increase in saving has been smallest for those households that own their dwelling outright," he told the Australian Economic Forum.
It was also apparent that the increase in savings had been largest for younger households and smallest for older households.
"This result holds for both households that are renting and those that are owner-occupiers," he notes.
"Taken together, this evidence is consistent with the idea that higher housing prices and debt levels have contributed to a reassessment of saving decisions, although, obviously, the reasons for the increase in saving go well beyond what has happened in the housing market.
"Higher housing prices have required higher deposits and this requires more savings.
"This trend has probably been reinforced by developments on the lending side, with most lenders lowering their maximum loan-to-valuation ratio over recent years,” Lowe says.
"Saving decisions today are also likely being influenced by the earlier rise in debt levels relative to incomes and by debt servicing burdens that are staying higher for longer.
"The adjustments seem to have been particularly pronounced among younger households who are hoping to enter the housing market or who have recently entered the market."
Lowe notes there was a significant rise over time in the share of total expenditure on housing.
"When the Household Expenditure Survey was conducted in the early 1980s, housing accounted for a little less than 13% of total expenditure.
"By way of contrast, in the recent survey this share had increased to 18%, the largest change in any single expenditure category.
"The bulk of this change took place over the past decade and largely reflects the rise in interest payments on mortgage debt due to higher levels of debt relative to income."
The speech noted the relationship between the change in saving and a household's holdings of financial assets (excluding deposits) among those with above-average holdings of financial assets and those with below-average holdings.
The RBA has calculated the median change in the saving ratio for each group between 2008 and 2009, the year of the financial crisis.
"It is clear that for all five income quintiles, households that had relatively high levels of financial assets before the financial turmoil increased their saving by more than households with relatively low levels of financial assets."
He concluded his speech by suggesting it was "reasonable to expect that, at some point, the impact of these factors will begin to wane."
"Although exactly when remains an open question," he notes.
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jchancellor-FAypfDUnLy

Rich watching their pennies after almost losing their assets and income

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The Lend Lease Group syndicate is up against a Brookfield Multiplex-led consortium as the final two tenders to develop the Waterbank prime riverside site in Perth.
"East Perth Redevelopment Authority is in the final stages of evaluating two submissions from Lend Lease and Brookfield Multiplex Constructions with Frasers Property Australia, to develop Waterbank and deliver a new precinct for local residents and visitors to the city," says  Western Australian Planning Minister John Day.
The government's urban development agency is in the final stages of evaluating bids for the right to develop a four-hectare site known as Waterbank near the city centre.
Waterbank is the first stage of a planned $2.6 billion development of Perth's riverside area, which would involve building 3,400 homes and more than 80,000 square metres of retail and commercial space.
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Lend Lease and Multiplex vie for Perth Waterbank tender

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With Australia looking well-placed to cope with any fallout from the IMF cutting global growth forecasts, Aussie Home Loans executive chairman John Symond says there should be strong demand for inner-city apartments in Sydney throughout spring.
“The recent state budget and its attendant stamp duty concessions should see demand rise for apartments in the lower price range,” Symond has told Property Observer.
“New units located close to the CBD and public transport link will be the winners in the spring of 2011 – easily beating older units and homes,” he says.
“Also fuelling demand for units are empty nesters who are leaving their homes for townhouses or apartment living.”
Overall, Symond says the Sydney real estate market continues to cool, as the market still feels the effects of the Reserve Bank’s decision to lift rates late last year.
“I expect house prices to be solid in the under $1 million price range, while those above that mark will continue to be soft.
“More affordable houses and units will experience stronger demand as the First Home Buyers still receive State and Federal incentives to purchase.
“While dwellings within 15km of Sydney’s CBD have historically performed the strongest, we are now seeing healthy growth in the more affordable suburbs in Sydney’s west, such as Blacktown, and this trend should continue.”
The luxury end of the market will continue to feel pain, according to Symond.
“Houses in the upper price range, especially in the Eastern Suburbs, will continue to experience softness – with many prices paid in recent months at least 20% below their peaks of a few years ago.”
Symond also voiced concerns at the lack of affordable properties in the Sydney market.
“The supply of new rental properties continues to be slow, leading to an acceleration in rents – creating further pressure on those who are keen to get into the property market for the first time,” he says.
“Many young people are now effectively priced out of Sydney property ownership and face accelerating rental payments. This problem of affordability should be urgently addressed at both a federal and state level, with new housing lots and units required.
Despite these concerns, Symond says there  are “opportunities for the astute purchaser who does their homework, as there is a strong prospect of lower rates over the next few months”.
“Banks continue to favour home lending over small businesses and commercial lending and that will fuel growth.”
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Sydney housing market will weather economic storm: John Symond

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Housing markets in mining towns are outperforming some of the most prestigious suburbs in capital cities, but investors should be cautious due to their dependence on the resources boom, according to RP Data’s Tim Lawless. 
The boom is being driven by high levels of demand coupled with a scarcity of quality housing. 
"With the non-rural commodities sector gathering pace, resource-driven regions should continue to prosper,” Lawless says. 
But he warns prospective investors and home owners in these locations that economies with a singular dependency on one given commodity can be risky. “Any weakness in the resources sector is likely to be reflected within the housing market,” he says. 
Western Australia’s Roebourne, Port Hedland (pictured) and Broome council areas have recorded the highest median house prices outside of a capital city at $950,000, $775,000 and $660,000 respectively over the year to June 2011. 
In comparison, the median house price in Perth stands at $470,000 and has depreciated by 6% over the last 12 months according to the June Quarter Market Facts report carried by the REIA. 
In Queensland the resource-intensive regions of Isaac ($445,000) and Gladstone ($415,000) are showing the highest median house prices of any council region in the state outside of South East Queensland and are on an equal footing with Brisbane, where the median price currently stands at $435,000 (a drop of 5.4% for the year) according to the REIA.
Besides strong price appreciation, rental yields in most mining towns are well in excess of the capital city averages.
The highest indicative gross rental yields of any council region around Australia are found in Port Hedland at 12.7%. Queensland’s Cloncurry and Isaac are a close second and third, returning an average gross yield of 11.4% and 11.1% respectively.
Rental yields in capital cities are half or less than half of mining town returns with RP Data calculating the yield on Sydney houses for July at 4.4% for houses and 5.2% for units.
The highest capital city rental yields are currently being achieved in Darwin, at 5.2% for houses and 5.8% for units.
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Mining town prices booming but vulnerable

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The housing markets of Sydney, Brisbane and Melbourne are facing significant pain over the coming years from the government’s decision to drastically cut migration numbers, according to Tony Crabb, national head of research at Savills.
Crabb says the policies are been driven by politics – xenophobic fears in Western Australia, the west of Sydney and Queensland – rather than based on sensible policies and the needs of the economy.
“We should be making it easier for migrants to come here – most definitely. Over the coming decade more people will be leaving the working force then entering it putting pressure on our health care system and there will be less taxpayers to pay for it all,” he says. 
The immigration cuts – about 200,000 a year, according to Crabb – come at a time when demand for migrants exceeds supply, unemployment sits at just 5%, Australia is faced with skilled labour shortages, and countries in the Western world have unemployment as high as 20%.
 <img src="/images/stories/immigrationchart.gif">
“Immigrants are responsible for snapping up many of the house-and-land packages in the new housing estates as well as existing properties, all of which flows back into the economy in the form of credit provided for bank and demand for retail goods,” Crabb says.
The decline in population growth has also been noted by CBA economist Michael Blythe.
In a recent econ0mic note titled “Manning the barricades” Blythe said population growth was one of the factors that had helped protect the Australian economy during the 2008?09 financial crisis
“The support from strong population growth has gone,” he wrote. 
According to Crabb, the decline in migrants has also played a much bigger role in the decline in retail turnover, which has been largely ignored as everyone focused on the role of the internet.
“[Immigration] is the elephant in the room," Crabb says. 
“No one wants to talk about it, but we have slashed immigration by 200,000 people a year. That equals 70,000 houses, 100,000 cars, 70,000 washing machines, 70,000 dishwashers, and 150,000 beds. Never mind linen, crockery, cutlery, food, clothing and everything else. 
“That’s around $5 billion to furnish a house, and feed and clothe an average family per annum and that’s without adding additional retail expenditure involved in the construction of 70,000 houses, which on current values would be worth circa $400,000 each. 
“No wonder retail is in the doldrums,’’ he says.
Crabb says the cost to the economy, and the retail sector in particular, would be ongoing as the nation’s construction industry began to feel the pinch.
“It will be the housing sector which will feel it next as it starts to clear the workload from the stimulus package of 2009/10,’’ he says. 
“We need to take a comprehensive look, and with some urgency, at what is required to shore up our labour force. There are countries all over the world where well educated people are unemployed – we need them here, now. 
“If the federal hovernment wants to take some action to help retailers and at the same time stimulate our two-speed economy, then they could do worse than take a serious look at this issue,’’ he says.
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Immigration cuts hurting housing market: Savills

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I had a bizarre experience while sitting in my car the other day. I had pulled over in Bligh Street, in Sydney's CBD, and was finishing up a call. In the space of only three minutes, I saw a multi-billionaire plodding up the road, a hedge fund guy worth a couple of hundred million crossing it, another younger fella who runs a Liberal Party think tank, and who will become a federal minister one day, going the other way, and, finally, the former leader of the NSW opposition, who would be premier today had he avoided certain indiscretions. It was kinda freaky. 



Anyhow, it turns out that one of these blokes called me about an hour later and asked me what the RBA had meant by this curious, and market-moving, statement in its <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2011/06092011">Minutes</a> (emphasis added):



"Members were informed that, in Australia, market pricing prima facie pointed to expectations of large cuts in the cash rate by the end of the year, but a range of technical factors meant that market pricing might not be giving an accurate reading of expectations in the current circumstances."



The deputy governor of the RBA, Ric Battellino, reiterated this view in a speech he gave in New York overnight (emphasis added):



“[F]inancial markets seem to have concluded that the risks are weighted towards the Australian economy weakening sharply and, taken literally, seem to be pricing in a reduction in official interest rates towards the unusually low levels reached after the GFC. There are technical reasons why current market pricing may not be giving an accurate picture of interest rate expectations. Nonetheless, markets do seem to have reached a pessimistic assessment and this appears to be based mainly on the assumption that weakness in the US and Europe will flow through to Australia.”



So what gives? Is the RBA and the considerable weight (and knowledge) of financial markets at loggerheads? Yes and no. While the RBA is an economically conservative institution, you tend to find that alumni have a healthy disrespect for the “efficient markets” doctrine, and the sanity of markets more generally. The Lowy Institute’s Stephen Grenville, who was previously deputy governor of the Bank, exemplifies this attitude in his writings. 



To understand the RBA’s scepticism for markets you need to reflect on its role: the RBA is a non-democratically elected institution that unilaterally sets the price of credit in the economy, and less directly, the price of money. In its own way, the RBA is constantly seeking to “correct” markets and their expectations. Another good example of this is when the RBA (rarely) intervenes in the currency market by buying or selling Australian dollars. It says, quite explicitly, that it only does so when financial markets become disorderly and over- or under-shoot reasonable estimates of fair value. Once again, this is a central bank opining that the markets have got it wrong. Interestingly, the RBA has thus far resisted the temptation to sell Aussie dollars during the recent episode primarily because the appreciation of the currency has only served to validate its medium-term view of the world (and is, to some extent, saving it from having to hike rates).



In responding to my friend’s question about the RBA’s back-hander to the financial markets apropos interest rate expectations, I offered the following explanations.



First, the RBA is very likely subtly pointing out that market pricing for interest rate changes is not a forecast or a prediction, as is commonly believed: it is, more precisely, a “probability-weighted price”. 



Imagine you had three potential contingencies for interest rates over the next year in your mind, and assigned each a probability. The market price would be equivalent to your “expected value”, or your probability-weighted interest rate estimate. 



Now, if I asked you to supply a specific prediction, you would nominate your most likely outcome. Note that this will be different to the expected value. It will be especially different if the expected value is being influenced by a reasonable probability around some catastrophic event, as it is today. 



For example, you might say that you think in your “base case” there is a 70% chance rates will stay on hold until December. But then you add the rider that if, say, the Euro zone were to break up, an event to which you assign a 30% probability, the RBA would be compelled to slash rates by, say, 100 basis points, as it did in October 2008. 



Observe how this gives you a “probability-weighted expectation” of slightly more than one rate cut by the end of the year (if you multiply 70% by the cash rate and 30% by a 100 basis point lower cash rate), which is markedly divergent to your “base case” of no change.



The second thing the RBA is likely canvassing is that the short end of the yield curve, which people use to infer “market forecasts” for rate changes over the next one to two years, is being artificially buoyed by the very high demand for cash (e.g., bank bills) and other near-term, liquid securities. In the currently turbulent environment, many institutions, such as banks and pension funds, are parking their money in cash until the dust settles. This demand for cash has the effect of driving up prices and reducing implied yields. The net result is lower interest rate expectations for the period covered by the securities in question.



The other technical distortion we are seeing is in middle (or “belly”) and long ends of the yield curve, which are dominated by the three-year and 10-year Australian government bond prices. These prices are being artificially boosted for reasons I have explained before: viz., central bank and institutional portfolio diversification of their sovereign investment risks.
 
<hr class="system-pagebreak">
 
As is now well known, Australia is one of the few remaining AAA credits in the world, and has by far the strongest and healthiest balance-sheet of any country in the OECD (including Switzerland). We are pretty much the only developed country that has generated 20 years of uninterrupted growth and avoided recessions during both the 2001 “tech wreck” and the 2007-08 GFC. Furthermore, Australia offers growth diversification away from the North Atlantic economies, which, according to the IMF, account for less than one-third of the global growth pulse. In particular, 65% of Australia’s exports go to developing nations, while 75% go to Asia. The chart from the IMF below shows the expected growth gap between emerging and developed countries over the next two years. Australian investments give you exposure to the top yellow line.
<img src="/images/stories/joyesept22g.gif">
Here is interesting to observe that notwithstanding the extreme media pessimism we are greeted with every day about North America and Europe, the global economy should be chugging along at a trend rate of growth in 2011 and 2012 even assuming very poor conditions in the advanced economies.



Given their high debt-to-GDP ratios, political dysfunctions, ageing populations, and the absence of leverage to emerging economies, many central banks are, at the margin, trying to quite rationally reduce their exposures to the traditional “safe haven” currencies (e.g., the US greenback, yen, sterling, and Swiss franc). And since there are few alternatives in view of the pegged Chinese currency, there has been a tremendous increase in the demand for untainted Aussie sovereign debt with the likes of the Russian central bank announcing that they will start buying it for the first time.



Similar logic applies to global fixed-income investors that hold sovereign credits: in the current climate, safe yet high yielding Australian government bonds are at the top of their shopping list. When buying Aussie bonds, you buy Aussie dollars, so this also explains the currency’s (relative) strength. 



A related wrinkle here is that many offshore buyers of Aussie government bonds are “price indifferent” because the yields are so high and they can hold these assets ‘to maturity’ on their balance-sheets. That is, central banks don't necessarily need to worry as much about “mark-to-market” risks.



The rise in the price of Aussie government bonds as a structural artefact of global investor and central bank portfolio diversification has in turn reduced their implied yields (given the actual interest payments on the bonds are fixed). And so longer-term Australian interest rates also appear to be very low, which would normally insinuate dismal growth prospects. This is exactly what has enabled the major banks to cut the cost of their fixed-rate home loans to more than one percentage point below the headline variable rate.



Within the yield curve, the three- and 10-year government bonds provide the “benchmark” prices. If the three-year price surges, it will tend to bleed out through the rest of the curve. More specifically, the shorter one- and two-year interest rates have very high correlations with three-year rates. In this way, short-term interest rate expectations can be pushed down further as a technical function of the global appetite for Australian sovereign credit.



Taking all of the above factors together, the RBA is basically saying that market expectations are giving you a bum-steer on the likelihood of rate cuts. Sure, we may get them. But absent a total meltdown, they are unlikely to come as quickly or generously as market prices imply.

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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Absent a total meltdown, sharp rate cuts unlikely

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The Formula 1 racing group McLaren store at the luxury London residential development One Hyde Park has been put up for sale through Savills for £11.5 million, following the sale of the neighbouring Rolex-occupied store last month.
The 296-square-metre store is on offer at a net initial yield of 3.29% and let back to McLaren on a 15-year lease at an initial rent of £400,000 a year.
Last month the Russian investor <a href="https://www.propertyobserver.com.au/retail/russian-buys-%C2%A313-million-rolex-store/2011090251404" title="Rolex store" target="_blank">Grigory Guselnikov bought the Rolex store for £13 million</a>, reflecting a net initial yield of 2.91%.
A third retail store -- to be let to Abu Dhabi Islamic Bank -- is expected to open this year.
The Knightsbridge retail-residential Candy Bros-built complex, which sits close to the big department stores Harrods and Harvey Nichols, is one of London's most expensive developments.
Investors seeking the best shops on the UK capital's prime shopping streets have included the sale of the Cartier store on Old Bond Street, which sold at £18.65 million in July, reflecting a reported record-low yield of 2.8%.
“Investors are investing in London because rents have been growing and growing consistently for the last few years,” CB Richard Ellis executive director Phil Cann told Reuters.
“London, Paris, New York are considered as safe havens at the moment for cash, and it's about return of capital, not returns on capital,” he says.
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