Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

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

<html><body>
Take-up of office space in Parramatta, often dubbed “Sydney’s second CBD”, increased by 81% for the 12 months to June 2011, according to research by Savills.
The market has now “passed through the trough in the cycle” and is expected to stabilise in the coming 12 months.
The Parramatta CBD – the fifth-largest suburban office centre in Australia, with 685,171 square metres of stock as at June 2011 – is expected to benefit from a strong recovery in the Sydney CBD market, though “ confidence and sentiment remain the biggest drivers”.
In quality grade terms, approximately 34% of office stock is A grade, with B and C grade space comprising approximately 45% of the market.
In the 12 months to June 2011, Savills identified 22,492 square metres of leases in the Parramatta market, with demand for space from the finance and insurance sector accounting for 92% of the stock, or 20,763 square metres.
While this is a big jump on 2010 figures, it is still well down on the five-year average of 52,665 square metres.
The overall vacancy rate in Parramatta decreased to 9.3% in the 12 months to June 2011, according to the latest figures released by the Property Council of Australia, with B-grade stock vacancies falling from 12.4% to 5.6%.
Net A-grade rents in Parramatta typically cost between $270 and $355 per square metre per annum, and B-grade buildings lease for between $200 and $245 per square metre per annum. February was a particurlarly strong month for leasing activity, with insurer QBE and professional services business Deloitte pre-committing to 18,000 square metres of space at Eclipse Tower, a 19-storey office tower to be built at 60 Station Street.
The 25,000-square-metre building is being developed by Leighton Properties and UK-based Grosvenor and is due for completion in 2012.
According to Savills, these pre-commitments are a positive sign for the Parramatta office market; “however, it remains to be seen if this will have any long term effect on rental levels within the locality”.
Looking further ahead, there are currently three projects totalling more than 85,000 square metres of mooted new stock in the supply pipeline.   However, Savills says none of these projects will proceed without significant levels of pre-commitment.
</body></html>

lschlesinger-FZcF9M3vE6

Parramatta office leasing up 81% in a year: Savills

<html><body>
Melbourne house prices have mounted a strong comeback in the June quarter, rising 5.4% to a median of $590,000, according to the latest Real Estate Institute Market Facts report. 
The gain reverses a 6% drop over the March quarter, when the Melbourne median price fell to $565,000. 
Acting REIA president Pamela Bennett called Melbourne market the “standout” performer reflecting “a very stable and strong market and resilient house sales”. 
Sydney house prices remained virtually unchanged, up 0.1%, but remains head and shoulders the most expensive in the country at a median value of just over $644,000. 
Median house prices decreased in four of the eight capital cities over the quarter. The largest decrease was evident in Darwin, where the median house price declined 6.4% to $515,000.
The median house price in Perth decreased 3.1% to $470,000 over the June quarter.
Nationally, median house prices increased by 1.2% to $541,188, with other dwellings (units) up 0.5% $430,230. These are the largest increases recorded since the September quarter of 2010. 
The improved performance of the property market over the June quarter was accompanied by an increase in the value of owner occupier and investment loans; both recorded a significant recovery compared to the previous quarter, increasing 12.8% and 19.3% respectively.
“There are signs of some slowing in the pace of global economic growth which may pose some challenges to policy makers to maintain stable economic performance. Maintaining cash rates at the current level will provide respite to mortgage holders and stable economic growth,” Bennett says.
There were also strong gains in Hobart, where the median price increased by 2.4% to $370,000 following a 5.6% fall in the March quarter. 
On the rental front, rents for three-bedroom houses remained unchanged in most capital cities. Hobart and Darwin were the only capital cities where median rents for three-bedroom houses recorded a change declining 8.7% and 2.7% respectively. 
Darwin maintains the highest rent for a three-bedroom house, at $540 per week, while Adelaide recorded the lowest rent for this type of dwelling, at $320 per week.
Sydney recorded the highest weekly rent for two-bedroom other dwellings, while Adelaide and Hobart recorded the lowest weekly rents.
</body></html>

Melbourne house prices up 5.4% in June quarter: REIA

<html><body>
Further encouraging signs for the housing market have emerged in the September Westpac Melbourne Institute Index of Consumer Sentiment. 
The sub-index tracking responses on “whether now is a good time to buy a dwelling” jumped by 15.1% following an 8.1% overall gain in consumer sentiment from August to September. 
“[The sub-index] is now at its highest level for two years and is certainly sending an encouraging signal to an otherwise subdued housing market,” says Westpac chief economist Bill Evans. 
However, he cautioned that there is a risk that this signal may be overstating the prospects for the housing market. 
“With households still being particularly concerned about their own financial position over the next 12 months there is a risk that, while seeing value, they will not be prepared to act on this,” Evans says. 
He says support for the bank’s cautious view on housing can be seen in households’ attitudes towards the wisest place for savings. 
“This question did not send quite the same positive message to the housing market with a modest increase (14.6% to 16.8%) in the proportion of respondents who favoured real estate as a wise place for savings. That was despite a further reduction in those favouring equities from 8.4% to 7%.
“In both cases household favourability continues to run at historically low levels.” 
The Westpac Melbourne Institute Index of Consumer Sentiment now stands at 96.9 compared with 89.6 recorded in August, a “surprisingly strong result” that Evans says “emphasises just how important interest rates are to households”. 
“Concrete evidence of the improved outlook for interest rates came shortly after the August survey when the major banks actually lowered their fixed-rate mortgage rates. While possibly coming as a surprise this action would have comforted anxious households,” Evans says. 
“The second contributing factor is likely to be the strong recovery in economic growth in the June quarter which was reported to have been 1.2% following the contraction of 0.9% in the March quarter. That development gained particularly wide media coverage and would have boosted households’ spirits.” 
Despite the surprisingly strong September rise, the index remains at a weak level overall, reflecting the very weak starting point in August. 
It is 14.8% below the average reading in 2010; 14.4% below its level a year ago; 7.1% below the average for the first half of 2011 and 4.2% below the reading in June. 
All the components of the Index increased in September. 
<ul>
<li>The sub-index tracking respondents’ assessments of family finances compared to a year ago surged by 11.2%</li>
<li>the sub-index on expected finances over the next 12 months was up by 9.5%; </li>
<li>the sub-index tracking the outlook for economic conditions over the next 12 months surged by 16.6%;</li>
<li>the sub-index measuring consumers’ 5 year economic outlook was up by 4.5%; </li>
<li>sentiment towards buying a major household item increased by 3.2%.</li>
</ul>
</body></html>

Consumer sentiment for buying a house at two-year high: Westpac

<html><body>
The Trenerry project at Abbotsford offers a rare opportunity of riverfront living in Melbourne close to Dights Falls.
Set on the banks of the Yarra River – once dominated by breweries, tanneries and woollen mills – Trenerry Abbotsford will have 109 apartments upon its mid-2013 completion.
With sales set to start next month, its one-bedroom, one-bathroom apartments are priced from $465,000, with the two-bedroom, two-bathroom apartments from $530,000. Both configurations come with one car park.
It has been designed by Carabott Holt Architects, combining new design with the character of the site’s former industrial past.
The building will be fronted by its heritage façade.
“It also features a chimney stack, giving Trenerry a look and feel that is unmistakably Abbotsford,” says Rob DiCintio, director of Trenerry Property Group.
“The desire for waterfront living in city-fringe areas is an evolving trend in the Melbourne market, and Trenerry offers both,” DiCintio says.
The <a target="_blank" title="Abbotsford" href="/news">Abbotsford </a>apartments will be built over seven levels.
There will be eight one-bedroom apartments, 97 two-bedroom units, and four three-bedroom units.
Some 92 of the two-bedroom apartments will have two-bathrooms, along with all the three-bedroom apartments.
The average apartment size will be 75 square metres internally, plus all apartments come with balconies, offering riverfront, CBD or Studley Park views. The development comes with easy access to the Capital City Trail.
<img src="/images/stories/trenerrycar.jpg">
There are 115 car spaces, one for each apartment, and two each for three-bedroom apartments. Same-floor parking is available for 60 of the apartments.
Storage spaces have been allocated to all apartments. 
DiCintio says buyers will have the choice of two colour schemes – one dark and one light.
Buyers can select colour scheme in the contract of sale once the display suite opens next month.
“Trenerry is committed to achieving a five-star first energy-efficiency rating, and we have included initiatives such as large rainwater tanks natural lighting in car parks,” DiCintio says.
The Trenerry Crescent development site, wedged between Collingwood Football Club's Victoria Park stadium and the Yarra River, was bought last year from Australand for a reported $6.6 million.
The developers, Trenerry Property along with the Victor Smorgon Group and the Kanat family, are highly experienced developers, having been involved in various residential and large-scale retail and mixed-use developments over the past 20 years.
The Trenerry apartments are listed through Oliver Hume.
</body></html>

jchancellor-FAypfDUnLy

Trenerry Abbotsford development brings residential to the riverfront

<html><body>
Australia’s cities are heading in the wrong direction, according to American futurist Joel Kotkin, a world-renowned supporter of suburban development, who says we should be expanding outwards rather than looking to create our own mini-Manhattans.
Kotkin, who hails from New York but now calls Los Angeles home, is well-placed to comment on whether Australian cities are developing in the right direction.
Los Angeles sprawls outwards into never-ending suburbs while <a href="https://www.propertyobserver.com.au/residential/start-spreading-the-news-australian-cities-must-become-more-like-manhattan-christopher-joye/2011090151384" title="Australia must become more like Manhattan" target="_blank">New York skyscrapers rise up to the heavens</a>.
“I am from New York. You are not Manhattan,” is how he puts it rather bluntly, adding that there are only a handful of places in the world that are conducive to Manhattan-style living.
His criticisms are manifold, ranging from environmental to emotional.
He warns that high-rise living has the potential to ruin what is great about cities like Melbourne and Sydney – the ability to live 15 minutes from the CBD and have a backyard.
Secondly, he worries about who is buying up these apartments and argues that the market in Australia for high-density living is not big enough to sustain the number of apartments being built.
Instead, wealthy businessmen from overseas who want an apartment close to the city who are buying up many of the upmarket ones while Asian families looking for an apartment for their kids to live in when they are studying in Australia are snapping up the studios.
This makes these new suburbs vulnerable to what Kotkin calls the Hong Kong effect – suburbs that feel deserted, where there is no one on the streets.
Anyone who has taken a walk around Docklands after dark might have experienced something similar. Indeed many Australian-based property analysts have made similar observations, with the likes of Metropole’s Michael Yarney noting the large apartment uptake by investors and the sheer number of inner-city apartments up for sale at the moment.
Kotkin calls the move to build greener apartment blocks “garbage” and says all high-density housing does is raise the temperature.
If you want evidence of this, all you need to do he says is spend a summer in New York and note the difference in temperature between Brooklyn and Manhattan, he says.
So what does Kotkin suggest?
He believes Australian cities should be expanding outwards into low-density suburbs supported by better transport infrastructure, such as bus shuttle services and other rapid transport solutions.
“‘Telecommuting’ should be encouraged.  This is a work arrangement where the daily commute to work is replaced by home-based (or even café-based) mobile technology with employees only coming into the city when needed, and perhaps outside of the tradition rush hour,” Kotkin says.
Not surprisingly, Kotkin is very supportive of the government’s National Broadband Network infrastructure project.
With just months to go until construction of the first high-rise Barangaroo building in Sydney and the last parcel of land in Melbourne’s Docklands recently hived off to developers, the sustainability of these high-rise precincts will come increasingly under the spotlight.
His visit to Australia coincides with leaking of the so-called bank “blacklist” of more than 370 no-go apartment projects.
While none of the major banks owned up to the blacklist, if the blogosphere and Twitter responses are anything to go by, the general public are not overly enthused at the thought of Australian cities becoming awash with high-rise apartments (some apparently featuring windowless bedrooms) with many urging the list to be published.
This surprisingly supportive response, perhaps answers the question: Are we ready for Manhattan-style living?
</body></html>

Urban sprawl should go out, not up

<html><body>
Hobart was the only capital city to notch up an increase in online property listings during August, jumping by 2.2% to a total of 3,536.
The total national online residential listings decreased by 3.8% during August to a 362,793 total.
But despite the monthly declines in the seven other capital cities, SQM Research says stock on market sits 23% higher year-on-year – an increase of 69,229 properties since August 2010.
Perth recorded the largest monthly decline, with listings down by 7.1% or 1,546 during August to a 20,207 total.
Melbourne had the largest year-on-year increase in stock.
With 44,522 listings, Melbourne’s listings are up 56.8% or 16,127 over the year.
SQM managing director Louis Christopher noted no capital cities experienced a yearly decline in stock, however Perth recorded the most modest year-on-year growth at 17.8%.
Sydney’s increase of 18.8% or 4,837 listings since August 2010 puts its total listings at 30,606.
“The results for August have been surprising,” Christopher says.
“We were expecting a rise in listings and instead we have had a noticeable fall.
“This still could be a seasonal effect and it also could be vendors withdrawing their properties on the hope of relisting during better market conditions. Nevertheless, our base case here is that listings will rise during the spring selling season.
“If that were to not materialise or only rise marginally, this would be one signal to us that the peak in supply would be reached,” he says.
<img src="/images/stories/sqmsept14.gif" style="border-style: initial; border-color: initial;">
Photo courtesy of Tourism Tasmania
</body></html>

Property listings decrease in all capitals but Hobart in August, but stock still up for the year

<html><body>
Australian dwelling prices have, generally speaking, demonstrated what could be most accurately described as a controlled moderation since the middle part of 2010. For example, according to RP Data-Rismark (the most closely watched dwelling price series), the seasonally adjusted hedonic price series for capital city house values declined by 2.6% year on year as of June 2011. Similarly, national “rest of state” house values fell by 2.5% year on year.
This recent example of a softening of dwelling prices in Australia is in stark contrast to the trend evident over the year to June 2010. According to RP Data-Rismark, capital city house values were up by 10.2% year on year as of June 2010, while national rest of state house values were up by 5.2% over the same period.
HIA has held the view for a considerable time now that the short-term outlook is for a flat to modest downward trajectory in dwelling prices, which in the general sense is what is occurring. The variance within this generalisation is, of course, enormous. At present, dwelling prices are rising, steady, falling, and dropping quite sharply, depending on the local geographical market and dwelling type being observed. Note also that, at the moment, the trading market for property is relatively thin, with the volume of transactions well down on recent years.
Despite the strong performance in housing starts over 2009-10, Australia still possesses an aggregate housing shortage, albeit not everywhere, despite ignorant and spurious claims to the contrary. Australia also maintains a healthy labour market, albeit one that is easing and experiencing not inconsiderable underemployment.
There are a myriad additional and inter-related factors operating in the Australian economy that provide support for dwelling prices avoiding a substantial correction, and we'll get to a few more shortly. Stoking household fears with scaremongering about imminent and substantial corrections to dwelling prices is, of course, not one such factor.
In the post-GFC world, Australian households are a relatively nervous and cautious bunch. Global uncertainty persisted throughout the first half of 2011, which didn't help. At home, widespread expectation of further interest rate hikes amidst confusing commentary on the subject and concern over a carbon tax are but two factors that have severely dented consumer (and business) confidence (and activity). Most recently, debt woes on both sides of the Atlantic have highlighted political ineptitude and selfishness, touched up equity markets, reminded us of how quickly hysterical headlines about the end of the world can re-emerge, and further derailed confidence here at home.
Against this backdrop the downside risks for Australia's short-term economic growth, which HIA has been warning of since late 2010, have increased.
This situation provides a fertile ground for proponents of a property crash to chase headlines with a renewed vigour. They haven’t been shy in this pursuit.
The collapse of the housing market in the United States is often cited as one piece of irrefutable evidence that the Australian housing market will inevitably follow the same path. However, the discussion tends to ignore the important structural differences in our economies and financial systems.
A key difference between the Australian and the US markets is the structure of mortgage lending. Home loans in the US are essentially “limited recourse” (1), meaning a lender's capacity to claw back losses on a bad loan are limited to the value of the home and unlike Australia, lenders have no further claim against the borrower.
This design provides the perverse incentive for borrowers in the US to default on the loan when the size of the loan becomes greater than the value of the property. The contribution that mortgage design made to the extremely high default rates in the US should not be underestimated. Losses as a consequence of this mortgage design would be unlikely to result in the cataclysmic scenario under prudent lending standards and adequately capitalised loans, but when combined with the extremely lax lending standards in the lead up to 2007, lenders left themselves exposed to a significant risk.
Australian mortgages are “full recourse”, hence there is far greater incentive for home owners, in the event of diminished or negative equity, to maintain their mortgages throughout dwelling price fluctuations as lenders are unable to demand additional security or force a foreclosure so long as the repayments continue to be met. The Reserve Bank of Australia has, on a number of occasions, made reference to the fact that Australian lenders were not plagued by the same lax lending standards of many US lenders.
It is also important to note that the profile of housing tenure in Australia is quite different to other countries. Just over 70% of Australian households are owner-occupiers, and only around half of the owner-occupier households have a mortgage. The average level of gearing of owner-occupiers with a mortgage is around 50%, although within this cohort there will be some who have very low gearing levels while some will have high gearing levels. Those with higher gearing levels are typically those who have been in the market for the shortest time.
Home buyers are typically at the greatest risk of experiencing mortgage stress during the early years of home ownership due to the low level of equity and the fact that mortgage repayments typically consume a higher share of household income. In Australia we have in recent times seen a natural increase in levels of mortgage arrears, albeit by a very small amount off an extremely low base. Any suggestion that the rise we have seen is evidence of an imminent market-wide collapse is merely speculation.
Discussion of dwelling prices typically prompts very emotive responses and hence provides easy fodder for sensationalist headlines. Dwelling prices are likely to be flat, perhaps slightly down, over the next 12 months and the rapid price growth experienced over the last decade is unlikely to be repeated, but we are not standing on the precipice of an imminent crash. Those touting an imminent crash in dwelling prices should take the time to reflect on Australia’s inherently sound housing market fundamentals, well-functioning banking industry, shortage of housing stock, reasonably healthy labour market, and above all the importance of avoiding exaggeration at a time of heightened fragility in economic confidence.
Should the current equity market jitters and, at times, widespread hysteria (principally around Europe) of the moment begin to tangibly damage economic activity, then Australia's very sound fundamentals will be tested and the risk to dwelling prices will increase. Australia will stand the test, however, especially when you consider the fact that Australia does not exist in a policy vacuum - we have ample room to move on both monetary and fiscal policy. Indeed HIA is of the view that we should be tapping into this policy capacity now.
Household and business confidence is in danger of being battered further in the absence of immediate action. Exaggeration of the risks to property prices has been a persistent driver of poor sentiment, and if elevated now could hardly be deemed responsible commentary.
Harley Dale is chief economist of the<a target="_blank" title="HIA" href="https://hia.com.au/"> Housing Institute of Australia</a>.
This article is an amended version of a note The Truth about Australian Dwelling Prices posted on the<a target="_blank" href="https://economics.hia.com.au/media/Australian%20Dwelling%20Prices%20-%20August%202011.pdf"> HIA Economics Group website</a> on August 10 by the Housing Industry Association (HIA) chief economist Dr Harley Dale 1: Laws and practices relating to lender recourse in the event of mortgage default vary across US States. Strictly speaking only thirteen states have non-recourse (including California and Florida), although in many other states mortgages are effectively non-recourse owing to the “one action rule”. This rule effectively enables a lender to choose between non-judicial foreclosure (the same as a non-recourse loan) or attempting to obtain a deficiency ruling against the borrower personally through the judicial system. However, if the lender pursues the latter option they forfeit the security. This means the latter option is rarely used due to the cost, time and uncertainty associated with legal proceedings to obtain a deficiency ruling against the borrower. 
</body></html>

cknowlton-QnEa6ntUYP

Talk of a property crash is unfounded and sensationalist: HIA's Harley Dale

<html><body>
One of the current social themes is that the consumer is to blame for wanting a big home.  The new social order – excuse me if I get on my hobby-horse (again, you all say) for a second or two – wants us to buy something smaller and magically make our housing problems disappear.  Sadly, too many who clog up the blogosphere with urban commentary don’t understand the economics of new housing nor a rational buyer’s decision-making process.
Recent statistics published by the CBA show that Australia has the largest homes in the world, with the average floor area of a new dwelling (including townhouses but excluding apartments) topping 214 square metres, up from 150 square metres just 25 years ago.  The average floor area of new free-standing houses also set a record at 245 square metres.  Our homes are much larger than those within Europe and even many American cities.
Why has this occurred?
It is simply economics.  The actual land component of a new house-and-land package is very high and fixed.  The land usually costs about two-thirds of the total purchase price.  This is particularly the case for basic or entry-level new housing.  For example, the land component of a basic $375,000 house-and-land package in Queensland could cost as much as $250,000.
In contrast, a 150-square-metre three-bedroom base level house on that land would cost about $135,000 or about $2,500 per square metre as a total price (including the price of the land).  Now, a larger 250-square-metre four-bedroom house with a study might cost $175,000, making the end package cost $425,000.  The buyer gets 100 square metres of extra house for just $50,000 more.  The total end price per square metre has now dropped to $1,700 or 30% less.
Here is the real rub.  Assuming that the buyer can afford to pay the extra deposit and fund a $425,000 house-and-land package, all it costs – assuming a 10% deposit and using today’s rates – is an extra $10 per day in mortgage payments.  The new home buyer can now own a home that is two-thirds larger for just $70 per week.  To upsize the house, as outlined in the example above, would cost the buyer an extra $3,640 per year.
Given the high cost of land in and around our capital cities, the trend towards larger new homes makes economic sense.  Consumers are just acting in their own interests and are making rational decisions to choose a larger and more valuable home for what is a small additional out-of-pocket expense in the broad scheme of things.
Unless there are real economies in the land content – for example the plentiful supply of subdivided land to keep land prices keen – building a small house on a more traditional-sized suburban block of land is often not the best value for money.
PS And yet the large publicly listed development companies continue to peddle that the key to affordable housing is smaller homes (on smaller allotments). Yet at the coalface, agents tell us they are the last to sell and more often than not they resell quite poorly too.  What would really improve housing affordability would be the timely release of land in major estates.  Too often the big boys drip-feed supply onto the market in order to keep the land prices high via the illusion of undersupply.  Yet the mainstream media don’t question the press releases about McMansions and about how we should really live in smaller homes.   I find such particularly rich given that those who are behind these statements live in whopping big digs on large-sized lots in great city locations.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
</body></html>

michaelmatusik-49YzLvdmNv

Bigger houses make economic sense

<html><body>
How do you like change? Change is not all that popular, is it? 
Most of us would prefer a predictable future in terms of our job security, for our businesses and for our investments. But currently we are experiencing a time of change and unfortunately these are all subject to the whims of the markets and the economy and therefore are not predictable. 
Successful investors not only adapt to change; they exploit it. 
While the majority of Australians will sit on the sidelines feeling sorry for themselves, successful investors are looking for and buying investment opportunities created by the change. That’s right, some people will thrive not just survive in these difficult times. 
While this may seem hard to believe given the amount of negative news bombarding us in the media, the truth is fortunes are always made in times of change. 
Over the next few years the gap between the rich and the average Australian is going to widen. It’s not because the rich will somehow be luckier than everyone else, it’s because they will be able to weather the economic storms better than most because they are financially fluent (they understand how money works.) 
What have you learned from the world economic crisis?
If we have learnt anything from the recent years of economic crisis, it’s that life will always provide you with challenges and obstacles to overcome. One of the big differences between successful investors and the average person is that successful people see these obstacles or setbacks as opportunities to grow and learn from, rather than insurmountable problems or personal failures. They persist through them, seeing them as challenges to overcome and strengthen their conviction as they move forward. 
There’s no denying that the world’s economic crisis is currently creating issues and glitches for our nation and our own personal finances. And this is unlikely to change in the short term. 
We’re experiencing a weakening of market confidence, a hiccup for our economy and a downturn in our property markets, but just like the GFC a few years ago, this is just part of the economic cycle and does not mean the end of capitalism or bankruptcy for Australia. 
The problem is that the media loves to play on our fears and keeps feeding us a slanted view with a bias towards the bad. 
I remember reading and hearing similar doom and gloom prognostications in the early ’70s, during the recession of the early ’80s, in the late ’80s after the stock market crash and again in the early ’90s during the recession we had to have. They said that the less than perfect financial situation back then spelt the end of capitalism, the “end of the world”, and that our property markets would collapse. In fact similar things were said in the early 2000s and again only three years ago when the GCF hit.
It didn’t happen then, and it’s not going to happen now. 
Let’s face it: the financial world around us is in turmoil. The news is full of stories of recession overseas, companies going bankrupt and even countries failing to pay their debts. 
There’s no denying that things are probably going to get worse before they get better. 
Don’t get me wrong, I’m not suggesting this because I’m a fearful person or because I think negatively – I’m not and I don’t. I understand and firmly believe that all progress comes from change. I believe destruction allows for creation – oftentimes of something bigger and better (if I didn’t subscribe to this theory I wouldn’t be a very good property developer, would I?) It’s part of the economic cycle. 
This is a time for cleaning up the excesses of the past and getting our financial houses in order to move on to the next stage of the economic cycle, which is the recovery phase. 
Things are never as bad as they seem
I’ve found that when things are bad people believe they’re going to be bad forever and when things are good people forget the bad times ever existed and think that things are going to remain good forever. 
Neither case is true! 
In fact during booms people are most confident when they should probably be the least confident, as things can’t continue travelling at breakneck speed and above average rates of growth. Similarly, during less prosperous times, things have to eventually turn around. Ironically, people have the least confidence when it’s more likely that things are going to improve...that is, when markets are near their lowest point. 
When prices of properties boomed, the way they did a few years ago, the charge is often led by people who have no real idea about what was going on or what they were doing. They saw something good and wanted to go along for the ride. In reality, the frenzied craze to make big bucks that coincides with a boom means we’re setting ourselves up for the inevitable fall. 
Conversely, when fear makes property values drop significantly below their intrinsic value, we’re unwittingly setting the stage for the next upturn. 
I realise times are tough and you may be having a difficult ride at the moment. But the fact is, this is the right time to educate yourself and get set to take advantage of the opportunities this stage of the cycle presents. Remember that when things are bad they’re never as bad as they seem and when they’re good they’re never as good as they seem. And in reality, it’s primarily human nature that dictates economic and/or market booms and busts. 
The tale of two vendors
Yes, the world’s financial markets are currently having a difficult time, but that doesn’t mean you as an individual, your business or your investment business can’t still prosper. Nothing illustrates this better than a story I heard many years ago about two friends, John and Phillip.  They both lived in the same town and owned and operated hotdog stands on different corners in the middle of the busy CBD. 
John’s hotdog business was going gangbusters. He stood by his stand and yelled to people walking past, “Buy a hotdog! Get your hotdogs here!” and sure enough, people bought his hotdogs. In fact they bought so many hotdogs that he increased his order for sausages and buns and eventually had to buy a bigger cart so he could serve more customers. 
One weekend his son, who was an economic student at university, told him, “Dad, don’t you watch television or read the papers? Don’t you know the world is in a recession and we’re having an economic meltdown? People are losing their jobs; we’re having the worst financial crisis we’ve had since the Great Depression.” 
John thought, “My son is smart, he goes to university, he knows all about economics, I guess he knows what he’s talking about.” 
So John reduced his order for sausages and buns and went back to using his old smaller stand. He stopped yelling out to people to buy his hotdogs, because surely they couldn’t afford them anymore and wouldn’t be interested. Not surprisingly, his sales dropped dramatically and the next weekend when John caught up with his son he said, “You’re right; we certainly are having a serious recession.” 
In the meantime Phillip, who owned the hotdog stand across the other side of town, and didn’t have a son who went to university, and didn’t bother reading the papers (and was blissfully ignorant of the recession or hard times people were experiencing), just kept buying more and more sausages and buns. He kept promoting his hotdogs to the passers by and not surprisingly, his hotdog business continued to grow bigger and bigger. 
So what am I doing now, in these confusing economic times? 
Well, I’m continuing to invest the same way I’ve always done. I’m still looking for investment opportunities and while others are sitting on the sidelines. 
I’m looking to buying more properties below their intrinsic value, so that if values fall further, I’m still protected. By the way I only buy properties in areas that have outperformed the averages in the long term and properties to which I can add value through renovations or redevelopment so that I can create my own capital growth. 
I’m currently involved in two property developments where I am manufacturing capital growth at a time of minimal capital growth. Then I’m keeping these properties as long term investments because I’ve acquired them at “wholesale.” 
Yes some investors will thrive, not just survive in these changing times. 
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
</body></html>

myardney-DFoGhGbSJX

Smart investors know how to thrive in difficult times

<html><body>
The retail industry has suffered under the worst conditions in 20 years and things are about to get worse, according to the latest Deloitte Access Economics Retail Forecasts report, which predicts sales will grow by only 1.5% in 2011-12.
The predictions come as the Productivity Commission continues to hold public hearings in order to hear from businesses and industry bodies on how the government should help the industry as it battles the shift to offshore sales.
The new Access report recognises 2010-11 has been a "disastrous" year for the retail industry, with sales growing just 1.3% in the worst result in two decades. Although incomes have risen, Access says the real problem is a lack of willingness to spend money across all sectors.
Only "other retailing", which includes newsagents and chemists, have performed well with sales up 5.1%. And household goods are performing well, but elsewhere, the report states the retail sector is "barren".
"Retailers now face the prospect of going from bad to worse. Share market falls have eroded some wealth and seen consumer confidence plummet further. Recent data on jobs growth has also been less than encouraging."
Economists have warned volatile share markets are likely to erode confidence, especially after local shares plummeted 3.5% yesterday in one of the worst one-day trading sessions seen in recent years.
There are only two possibilities – volatile share markets cause the RBA to cut rates, or consumer confidence slowly returns over time. Access says the latter is the more likely option, but it means businesses will have to suffer until next year at the earliest, and until 2012-13 when a 3.3% growth rate is predicted.
A number of factors are keeping sentiment down – share market and housing prices falling, jobs growth losing pace, falling housing activity and lower consumer confidence.
"More worryingly for retailers, consumers are now much more concerned about their own job security than they were a few months ago," the report says.
"Recent significant layoffs by large Australian companies Qantas and Bluescope Steel may further affect the confidence of future employment by Australian consumers. Workers who are concerned about their future employment prospects are more likely to save rather than spend."
Forecasts for individual sectors indicate the pain is widespread. Speaking in terms of volumes, food retailing is set to grow only 2.4% this year, with department stores up 2%. Clothing and footwear will grow 0.5%, household goods by 1.9%, and "other retailing" and "non-food" both up 1.6%.
Cafes and restaurants will contract by 1.4%, Access says. "Unlike most other areas of discretionary retail spending, this sector does not reap the benefits of a rise in the Australian dollar."
"Cafes and restaurants are also facing the possibility of higher wage costs in the service sector. On the other hand, a subsiding of the spike in food prices will help relieve pressure on margins, while the Australian dollar may start to depreciate a little from current lofty levels over the next year."
However, despite the negative outlook, there is still hope. Access says positive growth from outside the retail sector will eventually boost jobs and income growth, which will lead to a recovery in some retail sectors.
On the positive side, it says, commodity export prices remain high, while it also notes that many businesses are beginning to invest more – there are $832 billion worth of major projects underway or in planning, up by 14.7% over the past year.
Further support also comes from the fact interest rate hikes are nowhere to be seen, with the RBA ready to cut rates if the need arises.
"By financial year, following the two-decade low of 1.3% real inflation-adjusted retail sales growth in 2010-11, there may be a modest improvement to 1.5% growth in 2011-12, with the bulk of that growth occurring the other side of Christmas.
"A more solid rate of jobs growth and easing of consumer caution might then see retail growth lift to 3.3% in 2012-13."
Specific sectors are set to enjoy higher growth as well during that time, such as "other retailing", set to grow 4.9%, along with non-food up 3.7%, clothing and footwear up 3.5%, and household goods up 3.4%.
Cafes and restaurants, however, are only set to grow 1.7% during that year, and only by 2.7% over the next five years.
"Other retailing" will grow the most over the next five years at 4.4%, followed by clothing and footwear at 4%, non-food at 3.7%, and food at just 2.1%. Department stores will grow the least, looking at only 1.3% growth over the five-year period.
State-wise, only Western Australia and Queensland will see sales growth over 3% this year, at 4.8% and 3.1% respectively. New South Wales will grow just 0.4%, while South Australia, Tasmania and the Northern Territory will grow 2.1%, 1.9% and 2.9% respectively.
Victoria will see retail sales fall by 0.1%.
However, conditions will improve in 2012-13, with NSW up 2.7%, Victoria up 3.3%, Queensland up 4.1%, South Australia up 2.1%, Western Australia up 4.1%, Tasmania up 2.9%, and Northern Territory up 2.6%.
Access also predicts good times next year, saying the current slowdown in the rate of jobs growth may have run its course, and that the household savings rate may be stabilising.
"Pockets of the Australian economy are still going very strong and this will support a reasonable rate of GDP growth in 2011-12. That should allow jobs growth to re-gather pace over the next year and provide a better support for retail spending."
This article originally appeared on <a target="_blank" title="SmartCompany" href="https://www.smartcompany.com.au/economy/20110913-retail-growth-on-the-other-side-of-christmas-but-it-s-still-not-going-to-be-very-strong-access-economics">SmartCompany</a>.
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News