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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There has been some reprieve for families in Western Australia and Victoria, with the percentage of income required to pay off their mortgages bucking the national trend and decreasing marginally over the June quarter.
The proportion of family income devoted to meeting average loan repayments in Victoria eased by 0.7% over the quarter from 35.9% to 35.2%, according to the latest REIA/Deposit Power Housing Affordability Report. 
Over the quarter, Victorian median weekly earnings increased by $18 while median mortgage repayments fell by $15 as the average loan size decreased from $315,000 to $312,000. 
<img src="/images/stories/reia.jpg">
In WA, the resources boom appears to be helping to ease housing affordability with weekly income rising by $50 a week compared with a $43 increase in median mortgage repayments. The average size of a WA mortgage increased from $299,000 to $304,000. 
The Northern Territory was the only other state or territory market where housing affordability improved, with the percentage of income required for mortgage repayments declining from 23.2% to 22.8% as the average loan size fell from $291,000 to $288,000. 
Nationally, housing affordability deteriorated once again in the June quarter, with mortgage repayments as percentage of family income increasing 0.4% to 34.6%, taking affordability back to levels last seen 12 months ago. It followed a 1.1% “short-lived” reprieve in the March quarter. 
State by state round-up 
<ul>
<li>NSW maintained its 15-year history as Australia’s least affordable state or territory in which to buy a home in Australia.  It recorded the largest decline in housing affordability in the June quarter, with the proportion of income required to meet loan repayments increasing 1.5% to 38.7%. </li>
</ul>
<ul>
<li>South Australia is the third least affordable state or territory in which to buy a home. Housing affordability deteriorated over the June quarter, with the proportion of income required to meet monthly loan repayments increasing 0.4% to 34.5%. </li>
</ul>
<ul>
<li>In Queensland housing affordability deteriorated slightly over the quarter. The proportion of income required to meet loan repayments increased 0.1 percentage point to 33.0%. Over the year, the proportion of family income required to meet loan repayments decreased 1.1 percentage points. </li>
</ul>
<ul>
<li>Tasmania recorded the second largest declined in housing affordability over the quarter. The proportion of income required to meet home loan repayments increased 1.3% to 29.5%. </li>
</ul>
<ul>
<li>Despite housing affordability declining in the Australian Capital Territory over the quarter, the territory remains the most affordable state or territory in which to buy a home; a position held for more than five years. Over the June quarter, the proportion of income to meet home loan repayments increased 0.2 percentage points to 18.8%.</li>
</ul>
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lschlesinger-FZcF9M3vE6

Mortgage burden eases in Victoria and WA

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The recent release of annual results from GPT group marked the end of A-REIT reporting season among the largest trusts. 
Strong income growth and the strong performance of A-REITs with lower gearing were the two key themes to emerge for the sector, according to Mark Wist, senior consultant at Atchison Consultants. 
GPT, which has a diversified portfolio including retail, office and industrial assets, was one of the stocks that performed strongly on these two measures, reporting an 8% increase in realised operating income (ROI) for the six months ended June 30, 2011 of $221.5 million and gearing reduced to a low 21%. 
Other A-REITs that demonstrated resilient earnings and low gearing and that provided strong returns in excess of the share market include Charter Hall Retail and Dexus, Wist says. 
Across the sector as a whole, the S&amp;P/ASX 200 A-REIT index lost 8.8% of its value over the year to September, but outperformed the benchmark S&amp;P/ASX 200, which declined by 14.11% over this period. 
“Across the A-REIT sector, operating income growth averaged 3.5% for six months to June which is greater than economic growth despite consumer sentiment at two-year lows and business sentiment at six month lows,” Wist says. 
“Growth in the retail property sector was higher at over 4% for the six months as inflation-linked rental escalations supported revenue. 
“Limited occupational vacancy across both retail and office property portfolios differentiates this cycle from the previous downturn when oversupply from substantial new developments crippled rental growth,” he says. 
Deutsche Bank analysts Ian Randall, Matthew Bertram and Jason Weate report that A-REIT reporting season stacked up well against the broader market. 
A-REIT earnings came in 0.7% ahead of the bank’s estimates with the analysts also noting the stronger performance of retail portfolios and the marginally disappointing performance of office REITs. 
The most heavily discounted AREITS are Australand, trading at a 22% discount to Deutsche Bank’s valuation, Stockland at a 23% discount and Westfield group at a 20% discount. 
The sector as a whole is trading at a 16% to its net asset value.
Rating agency Moody’s has a “stable” ratings outlook for A-REITs and expects the sector to steadily improve over the next 12 months.
Investment bank JP Morgan has a bullish outlook on listed property trusts with its top picks being those exposed to the retail and residential sectors, these being Stockland, GPT, Westfield Retail Trust and Mirvac.
According to the investment bank, a short term overly bearish sentiment on AREITS has made retail and residential attractive relative to office trusts.
Stockland is trading at a 23% discount to JP Morgan’s target price of $3.85.
Its other picks are Charter Hall Retail REIT and Commonwealth Office Property Office Fund.
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Less risky A-REITs outperform the share market

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Industry group Tourism Whitsundays expects the tourism mecca will shrug off the appointment of receivers to key projects in the region.

Abel Point Marina at Airlie Beach and the Port of Airlie development have both been handed over to receivers McGrathNichol, after Bank of Scotland International pulled the plug.
Tourism Whitsundays chief Peter O'Reilly says the $750 million Port of Airlie project, promoted as a gateway to the Great Barrier Reef, ran into a long series of troubles.
These included the GFC reducing the risk appetite of its lenders and unseasonal rain during development leading to delays, which then gave buyers the opportunity to contest their acquisitions given a slump in property prices nearby.
But O'Reilly says it's business as usual at the Port of Airlie and the troubles haven't had a huge impact locally despite the project being only partly completed. In fact, Whitsundays tourism is seeing some positive signs.
"The youth adventure backpacking market is soft, but the mainstream is there," he says. "Operators who are good marketers have got business."
"Some say they have had five months of consecutive growth on last year, but last year was an ordinary year as a base."
"It's coming back, but it's challenging, especially the international market."
"But the Townsville, Mackay market has been reasonable, as well as Brisbane, Sydney and Melbourne."
Still, the Port of Airlie development was seen as one that would "raise the bar for the whole of Airlie Beach," O'Reilly says.
"We're not going to see the hotel development and the other retail development go ahead, which is unfortunate," he says.
This article originally appared on <a href="https://www.smartcompany.com.au/business-travel/20110908-whitsundays-tourism-developments-in-receivership-but-industry-hopes-region-can-recover" title="SmartCompany" target="_blank">SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Whitsundays tourism development in receivership

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17 Dunloe Avenue, Norlane, VIC, 3214
<img src="/images/stories/dunloe.jpg">
This three-bedroom, one-bathroom house in the Geelong suburb of Norlane is currently tenanted at $280 per week. The property has been recently renovated and has a new laundry, new wardrobes, new roof, insulation, plumbing and wiring, and new carpets and paint job. It is 400 metres to Norlane Primary School and within walking distance of Bell Post Shopping Centre and a leisure centre. <a href="https://www.fletchers.net.au/Property-Details.php?p=2600616" title="Fletchers Geelong" target="_blank">Fletchers Geelong</a> agent Duncan Skene is marketing the property with price hopes of $220,000 plus, and if it had sold at that price that would have been a gross rental yield of 6.6%, considerably higher than the indicative gross rental yield for houses in Norlane of 5.8%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The property was passed in on a vendor's bid of $255,000 on Saturday, September 10.
For more information about prices and yields in Norlane, see the RP Data suburb page.
For other investment prospects going to auction this weekend, see pages 2 and 3.
 
<hr class="system-pagebreak">
 
6A Arthur Street, Belmont,VIC, 3216
<img src="/images/stories/arthurst.jpg">
This three-bedroom property in the inner-Geelong suburb of Belmont could appeal to investors, as it is tenanted at $280 per week until July 2012. It is close to parkland and five kilometres from Geelong CBD. <a href="https://www.barryplant.com.au/property.cfm?propertyId=1835788&amp;trapfour=y_num" title="Barry Plant South Barwon" target="_blank">Barry Plant South Barwon</a> agent Nathan Ashton is marketing the property with $270,000 plus hopes. If it sells for $270,000 that would mean a gross rental yield of 5.4%, well above the indicative gross rental yield for houses in Belmont of 4.8%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The property will go to auction on Saturday, September 10 at 1.30pm.
For more information about indicative gross rental yields and prices in Belmont, see the RP Data suburb page.
 
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48 South Kiama Road, Kiama Heights, NSW, 2533
<img src="/images/stories/kiamaheights.jpg">
A rental assessment of this two-bedroom property by selling agent Angela Bennett of<a href="https://www.ljhooker.com.au/Q7H82" title="LJ Hooker" target="_blank"> LJ Hooker Kiama</a> estimates that this property could be rented out for between $320 and $330 per week. Bennett is marketing the property with price hopes of $340,000 plus, and if it sells for $340,000 and is rented for $330 a week, that would equate to a rental yield of 5.7%, far higher than the indicative gross rental yield for Kiama Heights of 4.6%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. This property goes to auction on Saturday, September 10 at 2pm.
For more information about gross rental yields and prices in Kiama Heights, see the RP Data suburb page.
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Friday Form Guide: Yields of up to 6.6% in Norlane

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After 36 bids from six interested parties, a heritage Sydney office building with a ground-floor bar sold under receivers’ instructions at auction today.
The five-level Kent Street building was knocked down in packed rooms for $3.95 million by auctioneer Damien Cooley from Cooley Auctions.
It last sold at $3.45 million in 2007 when bought by a subsidiary of Keith Johnson’s company Johnson Property Investment.
The building is part of the 1888 Merchant and Partners warehouse building, which has stucco detailing designed in the Victorian Free Classical style.
The largest residential land developer in NSW went into administration in April with the creditors owed about $150 million.
The secured creditors are owed $132 million including the Seventh Day Adventist Church ($69 million), St George Bank ($32 million), Greshams ($13 million) and National Australia Bank ($4.7 million).
The unsecured creditors owed about $16 million.
Slow development approvals from government and falling land values after the global financial crisis were cited as reasons for the company's position.
The company retains its holdings of 8,000 lots in NSW, which had an estimated worth $197 million at its peak, but their value plummeted to $67 million after the global financial crisis.
Johnson Property Group assets in the Hunter include 2,500 lots at Cooranbong, 2,000 lots at Bellbird, Cessnock, Trinity Point marina, and residential and tourist sites at Morisset Park.
In March Johnson confirmed he had been a victim of a sophisticated international scam.
The Kent Street building has a net lettable area of 493 square metres.
Newly opened small bar Since I Left You occupies the ground floor tenancy of 38 square metres on a five-year lease.
It was listed by receivers and managers Taylor Woodings through CB Richard Ellis agents Tim Grosmann and Rohan Ramsay.
Tim Grosmann says rarely had such small quality freehold become available within the CBD.
“Since the City of Sydney’s introduction of the Liquor Amendment (Small Bars and Restaurants) Bill 2007 the CBD’s laneways have been revitalised, with small bars such as Since I Left You well positioned to capitalise on previously unusable space,” Grosman adds.
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jchancellor-FAypfDUnLy

Keith Johnson receivers sell skinny sought-after Sydney heritage building

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The increasing “<a target="_blank" href="https://www.propertyobserver.com.au/residential/start-spreading-the-news-australian-cities-must-become-more-like-manhattan-christopher-joye/2011090151384">Manhattanisation</a>” of inner Melbourne has been confirmed in the latest annual building approval figures.
Across Victoria, residential high-rise building permits surged 70% over the 12 months to June 2011<a target="_blank" href="https://www.propertyobserver.com.au/news/high-rise-apartments-lead-victorias-residential-building-surge/2011070750734"> </a>to $3.4 billion, according to figures released by Victoria’s Building Commission.
Inner Melbourne, where the majority of high rises are under construction, registered a 12% increase in building approvals, double the 6% increase recorded for the entire Melbourne metropolitan region.
In comparison, building activity in the outer-Melbourne suburbs, where houses predominate, was flat, with approvals down 0.5%.
The north east of Victoria suffered the biggest drop in housing approvals, down 18% to $784 billion with big drops also recorded in Gippsland, North Central, the North West and the South West regions.
<a target="_blank" href="https://www.propertyobserver.com.au/:%20http:/www.propertyobserver.com.au/news/high-rise-apartments-lead-victorias-residential-building-surge/2011070750734">Repeating the May figures</a>, across Victoria, domestic housing approvals remained steady over the period, this time to $13.1 billion.
Confirming the growing investment in retail assets by major listed landlords, retail approvals increased by 18% to $1.3 billion while industrial approvals increased 10% to $451 million
Overall, commercial building approvals increased by just 3% to $2.7 billion,
Across all sectors, the value of building permit activity rose to $24.3 billion over the 2010-11 period, a 2% increase on the $23.9 billion recorded over the previous 12-month period.
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Melbourne takes Manhattan as high-rise approvals soar

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As we move on into the spring it is an opportune time to “take stock” and see where the Australian economy, and its housing market, are heading.
Yesterday we received the official economic growth data from the ABS, which while surprising on the high side, confirmed the medium-term outlook I pitched in August last year.
The smart money was punting on relatively uninspiring real growth of 0.9% in the second quarter, which was going to be driven by an inventory rebuild after the floods. Instead, we generated substantially greater 1.2% real GDP growth, which was notable for being surprisingly broad-based. This was even more impressive given the flood-induced contraction in the first quarter was revised down from -1.2% to -0.9%, which meant that the second quarter was starting off a higher base.
The details surrounding <country-region><place>Australia</place></country-region>’s economic growth engine were revealing. Net exports actually detracted 0.5 percentage points from the GDP result due to a slower-than-expected recovery in coal volumes. Had net exports been flat, the real GDP growth estimate would have been +1.7%, which is a little higher than the RBA’s priors. The good news is that coal exports should recover forcefully in the third quarter. The public sector also lopped off another 0.4 percentage points from growth as the government tries to eliminate its deficit before the next election.
A reader referred me to a statement I had made in August 2010. Specifically, I argued, “the economy is about to embark on a period of above-trend growth.” Naturally, I am no weather forecaster. So I will admit that I did not predict the savage <state><place>Queensland</place></state> floods, or the Japanese earthquake-cum-tsunami-cum-nuclear crisis.
Yet even in the face of these unanticipated events (and some extraordinary geopolitical turbulence in the Middle East and Europe), yesterday’s statistics tell us that real private final demand in Australia – that is, private consumption plus private investment – has been advancing at a well-above trend 5.4% annualised pace over the first six months of 2011 (see chart). There is no doubt that had <country-region><place>Australia</place></country-region>’s export market not been cruelled by the east coast floods in the first quarter of 2011, real GDP growth would have been strikingly strong.
<a href="/images/stories/joyeseptember81.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember81thumb.gif"></a>
Here HBSC’s chief economist, Paul Bloxham, comments: “Domestic demand is rock solid. That’s the key message from [yesterday’s] GDP release. Yes, the <state><place>Queensland</place></state> floods have disrupted coal exports, but the domestic economy has continued to grow strongly.”
Notwithstanding the many hysterical claims that both consumer spending and the non-mining economy are weak or in recession, including from some of the RBA’s conflicted independent board members, the non-mining sector managed to expand by 1.2% in the June quarter. Even the reportedly death-spiral-bound manufacturing sector grew by a vigorous 2.8% over this period.
It also turns out that Australian consumers are spending money at very normal rates. Consumption increased by a strong 1% (real) in the June quarter, and has risen by a trend-like 3.2% over the last 12 months, which is its best rate in a year and accounted for almost half of all GDP growth. Importantly, there has been a shift in consumer spending away from goods towards services, which surged 2% in the quarter and are growing at an annual rate of 5.5% (the highest since 2008).
On this note, RBS’s highly regarded chief economist Kieran Davies argues: “This supports our view that the monthly retail sales numbers – which continue to exert a strong influence on financial markets – are no longer a good guide to overall consumer spending. It also makes us wonder about the link between consumer [confidence surveys] and spending, which our past research has shown is not a consistent predictor of consumption.”
In concert with healthy consumer activity, we saw the household savings rate fall from a recent high of 11.7% to 10.5% while real, net per capita disposable income increased by 2.9% over the June quarter to hit its highest level ever ($48,988 for every man, woman and child in Australia).
In summarising the GDP numbers, UBS chief economist Scott Haslem opined: “Today's data reveals much more underlying strength in the economy in the second quarter than anticipated, with the likely temporary weakness in exports and the unwinding of public capex from the GFC stimulus masking a 'private economy' expanding above trend.”
 
<hr class="system-pagebreak">
 
So where does that leave <country-region><place>Australia</place></country-region>’s housing market? Based on the latest RP Data-Rismark findings, Australian dwelling prices are down a modest 2.9% over the last 12 months. This, however, conceals considerable cross-sectional dispersion. For example, whereas the <city>Sydney</city> and <city>Canberra</city> markets have actually realised capital gains of 0.5% and 1.9% respectively, <city><place>Melbourne</place></city> homes are off by 4.3% after surging 29% over 2009 and 2010. A flood-weary <city>Brisbane</city> market is also down 6.6% over the year, while <place><city>Perth</city></place> home values have fallen by a slightly smaller margin. After quite extraordinary growth during much of the 2000s, the cost of housing in <city>Perth</city> and <city><place>Brisbane</place></city> has not risen in three to four years.
The 2011 outcomes are broadly in line with what we forecast in October 2010. At the time, I commented, “Our analysis suggests that a substantial increase in rates would put some downward pressure on dwelling prices…. It is now just a matter of time before the RBA and/or the banks raise rates again.” As it happened, we got a sharply felt double hike a month later in November.
The additional dynamic in 2011 has been the remarkable conviction of households that they will be hit by more rate hikes. As recently as August this year, Westpac’s survey analysis suggested that Australians were budgeting on another two rate hikes with an amazing 29% of respondents expecting more than four hikes. In a sense, therefore, the housing market has been behaving as if it is being constrained by interest rates that are actually higher than current levels. In central banker speak, this is the benefit of “jaw-boning” on rates: that is, compelling behavioural changes without actually having to touch the interest rate lever.
<a href="/images/stories/joyeseptember82.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember82thumb.gif"></a>
Set against these challenging conditions are some reasons for optimism.
First, the RBA has, in practice, ignored the very high core inflation numbers that were published by the ABS in the first and second quarters of 2011. That is to say, consumers’ hawkish interest rate expectations have not been satisfied.
Second, economists believe that there will be no hikes this year. Indeed, Goldman Sachs and Deutsche Bank are both bravely predicting interest rate cuts (!) in October and November, according to Bloomberg data. AMP and Westpac forecast one cut before the year is out. And Macquarie Bank and Westpac are predicting that rates will be a full percentage point lower (i.e., the equivalent of four cuts) by the end of next year.
If these projections prove accurate, we are likely to see a rebound in housing activity. I should add for the record that I do not personally agree with them. I believe the next move in rates will still be up, not down, and do not think the RBA will be relaxing policy until some time in the second half of 2012.
But let’s hope I am wrong: in particular, let’s cross our fingers that the third-quarter inflation numbers prove benign, and the RBA does not as a consequence feel the need to tighten the screws again. Nobody wants an inflation problem in this country: inflation is, after all, a tax on prudent net savers, and inevitably means higher rates for those of us with loans.
A third positive portent is to be found in the housing finance data. In August <country-region><place>Australia</place></country-region>’s largest mortgage broker, AFG, reported that it had written $2.7 billion worth of new finance, which was its single best month in one and a half years. This was reinforced by positive official housing finance data from the ABS. Specifically, the ABS reported that the number of new owner-occupied loans rose by a healthy 1% in July, following upwardly revised growth of 0.6% in June. Indeed, approvals have now risen for the last four consecutive months. Having said that, they remain well below previous peaks, and are consistent with soft prevailing conditions.
<a href="/images/stories/joyeseptember83.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember83thumb.gif"></a>
As a final observation, we are seeing some de facto cuts in the fixed-rate home loan market caused by the inversion of the yield curve. It is now possible to get three-year fixed-rate loans for around 6.4%, which is substantially below the headline standard variable rate of over 7.5%. This is based on a more bearish economic outlook, which is being driven by both the offshore turbulence and conflicting domestic data, such as today’s unemployment survey. Only 600 net new jobs have been created in the last 3 months, which has forced the unemployment rate up to 5.3%. This will help the RBA do its inflation-fighting job and, at the margin, reduces the probability of future rate hikes.
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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The economy and housing market are stronger than you think

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Gerry Harvey, the executive chairman of the Harvey Norman retail chain, has questioned the sustainability of existing retail lease structures with inbuilt annual rent increases of 4% to 5% plus regular market reviews.
Rents currently could take 15% to 20%, and in some instances 30% to 40%, of retailers' turnover, he has suggested.
Harvey says shopping centres that charged the highest rents faced the most risk of having to take cuts.
Bulky goods centres, by comparison, which rent space at about $200 a square metre are better placed, Havey says.
"You are going to see retailers closing down more than you see them opening up…  And that is going to have a big influence on rents and the valuation of shopping centres," Harvey says.
The fundamental problem was that Australia had too much retail space which would suggest not many more new shopping centres would be built.
"We have come to a halt,” he told The Australian property reporter Florence Chong.
“It is very difficult to justify the cost of building today because of the high cost of land and construction."
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Gerry Harvey says current retail rent structure unsustainable

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Centro has listed a further three regional shopping centres for sale this week, taking the total since July to seven.
<img src="/images/stories/centroalbionpark.jpg">
Alongside <a href="https://www.propertyobserver.com.au/retail/centro-seeks-buyer-for-townsville-centre/2011090651453" title="Centro Townsville" target="_blank">Centro Townsville</a>, the group has also listed Centro Albion Park (pictured above) near Wollongong and Centro Newcomb, near Geelong.
The three centres form part of Centro’s MCS 17 Unit Trust Syndicate.
According to an explanatory note issued in April, the syndicate was forecast to bring in property income of $7.5 million for the year ending June 30, 2011, up from $6.59 million the previous year.
Centro Townsville is valued at $35.5 million, Centro Newcomb at $26.5 million and Centro Albion Park at $15.2 million.
The centres are being sold by Savills agents Peter Tyson and Jon Tyson and Knight Frank’s John Quinlan and Phil O'Donovan.
Other Centro centres listed for sale since July include Centro Warners Bay in Newcastle, Centro Lismore, Centro Emerald Village in Northern Queensland and Centro Newton in Adelaide.
The group is holding onto its prime shopping centre assets, which include The Galleria in WA valued at more than $470 million, the Glen in Melbourne worth about $330 million and Centro Toombul in Queensland worth around $200 million.
Under the restructuring proposal Centro Properties Group will be wound up, with the remaining Australian assets held by subsidiary Centro Retail Trust and other unlisted Centro funds amalgamated into a new listed property trust.
Shareholders will vote on the proposal on December 15. Failure by the board to win approval will most likely see the company placed in the hands of external administrators.
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Troubled Centro now offloading seven shopping centres

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Some 20 buyers are reputedly thinking of expressing interest in Mirvac’s $450 million prestige hotel offering.
The interested parties reportedly include LaSalle Investment Management, US giant Blackstone, and Australian property manager Toga.
The French-based hotel chain Accor, the US-based Marriott Hotels and Resorts, and Singapore's Grand Chancellor, owner of Hotel Grand Central, have also been suggested as among the touted parties.
It has also been reported that LaSalle is considering buying Brisbane’s Chifley at Lennons hotel for about $57 million, according to the Australian Financial Review.
The Australian revealed in June that Mirvac Group had appointed Lazard to review its hotel arm.
Mirvac's hotel offering includes its 49% stake in the Mirvac Wholesale Hotel Trust, which owns seven four- to five-star properties in Sydney, Brisbane and Melbourne.
The group would also offload the Sebel hotels in Newcastle in NSW and Mandurah in Western Australia.
But Mirvac intends to retain The Como Hotel in Melbourne as a redevelopment site.
The offering also includes the 49% stake in Mirvac's Tucker Box Hotel Group, made up of 13 Travelodge hotels.
The Sydney Morning Herald has reported Mirvac is thought to be considering management deals to ensure Mirvac retains an interest in the 46 assets, which include Sea Temple, Quay West Suites, Sebel and Citigate.
Mirvac holds the management rights for almost 6,000 hotel rooms in 41 Australian hotels and three in New Zealand.
The other pricey hotel listing is Thakral Holding's intended sale of its $250 million Wynyard complex, which includes the 446-room Menzies Hotel, along with an office building, car park and retail concourse at Wynyard station.
Craig Collins, of Jones Lang LaSalle Hotels, says Sydney has maintained its position as Australia's top hotel trading market.
Its status was underpinned by consistent occupancy levels above 85% and solid revenue per available room (RevPAR) growth.
The year to date RevPAR had surpassed the 2008 peak with Sydney's accommodation market returning to the strong growth before the financial crisis.
Craig Collins says average daily rate growth has risen to 7.1% over the seven months to July 2011 to $203.68.
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