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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Australia’s biggest home lender has cut its fixed interest rates again as existing mortgage holders continue to wait in hope of some relief before the end of the year. 
Following yesterday’s decision by the RBA to leave the cash rate on hold at 4.75%, the Commonwealth Bank has cut its fixed rate mortgage for the second time in the space of a few weeks. 
From today, the bank’s one-year fixed rate will drop from 6.59% to 6.48% while its three-year fixed rate loan will fall from 6.59% to 6.43% for borrowings over $150,000. 
Other lenders to have cut fixed rate mortgages in the last week include:
<ul>
<li>St George Bank, which has cut its two year fixed rate mortgage by 15 bps (to 6.59%) and three year fixed by 5 bps (to 6.69%)</li>
<li>Newcastle Permanent Building Society, which has cut its four and five year fixed rates by 10 bps to 6.79% and 6.84% respectively</li>
<li>Credit Union Australia, which has cut its one year fixed by 26 bps (to 6.79%); two yCear fixed by 25 bps (to 6.85%); three year fixed by 40 bps (to 6.74%) and five year fixed by 21 bps (to 7.34%).</li>
</ul>
The rate cuts come as a survey of 1,000 mortgage holders by Mortgage Choice has found that half would use a rate cut to pay more towards their home loan, rather than spend it at the shops. 
The survey emphasised the savings mindset of mortgage holders, with a further 30% saying they would “save more money in some other way”. 
“Our new national survey discovered only one in five of the 1,000-plus respondents, all of whom were mortgage holders, will spend more if interest rates drop. In fact, every second person will simply contribute all extra funds into their home loan,” says Mortgage Choice spokeswoman Kristy Sheppard. 
“Ninety-six per cent will save more money or the same as they have been if rates fall, which clearly demonstrates the mindset of today’s cautious consumer. De-leveraging while building a protective financial shield against tougher times is very much at the forefront of their decision making. 
“Our findings also indicate current interest rates aren’t contributing to borrower stress as a number of commentators suggest. What they are doing is stopping the majority of mortgage holders from creating a bigger financial buffer via making extra repayments.” 
Using the national average mortgage size of $288,100 and the benchmark basic variable rate of 7.11% (which is the average rate across the major four banks), borrowers will save $46 per month if rates drop by 0.25%, mortgage comparison website RateCity.com.au has found. 
Interest rate markets are still pricing in a rate cut this year with Westpac expecting rates to fall before the end of the year and 1% to be shaved off the official rate over the next 12 months.
The Commonwealth Bank expects rates to rise by February 2012.
</body></html>

lschlesinger-FZcF9M3vE6

CUA joins lenders cutting fixed rates as borrowers continue to save

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A former horse stud set on 3.9 hectares of land in Burpengary, Queensland, has debuted at number 3 on SQM Research’s list of 10 most discounted properties. 
The property includes  a three-bedroom house, four brick stables, four shelters and a  round yard, crush, feed shed, dam and almost ten acres of grazing space. 
It listed in April at $1.2 million. The price was dropped to $990,000 in May and further discounted to $699,000 in June, the current listing price – a 42% discount to its original listing price. 
“This week's top 10 once again features our old faithful property – 1350 Wynnym Road Tingalpa, 4173,” comments SQM Research managing director Louis Christopher 
“As <a target="_blank" title="Ugly duckling back on market" href="https://www.propertyobserver.com.au/residential/bank-stop-overlooked-ugly-duckling-from-selling-in-deteriorating-brisbane-market/2011090251401">mentioned</a> on <a target="_blank" title="Property Observer" href="">propertyobserver.com.au </a>late last week, this Queensland property went from being under contract to back on the market after the potential buyers’ finance fell through. The property has been on the market since November last year. 
“In addition to this, we have a new Queensland property entering our list this week – 102 Fountain Road Burpengary, 4505 which has been discounted by over $500,000 since its inception onto the market in April this year 2011. The vendors of this property, which was a former horse stud, featuring attributes such as an in-ground pool, ducted air conditioning, stables and feed shed, billiard room with built-in bar and 1.5kw solar panels, are most likely struggling to find a suitable buyer for a home with such niche characteristics.”
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479093" title="588 white beach road" target="_blank">588 White Beach Road, White Beach, Tasmania, 7184</a>
On the market since: May 23, 2010
Initial asking price: $780,000
Current asking price: $400,000
Reduction: 49%
Days on market: 462
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a target="_blank" title="1350 Wynnym Road" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579">1350 Wynnum Road, Tingalpa, Queensland, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 294
 
3
<a target="_blank" title="102 Fountain Road" href="https://www.domain.com.au/Property/For-Sale/House/QLD/Burpengary/?adid=2008940771">102 Fountain Road,  Burpengary, Queensland, 4505</a>
On the market since: April 17, 2011
Initial asking price: $1.2 million
Current asking price: $699,000
Reduction: 42%
Days on market: 134
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a target="_blank" title="3 Boolari Road" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903">3 Boolari Road, Gosford West, NSW, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $580,000
Reduction: 41%
Days on market: 780
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a target="_blank" title="232 High Central Road" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500">232-234 High Central Road, Macleay Island, Queensland, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 959
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" title="25 Vicary Street" target="_blank">25 Vicary Street, Triabunna, Tasmania, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 392
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a target="_blank" title="290 Viveash Road" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295">290 Viveash Road, Swan View, WA, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.5 million
Reduction: 34%
Days on market: 1,180
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105294317" title="3 Zelma Court" target="_blank">3 Zelma Court, Macleay Island, Queensland, 4184</a>
On the market since: May 23, 2010
Initial asking price: $380,000
Current asking price: $250,000
Reduction: 34%
Days on market: 461
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206" title="1/16 Dewar Way, Ledge Point" target="_blank">1/16 Dewar Way, Ledge Point, 6043</a>
On the market since: November 15, 2009
Initial asking price: $375,000
Current asking price: $250,000
Reduction: 33%
Days on market: 650
 
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008659274" title="2506/83 Queensbridge Street" target="_blank">2506/83 Queensbridge Street, Southbank, VIC, 3006</a>
On the market since: October 31, 2010
Initial asking price: $2.15 million
Current asking price: $1.5 million
Reduction: 30%
Days on market: 301
SQM Research also offers a list of the <a href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
</body></html>

Horse stud discounted by 42% in five months on SQM discount list

<html><body>
House prices in Brisbane, Melbourne and Darwin could fall by as much as 15%  from their recent peak by the end of 2012 even if interest rates stay unchanged, according to property analyst SQM’s Louis Christopher.
Only Sydney and Canberra will escape the plunge, Christopher says.
Battered buyer confidence, the four interest rate rises in 2010 and a reluctance to take on more debt would force the house price falls.
“We are well on the way to these type of declines,” Christopher says.
“We have over 377,000 properties on the market … there’s a lot of stock on the market coming into this spring, and we’re not expecting buyer demand to pick up at all,” he says.
SQM Research’s first national outlook report, entitled Christopher’s Housing Boom and Bust Report, details that Perth was likely to record the largest drop in house prices and Canberra the least.
He suggests Sydney property prices are expected to do relatively better than prices in other cities.
“But for Brisbane, Perth, Melbourne and Darwin, the losses are mounting, having come off recent strong runs.
“In 2012 if there is a 25 basis point cut in official cash rates, prices would likely bottom out and even post modest gains in some cities, as the property downturn eases and confidence begins to return to the market.
“However if rates are left on hold, house prices are likely to keep falling well into 2012 with no market bottom until at least the middle of the year,” Christopher says.
“If rates we to rise by just 25 points, either this year or next, house price declines would accelerate throughout the course of the year.
“Our base case scenario is that interest rates are unlikely to change in the immediate future.
“If interest rates do remain unchanged through to June 2012, then the accumulated peak-to-trough declines for most Australian capital cities will reach double digits by the end of that calendar year.
“It’s clear to us that this current housing downturn is starting to build some momentum, which is going to be very difficult to stop without some kind of stimulus from either the RBA or the federal government,” Christopher says.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" colspan="7" width="529">
Median House Price  Forecasts
</td>
</tr>
<tr>
<td valign="top" width="74">
City
</td>
<td valign="top" width="76">
% change from Peak  to June 2011
</td>
<td valign="top" width="76">
2011F*
</td>
<td valign="top" width="76">
2012F no change in cash rate scenario (base case)
</td>
<td valign="top" width="76">
2012F 25 bp rate cut scenario 
</td>
<td valign="top" width="76">
2012F 25bp rate hike scenario
</td>
<td valign="top" width="76">
Accumulated change. Peak to end 2012. No rate change (base case)
</td>
</tr>
<tr>
<td valign="top" width="74">
Perth
</td>
<td valign="top" width="76">
-4.3% (Mar 2010)
</td>
<td valign="top" width="76">
-5% to -7%
</td>
<td valign="top" width="76">
-2 to -4%
</td>
<td valign="top" width="76">
4% to 0%
</td>
<td valign="top" width="76">
-5% to -8%
</td>
<td valign="top" width="76">
-10% to -14%
</td>
</tr>
<tr>
<td valign="top" width="74">
Brisbane
</td>
<td valign="top" width="76">
-3.6% (June 2010)
</td>
<td valign="top" width="76">
-4% to 6%
</td>
<td valign="top" width="76">
-4% to -7%
</td>
<td valign="top" width="76">
+3% to -2%
</td>
<td valign="top" width="76">
-5% to -7%
</td>
<td valign="top" width="76">
-10% to -15%
</td>
</tr>
<tr>
<td valign="top" width="74">
Darwin
</td>
<td valign="top" width="76">
-3.1% (Dec 2010)
</td>
<td valign="top" width="76">
-5% to -8%
</td>
<td valign="top" width="76">
-4% to 7%
</td>
<td valign="top" width="76">
+3% to -2%
</td>
<td valign="top" width="76">
-5% to -9%
</td>
<td valign="top" width="76">
-9% to -15%
</td>
</tr>
<tr>
<td valign="top" width="74">
Melbourne
</td>
<td valign="top" width="76">
-2.0% (June 2010)
</td>
<td valign="top" width="76">
-5% to -7%
</td>
<td valign="top" width="76">
-5% to -7%
</td>
<td valign="top" width="76">
+2% to -2%
</td>
<td valign="top" width="76">
-5% to -9%
</td>
<td valign="top" width="76">
-11% to -15%
</td>
</tr>
<tr>
<td valign="top" width="74">
Sydney
</td>
<td valign="top" width="76">
-0.6% (June 2010)
</td>
<td valign="top" width="76">
0% to -4%
</td>
<td valign="top" width="76">
+4% to +0%
</td>
<td valign="top" width="76">
+7% to +2%
</td>
<td valign="top" width="76">
-3% to -5%
</td>
<td valign="top" width="76">
+3% to -3%
</td>
</tr>
<tr>
<td valign="top" width="74">
Adelaide
</td>
<td valign="top" width="76">
-2.4% (Dec 2010)
</td>
<td valign="top" width="76">
-4% to -6%
</td>
<td valign="top" width="76">
-4%-6%
</td>
<td valign="top" width="76">
+5% to 0%
</td>
<td valign="top" width="76">
-4% to -8%
</td>
<td valign="top" width="76">
-8% to -12%
</td>
</tr>
<tr>
<td valign="top" width="74">
Hobart
</td>
<td valign="top" width="76">
-0.7% (Dec 2010)
</td>
<td valign="top" width="76">
-2% to -4.5%
</td>
<td valign="top" width="76">
-2% to -4%
</td>
<td valign="top" width="76">
+5% to +2%
</td>
<td valign="top" width="76">
-4% to -7%
</td>
<td valign="top" width="76">
-4% to -8%
</td>
</tr>
<tr>
<td valign="top" width="74">
Canberra
</td>
<td valign="top" width="76">
Peak now
</td>
<td valign="top" width="76">
+1% to -1%
</td>
<td valign="top" width="76">
+2% to +4%
</td>
<td valign="top" width="76">
+8% to +2%
</td>
<td valign="top" width="76">
-3% to -5%
</td>
<td valign="top" width="76">
+5% to +1%
</td>
</tr>
</tbody></table>
The full report is available at <a target="_blank" title="SQM" href="https://www.sqmresearch.com.au/">SQM's website.</a>
</body></html>

jchancellor-FAypfDUnLy

House prices could fall by 15% in three capitals: Louis Christopher

<html><body>
Centro Property Group’s Townsville shopping centre has been listed for sale as the beleaguered company looks to liquidate its assets and restructure under a new retail entity.
The centre was valued at $35.5 million in April this year, up 4.5% from a December 2010 valuation of $34 million.
It last sold for $20.75 million in November 2001.
The property is being marketed by Phil O'Donovan and John Quinlan from Knight Frank and Jon Tyson and Peter Tyson from Savills.
It is located at 39-355 Ross River Road, Townsville near the Bruce Highway.
The centre has a total gross lettable area of 13,670 square metres on a site of 42,424 square metres and is anchored by a Cole and K-mart, 24 specialty shops, two kiosks and three ATMs. Specialty stores include BWS, Suncorp, Commonwealth Bank, Bank of Queensland, Bakers Delight, Wide Bay Australia, Lenard's Poultry Shop and Donut King. Approximately 54% of the centre's gross income is derived from Coles and K-mart, and it earns total fully leased net income of $3,483,928 per annum.
The property is for sale by expressions of interest closing on October 13.</body></html>

Centro seeks buyer for Townsville centre

<html><body>
We recently surveyed property investors, and concluded that this market appears set and ready to pounce.
Half of our respondents own between two and five investment properties and almost a third own just one.  Two-thirds have no intention of selling any of their properties for at least five years, and 76% plan to buy more residential properties in the future.
Now, let’s briefly recall the property clock, with 12 representing the market peak – a vendor’s market with strong price growth, rising sales and improving yields.  And six represents the market bottom – a buyer’s market with stagnant or falling prices, falling sales and uncompetitive yields.
From our survey, 72% believe that the market is poised at the bottom of that clock, between the five and the seven, with 25% believing we are approaching the bottom.
Reasons given for renewed interest and continued confidence in the market include:
<ul>
<li>Prices are low and being discounted – half of those surveyed believe the peak buying time is now, just over a third think we are nearly there</li>
<li>Low volatility, unlike shares</li>
<li>Future growth opportunity in rents and prices</li>
<li>Hedge against inflation</li>
</ul>
The majority said they prefer to invest in detached houses, with only 14% leaning towards townhouses and 8% opting for apartments. 
Investors like detached product because of the potential to add value; the high land component; the opportunity for higher rents (tenants can share); and the absence of body corporate or on site management fees.
The vast majority of our respondents are looking to invest in Brisbane, with just over half preferring the middle ring (five to 10 kilometres from the CBD) and 35% opting for an inner-city suburb.
Overall, our investors prefer to invest in capital cities.  Only 2% would consider a mining town.
We asked about the biggest issues facing the Australian residential market.  Here are the top responses:
<ul>
<li>Low affordability</li>
<li>Taxes and charges on new homes</li>
<li>Amount of resales on the market</li>
<li>Poor rental yields</li>
<li>All up, while investor sentiment appears positive, interest in residential property remains subdued. </li>
</ul>
What this survey confirms is that interest has been tweaked and while investors may be hesitant to act, they are most certainly watching and waiting in the wings.
No doubt, the recent share market volatility has helped to shore up belief in the property market fundamentals.
What’s really needed now is a structural change to help restore confidence and entice investors to start buying again.  This change involves elections – local, state and federal.
As we have seen in the past, when the confidence tide does turn, investors can be quick to act.  Don’t be surprised if in the first half of next year, Queensland, at least, will see a surge in investment buying.
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 href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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michaelmatusik-49YzLvdmNv

Investors think Brisbane market will turn around soon

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Both Sydney and Melbourne now have the dubious honour as two of the top 10 most expensive cities in which to live, according to the Worldwide Cost of Living 2011 Survey, conducted by the Economist Magazine’s Intelligence Unit.
And while some media outlets are having a field day with the negative implications such as the rising cost of living, more families struggling financially, households increasingly experiencing mortgage stress and so on, others suggest the Economist Intelligence Unit is an oxymoron and should be renamed. 
I know I’ve often disagreed with some of its assessments of Australian property, but I am happy to agree with a different report, their Global Liveability Survey, which anointed Melbourne as the world's most liveable city. 
One the best thing about winning the top spot is that Sydney must be envious, only ranking sixth, with Perth and Adelaide ranking joint eighth and Brisbane lagging the other Australian capitals ranking 21st. 
Back to being among the most expensive country to live in – first, let’s understand what was measured.
To measure the cost of living the EIU looked at “point of sale” prices for more than 160 everyday consumer items in 140 major cities around the world, and then ranked each city according to its cost of living.
According to this study, Sydney and Melbourne ranked sixth and seventh as the most expensive places to live, while Perth and Brisbane just failed to make top 10 status, coming in at 13th and 14th place. This is in stark contrast to a decade ago, when Sydney and Melbourne were ranked as the 71st and 80thmost expensive cities, and Perth was in the 91st position and Brisbane was 93rd.
There are two major reasons why a city’s cost-of-living index will change over time: exchange rate movements and price movement.
The report explains that the remarkable rise in the cost of living in Australian cities over the last decade came at a period in which the value of the Australian dollar has moved from around 50 US cents to passing parity with the US dollar.
Essentially, if the local currency strengthens or inflation pushes up the price of goods increase (both of which have occurred here since over the last decade), the relative cost of living will also rise. 
There’s no sugar coating it – the cost of living and property prices are expensive in Australia, but for a good reason when you consider our general economic wealth, our ever-expanding population and all the new development struggling to keep up with the escalating demand.
However, rather than focusing on the prospect of paying more for the Australian way of life (which, let's face it, won't change the price of our groceries or real estate), perhaps we should take a different perspective.
You probably believe in the adage you get what you pay for – right?
So doesn't it go without saying that if you want to live in what most people perceive as “the lucky country”, then you’re going to have to be prepared to pay for living in the best place on the planet!
In other words, we need to be prepared to pay more for our higher standard of living comes at a premium. For the privilege of enjoying our relatively clean environment, low unemployment, stable economy and larger homes clustered around major coastal cities.
Now while we might feel a little hard done by and, on occasions, whinge about the significant increase in house prices, rents and our grocery bills, consider the residents of those countries that came in last.
Would you really like to reside in the likes of Pakistan's Karachi, the cheapest place to live and work where the cost of living is less than one-third of that of Tokyo? Or what about the infamous Indian cities of Mumbai and New Delhi, where poverty is rife and the rate of homelessness is through the roof?
Rounding out the bottom 10 on the cost of living index are cities dotted throughout the troubled Middle East and North Africa, with the low cost of living in these parts driven by a mix of weakened currencies, low levels of development and, in some cases, price controls and subsidies in staple goods.
For me, there is no question that we are indeed a very lucky country – many would even suggest we are “spoilt”. After all, we enjoy a glut of wide open spaces, comparatively clean beaches, jobs for those who want to work, homes with all of the modern conveniences we've come to expect, excellent investment opportunities there for the taking and a world leading economy.
At the end of the day, I guess you really do get what you pay for!
Oh, one last thought… 
If we are widely recognised as the most liveable country in what is fast becoming an increasingly inhospitable world, would-be residents will be beating a path to our door and we’ll end up with a big Australia after all. 
Where are we going to put all those people? 
Don’t get me wrong – I think we need a growing population to support our economy and replace our retiring Baby Boomer workforce. In the words of a famous past Prime Minister – we must populate or perish. 
In his <a href="https://www.propertyobserver.com.au/residential/start-spreading-the-news-australian-cities-must-become-more-like-manhattan-christopher-joye/2011090151384">recent column</a>, Christopher Joye explained that Australia will likely have to absorb 2.3 million additional households over the next 15 years alone. BIS Shrapnel estimates that this translates into a new home building requirement of about 3 million properties once you account for demolitions and the historical share of unoccupied homes (e.g., holiday houses, etc). 
There is no doubt that this substantial increase in population will bring with it many social, political, infrastructure and environmental concerns. 
The fact is that our politicians must make some hard decisions and start investing in improving our infrastructure so we can have the sustainable growth that will ensure we remain the lucky country. 
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.
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myardney-DFoGhGbSJX

Everyone wants to live in the world's most liveable city - so we need more housing

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Mortgage Choice boss Michael Russell expects the Commonwealth Bank to sell the 17.2% stake it acquired in the mortgage broker following its acquisition of Count Financial.
“I can only really speculate. If I was a betting man, I’d be suggesting that they may well offload the stake. I think they have enough ownership in the mortgage origination space,” Russell says.
The bank has said it might sell its stake in Mortgage Choice even if not compelled to do so by regulators because there would be little strategic benefit in holding onto it.
The Commonwealth Bank already owns a 33% share of Aussie Home Loans, a direct competitor to Mortgage Choice.
As new owner of Count Financial, it also owns its subsidiary mortgage aggregation business Finconnect.
A decision by the bank to sell its stake in Mortgage Choice would most likely be welcomed by Mortgage Choice franchisees and the wider mortgage broking community.
Commonwealth Bank is the country’s biggest home lender, and its mortgages are among the most recommended by Mortgage Choice brokers.
While Russell says he does not expect the bank would interfere if it became a major shareholder, he told the Australian Financial Review franchisees “like the perceived independence that is created by having no bank ownership on our register”.
“One of our tag lines is that we are independently owned and operated. That said, things change, and we are pretty adaptable sort of organisation.”
Mortgage Choice is due to have discussions with the Commonwealth Bank over the coming weeks.
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Mortgage Choice CEO contemplates CBA selling stake in broker

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Spring is here, and it’s a buyer’s market isn’t it?  Well, not quite – we may have formally entered spring, but don’t be fooled – the traditional buying season doesn’t really kick off until after the AFL grand final.  No one wants to run an auction on grand final day, therefore we’ll see existing stock peter out as agents work to tie up any loose ends on properties already scheduled for auction, and a short delay  marketing new stock until we move closer to the event. 
Media reports are still telling us house prices are softening – however this isn’t the case across the board. Although market has been suffering “low” demand, it’s not suffering “no” demand. Homes in the $500,000 to $800,000 “affordable” price bracket presenting quality are not only selling well, they are producing some difficult buying conditions for current property shoppers The last thing you’d expect to see in a cautious market is heated bidding and above average prices; however this is what’s happening in certain areas of the real estate landscape – principally the price bracket that attracts investors and the main demographic of home buyers. 
This is partly due to continuing volatility in the stock market and a political landscape that is currently in disarray.  Therefore there’s been a slow but steady increase in the number of investors who have moved their attention towards more tangible assets (a number we’ve seen increase over the last three weeks as a company and a trend that seems to be playing out generally).  This isn’t surprising when you take into account there are 2,500 property trusts set up in Australia every week.  Moreover, the banks are awash with deposits, and as a result have been wooing investors with cheaper rates and lower fees for both fixed and variable loans.  The small increase in rental stock particularly in Melbourne (good news for tenants) is a direct result of this investor activity. 
Therefore news this week from the Australian Housing and Urban Research Institute that 25% of investors sell within a year of purchasing is less than reassuring for anyone thinking of taking the plunge. Most mistakes are made when investors focus on property that is marketed principally for their demographic.  Small one- and two-bedroom apartments in high-rise blocks attract nice yields, but don’t generate much price appreciation.  This is because it’s owner-occupiers who fuel price growth, so choosing the right property in the right suburb is a case of appealing to those looking from a lifestyle perspective, as well as an investment perspective. Get this formula right, and even on the sliding side of the property cycle, losses will be minimised and gains maximised.  Considering the apartment market is currently awash with stock – with more in the pipeline – it’s therefore extremely important to proceed with care. 
So what’s ahead for spring?  Well, it’s not going to be an easy ride.  It’s a common misconception to think of our housing market as a large living, breathing beast that rises and falls as a single entity.  However, the housing market is both fragmented and fickle.  It’s made up of individuals like you and me with different needs and different budgets. Each piece of real estate has its own intrinsic quality – unlike stocks, it’s impractical to put off buying, and then expect to quickly secure the exact replica of the same product a few months on at a reduced price. Part of purchasing well is understanding we’re in an “opportunistic” market. We live in a country with a rising population, where the best seats in our major cities have been taken.  No one’s all that eager to move into the outer-metropolitan or regional areas where land is arguably overpriced due to hefty development overlays. Therefore taking advantage of a buyer’s domain means being ready to act when you see something that represents a good long term acquisition – after all, you’ve got to be in it to win it. 
Australia’s predicted surge of 35 million by 2050 – 8 million in Melbourne alone – suggests at the current level of growth, Australia is falling short of 40,000 homes a year.  That’s quite a statement and needs to be qualified considering demand for new homes is generally weak. In truth it’s not the amount of homes constructed that’s the issue, but the areas they’re located in. New housing is largely concentrated in outer suburbs – classic “mortgage belt” neighbourhoods. These areas are subject to affordability, attracting first-home buyers and low-income families. As such, demand fluctuates depending on economic factors such as the first home buyer’s grant, which is geared towards regional development and new home projects.  Demand for new homes is low not just because of the costs involved in building, but because of the negative aspects of living in suburbs with poor infrastructure and limited employment opportunities. 
However, inner-city demand for housing is significant and rising, as anyone working at the coalface will tell you. The housing stock in areas where people want and need to live is not in abundance, and therefore with a rising population, it’s logical to reason that demand alone will once again force the price of well-located residential real estate upwards.  However the speed of those price rises will be moderated by affordability and in a two-speed economy we’ll see a widening split between rich and poor. As we move forward consumer sentiment is going to play a part in how fast prices rise.  Therefore if you’re purchasing now with the intention of selling in one, two or even three years’ time, you’d be better off renting and investing your money elsewhere.  However, if you have a long-term plan, open your eyes and take advantage of where we are now, rather than trying to predict the short-term future.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. 
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catherinecashmore-6LXia3pPQj

Buyers are picky, but well-priced, well-located homes are in great demand

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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.
January 2012 update: All three properties mentioned below remain up for sale, according to online real estate listings.
 
The release of June quarter data showing renters require less income to rent in Tasmania should encourage investors to dip their toes in Australia’s cheapest property market.
According to the latest REIA/Deposit Power Housing Affordability Report, the proportion of family income devoted to meeting median rents fell from 29.5% to 26.8%, the biggest drop across all states and territories over the quarter. Despite the deterioration in house prices across the state, with Tasmanian house price falling to just $305,000, the median mortgage size increased from $205,000 to $216,000, meaning affordability rose  1.3% to 29.5%.
Among the more heavily traded suburbs over the June quarter is the coastal city of Devonport, in the centre of Tasmania's north coast.
The town has a population of 25,000 and a modern airport and is a destination for the Bass Strait ferry terminal linking it to Melbourne.
On the basis of 28 sales over the quarter, the median house price has fallen 3.2% over the year to $246,750.
A year ago a house in <a target="_blank" title="Devonport" href="/news">Devonport </a>cost about $255,000 on the back of 38 sales, and in December 2008 a similar number of properties changed hands at a median price of $221,000.
Realestateview.com.au lists 33 properties in Devonport for sale under the current median price.
Investors or families looking for a home with a big backyard and close to schools might be interested in a three-bedroom weatherboard house on Oldaker Street (pictured below) up for sale for offers over $199,000 by Halliwell Property Agents.
<img src="/images/stories/tassie1.jpg">
Situated on an 813-square-metre block, the 1948-built house is tenanted for six months bringing in $220 per week. This would translate into a yield of 5.75% at the current asking price.
It is close to the Devonport High Schools and to public transport. Features include a Saxon wood heater and large back yard.
The property last sold for $146,000 in September 2005 and has been on the market since January 2011.
According to Alan Halliwell, managing director of Halliwell Property Agents, Devonport remains an actively traded market.
“The number of sales in the Devonport over the last few years has remained steady. There is a solid real estate marketplace in Devonport with the town often places in top three areas in Tasmania for activity,” he says.
Halliwell says the enquiry rate for Devonport properties has not dropped off, with the main determining factor being price. Home owners must price competitively to sell, he says.
Weary metropolitan dwellers in Sydney or Melbourne looking for a tree change might consider the Huon Valley, 40 kilometres from Hobart, known for its arts, crafts and vineyards.
Based on 52 sales over the June quarter, the median house price stands at a tick over $273,000 with prices declining 0.5% over the quarter. A year ago, the median house price in the valley was $270,000 and three years ago, it was exactly the same.
Buyers looking for a rustic bushland retreat could snap up a two-bedroom timber log cabin (pictured below) situated on 27 hectares of mostly native bushland in <a target="_blank" title="Pelverata" href="/news">Pelverata </a>in the Huon Valley and asking about $230,000.
<img src="/images/stories/tassie2.jpg">
The sale is being handled by Nick Bond from Tasmanian Private Realty. It includes a wood-heated lounge, galley-style timber kitchen and “over 400 metres of picturesque frontage to a permanent creek with two swimming holes along the boundary and many small falls and rapids”.
The property last sold in July 2009 for $215,000 and has been listed for sale since February 2011.
Bond says the “quiet private rural area” is a great escape or weekender away and is only a 10-minute drive from Huonville and 40 minutes from Hobart.
A little further down the Huon Valley is the tiny bayside hamlet of Cygnet dating back to 1834. Cygnet has a population of well under 1,000 and is home to a number of folk and harvest festivals.
According to the REIT June quarter survey and based on 11 sales, house prices depreciated 6.3% to $300,000, but are up 11% over the last two years. Three years ago, a house in <a target="_blank" title="Cygnet" href="/news">Cygnet </a>cost just over $250,000.
Just over $215,000 will get you a three-bedroom house (pictured below) being marketed by Andrew McDonald from Your Home Realty.
<img src="/images/stories/tassie3.jpg">
“Close your eyes and picture a small, proud country town with stunning green rolling hills, down to a yacht club with miles of pristine waterways, heritage hotels, golf club, restaurant &amp; cafes, craft shops, fishing spots, or just drop into one of the many wineries, which is why this area is one of the best kept secrets of the Huon Valley,” is how McDonald describes Cygnet.
The house would suit an avid gardener, being sold with a glasshouse, three garden sheds and established fruit trees.
It last sold for $145,000 in April 2007 and for $42,500 in June 1998. It has been on the market since August 13.  It currently brings in weekly rent of $255, which translates to a yield 6.17% at the current asking price.
Main picture courtesy of Tourism Tasmania
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Affordability could draw investors to Tasmania

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Over the past 10 years capital city home values have increased at an average annual rate of 6.8%, however it has been a tale of two distinct five-year periods: the boom times during the first part of the decade and more subdued growth recently.
Over the 12 months to July 2011, capital city home values have fallen by –2.9% and values are down 3.4% over the first seven months of the year. House values have declined much more substantially than unit values over the 12-month period (-3.7% vs. -0.5%) as more buyers seek out the relative affordability of apartments compared with houses.
<img src="https://www.smartcompany.com.au/images/stories/Features/boom-bust-1.gif" mce_src="images/stories/Features/boom-bust-1.gif" alt="boom-bust-1" height="244" width="500" style="border-style: initial; border-color: initial;">
Over the 10 years to July 2011, capital city home values have increased at an average annual rate of 6.8% with annual value growth ranging from as little as 4.4% per annum in Sydney to as much as 13.6% per annum in Darwin. The growth in house values has been well in excess of inflation, which has increased at 2.9% annually over the 10 years to June 2011.
Undoubtedly the growth in values has been strong and occurred during a time when access to credit was much easier to obtain and interest rates were inherently lower than what was recorded during the previous decade.

As a result many home owners have reinvested their equity into the property market, buying additional investment properties as values have continued to rise.

<img src="https://www.smartcompany.com.au/images/stories/Features/boom-bust-2.gif" mce_src="images/stories/Features/boom-bust-2.gif" alt="boom-bust-2" height="244" width="500" style="border-style: initial; border-color: initial;">
Looking at growth over the entire decade only tells part of the story; in fact the first five years of the decade recorded very different outcomes for the property market compared with the second half of the decade.
Over the first five years, home values across the combined capital cities increased at an average annual rate of 8.6%. Average annual capital gains across each city varied during that period from 4.7% growth in Sydney to 22.1% growth in Hobart.
In each city except for Melbourne, home value growth over the first half of the decade was in excess of the decade average.
<img src="https://www.smartcompany.com.au/images/stories/Features/boom-bust-3.gif" mce_src="images/stories/Features/boom-bust-3.gif" alt="boom-bust-3" height="249" width="500" style="border-style: initial; border-color: initial;">
During the second half of the decade, average annual growth in property values has generally been much more subdued, with Melbourne the one exception. 
Across the combined capital cities, home values have increased at an average of 5.1% annually between July 2006 and July 2011 compared to 8.6% annually over the preceding five years. While the top performing capital city during the previous five years (Hobart) recorded average annual value growth of 22.1%, the top performing city during the most recent five years (Darwin) has recorded value growth of 10.1%. 
To put this into perspective, during the first five years of the last decade only Sydney and Melbourne recorded average annual value growth below the best performed city of the most recent five years. Alternatively, Sydney was the weakest performer of the first five years of the decade, however four capital cities have recorded inferior growth over the past five years to that which Sydney recorded between July 2011 and July 2006. 
Some may find the Perth and Hobart results to be quite startling. After recording average annual growth of 21.2% and 22.1% respectively during the first five years of the decade, over the most recent five years values in these cities have grown at average annual rates of 1.1% and 3.4% respectively. Average annual property value growth in Brisbane, Perth and Hobart has been less than half of what it was during the preceding five years.
<img src="https://www.smartcompany.com.au/images/stories/Features/boom-bust-4.gif" mce_src="images/stories/Features/boom-bust-4.gif" alt="boom-bust-4" height="286" width="500" style="border-style: initial; border-color: initial;">
Over the past 10 years, average annual value growth for houses (7.1%) has been superior to that of units (6.1%). Focusing on the most recent five years shows that units have actually enjoyed a superior level of value growth. Across each five year period the average annual value growth for units has been quite consistent whereas house value grew by 9.5% pa during the first five years and almost half that (4.8% pa) during the most recent five years.
The recent superior performance of units as opposed to houses continues today and is reflective of changing lifestyle patterns. In particular, first home buyers and young professionals are likely to be much more attracted to an inner-city unit rather than a house 20-plus kilometres from the city centre, especially if they work centrally and they also work long hours.
Overall the data highlights the impact of the property 2001-2004 "property boom" which has well and truly lifted the annual growth rates across the first half of the decade. The two recent growth phases (ie 2007 calendar year and 2009/2010) were much more sublime compared with the meteoric rate of growth early in the new century.
Looking to the future, with housing credit growth constrained and affordability a barrier to market entry, property values are likely to grow at a slower pace and the likelihood of large spikes in value growth over a 12-24 month period as witnessed at times during the past decade is less likely. Basically, property value growth fundamentals are largely returning to normal conditions after being abnormal for much of the last decade.
Tim Lawless is research director at <a href="https://www.rpdata.net.au/" mce_href="https://www.rpdata.net.au/" style="color: #333333; font-weight: bold; font-size: 13.5px; text-decoration: none;">RP Data</a>.
The article originally appeared on <a target="_blank" title="SmartCompany" href="https://www.smartcompany.com.au/property/20110905-the-boom-and-the-bust-of-property-prices">SmartCompany.</a>
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