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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White Beach Road, Tasmania, has held the top spot on SQM's discount list for the past three weeks.
1
<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: 455
 
<h2> </h2>
<h2 style="font-size: 18px; line-height: 21px;">2</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: 773
 
<h2 style="font-size: 18px; line-height: 21px;">3</h2>
<a target="_blank" title="1/21 Ocean Drive" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670">1/21 Ocean Drive, Coogee, WA, 6166</a>
On the market since: May 23, 2010
Initial asking price: $2.7 million
Current asking price: $1.6 million
Reduction: 41%
Days on market: 455
 
<h2 style="font-size: 18px; line-height: 21px;">4</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: 953
 
5
<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: 386
 
6
<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: 1,173
 
7
<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: 454
 
<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%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: 644
 
 
<h2 style="font-size: 18px; line-height: 21px;">9</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: 294
 
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106820916" title="38 Kavanagh Street" target="_blank">195/38 Kavanagh Street, Southbank, VIC, 3006</a>
On the market since: September 11, 2010
Initial asking price: $1.565 million
Current asking price: $1.1 million
Reduction: 30%
Days on market: 343
 
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.
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louischristopher-TWpYcZDLBK

SQM's top 10 discount list has little change

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22/226 Melrose Drive, Tullamarine, VIC, 3043
<img src="/images/stories/melrose.jpg">
This one-bedroom, one-bathroom unit in the outer-Melbourne suburb of Tullamarine could suit investors, as <a target="_blank" title="Ray White Tullamarine" href="https://www.raywhite.com/vic/tullamarine/652609/">Ray White Tullamarine</a> agent Danny Coffey has done a rental assessment of the property and estimates that it will rent for between $25o and $270 per week. He has price hopes of $230,000 plus for the unit, which would be a gross rental yield of 6.1% if it sells for $230,000, well above the indicative gross rental yield for Tullamarine of 4.4% for units, 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 3 at 11am.
For more information about prices and gross rental yields in Tullamarine, see the <a target="_blank" title="Tullamarine" href="/news">RP Data suburb page</a>.
For more investment prospects, see pages 2 and 3.
 
<hr class="system-pagebreak">
 
2/49 Delmar Parade, Dee Why, NSW, 2099
<img src="/images/stories/delmar.jpg">
This two-bedroom, two-bathroom unit has been withdrawn from auction but is still for sale. It is currently tenanted at $595 per week, and <a href="https://www.australianpropertychoice.com.au/properties.php?id=5053202" title="Australian Property Choice" target="_blank">Australian Property Choice</a> agent Abdul Moussalli is marketing it with price hopes of $620,000 plus. If it sells for $620,000 that would be a gross rental yield of 5%, right at the indicative gross rental yield for Dee Why, according to RP Data. The strata fee for this apartment is $1,031 per quarter, the water is approximately $140 per quarter nd council fees are $225 per quarter.
For more about prices and indicative yields in Dee Why, see the RP Data suburb page.
 
<hr class="system-pagebreak">
 
4/7 Keys Street, Dandenong, VIC, 3175
<img src="/images/stories/keysstreet.jpg"> 
This recently renovated two-bedroom property has undercover parking and a new kitchen. <a href="https://www.stockdaleleggo.com.au/dandenong/details.asp?internetid=240287&amp;OFFICE_ID=56&amp;order=&amp;suburb=3115&amp;surround=&amp;price1=0&amp;price2=400000&amp;category=residential&amp;bedrooms=&amp;bathrooms=&amp;garages=0&amp;propertyType=&amp;OFFICE_GROUP_ID=&amp;offset=&amp;st=" title="Stockdale &amp; Leggo" target="_blank">Stockdale &amp; Leggo</a> Dandenong agent Neil Butler is marketing the property with price hopes of $230,000 plus and has done a rental assessment that concluded it would pull in $250 per week from a tenant. If it sells for $230,000 this would be a gross rental yield of 5.7%, which would be significantly above the indicative gross rental yield of 4.7% for units, according to RP Data. 
For more information about gross indicative yield and prices in Dandenong, see the RP Data suburb page.
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cknowlton-QnEa6ntUYP

Friday Form Guide: Rental yields of up to 6.1% in Tullamarine

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Steadily improving but far from spectacular - that’s the verdict from Moody’s on what investors should expect from their listed property trust investments over the next 12 months. 
The rating agency has issued a “stable” rating for A-REITs. 
Its analysts expect portfolio valuations to gradually improve in 2011 and into 2012, with “capitalisation rates tightening incrementally and net effective rents continuing to rise but at a modestly lower trajectory than in the past year”. 
For the year to date, the S&amp;P/ASX 200 A-REIT is down 4.73%. 
Moody’s September 2011 Australian Corporate Sector Outlook highlights the more conservative nature of A-REITs, with gearing levels well below 2008 borrowing ratios when the GFC crippled the sector. 
“Liquidity has declined from traditionally high levels but should remain manageable at current ratings. Many issuers in the sector have taken steps to improve debt tenors and diversification,” the report says. 
It also highlights the strength of A-REIT balance sheets, but warns that while there may be limited acquisition opportunities, ratings could come under pressure if trusts adopt a more aggressive capital management approach and raise gearings levels above “historically conservative levels”.
<img src="/images/stories/moodys.jpg">
Source: Moody's
Retail and office A-REITS will face headwinds in trying to generate above-inflation returns due to poor retail spending and “a new, cautious outlook within the finance sector is affecting demand for office space, particularly in Sydney”. 
“As a consequence, vacancy levels in Sydney’s central business district may not decline as quickly as previously expected although other Australian states’ capital cities continue to enjoy healthy demand,” the report says. 
Gearing levels will remain relatively conservative, and valuations should continue to firm as net operating income continues to rise. These factors support the ratings and outlooks that we have on issuers in the sector. 
Moody’s is forecasting that solid employment numbers (less than 5%) and GDP growth of between 3% and 4% will support demand for industrial and retail space, while a solid outlook for white-collar employment will underpin the office market. 
It also forecasts more share buybacks due to most A-REITS trading at about a 25% discount to net tangible assets which could impact on leverage and risk levels.
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lschlesinger-FZcF9M3vE6

A-REITs slow but steady investments: Moody's

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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.
 
Since 2003 <a href="https://mrcltd.org.au/research/home-ownership/volume_1.pdf">I have argued</a> that the future of Australia’s cities more likely lies in “Manhattanisation” rather than sprawl, while noting that the two dynamics are not mutually exclusive. We will increasingly build up rather than build out. 
The great Australian dream of a quarter-acre block will gradually morph into a more convenient “attached” form of housing – be that a duplex, semi, terrace, townhouse or apartment – that, critically, is situated in relatively close proximity to important amenities and places of work.
As I explained in <a target="_blank" title="Christopher Joye" href="https://www.propertyobserver.com.au/residential/three-population-bubbles-will-cause-demand-not-supply-to-skyrocket-christopher-joye/2011082351255">last week’s column</a>, <place><country-region>Australia</country-region></place> 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). 
Sydney and Melbourne are individually expected to have 5 million to 6 million residents (see chart). This begs the question as to where all these people are going to live. Will we build new cities, allow existing metropolises to expand ever-outwards, permit Manhattan-like densities, or embrace all of the above?
<a href="/images/stories/joyesept11.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyesept11thumb.gif"></a>
The history of our urban development offers a guide. Over the last century, <country-region><place>Australia</place></country-region>’s urbanisation rate has increased inexorably. In 1921 only 42% of us lived in metropolitan areas. By 2011 that share had risen to 63.9%, and is projected by the ABS to increase to nearly 65% by 2026. 
Paradoxically, <country-region><place>Australia</place></country-region> is one of the most urbanised countries in the world, notwithstanding our large and mostly untapped land mass. Our federated structure combined with the socio-economic power of “agglomeration” has led to a single city in each state attracting most of the immediate region’s residents. Indeed, Australia has more of its total metropolitan population living in its two largest cities, Sydney and Melbourne, than any other country save Switzerland. 
Yet if you fly into <country-region><place>Australia</place></country-region>’s major metropolises you will find a common characteristic: with the exception of the CBD pockets, they tend to resemble flat towns. With its much higher inner-city densities, hilly <city><place>Sydney</place></city>, by way of contrast, offers a vision of the urban future that awaits contemporary conurbations. 
Continuing to build out poses a number of problems. Every marginal addition of new land on a city’s periphery necessitates accompanying investments in roads, electricity, water, transport, and sewerage. Up to a point, densification can leverage off existing infrastructure. 
The further we spread our residents, and the workers living in these households, the more we typically have to transport them back to their places of work (and thus the higher their carbon footprint). Densification holds out hope of truncating commute times. 
And in order to build out, we are, by definition, taking fresh greenfields land away from the natural environment in order to use it for the urban one. Building up does not exhaust any new land. 
Los Angeles County is a great example of a metropolitan area that has sprawled inefficiently. The population of 9.8 million is spread across great distances with an incredibly low density of just 798 persons per square kilometer. Unfortunately for LA’s residents, the public transport system is near nonexistent. If you don’t have a car in LA, you find it hard to function. This has historically resulted in serious traffic and pollution problems, in addition to undermining the city’s sense of community. In fact, LA is more like a basket of smaller cities, which have little in common. 
<city><place>New York City</place></city> sits at the opposite end of the density spectrum. There are 8.2 million people cohabiting in attached forms of housing with a density of 10,194 persons per square kilometer (an order of magnitude more than LA), which makes it the densest municipality in the US. 
<city><place>Manhattan</place></city>'s density is two and a half times higher again. This is, in turn, more than 10 times greater than Sydney and Melbourne’s densities of 2,058 and 1,566 persons per square kilometer, respectively. 
To best service its conveniently contiguous residents, <state><place>New York</place></state> has developed a world-class public transport and taxi system that most of its population harnesses. While it is a qualitative observation, New Yorkers also appear to possess a stronger and more homogenous sense of community. You don’t live in <city>Hollywood</city> or <city><place>Santa Monica</place></city>; you simply live in the Big Apple. 
One insight from these two case studies is that Australia’s cities clearly have scope to boost the supply of accommodation in existing urban areas (see chart). While densification has the above-mentioned advantages, it also comes with obvious costs. In particular, existing residents, who are fond of their land-rich blocks, are often resistant to change. In their defence, this may be rational: stymieing supply can inflate prices. This dynamic is exacerbated by the fact that incumbent owners typically control local councils, which regulate the zoning and building approval processes.
<a href="/images/stories/joyesept12.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyesept12thumb.gif"></a>
In <a href="https://mrcltd.org.au/research/home-ownership/volume_1.pdf">my 2003 report to the Prime Minster</a> I presented several policy solutions to the conflict of interest between existing owners, who want to choke supply, and the next generation of buyers, who would like to see it liberated. One of these ideas involved giving local governments new housing supply quotas tied to public funding. This remains an option worthy of further discussion. 
In contrast to a country like Japan, whose population will contract by one-quarter over the next four decades, Australia’s is expected to expand by 60% based on the Treasury’s projections. 
With our rich endowments of natural resources that are conditions precedent for <country-region>China</country-region> and <country-region><place>India</place></country-region> to industrialise, we are lucky to be leveraged to the developing (as opposed to developed) world. This prosperous economic outlook combined with an ageing population implies that our demand for skilled labour will grow over time. 
One way or another, we are going to have to find ways to accommodate 5.7 million new people in the next 15 years, about half of whom will be hard-working immigrants under the age of 40. 
With this challenge in mind, it is interesting to note that perceptions of the “preferred” form of tenure choice differ markedly across cities and societies. Community attitudes to housing types appear to vary according to the city’s geographic, economic and urban needs. Households in <city>Los Angeles</city>, <city>Beijing</city>, <city>London</city>, <state>New York</state>, <country-region>Singapore</country-region> and <city><place>Sydney</place></city> have quite divergent expectations with respect to the category of accommodation they hope to obtain. 
I think that Australian’s understanding of tenure preference will continue to evolve. And here the data tells us an important story: whether you like it not, our cities are stealthily densifying before our eyes. 
My final two charts show the share of <city>Sydney</city> and <city><place>Melbourne</place></city> building approvals accounted for by apartments, semis, and detached houses over the last 20 or so years.
<a href="/images/stories/joyesept13.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyesept13thumb.gif"></a>
 
<a href="/images/stories/joyesept14.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyesept14thumb.gif"></a>
In 1992 only 24.1% of all building approvals in <city><place>Sydney</place></city> were for apartments. By 2011 that number had risen to nearly half (or 48.4%). An even more striking story of densification is in evident in <city><place>Melbourne</place></city>. Twenty years ago just 4.6% of all new approvals were apartments. Today that share has rocketed to 34.8%. 
Over the next 50 years our cities will densify much more than most can currently imagine. As a community we should prepare for that future today by investing in the supply-side infrastructure required to support it.
Christopher Joye is a leading financial economist and works with <a target="_blank" title="Rismark International" href="https://www.rismark.com.au/">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Start spreading the news - Australian cities must become more like Manhattan

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Global house prices rose 0.1% in the three months to June 2011, contributing to annual growth of 1.7%, according to Knight Frank’s latest global house price index, which concluded the global housing market was at its weakest since 2009.
Headed by the world’s hottest property market, Hong Kong, where prices grew 26.5% in the past year, Asia continues to outperform all other regions. With prices up 8% in the year, Asia has been the top-performing continent for seven consecutive quarters.
House prices declined in 23 of the 50 countries monitored by the index in the last three months, according to Liam Bailey, the head of Knight Frank Residential Research.
With a 1.9% decline over the year and 0.1% decline in the June quarter, Australia has slipped to 32nd position. <a target="_blank" title="Australia ranked 28th" href="https://www.propertyobserver.com.au/news/australia-ranks-28th-on-house-price-index-list/2011062050537">During the March 2011 quarter Australia was ranked 28th.</a> Just a year ago in the March quarter 2010, Australia peaked as the fourth-fastest-growing property market in the world after a 20% price annual jump.
In the latest index both North America and Europe remain the weakest performing world regions, where prices declined by 0.9% and 0.1% respectively over the year.
“This weak performance shows the extent to which many of the world’s economies are struggling in the wake of the 2008-09 global crisis,” says Bailey.
Confidence remained low and households’ disposable income is waning, Bailey notes.
The slight overall fall in prices was partly attributed to the absence of double-digit annual price growth in China, Singapore and India.
“There are clear signs that Asian policy measures, aimed at cooling asset price growth are having some success,” Bailey says.
“Annual price growth in Singapore stood at 6.7% in quarter two in 2011, down from 37% a year earlier.
“Similar patterns are emerging in India and China, which both recorded quarterly price falls in the three months to June, of 1.7% and 0.1% respectively.”
Hong Kong also slowed during the second quarter of 2011, with its quarterly price growth of 3.5% down from 10.1% in the previous quarter. “Looking forward it is difficult to be positive about price prospects in the developed world’s mainstream housing markets.
“Ongoing low interest rates and other market support measures are likely to spur increased sales activity rather than price growth,” Bailey says.
The Knight Frank Global House Price Index was established in 2006.
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Australia slips to 32nd place while Asia remains strong in house price index: Knight Frank

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Demand for fixed-rate mortgages increased only marginally in August despite lenders making big cuts to these products. 
Fixed-rate mortgages accounted for 14.1% of all successful loan applications submitted by Mortgage Choice brokers on behalf of borrowers over the month – up from 13.3% in July. 
Earlier this month, Australia’s biggest home lender Commonwealth Bank cut its fixed-rate mortgages by up to 60 basis points following earlier cuts by Westpac, AMP, ANZ and ING Direct. 
According to Mortgage Choice spokesperson Kristy Sheppard, the trend “speaks volumes about new borrowers’ and refinancers’ mindset around interest rate rises and the value they place – or rather, don’t place – on locking in their rate at the moment”. 
“I expected the take-up of fixed rate home loans to grow noticeably in August due to the well- publicised reductions many lenders have been applying to their fixed term pricing. 
“Despite our lender panel’s average three-year fixed rate falling half a percent in the past four weeks alone, fewer than one in seven new mortgage holders fixed part or all of their rate last month. 
“Borrowers’ reticence to fix may also be influenced by memories of the break costs many people faced when considering switching out of their fixed terms during Spring 2008 to Autumn 2009 when the cash rate fell from 7.25% to 3.00% and home loan interest rates followed.” 
Ongoing discount home loans - where the interest rate is discounted over the entire loan term usually in return for an annual fee – remain by far the most popular mortgage product, accounted for 41.5% of all approved loans, up from 38.6% in July.
There remains little demand for line of credit mortgages – most popular with investors, accounting for less than one in 20 mortgages approved and close to the 12-month average of 4.7%. Line-of-credit loans allow borrowers to use their mortgage like a credit card, allowing them withdraw funds up to a set limit at any time.
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Fixed-rate mortgage discounts fail to sway many borrowers

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Credit union Mecu is hoping to provide more competition to the major banks after being granted permission from APRA and the RBA to call itself a bank. 
From today it will start trading as Bankmecu. 
It hopes to attract business away from the major banks by emphasizing that it is owned by its customers and is not beholden to shareholders. 
It quotes a November 2010 poll conducted by Essential Media Communications showed that 37% of customers of the Big Four banks had considered leaving and finding a new financial institution. 
“Unlike other banks who distribute profits among a small group of shareholders, Bankmecu’s profits stay with our customers who are also the owners of our business,” says incoming Bankmecu CEO Damien Walsh. 
“Australians deserve a better deal and are looking for more competition in banking, which is why Bankmecu welcomes the government’s introduction of the ‘tick and flick’ program that will make it easier for people to switch banks. 
“Being a bank also allows us to reach out to a new group of younger customers for whom the idea of a customer-owned bank appeals. 
The bank has 25 service centres, most of which are in Victoria, and has 135,000 customers. 
It has assets in excess of $2.6 billion and $287 million in capital. 
Following its launch in Melbourne, Bankmecu has also announced that $137,000 (4% of its annual profits) will be allocated to projects that create positive social, environmental and economic benefits.
Mecu dates back to the 2003 merger between Members Australia Credit Union and Education Credit Union, and the name is an acronym for Members and Education Credit Union Limited. Over the years it has acquired several other credit unions, including the Dependable Credit Union and the APESMA Professionals First Credit Union.
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Customer-owned credit union takes on banking

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The Commonwealth Bank is considering whether to sell the 17% stake it acquired in Mortgage Choice following its acquisition of financial planner Count Financial.
Count is Mortgage Choice’s biggest shareholder.
The bank already owns a third of John Symond’s Aussie Home Loans business, which competes directly with Mortgage Choice.
In addition, Count has its own mortgage broking division known as Finconnect, which sells loans through loan writers and professional referral partners such as doctors, lawyers and accountants.
The bank says will consider selling its stake in Mortgage Choice if it its stake in the company is identified as a problem by competition watchdog the ACCC.
However, Commonwealth Bank might decide to offload its stake in Mortgage Choice regardless of the ACCC’s position because there would be little strategic benefit to having a stake in the mortgage broker, the Australian Financial Review reported.
The Commonwealth Bank is the biggest home lender in Australia and is one of 25 home loan lenders that Mortgage Choice brokers can offer to its clients.
According to Mortgage Choice’s annual results for the 2011 financial year, the major banks accounted for 61% of all loans written by its brokers.
Analysts do not expect the ACCC to block the deal.
CBA will pay $373 million to acquire the financial planner.
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CBA counting down to ACCC decision on its Mortgage Choice stake

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I’m often asked why I continue to focus my developing efforts in the Hunter region of New South Wales.  Good question.  It’s been nine years since we started working in the area, and I continue to be amazed at the research we uncover.  When you are a developer you need to understand the dynamics of the areas you will invest in.  As I’m sourcing sites and project managing developments for my clients, I need to be sure that the projects will be in the right locations. So I’ll explain a few of the reasons why the Hunter continues to be my shining star.
Firstly, the Hunter region is currently feeling the pressure from the much-publicised “lack of housing” situation in Australia.  My agents are telling me the same story over and over.   “Jo,” they say, ”We can’t get enough quality rental stock, hurry up and finish that development, would you!”
One of the reasons we are seeing rental markets in the Lower Hunter continue to tighten is the billions of dollars’ worth of infrastructure projects currently underway which is creating hundreds of jobs for both local and new residents.  One three-bedroom house that Property Bloom renovated as part of the overall development a few months ago in Stanford Merthyr, a suburb in Cessnock, was purchased for $210,000 and was rented quickly for $325 per week to contractors working on the Hunter Expressway.  The Newcastle Herald reports that there are 133 major projects worth $2.61 billion under way in the past year, with the majority taking place in the Cessnock local government area.
In Muswellbrook, Property Bloom has gained approval for dual-occupancy projects, and we are about to start building.  Each time I update my feasibility the rental estimates increase. These clients will end up with close to an 8% gross yield and create a large amount in equity by developing in this town.  Here, it’s the mining industry that is contributing to the desperate cry for housing, with employees moving to the town from all over Australia and even from New Zealand.  Several mines are undergoing expansion in Muswellbrook.  Contractors come to the area to work on the development works and then one the expansions are complete they will be replaced by full-time workers as the mines increase their capacity.
John Boyle of John Boyle Real Estate in Muswellbrook reports: “We have limited land releases available for the amount of growth in the area. This growth is mainly coming from construction employees who are working on infrastructure in the area and mining support and services.”
“We have only six homes for rent at the moment. Before the homes are completed, they have been rented. We need the developers to get a move on and finish their developments,” Boyle says. 
This lack of housing is ticking all the boxes and bringing investors to the area, as they can see the potential growth destined for this area. BIS Shrapnel expects median house prices to rise a further 18% by 2014.
Leading Australian construction analyst Cordell Information reports there are 310 major civil projects in the pipeline for the region, with most of those planned for the Newcastle LGA. The boom is being led by Upper Hunter mine expansion and earthworks, major road and rail projects and BHP site remediation work.
With Maitland the fastest-growing inland town of NSW over the past few years, we are always looking for potential sites in this area.  We recently found a 2,000-square-metre piece of land where we’ll be building six villas for our client.  This area is earmarked by the council for ongoing growth, and Maitland has all the facilities you need in a town to support the fast growing population increase.
Todd Fisher from LJ Hooker Maitland says the lack of housing for current and potential employees is distressing.   “I feel sorry for tenants, as there is a 1% vacancy rate. It is not unusual for us to have 50+ people at an open house. It is unbelievable,” Fisher says.
“The mining industry is bringing in a lot of new blood especially from Western Australia, Queensland and New Zealand.”
To top it all off, there is the most beautiful tourist attraction in the form of the vineyards and rolling green countryside that makes up the Hunter Valley. In addition to the wine industry, we see tourism growing substantially from the ongoing famous concerts in the vineyards, where international artists such as Elton John, Fleetwood Mac, Meatloaf, Dolly Parton, Rod Stewart to name a few  come to perform. In addition there are spa, health and golf resorts and large five-star hotel chains that have launched into what was not long ago a bed &amp; breakfast market.
For me, the main sparkle for this region is affordability.   It’s one of the important factors that will drive the region in the short term, with a median price well under all our capital cities, the Hunter will continue to shine on.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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Infrastructure and mining make Hunter region a good place for investment

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Building approval figures are expected to rebound in Queensland over the next six months following the introduction of the government's building grant, according to Westpac senior economist Matthew Hassan. 
A $10,000 grant has applied from August 1, 2011 and will run until January 31, 2012 for those buying or building a new home in the state. 
The impact of state government interventions on approvals has already been documented in previous ABS figures. 
Following Queensland Treasurer Andrew Fraser unveiling the $10,000 new home building boost grant on June 14, <a target="_blank" title="Queensland building approvals fall" href="https://www.propertyobserver.com.au/:%20http:/www.propertyobserver.com.au/new-south-wales/state-government-initiatives-cost-the-housing-market-dearly/2011080351012">Queensland promptly led a national fall in dwelling approvals in June, with an 18.6% fall compared with May</a>.
ABS figures for July revealed a 14.5% decline in private sector house approvals, a result Hassan called “alarming and puzzling”. 
“Given the extremely low absolute levels this resulted in and the backdrop of an expected recovery from severe weather events and associated rebuilding activity, the weakness was hard to explain,” Hassan says. 
“It has since been brought to our attention that state government policy initiatives may be partly behind the July drop. 
“Clearly those contemplating building in July would have had a significant incentive to delay their decision until August. 
“Accordingly, a significant rebound is likely to come through in August.”
Hassan says such incentives tend to impact more heavily on private sector houses than on private sector unit approvals.
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